27.1.2023

Official Journal of the European Union

C 32/1

EUROPEAN PARLIAMENT

2022-2023 SESSION

Sittings of 22 to 23 June 2022

TEXTS ADOPTED

27.1.2023

Official Journal of the European Union

C 32/2

P9_TA(2022)0249

Candidate status of Ukraine, the Republic of Moldova and Georgia

European Parliament resolution of 23 June 2022 on the candidate status of Ukraine, the Republic of Moldova and Georgia (2022/2716(RSP))

(2023/C 32/01)

The European Parliament,

—	having regard to its previous resolutions on Ukraine, the Republic of Moldova and Georgia,

—	having regard to Article 49 of the Treaty on European Union (TEU),

—	having regard to the applications for EU membership made by Ukraine, the Republic of Moldova and Georgia,

—	having regard to the European Council conclusions of 30 May 2022 on Ukraine,

—	having regard to the Versailles Declaration of 10 and 11 March 2022,

—	having regard to the Commission opinions of 17 June 2022 on the applications for EU membership submitted by Ukraine (COM(2022)0407), the Republic of Moldova (COM(2022)0406) and Georgia (COM(2022)0405),

—	having regard to the joint statement of the leaders of its Political Groups addressed to the Heads of State and Government in view of the European Council meeting of 23 and 24 June 2022,

—	having regard to Rule 132(2) and (4) of its Rules of Procedure,

A.	whereas the Russian Federation has been carrying out an unprovoked, unjustified and illegal war of aggression against Ukraine since 24 February 2022; whereas Ukraine applied for accession to the European Union on 28 February 2022 and the Republic of Moldova and Georgia did so on 3 March 2022;

whereas the applications come against the background of the Russian military aggression against Ukraine, which has been carried out on a scale unprecedented in modern European history and has seen the perpetration of war crimes that may amount to genocide against the Ukrainian population, as well as the continued occupation of parts of the territories of Georgia and Moldova; whereas Ukraine is defending the European security order and the principles on which it was built, such as the Helsinki Final Act and the Charter of Paris for a New Europe;

C.	whereas according to Article 49 TEU, ‘any European State which respects the values referred to in Article 2 and is committed to promoting them may apply to become a member of the Union’;

D.	whereas there is no ‘fast-track’ for EU membership and whereas accession remains a merit-based and structured process which requires the fulfilment of the EU membership criteria and is dependent on the effective implementation of reforms and the transposition of the EU acquis;

E.	whereas the Council exceptionally swiftly requested that the Commission submit its opinions on the EU membership applications of Ukraine, the Republic of Moldova and Georgia;

F.	whereas the Versailles Declaration of 10 and 11 March 2022 stated the European Council’s acknowledgement of the European aspirations and the European choice of Ukraine;

whereas the people of Ukraine, the Republic of Moldova and Georgia have for years consistently demonstrated unwavering support for the European course of their countries, embracing European principles and values; whereas similar aspirations to live in a free, sovereign and democratic country are expressed by the majority of the people of Belarus who oppose the Russian-backed regime of Lukashenka;

H.	whereas past developments have shown that non-enlargement has a massive strategic cost and can undermine security and stability on our continent;

whereas the EU’s relations with Ukraine, the Republic of Moldova and Georgia are based on ambitious association agreements and deep and comprehensive free trade areas (AA/DCFTAs), creating a conducive environment for political association, legislative approximation and economic integration, which are crucial elements of a future accession process; whereas the full implementation of the AA/DCFTAs still needs to be achieved;

J.	whereas Ukraine, the Republic of Moldova and Georgia all submitted both EU accession questionnaires in record time, demonstrating not only their great commitment to the EU’s values, but also their great ability and will to achieve these objectives;

K.	whereas on 17 June 2022, the Commission published opinions on the three applications, recommending that the Council confirm Ukraine, the Republic of Moldova and Georgia’s perspectives of becoming Member States of the EU;

whereas in its opinions, the Commission recommended granting Ukraine and the Republic of Moldova candidate status on the understanding that certain reform measures are taken, such as in the areas of the rule of law and the fight against corruption; whereas in the case of Georgia, the Commission recommended granting candidate status once the indicated priorities have been addressed;

M.	whereas the granting of candidate status would send a strong message of hope and solidarity to the citizens of the three countries and show that the European Union is determined to live up to the present challenges and its future vision;

Welcomes the membership applications of Ukraine, the Republic of Moldova and Georgia as an expression of the European aspirations of the people and their wish to live peacefully and in safety in free, democratic and prosperous countries that maintain good neighbourly relations with all European countries and engage in ever closer cooperation with EU Member States;

Welcomes the Commission’s formal recommendation to grant EU candidate status to Ukraine and the Republic of Moldova and a European perspective for Georgia;

Calls on the Heads of State and Government who will meet as the European Council on 23 and 24 June 2022 to grant EU candidate status to Ukraine and the Republic of Moldova without delay, and to grant the same status to Georgia once its government has delivered on the indicated priorities in the Commission’s opinion; underlines that the Heads of State and Government must live up to their historical responsibility and give clear political signals;

Underscores that the granting of candidate status by the European Union will equate to showing leadership, resolve and vision in today’s context of the brutal Russian war of aggression against Ukraine and an attempted redefinition of the geopolitical environment and sends a clear political message that the countries in question have irreversibly chosen a European path, which has been accepted by their European partners, and should not be the subject of interference from any third parties; reiterates that the EU must continue to be a reliable partner and a credible geopolitical actor that lives up to its own principles and values by showing solidarity with those who stand up for the same ideals;

Calls on the Member States to muster the political will to re-energise the enlargement process and deliver on their promises through concrete positive steps in the accession processes of countries that seek to join the Union and deserve to be part of the European family; urges, therefore, the EU Heads of State and Government meeting on 23 and 24 June 2022 to green-light the Western Balkans enlargement process, which is currently blocked;

Recalls that in order to retain the credibility of the EU enlargement process and unlock its transformative power, the long-standing commitment towards the Western Balkan countries must be maintained and their parallel track needs to continue unaffected with more dynamism on the basis of merit, political alignment, solidarity in international matters and agreed commitments;

Underlines that accession to the EU must take place in accordance with Article 49 TEU, based on respect for the relevant procedures and conditional upon the fulfilment of the established criteria, in particular the so-called Copenhagen criteria for EU membership, and remains a merit-based process that requires adoption and implementation of relevant reforms, notably in the areas of democracy, the rule of law, human rights, a market economy and implementation of the EU acquis;

Invites the authorities of Ukraine, the Republic of Moldova and Georgia to unambiguously demonstrate their political determination to implement the European ambitions of their people by significantly enhancing progress with substantial reforms in order to effectively fulfil the criteria for EU membership as soon as possible;

Stresses the need to take advantage of the experiences of Ukraine, the Republic of Moldova and Georgia with the implementation of their respective AA/DCFTAs as a basis for the upcoming accession process, thus allowing the three countries to gradually integrate within the EU single market and enhance sectoral cooperation; calls on the Commission and the Member States to prepare internal structures and provide additional resources, as well as increased technical assistance and political support;

10.

Acknowledges that Ukrainians, Moldovans and Georgians have continuously supported a pro-European orientation of their countries and deserve to live in free, democratic and prosperous countries that are proud and committed members of the European family; concludes that the forthcoming European Council can take an important first step towards fulfilling the legitimate aspirations of the people of the three countries;

11.

Reiterates the EU’s commitment to the sovereignty, territorial integrity and political independence of Ukraine, the Republic of Moldova and Georgia within their internationally recognised borders and supports their efforts to fully enforce those principles; underlines the importance of the unity and solidarity of the Member States in this regard;

12.

Calls on the Commission, the Member States and the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy to update the Eastern Partnership policy in order to enable it to remain a transformative and meaningful instrument in the current context of the Russian war of aggression against Ukraine, which also threatens the security of Ukraine’s neighbouring countries and affects stability in the region as a whole; reiterates the need for regional cooperation between the Eastern Partnership countries;

13.

Calls on the Commission and the Council to establish enhanced and structured political dialogue with candidate and potential candidate countries in order to advance further economic integration and legislative harmonisation as well as gradual inclusion in the work and proceedings of the EU institutions, where appropriate;

14.

Reiterates its call on the EU institutions to speed up the necessary steps to make EU decision-making more efficient;

15.

Reaffirms its commitment to enlargement, to which there is no alternative and which is more than ever a geostrategic investment in a stable, strong and united EU; strongly believes that the prospect of full EU membership for the countries striving to become Member States of the EU is in the Union’s own political, economic and security interests;

16.

Instructs its President to forward this resolution to the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the Council, the Commission, the governments and parliaments of the Member States, and the presidents, governments and parliaments of Ukraine, the Republic of Moldova, Georgia and the Western Balkan countries.

27.1.2023

Official Journal of the European Union

C 32/6

P9_TA(2022)0257

Genetically modified maize DP4114 × MON 810 × MIR604 × NK603 and genetically modified maize combining two or three of the single events DP4114, MON 810, MIR604 and NK603

European Parliament resolution of 23 June 2022 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize DP4114 × MON 810 × MIR604 × NK603 and genetically modified maize combining two or three of the single events DP4114, MON 810, MIR604 and NK603, pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (D081155/01 — 2022/2694(RSP))

(2023/C 32/02)

The European Parliament,

—

having regard to the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize DP4114 × MON 810 × MIR604 × NK603 and genetically modified maize combining two or three of the single events DP4114, MON 810, MIR604 and NK603, pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (D081155/01,

—	having regard to Regulation (EC) No 1829/2003 of the European Parliament and of the Council of 22 September 2003 on genetically modified food and feed (1), and in particular Article 7(3) and Article 19(3) thereof,

—	having regard to the vote of the Standing Committee on Plants, Animals, Food and Feed referred to in Article 35 of Regulation (EC) No 1829/2003, on 16 May 2022, at which no opinion was delivered,

—	having regard to Articles 11 and 13 of Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (2),

—	having regard to the opinion adopted by the European Food Safety Authority (EFSA) on 26 January 2022, and published on 7 March 2022 (3),

—	having regard to its previous resolutions objecting to the authorisation of genetically modified organisms (‘GMOs’) (4),

—	having regard to Rule 112(2) and (3) of its Rules of Procedure,

—	having regard to the motion for a resolution by the Committee on the Environment, Public Health and Food Safety,

whereas on 2 May 2018, Pioneer Overseas Corporation, based in Belgium, submitted, on behalf of Pioneer Hi-Bred International, Inc., based in the United States, an application for the placing on the market of foods, food ingredients and feed containing, consisting of or produced from genetically modified maize DP4114 × MON 810 × MIR604 × NK603 (‘the GM maize’), in accordance with Articles 5 and 17 of Regulation (EC) No 1829/2003 (‘the application’); whereas the application also covered the placing on the market of products containing or consisting of the GM maize for uses other than food and feed, with the exception of cultivation;

B.	whereas, in addition, the application covered the placing on the market of products containing, consisting of or produced from 10 sub-combinations of the single transformation events constituting the GM maize;

C.	whereas the sub-combination MON 810 × NK603, has already been authorised by Commission Implementing Decision (EU) 2018/2045 (5); whereas the draft implementing decision therefore covers the GM maize and the 9 remaining sub-combinations in the application (6);

D.	whereas, on 26 January 2022, EFSA adopted a favourable opinion in relation to the authorisation of the GM maize, which was published on 7 March 2022;

E.	whereas the GM maize was produced by conventional crossing to combine four single GM maize events: DP4114, MON 810, MIR604 and NK603; whereas the GM maize confers tolerance to two herbicides (glufosinate and glyphosate) and produces five insecticidal proteins (7) (‘Bt toxins’);

F.	whereas no experimental data were submitted by the applicant for the 9 sub-combinations, which have not previously been assessed by EFSA (8); whereas despite that lack of experimental data, EFSA concluded that those sub-combinations would not raise safety concerns;

Lack of assessment of the complementary herbicide

G.	whereas Commission Implementing Regulation (EU) No 503/2013 (9) requires an assessment of whether the expected agricultural practices influence the outcome of the studied endpoints; whereas, according to that Implementing Regulation, this is especially relevant for herbicide-tolerant plants;

whereas a number of studies show that herbicide-tolerant GM crops result in a higher use of complementary herbicides, in large part because of the emergence of herbicide-tolerant weeds (10); whereas, as a consequence, it has to be expected that the GM maize will be exposed to both higher and repeated doses of glyphosate and glufosinate herbicides and that therefore a higher quantity of residues and their breakdown products (‘metabolites’) may be present in the harvest;

I.	whereas glufosinate is classified as toxic to reproduction 1B and therefore meets the ‘cut-off criteria’ set out in Regulation (EC) No 1107/2009 of the European Parliament and of the Council (11); whereas the approval of glufosinate for use in the Union expired on 31 July 2018 (12);

whereas EFSA concluded in November 2015 that glyphosate was unlikely to be carcinogenic and the European Chemicals Agency concluded in March 2017 that no classification was warranted; whereas, on the contrary, in 2015, the International Agency for Research on Cancer, the specialised cancer agency of the World Health Organization, classified glyphosate as a probable carcinogen for humans; whereas a number of other recent scientific peer-reviewed studies confirm the carcinogenic potential of glyphosate (13);

whereas assessment of herbicide residues and metabolites found on GM plants is considered outside the remit of the EFSA Panel on Genetically Modified Organisms (EFSA GMO Panel) and is therefore not undertaken as part of the authorisation process for GMOs; whereas this is problematic since the way in which complementary herbicides are broken down by the GM plant concerned, and the composition and thus toxicity of the metabolites, can be impacted by the genetic modification itself (14);

Outstanding questions concerning Bt toxins

whereas the toxicity of the Bt toxins was assessed on the basis of feeding studies, using only isolated Bt proteins produced by bacteria; whereas little significance can be attributed to toxicological tests conducted with proteins in isolation, due to the fact that Bt toxins in GM crops, such as maize, cotton and soybeans, are inherently more toxic than isolated Bt toxins; whereas this is because protease inhibitors (PI), present in the plant tissue, can increase the toxicity of the Bt toxins by delaying their degradation; whereas this phenomenon has been demonstrated in a number of scientific studies, including one conducted for Monsanto thirty years ago which showed that even the presence of extremely low levels of PI enhanced the toxicity of Bt toxins up to 20-fold (15);

whereas this enhanced toxicity is not taken into account in EFSA risk assessments, even though it is relevant for all Bt plants approved for import or cultivation in the Union; whereas risks to humans and animals that consume food and feed containing Bt toxins and which arise from this enhanced toxicity due to the interaction between PI and Bt toxins cannot, therefore, be ruled out;

N.	whereas a number of studies show that side effects have been observed that may affect the immune system following exposure to Bt toxins and that some Bt toxins may have adjuvant properties (16), meaning that they can increase the allergenicity of other proteins with which they come into contact;

whereas a scientific study found that the toxicity of Bt toxins may also be increased through interaction with residues from spraying with herbicides, and that further studies are needed on the combinatorial effects of ‘stacked’ events (GM crops which have been modified to be herbicide tolerant and to produce insecticides in the form of Bt toxins) (17); whereas assessment of the potential interaction of herbicide residues and their metabolites with Bt toxins is, however, considered to be outside the remit of the EFSA GMO Panel and is, therefore, not undertaken as part of the risk assessment;

Bt crops: effects on non-target organisms

P.	whereas, unlike the use of insecticides, where exposure is at the time of spraying and for a limited time afterwards, the use of Bt GM crops leads to continuous exposure of the target and non-target organisms to Bt toxins;

whereas the assumption that Bt toxins exhibit a single target-specific mode-of-action can no longer be considered correct and effects on non-target organisms cannot be excluded (18); whereas an increasing number of non-target organisms are reported to be affected in many ways; whereas 39 peer-reviewed publications that report significant adverse effects of Bt toxins on many ‘out-of-range’ species are mentioned in a recent overview (19);

Member State competent authority and stakeholder comments

R.	whereas Member States submitted many critical comments to EFSA during the three-month consultation period (20);

whereas detailed analysis by an independent research organisation states, inter alia, that the EFSA opinion on the application for authorisation of the GM maize cannot be said to fulfil the requirements for assessment of potential synergistic or antagonistic effects resulting from the combination of the transformation events, with regard to toxicology and that, therefore, the toxicological assessment carried out by EFSA is not acceptable (21);

Upholding the Union’s international obligations

whereas a 2017 report by the United Nations (UN) Special Rapporteur on the right to food found that, particularly in developing countries, hazardous pesticides have catastrophic impacts on health (22); whereas the UN Sustainable Development Goal (‘SDG’) Target 3.9 aims by 2030 to substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination (23); whereas authorising the import of the GM maize would increase demand for this crop, which is designed to be treated with glufosinate and glyphosate based herbicides, thereby increasing the exposure of workers and the environment in third countries; whereas the risk of increased worker and environmental exposure is of particular concern in relation to herbicide-tolerant GM crops, given the higher volumes of herbicides used;

U.	whereas, according to a peer-reviewed study published in 2020, Roundup, one of the world’s most widely used glyphosate-based herbicides, can trigger a loss of biodiversity, making ecosystems more vulnerable to pollution and climate change (24);

V.	whereas the Union, as a party to the UN Convention on Biological Diversity (‘UN CBD’), has the responsibility of ensuring that activities within its jurisdiction or control do not cause damage to the environment of other States (25);

whereas Regulation (EC) No 1829/2003 states that GM food or feed must not have adverse effects on human health, animal health or the environment, and requires the Commission to take into account any relevant provisions of Union law and other legitimate factors relevant to the matter under consideration when drafting its decision; whereas such legitimate factors should include the Union’s obligations under the UN SDGs, the Paris Climate Agreement and the UN CBD;

Undemocratic decision-making

X.	whereas the vote on 16 May 2022 of the Standing Committee on Plants, Animals, Food and Feed referred to in Article 35 of Regulation (EC) No 1829/2003 delivered no opinion, meaning that the authorisation was not supported by a qualified majority of Member States;

whereas the Commission recognises that the fact that GMO authorisation decisions continue to be adopted by the Commission without a qualified majority of Member States in favour, which is very much the exception for product authorisations as a whole but has become the norm for decision-making on GM food and feed authorisations, is problematic;

whereas, in its eighth term, Parliament adopted a total of 36 resolutions objecting to the placing on the market of GMOs for food and feed (33 resolutions) and to the cultivation of GMOs in the Union (three resolutions); whereas, in its ninth term, Parliament has already adopted 27 objections to placing GMOs on the market; whereas there was not a qualified majority of Member States in favour of authorising any of those GMOs; whereas the reasons for Member States not supporting authorisations include lack of respect for the precautionary principle in the authorisation process and scientific concerns relating to the risk assessment;

AA.	whereas despite its own acknowledgement of the democratic shortcomings, the lack of support from Member States and the objections of Parliament, the Commission continues to authorise GMOs;

AB.	whereas no change of law is required for the Commission to be able not to authorise GMOs when there is no qualified majority of Member States in favour in the Appeal Committee (26);

Considers that the draft Commission implementing decision exceeds the implementing powers provided for in Regulation (EC) No 1829/2003;

Considers that the draft Commission implementing decision is not consistent with Union law, in that it is not compatible with the aim of Regulation (EC) No 1829/2003, which is, in accordance with the general principles laid down in Regulation (EC) No 178/2002 of the European Parliament and of the Council (27), to provide the basis for ensuring a high level of protection of human life and health, animal health and welfare, and environmental and consumer interests, in relation to GM food and feed, while ensuring the effective functioning of the internal market;

Calls on the Commission to withdraw its draft implementing decision;

Calls on the Commission not to authorise the import of herbicide-tolerant GM crops, due to the associated increased use of complementary herbicides and therefore the increased risks to biodiversity, food safety and worker health;

Welcomes the fact that the Commission finally recognised, in a letter of 11 September 2020 to Members, the need to take sustainability into account when it comes to authorisation decisions on GMOs (28); expresses its deep disappointment, however, that, since then the Commission has continued to authorise GMOs for import into the Union, despite ongoing objections by Parliament and a majority of Member States voting against;

Urges the Commission, again, to take into account the Union’s obligations under international agreements, such as the Paris Climate Agreement, the UN CBD and the UN SDGs; reiterates its call for draft implementing acts to be accompanied by an explanatory memorandum explaining how they uphold the principle of ‘do no harm’ (29);

Calls on EFSA to request data on the impact of the consumption of food and feed derived from GM plants on the intestinal microbiome;

Reiterates its call on the Commission not to authorise any sub-combinations of stacked GM events unless they have been thoroughly evaluated by EFSA on the basis of complete experimental data submitted by the applicant;

Considers, more specifically, that to approve varieties of GM plants for which no experimental data have been provided, which have not been tested, or which may not even have been created yet, runs contrary to the principles of general food law, as laid down in Regulation (EC) No 178/2002;

10.

Highlights that the amendments adopted by the European Parliament on 17 December 2020 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 182/2011 (30), which were adopted in Parliament as a basis for negotiations with the Council, state that the Commission shall not authorise GMOs when there is not a qualified majority of Member States in favour; insists that the Commission respect this position and calls on the Council to proceed with its work and adopt a general approach on this file as a matter of urgency;

11.

Instructs its President to forward this resolution to the Council and the Commission, and to the governments and parliaments of the Member States.

(1) OJ L 268, 18.10.2003, p. 1.

(2) OJ L 55, 28.2.2011, p. 13.

(3) Scientific opinion of the EFSA Panel on Genetically Modified Organisms on the assessment of genetically modified maize DP4114 × MON 810 × MIR604 × NK603 and sub-combinations, for food and feed uses, under Regulation (EC) No 1829/2003 (application EFSA-GMO-NL-2018-150), EFSA Journal 2022,20(3):7134, https://doi.org/10.2903/j.efsa.2022.7134

(4) In its eighth term, Parliament adopted 36 resolutions objecting to the authorisation of GMOs.

Furthermore, in its ninth term Parliament has adopted the following resolutions:

—

European Parliament resolution of 10 October 2019 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize MZHG0JG (SYN-ØØØJG-2), pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 202, 28.5.2021, p. 11).

—

European Parliament resolution of 10 October 2019 on the draft Commission implementing decision renewing the authorisation for the placing on the market of products containing, consisting of or produced from genetically modified soybean A2704-12 (ACS-GMØØ5-3) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 202, 28.5.2021, p. 15).

—

European Parliament resolution of 10 October 2019 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize MON 89034 × 1507 × MON 88017 × 59122 × DAS-40278-9 and genetically modified maize combining two, three or four of the single events MON 89034, 1507, MON 88017, 59122 and DAS-40278-9 pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 202, 28.5.2021, p. 20).

—

European Parliament resolution of 14 November 2019 on the draft Commission implementing decision renewing the authorisation for the placing on the market of products containing, consisting of or produced from genetically modified cotton LLCotton25 (ACS-GHØØ1-3) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 208, 1.6.2021, p. 2).

—

European Parliament resolution of 14 November 2019 on the draft Commission implementing decision renewing the authorisation for the placing on the market of products containing, consisting of or produced from genetically modified soybean MON 89788 (MON-89788-1) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 208, 1.6.2021, p. 7).

—

European Parliament resolution of 14 November 2019 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize MON 89034 × 1507 × NK603 × DAS-40278-9 and sub-combinations MON 89034 × NK603 × DAS-40278-9, 1507 × NK603 × DAS-40278-9 and NK603 × DAS-40278-9 pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 208, 1.6.2021, p. 12).

—

European Parliament resolution of 14 November 2019 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize Bt11 × MIR162 × MIR604 × 1507 × 5307 × GA21 and genetically modified maize combining two, three, four or five of the single events Bt11, MIR162, MIR604, 1507, 5307 and GA21 pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 208, 1.6.2021, p. 18).

—

European Parliament resolution of 14 May 2020 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified soybean MON 87708 × MON 89788 × A5547-127, pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 323, 11.8.2021, p. 7).

—

European Parliament resolution of 11 November 2020 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize MON 87427 × MON 89034 × MIR162 × NK603 and genetically modified maize combining two or three of the single events MON 87427, MON 89034, MIR162 and NK603, and repealing Commission Implementing Decision (EU) 2018/1111 pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 415, 13.10.2021, p. 2).

—

European Parliament resolution of 11 November 2020 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified soybean SYHT0H2 (SYN-ØØØH2-5), pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 415, 13.10.2021, p. 8).

—

European Parliament resolution of 11 November 2020 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize MON 87427 × MON 87460 × MON 89034 × MIR162 × NK603 and genetically modified maize combining two, three or four of the single events MON 87427, MON 87460, MON 89034, MIR162 and NK603, pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 415, 13.10.2021, p. 15).

—

European Parliament resolution of 17 December 2020 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified soybean MON 87751 × MON 87701 × MON 87708 × MON 89788, pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 445, 29.10.2021, p. 36).

—

European Parliament resolution of 17 December 2020 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize MON 87427 × MON 89034 × MIR162 × MON 87411 and genetically modified maize combining two or three of the single events MON 87427, MON 89034, MIR162 and MON 87411 pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 445, 29.10.2021, p. 43).

—

European Parliament resolution of 17 December 2020 on the draft Commission implementing decision renewing the authorisation for the placing on the market of products containing, consisting of or produced from genetically modified maize MIR604 (SYN-IR6Ø4-5) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 445, 29.10.2021, p. 49).

—

European Parliament resolution of 17 December 2020 on the draft Commission implementing decision renewing the authorisation for the placing on the market of products containing, consisting of or produced from genetically modified maize MON 88017 (MON-88Ø17-3) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 445, 29.10.2021, p. 56).

—

European Parliament resolution of 17 December 2020 on the draft Commission implementing decision renewing the authorisation for the placing on the market of products containing, consisting of or produced from genetically modified maize MON 89034 (MON-89Ø34-3) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 445, 29.10.2021, p. 63).

—

European Parliament resolution of 11 March 2021 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified cotton GHB614 × T304-40 × GHB119 pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 474, 24.11.2021, p. 66).

—

European Parliament resolution of 11 March 2021 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize MZIR098 (SYN-ØØØ98-3), pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 474, 24.11.2021, p. 74).

—

European Parliament resolution of 7 July 2021 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified soybean DAS-81419-2 pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 99, 1.3.2022, p. 45).

—

European Parliament resolution of 7 July 2021 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified soybean DAS-81419-2 × DAS–44406–6, pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 99, 1.3.2022, p. 52).

—

European Parliament resolution of 7 July 2021 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize 1507 ×MIR162 × MON810 × NK603 and genetically modified maize combining two or three of the single events 1507, MIR162, MON810 and NK603, pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 99, 1.3.2022, p. 59).

—

European Parliament resolution of 7 July 2021 on the draft Commission implementing decision renewing the authorisation for the placing on the market of products containing, consisting of or produced from genetically modified maize Bt 11 (SYN-BTØ11-1) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 99, 1.3.2022, p. 66).

—

European Parliament resolution of 15 February 2022 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified soybean GMB151 (BCS-GM151-6) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (Texts adopted, P9_TA(2022)0024).

—

European Parliament resolution of 15 February 2022 on the draft Commission implementing decision renewing the authorisation for the placing on the market of products containing, consisting of or produced from genetically modified cotton GHB614 (BCS-GHØØ2-5) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (Texts adopted, P9_TA(2022)0025).

—

European Parliament resolution of 9 March 2022 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified cotton GHB811 (BCS-GH811-4), pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (Texts adopted, P9_TA(2022)0062).

—

European Parliament resolution of 9 March 2022 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified oilseed rape 73496 (DP-Ø73496-4) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (Texts adopted, P9_TA(2022)0063).

—

European Parliament resolution of 6 April 2022 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified soybean MON 87769 × MON 89788 pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (Texts adopted, P9_TA(2022)0115).

(5) Commission Implementing Decision (EU) 2018/2045 of 19 December 2018 renewing the authorisation for the placing on the market of products containing, consisting of or produced from genetically modified maize NK603 × MON 810 (MON-ØØ6Ø3-6 × MON-ØØ81Ø-6) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ L 327, 21.12.2018, p. 65).

(6) MIR604 × NK603 × DP4114, MON 810 × NK603 × DP4114, MON 810 × MIR604 × DP4114, MON 810 × MIR604 × NK603, NK603 × DP4114, MIR604 × DP4114, MIR604 × NK603, MON 810 × DP4114 and MON 810 × MIR604.

(7) Cry1F, Cry34Ab1, Cry35Ab1, Cry1Ab and mCry3A.

(8) EFSA opinion, p. 4.

(9) Commission Implementing Regulation (EU) No 503/2013 of 3 April 2013 on applications for authorisation of genetically modified food and feed in accordance with Regulation (EC) No 1829/2003 of the European Parliament and of the Council and amending Commission Regulations (EC) No 641/2004 and (EC) No 1981/2006 (OJ L 157, 8.6.2013, p. 1).

(10) See, for example, Bonny, S., ‘Genetically Modified Herbicide-Tolerant Crops, Weeds, and Herbicides: Overview and Impact’, Environmental Management, January 2016; 57(1), pp. 31-48, https://www.ncbi.nlm.nih.gov/pubmed/26296738 and Benbrook, C.M., ‘Impacts of genetically engineered crops on pesticide use in the U.S. — the first sixteen years’, Environmental Sciences Europe, 28 September 2012, Vol. 24(1), https://enveurope.springeropen.com/articles/10.1186/2190-4715-24-24

(11) Regulation (EC) No 1107/2009 of the European Parliament and of the Council of 21 October 2009 concerning the placing of plant protection products on the market and repealing Council Directives 79/117/EEC and 91/414/EEC (OJ L 309, 24.11.2009, p. 1).

(12) https://ec.europa.eu/food/plant/pesticides/eu-pesticides-database/active-substances/?event=search.as

(13) See, for example, https://www.sciencedirect.com/science/article/pii/S1383574218300887, https://academic.oup.com/ije/advance-article/doi/10.1093/ije/dyz017/5382278, https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0219610, and https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6612199/

(14) This is indeed the case for glyphosate, as stated in EFSA ‘Review of the existing maximum residue levels for glyphosate according to Article 12 of Regulation (EC) No 396/2005’, EFSA Journal 2018,16(5):5263, p. 12, https://www.efsa.europa.eu/fr/efsajournal/pub/5263

(15) MacIntosh, S.C., Kishore, G.M., Perlak, F.J., Marrone, P.G., Stone, T.B., Sims, S.R., Fuchs, R.L., ‘Potentiation of Bacillus thuringiensis insecticidal activity by serine protease inhibitors’, Journal of Agricultural and Food Chemistry, 1990, 38, pp. 1145-1152, https://pubs.acs.org/doi/abs/10.1021/jf00094a051

(16) For a review, see Rubio-Infante, N., Moreno-Fierros, L., ‘An overview of the safety and biological effects of Bacillus thuringiensis Cry toxins in mammals’, Journal of Applied Toxicology, May 2016, 36(5), pp. 630 648, https://onlinelibrary.wiley.com/doi/full/10.1002/jat.3252

(17) https://www.sciencedirect.com/science/article/pii/S0278691516300722?via%3Dihub

(18) See, for example, Hilbeck, A., Otto, M., ‘Specificity and combinatorial effects of Bacillus thuringiensis Cry toxins in the context of GMO environmental risk assessment’, Frontiers in Environmental Science 2015, 3:71, https://doi.org/10.3389/fenvs.2015.00071

(19) Hilbeck, A., Defarge, N., Lebrecht, T., Bøhn, T., ‘Insecticidal Bt crops. EFSA’s risk assessment approach for GM Bt plants fails by design’, RAGES 2020, p. 4, https://www.testbiotech.org/sites/default/files/RAGES_report-Insecticidal%20Bt%20plants.pdf

(20) Member State comments, accessible via the EFSA OpenEFSA portal: https://open.efsa.europa.eu/

(21) Testbiotech comment on EFSA assessment of genetically engineered maize DP4114 x MON810 x MIR604 x NK603 and subcombinations, for food and feed uses, under Regulation (EC) No 1829/2003 (application EFSA-GMO-NL-2018-150) from Pioneer.

(22) https://www.un.org/sustainabledevelopment/health/

(23) https://indicators.report/targets/3-9/

(24) https://www.mcgill.ca/newsroom/channels/news/widely-used-weed-killer-harming-biodiversity-320906

(25) Convention on Biological Diversity, Article 3: https://www.cbd.int/convention/articles/?a=cbd-03

(26) The Commission ‘may’, and not ‘shall’, go ahead with authorisation if there is no qualified majority of Member States in favour at the Appeal Committee, according to Regulation (EU) No 182/2011 (Article 6(3)).

(27) Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety (OJ L 31, 1.2.2002, p. 1).

(28) https://tillymetz.lu/wp-content/uploads/2020/09/Co-signed-letter-MEP-Metz.pdf

(29) European Parliament resolution of 15 January 2020 on the European Green Deal (OJ C 270, 7.7.2021, p. 2), paragraph 102.

(30) OJ C 445, 29.10.2021, p. 257.

27.1.2023

Official Journal of the European Union

C 32/14

P9_TA(2022)0258

Genetically modified maize NK603 × T25 × DAS-40278-9 and its sub-combination T25 × DAS-40278-9

European Parliament resolution of 23 June 2022 on Commission Implementing Decision (EU) 2022/797 of 19 May 2022 authorising the placing on the market of products containing, consisting of or produced from genetically modified maize NK603 × T25 × DAS-40278-9 and its sub-combination T25 × DAS-40278-9, pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (D080148/03 — 2022/2713(RSP))

(2023/C 32/03)

The European Parliament,

—

having regard to Commission Implementing Decision (EU) 2022/797 of 19 May 2022 authorising the placing on the market of products containing, consisting of or produced from genetically modified maize NK603 × T25 × DAS-40278-9 and its sub-combination T25 × DAS-40278-9, pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (D080148/03 (1),

—	having regard to Regulation (EC) No 1829/2003 of the European Parliament and of the Council of 22 September 2003 on genetically modified food and feed (2), and in particular Article 7(3) and Article 19(3) thereof,

—	having regard to the vote of the Standing Committee on Plants, Animals, Food and Feed referred to in Article 35 of Regulation (EC) No 1829/2003, on 1 April 2022, at which no opinion was delivered, and to the vote of the Appeal Committee on 26 April 2022, at which again no opinion was delivered,

—	having regard to Articles 11 and 13 of Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (3),

—	having regard to the opinion adopted by the European Food Safety Authority (EFSA) on 29 October 2021, and published on 13 December 2021 (4),

—	having regard to its previous resolutions objecting to the authorisation of genetically modified organisms (‘GMOs’) (5),

—	having regard to Rule 112(2) and (3) of its Rules of Procedure,

—	having regard to the motion for a resolution by the Committee on the Environment, Public Health and Food Safety,

whereas, on 12 December 2019, Pioneer Overseas Corporation submitted an application for the placing on the market of foods, food ingredients and feed containing, consisting of or produced from genetically modified maize NK603 × T25 × DAS-40278-9 (the ‘GM maize’), in accordance with Articles 5 and 17 of Regulation (EC) No 1829/2003; whereas the application also covered the placing on the market of products containing or consisting of the GM maize for uses other than food and feed, with the exception of cultivation;

B.	whereas, on 29 October 2021, EFSA adopted a favourable opinion in relation to the authorisation of the GM maize, which was published on 13 December 2021;

whereas the three-event stacked GM maize was produced by conventional crossing to combine three single GM maize events: NK603 which confers tolerance to glyphosate containing herbicides; T25 conferring tolerance to glufosinate-ammonium containing herbicides; and DAS-40278-9 which catalyses the degradation of the general class of herbicides known as aryloxyphenoxypropionates (AOPP) and which confers tolerance to 2,4-D containing herbicides (6);

whereas sub-combination NK603 x T25 and sub-combination NK603 x DAS-40278-9 have previously been assessed by EFSA; whereas no experimental data were submitted by the applicant for sub-combination DAS-40278-9 x T25, which has not previously been assessed by EFSA; whereas despite this, EFSA concluded that this sub-combination would not raise safety concerns;

Lack of assessment of the complementary herbicide

E.	whereas Commission Implementing Regulation (EU) No 503/2013 (7) requires an assessment of whether the expected agricultural practices influence the outcome of the studied endpoints; whereas, according to that Implementing Regulation, this is especially relevant for herbicide-tolerant plants;

whereas a number of studies show that herbicide-tolerant GM crops result in a higher use of complementary herbicides, in large part because of the emergence of herbicide-tolerant weeds (8); whereas, as a consequence, it has to be expected that the GM maize will be exposed to both higher and repeated doses of glyphosate, glufosinate, AOPP and 2,4-D herbicides and that therefore a higher quantity of residues and their breakdown products (‘metabolites’) may be present in the harvest;

G.	whereas glufosinate is classified as toxic to reproduction 1B and therefore meets the ‘cut-off criteria’ set out in Regulation (EC) No 1107/2009 of the European Parliament and of the Council (9); whereas the approval of glufosinate for use in the Union expired on 31 July 2018 (10);

I.	whereas a peer-reviewed scientific article by an expert involved in developing GM plants questions the safety of GM crops tolerant to 2,4-D because of its degradation into cytotoxic breakdown products (12);

whereas assessment of herbicide residues and metabolites found on GM plants is considered outside the remit of the EFSA Panel on Genetically Modified Organisms and is therefore not undertaken as part of the authorisation process for GMOs; whereas this is problematic since the way in which complementary herbicides are broken down by the GM plant concerned, and the composition and thus toxicity of the metabolites, can be impacted by the genetic modification itself (13);

Member State competent authority comments

whereas Member States submitted many critical comments to EFSA during the three-month consultation period (14); whereas those critical comments include that the interaction among the herbicides, their residues and metabolites used on the GM maize cannot be excluded and this chemical cocktail has never been tested from a toxicological angle before, and might affect human and animal health and the environment and whereas there is a vector-derived beta-lactamase (‘bla’) gene in the GM maize, an antibiotic resistance gene which inactivates critically important penicillins;

L.	whereas according to a Member State competent authority (15), whilst the applicant claims that the scientific information in the application is confidential, this conflicts with the Aarhus Convention that lays down the right of the public to access environmental information;

Upholding the Union’s international obligations

whereas a 2017 report by the United Nations (UN) Special Rapporteur on the right to food found that, particularly in developing countries, hazardous pesticides have catastrophic impacts on health (16); whereas the UN Sustainable Development Goal (‘SDG’) Target 3.9 aims by 2030 to substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination (17); whereas authorising the import of the GM maize would increase demand for this crop, which is designed to be treated with glufosinate, glyphosate, AOPP and 2,4-D herbicides, thereby increasing the exposure of workers and the environment in third countries; whereas the risk of increased worker and environmental exposure is of particular concern in relation to herbicide-tolerant GM crops, given the higher volumes of herbicides used;

N.	whereas, according to a peer-reviewed study published in 2020, Roundup, one of the world’s most widely used glyphosate-based herbicides, can trigger a loss of biodiversity, making ecosystems more vulnerable to pollution and climate change (18);

O.	whereas the Union, as a party to the UN Convention on Biological Diversity (‘UN CBD’), has the responsibility of ensuring that activities within its jurisdiction or control do not cause damage to the environment of other States (19);

Undemocratic decision-making

whereas the Standing Committee on Plants, Animals, Food and Feed delivered no opinion, meaning that the authorisation was not supported by a qualified majority of Member States; whereas the vote on 26 April 2022 of the Appeal Committee referred to in Article 6 of Regulation (EU) No 182/2011, again delivered no opinion; whereas 14 Member States voted against (representing 35,72 % of the EU population) and 3 Member States abstained (representing 34,53 % of the population), only 10 member States voted in favour (representing 29,75 % of the population);

T.	whereas despite its own acknowledgement of the democratic shortcomings, the lack of support from Member States and the objections of Parliament, the Commission continues to authorise GMOs;

U.	whereas no change of law is required for the Commission to be able not to authorise GMOs when there is no qualified majority of Member States in favour in the Appeal Committee (20);

Considers that Implementing Decision (EU) 2022/797 exceeds the implementing powers provided for in Regulation (EC) No 1829/2003;

Considers that Implementing Decision (EU) 2022/797 is not consistent with Union law, in that it is not compatible with the aim of Regulation (EC) No 1829/2003, which is, in accordance with the general principles laid down in Regulation (EC) No 178/2002 of the European Parliament and of the Council (21), to provide the basis for ensuring a high level of protection of human life and health, animal health and welfare, and environmental and consumer interests, in relation to GM food and feed, while ensuring the effective functioning of the internal market;

Calls on the Commission to repeal Implementing Decision (EU) 2022/797;

Welcomes the fact that the Commission finally recognised, in a letter of 11 September 2020 to Members, the need to take sustainability into account when it comes to authorisation decisions on GMOs (22); expresses its deep disappointment, however, that, since then the Commission has continued to authorise GMOs for import into the Union, despite ongoing objections by Parliament and a majority of Member States voting against;

Highlights that the amendments adopted by the European Parliament on 17 December 2020 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 182/2011 (24), which were adopted in Parliament as a basis for negotiations with the Council, state that the Commission shall not authorise GMOs when there is not a qualified majority of Member States in favour; insists that the Commission respect this position and calls on the Council to proceed with its work and adopt a general approach on this file as a matter of urgency;

Instructs its President to forward this resolution to the Council and the Commission, and to the governments and parliaments of the Member States.

(1) OJ L 141, 20.5.2022, p. 116.

(2) OJ L 268, 18.10.2003, p. 1.

(3) OJ L 55, 28.2.2011, p. 13.

(4) https://www.efsa.europa.eu/en/efsajournal/pub/6942

(5) In its eighth term, Parliament adopted 36 resolutions objecting to the authorisation of GMOs. Furthermore, in its ninth term Parliament has adopted the following resolutions:

—

European Parliament resolution of 10 October 2019 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize MZHG0JG (SYN-ØØØJG-2), pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 202, 28.5.2021, p. 11).

—

European Parliament resolution of 10 October 2019 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize MON 89034 × 1507 × MON 88017 × 59122 × DAS-40278-9 and genetically modified maize combining two, three or four of the single events MON 89034, 1507, MON 88017, 59122 and DAS-40278-9 pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 202, 28.5.2021, p. 20).

—

European Parliament resolution of 14 November 2019 on the draft Commission implementing decision renewing the authorisation for the placing on the market of products containing, consisting of or produced from genetically modified soybean MON 89788 (MON-89788-1) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 208, 1.6.2021, p. 7).

—

European Parliament resolution of 14 November 2019 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize Bt11 × MIR162 × MIR604 × 1507 × 5307 × GA21 and genetically modified maize combining two, three, four or five of the single events Bt11, MIR162, MIR604, 1507, 5307 and GA21 pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 208, 1.6.2021, p. 18).

—

European Parliament resolution of 11 November 2020 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified soybean SYHT0H2 (SYN-ØØØH2-5), pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 415, 13.10.2021, p. 8).

—

European Parliament resolution of 11 November 2020 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize MON 87427 × MON 87460 × MON 89034 × MIR162 × NK603 and genetically modified maize combining two, three or four of the single events MON 87427, MON 87460, MON 89034, MIR162 and NK603, pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 415, 13.10.2021, p. 15).

—

European Parliament resolution of 17 December 2020 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize MON 87427 × MON 89034 × MIR162 × MON 87411 and genetically modified maize combining two or three of the single events MON 87427, MON 89034, MIR162 and MON 87411 pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 445, 29.10.2021, p. 43).

—

European Parliament resolution of 17 December 2020 on the draft Commission implementing decision renewing the authorisation for the placing on the market of products containing, consisting of or produced from genetically modified maize MON 88017 (MON-88Ø17-3) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 445, 29.10.2021, p. 56).

—

European Parliament resolution of 17 December 2020 on the draft Commission implementing decision renewing the authorisation for the placing on the market of products containing, consisting of or produced from genetically modified maize MON 89034 (MON-89Ø34-3) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 445, 29.10.2021, p. 63).

—

European Parliament resolution of 11 March 2021 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize MZIR098 (SYN-ØØØ98-3), pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 474, 24.11.2021, p. 74).

—

European Parliament resolution of 7 July 2021 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified soybean DAS-81419-2 × DAS–44406–6, pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 99, 1.3.2022, p. 52).

—

European Parliament resolution of 7 July 2021 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize 1507 ×MIR162 × MON810 × NK603 and genetically modified maize combining two or three of the single events 1507, MIR162, MON810 and NK603, pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (OJ C 99, 1.3.2022, p. 59).

—

European Parliament resolution of 9 March 2022 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified oilseed rape 73496 (DP-Ø73496-4) pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (Texts adopted, P9_TA(2022)0063).

—

(6) EFSA opinion, p. 3.

(7) Commission Implementing Regulation (EU) No 503/2013 of 3 April 2013 on applications for authorisation of genetically modified food and feed in accordance with Regulation (EC) No 1829/2003 of the European Parliament and of the Council and amending Commission Regulations (EC) No 641/2004 and (EC) No 1981/2006 (OJ L 157, 8.6.2013, p. 1).

(8) See, for example, Bonny, S., ‘Genetically Modified Herbicide-Tolerant Crops, Weeds, and Herbicides: Overview and Impact’, Environmental Management, January 2016; 57(1), pp. 31-48, https://www.ncbi.nlm.nih.gov/pubmed/26296738 and Benbrook, C.M., ‘Impacts of genetically engineered crops on pesticide use in the U.S. — the first sixteen years’, Environmental Sciences Europe; 28 September 2012, Vol. 24(1), https://enveurope.springeropen.com/articles/10.1186/2190-4715-24-24

(9) Regulation (EC) No 1107/2009 of the European Parliament and of the Council of 21 October 2009 concerning the placing of plant protection products on the market and repealing Council Directives 79/117/EEC and 91/414/EEC (OJ L 309, 24.11.2009, p. 1).

(10) https://ec.europa.eu/food/plant/pesticides/eu-pesticides-database/active-substances/?event=search.as

(11) See, for example, https://www.sciencedirect.com/science/article/pii/S1383574218300887, https://academic.oup.com/ije/advance-article/doi/10.1093/ije/dyz017/5382278, https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0219610, and https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6612199/

(12) Lurquin, P.F., ‘Production of a toxic metabolite in 2,4-D-resistant GM crop plants’, 3 Biotech 6, 82 (2016), https://doi.org/10.1007/s13205-016-0387-9

(13) This is indeed the case for glyphosate, as stated in EFSA ‘Review of the existing maximum residue levels for glyphosate according to Article 12 of Regulation (EC) No 396/2005’, EFSA Journal 2018; 16(5):5263, p. 12, https://www.efsa.europa.eu/fr/efsajournal/pub/5263

(14) Member State comments, accessible via the EFSA OpenEFSA portal: https://open.efsa.europa.eu/

(15) idem, p. 75.

(16) https://www.un.org/sustainabledevelopment/health/

(17) https://indicators.report/targets/3-9/

(18) https://www.mcgill.ca/newsroom/channels/news/widely-used-weed-killer-harming-biodiversity-320906

(19) Convention on Biological Diversity, Article 3: https://www.cbd.int/convention/articles/?a=cbd-03

(20) The Commission ‘may’, and not ‘shall’, go ahead with authorisation if there is no qualified majority of Member States in favour at the Appeal Committee, according to Regulation (EU) No 182/2011 (Article 6(3)).

(21) Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety (OJ L 31, 1.2.2002, p. 1).

(22) https://tillymetz.lu/wp-content/uploads/2020/09/Co-signed-letter-MEP-Metz.pdf

(23) European Parliament resolution of 15 January 2020 on the European Green Deal (OJ C 270, 7.7.2021, p. 2), paragraph 102.

(24) OJ C 445, 29.10.2021, p. 257.

27.1.2023

Official Journal of the European Union

C 32/20

P9_TA(2022)0262

Illegal logging in the EU

European Parliament resolution of 23 June 2022 on illegal logging in the EU (2022/2523(RSP))

(2023/C 32/04)

The European Parliament,

—	having regard to Article 227 of the Treaty on European Union,

—	having regard to Articles 4, 191, 230 and 258 of the Treaty on the Functioning of the European Union,

—	having regard to Regulation (EU) No 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber products on the market (1) (EU Timber Regulation),

—	having regard to Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora (2) (Habitats Directive),

—	having regard to Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment (3) (Strategic Environmental Assessment Directive),

—

having regard to Regulation (EC) No 1367/2006 of the European Parliament and of the Council of 6 September 2006 on the application of the provisions of the Aarhus Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters to Community institutions and bodies (4) (Aarhus Regulation),

—	having regard to infringement case INFR(2020)2033 included in the Commission’s infringement package of 12 February 2020,

—	having regard to the Commission communication of 20 May 2020 entitled ‘EU Biodiversity Strategy for 2030 — Bringing nature back into our lives’ (COM(2020)0380),

—	having regard to the Commission communication of 16 July 2021 entitled ‘New EU Forest Strategy for 2030’ (COM(2021)0572),

—

having regard to the Commission proposal of 17 November 2021 for a regulation of the European Parliament and of the Council on the making available on the Union market as well as export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010 (COM(2021)0706), aiming to curb EU-driven deforestation and forest degradation,

—	having regard to the Commission proposal of 15 December 2021 for a directive of the European Parliament and of the Council on the protection of the environment through criminal law and replacing Directive 2008/99/EC (COM(2021)0851), and the accompanying communication (COM(2021)0814),

—

having regard to Regulation (EU) 2021/1767 of the European Parliament and of the Council of 6 October 2021 amending Regulation (EC) No 1367/2006 on the application of the provisions of the Aarhus Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters to Community institutions and bodies (5),

—	having regard to the question to the Commission on illegal logging in the EU (O-000020/2022 — B9-0016/2022),

—	having regard to Rules 136(5) and 132(2) of its Rules of Procedure,

—	having regard to the motion for a resolution of the Committee on Petitions,

whereas the Committee on Petitions has received Petitions Nos 0289/2015, 0625/2018, 1248/2019, 0408/2020, 0722/2020 and 1056/2021 raising concerns over increasing illegal logging and specific cases of practices in breach of EU environmental legislation in some Member States, including in Europe’s last remaining primary and old-growth forests, and calling for preventive measures to reduce the risk and magnitude of the environmental damage and threat to human life and well-being;

whereas illegal logging is an activity of serious concern that leads to environmental damage, loss of biodiversity and ecosystem degradation, desertification and soil erosion leading to natural disasters, such as landslides, and has led to the destruction or damage of several Natura 2000 sites and primary and old-growth forests; whereas illegal logging can result in the extinction of protected species and specific habitats for different plant and animal species because those engaged in illegal activities tend to disregard laws that protect valuable forest resources;

C.	whereas Europol estimates that environmental crime is as profitable as drug trafficking, but with a much lower risk of detection and punishment (6);

whereas illegal logging is a major factor in forest degradation, deforestation and climate change, contributing to the deterioration of air quality; whereas illegal logging represents between 15 % and 30 % of international timber production, and has further environmental, social and economic consequences; whereas illegal logging remains largely undetected, thereby hindering the efforts of the EU to reach the goals of the European Green Deal, the European Climate Law and the biodiversity strategy; whereas illegal logging happens very frequently in some of the highest-quality and best-preserved forests in the EU;

whereas products of illegal logging are sold in the EU as certified timber (7); whereas the main existing certification schemes are unable to fully meet the requirements of the applicable legislation; whereas the main schemes assessed in the Commission report of July 2021 on certification and verification schemes in the forest sector have gaps in their legality definitions and their legal requirements are limited in scope or ambiguous in nature; whereas while they do provide a systematic approach to transferring claims throughout the supply chain, for the most part, they do not include the systematic ability to verify — in real time or otherwise — transactions of volumes, species and qualities between entities, thus leaving the systems vulnerable to manipulation and fraud; whereas all main certification schemes are challenged when it comes to identifying and effectively handling corruption issues, the systems in place to identify cases of corruption are relatively limited and the risk of fraud is poorly covered (8);

F.	whereas forests are essential carbon sinks which help to combat climate change;

whereas illegal logging has significant negative socio-economic effects, with local and responsible communities being deprived of their economic livelihood owing to the illicit marketing of illegally cut wood, which in turn encourages delinquency and has a detrimental effect on sustainable local development and legitimate businesses; whereas illegal logging it is often associated with tax evasion, which enables illegal loggers to depress the market value of forest products, leading to market distortion and unfair competition; whereas illegal logging generates revenue loss for the government in terms of lost taxes and duties, and contributes to increased forest management and transaction costs; whereas wood is often logged in one Member State but traded in another; whereas the majority of illegal wood is traded and used as legally logged timber;

H.	whereas there is a lack of consistent, harmonised and comparable data for EU logging, as well as a common definition of illegal logging;

whereas in some cases illegal loggers have been violent towards forestry officials, forest rangers, law enforcement, environmental activists and investigative journalists, resulting in loss of life in at least six reported cases and numerous episodes of violence and harassment against those responsible for the protection of forests;

J.	whereas there are problems arising from the absence of an internationally recognised definition of the activities covered by the concept of ‘illegal logging’; whereas this lack of precision is a serious legal loophole;

whereas corruption and fraud are the main drivers of illegal logging, leading to insufficient enforcement and impunity; whereas this also exacerbates various criminal activities, such as the financing of conflicts and money laundering; whereas EU action is needed to stop illegal logging and deforestation and curb the trade in illegally harvested timber and timber products;

L.	whereas according to Eurojust, environmental crimes have become the fourth most widespread criminal activity at international level;

whereas the EU Timber Regulation lays down rules for the placing on the market of timber and timber products and should prevent illegal logging; whereas the Commission intends to repeal the EU Timber Regulation by means of its proposal for a regulation on the making available on the Union market as well as export from the Union of certain commodities and products associated with deforestation and forest degradation; whereas the European Union should support Member States where there is a lack of good forest governance in combating crime and organised crime preying on forests, and should promote environmental protection, including the protection and sustainable management of forests under Directive 2008/99/EC of 19 November 2008 on the protection of the environment through criminal law (9) and in line with the objectives of the European Green Deal, the biodiversity strategy, the Zero Pollution Action Plan and the Circular Economy Action Plan;

N.	whereas illegal activities lead to unsustainable practices, reduce the value of forests and result in the depreciation of the various environmental, economic and social services provided by forests, thereby leading to outright deforestation and forest degradation;

O.	whereas illegal logging is linked to breaches of human rights and violence, as well as crimes linked to fraud and corruption such as money laundering and tax evasion;

P.	whereas there are several infringement procedures open against Member States for alleged failure to implement EU legislation in this respect;

whereas under the European Agricultural Fund for Rural Development (EAFRD) and other funds managed by Member States, forest owners are currently eligible for compensation for forest-environmental and climate services, support for forest conservation, restoration and protection, and compensation for Natura 2000 forest areas and maintenance and activities improving the resilience and environmental value of forest ecosystems;

whereas the forest management plans of the Member States should correspond to the measures necessary to protect and restore biodiversity in forests, and should be available to the public; notes that not all Natura 2000 site management plans recognise the explicit value of primary and old-growth forests, and that strictly protected forest conservation measures do not completely exclude logging, which can be incompatible with the long-term conservation of primary and old growth forests;

Urges the Member States to fully implement and comply with the obligations set out in existing EU environmental legislation; calls on the Commission to act more swiftly, effectively and transparently, including through regular follow-up of cases, and to pursue infringement procedures to remedy all cases of non-compliance; calls on the Commission to allocate sufficient resources to overcome the current delays; believes that a sufficient level of qualified staff and resources is crucial for the successful implementation and enforcement of EU policies;

Notes that illegal logging is still a problem in the EU; expresses its concern about the negative impact of cases of illegal logging on European forests, wild habitats, the internal market and EU climate action; calls on the Commission and the Member States to undertake a thorough assessment of the socio-economic causes of such phenomena and to fully implement relevant EU and national legislation in order to effectively develop concrete and immediate measures to combat illegal logging so as to prevent it from becoming a trend, taking into account the obligations under the nature directives and the targets under the biodiversity strategy which were endorsed by the Member States; expresses concern that the soaring prices of materials and energy and the zero rating for biomass emissions under the Emissions Trading Scheme could increase the pressure on forests beyond sustainable levels, including as a result of illegal logging as high profit margins stand in contrast to negligible risk, while also taking into account existing social and economic conditions for people living in remote and rural areas of the EU;

Expresses concern that the growing illegal logging in the EU will undermine the goals of the European Green Deal, the EU biodiversity strategy and the forest strategy, since it will represent a failure to protect unique ecological diversity and the last remaining primeval and old-growth forests, restore and conserve natural habitats and species of wild flora and fauna, and undermine the targets for effectively protected and strictly protected areas;

Stresses that deforestation is responsible for 20 % of global CO2 emissions; is concerned about the negative impact that illegal logging has on desertification, soil erosion and phenomena such as flooding; stresses that deforestation is also linked to the extinction of many species that lose their habitats as a result of illegal logging;

Calls on Member State prosecutors and competent authorities to investigate to the fullest extent of the law all cases of illegal logging, as well as the transportation, storage, distribution and sale of illegal timber;

Underlines that achieving sustainable forest management, protection and conservation, based on measurable indicators and thresholds, is a key issue for the future of European forestry; endorses the introduction of a close-to-nature certification scheme to maintain the full range of biological diversity, ensure long-term productivity and resilience, and respond to environmental, economic and societal challenges;

Calls on the Commission and the Member States to put in place the necessary measures to carry out a thorough control to trace the timber used by European companies in order to ensure full compliance with the EU Timber Regulation;

Strongly emphasises that the Commission should ensure that adequate amounts of financial resources within national strategic plans are dedicated to biodiversity restoration in the areas most severely affected by illegal logging; recalls that according to Parliament’s resolution of 9 June 2021 on the EU Biodiversity Strategy for 2030, Member States should reach at least 10 % annual expenditure on biodiversity under the multiannual financial framework; notes with regret that the biodiversity financing target in some Member States is far below the agreed 10 %;

Regrets the fact that in sustainable forest management, neither thresholds or ranges as benchmarks for the desirable condition of forests nor sufficient criteria relating to ecosystem health, biodiversity and climate change have yet been defined; therefore asks for the new indicators and thresholds required for implementable sustainable forest management;

10.

Calls on all Member States to ensure that timber tracking systems are fully operational and that forestry sanctions are proportional and dissuasive so as to discourage illegal logging effectively; expresses strong concern that penalties are currently not proportional to timber product value and that operators sometimes receive only admonition penalties or very low administrative penalties; calls on the Member States to provide means for improving the activities of national authorities responsible for forestry, to increase the number of law enforcement officers where necessary, to effectively proceed with legal action and to start criminal proceedings in cases of illegal logging, based on evidence gathered by the police or referred to the police by third parties; calls for criminal proceedings, including against private persons, to be provided for in the revision of the Directive on the protection of the environment through criminal law;

11.

Calls on all Member States to share best practices among law enforcement authorities in order to boost the fight against all related illegal practices;

12.

Calls on Member States to ensure that public access to environmental information, as well as public participation in decision-making and justice concerning forest management plans, is provided for in line with the Aarhus Regulation;

13.

Stresses the need to correctly assess the environmental impacts of forest management plans and for Member States to revise those which do not comply with national legislation;

14.

Deplores the attacks on forestry officials, forest rangers, law enforcement officers, environmental activists and investigative journalists, including deadly attacks, and recalls that these attacks are often committed either by individuals or well organised and well equipped gangs engaging in illegal logging, increasing violence and frequent intimidation;

15.

Calls on national and EU authorities to take dissuasive and firm action to ensure full compliance with national and EU environmental law; notes that procedural weaknesses and missing checks reduce the Timber Regulation’s effectiveness in practice; urges the EU co-legislators to seize the opportunity presented by the negotiations on the proposal for a regulation on deforestation-free products (COM(2021)0706) to learn lessons from the implementation and enforcement of the EU Timber Regulation and to improve the status of Member States’ competent authorities, the provisions on the quantity and quality of their controls, their relations and interactions with the competent authorities of other Member States and with other national authorities and the Commission; calls on the Member States to strictly implement the provisions of the relevant legislation currently in force by banning the use and placing on the EU market of illegal timber; calls for illegal logging to be treated as a criminal offence, to be subject to appropriate criminal sanctions and to be brought within the scope of the revised directive on the protection of the environment through criminal law, and calls for strengthened European cooperation to combat illegal logging; calls for a uniform definition of illegal logging as an environmental crime in all Member States so as to guarantee that harmonised procedures and penalties are applied for the same illegal logging contraventions across the whole of the EU;

16.

Emphasises the importance of preventive measures to reduce environmental and economic damages and the threat to human life caused by illegal logging; acknowledges that some recent progress has been achieved at Member State level, with reported improvements in timber tracking, and the revision and strengthening of penalties envisaged in national legislation aimed at combating illegal logging; highlights the need for adequate restoration plans for deteriorated environmental areas in the Member States concerned; recalls that a coordinated European approach and prevention measures can help to tackle illegal logging; calls on the Member States to improve the quality and completeness of their forest monitoring systems in order to be able to draw firm conclusions as to the effectiveness of the forest management plans within the Natura 2000 network; notes that to ensure a satisfactory assessment of the effectiveness of Natura 2000-related measures, monitoring should involve collecting more data on areas within and outside the network and on the quality of conservation management;

17.

Calls on the Commission to revise the EU Timber Regulation to extend its application to all timber and timber products sold on the European market in order to ensure a level playing field and avoid unfair competition;

18.

Emphasises the great public interest in combating illegal logging, as also expressed in Petitions Nos 1248/2019, 0408/2020, 0722/2020 and 1056/2021 addressed to the Committee on Petitions, which denounce the increases in illegal logging, often due to lax enforcement of EU legislation in protected areas or halted satellite surveillance systems, as well as the rising numbers of cases of aggression against forest workers, activists and journalists;

19.

Calls on Member States to adopt appropriate law enforcement measures in order to fight illegal logging, and to protect environmental defenders, journalists and whistle-blowers; calls on Member States to take the necessary measures to prevent the dismissal by the judicial authorities of cases related to illegal logging; acknowledges the active role and involvement of civil society, including non-governmental organisations and environmental defenders, in advocating for climate action and biodiversity protection, and calls for the EU to support such activities; stresses the need to guarantee civil society participation in the transparency framework laid out in Article 13 of the Paris Agreement;

20.

Calls on the Commission to lead the fight against illegal logging globally and to promote the implementation of a single, clear and internationally recognised definition of the kind of activities that fall under the concept of ‘illegal logging’ in order to address the current legal loopholes allowing for non-compliance with the standard; welcomes as a first step the proposal for a regulation on deforestation-free products;

21.

Calls on the Commission and the Member States to frequently assess the available data based on both ground-based monitoring and remote-sensing technologies, such as satellite imaging of all forested Natura 2000 sites, to take appropriate measures, including launching infringement procedures, where evidence is found of damage to or destruction of these sites, and to make these assessments and measures public; stresses that satellite imaging is more effective if combined with on-site data and therefore that on-site data should not be neglected; calls on the Member States to remedy the damage to protected forest habitats or the protected habitats of forest species in Natura 2000 sites affected by deforestation and illegal logging;

22.

Stresses that the Commission needs to enforce compliance with EU law; understands that the burden of proof to demonstrate the existence of a breach lies with the Commission, which may not rely on any presumption in infringement cases; stresses, however, that while the Commission has confirmed that the correct application of Union law remains a priority, the length of some infringement cases, even when the Commission has enough evidence, suggests otherwise; declares it to be irresponsible that at a time when environmental legislation is the legislation most breached and the European Green Deal has brought with it new initiatives, the Commission’s Directorate-General for the Environment is consistently and continuously understaffed; deplores the fact that irreplaceable assets are being lost owing to the Commission’s inaction and cuts to the EU staffing budget; proposes that the Commission and the Member States set their priorities straight;

23.

Calls on the Commission to make systematic use of all available technological developments, such as remote sensing, to ensure full compliance with the EU Timber Regulation and thus be able to comprehensively examine the state of Europe’s forests;

24.

Urges the Commission, the Council and the Member States to take the necessary measures to establish and develop police cooperation involving the competent authorities of all Member States to prevent, detect and investigate criminal offences in forestry and the trade in timber resulting from such activities; underlines that the Commission, the Council and the Member States should systematically assess the effectiveness of police cooperation and improve it periodically;

25.

Calls on the Commission and the Council to carefully evaluate the potentially negative consequences that the promotion of forest biomass as an energy driver could have on EU forests, particularly within the framework of the negotiations for the ‘Fit for 55’ package and the revision of the Renewable Energy Directive (10) (RED III);

26.

Asks the Commission to promote the sharing of best practices between Member States in fighting the phenomenon of illegal logging and its consequences, including in green public procurement and transparency for consumers as regards the names of companies trading in illegally logged wood;

27.

Calls on the Commission to be vigilant as to the proper implementation of the EU Timber Regulation, the Habitats Directive, the Strategic Environmental Assessment Directive and the Conservation of Wild Birds Directive (11), as well as the Aarhus Regulation, since the implementation gap in EU environmental legislation can represent an enabling factor leading to environmental crime; notes that breaches of these may lead to environmental and ecological disasters such as soil degradation and erosion, landslides, floods, the extinction of unique wild species, deforestation and the disappearance of the last remaining primary and old-growth forests in the EU;

28.

Calls on the Commission to review the current legislative problems and to improve its controls in order to eliminate any legal loopholes that make it possible to use illegally harvested timber in the EU, as is currently the case with techniques such as mixing legally harvested timber and illegally harvested timber in order to certify the origin of such timber;

29.

Calls on the Commission to use its trade policy to curb illegal logging at international level; stresses that importing illegally harvested timber from non-EU countries distorts the European market and creates an unfair situation for European producers; recalls that the use of this illegal timber also harms those communities in which it is harvested and promotes the continuation of the illegal harvesting of the timber and all the crimes associated with it; welcomes the set of mandatory due diligence rules for companies that want to place certain commodities on the EU market proposed by the Commission in its proposal for a regulation on deforestation-free products;

30.

Stresses the importance of the implementation of the projects aimed at promoting close-to-nature forest management and environmental protection, restoration and conservation, while supporting communities dependant on forestry resources by developing short supply chains and ecotourism; suggests the development of democratic forest governance and projects in close cooperation with local authorities, which are working closely with stakeholders and local communities, who are the most impacted directly and indirectly by environmental changes and the negative socio-economic effects of large-scale timber production and trade;

31.

Invites the EU and the Member States to explore further possibilities of cooperation in the fight against and prevention of illegal logging; recommends that the Commission provide a cooperation platform for Member States to develop and further improve national digital forest monitoring tools, for reporting cases of illegal logging and to enable rapid and effective cross-border intervention against illegal logging;

32.

Calls on the Member States to assume their primary responsibility for protecting the environment, including forests, and to ensure the safety of forestry officials; recalls that corruption within public institutions remains an important factor leading to impunity for illegal logging and offences against environmental activists;

33.

Calls on the Member States to harmonise their rules on the control of illegally harvested timber as far as possible, in order to prevent illegal timber distribution routes from being exploited under the legislation of the Member States in which controls are lax;

34.

Calls on prosecutors, investigators, rangers and financial experts to join forces and pool expertise in order to swiftly and successfully detect, investigate and prosecute organised crime;

35.

Recalls that EU funds may be available for compensation for forest-environmental and climate services, improving the resilience and environmental value of forest ecosystems, forest restoration, conservation and protection, and compensation for Natura 2000 forest areas, including for small forestry owners;

36.

Suggests the introduction of regular surveillance (including security/police patrols and air surveillance) in forests and areas in which timber is transported, or where illegal logging or the transport of and trade in timber from such activities have been reported; stresses the need to raise police awareness of the crime of illegal logging and calls on the Member States to run special training for law enforcement officers to equip them with practical tools and provide them with the skills and knowledge they need to prevent, detect and prosecute illegal logging activity, as well as protect environmental activists, whistle-blowers and staff responsible for forest management; encourages Member States to cooperate to ensure the smart use of resources for preventing the irregular implementation of this measure;

37.

Recalls that illegal logging is often linked to other forms of crime such as illicit trafficking, corruption, fraud and money laundering, predominantly with a cross-border dimension; stresses the need, therefore, to consider the information on illegal logging essential for the investigation of other types of serious crime and to share this information with Europol so as to facilitate cross-border investigations;

38.

Stresses that the establishment of an EU Green Prosecutor, through the extension of the EPPO’s mandate, in accordance with Article 86(4) TFEU, is a way to improve the implementation and enforcement of EU environmental legislation and to combat serious environmental crimes with a cross-border dimension;

39.

Calls on the Commission to allocate funding to the fight against illegal logging;

40.

Highlights the importance of increasing the availability of transparent, high-quality data and takes due note of the aim of the new EU forest strategy of improving harmonised data collection in this regard; believes that building on existing structures, particularly the national forest inventories and the Forest Information System for Europe, is essential in order to improve the operational response of police forces in tackling aspects of forestry criminality; recognises the need for timely, frequent and comparable data across all Member States for both basic and applied forest-related variables; endorses, therefore, the proposal for an EU-wide Forest Observation, Reporting and Data Collection framework; calls on the Member States to collect data on inspection activities, the number of violations established and the types and size of the sanctions imposed;

41.

Calls on the Member States to strengthen public awareness about the fight against illegal logging and the reporting tools available, i.e. through targeted communication campaigns; invites Member States to include the notion of forest preservation in academic curricula for children, as part of natural heritage conservation;

42.

Stresses that environmental litigation requires law professionals to have specific knowledge and competences; suggests, therefore, that Member States strengthen the environmental component of university studies in the field of law;

43.

Highlights that the use of remote sensing technologies such as satellite imaging to complement the collection of field inventory data and inspections can help competent authorities at EU and national level to identify large areas of illegal logging activity with greater accuracy and speed; highlights the need to calibrate this data with data gathered via ground-based monitoring to ensure that the findings are accurate; calls on the Member States to make full use of the tools made available by the EU Satellite Centre to strengthen their capacities in countering illegal logging; notes that while forest logging can be detected through satellite imaging, it remains a challenge to distinguish between legal and illegal logging; stresses that the effectiveness of the satellite-based resources for curbing illegal logging depends on the ability of the authorities to use the information and coordinate it with other (ground-based) monitoring tools and databases; believes that satellite images can complement in-the-field inspections and field inventory data as a valuable asset for detecting illegal logging and can help to indirectly infer the existence of illegal logging through the presence of roads outside the permitted areas;

44.

Recalls the essential role that technological innovation plays in combating illegal logging and environmental crime in general; calls on the Commission to dedicate funding to technological support for Member States, which would enable national law enforcement officers to use the best tools;

45.

Stresses that a fact-finding mission to the areas affected by illegal logging would help in assessing the reality on the ground, the main factors leading to illegal logging and the effects on the local population, as well as identifying the way forward in specific cases;

46.

Calls on the Commission to ensure that the EU does not support initiatives and projects that would lead to illegal logging and deforestation or have other such damaging impacts on the environment;

47.

Instructs its President to forward this resolution to the Council, the Commission, and the governments and parliaments of the Member States.

(1) OJ L 295, 12.11.2010, p. 23.

(2) OJ L 206, 22.7.1992, p. 7.

(3) OJ L 197, 21.7.2001, p. 30.

(4) OJ L 264, 25.9.2006, p. 13.

(5) OJ L 356, 8.10.2021, p. 1.

(6) https://www.europol.europa.eu/crime-areas-and-statistics/crime-areas/environmental-crime

(7) The Briefing Note for the Competent Authorities (CA) implementing the EU Timber Regulation of June-September 2020 states: ‘Although the timber supplied to IKEA by VGSM was certified by the Forest Stewardship Council (FSC), the report states that over half of the wood harvested in Velyky Bychkiv from April to June 2018 did not comply with FSC standards and was in fact illegally felled’.

(8) European Commission, Report: Study on Certification and Verification Schemes in the Forest Sector and for Wood-based Products, July 2021.

(9) OJ L 328, 6.12.2008, p. 28.

(10) Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).

(11) Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds (OJ L 20, 26.1.2010, p. 7).

27.1.2023

Official Journal of the European Union

C 32/28

P9_TA(2022)0263

Implementation and delivery of the Sustainable Development Goals

European Parliament resolution of 23 June 2022 on the implementation and delivery of the Sustainable Development Goals (SDGs) (2022/2002(INI))

(2023/C 32/05)

The European Parliament,

—	having regard to the UN resolution entitled ‘Transforming our World — the 2030 Agenda for Sustainable Development’, adopted at the UN Sustainable Development Summit on 25 September 2015 in New York (the 2030 Agenda),

—	having regard to the Commission staff working document of 18 November 2020 entitled ‘Delivering on the UN’s Sustainable Development Goals — A comprehensive approach’ (SWD(2020)0400),

—	having regard to the UN Department of Economic and Social Affairs’ publication of 2022 entitled ‘SDG Good Practices — A compilation of success stories and lessons in SDG implementation — Second Edition’,

—	having regard to the 2019 UN Global Sustainable Development Report,

—	having regard to the joint communication of the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 17 February 2021 on strengthening the EU’s contribution to rules-based multilateralism (JOIN(2021)0003),

—	having regard to the joint statement by the Council and the representatives of the governments of the Member States meeting within the Council, Parliament and the Commission of 30 June 2017 on the New European Consensus on Development — ‘Our world, our dignity, our future’ (1),

—	having regard to the Commission staff working document of 28 January 2019 entitled ‘2019 EU report on Policy Coherence for Development’ (SWD(2019)0020),

—	having regard to the United Nations Framework Conventions on Climate Change (UNFCCC) and on Biological Diversity,

—	having regard to the Agreement adopted at the 21st Conference of the Parties to the UNFCCC (COP21) in Paris on 12 December 2015 (the Paris Agreement),

—	having regard to the submission on 6 March 2015 by Latvia and the Commission on behalf of the EU and its Member States to the UNFCCC of the intended nationally determined contribution of the EU and its Member States,

—	having regard to the submission on 17 December 2020 by Germany and the Commission on behalf of the EU and its Member States to the UNFCCC of the update of the nationally determined contribution of the EU and its Member States,

—	having regard to the Third International Conference on Financing for Development, held in Addis Ababa from 13 to 16 July 2015,

—	having regard to the joint statement by the Council and the representatives of the governments of the Member States meeting within the Council, Parliament and the Commission of 30 June 2017 on the New European Consensus on Development — ‘Our world, our dignity, our future’ (2),

—	having regard to the Commission work programmes of 2020 (COM(2020)0037), 2021 (COM(2020)0690) and 2022 (COM(2021)0645), and to their references to the SDGs,

—

having regard to the integration of the SDGs in the Better Regulation framework, including the Commission communication of 29 April 2021 entitled ‘Better regulation: Joining forces to make better laws’ (COM(2021)0219), the Commission staff working document of 3 November 2021 entitled ‘Better Regulation Guidelines’ (SWD(2021)0305), and the toolbox of November 2021 thereof, including the new tool #19 on the SDGs,

—	having regard to the United Nations Development Programme 2022 Special Report entitled ‘New threats to human security in the Anthropocene Demanding greater solidarity’,

—	having regard to the Intergovernmental Panel on Climate Change (IPCC) Special Report on the Ocean and Cryosphere in a Changing Climate of 2019,

—	having regard to the IPCC sixth assessment report of 28 February 2022 entitled ‘Climate Change 2022: Impacts, Adaptation and Vulnerability’,

—

having regard to Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument — Global Europe, amending and repealing Decision No 466/2014/EU of the European Parliament and of the Council and repealing Regulation (EU) 2017/1601 of the European Parliament and of the Council and Council Regulation (EC, Euratom) No 480/2009 (3),

—	having regard to the Sendai Framework for Disaster Risk Reduction 2015-2030, adopted by UN member states at the Third UN World Conference on Disaster Risk Reduction on 18 March 2015,

—	having regard to its resolution of 24 March 2022 on the need for an urgent EU action plan to ensure food security inside and outside the EU in light of the Russian invasion of Ukraine (4),

—	having regard to the UN Secretary-General’s report entitled ‘Our Common Agenda’, presented to the UN General Assembly, and given a mandate by UN General Assembly Resolution 76/6 of 15 November 2021,

—	having regard to its resolution of 21 January 2021 on the gender perspective in the COVID-19 crisis and post-crisis period (5),

—	having regard to its resolution of 14 March 2019 on the annual strategic report on the implementation and delivery of the Sustainable Development Goals (SDGs) (6),

—	having regard to its resolution of 25 November 2014 on the EU and the global development framework after 2015 (7),

—	having regard to the Council conclusions of 10 December 2019 entitled ‘Building a sustainable Europe by 2030 — Progress thus far and next steps’,

—	having regard to the Council conclusions of 18 October 2018,

—	having regard to the Council conclusions of 20 June 2017 entitled ‘A sustainable European future: The EU response to the 2030 Agenda for Sustainable Development’,

—	having regard to its resolution of 6 July 2017 on EU action for sustainability (8),

—	having regard to its resolution of 9 June 2021 on the EU Biodiversity Strategy for 2030: Bringing nature back into our lives (9),

—	having regard to the Council conclusions of 9 April 2019 on ‘Towards an ever more sustainable Union by 2030’,

—	having regard to its resolution of 12 May 2016 on the follow-up to and review of the 2030 Agenda (10),

—	having regard to the Commission report of 15 May 2019 entitled ‘on the evaluation of the 7th Environment Action Programme’ (COM(2019)0233),

—	having regard to the Commission proposal for a decision of the European Parliament and of the Council on a General Union Environment Action Programme to 2030 (COM(2020)0652),

—	having regard to the European Environment Agency report of 2019 entitled ‘The European environment — state and outlook 2020: Knowledge for transition to a sustainable Europe’,

—	having regard to Eurostat’s 2021 monitoring report on progress towards the SDGs in an EU context,

—	having regard to its resolution of 11 March 2021 on the European Semester for economic policy coordination: Annual Sustainable Growth Strategy 2021 (11),

—	having regard to the opinion of the European Economic and Social Committee of 19 September 2018 entitled ‘Indicators better suited to evaluate the SDGs — the civil society contribution’ (12),

—	having regard to the 2021 Sustainable Development Report of 14 June 2021, entitled ‘The Decade of Action for the Sustainable Development Goals’,

—	having regard to the Council conclusions of 22 June 2021 entitled ‘A comprehensive approach to accelerate the implementation of the UN 2030 Agenda for sustainable development — Building back better from the COVID-19 crisis’,

—	having regard to special report 26/2020 of the European Court of Auditors entitled ‘Marine environment: EU protection is wide but not deep’,

—

having regard to the Commission reflection paper of 30 January 2019 entitled ‘Towards a Sustainable Europe by 2030’ (COM(2019)0022), in particular Annex III entitled ‘Summary of the contribution of the SDG Multi-Stakeholder Platform to the Reflection Paper “Towards a sustainable Europe by 2030”’ thereof,

—	having regard to Rule 54 of its Rules of Procedure,

—	having regard to the joint deliberations of the Committee on Development and the Committee on the Environment, Public Health and Food Safety under Rule 58 of the Rules of Procedure,

—	having regard to the letter from the Committee on Culture and Education,

—	having regard to the report of the Committee on Development and the Committee on the Environment, Public Health and Food Safety (A9-0174/2022),

whereas at European level and internationally, there will be no climate justice without environmentally, socially and economically sustainable and inclusive development; whereas achieving the SDGs is therefore an essential prerequisite to achieving a just and fair transition under the Paris Agreement and the European Green Deal;

whereas the impact of the COVID-19 pandemic is not yet fully known, but has already led to a significant degree of SDG backsliding, especially in the countries of the Global South that have weak healthcare systems and where vaccination rates remain very low, and has led to further inequalities and poverty; whereas according to the UN’s ‘2021 Financing for Sustainable Development Report’, the COVID-19 pandemic could lead to a ‘lost decade’ for sustainable development; whereas the least developed countries (LDCs) have been hit particularly hard because of their vulnerability to external shocks; whereas a healthy environment is a fundamental pillar for sustainable development; whereas the Human Development Index was estimated to suffer a ‘steep and unprecedented decline’ in 2020 for the first time in the 30 years since the measure has been computed; whereas the rate of extreme poverty rose in 2020 for the first time in 20 years; whereas, on the other hand, the aftermath of the COVID-19 pandemic presents a significant opportunity to reshape our societies to fulfil the aspirations of the SDGs; whereas prior to the COVID-19 pandemic, there was an estimated annual global financing gap of USD 2,5 trillion between funding and what was required to achieve the SDGs; whereas according to one estimate, as of early 2021, the economic uncertainty and the pandemic-related recovery spending shortfall in developing countries increased this gap by 50 % to USD 3,7 trillion; whereas Parliament’s new Special Committee on the COVID-19 pandemic: lessons learned and recommendations for the future could investigate the pandemic’s impact on the SDGs;

whereas according to the UN Global Sustainable Development Report issued in 2019 and the UN Sustainable Development Solutions Network (SDSN) 2020 SDG Index, no country, including any European country, is on track to achieve all of the SDGs by 2030; whereas according to the 2021 European Sustainable Development Report, for the first time since the adoption of the SDGs, the EU’s average SDG Index score did not increase in 2020; whereas Europe is on track to meet only 26 — or 15 % — of the 169 targets, according the UN Economic Commission for Europe; whereas according to the SDSN 2021 SDG Index, OECD countries are closest to achieving the 2030 Agenda targets, yet generate the largest negative spillovers, which undermines the ability of other countries to achieve their targets;

whereas the new geopolitical and humanitarian realities imposed by Russia’s illegal invasion of and the war in Ukraine are having a huge impact on the global achievement of the SDGs, especially as regards the fight against inequalities, poverty and hunger, and may impede the timeline for their realisation by 2030; whereas a renewed political impetus to achieve the SDGs is urgently needed in order to account for the impact of COVID-19 and the global consequences of Russia’s invasion of Ukraine; whereas there is a need, in this context, to finance renewable sources of energy in order to ensure alignment with the objectives of the 2030 Agenda and avoid future global financial pressure in the energy sector;

whereas the EU is obliged to incorporate development cooperation objectives into all internal or external policies that are likely to affect developing countries, as set out in Article 208 of the Treaty on the Functioning of the European Union; whereas achieving alignment across all EU policies is crucial to achieving the SDGs worldwide; whereas policy coherence for sustainable development is an approach to integrate the various dimensions of sustainable development holistically at all stages of policymaking and is a key element of the EU’s effort to implement the 2030 Agenda; whereas the Commission, in its staff working document of 18 November 2021 entitled ‘Delivering on the UN’s Sustainable Development Goals — A comprehensive approach’, committed to taking a ‘whole-of-government’ approach to SDG implementation, coordinated by President von der Leyen; whereas the transition to a wellbeing economy that gives back to the planet more than it takes, embedded in the EU’s eighth environment action programme and enshrined in its 2030 and 2050 priority objectives, will require the EU to develop a more holistic approach to policymaking;

F.	whereas Parliament, the Council and the European Council have, on repeated occasions since the adoption of the 2030 Agenda for Sustainable Development in 2015, called on the Commission to adopt an overarching strategy to fully implement the SDGs;

G.	whereas there is a strong interdependence between health crises, environmental crises and climate crises; whereas such crises will increase in the coming years, in particular as a result of climate change and biodiversity loss;

H.	whereas the ability to retrieve data to fill in the SDG indicators is limited in several developing countries, which can seriously hinder the assessment of progress;

I.	whereas the gap between the richest and poorest people and countries is continuously rising; whereas reducing inequalities (SDG 10) has strategic importance and should be at the core of the common efforts to achieve the 2030 Agenda;

J.	whereas the SDGs cover all of the major issues facing humanity and are not solely linked to development policies, but also concern wider public policies at the European level;

K.	whereas in committing to the realisation of the 2030 Agenda for Sustainable Development, the EU recognised that the dignity of the individual is fundamental and that the agenda’s goals and targets should be met for all nations, people and segments of society;

L.	whereas the European Parliament and national parliaments also have a responsibility to ensure that sustainable development is mainstreamed within their procedures, in order to break down silos;

M.	whereas rising inequalities, climate change, biodiversity loss and increasing waste production are items addressed by the SDGs; whereas all of those are detrimental to human life conditions;

whereas the EU high-level multi-stakeholder platform on the implementation of the SDGs, which ran from 2017 to 2019, was set up to support and advise the Commission and provided a forum for exchanging experiences and best practices across sectors and at local, regional, national and EU level by bringing together stakeholders from civil society, non-governmental organisations and the private and corporate sectors;

whereas considering all the above, a European governance strategy integrating the SDGs in a transversal approach would allow greater alignment between and efficiency in public policies; whereas for example SDG 14 (life below water), which calls for the conservation and sustainable use of the oceans, seas and marine resources for sustainable development, should be implemented as part of an integrated maritime policy;

P.	whereas global SDG progress is poorly understood due to insufficient monitoring capacities, in particular, in developing countries;

whereas the COVID-19 pandemic has greatly exacerbated the existing debt problems in developing countries, which has further endangered their efforts to mobilise sufficient resources to achieve the SDGs; whereas accordingly, additional efforts in terms of debt relief are urgently needed to avoid widespread defaults in developing countries and to facilitate investments in recovery and the SDGs;

R.	whereas according to the IPCC’s sixth report of 2022, climate change has reduced food and water security, which has hindered efforts to meet the SDGs;

S.	whereas the SDGs have a subnational and local dimension;

T.	whereas oceans are huge reservoirs of biodiversity and the primary regulator of the global climate; whereas their conservation is critical to sustainable development, contributes to poverty eradication and provides sustainable livelihoods and food security for billions of people;

U.	whereas the SDGs are universal and indivisible; whereas they are in common for and applicable to all actors, including the public and private sectors, civil society and social partners;

V.	whereas the 17 SDGs with their respective 169 targets and accompanying indicators represent the only globally shared and politically agreed upon framework for evidence-based policies;

Introduction

Reaffirms its commitment to the 2030 Agenda, its 17 SDGs and the pledge to leave no one and no place behind; stresses that, in the light of current and future pandemics and the aftermath of the war in Ukraine, the 2030 Agenda provides a unique pathway to a wellbeing economy to build back better a more equitable, just, inclusive, sustainable and resilient world; acknowledges that the SDGs are a common concern of humankind; encourages the Commission to take action to address climate change and to respect and promote human rights, the right to health, local communities, refugees and migrants, children, minority groups, people in vulnerable situations, the right to development, gender equality, the empowerment of women and intergenerational equity;

Recalls that there are fewer than eight years left to meet the 2030 Agenda targets for sustainable development and that the 2020s have been declared to be the UN Decade of Action on Sustainable Development;

Underlines that delivering on the 2030 Agenda will contribute to achieving a fair and inclusive green and digital transition, in line with the EU’s ambitions and actions outlined in the European Green Deal and the 2030 Digital Compass;

Governance

Welcomes the commitment by the President of the Commission to pursue a ‘whole-of-government’ approach towards the EU’s SDG implementation and to mainstream the SDGs across each Commissioner’s portfolio; calls therefore on the Commission and its President to further demonstrate how the ‘whole-of-government’ approach to the SDGs is being implemented at EU level; asserts, however, that such an approach can only be effective with leadership at the highest level and with a concrete plan to ensure comprehensive action across the Commission; regrets that, since 2019, there has been no single Commissioner responsible for the internal and external implementation and coordination of the SDGs, which has resulted in a fragmented approach, contrary to the principle of policy coherence for sustainable development; proposes, additionally, that the Commission nominate a Special Envoy for the SDGs, answerable to the Commissioner responsible, to promote consistent action on the SDGs globally through the EU’s external actions;

Reiterates that to achieve the SDGs, the 2030 Agenda requires a strong level of societal legitimacy and a genuine political reset, which can only be achieved if the SDGs are seen as an opportunity for citizens; emphasises the importance of the media in this regard; recalls that the importance of structured stakeholder engagement and multi-stakeholder partnerships are at the heart of the SDGs; deeply regrets that the mandate of the multi-stakeholder platform was not renewed in 2019 and calls for its urgent reinstatement or the set-up of a new mechanism for structured engagement, with balanced, diversified and democratic representation covering civil society organisations, community-based organisations, the private sector (including small and medium-sized enterprises (SMEs) and producer-led organisations), trade unions, cooperatives, academia and research institutions, regional and local governments and marginalised groups; underlines the key role of each of these stakeholders, as they closely monitor SDG implementation by governments and contribute directly to sustainable development; calls for stronger engagement and consultation with these groups; stresses that the multi-stakeholder platform should systematically liaise with the Working Party on the 2030 Agenda for Sustainable Development to ensure genuine Member State participation;

Recognises that a lack of accountability, transparency and good governance have a strong negative impact on the implementation of the 2030 Agenda in both developed and developing countries and stresses the need to promote anti-corruption and integrity to accelerate the implementation of the SDGs and to consistently monitor progress;

Stresses the fact that efforts to mainstream the SDGs across EU internal and external policies should go beyond a mapping exercise; recalls that many EU internal policies not only contribute to the implementation of the SDGs, but also have a very high ecological, social and economic spillover impact on developing countries and vulnerable groups and populations; insists, therefore, that in order to further progress at the global level, the EU’s internal and external action must be further coordinated; highlights the importance of an integrated approach, which would require systemic solutions; acknowledges the progress made in capacity building, but stresses the need to enhance the alignment and coordination of capacity-building activities across the EU;

Strongly encourages greater policy coherence for development in the landmark ‘Fit for 55’ legislative package (13), the common agricultural policy, the common fisheries policy, the common commercial policy and the Commission’s work in general; regrets that the lack of an SDG implementation strategy makes it more challenging to achieve policy coherence, due to the lack of clear, measurable and time-bound EU-wide targets to report on for all SDGs; calls for sustainable development to be prioritised and mainstreamed throughout the policy cycle (design, implementation and evaluation), and for all its dimensions to be systematically considered in impact assessments and disclosure and external reporting requirements; proposes an internal audit by the Commission to ensure alignment between the EU’s internal and external policies; stresses that the SDGs should form the backbone of European public policies;

Calls for the Commission to adopt a new high-level EU 2030 Agenda implementation strategy, as requested by the European Council in October 2018, building on EU resolutions and policy directives aimed at achieving the SDGs, given that there are fewer than eight years left to achieve the 2030 Agenda and, hence, urgent implementation is required, in line with the Decade of Action to deliver the Global Goals; believes that such a strategy should define, at a minimum:

(a)	a new governance framework, led by a single high-level Commissioner who is accountable for the implementation of the SDGs across all portfolios and who will systematically consult the new multi-stakeholder platform;

(b)	a revised set of concrete measurable, EU-wide, time-bound targets to bolster the EU’s ambition and concrete measures for achieving them;

(c)	an updated monitoring system and indicators, taking into account the EU’s internal and external impact on global SDG progress;

(d)	a single financial plan to achieve the EU’s SDG objectives, linked to the above targets;

(e)	a plan for the EU’s SDG diplomacy and international cooperation, led by a Special Envoy for the SDGs, to ensure fair burden sharing and a level playing field;

invites the Presidents of Parliament, the Commission and the Council to accompany this strategy with an interinstitutional statement renewing the EU’s commitment to the 2030 Agenda; stresses that this strategy should be published by June 2023 at the latest, in order for the EU to play a leading role in reinvigorating the 2030 Agenda at the SDG Summit in September 2023; stresses that the strategy should be regularly reviewed and accompanied by corrective measures in areas where progress is deemed to be stalled or insufficient;

10.

Underlines that coordination within and between the EU institutions is a prerequisite to increasing the effectiveness of the EU’s actions; calls for the creation of an interinstitutional task force to facilitate structured dialogue on the SDGs, consisting of representatives from Parliament, the Commission and the Council; considers that the task force, which should convene quarterly, should assume the responsibility of coordinating the EU’s efforts to deliver the SDGs internally and globally; trusts that the Commission will regularly update the co-legislators on the policy developments and measures undertaken for the implementation of the SDGs;

11.

Welcomes the integration of the SDGs into the 2021 revision of the Better Regulation toolbox, including the communication, the guidelines and the toolbox itself, in particular the dedicated tool on the implementation of the SDGs and the indication of relevant SDG indicators for the various types of impacts;

12.

Is of the view that the adoption of the new comprehensive implementation strategy should be based on a bottom-up approach, preceded by a mapping of the SDGs and a broad, structured, inclusive and meaningful public participatory consultation process, accompanied by a plan for significant outreach and engagement with citizens, including civil society, relevant industry representatives and, more broadly, the private sector, trade unions, academia, regional and local governments, minorities and vulnerable groups;

13.

Calls on the Commission to anticipate the next UN Agenda after 2030 with a roadmap of targets and measures to plan the next sustainable developments goals;

Monitoring

14.

Calls for Parliament to appoint a standing rapporteur on the implementation of the SDGs to work with the Bureau and across committees, as well as with the multi-stakeholder platform; further proposes that each committee should appoint a Member responsible for the fulfilment of the SDGs and that these responsible Members should meet between them and with the standing rapporteur on a quarterly basis to ensure alignment;

15.

Highlights that the European Parliament and national parliaments also have a role to play in ensuring that sustainable development is mainstreamed in procedures and that silos are broken down; emphasises the importance of Parliament’s participation and contribution to the annual High-level Political Forum on Sustainable Development (HLPF), and of the role that an annual SDG implementation report could play in this regard;

16.

Asserts that better understanding the EU’s true impact on SDG progress in the EU and globally can only be achieved through addressing existing data gaps, including the lack of disaggregated data and weaknesses in information systems, by strengthening the use of existing statistical data from a variety of sources and embracing frontier data and artificial intelligence, in line with data protection regulations and rules; believes it is crucial to monitor progress on all 169 sub-goal targets; calls for the EU to significantly step up technical cooperation with developing countries to address the global data gap created by insufficient monitoring capacities and inconsistent methodologies;

17.

Welcomes the annual Eurostat monitoring reports on the SDGs; calls for an annual review of the Eurostat SDG indicator set with the systematic participation of regional and local governments and civil society organisations, in line with the 2021 review; emphasises that sustainable development is inherently transboundary and trans-sectoral; affirms its willingness to address the negative spillover effects that the implementation of the SDGs has on other regions; welcomes the work that Eurostat has initiated to this end and the first attempt to partially quantify such spillover effects, but stresses that this methodology needs to be further developed to sufficiently account for the EU’s global footprint (14); calls for the indicator set for each goal to be extended beyond its maximum limit of six to account for EU external action, the European supply and value chains and the spillover consequences of EU consumption;

18.

Stresses the need to implement the Council conclusions of 24 October 2019 on the economy of wellbeing and calls on the Commission, in this regard, to deliver without delay the ‘Beyond GDP’ dashboard and indicator set, as laid down in the EU’s eighth environment action programme, which puts people and their wellbeing at the centre of policy design; calls on the Commission to consider implementing alternative measures of progress into their monitoring of SDG implementation, such as the Social Progress Index;

19.

Stresses that a minimum level of data and statistical disaggregation, aligned to the global SDG monitoring framework and in relation to each SDG in the EU, should be established, covering, where appropriate, geographic location, gender, sexual orientation, income, educational level, age, race, ethnicity, migratory status, impairment and other characteristics, and should take into account the principles of the human rights-based approach to data; welcomes the Commission’s initiative to establish markers to measure inequality in that regard; invites Eurostat to undertake all the preparatory work required to include this level of disaggregation in the upcoming monitoring reports, in line with the guidelines and priorities set by the Inter-agency and Expert Group on SDG Indicators and adapted to the EU context;

20.

Recalls that voluntary national reviews are the key accountability tool in the 2030 Agenda; recalls the importance of national reviews as a way to identify tensions and trade-offs between SDGs and to generate an iterative process of adjusting policies in the light of progress towards targets; encourages the EU Member States to participate in the voluntary national reviews and to meaningfully take into consideration and implement the recommendations made on this occasion; calls on the Commission to present an EU voluntary review at the 2023 HLPF and every year thereafter, and to push for further standardisation of national voluntary reviews, with a focus on each of the EU’s exclusive and shared competences, but also containing an assessment of the aggregate positive and negative impact of the EU and its Member States on global SDG progress; considers that such a review should be based on a revised SDG indicator set and should cover internal priorities, diplomacy, and international action to restore and protect the global commons and address international spillovers of EU internal policies, as well as the positive and negative aspects of EU action;

21.

Recognises the importance of voluntary local reviews and voluntary subnational reviews for the implementation of each SDG; calls on the Commission to consult and inform Parliament as to the EU voluntary review before the 2023 SDG Summit; stresses the need to develop a regular review of the implementation of the SDGs at regional and local level in the EU; welcomes, in this regard, the work of the UN Human Settlements Programme; encourages further development of the UN initiative ‘Localising the SDGs’ to accelerate and scale up efforts to achieve the SDGs by 2030; praises the work of the Joint Research Centre in relation to the localisation of the 2030 Agenda and the European Handbook for SDG Voluntary Local Reviews, which offers useful official and experimental indicators to set up an effective SDG local monitoring system specifically targeted at European cities; welcomes the pilot project ‘Monitoring the SDGs in the EU regions — Filling the data gaps’, initiated by the European Parliament, that will define and test a harmonised set of indicators for EU regions to monitor the achievement of the SDGs and pave the way for a systematic review process in the EU regions;

22.

Calls on the Commission to take stock of the progress made and of the findings of the Eurostat annual SDGs monitoring report every year during the State of the Union address; expects the annual Commission work programme to include the SDGs as an annual priority, including concrete proposals for legislative or non-legislative initiatives intended to contribute to their achievement and for the SDGs to be fully mainstreamed throughout the Commission’s annual work programme;

23.

Recognises the importance of private sector reporting for SDG implementation; highlights that corporate sustainability reporting and due diligence, when subject to relevant audits, can be an important framework to encourage greater accountability in the private sector regarding the social and environmental impact of companies and their contribution to the achievement of the SDGs; encourages all actors across society, including private entities, to engage in regular voluntary reporting on SDG implementation;

24.

Calls on the Commission to establish an online best practices sharing forum for local-level initiatives to achieve the SDGs, with the forum organised by SDG; proposes that the existence of this forum be promoted as part of EU external and internal action on SDG achievement;

Budget and financing

25.

Underlines that the EU budget, coupled with the NextGenerationEU recovery package, is a pivotal tool for implementing the SDGs, due to their combined size of EUR 1,8 trillion, long-term reach and multinational dimension (15);

26.

Notes with concern that public indebtedness in the Global South was already at unprecedented levels before COVID-19, which resulted in an increasing portion of public budgets being used to service external debts, thereby affecting the ability of governments to adequately fund and deliver basic public services; is alarmed that the current crisis has exacerbated these pre-existing debt vulnerabilities; calls for the creation of a multilateral debt handling mechanism, under UN auspices, to address the debt crisis in developing countries and the financing requirements of the 2030 Agenda;

27.

Underlines the importance of measuring the EU’s contribution to the SDGs in a precise and comprehensive manner, given that this is an essential condition for achieving policy coherence for sustainable development; welcomes the Commission’s official development assistance (ODA) expenditure targets in relation to specific SDG goals and its efforts to track EU budget expenditure on the climate, biodiversity, clean air, migration and gender equality (16); welcomes that, in a range of policies, systems are being put in place for SDG reporting, including in development cooperation; regrets, however, that, despite the Commission’s November 2020 commitment, insufficient progress has been made to track SDGs-related resources and expenditure in its entirety — apart from the external action area, as outlined in a 2019 European Court of Auditors review — and to track inconsistencies among expenditures, both of which hinder the EU’s and third countries” ability to achieve the SDGs, notably in the area of agriculture; insists, therefore, on the need for comprehensive SDG expenditure tracking using dedicated methodologies, for example, with reference to inequalities (SDG 10) and their strategic importance for the implementation of all SDGs; reiterates that this will involve going beyond the existing mapping exercise that takes place in the annual management and performance report for the EU budget; notes with concern that over the past few years, the level of ODA concessionality has gradually decreased for developing countries, in general, and for LDCs, in particular, and calls for the EU to reach its target of at least 20 % of ODA allocated to human development as an essential tool to achieve the SDGs; stresses the need for donors to prioritise grant-based financing, especially to LDCs, in view of their unsustainable debt burdens; calls on the Commission to boost the current financing tools in order to achieve net zero emissions in European operations and supply chains by 2030;

28.

Stresses the need to finance trainings for capacity building for SMEs in order to learn how to implement the SDGs in their daily activities;

29.

Welcomes efforts made to integrate the SDGs into the European Semester in a comprehensive way, including through the Annual Sustainable Growth Surveys and the integration of the annual Eurostat monitoring on SDGs as part of the spring package of the European Semester; reiterates its support for the integration of biodiversity indicators into the European Semester; urges the Member States to raise the ambition level of their national responses to the implementation of the 2030 Agenda; welcomes the centrality of the SDGs in the autumn package, particularly the recommendation that Member States pursue a “beyond GDP” strategy to fully embed the SDGs in their national responses; calls on the Commission to continue the reform of the European Semester to balance economic, social and environmental priorities, so that it drives a long-term social, environmental and economic transformation and improves the integration of the 2030 Agenda, the European Pillar of Social Rights and the European Green Deal at all levels, fully involving local and regional authorities and complementing reforms and investments in the Member States; considers that such a reform should ensure that European SDG policy coordination does not lead to a policy process parallel to the European Semester, but instead consists of an integrated and coherent approach based on a new sustainable development pact; expects the Semester process to enhance the capacities of the Member States in monitoring progress on SDG implementation;

30.

Supports the European Green Deal; calls for more understanding of the synergistic role of the SDGs in tackling climate change and highlights, in that context, the utility of the SDGs, in particular SDG 13, and the opportunity to work on trade-offs and policy coherence within the SDG framework;

31.

Requests comprehensive mapping of the financial envelopes of EU policies, programmes and funds, which have been reinforced by the additional NextGenerationEU funds, to create a greener, more digital and more resilient Europe, including mapping whether investments and structural reforms pursued under the Recovery and Resilience Facility align with and further progress the objectives of the 2030 Agenda; calls for the climate-tracking methodology and the “do no significant harm” principle in the national recovery and resilience plans, as well as the social and demographic priorities set by the SDGs and the European Pillar of Social Rights, to be fully implemented;

32.

Underlines that public and private financing must be aligned with the SDGs; urges the Commission to embed the 2030 Agenda in economic and financial policies and legislation; calls for the EU and its Member States, in a context where ODA remains a scarce resource, to focus blending operations in those areas where they can add value to the local economy; urges the Commission and the Member States to more broadly prioritise partnerships with LDC domestic enterprises that pursue sustainable and inclusive business models;

33.

Highlights the importance of the public and private sector working together to promote and finance sustainable development; stresses the necessity of financial institutions defining and adopting strategies and targets to align financial portfolios with the SDGs and regularly report on progress; calls for in-depth discussions and engagement with the private sector to encourage private financing and to enhance the creation of annual SDG(s) work guidelines for micro enterprises and SMEs, academia and civil society organisations; calls for the EU and its Member States, notably due to debt sustainability concerns, to adopt a prudent approach to blended finance and to ensure that all finance mobilised through blending meets development effectiveness, sustainability and the OECD Development Assistance Committee’s blended finance principles;

34.

Notes that the EU still has no designated plan to finance the SDGs; exhorts the Commission to urgently come up with such a plan, bearing in mind the post-COVID-19 estimated annual SDG financing gap of USD 3,7 trillion (17); underlines that the absence of such a plan, including clearly defined, quantifiable targets, prohibits comprehensive SDG expenditure tracking under the EU budget;

35.

Calls for the EU to fulfil the SDG pledges to invest in education and training of refugees and migrants to ensure that they are able to reach their potential within the communities and economies of their host nations;

36.

Takes note of the changes to the European financial architecture for development (EFAD), as outlined in the Council conclusions of 14 June 2021; calls on the Commission to put the implementation of the 2030 Agenda at the heart of the new EFAD in order to make it more impactful, efficient, coordinated and inclusive; underlines the potential of a fully functional EFAD for filling the global SDG financing gap; calls for greater cooperation and alignment between the European Investment Bank, the European Bank for Reconstruction and Development, national development banks and other small and medium-sized financial actors, with a particular focus on investment projects below the value of EUR 5 million, to achieve greater SDG impact; calls on the Commission to develop a common framework and guidance on holistic sustainability proofing of EU funding, following the Team Europe approach to ensure both effectiveness and efficiency in European development policies; calls for capitalising on the Team Europe approach to ensure close coordination between the EU and its Member States to achieve the 2030 Agenda; calls for the EU to take the lead in mobilising adequate financial resources from developed countries to support SDG transformations and the urgent need for climate adaptation in the most vulnerable countries; calls on the Commission to ensure that the new EFAD pursues the goal of restoring the Multilateral System of Official Finance (MSOF), in order to put an end to the unsustainable lending of some non-MSOF countries;

37.

Stresses the urgency of increasing ambition and action in relation to mitigation, adaptation and finance in this critical decade to address gaps between Member States on environmental issues;

38.

Stresses the importance of continuing efforts to achieve the SDGs and reiterates that, even in times of budgetary restrictions, education remains a fundamental right and an essential investment to enable the achievement of all SDGs and underlines the important role of the EU through its humanitarian assistance and stronger partnerships with different parts of the world, including Africa;

39.

Underlines the key role that education, culture, sports and their respective EU programmes play in achieving the SDGs and calls for the reinforcement of their international dimension while acknowledging the power of people-to-people diplomacy;

40.

Stresses the importance of SDG 4.1, which aims for a full, quality 12-year primary and secondary education cycle, provided free of charge for all; recalls that current levels of government spending in low- and lower-middle-income countries fall short of the levels required to achieve the SDGs; recalls that external financing is key to support the education opportunities of the world’s poorest; calls for the EU and its Member States to step up development assistance to deliver the objective of universal access to education through EU budget support, which has proven its efficiency in the field of education;

41.

Encourages world leaders to consider connectivity and access to digital infrastructure, such as access to an affordable and quality network, as a right derived from the fundamental right to education;

42.

Calls on the Commission to coordinate and support Member States with country-specific recommendations and the exchange of best practices to improve the quality and inclusivity of their educational systems and close gender and socio-economic gaps in the acquisition of basic skills and the uptake of science, technology, art, engineering and mathematics in line with the vision of the European Education Area, the green and digital transitions of the EU and SDG 4;

43.

Calls on the Member States to make full use of GreenComp, the European sustainability competence framework, to develop a systematic approach towards the development of a sustainability mindset across ages and educational levels that combines relevance to local, regional and national realities with a consistent approach within the European Education Area; reiterates its call to Member States to complete the European Education Area by 2025, as an essential intermediate step towards reaching the targets set under SDG 4;

44.

Encourages networking between the non-formal and formal educational sectors to create professional learning communities that support teachers as they innovate pedagogical practices, foster multiple literacies, facilitate students’ ownership and nurture their emotional intelligence and resilience in the face of fears and uncertainties; draws attention to the experience of grassroots sports and cultural associations in this regard;

45.

Insists that educational authorities invest to improve the quality of vocational education and training with state-of-the-art infrastructure, digitalisation processes and links to the knowledge triangle, which would align the sector with environmental and social sustainability goals and position it to provide alternative pathways for skills development, which would contribute to the implementation of the SDGs;

46.

Reminds educators of the essential role of early childhood education in instilling attitudes and values in young children that are conducive to the development of sustainability mindsets and engaging their families in considering ways in which they too can contribute towards sustainability, both as individuals and as a community;

47.

Encourages youth entrepreneurship as a mechanism to achieve the goals of sustainable development within the EU and beyond with European tools such as Erasmus for Young Entrepreneurs and the development education and awareness raising programme, given the potential to improve employment rates, secure decent livelihoods for vulnerable groups and develop innovative solutions;

48.

Regrets that three of the four 2020 SDG 14 (life below water) targets have not been met by the EU; regrets furthermore that in 2020, the European Court of Auditors found that, while a framework was in place to protect the marine environment, the EU’s actions had not restored seas to good environmental status, nor fishing to sustainable levels in all seas; calls on the Commission to implement the findings and recommendations of this report in its upcoming action plan to conserve fisheries resources and protect marine ecosystems, as well as in upcoming actions under the biodiversity strategy;

49.

Recalls that the climate and biodiversity crises are intertwined and need to be addressed coherently and in tandem; emphasises that legally binding nature restoration targets are urgently needed to address the drastic decline of biodiversity in the EU and to achieve SDGs 14 and 15 to help mitigate the climate crisis and build resilience; regrets, in this regard, the delay of the proposal for an EU nature restoration law and calls for its swift publication;

50.

Underlines the importance of SDG 17 (partnerships for the goals); notes, in the framework of global partnerships and capacity building, the innovative role of open source initiatives, such as the Inner Development Goals initiative, that aim to educate, inspire and empower people to be a positive force for change in society, thereby accelerating progress towards achieving the SDGs;

Multilateral cooperation

51.

Insists that renewed global political engagement and intensified multilateral cooperation will be necessary in order for the EU and its partners to make meaningful progress in the coming eight years; calls for action-oriented commitments towards achieving the SDGs by the 2023 SDG Summit, which will mark the mid-point of the 2030 Agenda’s implementation period; recalls that, as the world’s most successful integration project, with a track record of successfully championing multilateralism, and as a global standard-setter, the EU is uniquely placed to accelerate progress on SDG 17 (partnerships for the goals); calls, therefore, for the EU to assume a leadership role at the 2022 HLPF and the 2023 SDG Summit in defining this political reset; suggests that the President of the Commission be actively involved in each HLPF;

52.

Is alarmed at the fact that the loss of biodiversity and ecosystem services will undermine progress in approximately 80 % of the assessed targets for the SDGs; recalls that ecological restoration is critical for the implementation of the ‘One Health’ approach; calls for the EU to address the root causes of biodiversity loss and to mainstream obligations on conservation, restoration and the sustainable use of resources into broader development policies;

53.

Underlines that international law has evolved to embrace new concepts, such as ‘the common heritage of humanity’, ‘sustainable development’ and ‘future generations’, but stresses that there is no permanent international mechanism to monitor and address environmental damage and destruction that alters the global commons or ecosystem services;

54.

Stresses the fact that Europe faces its greatest SDG challenges in the areas of sustainable food systems, affordable and clean energy, agriculture, the climate and biodiversity (SDGs 2, 12, 13, 14 and 15); calls on the Commission to develop a robust comparative analysis of SDG 6 (clean water and sanitation) and SDG 14 (life below water), especially in view of the UN Ocean Conference in Lisbon in June 2022 and the HLPF in July 2022, as trends cannot be calculated due to insufficient comparable data over the past five years; calls on the Commission to emphasise the need for sustainable production and consumption, especially with regard to consumers’ understanding of how their consumption behaviour impacts the SDGs; stresses that best practice sharing with partner countries can provide the EU and its Member States with significant knowledge as regards individual initiatives and actions that can be taken to achieve ‘Fit for 55’ goals, and that the EU can also share its experience and best practices with partner countries; believes that, due to Russia’s invasion of Ukraine and its impact on, inter alia, the food sector, progress on some of the SDGs, notably 1, 2 and 10 may not only slow, but be reversed, both within the EU and globally; is especially concerned about rising food prices, their impact on LDCs and the resulting increase in poverty, food insecurity, malnutrition and hunger;

55.

Recalls that climate change will increasingly put pressure on food production and access, especially in vulnerable regions, undermining food security and nutrition; highlights the conclusions of the IPCC 2022 report, according to which global warming will progressively weaken soil health and ecosystem services, which will undermine food productivity in many regions on land and in the oceans; urges the EU and its Member States to remain fully committed to their international engagements and obligations on the climate and biodiversity and to the Green Deal, including the biodiversity strategy and the ‘Farm to Fork’ strategy, especially in a context where the pandemic crisis and the war in Ukraine have shown how vulnerable developing countries are to the disruption of the global food market;

56.

Highlights the importance of implementing the 2030 Agenda for achieving positive spillover effects, especially in the Global South, and entering a virtuous circle in international partnerships; underlines the significance of the external dimension, as the EU only accounts for 19 % of global economic performance and 5,6 % of the world’s population, with both shares shrinking; points out that achieving SDG 10 is the strategic lever that will empower our partners to set themselves on the path to sustainable development;

57.

Stresses the fact that at least 85 % of all new external action implemented through the Neighbourhood, Development and International Cooperation Instrument — Global Europe will be required to incorporate gender as a significant or principal objective, as defined by the gender equality policy marker of the OECD Development Assistance Committee, and at least 5 % of these actions should have gender equality and women’s and girls’ rights and empowerment as a principal objective; reiterates that the European External Action Service and the Member States should consider sexual and reproductive health and rights as a priority in the EU programming process, including in joint programming; insists on the swift and full implementation of the requirement in the EU's environment action programme to 2030 that gender be mainstreamed throughout climate and environmental policies, including by incorporating a gender perspective at all stages of the policymaking process;

58.

Calls on the Commission, the European External Action Service and Member States, as appropriate, to present the relevant results achieved on the implementation of the five priority SDGs at the upcoming 2022 HLPF, namely, SDGs 4 (quality education), 5 (gender equality), 14 (life below water), 15 (life on land), and 17 (partnerships for the goals); stresses the importance of Parliament’s active involvement in the HLPF and that it should be an integral part of the EU delegation; expects, therefore, that Members of Parliament be allowed to attend EU coordination meetings and be guaranteed access to documents throughout the summit;

o o

59.

Instructs its President to forward this resolution to the Council, the Commission, the Organisation for Economic Co-operation and Development and the United Nations.

(1) OJ C 210, 30.6.2017, p. 1.

(2) OJ C 210, 30.6.2017, p. 1.

(3) OJ L 209, 14.6.2021, p. 1.

(4) Texts adopted, P9_TA(2022)0099.

(5) OJ C 456, 10.11.2021, p. 191.

(6) OJ C 23, 21.1.2021, p. 130.

(7) OJ C 289, 9.8.2016, p. 5.

(8) OJ C 334, 19.9.2018, p. 151.

(9) OJ C 67, 8.2.2022, p. 25.

(10) OJ C 76, 28.2.2018, p. 45.

(11) OJ C 474, 24.11.2021, p. 91.

(12) OJ C 440, 6.12.2018, p. 14.

(13) COM(2021)0550.

(14) Eurostat, European Commission, ‘EU SDG Indicator set 2021 — Result of the review in preparation of the 2021 edition of the EU SDG monitoring report’, 2021.

(15) Policy Department for Budgetary Affairs, Directorate-General for Internal Policies, for the Committee on Budgetary Control, ‘The Sustainable Development Goals in the EU budget’, 2021.

(16) Policy Department for Budgetary Affairs, Directorate-General for Internal Policies, for the Committee on Budgetary Control, ‘Budgetary control of the Sustainable Development Goals in the EU budget — What measures are in place to ensure effective implementation?“, 2021.

(17) OECD, “Global Outlook on Financing for Sustainable Development 2021 — A New Way to Invest for People and Planet”, Paris, 2020.

27.1.2023

Official Journal of the European Union

C 32/42

P9_TA(2022)0264

Implementation of the Recovery and Resilience Facility

European Parliament resolution of 23 June 2022 on the implementation of the Recovery and Resilience Facility (2021/2251(INI))

(2023/C 32/06)

The European Parliament,

—	having regard to Article 175 of the Treaty on the Functioning of the European Union (TFEU),

—	having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (1) (RRF Regulation),

—	having regard to Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget (2) (Rule of Law Conditionality Regulation),

—	having regard to its resolution of 20 May 2021 on the right of information of the Parliament regarding the ongoing assessment of the national recovery and resilience plans (3),

—	having regard to its resolution of 10 June 2021 on the views of Parliament on the ongoing assessment by the Commission and the Council of the national recovery and resilience plans (4),

—

having regard to its resolutions of 7 April 2022 on the conclusions of the European Council meeting of 24-25 March 2022, including the latest developments of the war against Ukraine and the EU sanctions against Russia and their implementation (5), and of 19 May 2022 on the social and economic consequences for the EU of the Russian war in Ukraine — reinforcing the EU’s capacity to act (6),

—	having regard to its resolution of 9 June 2022 on the rule of law and the potential approval of the Polish national recovery plan (RRF) (7),

—

having regard to Commission Delegated Regulation (EU) 2021/2106 of 28 September 2021 on supplementing Regulation (EU) 2021/241 of the European Parliament and of the Council establishing the Recovery and Resilience Facility by setting out the common indicators and the detailed elements of the recovery and resilience scoreboard (8),

—	having regard to Commission Delegated Regulation (EU) 2021/2105 of 28 September 2021 supplementing Regulation (EU) 2021/241 of the European Parliament and of the Council establishing the Recovery and Resilience Facility by defining a methodology for reporting social expenditure (9),

—	having regard to the opinion of the European Economic and Social Committee of 20 October 2021 on the Annual Sustainable Growth Strategy 2021 (10),

—	having regard to the Commission communication of 24 November 2021 entitled ‘Annual Sustainable Growth Survey 2022’ (COM(2021)0740),

—	having regard to the Commission communication of 24 November 2021 entitled ‘2022 Draft Budgetary Plans: Overall Assessment’ (COM(2021)0900),

—	having regard to the Commission staff working document of 24 November 2021 entitled ‘Analysis of the euro area economy’, accompanying the document ‘Recommendation for a Council Recommendation on the economic policy of the euro area’ (SWD(2021)0362),

—	having regard to the opinion of the European Committee of the Regions of 1 December 2021 on the implementation of the Recovery and Resilience Facility (11),

—	having regard to the Commission’s first annual report on the implementation of the Recovery and Resilience Facility (COM(2022)0075), published on 1 March 2022,

—	having regard to the Commission communication of 8 March 2022 entitled ‘RepowerEU: joint European Action for more affordable, secure and sustainable energy’ (COM(2022)0108),

—

having regard to the joint analysis of the European Committee of the Regions and the Council of European Municipalities and Regions (CEMR) on the involvement of municipalities, cities and regions in the preparation of the national Recovery and Resilience Plans, and the results of their targeted consultation of 27 April 2022 entitled ‘Implementation of the Recovery and Resilience Facility: the perspective of local and regional authorities’,

—	having regard to its resolutions of 10 March 2022 on the rule of law and the consequences of the ECJ ruling (12), and of 5 May 2022 on ongoing hearings under Article 7(1) of the Treaty on European Union (TEU) regarding Poland and Hungary (13),

—	having regard to the recovery and resilience scoreboard and its thematic analyses as well as the presentations to Parliament (14),

—	having regard to the Commission Notice of 12 February 2021 entitled ‘Technical guidance on the application of “do no significant harm” under the Recovery and Resilience Facility Regulation’ (C(2021)1054),

—	having regard to its research services’ analyses and briefings on the RRF (15),

—	having regard to Rule 54 of its Rules of Procedure, as well as Article 1(1)(e) of, and Annex 3 to, the decision of the Conference of Presidents of 12 December 2002 on the procedure for granting authorisation to draw up own-initiative reports,

—	having regard to the opinions of the Committee on Employment and Social Affairs, the Committee on Budgetary Control and the Committee on Culture and Education,

—	having regard to the letters from the Committee on the Environment, Public Health and Food Safety, the Committee on International Trade and the Committee on Constitutional Affairs,

—	having regard to the report of the Committee on Budgets and the Committee on Economic and Monetary Affairs (A9-0171/2022),

A.	whereas the Recovery and Resilience Facility (RRF) is the main building block of the NextGenerationEU (NGEU) stimulus package;

B.	whereas EUR 672,5 billion in grants and loans are being made available to finance national measures designed to alleviate the economic and social consequences of the COVID-19 pandemic (hereinafter ‘the pandemic’); whereas Parliament initially advocated for a higher share of grants in the RRF;

C.	whereas RRF funding supports key policy areas such as the green transition, digital transformation, economic, social and territorial cohesion, institutional resilience and crisis preparedness, as well as children and the youth, including education and skills;

whereas Russia’s invasion of Ukraine on 24 February 2022 has led the EU to impose unprecedented economic sanctions; whereas the conflict generated by Russia has led a high number of Ukrainian citizens to leave Ukraine and to travel to and settle in the EU; whereas the military invasion will generate economic and social consequences across the European continent, in particular in eastern European countries, including in relation to the urgent need to decrease energy dependency on imported fossil fuels;

E.	whereas the EU is suffering difficulties in accessing certain critical raw materials with possible consequences for the implementation of the RRF;

whereas the pandemic has had a devastating effect on the economic and social situation of people and businesses in Europe; whereas the EU economy saw a significant contraction during the pandemic; whereas EU businesses, and particularly small and medium-sized enterprises (SMEs), were affected by the pandemic with negative consequences for the growth and competitiveness of the EU as well as for their productivity and capacity to create jobs; whereas the EU single market is the main driver for growth in the EU and should be strengthened and protected from the negative effects of the pandemic, while at the same time investments in research and innovation should be promoted; whereas some countries once again saw an above-average rise in unemployment during the pandemic; whereas women, young people, older people, persons with disabilities and large families are more at risk from this development; whereas the EU health sector was pushed to its limits during the pandemic and its resilience has been seriously tested and affected; whereas the youth unemployment rate remains higher than the overall unemployment rate; whereas the youth have a higher risk of poverty and social exclusion, as well as a considerable risk for their access to quality jobs;

whereas the constant development of digital skills, as well as the development of skills with economic potential such as green or entrepreneurial skills, is key for a competitive, healthy, inclusive and future oriented European labour market and should create access and opportunities for every European to quality jobs; whereas the same applies to vocational education, trade skills and life skills; whereas the EU needs to overcome any skills mismatch in order to make effective use of its human capital; whereas access to proper digital infrastructure and training on digital skills should be available to all in order to avoid widening the gap between people on digital literacy and ensure equal opportunities for all in the education system and in the labour market;

whereas, to be eligible for financing, the National Recovery and Resilience Plans (NRRPs) must include reforms and investments that fall within the scope of the six pillars of the RRF Regulation, and that respect its general and specific objectives, horizontal principles and the 11 assessment criteria set out in the RRF Regulation;

I.	whereas dialogue and transparency between the EU institutions and the Member States is crucial for the optimal implementation of the RRF;

whereas the Commission, which is responsible for monitoring the implementation of the RRF, must regularly inform Parliament of the status of the assessment of the NRRPs, and how the targets and milestones have been implemented by the Member States, including their contribution to the progress of meeting the green and digital targets; whereas the Commission is required to take Parliament’s views into account;

K.	whereas the Member States must set up and maintain robust control systems and conduct the necessary audits to ensure the protection of the financial interests of the Union throughout the entire life-cycle of the RRF;

L.	whereas the Commission’s annual reports on the rule of law serve to identify rule of law challenges and help Member States find solutions with support from the Commission and the other Member States;

M.	whereas the Regulation provides the possibility for a Member State to make a reasoned request to amend its NRRP within the period of implementation, where objective circumstances justify such a course of action;

N.	whereas democratic control and parliamentary scrutiny over the implementation of the RRF is only possible with the full involvement of Parliament and the consideration of all its recommendations at all stages, and whereas Parliament will continue to scrutinise the implementation of the RRF;

O.	whereas the Commission will present a review report on the implementation of the RRF to Parliament and the Council by 31 July 2022;

Mitigating the social and economic impact of the crisis

Highlights that the RRF is an unprecedented instrument of solidarity and a cornerstone of the NGEU instrument, ending in 2026, as the main tool in the EU’s response to the pandemic to prepare the economies of the EU to face new challenges;

Recalls that the EU’s response to the pandemic has been determined, coordinated, comprehensive, timely and solidarity-based, leading to extensive use of existing instruments and deploying additional financing instruments; further recalls that Member States have taken sizeable fiscal measures in response to the pandemic and in support of the recovery (5,2 % of gross domestic product (GDP) in 2021 and 2,8 % of GDP in 2022);

Highlights the stabilising effect of the RRF for Member States at a time of great economic uncertainty, containing the crisis and mitigating its negative economic and social consequences and supporting governments in maintaining investment levels while responding to immense pressure on national budgets;

Furthermore underlines the RRF’s instrumental role in fostering economic, social and territorial cohesion, preventing the fragmentation of the internal market and the deepening of macroeconomic divergences;

Welcomes the fact that even if the economic effects of the RRF cannot be fully disentangled from other developments, it seems fair to conclude that, so far, the RRF has had positive effects on GDP and that its effective implementation will be key for the EU’s economic growth; highlights the RRF’s role in protecting the fiscal space of Member States from the substantial economic shock of the pandemic; recognises that while the main impact on GDP growth is expected to occur over the following years, the RRF has already helped to cushion EU economies and citizens from the most acute impacts of the pandemic and is positively contributing to the EU’s recovery and resilience, including economic and social cohesion, jobs, productivity, competitiveness, research, development and innovation, and a well-functioning internal market with strong SMEs; stresses that significant divergences exist among Member States with regard to economic, social and institutional resilience, which impact the uneven recovery dynamics; points out that the RRF catalyses the green and digital transitions and plays a paramount role in enhancing the sustainable transition and the well-being of people for a resilient, fair, inclusive, competitive and future-proof economy in relation with the implementation of ambitious reforms and investments;

Observes the sizeable impact of the NGEU instrument as estimated by the Commission, the ECB and the IMF, notably with an increase of GDP growth of up to 1,5 percentage point higher than without NGEU investment, when implemented effectively;

Notes, furthermore, that the Commission forecasts that RRF grants will fund 24 % of total recovery support measures in 2022; highlights the positive macroeconomic spillover effects and the potential of well-targeted reforms and investment; points out that the RRF grants will continue to provide substantial fiscal support to Member States and can thus enable them to pursue structural reforms and investments with long-lasting effects on the recovery and resilience of their economies and societies; calls on Member States to make the best use of this opportunity;

Points out that a successful and transparent implementation of the RRF would contribute to making EU economies and societies more sustainable, inclusive, and resilient, more competitive in the long term, more strategically autonomous and better prepared for current and upcoming challenges; stresses that a successful implementation of the NRRPs will foster economic and social convergence and territorial cohesion, and reduce social inequalities;

Believes that in order for the RRF to achieve its general objectives and support the EU in bouncing back from the crisis, and to maximise the long-term impact on the EU economy and society, it is imperative that Member States implement the agreed reforms and investments thoroughly and in a timely manner; recalls that the RRF is a performance-based mechanism, whereby funding is disbursed only upon completion of the related milestones and targets related to measures; recalls that the participation of local, regional and national authorities and those responsible for developing those policies is crucial for the success of the RRF, as stated in Article 28 of the RRF Regulation;

10.

Warns that the RRF will only mitigate the social and economic impact of the crisis if funds are effectively absorbed and spent, so that they reach the real economy and people; calls on Member States to take the appropriate decisions regarding administrative structures and human resources dedicated to ensuring the timely expenditure of RRF funds;

11.

Underlines that the pandemic has highlighted the need to increase the strategic autonomy of the Union in key supply chains and critical infrastructures and services; notes that the RRF investments in the green transition and digital transformation should contribute to increasing EU strategic autonomy and independence, notably to reducing its dependence on imported fossil fuels; notes that according to the Commission, the RRF is expected to give a major boost to the implementation of the EU industrial strategy and thereby further develop EU industries;

12.

Emphasises that the packages of reforms and investments, particularly growth-enhancing ones under the RRF, should also generate EU added value; notes that according to the Commission, the EU-wide GDP effects are around one third larger when explicitly accounting for the spillover effects from individual country measures; emphasises that the packages of reforms and investments under the RRF should also contribute to the implementation of the European Pillar of Social Rights and the priorities of the European Green Deal and the digital agenda, and to the promotion and mainstreaming of gender equality and equal opportunities for all;

13.

Calls upon the Commission to assess whether there has been unnecessary duplication of investments in the NRRPs of neighbouring Member States and to assist Member States in avoiding unnecessary overlap;

14.

Deplores the fact that women (16), children (17), young people, the elderly and vulnerable groups have been the most impacted by the COVID-19 crisis; recalls the need to ensure inclusiveness so that the EU leaves no one behind, and that it tackles gender-specific socio-economic impacts on its path to recovery, and that a number of gender-specific consequences of the crisis are not addressed by the NRRPs; welcomes the improvement of the accessibility and the quality of care facilities, but deplores that they remain too limited;

15.

Reiterates the importance of the six pillars in providing the Member States with a structure to propose and implement reforms and investments that tackle the green and digital transitions, the economy, productivity and competitiveness, social and territorial cohesion, health and institutional resilience, and measures for children and young people; highlights that all Member States are required by the RRF Regulation to include in their national recovery and resilience plans measures that address all pillars; deplores the fact that not all Member States chose to respect the pillar structure of the Regulation which would have allowed for easier monitoring;

Financing aspects of the RRF

16.

Notes that in the 26 NRRPs that have been submitted so far, Member States have requested a total of EUR 331,7 billion in grants out of the EUR 338 billion available; notes furthermore that not all Member States, in their current NRRPs, have requested the full amount of grants available to them as referred to in Article 11 of the RRF Regulation;

17.

Is concerned, however, that only seven Member States have requested loans amounting to a total of EUR 166 billion out of the EUR 385,8 billion available for loans, leaving a considerable amount available should Member States require loans at a later stage; is preoccupied that the limited interest for the loan component may lead to lost opportunities and prevent the RRF from reaching its full potential; underlines that should Member States whose NRRPs have been already approved wish to request loans, it will require amending respective NRRP, where relevant with the additional set of reforms and investments, milestones and targets, without rolling back measures already implemented; encourages Member States to use full potential of the RRF, including loans, to counter the effects of the pandemic and upcoming challenges;

18.

Tasks the Commission with analysing the reasons why the Member States have not requested loans to the full extent of their allocation, which could prevent the RRF from reaching its full potential; recalls that a Member State may request loan support at the time of the submission of a recovery and resilience plan or at a different moment in time until 31 August 2023, according to the RRF Regulation in force;

19.

Recalls that, under Article 21 of the RRF Regulation, objective circumstances allow a Member State to make a reasoned request to the Commission to make a proposal to amend or replace the approved plan; recalls that if the Commission considers that the reasons put forward by the Member State justify an amendment of the NRRP, it shall assess the amended NRRP in accordance with Article 19 and put forward a proposal for a Council implementing decision according to Article 20 of the Regulation; recalls that such a request for amendment entails an assessment and approval procedure identical to the first assessment and approval procedure, invites Member States to take carefully into account a risk of delaying the implementation of the overall NRRPs; notes that, so far, no Member State requested to amend or replace the approved plan; encourages the Member States to make use of Article 21 in the RRF Regulation, notes that the potential increase of costs of NRRPs due to the significant inflation may result in Member States’ requests to update NRRPs;

20.

Notes that the development of Member States’ GDP is currently forecast to differ from the Commission’s autumn 2020 forecast, leading to expected changes in the grant amounts available to Member States for the second 30 % funding window of the RRF; points out that significant changes in the allocated grant portion may require amendments to NRRPs;

21.

Highlights that support from the RRF shall respect the principle of additionality as referred to in Article 9 of the RRF Regulation; looks forward to more granular and disaggregated data allowing for a better understanding of the additionality impacts of the RRF; urges the Member States to provide detailed, transparent and timely information to the Commission in order to ensure effective reporting of the impact of the RRF; reiterates the importance of the Recovery and Resilience Scoreboard in providing basic information for citizens on the overall progress in the implementation of the RRPs; calls on the Commission to increase the level of transparency and data visualisation in the Scoreboard, and for more detailed reporting, focusing on outcome and impact indicators rather than output, as well as ensuring a qualitative analysis of the reforms and investments proposed;

22.

Notes that only twelve operational arrangements were signed between the Commission and Member States by mid-June 2022; calls on the Commission and the Member States to sign operational arrangements as soon as possible and requests that the Commission communicate those arrangements to Parliament; additionally, urges all Member States to publish their operational arrangements, financing and loan agreements in a timely manner, in order to ensure better transparency and reinforce accountability;

23.

Observes that 21 Member States have received pre-financing of up to 13 % of their total allocation, that one Member State has not requested pre-financing and that seven, have so far requested first payments from the RRF, while one Member State has requested the second payment;

24.

Reiterates that delays in the implementation of the Facility and NRRPs should not slow down the recovery process following the pandemic or diminish the level of resilience of the Union;

25.

Recalls that the RRF Regulation provides for the possibility to include in the NRRPs measures started from 1 February 2020 onwards and that some Member States have made use of this possibility;

26.

Welcomes the early dialogue between the Commission and the Member States in the preparation of payment requests and the Commission’s readiness in assessing payment requests; encourages it to continue thoroughly assessing whether milestones and targets are complied with, in a timely manner, consulting relevant experts where needed; urges the Commission to ensure the fast deployment of payments and to closely monitor the implementation of reforms and investments;

27.

Recalls the need to proceed swiftly with the introduction of a basket of new own resources to cover in full the repayment of the NGEU instrument and notably the RRF, by 2058 at the latest, in accordance with the roadmap set out in the interinstitutional agreement concluded in December 2020 by Parliament, the Council and the Commission; takes note of the issuance of ‘European Green Bonds’ to finance the share of climate-relevant expenditure in the RRF; notes that the first offerings of green bonds by the Commission were largely oversubscribed;

The RRF’s role in mitigating the consequences of the Russian invasion of Ukraine

28.

Highlights the need to enhance the contribution of EU funding instruments, notably the RRF, to tackle current challenges including those caused by the unprovoked and unjustified Russian military aggression and invasion of Ukraine;

29.

Is concerned that this aggression against Ukraine and the justified sanctions that the EU has taken as a response against Russia and Belarus will seriously impact the economic and social recovery and resilience strategy of the Union; notes that their impact on Member States is heterogeneous; is concerned about uneven effects on the EU economy, the entailing economic and social consequences and even further increasing social inequality, in particular caused by increased energy and food prices; emphasises that inflation can also potentially lead to a negative change in the expected outcome of the RRF and estimated costs of the Member States’ NRRPs; expects the determination, unity and speediness of the EU response to this new crisis to continue;

30.

Stresses, once again, its call for further sanctions including a full and immediate embargo on various Russian energy imports and the abandonment of the related infrastructure in accordance with its resolution of 7 April 2022, and for a plan to continue ensuring the EU’s security of energy supply, which will inter alia require a recalibration of European energy policy, taking into account the differing degrees of energy dependence on Russian fossil fuel imports across Member States;

31.

Is concerned that the current situation in Ukraine is having a heavy impact on energy prices and emphasises the need to strengthen energy independence and security, to diversify energy sources, including through EU energy sources, and to accelerate the energy transition; stresses the role of the RRF in the rollout of RePowerEU and underlines that the loans available under the RRF could be used to a large extend to supplement the RePowerEU initiative and to advance investments in the energy transition, including the development of clean energy; expects the RRF, therefore, to contribute significantly to EU energy sovereignty through energy efficiency, diversification and investments in the just green transition;

32.

Welcomes, in this regard, the various measures in NRRPs aimed at enhancing the energy transition and energy security and measures enhancing strategic autonomy, reducing Member States’ dependence on imported fossil fuel energy, and accelerating the diversification of energy sources, energy efficiency and the development of clean energies; highlights that cross-border projects, the improvement of the interconnection of European energy networks and the full synchronisation of the power grids throughout the EU should be promoted to enhance synergies and cooperation between EU countries and reflect common concerns and shared priorities;

33.

Takes note of the Commission proposal to amend the RRF Regulation in the context of the REPowerEU initiative and expresses its commitment to adopt its position on the proposal without delay; urges the Member States, in case they do not intend to use the full amount of their maximum allocation of RRF loans, to officially inform the Commission; welcomes, in this context, the proposal to incentivise the optimal use of the loans available under the RRF, including by proposing a reallocation of the loans to other Member States facing additional challenges as a consequence of the Russian invasion of Ukraine and by allowing Member States to request loans higher than 6,8 % of their gross national income (GNI), with a particular view to mitigating the economic, social and energy consequences of Russia’s invasion of Ukraine for the EU, and the side effects of EU restrictive measures against Russia and Belarus;

34.

Acknowledges the need for measures to help refugees from Ukraine, notably with accommodation, social and child care, education, healthcare and housing, helping to alleviate their socio-economic situation; stresses, therefore, that an increased level of investment in this regard must be ensured;

National recovery and resilience plans (NRRPs)

35.

Welcomes the fact that 24 NRRPs have been approved and observes that as of mid-June 2022, one Member State had not yet put forward its NRRP; further notes that one NRRP is pending assessment by the Commission; urges the country with an NRRP pending assessment to engage in constructive discussions with the Commission in order for the plan to become ready for approval without further delay; calls on the Commission to apply diligently the RRF Regulation to ensure compliance with the 11 assessment criteria as set out in the Regulation, when assessing the remaining plans;

36.

Notes the fact that the Commission’s assessments concluded that all approved NRRPs address all six pillars of the RRF and satisfactorily fulfil all assessment criteria as set out in the RRF Regulation and represent a balanced package of reforms and investments; considers that Member States could have better aligned their NRRPs to the six RRF pillars and the requirements of the RRF Regulation;

37.

Reminds the Commission that compliance with the rule of law and with Article 2 TFEU are prerequisites to have access to the fund and that the rule of law conditionality mechanism is fully applicable to the RRF; calls on the Commission and the Council to refrain from approving Hungary’s draft NRRP as long as concerns regarding the observance of the rule of law, the independence of the judiciary and the prevention and detection of and fight against fraud, conflicts of interest and corruption persist; insists that the milestones and targets related to the protection of the financial interests of the Union, the establishment of an adequate control system, the independence of the judiciary and the prevention and detection of and fight against fraud, conflicts of interest and corruption are pre-conditions and must be fulfilled before the submission of a first payment request and recalls that no payment under the RRF can be made before their fulfilment; reminds Member States that the failure to fully comply with the provisions of the RRF Regulation and the subsequent delays in the approval of the NRRPs seriously affect the capacity of local and regional authorities to adequately tackle the impact of the pandemic on their communities, businesses and citizens and can lead to a long-term worsening of the local and regional economic situation; deplores the fact that, because of the Polish and Hungarian Governments’ actions, the RRF funding has not yet reached the people and regions of Poland and Hungary;

38.

Recalls that no measures should be financed under the RRF if they are contrary to the EU values enshrined in Article 2 TEU; urges the Commission to monitor very carefully the risks to EU financial interests in the implementation of the RRF and any breach or potential breach of the principles of the rule of law and to take immediate action if the financial interests of the EU could be harmed; calls on the Commission, therefore, in accordance with Rule of Law Conditionality Regulation, to be particularly strict with the Member States in complying with the protection of the financial interests of the Union, as enshrined in Article 22 of that Regulation;

39.

Recalls, furthermore, that the observance of the rule of law and the sound financial management of EU funds are to be evaluated continuously throughout the lifecycle of the RRF and that the Commission must refrain from disbursing funding and, where applicable, recover funds, in case such conditions are no longer fulfilled;

40.

Notes that the Commission’s assessment states that all approved NRRPs expect to reach the green target of at least 37 % set out in the RRF Regulation and that the overall climate expenditure of all approved NRRPs reaches almost EUR 220 billion; points out, however, that external reviews of the spending identify lower figures with regard to green spending; highlights in this regard that the milestones and targets associated with climate-related measures should have been defined in such a way as to ensure that the implemented measures are as climate-supportive as announced; underlines that the NRRPs should contribute to the green transition, including biodiversity; notes existing concerns as to whether all relevant measures effectively contribute to the achievement of the objectives;

41.

Recalls that the NRRPs need to be consistent with the National Energy and Climate Plans (NECPs) and the updates thereof under Regulation (EU) 2018/1999 (18); calls on the Commission to assess the contribution of the investments earmarked for the green transition under the NRRPs to the achievement of the new 2030 climate and energy targets set out in the respective revised NECPs;

42.

Recalls that the RRF should contribute to the mainstreaming of biodiversity action in Union policies; notes that several NRRPs contribute to biodiversity but insists that Member States could have used the RRF more to improve biodiversity;

43.

Warns against the risk of ‘greenwashing’ in the implementation of NRRPs, particularly as regards some measures tagged as contributing to green spending requirements, including those on energy-efficient building renovation;

44.

Notes that all approved NRRPs expect to achieve the digital target of at least 20 % set out in the RRF Regulation, while some Member States have even allocated more than half of their RRF funds to measures qualifying for the digital target, and that the overall digital expenditure of all approved NRRPs reaches almost 29 % or EUR 130 billion; welcomes the strong focus in NRRPs on supporting SMEs and the digitalisation of public services, including the health sector, and digital skills, digitalisation of business, connectivity, digital research and development and advanced technologies; notes that two thirds of Member States included a security self-assessment for investments in digital capacities and connectivity in their NRRPs;

45.

Reminds the Commission and the Member States that according to the RRF Regulation, investments in digital technologies should respect the principles of interoperability, energy efficiency and personal data protection, allow for the participation of SMEs and start-ups, and promote the use of open-source solutions; stresses that digital procurement calls must be carefully designed, notably to ensure access for SMEs to relevant public investment;

46.

Notes that several NRRPs contain investment proposals for 5G connectivity; recalls that Member States should ensure coherence and complementarity in the deployment of 5G connectivity, mobile broadband and infrastructure in all areas so that no one is left behind;

47.

Underlines the importance that the NRRPs dedicate almost 50 % of total expenditure or EUR 203 billion to measures to benefit the well-functioning of the single market, improving the business environment and promoting private investments; reiterates the importance of the private sector in the successful implementation of the RRF; urges the Member States to facilitate private investments in connection to the RRF-funded projects by lifting all unnecessary obstacles that would prevent SMEs from accessing the relevant RRF funding, and to this end, calls on the Commission to provide detailed analyses of the access of the private sector to RRF funding; asks Member States to implement the NRRPs according to a transparent schedule to allow the private sector to plan their activities and projects according to the relevant measures;

48.

Notes that the Commission estimates social spending in the NRRPs to account for around 20 % of the grants and loans requested; observes that this expenditure focuses on employment incentives for specific disadvantaged groups, reforms of employment protection legislation and labour contract regulation; recalls that the social consequences of the pandemic have been manifold and have unevenly and disproportionally burdened lower income and vulnerable groups while at the same time reinforcing the need for public services; regrets that social investment measures have been rather limited to social infrastructure and that only some NRRPs contain measures for the development of proper care services and temporary support measures;

49.

Supports the Commission’s aim, through the RRF, of building a more resilient and inclusive labour market, while noting that relevant measures should promote high-quality employment;

50.

Points out that all approved NRRPs so far address social and employment challenges, including through measures for improving labour market participation, promoting upskilling and reskilling, and modernising labour market institutions and services, as well as social protection and healthcare systems; regrets that some Member States are lagging behind in strengthening the social dimension of their plans;

51.

Underlines the importance of reforms and investments in health, economic, social and institutional resilience to increase crisis preparedness and crisis response capacity, which account for more than 17 % of total NRRP allocations, representing EUR 76 billion; highlights that according to the Commission, under this RRF pillar, Member States have to implement 789 measures linked to 1 900 milestones and targets; emphasises that COVID-19 has demonstrated the importance of improving the resilience of public institutions to shocks;

52.

Notes that approved NRRPs envisage expenditure on healthcare-related measures of EUR 37 billion, which corresponds to 8 % of total NRRP expenditure; observes that the highest contribution is earmarked for renovating and expanding hospital infrastructure, followed by strengthening primary care and prevention, digital transition in healthcare and long-term care; expects these healthcare-related measures to contribute to increasing the capacity and resilience of healthcare systems and their preparedness for future crises; is concerned that many Member States did not include sufficient measures to make mental health care accessible and affordable for all age groups, and highlights that mental health should represent an integral part of the EU’s socio-economic recovery from the pandemic and an occupational health priority; is concerned that some Member States did not include sufficient measures to tackle long-standing public healthcare challenges;

53.

Observes that public administration modernisation features prominently in many NRRPs, with approximately EUR 1,8 billion expected investment in the enhancement of the public administration; stresses that NRRPs could contribute to increasing the capacity of public administrations to manage European funds effectively at national, regional and local levels; underlines that the benefits of reforms go beyond their associated costs, which should lead to concrete positive impacts for citizens;

54.

Notes that approved NRRPs envisage expenditure dedicated to children and young people, including early childhood education and care, youth unemployment and skills, of EUR 49 billion, which corresponds to approximately 11,5 % of total NRRP expenditure; notes that the amount represents a first step in ensuring that coordinated measures dedicated to the next generation are being implemented in all 27 Member States; is concerned that many NRRPs do not properly reflect the ambitions set by the European Child Guarantee and that they reflect only partially those of the reinforced Youth Guarantee; deplores the fact that two Member States chose not to include in their plans measures specifically dedicated to children and the youth but preferred to present measures that foster skills and digital skills for all citizens;

55.

Observes that almost all approved NRRPs contain investment in digital education, making up approximately 30 % of the total spending on education; welcomes the focus on the modernisation of education infrastructure and equipment in the Member States;

56.

Notes that in total, so far, Member States have put forward 228 measures with a focus on supporting children and the youth; notes that 74 % of the measures focus on general, vocational and higher education and training capacity, as well as accessibility, affordability, quality and inclusiveness, including digitisation and infrastructure; further notes that 14 % of the measures deal with early childhood education and care, early school leaving and child poverty; notes that 12 % of the measures focus on tackling youth unemployment through job creation, hiring, job transition incentives and support for self-employment; emphasises that Parliament has asked the Member States to dedicate at least 2 % of the budget of each NRRP to culture and 10 % to education; notes that 16 Member States have included culture-related measures in their NRRPs; believes that Member States could have used the RRF more to support those sectors;

57.

Calls for the Commission to continue monitoring the implementation of the six pillars and ensuring that granular data is made available in the RRF scoreboard; asks the Commission to facilitate more regional methods of monitoring implementation through the scoreboard and welcomes monitoring initiatives at EU and national level that enhance the monitoring of RRF implementation; notes positively that several Member States provide data at regional level and invites the other Member States to provide data at regional level;

58.

Underlines that the RRF must not be used to substitute recurring national budgetary expenditure, unless duly justified; notes that the Commission has only approved NRRPs to cover the initial costs of setting up and launching reforms; reminds the Member States that the RRF must be implemented in a way that it does not undermine their own responsibility for the management of public finances; calls on the Commission to provide details on the assessment of compliance with this horizontal principle and any related justification;

59.

Points out that the principle of ‘do no significant harm’ was evaluated for each measure by the Commission in accordance with its technical guidance; stresses that the application of the ‘do no significant harm’ criteria as developed in the Commission’s guidance note must prevent environmentally harmful measures; asks the Commission to disclose the submitted ‘do no significant harm’ assessments and stresses that the Commission should carefully examine and monitor the full respect of this principle during the implementation phase; notes that in order to comply with the principle, some Member States had to improve certain measures; notes that compliance with the principle further entailed initial inconsistencies between the requirements of the Commission and those of the European Investment Bank and the European Investment Fund for the countries that provisioned their InvestEU envelopes with RRF funds, which may have led to delays in the implementation process;

60.

Observes that a large majority of NRRPs include a specific section explaining how the plan addresses gender-related concerns and challenges; notes that NRRPs contain measures focusing on the participation of women in the labour market and the reduction of the gender pay gap, but expresses disappointment that they fall short of including a dedicated explanation as to how the plan addresses gender-related concerns and challenges; underlines the importance of high-quality public care services to alleviate the burden of unpaid care work which is currently largely covered by women with negative consequences on GDP; asks the Commission to provide a study to check the extent to which the RRF contributes to creating jobs in sectors where one gender is predominantly represented and the accompanying measures contribute sufficiently to increasing the presence of the least represented gender in those sectors;

61.

Notes that 20 Member States provide for cross-border projects in their NRRPs, mostly focusing on infrastructure, such as rail or electricity connections, hydrogen, quantum technology, 5G connectivity, cloud capabilities and innovation hubs; is disappointed that NRRPs did not include a higher number of cross-border projects in order to enhance spill-over effects and contribute to EU added value; notes that 20 Member States foresee cross-border projects such as Important Projects of Common European Interest in their NRRPs mostly focusing on infrastructure; calls on the Member States to clarify the role for relevant stakeholders in the roll-out and implementation of the multi-country projects, where relevant; believes that further cross-border measures should have been included in the NRRPs in order to enhance its spill-over effect and to boost its EU added value;

62.

Notes, in particular, the importance of cross-border projects related to energy transmission across Member States; believes that in the current context, NRRPs would have benefitted more from further cross-border projects, particularly in the field of energy; stresses that these investments are crucial for achieving energy sovereignty and the green transition; underlines that the current situation shows how crucial is the diversification of the EU’s energy sources and the proper functioning of the internal market for electricity between Member States; calls for the improvement of the interconnection of European energy networks and for the full synchronisation of the power grids throughout the EU; stresses, furthermore, the importance of increasing efforts to improve energy efficiency in order to limit the expected growth of electricity demand;

63.

Observes that none of the Member States proposed to transfer structural funds to its NRRP, that only two Member States plan to provision their InvestEU envelopes with RRF funds and that only four Member States intend to incorporate the costs of technical support in their NRRPs; regrets that the provision to transfer RRF funds to the InvestEU national compartments has not been used to its full potential; recalls that synergies among different EU funds are essential for a proper recovery and the consolidated resilience of the Union and reminds Member States that the use of this provision contributes to enhancing synergies;

64.

Recalls that according to the RRF Regulation, the recovery and resilience plans must also be consistent with the information included by the Member States in their Partnership Agreements and operational programmes under Union funds; reiterates that this provision is not only important to avoid double-funding or overlapping of objectives, but also to ensure a coordinated approach and maximise the benefits of EU funding; requests that the Commission provide an analysis of how this coordination is ensured; notes that the adoption of the NRRPs has led in some instances to delays in the adoption of Partnership Agreements and is concerned about the consequences of these delays; calls on the Commission and the Member States to avoid further delays in the preparation and adoption of Partnership Agreements and calls for these delays to be addressed swiftly;

65.

Highlights that synergies and coherence between the RRF and other Union funding programmes are essential in order to ensure a proper recovery and the consolidated resilience of the Union; calls on the Commission and the Member States to foster synergies between NRRPs and other Union funding programmes, in particular Partnership Agreements; questions how the Commission has encouraged Member States to foster synergies with NRRPs of other Member States;

66.

Reminds Member States that the NRRPs are expected to contribute to effectively address all or a significant subset of challenges identified in the relevant country-specific recommendations, including fiscal aspects thereof and recommendations made pursuant to Article 6 of Regulation (EU) No 1176/2011 (19) where appropriate, addressed to the Member State concerned, or challenges identified in other relevant documents officially adopted by the Commission in the context of the European Semester; notes the Commission assessment that all NRRPs address at least a significant subset of challenges identified in the relevant European Semester recommendations but that not all challenges are addressed;

67.

Recognises the positive impact of necessary tax reforms in the Member States that are included in some national plans, while deploring that none of the Member States concerned with country specific recommendations (CSR) on aggressive tax planning, tax avoidance, tax evasion and money laundering have addressed those challenges in their NRRPs;

68.

Calls on the Commission to adequately evaluate the fulfilment of all milestones and targets, including those related to CSRs in the NRRPs in the disbursement phase of the Facility and to reduce proportionally payments, based on the importance of the milestones and targets, whether agreed milestones and targets are not satisfactory met, including not rolling back on previously achieved milestones and targets; furthermore, calls on the Commission, if necessary, to make use of the provisions of the Regulation, allowing it to recover grants or ask for early repayment of loans in case of breach of the obligations of Member States under the financing agreements;

69.

Notes that, according to the Commission assessment, all Member States received an A rating for almost all criteria provisioned in the RRF Regulation; recalls that, according to the Commission assessment, all Member States received a B-rating for the criteria that evaluates whether the estimated total costs of the NRRPs are reasonable; calls on the Commission to ensure that costs are plausible and that proper cost analysis is being conducted in order to tackle fraud and corruption; urges the Commission to thoroughly assess the satisfactory fulfilment of milestones and targets before accepting payment requests, and to ensure that previously achieved milestones and targets have not been reversed;

Transparency, monitoring and control mechanisms

70.

Stresses the importance of transparency and sound procedural management throughout the procurement processes and practices; calls, in this respect, on the Member States to ensure equality and fairness, and particularly access for all, including micro, small and medium-size enterprises, in the procurement process;

71.

Urges Member States to launch public procurement for the implementation of measures in a timely fashion in order to ensure their completion in line with the calendar of milestones and targets;

72.

Stresses that transparency is key for a strong monitoring system of the NRRPs that would allow meaningful public engagement; reiterates its regret that the Council refused the creation, supported by Parliament and the Commission, of an online platform where final beneficiaries would be publicised; observes that by the nature of the instruments used, the control focuses on the achievement of results and outputs rather than the verification of costs; notes that this approach can simplify implementation and contribute to the achievement of the desired outcome; warns that, without the proper monitoring, it could make the detection of abuse of EU funds more difficult; urges the Commission, nevertheless, to take the appropriate measures to ensure early detection of abuse of EU funds; calls on it to monitor rigorously any possible occurrence of double funding and, if such occurrences are confirmed, to proceed with the recovery of funds without delay;

73.

Calls on the Commission to inform the budgetary authority about the use of the IT systems set up by the Commission for Member States to report the relevant information on the implementation of the NRRPs;

74.

Urges the Member States to collect and record data on final recipients and beneficiaries of Union funding in an electronic standardised and interoperable format and to use the single data mining and risk scoring tool provided by the Commission; urges the Commission to insist on the use of the integrated and interoperable monitoring system including a single data mining and risk scoring tool (ARACHNE) for all RRF spending, and to ensure that ARACHNE is interoperable with all relevant software and datasets to keep the administrative burden as low as possible; furthermore, reiterates the importance of digitalising all reporting, monitoring and audit;

75.

Recalls that Member States should collect and ensure access of data on beneficial owner(s) of the recipient of the funds and beneficiaries of the programme and reiterates the importance of ensuring the transparency of final beneficiaries, without providing an extra burden on the reporting; calls on the Commission and the Member States to publish periodically up-to-date data on final beneficiaries and on transferred funds, for the sake of public trust and transparency; calls on the Commission to establish an integrated, interoperable, and easy to use system which contains information on all EU co-financed projects, beneficiaries and beneficial owners, contractors and sub-contractors and which is able to aggregate all amounts received by the same beneficiary or beneficial owner;

76.

Reminds the Commission that in the evaluation of NRRPs and payment claims it can be assisted by experts and invites it to make full use of this provision, where relevant, particularly if it lacks the in-house capacity to thoroughly scrutinise the plans or the fulfilment of milestones and targets; raises doubts about the Council’s sufficient capacity to analyse NRRPs properly or payment claims and calls to ensure that they are adequately assessed;

77.

Urges the Commission to ensure that the evaluation of the milestones and targets achieved by the Member States as part of their NRRPs will be based on a comprehensive and transparent assessment of the milestones and targets in all their dimensions, in particular their quality;

78.

Recalls that Member States are required to set up robust control and audit systems in order to guarantee the protection of the financial interests of the Union and to prevent and tackle fraud, corruption and conflicts of interest and secure transparency, and that the Commission is responsible for assuring that these systems are in place and fully functioning before the first payments are approved; recalls that payments are to be disbursed upon achievement of milestones and targets;

79.

Notes that the Commission largely relies on Member States to thoroughly audit NRRP implementation; urges the Commission to ensure effective monitoring, audit and enforcement of the full implementation of these requirements and to monitor ongoing compliance with any such measures through the entire lifecycle of the RRF; calls on the Commission to ensure a strong mechanism for regular auditing of Member States’ control systems;

80.

Reiterates the important role of the European Court of Auditors, the European Public Prosecutor’s Office, the European Anti-Fraud Office, the European Union Agency for Law Enforcement Cooperation (Europol) and the European Union Agency for Criminal Justice Cooperation and other relevant EU bodies and agencies in supporting Member States and the Commission in protecting the financial interests of the Union during the implementation of the NGEU, and calls on these institutions and bodies to make full use of their prerogatives under the RRF Regulation and other relevant legislation to prevent, detect, correct and investigate fraud, corruption and conflicts of interest in order to scrutinise thoroughly all RRF spending; recalls that those EU bodies and agencies should be endowed with the adequate resources to fulfil their tasks; calls on the Commission to cooperate with these institutions and bodies and to ensure that adequate control capacities are in place and that Member States grant them full access to all relevant information to exert their prerogatives;

81.

Welcomes the NGEU Law Enforcement Forum as well as the Operation Sentinel, which in a cooperative manner shall help to prevent and counter threats against NGEU funds and, more broadly, against the financial well-being of the Union, and map vulnerabilities in national allocation systems;

82.

Reiterates the importance of the Commission undertaking a continuous, including ex-post, monitoring of the RRF expenditure, implementation and management data, ensuring full transparency together with the Member States in order to analyse the results of the RRF, and identifying and addressing any weaknesses in this regard;

83.

Reminds that in the framework of the discharge procedure to the Commission, in accordance with Article 319 TFEU, the RRF shall be subject to reporting under the integrated financial and accountability reporting referred to in Article 247 of the Financial Regulation, and, in particular, separately in the Annual Management and Performance Report;

Governance, transparency and visibility of RRF implementation

84.

Reaffirms Parliament’s role in scrutinising the implementation of the RRF, in particular through five plenary debates held in 2021, two adopted resolutions, four Recovery and Resilience Dialogues held with the Commission in 2021, 20 meetings of the dedicated working group on the scrutiny of the RRF, parliamentary questions, and the regular flow of information and ad hoc requests for information from the Commission; recalls that Article 25 of the RRF Regulation requests that the Commission transmit relevant documents and information simultaneously and on equal terms both to Parliament and the Council; notes the slow start of the proper process of document flow and the difficulties Parliament encountered regarding access to information received by the Commission and transmitted by the Member States; welcomes the fact that better communication procedures have since been put in place and calls for this information flow to be maintained;

85.

Invites the Commission to follow an open, transparent and constructive approach during the Recovery and Resilience Dialogues and to observe the provision of Article 26(1) of the RRF Regulation as regards regular interactions with Parliament; recalls that the interinstitutional cooperation established through the RRF should become a minimum standard in all funding programmes;

86.

Invites national parliaments and relevant stakeholders, in accordance with national legal frameworks, to follow Parliament’s example and scrutinise the implementation of their NRRPs in an open, transparent and democratic way;

87.

Regrets that in all Member States, local and regional authorities, civil society organisations, social partners, academia or other relevant stakeholders were not sufficiently involved, in the design and the implementation of the NRRPs, in accordance with the national legal framework, and calls for their involvement based on clear and transparent principles, in the implementation of the NRRPs to the maximum extent possible under the national legislation;

88.

Recalls that local and regional authorities, civil society organisations, social partners and the other relevant stakeholders are at the forefront of the local implementation of NRRPs and reminds the Commission and the Member States that proper involvement and coordination with local and regional authorities, civil society organisations, social partners and other relevant stakeholders in the implementation and monitoring of the plans is decisive for the success of the recovery in the Union and is essential for the effectiveness and broad ownership of NRRPs; invites the Commission to explore ways to establish a dialogue with representatives at the EU level of the relevant RRF stakeholders;

89.

Calls on the Member States to ensure clarity in the distribution of responsibilities and adequate management systems of RRF funds to take into consideration the specific needs of the citizens at regional and local levels, while respecting the principles of non-discrimination and equal treatment; recalls that implementation of NRRPs’ measures shall respect all relevant laws in accordance with national legal frameworks;

90.

Expects the review report on the implementation of the RRF prepared by the Commission to provide extensive data and analysis on the contributions of NRRPs to the implementation of the European Pillar of Social Rights, including the gender impact of NRRPs and their effective contribution to gender equality, as well as their support for SMEs and strategic autonomy;

91.

Calls on the Commission to assess whether the legally specified spending targets of 37 % green spending and 20 % digital spending are likely to be reached as planned during the implementation phase of the RRF and, where relevant, calls on the Member States to take the steps deemed necessary to achieve those targets where they anticipate that they may be missed, with the support of the Commission where necessary;

92.

Expects the review report on the implementation of the RRF prepared by the Commission to provide information on the bottlenecks, where relevant, that prevent the adequate implementation of NRRPs;

93.

Welcomes the launch in December 2021 of the recovery and resilience scoreboard, which will allow every citizen to monitor the implementation of the RRF; notes that, in line with the delegated act on common indicators, Member States must report on several indicators, including for the implementation of the European Pillar of Social Rights and SMEs supported; invites the Commission to improve and enhance the capabilities of the scoreboard to ensure a high degree of visibility and accountability for the RRF; welcomes the fact that the scoreboard contains gender-disaggregated data for indicators expressed with a headcount;

94.

Urges the Commission to enforce the provision that Member States should provide the data necessary to report on progress with regard to the six pillars of the RRF Regulation and thereby enable every citizen to monitor the implementation of the RRF; deplores the fact, however, that Member States have been reluctant to provide more granular data to feed into the recovery and resilience scoreboard; notes that more granular data would have allowed citizens to better hold their governments accountable;

95.

Emphasises that one of the aims of the RRF Regulation is to contribute to the achievement of EU social objectives and highlights the importance of having methodologies in place for displaying progress on its implementation and how this contributes to the European Pillar of Social Rights; is concerned that the delegated act on social expenditure and on the resilience scoreboard will not be sufficient to track and report on the social and gender dimensions and impacts of the RRF; calls on the Commission to better reflect the tracking of the implementation of the 20 principles of the European Pillar of Social Rights through complementary social and gender indicators included in the thematic analysis of the scoreboard;

96.

Calls on the Commission to present complementary indicators included in the thematic analysis of the scoreboard to track Member States’ performance on biodiversity and cohesion and competitiveness;

97.

Recalls that according to the RRF Regulation, the Commission must implement information and communication actions relating to the Facility; encourages the Commission, through its representation offices in the Member States and in cooperation with the European Parliament Liaison Offices in the Member States, to launch events in the Member States that promote the scoreboard and present the different analyses conducted by the Commission, including on the six pillars; encourages the Commission to publish detailed analysis of the positive effects of the RRF by highlighting good practices in the implementation of the national NRRPs and recommendations for overcoming implementation obstacles and improving the effective use of the funds;

98.

Points out that national public administrations face a considerable challenge in absorbing all RRF funding in such a short space of time; urges the Commission to actively support Member States in absorbing those funds, so that RRF funds are successfully disbursed across the Union;

99.

Remains committed and intends to make full use of the range of possibilities offered by the RRF Regulation to assess, scrutinise and promote the RRF, including through events and activities including at local, regional and national level;

100.

Welcomes the initiative of the EU ombudsman to prepare good practice principles for government transparency in the use of recovery funds;

101.

Notes that Member States’ NRRPs report on their communication strategies; deplores, however, the fact that without a clear standard, such communication campaigns are envisaged to be very different, thus limiting the visibility of the RRF and EU funding overall; welcomes the fact that most Member States have followed the Commission’s recommendations by designing specific websites where RRF-related information is displayed, but regrets the fact that there are major differences in the details of the information made public on them;

102.

Calls for further harmonisation of the information available to citizens on national implementation and on national RRF-related communication strategies in order to foster transparency and accountability, thus reinforcing ownership of implementation; invites the Commission to recommend a harmonised approach and standard for displaying information on the implementation of the RRF at national and regional level, and asks Member States to adhere to this standard or explain their deviations from it;

Lessons learned from the RRF so far

103.

Reiterates the importance of a successful implementation of the RRF by the Member States in order to ensure the long-term impact on the EU’s economy and society; highlights that the review of the EU economic governance framework will be the opportunity to draw lessons from successes but also shortcomings of the RFF; urges the Commission to explore and to present different scenarios on how lessons learned from the design and implementation of the RRF could inspire the review of the EU’s macro-economic governance framework, in particular with regard to achieving more transparency, democracy, involvement, coordination and oversight;

104.

Underlines that the RRF demonstrated the importance of a strong involvement of the European Parliament, together with the Council, in defining the EU common priorities, the response to the new challenges and the design of underlying political guidelines and governance mechanisms, as well as in scrutinising the implementation for a strong European ownership; reaffirms that Parliament should be on an equal footing with the Council in scrutinising the implementation of the Facility and calls on the Commission to ensure that equal treatment for both institutions would be applied in future EU initiatives; highlights the importance of delegated acts in enhancing the democratic accountability and legitimacy of the process;

105.

Notes positively that the EU support, provided to reforms and investments in the form of packages together with incentives, played an instrumental role in reinforcing the national ownership of the RRF and the European Semester based on common EU priorities; furthermore, highlights that meaningful social and territorial dialogues with a high level of involvement of local and regional authorities, social partners and civil society organisations, within the national legal framework, is essential for national ownership, successful implementation and democratic accountability and that these should be strengthened and more diligently applied and could inspire future initiatives and mechanisms in the EU and its Member States;

106.

Recognises, based on the good example of the RRF, as part of the NGEU, the strong added value of a common, modern and effective EU response that can be mobilised quickly to cope with crises and new challenges;

107.

Calls on the Commission to fully take into account Parliament’s views in the upcoming review report on the implementation of the RRF, which the Commission shall present to Parliament and the Council by 31 July 2022; calls on the Commission to also take into account the input of all relevant stakeholders in that report;

o o

108.

Instructs its President to forward this resolution to the Council, the Commission, the European Court of Auditors, the European Economic and Social Committee, the European Committee of the Regions and the governments and parliaments of the Member States.

(1) OJ L 57, 18.2.2021, p. 17.

(2) OJ L 433 I, 22.12.2020, p. 1.

(3) OJ C 15, 12.1.2022, p. 184.

(4) OJ C 67, 8.2.2022, p. 90.

(5) Texts adopted, P9_TA(2022)0121.

(6) Text adopted, P9_TA(2022)0219.

(7) Texts adopted, P9_TA(2022)0240.

(8) OJ L 429, 1.12.2021, p. 83.

(9) OJ L 429, 1.12.2021, p. 79.

(10) OJ C 155, 30.4.2021, p. 45.

(11) OJ C 97, 28.2.2022, p. 21.

(12) Texts adopted, P9_TA(2022)0074.

(13) Texts adopted, P9_TA(2022)0204.

(14) https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/

(15) https://www.europarl.europa.eu/thinktank/en/research/advanced-search?textualSearch=RRF&startDate=01%2F07%2F2019&endDate=&firstCameToPage=false

(16) European Parliament, Directorate-General for Internal Policies, Policy Department for Citizens’ Rights and Constitutional Affairs, COVID-19 and its economic impact on women and women’s poverty — Insights from 5 European Countries, May 2021. https://www.europarl.europa.eu/RegData/etudes/STUD/2021/693183/IPOL_STU(2021)693183_EN.pdf

(17) Eurochild, Growing up in lockdown: Europe’s children in the age of COVID-19, 17 November 2020. https://www.eurochild.org/resource/growing-up-in-lockdown-europes-children-in-the-age-of-covid-19/

(18) Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1).

(19) Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (OJ L 306, 23.11.2011, p. 25).

27.1.2023

Official Journal of the European Union

C 32/58

P9_TA(2022)0265

Inclusion measures within Erasmus+ 2014-2020

European Parliament resolution of 23 June 2022 on the implementation of inclusion measures within Erasmus+ 2014-2020 (2021/2009(INI))

(2023/C 32/07)

The European Parliament,

—	having regard to Articles 6, 10, 165 and 166 of the Treaty on the Functioning of the European Union,

—	having regard to Regulation (EU) No 1288/2013 of the European Parliament and of the Council of 11 December 2013 establishing ‘Erasmus+’: the Union programme for education, training, youth and sport and repealing Decisions No 1719/2006/EC, No 1720/2006/EC and No 1298/2008/EC (1),

—	having regard to Regulation (EU) 2021/817 of the European Parliament and of the Council of 20 May 2021 establishing Erasmus+: the Union Programme for education and training, youth and sport and repealing Regulation (EU) No 1288/2013 (2),

—	having regard to the Commission report of 31 January 2018 entitled ‘Mid-term evaluation of the Erasmus+ programme (2014-2020)’ (COM(2018)0050),

—	having regard to the Commission communication of 14 November 2017 entitled ‘Strengthening European Identity through Education and Culture — The European Commission’s contribution to the Leaders’ meeting in Gothenburg, 17 November 2017’ (COM(2017)0673),

—	having regard to the Interinstitutional Proclamation on the European Pillar of Social Rights (3),

—	having regard to the Commission communication of 12 November 2020 entitled ‘Union of Equality: LGBTIQ Equality Strategy 2020-2025’ (COM(2020)0698), which builds on the Council conclusions of 16 June 2016 on LGBTI equality,

—

having regard to the Commission communication of 18 September 2020 entitled ‘A Union of equality: EU anti-racism action plan 2020-2025’(COM(2020)0565), which seeks to update Council Directive 2000/43/EC of 29 June 2000 implementing the principle of equal treatment between persons irrespective of racial or ethnic origin (4) (the Racial Equality Directive),

—	having regard to its resolution of 15 September 2020 on effective measures to ‘green’ Erasmus+, Creative Europe and the European Solidarity Corps (5),

—	having regard to Rule 54 of its Rules of Procedure, as well as Article 1(1)(e) of, and Annex 3 to, the decision of the Conference of Presidents of 12 December 2002 on the procedure for granting authorisation to draw up own-initiative reports,

—	having regard to the opinion of the Committee on Petitions,

—	having regard to the report of the Committee on Culture and Education (A9-0158/2022),

whereas mobility is a hugely important part of digital and in-person learning; whereas providing equal and inclusive opportunities for all is, and must continue to be, inherent to the fundamental values of the European Union, and whereas people from all backgrounds and walks of life must be able to benefit fully and equally from Erasmus+; highlights that Erasmus+ benefits not only its participants but entire communities and societies and fulfils the ambitions of UN Sustainable Development Goal 4; notes that this leads to more democratic, stronger and more cohesive and resilient societies;

whereas the Erasmus+ 2014-2020 Regulation puts emphasis on promoting social inclusion and on the participation of people with special needs or with fewer opportunities, as defined in the ‘Erasmus+ Inclusion and Diversity Strategy’, encompassing persons with disabilities, health problems, educational difficulties, cultural differences, and economical, geographical and social obstacles; underlines that the current Erasmus+ programme (2021-2027) also goes hand in hand with the green and digital transitions;

C.	whereas the COVID-19 pandemic had a severe impact on the education sector as a whole, further exacerbating existing inequalities in access to education and highlighting the need to maintain inclusion measures in Erasmus+ and to make any necessary improvements;

D.	whereas no harmonised and mandatory inclusion strategy was established at European level for the Erasmus+ programme for 2014-2020, a shortcoming that limited the impact of inclusion measures within the programme;

E.	whereas physical mobility enables immersion in and optimum interaction with other cultures, and whereas virtual exchanges and learning are a valuable complement to physical mobility, but do not provide the same quality of experience and benefits;

F.	whereas the pandemic accelerated the digital transition and highlighted the importance of having good digital skills; underlines the fact that Erasmus+ can contribute significantly to digital upskilling and reskilling;

whereas the experience of mobility offered by Erasmus+ can be transformative for participants, and can positively influence their communication skills, self-confidence, openness, critical thinking, personal and professional development, employability, well-being and understanding of the benefits of a united Europe by providing inclusive learning opportunities that enrich their lives and allow them to experience Europe’s linguistic and cultural heritage while gaining lifelong knowledge;

H.	whereas the mid-term evaluation of the Erasmus+ programme 2014-2020 published by the Commission in 2018 underlined the necessity of reaching more people with fewer opportunities and smaller organisations in all regions;

Notes with satisfaction the overall positive perception of how inclusion measures have developed over the Erasmus+ 2014-2020 programming period;

Highlights that Erasmus+ should support stakeholders’ and programme participants’ internationalisation plans that contribute to the removal of the physical, psychological, social, socio-economic, linguistic, digital and other barriers to learning mobility and European projects, offering clear and detailed information and qualitative support for participants from under-represented groups and those with specific needs;

Stresses the crucial need for tailored funding and grants such as pre-financing, top-up grants, upfront payments and lump sums to increase the participation of people with fewer opportunities or from disadvantaged backgrounds, as financial barriers continue to constitute one of the biggest obstacles in Erasmus+; stresses the need, in this regard, to apply flexible rules to provide a sufficient financial amount to cover their needs, especially their living costs;

Calls on the Commission to further develop Erasmus+ financing tools and establish synergies with other programmes;

Stresses that the amount of money disbursed through mobility grants is still insufficient in some cases, and can constitute a reason for social exclusion for those students and families who cannot afford mobility; calls for an increase in the 2023 budget for the full implementation of inclusion measures in Erasmus+ and the European Solidarity Corps;

Urges the Commission to ensure that existing digital tools are working properly and to their full extent, and to tackle without delay the serious persistent issues related to Erasmus+ IT tools, which are significantly hindering not only the participation of smaller organisations, people with fewer opportunities, older participants and staff helping with the administrative paperwork, but also the participation of all kinds of beneficiaries; calls on the Commission to make the process for the newly introduced IT tools easier and accessible for all groups and to test them on a sufficiently large scale before their implementation;

Notes that administrative barriers prevent many potential learners from taking part in the programme; urges the Commission to reduce bureaucracy and simplify the procedures to access funding with a view to streamlining the process and making it easier to understand and more accessible; underlines that the administrative burden constitutes a barrier to access for all and most affects those with fewer opportunities or with special needs; stresses the importance of providing application procedures in all European languages;

Praises the role of teachers, youth and social workers, civil society organisations, associations and educational staff as the driving forces behind participating institutions in raising awareness of the programme, by informing and supporting future learners and identifying people with fewer opportunities; notes that without them, most participants, especially those with fewer opportunities, would not be able to take part; calls on the Commission, the Member States and national agencies to value and acknowledge their often voluntary work, to support them by facilitating their own mobility and to provide them with adequate funding and support, while accompanying participants with fewer opportunities and offering them specific training adapted to their needs; notes the importance of updating various tools that they use in identifying possible participants and to better customise the Erasmus+ experience in order to address the needs of every individual participant;

Stresses the importance of providing appropriate training and support to educators on effectively navigating the challenges and opportunities and to foster the exchange of good practices in the field;

10.

Encourages the Member States and national agencies to facilitate more educational seminars for Erasmus+ staff to carry out projects, develop inclusive methods and explore new ways to reach future beneficiaries of the programme;

11.

Stresses the need for the Commission, the Member States and the national agencies to provide better support for grassroots organisations in all areas, including community-led and smaller organisations, particularly in the outermost regions, islands and remote, mountainous, rural and less accessible areas, and to ensure that resources and projects are distributed fairly in each Member State;

12.

Stresses the importance of providing adequate financial and material support to staff, in addition to further training and additional expertise, so that they can engage with participants, their families and beneficiaries, improving access and boosting the success and impact of the projects, while ensuring that mobility and projects run smoothly; notes that national agencies in the Member States can provide significant help by identifying the needs of organisations and institutions in this matter and providing the necessary support;

13.

Notes the positive effect of short-term mobility of schoolchildren in overcoming mental and psycho-social barriers, and asks the Commission and national agencies to foster mobility projects aimed at children and teenagers;

14.

Calls on the Commission and the Member States to organise targeted information campaigns, both online and offline, to increase awareness and outreach among citizens on the benefits of Erasmus+ through cooperation with media and social media outlets in public learning facilities such as libraries, schools and universities;

15.

Asks all national agencies to appoint dedicated inclusion and diversity officers in order to reach out directly to learners with special needs and/or fewer opportunities; calls, in this regard, on those organisations that were selected to implement Erasmus+ actions to designate dedicated contact persons for people with fewer opportunities, and recalls that information on support services for people with special needs must be clear, up-to-date, complete and easy to access;

16.

Calls on the Commission to improve guidelines for national policies that will enable better participation of learners facing health problems, cultural differences and economic, geographical and social obstacles, and to scrutinise and report on their implementation;

17.

Supports all EU initiatives aimed at facilitating student mobility, such as the Erasmus+ mobile application, ‘paperless Erasmus’ and the European Student Card; calls on the Commission to explore the possibility of linking Erasmus+ more closely with other programmes and to foster cross-sectoral cooperation, including Interrail, in order to foster greater inclusion and equality that will improve access to better and greener mobility options, particularly for those with fewer opportunities; calls on the Commission to also make the DiscoverEU initiative more inclusive, allowing more people to participate;

18.

Stresses that special focus should be given to linguistic competences, especially for participants with fewer opportunities; calls, therefore, for targeted and group-specific support for language learning in preparation for mobility and insists that this support should not be limited to online courses;

19.

Recognises the important role of Support, Advanced Learning and Training Opportunities (SALTO) Inclusion & Diversity for the implementation of inclusion measures for the Erasmus+ Youth strand, and notes that the extension of inclusion strategies to the Education & Training strand in the current programming period will have to be followed closely, as the target groups are different; stresses the need for national agencies to work more closely with employment agencies and other adult education stakeholders to facilitate the integration of adult learners into the Erasmus+ 2021-2027 programme;

20.

Regrets the lack of reliable data — both quantitative and qualitative — on the participation of people with fewer opportunities in the Erasmus+ programme, as such data could be used to identify at which groups inclusion measures should be targeted; underlines the need to develop evaluation schemes to produce clear statistics and appropriately assess further problematic issues in order to create a management and steering tool for inclusion measures, using methods which fully respect privacy and data protection regulations and do not add undue administrative burdens for organisations and participants; reaffirms the need for more capacity-building for staff with regard to indicators and monitoring systems for inclusion;

21.

Stresses the importance of funding more EU-wide research and studies on inclusion in the current programming period in order to assess the impact of the measures undertaken by national agencies and stakeholders in engaging organisations and people with fewer opportunities; highlights the importance of keeping records and statistics that should serve as a basis for consultations on future programmes;

22.

Asks for the specific needs of persons with disabilities to be taken into account in order to facilitate their participation in the programme by offering them hybrid mobility by way of preparation for the mobility period, giving them the opportunity to be accompanied, and providing them with suitable and accessible accommodation and specialised support services based on their needs; stresses the need to collect their feedback after the period of mobility in order to improve the participation of future beneficiaries; underlines the need for specific support, guidance and tools allowing persons with disabilities to register and participate in the Erasmus+ programme; recalls that accompanying persons should also have access to funds and grants in order to participate in the mobility programme;

23.

Stresses the importance of the Erasmus+ programme in promoting the values of tolerance and diversity; calls on the Commission to establish synergies between the EU anti-racism action plan and Erasmus+ in order to address specific needs and combat racism in all its forms;

24.

Welcomes the development of Erasmus+ projects related to and focused on improving gender equality and the inclusion of women in all sectors of education, especially in science, technology, engineering, the arts and mathematics (STEAM), and calls on the Commission and the Member States to continue to give visibility to gender equality in their policies and actions;

25.

Welcomes the projects that promote and raise awareness of sexual diversity and encourage respect for LGBTIQ+ people, and calls on the Commission to create genuine links between the EU LGBTIQ Equality Strategy and the Erasmus+ programme;

26.

Highlights the need for targeted solutions and a needs-based approach to learning-related mobility opportunities for people from marginalised groups in order to enhance their participation in the programme and ensure that they get adequate support, bearing in mind that financial and institutional barriers remain one of the biggest obstacles to their participation;

27.

Requests that the Commission and the Member States ensure that all the relevant information regarding Erasmus+ is accessible to persons with disabilities, in particular through adapted and barrier-free online tools in all European languages; recalls that planning and evaluation processes should be barrier-free; welcomes the establishment of ‘Erasmus Days’ and stresses the importance of the role of former Erasmus+ participants and alumni networks in promoting the programme widely and serving as a potential one-stop shop for all future learners;

28.

Asks the Member States to evaluate their existing policies and adopt targeted programmes and actions for learners with fewer opportunities and special needs, from all age groups and all backgrounds, in order to increase participation in Erasmus+, especially in terms of mobility, and to foster exchanges of good practices in this field; notes the key role of national agencies and voluntary organisations in facilitating this process;

29.

Underlines the positive impact of the Erasmus+ programme in third countries as a factor in the European integration process and in strengthening the visibility of the EU; stresses the need for better partnerships and increased inclusivity of Erasmus+ projects in associated countries and other eligible countries, notably in the Western Balkans and the Eastern and Southern Neighbourhoods; calls on the Commission to facilitate international consultation — both digital and in-person — between national agencies in the Member States and participating countries with a view to exchanging good practices; notes that this will further strengthen their cooperation and allow them to implement new solutions, ideas and lessons learnt on the ground that will increase the number of participants in the Erasmus+ programme;

30.

Stresses the need to give more flexibility to the Erasmus+ programme in the event of a crisis, as witnessed since the beginning of the war in Ukraine; welcomes the measures announced by the Commission allowing Ukrainian students and education staff affected by the war to continue with their education and professional activities in Ukraine and any of the Member States; calls for Ukrainian students to be given more assistance and for additional support to be provided to sustain Ukraine’s higher education institutions and academic community;

31.

Regrets the decision of the Government of the United Kingdom not to take part in Erasmus+ for the current programming period in the wake of its exit from the European Union, which constitutes a loss of opportunities for young people in both the EU and the UK;

32.

Stresses the importance of fostering mobility for vocational education and training (VET) students in order to reach young people from all backgrounds, and notes with satisfaction the increased opportunities for their long-term mobility created during the 2014-2020 programming period;

33.

Calls on the Commission and the Member States to use the European Year of Youth and related events to effectively promote the opportunities offered by the Erasmus+ programme, particularly for those with fewer opportunities and those from disadvantaged backgrounds, with a view to ensuring that the European Year of Youth has an effective impact, especially for the living conditions, education opportunities and democratic participation of young people; regrets the fact that the budget allocated to the European Year of Youth is insufficient to meet the needs of the initiative;

34.

Recalls the paramount importance of ensuring automatic recognition of qualifications and learning periods in the context of the European Education Area as a complementary tool to make inclusion measures within Erasmus+ and the European Solidarity Corps fully effective;

35.

Welcomes the Commission’s recent adoption of the 2021-2027 framework of measures aimed at increasing diversity and inclusion in the current Erasmus+ and European Solidarity Corps programmes, and calls on the Commission to closely monitor the future national implementation of this framework and to keep Parliament informed on an annual basis; highlights that the full implementation of a dedicated framework of inclusion measures can serve as a useful experience and reference for other EU programmes that have a direct impact on citizens’ lives such as Creative Europe and the Citizens, Equality, Rights and Values Programme;

36.

Instructs its President to forward this resolution to the Council and the Commission.

(1) OJ L 347, 20.2.2013, p. 50.

(2) OJ L 189, 28.5.2021, p. 1.

(3) OJ C 428, 13.12.2017, p. 10.

(4) OJ L 180, 19.7.2000, p. 22.

(5) OJ C 385, 22.9.2021, p. 2.

27.1.2023

Official Journal of the European Union

C 32/63

P9_TA(2022)0266

2021 Report on Montenegro

European Parliament resolution of 23 June 2022 on the 2021 Commission Report on Montenegro (2021/2247(INI))

(2023/C 32/08)

The European Parliament,

—	having regard to the Stabilisation and Association Agreement between the European Communities and their Member States of the one part, and the Republic of Montenegro, of the other part (1), which entered into force on 1 May 2010,

—	having regard to Montenegro’s application for membership of the European Union of 15 December 2008,

—

having regard to the Commission opinion of 9 November 2010 on Montenegro’s application for membership of the European Union (COM(2010)0670), the European Council’s decision of 16-17 December 2010 to grant Montenegro candidate status and the European Council’s decision of 29 June 2012 to open EU accession negotiations with Montenegro,

—	having regard to Montenegro’s accession to NATO on 5 June 2017,

—	having regard to the Presidency conclusions of the Thessaloniki European Council meeting of 19-20 June 2003,

—	having regard to the Sofia declaration of the EU-Western Balkans summit of 17 May 2018 and the Sofia Priority Agenda,

—	having regard to the Zagreb declaration of the EU-Western Balkans summit of 6 May 2020,

—	having regard to the Brdo Declaration of the EU-Western Balkans summit of 6 October 2021,

—	having regard to the Sofia Summit of 10 November 2020, the Western Balkans Leaders Declaration on Common Regional Market of 9 November 2020 and the Sofia Declaration on the Green Agenda for the Western Balkans of 10 November 2020,

—	having regard to the Berlin Process launched on 28 August 2014,

—	having regard to the Commission communication of 5 February 2020 entitled ‘Enhancing the accession process — A credible EU perspective for the Western Balkans’ (COM(2020)0057),

—	having regard to the Commission communication of 6 October 2020 entitled ‘Economic and Investment plan for the Western Balkans’ (COM(2020)0641),

—	having regard to the Regulation (EU) 2021/1529 of the European Parliament and of the Council of 15 September 2021 establishing the Instrument for Pre-Accession assistance (IPA III) (2),

—	having regard to special report 01/2022 of 10 January 2022 of the European Court of Auditors entitled ‘EU support for the Rule of Law in the Western Balkans: despite efforts fundamental problems persist’,

—	having regard to the Commission communication of 19 October 2021 entitled ‘2021 Communication on EU Enlargement Policy’ (COM(2021)0644), accompanied by the Commission staff working document entitled ‘Montenegro 2021 Report’ (SWD(2021)0293),

—	having regard to the Commission’s Overview & Country Assessment of the Economic Reform Programme of Montenegro of July 2021,

—	having regard to the joint conclusions of the Economic and Financial Dialogue between the EU and the Western Balkans and Turkey, adopted by the Council on 12 July 2021,

—	having regard to the Commission communication of 29 April 2020 entitled ‘Support to the Western Balkans in tackling COVID-19 and the post-pandemic recovery’ (COM(2020)0315),

—	having regard to the fifth meeting of the Accession Conference with Montenegro at deputy level of 30 June 2020 in Brussels, where negotiations on the last screened chapter, Chapter 8 (competition policy) were opened,

—	having regard to the EU-Montenegro Intergovernmental Accession Conference of 22 June 2021 and of 13 December 2021,

—	having regard to the Venice Commission’s opinions of March and May 2021 on the revised draft amendments to the law on the State Prosecution Service and to its previous opinions,

—	having regard to its recommendation of 19 June 2020 to the Council, the Commission and the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy on the Western Balkans, following the 2020 summit (3),

—	having regard to its previous resolutions on the country,

—	having regard to the declaration and recommendations adopted at the 20th meeting of the EU-Montenegro Stabilisation and Association Parliamentary Committee (SAPC), held on 2 December 2021,

—	having regard to the joint declaration of the Second European Parliament-Western Balkans Speakers’ Summit of 28 June 2021, convened by the President of the European Parliament with the leaders of the Western Balkan parliaments,

—	having regard to its resolution of 19 May 2021 on the 2019-2020 Commission Reports on Montenegro (4),

—	having regard to its resolution of 15 December 2021 on cooperation on the fight against organised crime in the Western Balkans (5),

—	having regard to Rule 54 of its Rules of Procedure,

—	having regard to the report of the Committee on Foreign Affairs (A9-0151/2022),

A.	whereas each enlargement country is judged on its own merits, and the implementation of necessary reforms, in particular in the area of rule of law, determines the timetable and progress of accession;

B.	whereas Montenegro is the most advanced of candidate countries in its negotiation process, having opened all 33 screened chapters of the EU acquis and provisionally closed three;

C.	whereas 80 % of its citizens support the country’s future membership of the EU;

D.	whereas the period after the 2020 elections was marked by deep polarisation between the new ruling majority and the opposition, as well as within the ruling majority; whereas boycotts and the lack of constructive engagement of all parliamentary actors impeded decision-making in the Parliament;

E.	whereas during the Intergovernmental Conference of 22 June 2021, Montenegro accepted the revised enlargement methodology based on thematic negotiation chapter clusters and the phasing-in of individual EU policies and programmes;

whereas the European Union is Montenegro’s biggest trading partner, accounting for 38 % of total exports and 44 % of total imports in 2020; whereas the EU is the largest provider of financial assistance to Montenegro and whereas Montenegro benefits from pre-accession assistance under the IPA, having received a total of EUR 504,9 million between 2007 and 2020;

G.	whereas the EU has continuously shown its commitment for the European perspective of Western Balkan countries and mobilised EUR 3,3 billion to address the immediate health crisis and mitigate economic and social consequences of the COVID-19 pandemic;

H.	whereas the assistance under IPA III is based on strict conditionality and provides for modulation and suspension of assistance if there is backtracking on democracy, human rights and the rule of law;

I.	whereas Montenegro is exposed to foreign interference and malicious disinformation campaigns originating from Russia and other countries;

Commitment to enlargement

Welcomes Montenegro’s continued commitment to European integration and the unwavering support of its citizens for membership of the EU; underlines that progress in the negotiations continues to depend on meeting the rule of law interim benchmarks;

Notes that all 33 screened chapters have been opened, but regrets that none have been closed since 2017, slowing down Montenegro’s positive track record and status as the most advanced Western Balkans country in its progress towards EU accession; welcomes Montenegro’s acceptance of the revised enlargement methodology; encourages Montenegro to continue specifically focusing on meeting the remaining interim benchmarks in Chapters 23 and 24 and thereafter on closing chapters;

Reiterates that cross-party political commitment and a functioning parliamentary democracy are necessary for EU-related reforms and calls for constructive and inclusive political dialogue and commitment of all parliamentary parties to overcome the current polarised political climate and strengthen the functioning and coordination between state institutions in order to achieve political stability and continue its substantial progress in key EU-related reforms, in particular electoral and judicial reforms and the fight against organised crime and corruption;

Notes the vote of no confidence in the government on 4 February 2022 and the ensuing dismissal of the Parliament’s speaker and the EU-Montenegro SAPC Co-Chair; notes that the President of Montenegro had appointed the URA party leader as prime-minister designate charged with forming a government;

Welcomes the new minority government composed of pro-European parties, which is especially welcome in light of the recent Russian invasion of Ukraine and the continuous influence of pro-Russian political parties and narratives in the country; welcomes the election of a new speaker, and calls for the appointment of the EU-Montenegro SAPC Co-Chair as soon as possible; believes that the new government’s political resolve could help accelerate the much needed reform process, reflecting both Montenegro’s work on European values and the will of an overwhelming majority of Montenegrin citizens to join the European Union;

Calls for resumption of inclusive dialogue among all parliamentary parties and relevant stakeholders with a view to building a strong pro-European and democratic platform that can ensure the necessary stability and reduce political polarisation and radicalisation in line with the constitution, respect for democratic processes, norms and standards and the pro-European aspirations of an overwhelming majority of Montenegro’s citizens;

Notes the protests against the possible formation of a minority government organised by the Democratic Front and Democratic Montenegro; invites all political parties to express their views within institutionalised democratic procedures and to refrain from escalating tensions;

Strongly condemns the support expressed for the Russian Federation by protesters and some political leaders on the day of the start of Russia’s aggression against Ukraine, but notes the relatively small scale of these demonstrations; recalls Russia’s persistent and continuous interest in destabilising the country and the whole Western Balkan region and in diverting it from its European path through the spread of manipulative disinformation and influence on state and non-state actors;

Notes that the work has intensified following the long-awaited finalisation of appointments to administrative structures in the area of rule of law; regrets that key positions in negotiating structures have remained vacant for a long time; notes the efforts to consolidate and upgrade the negotiating structure in 2021; urges the authorities to re-establish a fully functional negotiating structure as soon as possible; notes that the delayed appointment of key negotiators and heads of working groups must be followed by other steps to maintain the accession process as a political priority;

10.

Welcomes Montenegro’s continued and full alignment with EU Common Foreign and Security Policy, including its condemnation of the Russian invasion of Ukraine and its full support for the latest EU sanctions against Russia, including the ban on the Russian flights overflying its airspace and using its airports, the prohibition of transactions with Russia’s Central Bank and the ban on Russian propaganda media outlets, Russia Today and Sputnik; encourages the Commission to consider EU economic and financial assistance for Western Balkan countries that have joined EU sanctions against Russia, in order to mitigate the consequences of the crisis as it develops;

11.

Welcomes Montenegro's adoption of its own temporary protection mechanism for persons fleeing Ukraine, granting them the right to stay in the country for one year, and welcomes Montenegro’s contribution to humanitarian aid to Ukraine;

12.

Calls for the seizure of the assets of the persons sanctioned by the Montenegrin authorities and for it to be ensured that the country does not become a safe zone for hiding the assets of Russian oligarchs threatened with international sanctions; encourages the government to continue taking the steps needed to enable the competent national authorities to take the necessary decisions to implement the adopted sanctions;

13.

Welcomes Montenegro’s active participation in EU Common Security and Defence Policy missions and operations, as well as in other international missions; underlines the importance of Montenegro’s strategic alliance with the EU and with NATO; condemns attempts in the government, security and military sector to question its strategic orientation; encourages the Montenegrin authorities to cooperate with both the EU and NATO on resilience to foreign interference, manipulative foreign disinformation and cybersecurity;

14.

Encourages Montenegro to make best use of the EU funding available under the IPA III and the Economic and Investment Plan for the Western Balkans in order to strengthen institution-building and foster economic and democratic development, especially in the areas of rule of law, fundamental freedoms and the wellbeing of its citizens; highlights that any investment must be in line with the objectives of the Paris Agreement and EU decarbonisation targets; urges the Commission to closely monitor performance and ensure systematic assessment of the impact of EU funding;

Democracy and the rule of law

15.

Is deeply concerned by the continuing political tensions between and within the executive and legislative powers, and by the recent blocking of parliamentary sessions, which has a direct impact on the speed and progress of Montenegro’s EU-related reforms and continues to slow down the EU accession process; recalls that the only way to influence the decision-making process on behalf of constituents is to engage in political processes; calls on the legislative and executive authorities to improve coordination and prioritise legislative initiatives for the implementation of EU reforms; reiterates that political will, broad cross-party dialogue and functional parliamentary support, as well as the proper functioning of democratic institutions are key to Montenegro’s progress in the accession negotiations;

16.

Welcomes the recent appointments in the Supreme Court and the Court of Appeals, and of new members of the Prosecutorial Council, including a member drawn from NGO representatives; is concerned about the overall lack of progress on judicial reform, including on the still pending appointments to key independent institutions and the judiciary, including the appointment of new Constitutional Court judges; encourages the Montenegrin authorities to take further steps to enhance the independence and functioning of the judiciary and other law enforcement bodies, as well as to fully implement the Venice Commission’s recommendations concerning the risks of politicisation of the Prosecutorial Council; encourages follow-up on recommendations related to the judiciary made by Council of Europe Group of States against Corruption (GRECO);

17.

Urges the Commission to seriously take into account special report 01/2022 of the European Court of Auditors and implement its recommendations, which would mean adapting its rule of law-related investments in the Western Balkans, including in Montenegro; calls on the EU and the Western Balkan countries to establish a framework for a fruitful cooperation between the European Public Prosecutor’s Office (EPPO) and the Western Balkan countries in order to ensure that the EPPO can effectively exercise its competences in the area of EU funds;

18.

Welcomes the fact that the Parliament of Montenegro has adopted the amended Law on Local Self-Government, which provides that local elections in 14 municipalities are to be held on the same date; regrets, however, the recent decision to call elections in 12 municipalities on a different date; reiterates, once again, its calls encouraging Montenegro to hold local elections simultaneously across the country in order to bring more stability to its democracy, avoid constant campaigning and ease the tense political climate;

19.

Notes that more efforts are needed to harmonise the electoral legal framework and regulate all key aspects of elections through an inclusive process, well in advance of the next elections; welcomes the continuation of the work of the Committee on Electoral Legislation Reform despite initial interruptions, and expects it to diligently work toward achieving meaningful reform; notes that the Jean Monnet Dialogue instrument in Montenegro could be helpful in building the consensus necessary for fostering a democratic parliamentary culture;

20.

Is worried about the prevalent corruption in the country and urges Montenegro to step up the criminal justice response to high-level corruption and create conditions for the effective and independent functioning of judicial institutions and independent bodies dealing with corruption, including the Anti-Corruption Agency and the Special Prosecutors Office, to function effectively and free from political influence, in line with GRECO recommendations; calls on the Montenegrin authorities to launch thorough investigations into any wrongdoing exposed by the Pandora Papers;

21.

Welcomes progress in the fight against organised crime and on international police cooperation, in particular in improving access for law enforcement agencies to key databases and increasing the number of investigators and experts, and the increase in the number of organised crime cases investigated and prosecuted; encourages the Montenegrin authorities to continue to address the existing deficiencies in the handling of organised crime cases and the seizure and confiscation of criminal assets;

22.

Welcomes Montenegro’s constructive cooperation with EU law enforcement agencies, such as the European Border and Coast Guard Agency (Frontex), Europol, and Eurojust, which assist Montenegro in border management and the fight against cross-border crime, including trafficking of weapons, drugs, human beings and combating terrorism and extremism; notes as a positive example the police intervention in Mojkovac to tackle cigarette trafficking in Montenegro and reiterates that further measures are needed in order to tackle drug and cigarette smuggling in the country, especially in the Free Zone of the Port of Bar;

23.

Welcomes the adoption of the Strategy on Migration and Reintegration of Returnees in Montenegro for the period 2021-2025; notes that the roadmap for cooperation between Montenegro and European Union Agency for Asylum (EASO) was signed in December 2021;

24.

Regrets the limited progress made on the implementation of public administration reform and calls for the design process of the new Public Administration Reform Strategy to be inclusive and transparent; expresses concerns about changes to the Law on Civil Servants and State Employees, which lowered merit-based recruitment and the independence of civil servants, and jeopardised Montenegro’s capacity to retain staff experienced in the EU accession process; stresses the need for a merit-based recruitment system for civil servants and the importance of the depoliticisation of the public service;

25.

Welcomes the positive role of civil society in Montenegro and encourages further strengthening its meaningful participation in reforms and ensuring that there are functional consultation and cooperation mechanisms by improving the country’s legal and institutional frameworks, as well as guaranteeing the involvement of independent experts, civil society and local stakeholders in key legislation;

26.

Welcomes the first Citizens’ Assembly organised on 4 November 2021 by the Parliament of Montenegro in cooperation with the European Parliament; welcomes the active participation of citizens and their commitment for designing anti-corruption policies; calls on the Montenegrin authorities to follow up on and implement the Assembly’s conclusions on the fight against corruption, and stresses the importance of continuing this successful exercise in the future;

Respect of fundamental freedoms and human rights

27.

Notes the limited progress on freedom of expression; encourages Montenegro to step up its efforts to fight disinformation, hate speech, online harassment, politically-biased reporting and foreign influence in the Montenegrin media; underlines the importance of exchanging best practices with the EU Member States and NATO, as well as convening dialogue with Western Balkan civil society and its private sector in order to identify worrying developments at an early stage and develop appropriate adequate countermeasures against the spread of manipulative disinformation from third countries, with an emphasis on research and analysis and the inclusion of best practices in the region;

28.

Calls on the Commission to build up the infrastructure required to produce evidence-based responses to disinformation threats in the Western Balkans: calls on the European External Action Service (EEAS) to pivot to a more proactive stance, focusing on enhancing the EU’s credibility in the region and on expanding StratCom monitoring to focus on cross-border disinformation threats emanating from Western Balkan countries and their neighbours; calls on Montenegro to take decisive and systemic actions towards identifying and dismantling disinformation factories; calls on politicians and public figures to firmly condemn any messages seeking to polarise society and undermining trust in the media and core democratic values;

29.

Notes that the collection of disaggregated data relating to racism and homo/transphobic hate speech and crime remains suboptimal; recalls the 2020 conclusions from the monitoring report by the Council of Europe’s European Commission against Racism and Intolerance (ECRI), which stated that prior recommendations had not been implemented (6); recalls Parliament’s position in its last resolution on Montenegro, which called for this measure, and encourages the authorities to implement it (7);

30.

Expresses concern about the high degree of polarisation in the media landscape, in particular the growing volume of foreign and domestic disinformation campaigns and cyber and hybrid threats, including from Russia and China, spreading ethno-nationalist narratives that negatively impact democratic processes in the country thus endangering its European perspective; is worried by the increase in Montenegro's public debt to foreign financial institutions and companies from authoritarian non-EU countries; reiterates its support for the government’s readiness to implement EU sanctions against Russian propaganda outlets;

31.

Underlines the importance of media freedom and independence, high quality reporting and improving media literacy as key in fighting manipulative disinformation; calls on Montenegro, the Member States, the EEAS and the EU Delegation in Montenegro to continue pursuing more active and effective communication and visibility campaigns to emphasise the role and importance of EU assistance in Montenegro and fight anti-EU disinformation; including by setting up a regional strategic communication post in the Western Balkans; welcomes Montenegro’s interest in cooperating with the EU via the Democracy Action Plan (EDAP) and the important work of the EEAS Strategic Communication Western Balkans Task Force;

32.

Calls on the Montenegrin authorities to take concrete steps to build resilience and cybersecurity as it faces increasing pressure from third country interference that seeks to undermine its statehood and pro-Western orientation, in close cooperation with relevant EU and NATO initiatives and programmes; welcomes the new Montenegro’s Cyber Security Strategy 2022-2026 and calls for the legislative process establishing the Cyber Security Agency to move forward without delay;

33.

Strongly condemns attacks and harassment of journalists and calls for these to be investigated, sanctioned and for there to be effective judicial follow-up; welcomes the introduction of tougher penalties for threats to or attacks on journalists through the adoption of amendments to the Criminal Code; calls on all political parties to take further steps to ensure the conditions for the work of independent and free media, including support for public interest reporting, transparent funding, shared regulatory standards and a safe working environment free from attacks and threats;

34.

Welcomes some positive steps, such as an ad hoc commission for monitoring violence against the media, the strengthening of the legal framework in order to effectively protect journalists and other media workers, the revision of laws on media and on the editorial policy of the public broadcaster RTCG, which has been made more pluralistic, and public consultations on a media strategy for 2021-2025; underlines the importance of the independence of Montenegro’s media regulators and public service broadcaster, and calls for further efforts to transform the RTCG into a real public service and in general to improve access to information;

35.

Condemns all violent acts during the demonstrations in Cetinje linked to the inauguration of the Metropolitanate of Montenegro and the Littoral of the Serbian Orthodox Church; condemns Serbian interference in this regard; calls for religious tolerance in line with the Montenegrin constitution and European values and principles;

36.

Notes that foreign interference can also be pursued through the instrumentalisation of religious institutes; condemns Russia’s efforts to exploit ethnic tensions in the Western Balkans in order to inflame conflicts, divide communities and spread manipulative disinformation, which could lead to the destabilisation of the whole region;

37.

Notes another delay in the population and housing census in Montenegro, and expects that it to be conducted in the course of this year in line with EU and international standards, in an open and transparent way, without fear of intimidation for all recognised national minorities; calls on the authorities to avoid any politicisation of the process;

38.

Welcomes the multi-ethnic identity of the country and calls for further promoting it and respecting it on all levels, including the languages used, cultural heritage and the traditions of local communities, as well as for protecting their political rights; emphasises the need to protect all of the national minorities’ political rights, in particular as some of them no longer have minority party representatives in the Parliament of Montenegro;

39.

Strongly condemns verbal and physical attacks against and intimidation of any minorities, including national minorities; regrets that vulnerable groups, including Roma and Egyptians, continue to experience multiple forms of discrimination and difficulties in exercising their rights; welcomes the adoption of the strategy for the inclusion of Roma and Egyptians 2021-2025, which pays special attention to anti-gypsyism and encourages the authorities to further increase efforts to fight discrimination, ensure fair access to education, justice, housing, healthcare and the labour market, and to take effective measures against hate speech;

40.

Calls on the Montenegrin authorities to acknowledge the tradition and cultural heritage of the Croatian community in the multi-ethnic Bay of Kotor; notes with concern the notice of eviction by 15 April 2022 received by the Croatian National Assembly in Tivat;

41.

Notes that gender-based violence and violence against children continue to be of serious concern, and that this has deteriorated further during the COVID-19 pandemic; calls for improving specialist support services for women, disadvantaged groups and victims of domestic abuse, and calls on Montenegro to provide adequate funding for this, including to civil society organisations providing such support; welcomes the proposal to introduce tougher penalties for violence against women and children;

42.

Urges the Montenegrin authorities to thoroughly implement the standards of the Istanbul Convention, launch public awareness-raising campaigns, encourage reporting of domestic violence in safe conditions, and increase the number of well-trained and gender-sensitive law enforcement officers and judges so as to ensure the proper investigation and prosecution of such crimes; urges the Montenegrin authorities to implement effective measures against sexual harassment, including at the work place; remains worried by frequent hate speech and sexism directed at women in politics and public life and calls for the adoption of legal and policy measures to promote the political participation of women;

43.

Welcomes the establishment of the Council for the Rights of the Child; stresses the need to further improve the treatment of children in civil proceedings and child-friendly justice; deplores insufficient protection of victims, especially women and children including during and after custody court proceedings; calls on all state bodies to systematically approach this issue on the basis of the highest protection and support standards and best European practices;

44.

Welcomes progress on the protection and promotion of LGBTIQ rights and the first same-sex registered partnership in July 2021, and the peaceful organisation of Pride in 2021; calls on Montenegro to continue to harmonise and amend other laws and bylaws, in particular on social benefits and residence, in order to fully implement the law on registered partnership; calls for further measures against hate speech, social exclusion and discrimination of the LGBTIQ community, and to improve their access to justice, employment, housing and healthcare, inter alia by ensuring access to hormone therapy for trans people and respecting their physical and mental integrity;

45.

Calls on Montenegro to properly include LGBTIQ civil society in the work of the new legal gender recognition working group, which should work towards legal gender recognition based on self-determination;

46.

Regrets that persons with disabilities continue to face multiple forms of discrimination, which has been exacerbated by the COVID-19 pandemic, and deplores the lack of alignment of national legislation with the UN Convention on the Rights of Persons with Disabilities; welcomes the fact that the reform of the National Disability Determination System is under way and calls for the effective implementation of strategies to tackle gaps in upholding the rights of persons with disabilities across sectors and policies, including healthcare, the labour market and in administrative and judicial proceedings; stresses the urgent need for a de-institutionalisation strategy;

Reconciliation and good neighbourly relations

47.

Commends Montenegro’s constructive role in regional cooperation and welcomes the implementation of actions under the Western Balkans Common Regional Market; calls for concrete action to find and implement definite and binding solutions to long-running bilateral disputes in a constructive and neighbourly spirit, including border disputes with neighbouring countries and including the demarcation issues with Croatia and Serbia;

48.

Emphasises that all regional economic cooperation in the Western Balkans should be inclusive and acceptable to all six countries, establishing cooperation on an equal footing, while strengthening further alignment with EU standards and the acquis; expresses, in this context, its cautious view towards the Open Balkan Initiative, which does not encompass all six countries, and expresses its conviction that it should be based on EU rules and bring only positive impacts on the EU integration process;

49.

Welcomes the removal of roaming charges between Montenegro and five other Western Balkan states as of 1 July 2021; urges the government and the Commission to negotiate a plan that would lead to the speedy elimination of roaming charges between Montenegro and EU Member States;

50.

Notes Montenegro’s continued cooperation under the Sarajevo Declaration Process; welcomes the adoption of the resolution on Srebrenica of 17 June 2021; welcomes the first ever attendance by the Foreign Minister of Montenegro of the joint commemoration of Morinj camp victims; notes that since 2006 just eight war crime trials have been held and only low-level perpetrators have been tried; underlines there should be no tolerance for genocide denial, inflammatory rhetoric or the glorification of war criminals;

51.

Urges Montenegro to intensify its efforts in proactively prioritising and punishing war crimes and their glorification and in clarifying the fate of missing persons; recalls the need to open up former Yugoslav secret service archives and follow the legal procedures to transfer relevant files to the Montenegrin state archives;

52.

Calls on the Montenegrin authorities to comply fully with the provisions on succession of the former Socialist Federal Republic of Yugoslavia, especially as regards military assets;

The economy

53.

Expresses its concern about the persistently high unemployment rate, in particular among women and young people, and urges the authorities to step up efforts to improve their access to the labour market and address the brain drain, the gender gaps in employment and pay, and the availability of affordable childcare; reiterates the need for better alignment of the education system with the job market; notes the recovery of the labour market and welcomes the steps towards implementing the Youth Guarantee Programme;

54.

Notes the announcement of the ‘Europe Now’ initiative, which aims to achieve higher living standards and a more competitive economy through more sustainable and inclusive economic growth model;

55.

Expresses concern over Montenegro’s sustainable macroeconomic stability and growing vulnerability owing to the increase of its public debt, in particular to China, and the new EUR 750 million loan taken by the government without consulting the Parliament; welcomes efforts made towards decreasing these fiscal vulnerabilities, including those related to China; calls on the Commission to follow up on the macroeconomic situation and vulnerability in the next country report; notes that investments by third countries and foreign companies in strategic sectors may pose a risk of creating unwarranted economic dependencies;

56.

Notes with concern the negative impact of the COVID-19 pandemic on Montenegro’s economy; notes the encouraging signs of Montenegro’s economic recovery in 2021 following a deep recession in 2020, and welcomes Montenegro’s projected strong economic growth; calls for more sustainable economic and financial planning as well as a more timely and constructive response to minimise the damage caused by the pandemic to social groups in the most vulnerable situations; calls on the government to organise genuine social dialogue in the post-pandemic recovery process;

57.

Welcomes the disbursement of a EUR 60 million from the COVID-19 Macro-Financial Assistance package aimed at mitigating economic impacts of the pandemic and preserving macroeconomic stability, as well as the mobilisation of EUR 14,2 billion from IPA III to support Western Balkans partners in meeting the requirements for European Union membership;

58.

Welcomes the announcement of public services digitalisation and development of transactional electronic government services to enhance economic recovery; calls on the Montenegrin government to promote the digital inclusion of all social groups, and encourages the development of targeted preventive measures and incentives to legalise informal businesses and employees, as a large informal sector continues to hinder economic and social development in Montenegro;

59.

Welcomes the signing of the Association Agreement to the Horizon Europe programme 2021-2027;

60.

Strongly condemns the so-called golden passport scheme and regrets its extension until December 2022 despite previous announcements that the scheme would be phased out and without wider consultation of relevant institutions; urges Montenegro to take more action to prevent money laundering; stresses that citizenship by investment carries security risks and potential for corruption, money laundering and tax evasion; calls on Montenegro to immediately terminate the scheme; notes with concern that between December 2020 and 2022 almost 200 citizenship were granted to Russian nationals;

Environment, energy and transport

61.

Welcomes the adoption of a national climate change adaptation plan and encourages Montenegro to speed up reforms in line with the EU’s 2030 climate and energy policy framework and strengthen its implementation procedures; calls on the authorities to make the best use of available EU pre-accession assistance in this regard in order to move towards closing the benchmarks of Chapter 27 (environment and climate change);

62.

Welcomes the clean energy package adopted in November 2021; encourages the authorities to make progress in drafting its national energy and climate plan, focusing on sustainable renewable energy sources and avoiding new investments in fossil gas and coal-based infrastructure and to submit it to the Energy Community Secretariat for its recommendations; calls on Montenegro to increase its efforts to cut its electricity distribution network losses, to diversify its renewable sources and reduce its reliance on climate-vulnerable hydropower generation; welcomes the suspension of concession agreements for small hydropower plants that did now follow appropriate environmental standards and calls for all new projects to respect EU environment, State aid and concession standards; urges the authorities to improve monitoring and implementation of air quality measures in polluted areas;

63.

Regrets that the operation of the Pljevlja coal power plant continues after it exceeded the number of operating hours and reiterates its urgent call on the Montenegrin authorities to immediately bring it into compliance with the Energy Community Treaty; notes with caution the EUR 15 million cost increase for the planned reconstruction of the plant in line with environmental standards, which has not yet started; calls on the authorities to publish the feasibility study and the findings of the public prosecutor’s investigation into the tender process, and to consider a comprehensive transition plan with a view to the plant’s planned closure;

64.

Reiterates its call on Montenegro to take urgent measures to effectively conserve protected areas, and encourages it to continue identifying potential Natura 2000 sites; welcomes the proclamation of three marine protected areas (Platamuni, Katič and Stari Ulcinj) and the nomination of the beech forests in Biogradska Gora National Park for inclusion on the UNESCO world heritage list; expresses concern about damage to bodies of water and rivers related to infrastructure projects, including Lake Skadar, Sinjajevina, Komarnica and others; regrets that despite initial progress the Sinjajevina issue is still not solved; underlines the need for assessment and compliance with the Habitats Directive and the Water Framework Directive; urges the Montenegrin authorities to enforce effective, dissuasive and proportionate penalties for all environmental offences and to root out corruption in this sector;

65.

Regrets the lack of progress on key sectoral reforms in transport policy; calls on Montenegro to further implement its Transport Development Strategy and strengthen administrative capacities for the implementation of trans-European networks; underlines that in the Western Balkans, the construction sector is among the most vulnerable to organised crime and corruption; underlines that infrastructure investments need to comply with EU standards on environmental impact assessment and cost-benefit analyses while respecting EU rules on public procurement and State aid;

66.

Notes China’s increased interest in investing in the Western Balkans and transportation infrastructure projects in Montenegro as part of its Belt and Road Initiative; welcomes the Economic and Investment Plan for the Western Balkans and the EU Global Gateway Initiative as greener, transparent alternatives for financing infrastructure projects;

67.

Notes with regret the damage to the Tara River Basin Biosphere Reserve and the Durmitor National Park UNESCO heritage site linked to the building of the Bar-Boljare highway; calls on Montenegro to implement riverbed revitalisation measures and closely monitor the environmental impact of transport infrastructure construction; expresses concern that the cost of the Bar-Boljare highway was largely underestimated and that no action has been taken in spite of unclear public procurement procedures, the lack of planning documentation and ecological concerns; notes that Montenegro’s application for co-financing from the Western Balkans Investment Framework is pending;

68.

Calls on Montenegro to address illegal waste disposal and to take further steps to improve planning procedures for wastewater facilities with a view to speeding up their construction; notes the lack of progress and rising costs in building essential wastewater treatment plants to prevent sewage pollution in seven municipalities;

69.

Encourages Montenegro to step up its action on institutional and legislative reforms on hunting and fishing, with a particular focus on protected areas and protected species;

o o

70.

Instructs its President to forward this resolution to the President of the European Council, the Commission, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the governments and parliaments of the Member States, and to the President, the Government and Parliament of Montenegro.

(1) OJ L 108, 29.4.2010, p. 1.

(2) OJ L 330, 20.9.2021, p. 1.

(3) OJ C 362, 8.9.2021, p. 129.

(4) OJ C 15, 12.1.2022, p. 100.

(5) Texts adopted, P9_TA(2021)0506.

(6) ECRI conclusions on the implementation of the recommendations in respect of Montenegro subject to interim follow-up, 2 June 2020, https://rm.coe.int/ecri-conclusions-on-the-implementation-of-the-recommendations-in-respe/16809e8273

(7) Resolution of 19 May 2021 on the 2019-2020 Commission Reports on Montenegro (OJ C 15, 12.1.2022, p. 100).

27.1.2023

Official Journal of the European Union

C 32/74

P9_TA(2022)0267

Future of EU-Africa trade relations

European Parliament resolution of 23 June 2022 on the future of EU-Africa trade relations (2021/2178(INI))

(2023/C 32/09)

The European Parliament,

—	having regard to the UN 2030 Agenda for Sustainable Development,

—	having regard to the Paris Agreement,

—	having regard to the joint statement following the Sixth European Union — African Union (AU) Summit of 17-18 February 2022 entitled ‘A Joint Vision for 2030’,

—	having regard to the Commission communication of 11 December 2019 entitled ‘The European Green Deal’ (COM(2019)0640),

—	having regard to the joint communication of the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 9 March 2020 entitled ‘Towards a comprehensive Strategy with Africa’ (JOIN(2020)0004),

—	having regard to its resolution of 25 March 2021 entitled ‘A new EU-Africa Strategy — a partnership for sustainable and inclusive development’ (1),

—	having regard to the AU ‘Agenda 2063: The Africa We Want’,

—	having regard to the AU initiatives launched to achieve the Agenda 2063, including Accelerated Industrial Development for Africa, the Programme for Infrastructure Development for Africa, Boosting Intra-African Trade and Africa Mining Vision,

—	having regard to the Partnership Agreement between the European Union, of the one part, and the members of the Organisation of African, Caribbean and Pacific States, of the other part,

—	having regard to the Commission communication of 18 February 2021 entitled ‘Trade Policy Review — An Open, Sustainable and Assertive Trade Policy’ (COM(2021)0066),

—	having regard to the Economic Partnership Agreements (EPAs), those concluded and those under negotiation, between the EU and 14 sub-Saharan African countries and regions, and other EU free trade agreements with Northern African countries,

—	having regard to the AU Assembly of Heads of State and Government decision of 2 July 2018 on the African Continental Free Trade Area (AfCFTA) (2),

—	having regard to the Kigali Decision of the AU Assembly of Heads of State and Government of July 2016 on the outcome of the retreat of the Assembly of the African Union, in particular paragraph 5 on the financing of the Union (3),

—	having regard to the Commission communication of 12 September 2018 entitled ‘A new Africa-Europe Alliance for Sustainable Investment and Jobs: Taking our partnership for investment and jobs to the next level’ (COM(2018)0643),

—	having regard to its resolution of 13 March 2018 on gender equality in EU trade agreements (4),

—	having regard to the G7 Finance Ministers’ statement of 25 September 2020 on the Debt Service Suspension Initiative and debt relief for vulnerable countries,

—	having regard to the joint communication of the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 1 December 2021 on the Global Gateway (JOIN(2021)0030),

—	having regard to the Commission proposal of 14 July 2021 for a regulation of the European Parliament and of the Council establishing a carbon border adjustment mechanism (COM(2021)0564),

—

having regard to the joint communication of the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 25 November 2020 entitled ‘The EU Gender Action Plan (GAP III) — An Ambitious Agenda for Gender Equality and Women’s Empowerment in EU External Action’ (JOIN(2020)0017),

—

having regard to the joint communication of the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 9 February 2021 entitled ‘Renewed partnership with the Southern Neighbourhood: A new Agenda for the Mediterranean’ (JOIN(2021)0002) and the accompanying joint staff working document (SWD(2021)0023),

—	having regard to its resolution of 10 March 2022 on the EU Gender Action Plan III (5),

—	having regard to Council Regulation (EC) No 2173/2005 of 20 December 2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community (6) and the associated Voluntary Partnership Agreements between the EU and partner countries,

—

—	having regard to its resolution of 10 March 2021 with recommendations to the Commission on corporate due diligence and corporate accountability (7),

—	having regard to the Kimberley Process and to its resolution of 16 December 2021 on the implementation of the Kimberley Process Certification Scheme (8),

—	having regard to Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas (9),

—	having regard to the Commission proposal of 22 September 2021 for a regulation of the European Parliament and of the Council on applying a generalised scheme of tariff preferences (COM(2021)0579),

—	having regard to its resolution of 10 February 2021 on the New Circular Economy Action Plan (10),

—	having regard to its resolution of 20 October 2021 on a farm to fork strategy for a fair, healthy and environmentally-friendly food system (11),

—	having regard to its resolution of 25 November 2021 with recommendations to the Commission on legal migration policy and law (12),

—	having regard to the declaration of the Africa-Europe Forum of Local and Regional Governments of 15 February 2022,

—	having regard to the joint declaration of the business organisations of the Seventh EU-Africa Business Forum of 14 February 2022,

—	having regard to the Africa-Europe Week CSO Forum outcome document of February 2022 entitled ‘No decision about us without us!’,

—	having regard to the joint outcomes of the youth track of the Africa-Europe Week of February 2022,

—	having regard to the UN Conference on Trade and Development (UNCTAD) Economic Development in Africa Report 2021 entitled ‘Reaping the potential benefits of the African Continental Free Trade Area for inclusive growth’,

—	having regard to the Africa-Europe Alliance for Sustainable Investment and Jobs,

—	having regard to the recommendations in the final report of South Africa’s Presidential Advisory Panel on Land Reform and Agriculture of 4 May 2019,

—	having regard to the report of the AU-EU Digital Economy Task Force of 13 June 2019 entitled ‘New Africa-Europe Digital Economy Partnership: Accelerating the Achievement of the Sustainable Development Goals’,

—	having regard to the EU Aid for Trade Progress Report 2021,

—	having regard to the EU multi-stakeholder dialogue for sustainable cocoa, which focuses on the cocoa sector in two of the main producing countries, Côte d’Ivoire and Ghana,

—	having regard to the address of Nana Akufo-Addo, President of Ghana, of 12 December 2021 to the European Parliament in Strasbourg,

—	having regard to the UN General Assembly resolution of 2 March 2022 on the aggression against Ukraine,

—	having regard to the Commission communication of 23 March 2022 on safeguarding food security and reinforcing the resilience of food systems (COM(2022)0133),

—	having regard the European Council conclusions of 16 December 2021,

—	having regard to Rule 54 of its Rules of Procedure,

—	having regard to the opinions of the Committee on Development and the Committee on Agriculture and Rural Development,

—	having regard to the report of the Committee on International Trade (A9-0169/2022),

whereas the European Union (EU) and Africa have an important and long-standing political, economic and cultural relationship; whereas the Sixth Summit of the EU and the African Union (AU) in 2022 led to an agreement on ‘A Joint Vision for 2030’, a new mutually beneficial joint strategy which strengthens the ties between the two unions and will allow for closer cooperation on issues of mutual convergence in the areas of trade, development, security and good governance; whereas its aim is to drive forward our common priorities by preserving together our interests and common public goods, the security and prosperity of our citizens, the protection of human rights for all, gender equality and women’s empowerment in all spheres of life, respect for democratic principles and the rule of law, actions to preserve the environment and biodiversity, sustainable and inclusive economic growth, the fight against inequalities, support for children’s rights and the inclusion of young people and the most disadvantaged; whereas both unions recognise the importance of food security and nutrition; whereas this renewed partnership will be founded on geography, acknowledgement of history, human ties, respect for sovereignty, mutual respect and accountability, shared values, equality between partners and reciprocal commitments; whereas the EU and the AU have committed to strengthening their strategic partnership in order to face new challenges together, such as climate change, post-pandemic recovery and building up resilience to future shocks;

whereas peace is a precondition for sustainable development and for a stable trade and investment environment; whereas the geopolitical global context has been subject to considerable change since the Russian Federation’s illegal, unprovoked and unjustified invasion of Ukraine on 24 February 2022, including when it comes to relations between the EU and Africa; whereas the UN General Assembly condemned Russia’s aggression against Ukraine with an overwhelming majority in its resolution of 2 March 2022, including support from the AU, with 28 of its member states supporting the resolution; whereas 16 of its member states abstained and nine chose not to vote; whereas Russia’s invasion and the consequences of the war are having devastating consequences for global value and supply chains, in particular for access to wheat and other commodities, which is putting many more millions of people at risk of food shortages; whereas food security on the African continent is being affected particularly badly; whereas North Africa imports 60 % of its wheat and other food crops from Ukraine and Russia, and several African countries are facing shortages in imports of fertilisers; whereas the disruption of supply chains brought about by Russia’s war against Ukraine could lead to food riots and social unrest;

C.	whereas achieving the Sustainable Development Goals (SDGs) by 2030 must become the central guideline and benchmark of success of EU-Africa cooperation, including the contribution of trade and investment relations to combating poverty;

D.	whereas migration is part of SDG 10.7, which aims to facilitate orderly, safe, regular and responsible migration and mobility of people;

whereas the EU Trade Policy Review acknowledges the strategic importance of deepening engagement with the African continent and African states by proposing several strands of action to strengthen trade and economic links between the EU and Africa; whereas Europe and Africa are neighbouring continents whose prosperity and stability are closely interlinked and need to be supported by closer and fairer economic integration;

whereas the EU and its Member States are the world’s largest providers of Aid for Trade (AfT), making 38 % of global contributions; whereas Africa continued to receive the largest share of AfT commitments in 2019; whereas the EU intends to increase the share of EU AfT allocated to least-developed countries (LDCs) to help to double their share of global exports, as in 2020, the LDCs’ share of global exports was still 1 % and their share of exports to the EU was still 2 %;

G.	whereas the EU should pursue a ‘Team Europe’ approach in its cooperation with Africa, including more coordination between different Commission directorates-general, European development financing institutions, European export credit agencies, commercial banks and EU Member States;

whereas the EU and its Member States constitute the most important trading partner for Africa, and whereas the value of trade increased in 2021 to EUR 288 billion from a low value of EUR 225 billion in 2020 as a result of the COVID-19 pandemic; whereas the trade deficit in favour of the EU decreased from EUR 24 billion in 2020 to EUR 4 billion in 2021; whereas under existing trade agreements and the EU’s unilateral preferences for developing countries, 90 % of African exports enjoy duty-free and quota-free access to the EU single market; whereas in 2021, over 65 % of goods imported to the EU from Africa were primary goods such as food and drink, raw materials and energy, and whereas in 2021, 68 % of goods exported from the EU to Africa were manufactured goods; whereas this trade structure reflects the structural imbalance and interdependence of the economies involved, and hence keeps the African continent at the lower value end of global value chains; whereas the EU and its Member States have long been Africa’s biggest source of investment, official development assistance, humanitarian assistance and security funding;

whereas the United States did trade in goods with Africa in 2021 of approximately USD 26,7 billion in exports and USD 37,5 billion in imports, the combined value being USD 64,2 billion; whereas despite the Prosper Africa initiative launched by the previous US administration, US trade with sub-Saharan Africa is stagnating and represents less than 1 % of all US trade in goods;

whereas Africa’s share in global trade has declined steadily over the past 50 years and accounts for 2,9 % of world trade according to UNCTAD; whereas the continent has a high level of dependence on imports and commodity-based natural resource exports; whereas interregional trade accounts for only 14,4 % of total continental trade;

K.	whereas the African Development Bank estimates the economic cost from the illicit trade in natural resources to be USD 120 billion per annum, which is 5 % of Africa’s gross domestic product (GDP) (13);

whereas the level of intra-continental trade in Africa is far below its potential, and strengthening it is essential for the continent’s sustainable economic structural transformation; whereas the African and European private sectors have a shared interest in the successful and effective implementation of the AfCFTA, notably with regard to the economic growth and job opportunities it is expected to create; whereas the entry into force of the AfCFTA on 30 May 2019 and the launch of trading under its preferences on 1 January 2021 as a flagship project of the First Ten-Year Implementation Plan (2014-2023) under the AU’s Agenda 2063 have given new momentum to pan-African trade and investment opportunities and have increased Euro-African connectivity;

whereas the AfCFTA will become the world’s largest free trade area in terms of participating countries, including 54 out of the 55 AU member states, creating a market of 1,2 billion people, including a fast-growing middle class, and making it the eighth biggest economic bloc in the world with a combined GDP of USD 3 trillion, which is expected to more than double by 2050; whereas according to the World Bank, each year Africa’s GDP could increase by 1 %, its total employment by 1,2 % and intra-African trade by 33 %; whereas the creation of the AfCFTA represents a major opportunity for the EU, but its success will depend in large part on its ability to mobilise investments and to foster trade exchanges and a corporate presence in Africa;

whereas within the AfCFTA, tariffs on 90 % of tariff lines are to be eliminated, with a commitment by non-least-developed countries to liberalise tariffs on non-sensitive goods over five years and LDCs over 10 years; whereas 7 % of tariff lines are on sensitive goods and non-least-developed countries will liberalise tariffs on sensitive goods over 10 years and LDCs over 13 years; whereas 3 % of tariff lines can be excluded from liberalisation; whereas the AfCFTA is an important step in leaving behind the current model for formal trade in Africa, which is characterised by long border crossing times, extensive regulatory requirements and high taxes;

whereas the AfCFTA aims to be, in addition to a trade-liberalising instrument, an enabler of inclusive growth and sustainable development in line with the Agenda 2063; whereas the effective and coordinated implementation of the AfCFTA as a continental regime is essential for enhancing intra-African trade and will be a major challenge, with different layers and commitments arising from trade agreements, regional economic communities and customs unions requiring extensive measures for the development of cross-border transport infrastructure and enhanced trade facilitation to better enable cross-border value chains; whereas governance reforms targeting trade facilitation, non-tariff barriers to trade, compliance with common technical and health-related product standards and labour law, trade remedies and safeguards are essential to achieve the AU’s aspirations and to make the AfCFTA an effective and predictable regime; whereas like every trade agreement, the AfCFTA will create positive and negative effects and it is essential to have proper support measures in place to mitigate any adverse effects and ensure that the AfCFTA can contribute to the advancement of small and medium-sized enterprises (SMEs) and in particular ensure that women and youth-led companies can benefit from new opportunities;

P.	whereas with regard to trade and in particular rules of origin and cumulation, the EU’s diverse arrangements with African countries have led to a fragmentation of the African continent, thus creating tariff-related barriers and hindering the building of cross-border value chains within the AfCFTA;

whereas African states are not homogeneous; whereas the African continent is particularly vulnerable to external ‘shocks’ given its high rate of dependency, not only on external financial resources and revenue such as foreign remittances, foreign direct investment, tourism and external aid, but also on imports of manufactured goods;

whereas Africa is a continent of hope and opportunity and is perceived as such by a growing number of its young people; whereas Africa is the youngest continent in the world, with a median age of 19,8 years and 60 % of the population under the age of 25; whereas by 2050, the population of Africa will have doubled, from some 1,2 billion people to some 2,4 billion, and whereas, by the same year, 50 % of the global population under 25 years of age will be in Africa, which will be a significant challenge to the economies and democratic governance of African countries and will have an impact on geopolitics, global trade and migration; whereas Africa is today home to four times as many children as Europe and whereas 70 % of the population of sub-Saharan Africa is under 30; whereas the increase in the population and the rising number of middle-class individuals will require a proportional increase in food supplies, and therefore the agri-food sector should open up economic and employment opportunities for young Africans, whose participation in the sector will also be essential for ensuring generational replacement and for renewing the agri-food system; whereas Africa’s young people are in need of quality education and employment and business opportunities to enable them to contribute to their countries’ growth and sustainable development; whereas Europe’s population is ageing and many economic sectors are already reporting shortages in qualified labour and problems in finding apprentices; whereas economically empowering women and young people in Africa contributes both to economic growth and to advancing their position in society;

whereas the SDG of zero hunger aims to end hunger by 2030 and achieve food security and improved nutrition; whereas progress on this goal has slowed in recent years, with more than 800 million people on our planet still going to bed hungry every night; whereas the Food and Agriculture Organization (FAO) has forecasted that the number of people in Africa suffering from hunger will rise significantly from 280 to 300 million, placing it by 2030 on a par with Asia as the regions with the highest number of undernourished people; whereas food insecurity has worsened in the continent and 21 % of the population was malnourished in 2020; whereas the 2021 UN Food Systems Summit established that driving these unwelcome trends are the increasing frequency and intensity of conflict, climate variability and extremes, economic slowdowns and downturns, and high levels of inequality, the latter increased by economic downturns in 2020, which were mainly a consequence of COVID-19 containment measures across the world;

whereas climate change and environmental degradation are existential threats to Africa, the EU and the entire world, and require joint responsiveness and substantive investments in resilience; whereas EU-Africa trade relations must play a crucial role in addressing the climate transition and fostering common efforts to achieve sustainable growth, inclusive economic development and access to public goods, notably through the promotion of sustainable supply chains and trade diversification in the transition to a low-carbon economy; whereas the EU has committed to turning itself into the first climate-neutral continent by 2050 and to decoupling its economic growth from resource use; whereas African countries have so far contributed and are contributing very little to greenhouse gas emissions, regardless of whether this is measured through historical, current or expected emissions and in total or per capita terms, while production, lifestyle and consumption habits in the EU do contribute to climate change; whereas the effects of climate change will be catastrophic, particularly for many African states, some of which will be among the worst impacted; whereas in sub-Saharan Africa, adaptation costs to avoid the even higher costs of additional disaster relief are estimated at USD 30–50 billion per year over the next decade, or 2-3 % of regional GDP; whereas the 27th Conference of the Parties to the UN Framework Convention on Climate Change (COP27) will take place in the African state of Egypt in 2022; whereas the transition to a decarbonised world must be just and equitable; whereas the EU has proposed to make energy access one of the main pillars of cooperation with Africa under the European Green Deal;

whereas the EU and the AU have announced an Africa-Europe investment package of EUR 150 billion over a period of six years, an average of EUR 25 billion a year, which will support common ambitions for the 2030 Agenda and the AU Agenda 2063 and will have investment, health and education components; whereas these investments should not add to the debt burden of African countries;

whereas about 34 % of African households live below the USD 1,90 per day international poverty line, and around 40 % of the continent’s total wealth is owned by approximately 0,0001 % of its population; whereas large disparities remain in the development of African countries; whereas given the expected rapid growth of the African population, it is even more essential to ensure that it will be accompanied by sustainable development, quality education and decent job creation;

W.	whereas only around one in three African countries have decent work country programmes, which have been established as the main vehicle of delivery for International Labour Organization (ILO) support tailored to the priorities and outcomes of each country;

whereas the Commission has launched the Sustainable Cocoa Initiative, co-led by its Directorate-General for Trade and its Directorate-General for International Partnerships and focused on Ghana and Côte d’Ivoire, with Cameroon as an observer, with the main objectives being to ensure a sustainable living income for farmers, to achieve the elimination of child labour in the cocoa supply chain and to achieve the elimination of deforestation for the purposes of creating cocoa plantations;

Y.	whereas the 2021 UNICEF/ILO report on child labour indicates that child labour has been on the rise in sub-Saharan Africa since 2012 and that this upward trend will continue because of the pervasive effects of the pandemic;

whereas the COVID-19 pandemic and its economic consequences set back growth across Africa in 2020 and may have thrown an additional 30 million people into poverty and exacerbated the prevalence of child labour; whereas post-pandemic recovery packages signal a sea change in policy consensus; whereas the capacity of public funds to support recovery differs across regions, causing an imminent risk of inequalities being exacerbated; whereas the full vaccination rate was no higher than 15 % in Africa as of March 2022 (in comparison with 73 % in the EU); whereas millions of vaccines have to be destroyed before they can be used in poorer nations because of a rapidly approaching expiry date; whereas the EU and the AU have committed to supporting fully fledged African health sovereignty to enable the continent to respond to future public health emergencies, and have committed to supporting, to this end, a common agenda for manufacturing vaccines, medicines, diagnostics, therapeutics and health products in Africa, including through investment in production capacities, voluntary technology transfers and the strengthening of the regulatory framework to enable equitable access to vaccines, diagnostics and therapeutics; whereas Parliament welcomes all measures in support of the African health system and the continent’s health capacities;

AA.

whereas a sustainable and inclusive recovery in Africa from COVID-19 will require an additional USD 1 trillion annually, on top of the USD 2,5 trillion annual gap in finance for the SDGs that predated the crisis; whereas this endeavour constitutes an important investment opportunity; whereas the European Investment Bank (EIB) has stepped up its efforts to help African partners respond to the COVID-19 health and economic crisis by providing EUR 5 billion to support more than EUR 12 billion of transformational private and public investment across Africa in 2020;

AB.

whereas the Sixth EU-AU Summit underlined the urgency of the World Trade Organization’s (WTO’s) contribution to the fight against the pandemic and to the recovery of the global economy, and committed the parties to working constructively towards an agreement on a comprehensive WTO response to the pandemic that includes trade-related and intellectual-property-related aspects; whereas the European Commission and the governments of the United States, India and South Africa have reached a compromise proposal in the WTO to be presented to the WTO member states that would facilitate a waiver of certain intellectual property rules, in particular certain criteria of compulsory licensing provisions under the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), while it does not yet include provisions regarding diagnostic tools, devices and treatments as demanded by African states; whereas a broader discussion in the WTO is yet to commence;

AC.

whereas the press release for the report of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services Workshop on Biodiversity and Pandemics notes that ‘pandemic risk can be significantly lowered by reducing the human activities that drive the loss of biodiversity, by greater conservation of protected areas, and through measures that reduce unsustainable exploitation of high biodiversity regions’;

AD.

whereas according to the International Monetary Fund, about 60 % of low-income countries are at high risk of or are already in debt distress as a result of the COVID-19 crisis, while in 2015 that figure was below 30 %; whereas governments of highly indebted countries in both Europe and Africa find it difficult to mobilise much-needed investment in the preconditions for economic development, such as a qualified work force and modern infrastructure;

AE.

whereas the AfCFTA secretariat has established a USD 1 billion AfCFTA Adjustment Fund, funded by the African Export-Import Bank (Afreximbank), which is aimed at supporting countries that would in the short term experience revenue losses as a result of reducing or eliminating their tariffs; whereas the AfCFTA secretariat estimates the actual need to be about USD 7 billion;

AF.

whereas the EU is the world’s biggest importer and exporter of agri-food products; whereas despite the fact that Africa has the most arable land in the world, AU countries are net food importers, with farmers producing below their potential, partially due to the effects of certain European domestic policies and practices on prices that African farmers can achieve for their products on local markets, increased by tariffs that render African processed food exports uncompetitive; whereas common-agricultural-policy-supported exports of EU milk powder to West Africa have increased, and whereas the tripling of exports since the EU lifted its milk quotas in 2015 has had serious consequences for many local herders and farmers whose milk prices cannot compete with the very low prices for milk powder; whereas respecting fair conditions for EU-Africa trade in agricultural products should be the baseline for EU and African exports and imports of food and other agricultural products, in addition to the need to ensure that agricultural exports do not contradict the goal to establish a more resilient food sector in Africa; whereas to advance sustainable agriculture on both continents, room should be made for agriculture reform models in Africa and Europe that offer farmers dignity, strengthen domestic and regional resilience and can unlock the potential for both continents to ensure abundant nutrition and become self-sustaining in food, as well as contributors to food security in other regions of the world; whereas family farming provides for up to 70 % of the food supply in the continent that is actually consumed by Africans, rather than being farmed for the purpose of being exported; whereas according to the UN Development Programme’s Africa Human Development Report 2016, gender inequality is costing sub-Saharan Africa 6 % of the region’s GDP, jeopardising the continent’s efforts to achieve inclusive human development and economic growth; whereas equalising women’s access to agricultural inputs could raise crop production by up to 19 %, boost agricultural and overall GDP and lift hundreds of thousands of people out of poverty (14);

AG.

whereas in 2020, there was an almost 40 % increase in the number of people affected by food insecurity compared with the previous year; whereas the war in Ukraine demonstrates the interconnectedness of food security and the global market, and the dependency of some African countries on food imports from a small number of exporting countries or regions; whereas overdependence can leave countries vulnerable to external shocks; whereas the Food & Agriculture Resilience Mission initiative was presented at the G7 summit on 24 March 2022, with concrete measures to ensure food security globally, and notably in the African countries most impacted by the food production disruption resulting from the war in Ukraine; whereas household surveys by the International Monetary Fund found that broadening access to early warning systems and information on food prices and weather, even by means of simple text or voice message to inform farmers when to plant, irrigate or fertilise their crops, can enable climate-smart agriculture and has the potential to reduce the risk of food insecurity by 30 percentage points;

AH.

whereas micro, small and medium-sized enterprises in low and middle-income countries across Africa suffer, in terms of intra-African trade, from significant transaction costs and delays caused by limited cross-border relations between banks, issues with foreign currency availability, high service costs for intermediaries and the need to rate the selling and purchasing currencies against the US dollar; whereas technological developments and cooperation between central banks such as under the Pan-African Payment and Settlement System can offer a way out of this problem;

AI.

whereas negotiations are taking place in the AfCFTA on the planned liberalisation of services, starting with five priority sectors identified by the AU, namely transport, tourism, communications, financial and business services; whereas services account for 54 % of African GDP and 75 % of foreign direct investment;

AJ.

whereas the AU’s Digital Transformation Strategy for Africa (2020-2030) envisions a secured digital single market for Africa by 2030 where movement of persons, services and capital is ensured and individuals and businesses can seamlessly access and engage in online activities in line with the AfCFTA; whereas the digital economy in Africa offers prospects for increased job creation, particularly for SMEs, which provide an estimated 80 % of jobs across the continent and are the backbone of the African economy; whereas the digitalisation of trade and the promotion of paperless trading systems has significant potential to support small-scale traders, including women-led enterprises and young entrepreneurs; whereas substantive investment in internet infrastructure is needed to facilitate the digital participation of the African population, of which only 33 % had access to the internet in 2021; whereas our African partners are also actively seeking EU assistance in enhancing Africa’s digital infrastructure and ensuring proper connectivity and internet access across the continent; whereas Africa is trailing far behind the USA, China and to a lesser extent Europe when it comes to digital technological developments; whereas according to UNCTAD, Africa accounts for less than 1 % of global exports of digitally deliverable services;

Affirms that EU-Africa trade and investment relations form part of our joint endeavour to achieve the UN SDGs by 2030 and the objectives of the Paris Agreement; stresses that Africa is a key geographical priority in the EU’s new trade strategy, and underlines the importance of a more robust dialogue between the EU and Africa; emphasises, in this respect, that the EU should invest more efforts in taking the partnership beyond the traditional ‘donor-recipient’ relationship; stresses that the modernisation of EU-AU trade and investment relations can bring enormous benefits in terms of stimulating economic growth, regional integration, poverty reduction and job creation, can contribute to the recovery from the COVID-19 pandemic and to the green and digital transformation of the economies of countries in both the EU and the AU, as well as among our global trading partners, and must adhere to the principle of policy coherence for development as enshrined in Article 208 of the Treaty on the Functioning of the European Union; underlines that geographical proximity and long-standing historical and cultural ties are increasingly reinforced by growing trade exchanges; stresses that the participation of civil society organisations must be a cornerstone of the EU-AU strategy to achieve the UN SDGs;

Calls on the Commission to deepen and better structure its cooperation with our African partners and therefore to establish a regular high-level policy dialogue, to include a parliamentary dimension also involving the European Parliament; calls for this dialogue to be complemented by an exchange at the level of regional groupings, as well as individual states, and by a parallel dialogue with civil society stakeholders in Africa and the EU as vital elements in advancing the EU’s equal partnership with Africa;

Stresses the importance of creating a resilient, competitive and solid infrastructure and industrial basis in Africa, as laid down in the AU’s Agenda 2063, aiming at the development of resilient value chains and high added value processing of raw materials in Africa as a major avenue towards quality job creation; calls on the Commission and European enterprises and investors, including the EIB, to apply modern, sustainable and, wherever possible, climate-neutral production technologies in African industrialisation projects; insists that social partners be involved in all stages of promoting industrialisation; stresses, in this regard, the need to support Africa in tailoring its own independent macroeconomic, fiscal, monetary and trade policies and calls on the Commission to enable Organisation of African, Caribbean and Pacific States (OACPS) countries to protect their infant industries, including through technical and financial support, and to provide for the right to legislate respectively; stresses that efforts to protect the environment should be placed at the centre of cooperation policies and programmes in support of industrialisation and the creation of decent jobs in Africa, to be established and implemented by all responsible stakeholders from the two continents;

Calls on the Commission to promote sustainable investments to move towards a carbon-free economy, in line with its pledge in the Glasgow Climate Pact, while ensuring responsible and sustainable sourcing and management of natural resources and raw materials, as well as sustainable waste management in line with its Green Deal objectives;

Underlines the fundamental role of functioning state institutions, authorities and infrastructure, and considers that their absence can be a major obstacle to trade; stresses, in this regard, that all African countries must improve legal certainty, as it is vital for any kind of trade to develop; calls on the Commission to work closely with its African counterparts to guarantee a business environment that is conducive to investment;

Stresses the need to adapt the economic and trade proposals of the new Agenda for the Mediterranean, adopted by the Commission on 9 February 2021, to the current emergency situation; calls for the smooth implementation of the trade-related projects under the Economic and Investment Plan as soon as possible;

Underlines that the EU needs an entirely new foundation for its economic partnership with Africa, on equal grounds and based on equality, mutual respect and understanding, including of the challenges African partners face in the context of trade and investment relations, taking into account the changing dynamics and addressing continuous imbalances and shortcomings; believes that this is a unique opportunity to revive trade relations between the two continents, and that the summit has established a pathway for the EU and AU to engage in a renewed, mutually beneficial, sustainable partnership based on solidarity and cooperation, and to reshape economic, commercial and trade relations with the aim of empowering Africa, including by ensuring fair and ethical trade relations which favour African continental integration; underlines that the EU-Africa trade relationship should promote human rights and labour rights, good governance, the rule of law and gender equality, and calls on the Commission to promote these elements within the context of EU-Africa trade relations;

Urges the Commission to help end the ‘fill and finish’ role of African nations by supporting a multi-stakeholder system which will allow AU nations to produce their own vaccinations, an ability already demonstrated in the production of HIV vaccines, which will open spaces for the development of scientific potential and decrease dependence on a handful of corporations worldwide;

Stresses that the EU response to global vaccination efforts to mitigate the COVID-19 pandemic led to a disruption in EU-Africa relations; underlines that the outcomes of the Sixth EU-AU Summit must be a new starting point for advancing EU-Africa relations; calls on the Commission to engage with African partners bilaterally and in a structured manner and to pursue regional and multilateral engagement to advance EU-Africa relations; calls on the Commission to engage with Parliament on a discussion on the TRIPS waiver compromise negotiated by the ‘quad’ of the EU, the US, India and South Africa; calls on the Commission to remain flexible and pragmatic in the discussions in the WTO aimed at reaching a compromise on a targeted and temporary TRIPS waiver with other WTO members so as to move towards a conclusion and meaningful results on trade- and health-related aspects by the 12th Ministerial Conference;

10.

Reiterates the importance of peace for positive social, environmental and economic development; takes note of the lack of support for the UN General Assembly resolution condemning the aggression against Ukraine among many African governments, and that African support for EU positions cannot be taken for granted; calls on the Commission and the European External Action Service to explore the variety of reasons for the scepticism, and to increase diplomatic efforts to build common positions against military aggression on both continents;

11.

Supports the objectives and aspirations of the AfCFTA as expressed in its preamble; supports also the Agenda 2063 aspirations of creating a continental market with the free movement of persons, capital, goods and services, in order to deepen the economic integration of the African continent; considers the AfCFTA an ambitious economic integration initiative which presents a major opportunity for African countries to boost inclusive growth, enable sustainable development, reduce poverty and improve living standards, generate high numbers of decent jobs, increase the competitiveness of African countries, promote green technology and energy, increase the sustainability of public finances, fight corruption and promote good governance, and achieve structural transformations within participating states; calls for the EU to actively support the AfCFTA; stresses that indicators in measuring economic success in Africa and the EU should be improved and diversified beyond GDP growth and recommends referring also to indicators such as the Gini coefficient, the Genuine Progress Indicator, the Human Development Index, the Theil index to measure export diversification, indicators pertaining to gender discrimination, and in particular the SDG progress reports;

12.

Recalls that between 2014 and 2020, the EU allocated more than EUR 74 million in funding to the establishment of the AfCFTA through its Pan-African Programme, and that the funding has been used for capacity building in the negotiation, ratification and implementation of the AfCFTA Agreement; calls for the EU and its Member States to continue their financial and technical support to the implementation of the AfCFTA; notes that for the AfCFTA to deliver on its promises and go beyond mere trade liberalisation in lifting people out of poverty, countries in Africa need the policy space to adopt policies that enhance consistency between trade measures, diversification objectives, responding to population needs, sustainability and inclusive growth;

13.

Calls on the commissions of both the AU and the EU to facilitate the development of regional value chains and better regional infrastructure in Africa; stresses the need for consistent investments and public oversight in the development of general and cross-border sustainable infrastructure; points out the need to invest significantly in transport infrastructure, connectivity and digitalisation in order to facilitate regional trade and thus the diversification and resilience of local, regional and continental value chains; notes that removing barriers to intra-African trade can facilitate the growth of regional value chains, which can facilitate means for African companies, and in particular SMEs, to internationalise; stresses that the Global Gateway should contribute to the development of infrastructure to increase intra-African trade and invites the AU partners to respond to the proposals of Team Europe for joint infrastructure projects; calls on both EU and African partners to implement the jointly identified priority projects without further delay, and to create project-related profit opportunities for local companies and job opportunities for the local population, while strictly observing high environmental and labour standards and the Paris Agreement; underlines the need for the further development of infrastructure for rural areas, and points out that in sub-Saharan Africa an estimated 40 % of staple foods being transported do not make it to the market owing to poor infrastructure and the lack of cooling and storage facilities; calls on the European Commission and the AU to map the regional value chains between the EU and Africa, beyond bilateral trade flows, and to perform a SWOT analysis, notably with a view to identifying avenues for nearshoring and areas of collaboration such as the circular economy and the greening of supply chains; stresses the importance of further developing the infrastructure and connections between sub-Saharan Africa and North Africa, and between West and East Africa;

14.

Underlines the importance of including gender equality and gender mainstreaming in EU-Africa trade relations as an essential component to foster inclusive and sustainable growth; stresses that trade and investment relations have the potential to promote gender equality and to contribute to the economic and social empowerment of women and to more equal and resilient economies and societies; considers that the EU-African partnership should provide particular support to female and youth entrepreneurship in rural and urban areas, including through small producer organisations, and that to do so it is essential to support equal access to economic and productive resources such as financial services, as well as to markets, and to safeguard land rights; welcomes the Commission’s work on data collection and analysis to better understand the impact of trade policy on women; calls on the Commission to engage with African partners to promote gender equality and women’s empowerment in EU-Africa trade relations; calls on the Commission to gender mainstream EU-Africa trade and investment relations; calls on the Commission to include standalone gender chapters in EPAs; emphasises the essential role of rural women in agricultural and rural economies across the African continent, in particular with regard to food security; recalls that almost half of agricultural work in Africa is done by women; calls for the development of exchanges between African and EU female entrepreneurs by means of platforms that enable networking, experience-sharing and the running of common projects; encourages the advancement of inheritance rights for women and girls and calls for the EU to support partner countries, particularly with regard to their recognition of women’s full entitlement to land rights;

15.

Underlines the need to establish a constructive public-private dialogue and to enable cultures to evolve with a view to the development of an intelligent network of ecosystems, and the eventual hybridisation of the public and private spheres; stresses that, against this backdrop, the EU must continue to work with African countries on facilitating and promoting private investment on the continent, as public investment is not enough on its own; calls for a further increase in public and private trilateral partnerships to develop new trade links in sectors of common interest such as energy, industry, transport;

16.

Stresses the key role attributed to the EU External Investment Plan, and in particular the European Fund for Sustainable Development as its first pillar, in shaping EU trade and investment policy towards Africa, in parallel with the EPAs; recalls its emphasis put on improving the investment climate in partner countries; stresses that the EU’s commitment to boost private-sector investment for achieving the SDGs must be tantamount to establishing mandatory human rights, social rights and environmental due diligence obligations, based on the UN Guiding Principles on Business and Human Rights, which should apply to the whole value chain and include provisions on access to justice;

17.

Calls on the commissions of both the AU and the EU to create and facilitate the conditions required for African countries to change the nature of their integration into the world economy, from sources of primary commodities, to exporters of intermediate and final products, while maintaining policy space for the safeguarding of infant industries; recommends enhanced cooperation with universities and other research facilities in Africa in order to establish a platform for technology and knowledge exchange; highlights, in this context, the opportunity that developing and investing on emerging markets represents for both continents, in particular in the manufacturing sector; further stresses the importance of strengthening links between EU and African businesses in this regard, in order to help create value and raise standards and therefore improve competitiveness;

18.

Stresses that efforts geared towards supply chain diversification create opportunities for both continents and believes that the EU and the AU should work together to create the conditions and incentives required to support the diversification of investments and the production of EU and African companies;

19.

Reiterates that the EU and the AU share a common interest in a stable and rules-based multilateral trading system, which contributes to advancing economic growth in the EU and on the African continent; emphasises that the reform and modernisation of the WTO and the WTO rulebook is an important area for cooperation between the EU and the AU, and calls on the partners to work together to create a fair and equitable trade and financial global architecture through the revitalisation of the WTO, including the finalisation of the Doha Round to better take the interests of the countries in the Global South into account, as agreed on by the WTO membership;

20.

Highlights that the WTO-led Aid for Trade initiative aims to help least developed countries, in particular, to build the supply-side capacity and trade-related infrastructure they need to implement and benefit from WTO agreements and, more broadly, expand their trade; believes that, in this sense, this initiative is a key component in trade relations with Africa, particularly in the aftermath of the COVID-19 crisis;

21.

Points out that the Aid for Trade agenda should play a role in mobilising resources to address trade-related constraints, financing infrastructure needs and helping to build the capacity of African countries to establish appropriate regulatory structures;

22.

Underlines the importance of strengthening collaboration among the WTO, UNCTAD, the ILO, the UN Environment Programme, the FAO and other UN bodies to keep the multilateral vision alive by driving a common agenda for shared prosperity and in conformity with policy coherence for development;

23.

Stresses that accountable and transparent global governance should feature greater participation of parliamentary bodies, as directly elected parliamentarians can function as a crucial link between citizens and the multilateral system; emphasises the importance of the work of the Parliamentary Conference on the WTO jointly organised by the European Parliament and the Inter-Parliamentary Union, and calls for more efforts to increase the involvement of parliamentarians from Africa and in particular the Pan-African Parliament; underlines the need to ensure that parliamentarians have better access to trade negotiations and are involved in the decision-making and review processes of the WTO; calls for the strengthening of the role of both the European Parliament and the Pan-African Parliament, as well as the national parliaments of all WTO member states in the mandating phase of international trade and investment negotiations;

24.

Stresses that the renewed EU-Africa relationship should have at its heart the shared best interests of both continents and should build on a strong partnership; concludes that a partnership of equals, based on full cooperation between the AU and EU, is an appropriate response to global competitors; is convinced that, if the EU’s geopolitical competition is driven only by demarcation from other world powers, continuing the traditional policy of influence stands in the way of mutually beneficial cooperation; points out that fair competition of interests is not alien to market economies and that African partners reserve the right to benefit from a demand situation in their favour;

25.

Is convinced that EU interests, such as access to raw materials, shaping economic relations to promote the EU economy, and managing migration, i.e. by tackling its root causes, can best be pursued through a new partnership of equals; is convinced that a new partnership of equals can enable the EU to effectively strengthen its strategic autonomy;

26.

Stresses that the EU should favour constructive engagement on all aspects of migration, forced displacement and mobility, working to ensure that migration takes place in a safe and well-regulated manner; considers it essential to build a long-term shared strategy to link trade, development and migration policies, as established in several European Council conclusions, in particular those adopted on 16 December 2021, as such a strategy could play a key role in fighting human smuggling and illegal migration routes from African countries to the EU;

27.

Underlines that enhancing the quality of intercontinental trade will require regularising mobility and migration on the African continent; insists — though trade policy may, in certain circumstances, minimise forced migration through job creation — neither the EU’s trade policy nor its development assistance should be leveraged to secure non-EU countries’ cooperation on migration, which could undermine the EU’s principles and values and the primary objective of poverty reduction; recalls, in this regard, that forced migration can only be resolved by creating legal pathways, enhancing international protection and addressing the broader development, political, climate and humanitarian crises that lead to forced displacement;

28.

Notes the impact of COVID-19 on supply chains; insists on the importance of building more resilient supply chains in the post-pandemic world in both the EU and the AU by reinforcing strategic autonomy, identifying dependencies, better addressing vulnerabilities and supply disruptions, diversifying production and investing more in game-changing enterprises that have integrated social, environmental and health objectives into their business models; recalls Parliament’s commitment to the European Green Deal and trade initiatives aimed at achieving its objectives, including but not limited to the carbon border adjustment mechanism, the legislative proposal on mandatory due diligence, and the proposal on deforestation-free products; insists that the Commission must carefully monitor the impact of these initiatives on EU-Africa trade and present accompanying measures to mitigate any short-term disruption; is convinced that in the long term, these legislative initiatives will result in more resilient and sustainable global value chains, benefiting citizens and businesses in both the EU and Africa;

29.

Regrets the major impact of the unprovoked and unjustified Russian Federation invasion of Ukraine on the increased price of energy, fuels, raw materials and agricultural products, causing a severe increase in production costs which is jeopardising production continuity and may lead to supply chain disruptions; calls for reinforced action at international level to ensure that policy decision-making has food security at its core, in order to avoid scarcity and ensure nutritional security in the most vulnerable countries, particularly on the African continent, and to address food security by trade means and prevent obstacles to international trade in food and raw materials;

30.

Believes that the EU can contribute to significantly reducing Africa’s current dependence on imports of food, seeds, fertilisers and pesticides through financial and technical support, policy dialogue, knowledge exchange and new technologies and by promoting African innovation;

31.

Calls for a large-scale European-African investment offensive that provides incentives for a significant increase in private investment in African states and enables comprehensive public investment in infrastructure and in combating climate change; welcomes, in this context, the commitment made at the Sixth AU-EU Summit to mobilise EUR 150 billion as part of the Global Gateway; calls for this investment initiative to be significantly expanded, together with the EU Member States;

32.

Calls for the investment offensive to focus primarily on projects to develop and expand renewable energies, secure water supplies and climate adjustment measures, and build public infrastructure; expects all investment projects to involve African partner companies and to pay close attention to creating local employment and deepening African value chains; calls on the Commission to identify appropriate investment projects in coordination with local, regional and state partners in Africa and to ensure their implementation;

33.

Calls for the EU and its Member States to make a commitment to support African countries in implementing ambitious and just climate action; stresses that EU financing under the new Neighbourhood, Development and International Cooperation Instrument must be used to champion a human-rights-based approach that makes local communities and indigenous peoples central to climate, environmental and development efforts, starting with civil society and community consultation;

34.

Notes that the previous blended finance mechanisms have not succeeded in stimulating sufficient private investment; calls, therefore, for the investment initiative to include local SMEs, which make a special contribution to the diversification of the economy and to the creation of employment;

35.

Stresses that the EU should deepen its economic and trade relations with Africa through investments that create decent jobs and promote human, labour and environmental rights; underlines the discrepancy in access to finance within African regions and countries, which is due to various factors; underlines that the emphasis should be placed on investments in new infrastructure, such as digital and green infrastructure, and renewable energy production; welcomes the Framework Project Cooperation Agreement signed in October 2021 between the EIB and the European Bank for Reconstruction and Development (EBRD); welcomes the Memorandum of Understanding signed in 2021 between the EBRD and the African Development Bank to promote sustainable private-sector development in Africa; calls on the Commission to foster investment in the African continent through innovative financial instruments to increase capital flows and reduce risks; encourages the EU and African countries to explore the negotiation of sustainable investment facilitation agreements, as announced in the EU Trade Policy Review (15), which enhance the capacity of governments to regulate in the public interest, and balance the rights and obligations of investors and communities with environmental concerns; recalls the key importance of consistent investment in public services, in research capabilities and in the promotion of economic sectors in which countries or regions have the potential to acquire a comparative advantage; recommends boosting investment opportunities in Africa, in particular by providing more risk capital and guarantees aimed at facilitating investments; welcomes the European Fund for Sustainable Development Plus (EFSD+) which allows development finance institutions to take more risk in their investment programmes; recalls that the Addis Ababa Action Agenda on financing for development highlighted the need to mobilise more domestic resources for achieving the SDGs;

36.

Encourages African countries, at a time when UNICA reports that many of the investment treaties concluded in the 1990s and early 2000s have recently expired or are about to expire, to review and reform their investment and double taxation treaties according to their development needs; believes that the AfCFTA and the ongoing regional integration efforts provide a good opportunity to rebalance the international investment regime so that it becomes responsible, equitable and conducive to sustainable development;

37.

Highlights that the agreement between the EU and the OACPS initialled in April 2021 lacks mechanisms to enforce due diligence on environmental standards, human rights and the principle of free prior and informed consent, which are even more vital given the agreement’s commitments to facilitate international investment agreements; stresses that the EU should take into account the different levels of development and ensure that its trade agreements are consistent with the regional economic integration priorities of the partners;

38.

Urges the Commission and the EIB, as the lending arm of the EU, to prepare an effective and easily accessible microcredit scheme and, in this connection, to strengthen its capacities to support private-sector development in Africa; calls on the EIB, in this regard, to dedicate more funds to African micro, small and medium-sized enterprises through the EFSD+ blended budget; underlines, in this context, the high potential of microfinancing to further empower SMEs and local farmers; recommends establishing microcredit schemes that would offer access to credit without the need for collateral or other financial guarantees; stresses the importance of such a scheme for the empowerment of women and young people, whose access to financing needs to be significantly improved; calls, in this regard, for appropriate accompanying measures, such as technical and legal assistance and counselling, as well as alliances with local partners on the ground, in order to make such microcredits truly accessible; considers that supporting the social economy and cooperatives, as well as microcredit schemes, will contribute to the much-needed formalisation of the informal economy, through clear strategies based on ILO Recommendation 204;

39.

Calls for the EU to increase its support to African countries and the AU for combating illicit financial flows and tax evasion by companies, and calls for initiatives to ensure that corporations do not contribute to such capital outflows from African countries; recalls that Africa loses about USD 88,6 billion in illicit capital flight every year, equivalent to 3,7 % of the continent’s GDP; calls for joint efforts to ensure that taxes are paid where profits and real economic value are created, in order to stop continued tax base erosion and profit-shifting; calls for increased cooperation between the AU and the EU and their member states in the international promotion of measures addressing corporate tax transparency issues, including improved cooperation with regard to the EU’s Non-Financial Reporting Directive (16); calls on the Commission to also address illicit financial flows and tax evasion in its AfT schemes and by including respective chapters when negotiating the modernisation of EPAs;

40.

Stresses that LDCs have an interest in and are strong supporters of rules-based multilateral trading systems and that their integration into the international trading system should be improved; is aware of the fact that special and differentiated treatment is a founding principle of the WTO; calls on the Commission to ensure that developing countries can fully exercise their rights under the WTO special and differential treatment provisions, most notably to ensure their food security; is of the opinion that overdependence on a single country or geographic region for any given product can leave countries vulnerable to external shocks, which could have a hugely damaging impact on the food security of developing countries; believes, therefore, that the Commission should support our African partners in diversifying their trade flows in order to increase their resilience; calls for joint efforts with the EU’s African partners at WTO level to find multilateral solutions for major divisions in global agricultural policy issues, as discussed in the WTO Agriculture Committee;

41.

Stresses the need for multilateral trade rules that are supportive of substantial and sustainable agriculture based on comprehensive agrarian reforms in various African states to be carried out in order to guarantee food security across the continent; stresses, in this regard, the importance of the protection and promotion of the right of local communities to have access to and control natural resources such as land and water; deplores the fact that land-grabbing is rife in Africa; is concerned by the scale of land acquisition by foreign investors in Africa, which is concentrated in countries with weaker governance structures, and could represent a threat to food security and access to land and water; stresses the importance of launching an inclusive process with the aim of guaranteeing the effective participation of civil society organisations and local communities in the development, implementation and monitoring of policies and actions related to land-grabbing; calls for the Voluntary Guidelines on the Responsible Governance of Tenure to be observed in all projects that promote the protection of land rights, including in trade, and also for measures to ensure that projects do not endanger the land rights of small-scale farmers, particularly women; urges the EU and Africa, furthermore, to recognise indigenous people’s rights to customary ownership and control of their lands and natural resources under the UN Declaration on the Rights of Indigenous People and ILO Convention 169, and to comply with the principle of free, prior and informed consent;

42.

Stresses that the trade partnership between the EU and Africa must safeguard the right of African countries to food sovereignty, ensure adherence to the principles of sustainability and should never undermine food security, food safety and food quality nor drive deforestation or degradation of the environment; stresses that this will require greater commitments on both continents and the boosting of safe, resilient and sustainable agri-food systems in order to increase the efforts to reach the SDG of zero hunger in 2030 and support joint action to mitigate climate change; identifies a need to restructure value chains so that more of the processing and value-adding parts of production take place in source countries; reiterates the importance of respect for products with protected designation of origin; calls on the Commission to ensure investment instruments, such as Global Gateway and Global Europe, contribute to the development of a sustainable agricultural sector in Africa in line with the SDGs, and to support the implementation of the AfCFTA for intra-African agricultural trade; calls on the Commission to facilitate education and training to advance and promote sustainable agricultural practices, such as agroecology, in Africa and to advance existing initiatives in Africa; recalls the fact that agroecology’s ability to reconcile the economic, environmental and social dimensions of sustainability has been recognised in landmark reports from the Intergovernmental Panel on Climate Change and the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services, as well as the World Bank and FAO-led International Assessment of Agricultural Science & Technology for Development; calls on the EU and Africa to play a leading role in the conclusion of an ambitious global agreement at the 15th Conference of the Parties to the Convention on Biological Diversity; notes, in this context, that sustainable agriculture and more sustainable nutrition in Europe can make a significant contribution to ensuring food security in African countries;

43.

Underlines the asymmetrical dependence of some African countries on agricultural imports for food security; expresses its grave concern at the consequences of Russia’s invasion of Ukraine for the supply of certain agricultural food products, mainly cereals, in view of the significant dependence of many states on these imports, as well as global supply chain disruptions and price increases leading to global food insecurity, most notably on the African continent; welcomes the Commission’s decision to assess the impact of the Russian-Ukrainian war on cereal imports and food security and calls on the Commission to take early action against possible humanitarian crises; stresses, furthermore, the disruption which the armed conflict is causing to African exports to Russia of certain products, such as citrus fruits, coffee and tea; calls on the Commission to work with African countries to secure access to agricultural products, to use the existing trade toolbox to address and facilitate access to agricultural products for our African partners, and to support them in boosting their agricultural production in order to enhance their food resilience;

44.

Recalls that with EU agri-food exports to Africa valued at EUR 17,6 billion and imports from Africa valued at EUR 16,5 billion in 2020, African countries are important destinations for EU exports and the EU remains the biggest export market for agricultural and food products from Africa; draws attention to the need for imports from Africa, and especially agri-food products, to meet EU health, safety and quality standards, including those relating to the use of hormones, antibiotics and genetically modified organisms; highlights that technical support and training should be offered to ensure that African producers have the opportunity and know-how to meet these standards; is convinced that the EU, as a major global player in the agri-food sector, should cooperate with African countries in further developing the benchmarks and international standards for sustainable food systems, based on respect for human and labour rights, fair competition, the precautionary principle, environmental protection and animal welfare, in accordance with WTO rules; points out that the EU is committed to supporting and promoting the global transition to sustainable agri-food systems with all its partners, in line with the objectives of the farm to fork strategy and the SDGs; points out that the EU and Africa share the objective of transforming the way we produce, distribute and consume our food; points out, therefore, that cooperation between the EU and its African partners must focus on the central issue of food supply, with tailored programmes for cooperation between EU and African farmers and SMEs, targeted investments in sustainable agricultural development, modern transport networks and appropriate storage infrastructure that provide African farmers with the means to make farming resistant to climate-related challenges;

45.

Advocates for stronger policy coherence at EU level in the context of agri-food trade, given the global implications of the common agricultural policy and agricultural trade on progress towards the achievement of the SDGs; calls for the EU to take into account the conclusions of the Task Force Rural Africa on the need for investment in African food chains, with a focus on value-added commodities; calls on the EU and its Member States to actively work with African partners to create synergies between the EU-Africa strategy and European Green Deal, in particular the external dimension of the farm to fork strategy;

46.

Underlines the importance of research and innovation in encouraging farmers to adopt sustainable agricultural practices and productive dry land agro-ecosystems and food systems; calls, in this regard, for stronger reliance on the contributions of African traditional knowledge to the just transition, especially regarding agricultural practices, fisheries and forest protection, thereby empowering the African people and local communities;

47.

Regrets the lack of recognition of the strategic importance of rangelands, which cover about 43 % of the African land surface and are therefore important carbon sinks; emphasises the importance of supporting small farms and pastoralism and other traditional/local food systems in order to strengthen their resilience and boost their contribution to food security, sustainable resource management and biodiversity conservation; notes that, for example, grazing rights and community pastures are traditional land use rights based on common law and not on securitised property rights; calls on the Commission to develop, together with local communities and local stakeholders, a strategy to optimise their potential through sustainable grazing management such as that practised by pastoralists; calls for the social tensions between settled agricultural populations and nomadic pastoral communities to be addressed, notably in regions with overlapping ethno-religious conflicts;

48.

Recommends to turn around the unwelcome trend of increasing numbers of people suffering from food insecurity in Africa by integrating humanitarian, development and peacebuilding policies in conflict-affected areas, by scaling up climate resilience across food systems, by strengthening the resilience of the most vulnerable to economic adversity, by intervening along food supply chains to lower the cost of nutritious foods and to increase the nutritional value of food products, by tackling poverty and structural inequalities, ensuring interventions are pro-poor and inclusive, and by strengthening food environments and changing consumer behaviour to promote, including by trade measures, dietary patterns with positive impacts on human health and the environment; underlines the need for sustainable and innovative policies that enable African states to ‘leapfrog’ older and more polluting technologies and agricultural practices with the goal of achieving an ecological and social transition to sustainable agri-food practices; highlights the central role played by the agricultural and food sectors in the African economy and in providing decent and sustainable job opportunities in rural areas in the many smallholdings or family farms through measures to enhance resilience, the sustainable modernisation of agricultural practices, improved product quality and product diversification; calls on the Commission to support local agricultural businesses and to increase the capability of small and family-owned farms to compete with large-scale corporate farms; is concerned about the increasing expansion of those highly industrialised farms that are based on monocultures, which contribute to deepening social inequalities and soil erosion and the ongoing loss of biodiversity; emphasises the importance of farmers for the strengthening of circular economies within the various African regions; welcomes the proposal of the Task Force for Rural Africa for the establishment of a EU-Africa twinning programme linking agricultural bodies of EU Member States and partner countries in Africa through which committed and comparable partners would be able to share best practices and knowledge;

49.

Underlines that the use of pesticides in intensive agriculture in Africa can have an impact on the health of workers who have very little access to training on plant protection and healthcare, in addition to causing environmental damage; calls for education and training in sustainable plant protection approaches and alternatives to pesticides and for the minimisation of exposure to hazardous substances; denounces the double standards applied by the EU regarding pesticides by allowing the export of hazardous substances that are banned in the EU to African countries and other non-EU countries; asks, therefore, for the current EU rules to be amended in order to eliminate this legal incoherence, in line with the Rotterdam Convention of 1998 and the European Green Deal;

50.

Stresses the need to help African countries to reduce the use of pesticides banned in the EU through the development of alternative systems for pest control; highlights the inconsistency of the EU in allowing exports to African and other non-EU countries of pesticides that are not permitted in the EU single market; calls for the swift ending of this inconsistency, as it completely contradicts the spirit of the European Green Deal;

51.

Points out that in comparison with other regions of the world, the distribution of added value in agricultural value chains is mostly unfavourable for African smallholders, as can be observed in the effects of market concentration on farmers and countries producing cocoa; welcomes the initiative by Ghana and Côte d’Ivoire to set up a living income differential for cocoa; welcomes the setting up of the EU Sustainable Cocoa Initiative and calls on the Commission to encourage private-sector-wide commitments to pay fair prices to cocoa farmers that enable them to produce sustainably, without child labour; recalls that EU-African trade relations and initiatives, like the one on cocoa, must rely on transparent and reliable monitoring and accountability; calls for the multi-stakeholder approach to be ensured via specific mechanisms to involve civil society in the development of strategies and sectoral policies; shares the views expressed by the Cocoa Coalition that the EU’s due diligence legislation in preparation, including the regulation on deforestation, should aim to deliver living incomes for cocoa farmers as an essential step in achieving a sustainable cocoa sector;

52.

Is concerned that the EU’s trade policy towards Africa is very fragmented; reiterates that the different EPAs should contribute to the development of intra-African integration and a fair and sustainable trade model and to reducing poverty; observes that the viewpoints regarding the evaluation of the success of the EPAs differ, with some in the EU and Africa arguing that the EPAs concluded or negotiated in the last decade do not sufficiently meet the requirements of a new partnership and were primarily aimed at enforcing EU interests, observing that EU exports to the EPA states have been detrimental to local production, especially in the agricultural sector, regretting that important EPA goals such as diversifying value chains and promoting regional integration in Africa have not been achieved, with the main exports remaining agricultural products and raw materials, and considering this, furthermore, to be one reason for the frequent criticism or even rejection of the EPAs in many African states, while others in the EU and the AU argue that EPAs contribute to and promote sustainable development in line with the SDGs and the 2030 Agenda for Sustainable Development, reduce poverty, foster intra-African trade flows, improve regional integration, contribute to trade facilitation and the removal of unnecessary barriers to trade, increase market access for businesses to the EU and African markets, most notably for SMEs, promote public and private investments in Africa, promote good and sustainable agricultural practices, and foster trade relations between the EU and Africa, taking into account the outcomes of the EU-AU Summit, and while they also believe that in order to fully play this role and be conducive to the integration of EU and African value chains, the EPAs would have to be implemented and modernised to include provisions that support cross-border value chains, including additional areas such as the services trade, investment, intellectual property rights and competition, which would reassure businesses and investors about the business environment in those countries;

53.

Considers that EPAs should improve the ability of African countries to exploit trade opportunities in the areas of food security, healthcare and poverty reduction;

54.

Recalls that the EU request to ban export taxes on raw materials has been a long-lasting stumbling block in the negotiation process on EPAs; stresses that for those economies which almost exclusively base their revenues on the exploitation of natural resources, prohibiting such taxes may lock them in aid dependency, while hampering their economic diversification; stresses the right of African countries to regulate raw materials in their public interest and calls for the EU to refrain from adopting a trade policy that, as a general rule, prohibits African countries from levying export taxes on raw materials, insofar as it is WTO-compatible;

55.

Reiterates its request for an in-depth analysis of the impact of EPAs on local economies, regional integration, economic diversification and the SDGs to be carried out before new EPAs are negotiated; calls for EPAs to be modernised by adding strong, binding and enforceable trade and sustainable development (TSD) chapters aligned with the Paris Agreement; calls on the Commission, in this context, to work with our African partners to advance fair and sustainable trade, notably through TSD chapters in EPAs, and to work with our partners on the upcoming TSD review; stresses, furthermore, the importance of including the objective of combating forced labour and child labour in TSD chapters of Union trade agreements, given their prevalence in the agricultural sector; calls for systematic, transparent and evidenced-based monitoring by all stakeholders, including EU and African civil society and communities, local authorities and national parliaments, of the implementation of EU-African trade agreements and for compliance with the principles of policy coherence for development and of policy coherence for sustainable development; calls for an in-depth analysis on the impact of existing EPAs and trade agreements on African countries to determine the extent to which they are compatible with efforts to support the AfCFTA process and continental integration in Africa and the need for them to be consistent with the SDGs and Article 208 of the Treaty on the Functioning of the European Union; calls for an adjustment of EPA provisions to be pursued, depending on the results; calls on the Commission, when reviewing EPAs, to, where appropriate, address, mitigate and avoid any potential effect that could impair the objectives of the development of the intra-African market, in close cooperation with our African partners; emphasises that EPAs need to support the further development of the AfCFTA; calls on the Commission to ensure EPAs are a basis for the strengthening of economic relations between the parties in a mutually beneficial way, taking into account their respective levels of development; calls on the Commission to pay special attention to SMEs, and to support African SMEs who export to the EU with technical assistance; notes that in order to make the EPAs more attractive, additional elements need to be covered by the agreements, such as capacity building, encouraging women to participate in the economy, including in agriculture, and investing in the opportunities for young people in African countries;

56.

Recalls that the implementation of sustainability chapters must be accompanied in parallel by capacity building through the EU’s development assistance and other investments to assist partner countries in honouring their commitments (17), and that civil society stakeholders should be involved in monitoring (18);

57.

Welcomes the reform of the Generalised Scheme of Preferences (GSP) Regulation (19) and its role in increasing trade opportunities, facilitating export diversification for developing countries, advancing sustainable development and ensuring respect for human rights, labour rights, environmental protection, sustainable development, good governance and gender equality; notes that several African countries will graduate from LDC status in the near future and highlights the need to support their smooth transition to GSP status; is of the opinion that these countries would benefit from GSP+ status and encourages them to consider applying, while calling on the Commission to proactively approach these potential candidates and offer them support in working towards meeting the criteria, and to ensure a smooth transition from LDC to GSP+ partner country status; calls on the Commission to ensure the GSP is complementary to other trade policy initiatives on the African continent; calls on the countries in the region benefiting from the GSP and Everything but Arms schemes to work to strengthen the effective implementation of their international commitments;

58.

Calls for increased investment in research and development related to green goods and technologies; calls on the Commission to take the necessary steps to ensure that the implementation of the future EU corporate sustainability due diligence and deforestation-free rules encourage long-term sourcing relationships and improved purchasing practices, ensuring a living wage for workers and a living income for smallholder farmers and ensuring respect for the environment and meaningful stakeholder engagement, including of rights holders, in all steps of the due diligence process; recalls that Africa is home to exceptional biodiversity; expresses its deep concern about overexploitation of natural resources and the impact of reduced biodiversity on resilience levels; is particularly concerned that the pace of deforestation is increasing in Africa, notably in the Congo basin, which in 2020 was second only to Brazil in terms of primary forest loss, and in Cameroon, and is also concerned about the smuggling of rare wildlife species; points out that African rainforest destruction leads to irreversible biodiversity and carbon sink losses, as well as of the homes and ways of life of indigenous communities; recalls that forests contribute significantly to reaching climate targets, protecting biodiversity and preventing desertification and extreme soil erosion; highlights the role of water as a key building block for social and economic resilience, especially in the context of food and nutrition security, and the fact that water is at risk of becoming a scarce resource; believes, therefore, that greater importance should be accorded to the supply of water; stresses that desertification and locust swarms have exacerbated the already difficult food security situation in Africa and that the COVID-19 pandemic and ensuing economic and logistics problems have shone a spotlight on the potential for local and regional markets to address vulnerabilities and shortcomings in the global food system; considers that a trade partnership must be based on models and technologies that are well-adapted to African countries’ agricultural models, economies and crops and on collaboration, notably through training and exchanges of knowledge, giving farmers ownership, independence and the right of initiative;

59.

Stresses the importance of cities and towns in promoting the spirit of fair trade; commends the Commission for launching the EU Cities for Fair and Ethical Trade Award; commends Vice-President and Commissioner for Trade Valdis Dombrovskis for his commitment to continue this important initiative; calls on the Commission to seek cooperation with the AU Commission to enhance direct cooperation between cities and towns in both continents, in order to promote fair and ethical trade relations and to increase the visibility of the many respective initiatives of city councils;

60.

Believes that now more than ever after the COVID-19 pandemic, on a global level, and especially with regard to Africa, new approaches should be taken for economic, commercial and trade relations based on fair and ethical trade and on the principles of solidarity and cooperation;

61.

Welcomes the declaration agreed by the meeting of leaders of local and regional governments of the member states of the AU and the EU on 15 February 2022 in Brussels, which emphasised inter alia that without the engagement of local and regional governments, 65 % of the 169 targets underpinning the SDGs will not be reached;

62.

Welcomes the agreement of the AfCFTA Council of Ministers on common rules of origin for the bloc for 87,7 % of goods or 3 800 tariff lines covered by the AfCFTA; calls on the European Commission to harmonise the rules of origin and to develop a proposal for unified rules of origin for trade with all African countries, based on the rules recently agreed within the AfCFTA, to replace the patchwork of rules of origin in the different trade agreements and arrangements of the EU with African regions and countries; is convinced that this would also be to the benefit of EU companies and customs authorities; calls on the Commission to explore further possibilities and measures to enhance links and synergies between the EU’s different trade arrangements with African countries and the AfCFTA; welcomes the AfCFTA’s goal of improving regional differentiation and the expansion and interconnection of infrastructure systems; calls on the EU to engage with the AfCFTA Secretariat to advance capacity building and technical support for the implementation of the AfCFTA;

63.

Welcomes the fact that in November 2021, the EIB opened its first hub in Africa, in Kenya’s capital Nairobi;

64.

Appreciates the initiative by the Council and the Commission to organise the first Africa-Europe Week, which was held in February 2022 in Brussels; welcomes the fruitful work of several thousand representatives from youth organisations, civil society organisations, local authorities, the cultural sector and the business sector; stresses that better EU engagement with young Africans and the African diaspora in the EU could structurally improve the EU-Africa relationship in the long term; regrets, in this context, that the European Parliament was not more involved and that the events took place during Parliament’s plenary week in Strasbourg, and underscores the importance of promoting, ahead of upcoming initiatives, greater cooperation between all stakeholders, including business organisations; calls on the Commission to organise the Africa-Europe Week on an annual basis, and to include young people, especially women and girls, in discussions organised during the Africa-Europe Week;

65.

Calls on the Commission to focus future editions of the EU-Africa Business Summit on the potential that local economic and sustainable production alternatives, such as organic and fair trade products, smallholder farmer cooperatives and social economy stakeholders, can play in building up a more sustainable and fair trading partnership between Africa and the EU;

66.

Stresses the necessity of increasing the involvement of stakeholders, in particular business associations of SMEs from across the African continent and increasingly important civil society organisations from both the EU and the AU, in the debates establishing the new dimension of trade, investment and economic cooperation, which is aimed at fair and ethical relationships;

67.

Notes that transport networks are critical enablers of trade and prosperous economies; stresses the need to better connect African rural and urban areas to ensure greater interconnectedness within African countries and the African continent; stresses that Team Europe proposals for the realisation of infrastructure projects must build on the needs identified by the AU in the Programme for Infrastructure Development for Africa; calls, in this regard, for local and regional stakeholders to be involved in the decision-making process on the nature and volume of infrastructure projects; recalls the fact that an estimated 53 % of roads in Africa are unpaved and are isolated from trade hubs, and that less than half of the population in rural areas has access to functional roads all year round, which illustrates the need to invest not only in flagship projects; also calls for investments in cold chain logistics and modern storage facilities and generally improved logistics between production and consumption locations that enable farmers to deliver their agricultural products over certain distances, also given the rapid urbanisation of Africa, thus contributing to ending food insecurity; notes that a functioning transport network and investments in infrastructure projects can contribute to the development of African economies; calls on the European Commission to facilitate investment in African infrastructural projects through its trade and investment instruments for Africa;

68.

Encourages a broad debate with the aim of reconsidering models and plans to develop infrastructure and to identify alternative mobility models and 21st century modern mobility solutions for everybody within the regions as well as across the continent, based on lessons learned in the EU and other industrialised countries, in order to avoid mistakes made there;

69.

Stresses that education and professional training that provide people with the skills required by the labour market are key factors for development; believes, in this context, that cooperation between universities, research institutions and vocational education and training programmes from both continents need to be strengthened; is of the opinion, in that regard, that private-sector-driven vocational education and training initiatives and entrepreneurship in Africa should be supported and better coordinated, as the pandemic has emphasised the importance of both digital skills and digital learning methods;

70.

Shares the long-term vision of creating a comprehensive EU-Africa continent-to-continent trade, cooperation and development agreement, building on the AfCFTA; underlines that a continent-to-continent trade and cooperation agreement must be preceded by the meaningful development of a robust and resilient intra-African market; stresses, in this regard, the role of the EU’s trade policy engagement with Africa in the development of the intra-African market; calls on the European Commission to regularly update Parliament on the long-term objective of a continent-to-continent trade and cooperation agreement, notably through the various policy instruments related to Africa;

71.

Calls for the responsible and swift implementation of the commitments on trade and investment agreed at the 2022 EU-AU Summit, and calls on the European Commission to structurally report to Parliament on the implementation of the commitments on trade and investment by the relevant committees;

72.

Welcomes the EU’s Africa-EU Green Energy Initiative and its continued support for the African Single Electricity Market; stresses that access to energy must be guaranteed at an affordable price to everyone as a common good and a basic right, and that access to energy and the future energy demand are key issues that the EU and Africa should address together; notes the need to leverage the new renewable and low carbon energy potential in Africa and invest in sectors with higher added value, such as green steel and green hydrogen, notably by improving technology cooperation and increasing clean energy exports; points out that technical assistance regarding energy market legislation is needed and should be provided through EU-African cooperation, as well as the development of common standards; points out that sustainable energy cooperation should be one the main features of the Global Gateway with regard to Africa; welcomes the commitment under the Global Gateway to mobilise EUR 2,4 billion in grants for sub-Saharan Africa and EUR 1,08 billion for North Africa to support renewable energy, energy efficiency, the just transition and the greening of local value chains; calls for a gender-smart investment approach in the energy sector that would empower women as energy leaders, workers and consumers;

73.

Insists on the importance of building partnerships to improve the sustainability of raw material value chains, building on the critical raw materials action plan and making use of all EU external policy instruments;

74.

Calls for the link between public health and biodiversity to be taken into account, in line with the UN One Health approach, and welcomes the announcement of the NaturAfrica initiative, which aims to protect wildlife and ecosystems in Africa and the review of the action plan against wildlife trafficking; notes that academic literature has located some global hotspots for emerging zoonotic diseases in Africa; recommends developing and incorporating pandemic and emerging disease health risk impact assessments in major development and land use projects facilitated by the renewed partnership between the EU and the AU and reforming financial aid for land use so that benefits and risks to biodiversity and health are recognised and explicitly targeted; invites the Commission to explore the possibility of issuing guidance for EU companies and investors active in Africa in relation with the future directive for sustainable corporate due diligence (20); calls on the EU and the AU to push for a new intergovernmental health and trade partnership aimed at reducing zoonotic disease risks in the international wildlife trade; stresses that the NaturAfrica initiative should be developed in consultation with all stakeholders, with particular attention paid to the rights of local communities, indigenous peoples and women; underlines that it should support African governments and local populations in tackling major drivers of biodiversity loss and environmental degradation in a holistic and systematic way, including by offering support for well-managed protected area networks; calls for the inclusion of ambitious biodiversity-related provisions inspired by the UN One Health approach when modernising EPAs; considers that the EU should contribute to the realisation of the Great Green Wall in the Sahel region, which will significantly contribute to putting a halt to further desertification and will thereby safeguard incomes from agriculture;

75.

Underlines that human rights and gender equality must be at the centre of the reinforced cooperation between the EU and the AU, with a special focus on the impact of emerging and innovative technologies on human rights and the inclusion of women in the economy; stresses the potential digital trade can have for advancing and improving trade facilitation in Africa, and calls on the Commission to advance digital capabilities to facilitate the implementation of EPAs and the implementation of the AfCFTA; calls on the Commission to consider the EU-AU digital agenda in its engagement with its global strategic partners;

76.

Notes that knowledge sharing and skills development within Africa can contribute to the development of a sustainable trade relationship; underlines the potential that digital infrastructure has to stimulate the African economy and drive innovation on the continent; calls for reinforced cooperation on EU-AU digital agendas based on the principles of democratic governance, supportive multilateral rules on e-commerce, effective regulatory mechanisms across the digital domain and global-to-local governance mechanisms for data and digital infrastructure that place people-centred development at their core; takes note of the creation of the AU-EU Digital Economy Task Force; stresses that EU-AU digital relations should promote Africa’s drive for digital transformation and respect the right of governments to maintain data ownership and regulate their digital economy according to their development needs and with a view to achieving a more balanced digital world; calls on the EU to support the digital upscaling of African countries with the help of UNCTAD platforms created to secure sustainable development gains from digital transformations; emphasises that digital transformation must be consistent with the principles of data protection;

77.

Instructs its President to forward this resolution to the Council, the Commission, the African Union, the governments and parliaments of the member states of the African Union and the Secretary-General of the AfCFTA.

(1) OJ C 494, 8.12.2021, p. 80.

(2) Assembly/AU /Dec.692(XXXI).

(3) Kigali Decision (Assembly/AU/Dec.605(XXVII)).

(4) OJ C 162, 10.5.2019, p. 9.

(5) Texts adopted, P9_TA(2022)0073.

(6) OJ L 347, 30.12.2005, p. 1.

(7) OJ C 474, 24.11.2021, p. 11.

(8) Texts adopted, P9_TA(2021)0516.

(9) OJ L 130, 19.5.2017, p. 1.

(10) OJ C 465, 17.11.2021, p. 11.

(11) OJ C 184, 5.5.2022, p. 2.

(12) Texts adopted, P9_TA(2021)0472.

(13) FAO article of 11 February 2019 entitled ‘FAO calls for urgent action to curb corruption, illicit exploitation of forests’, accessed on 1 June 2022. Available at: https://www.fao.org/africa/news/detail-news/en/c/1180700/

(14) Article by the UN Development Programme in Ethiopia of 13 October 2016 entitled ‘Gender gap costs sub-Saharan Africa $US95 billion a year: UND’, accessed on 3 June 2022. Available at: https://www.undp.org/ethiopia/press-releases/gender-gap-costs-sub-saharan-africa-us95-billion-year-new-undp-report.html

(15) Commission communication of 18 February 2021 entitled ‘Trade Policy Review — An Open, Sustainable and Assertive Trade Policy’ (COM(2021)0066).

(16) Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups (OJ L 330, 15.11.2014, p. 1).

(17) German Development Institute discussion paper of January 2016 entitled ‘Can Rules of Origin in Sub-Saharan Africa be Harmonized? A Political Economy Exploration’.

(18) German Development Institute discussion paper of January 2016 entitled ‘Can Rules of Origin in Sub-Saharan Africa be Harmonized? A Political Economy Exploration’.

(19) Regulation (EU) No 978/2012 of the European Parliament and of the Council of 25 October 2012 applying a scheme of generalised tariff preferences and repealing Council Regulation (EC) No 732/2008 (OJ L 303, 31.10.2012, p. 1).

(20) Commission proposal of 23 February 2022 for a directive of the European Parliament and of the Council on corporate sustainability due diligence and amending Directive (EU) 2019/1937 (COM(2022)0071).

27.1.2023

Official Journal of the European Union

C 32/96

P9_TA(2022)0268

Future of EU international investment policy

European Parliament resolution of 23 June 2022 on the future of EU international investment policy (2021/2176(INI))

(2023/C 32/10)

The European Parliament,

—	having regard to the Treaty on the Functioning of the European Union (TFEU), in particular Article 207(2) thereof,

—	having regard to Regulation (EU) No 1219/2012 of the European Parliament and of the Council of 12 December 2012 establishing transitional arrangements for bilateral investment agreements between Member States and third countries (1),

—

having regard to Regulation (EU) No 912/2014 of the European Parliament and of the Council of 23 July 2014 establishing a framework for managing financial responsibility linked to investor-to-state dispute settlement tribunals established by international agreements to which the European Union is party (2),

—	having regard to Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment (3),

—

having regard to the case law of the Court of Justice of the European Union, notably its opinion 2/15 of 16 May 2017 on the Free Trade Agreement between the EU and the Republic of Singapore, its judgment of 6 March 2018 in case C-284/16 (preliminary ruling on Slovak Republic v Achmea BV), its opinion 1/17 of 30 April 2019 on the Comprehensive Economic and Trade Agreement between Canada and the EU and its Member States, its judgment of 2 September 2021 in case C-741/19 (preliminary ruling on Republic of Moldova v Komstroy LLC), and its judgment of 26 October 2021 in case C-109/20 (preliminary ruling on Republic of Poland v PL Holdings Sàrl),

—	having regard to its resolution of 6 April 2011 on the future European international investment policy (4),

—	having regard to its resolution of 13 December 2011 on trade and investment barriers (5),

—	having regard to its resolution of 7 July 2015 on the external impact of EU trade and investment policy on public-private initiatives in countries outside the EU (6),

—	having regard to its resolution of 5 July 2016 on a new forward-looking and innovative future strategy for trade and investment (7),

—	having regard to the Commission communication of 11 December 2019 on the European Green Deal (COM(2019)0640),

—	having regard to the Commission report of 6 April 2020 on the application of Regulation (EU) No 1219/2012 establishing transitional arrangements for bilateral investment agreements between Member States and third countries (COM(2020)0134),

—	having regard to the Commission communication of 18 February 2021 entitled ‘Trade Policy Review — An Open, Sustainable and Assertive Trade Policy’ (COM(2021)0066),

—	having regard to the Commission communication of 14 October 2015 entitled ‘Trade for all — Towards a more responsible trade and investment policy’ (COM(2015)0497),

—	having regard to the Commission communication of 26 November 2014 entitled ‘An Investment Plan for Europe’ (COM(2014)0903),

—	having regard to the Commission report of 12 November 2020 on the implementation of EU trade agreements: 1 January 2019 — 31 December 2019 (COM(2020)0705),

—	having regard to the Paris Agreement on climate change, adopted on 12 December 2015,

—

having regard to the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part (8), which entered into force on 1 May 2021, and in particular Title II thereof on services and investment,

—	having regard to the 2014 UN Convention on Transparency in Treaty-based Investor-State Arbitration, which entered into force on 18 October 2017 (the Mauritius Convention),

—	having regard to the trade and investment agreements concluded by the EU, in particular the ‘second generation’ agreements with countries such as Canada, Singapore, Vietnam and Japan,

—	having regard to the 2030 UN Agenda for Sustainable Development adopted in 2015, in particular the 17 Sustainable Development Goals thereto,

—	having regard to the UN Guiding Principles on Business and Human Rights, as endorsed by the UN Human Rights Council in 2011,

—	having regard to General Comment No 24 of 10 August 2017 of the UN Committee on Economic, Social and Cultural Rights on state obligations under the International Covenant on Economic, Social and Cultural Rights in the context of business activities,

—	having regard to the 2019, 2020 and 2021 world investment reports of the UN Conference on Trade and Development (UNCTAD),

—	having regard to the 2015 UNCTAD Investment Policy Framework for Sustainable Development,

—	having regard to the UNCTAD international investment agreement issues notes on investor-state dispute settlement cases: facts and figures for 2019 and 2020,

—	having regard to the 2018 Organisation for Economic Co-operation and Development (OECD) working paper on international investment entitled ‘Societal benefits and costs of International Investment Agreements: a critical review of aspects and available empirical evidence’,

—	having regard to the 2014 OECD working paper on international investment entitled ‘Investment Treaties and Shareholder Claims for Reflective Loss: Insights from Advanced Systems of Corporate Law’,

—	having regard to the mandate given to Working Group III of the UN Commission on International Trade Law (UNCITRAL) in 2017 to work on a possible reform of investor-state dispute settlement,

—

having regard to the negotiating directives issued by the Council in 2018 authorising the Commission to negotiate, on behalf of the EU and in the framework of UNCITRAL, a convention establishing a multilateral investment court for the settlement of investment disputes, and to the subsequent EU proposal thereon,

—	having regard to the modernisation process of the Energy Charter Treaty, which was initiated in 2017, and to the EU’s text proposal thereon,

—	having regard to Italy’s decision to withdraw from the Energy Charter Treaty as of 1 January 2015,

—	having regard to the Agreement for the termination of Bilateral Investment Treaties between the Member States of the European Union (9),

—	having regard to the Declaration of the Governments of the Member States of 15 January 2019 on the legal consequences of the judgment of the Court of Justice in Achmea and on investment protection in the European Union,

—	having regard to the Agreement between the United States, Mexico and Canada which entered into force on 1 July 2020, and in particular chapter 14 thereof on investment,

—	having regard to the Regional Comprehensive Economic Partnership Agreement of the Association of Southeast Asian Nations, which entered into force on 1 January 2022, and in particular chapter 10 thereof on investment,

—	having regard to the report of the UN Working Group on the Issue of Human Rights and Transnational Corporations and Other Business Enterprises presented to the UN General Assembly on 27 July 2021 entitled ‘Human rights-compatible international investment agreements’,

—	having regard to Rule 54 of its Rules of Procedure,

—	having regard to the opinion of the Committee on Development,

—	having regard to the report of the Committee on International Trade (A9-0166/2022),

whereas, since the entry into force of the Lisbon Treaty, foreign direct investment has remained an exclusive competence of the European Union, as enshrined in Article 3(1)(e), Article 206 and Article 207 TFEU; whereas the EU’s international investment policy reform path needs to further accelerate and be reinforced to address the current challenges;

whereas the EU is the world’s largest destination and source of inbound and outbound international investments; whereas they contribute to the sustainable economic growth of the EU and to job creation, although available empirical evidence has not shown a direct causal relationship between international investment agreements (IIAs) and the attraction of foreign direct investment;

whereas global foreign direct investment (FDI) flows, which had already been declining since 2015, experienced a dramatic drop in 2020 (-38 %) (10) due to the COVID-19 crisis; whereas increasing outward and inward FDI remains a key element of the path to recovery for the EU and for many other economies;

whereas according to the case-law of the Court of Justice, certain parts of the EU’s international investment policy, namely non-direct foreign investments (‘portfolio investments’) and the regime governing dispute settlement between investors and states, are a shared competence of the EU and its Member States;

whereas around 1 500 bilateral investment treaties ratified by the Member States before the Lisbon Treaty are still in place, and include the old model of investor-state dispute settlement, as does the Energy Charter Treaty; whereas none of the IIAs negotiated by the EU since the Lisbon Treaty has entered into force;

whereas the European Green Deal aims at responding to the challenges of climate change and environmental degradation; whereas all EU policies need to contribute to these goals, including investment policy; whereas substantial investments are needed worldwide in order to achieve the aims of the European Green Deal, meet the UN Sustainable Development Goals (SDGs) and recover from the COVID-19 pandemic; whereas working against climate change and environmental degradation, and creating more attractive investment conditions and supporting businesses are among the six priorities (11) of the EU between 2019 and 2024;

whereas FDI and EU investment policy should also play a key role in achieving the objectives of open strategic autonomy, diversifying supply chains and contributing to sustainable economic growth, job creation and integration in global value chains, as well as in seeking to promote conditions for EU investors abroad that reflect the level of openness that foreign investors enjoy in the EU, while taking into account the levels of development of third countries and the need to provide for differentiated treatment;

whereas developing countries face a gap of USD 2,5 trillion in annual financing to achieve the SDGs by 2030; whereas FDI is an instrument for financing the 2030 Agenda for Sustainable Development and the corresponding SDGs; whereas such capital can support job creation and social and environmental improvements as set out in the SDGs; whereas the aim of attracting investment should go hand in hand with the acknowledgement, in the context of IIAs, that the parties to these agreements should seek to improve their levels of environmental or labour protection, and not weaken or reduce them;

I.	whereas the EU taxonomy aims at facilitating the shift of investments from unsustainable economic activities to those that are needed to achieve environmental sustainability, and more specifically climate neutrality in the next 30 years;

whereas investment policy includes measures such as removing undue barriers to investment, monitoring the impact of foreign investment on strategic autonomy, national security and the real economy, and devising other tools to encourage and facilitate direct investment in sectors and places where it is needed the most; whereas most IIAs focus on investment protection, with or without investor-state adjudication;

K.	whereas the number of investor-state dispute settlement (ISDS) cases is rising each year, including against Member States; whereas about 15 % of cases known to be filed against Member States in 2020 were intra-EU disputes;

whereas most investment treaties do not specify how the notions of ‘full reparation’ and ‘fair market value’ of an investment are to be ascertained; whereas panels have in the last decade predominantly interpreted such notions by using ‘forward-looking’ valuation techniques based on discounted cash flow (DCF) methods, which in many cases have led panels to rule on amounts of compensation that are much higher than the aggregate amounts of expenditure actually incurred by investors in host countries;

whereas the EU is a global leader in investment policy reform; whereas significant reform of investment policy has been undertaken at European and international level since the entry into force of the Lisbon Treaty, at the insistence and with the support of Parliament; whereas the EU has launched and concluded IIAs with partner countries, reformed investment protection provisions, replaced ISDS with the investment court system (ICS), launched multilateral negotiations for an investment court, proposed legislation to regulate foreign subsidies, and adopted legislation for the screening of inward foreign direct investment; whereas these developments are significant steps in the right direction for a modernised and sustainable investment policy; whereas much more remains to be done to advance this reform agenda;

whereas the increasing recourse by investors to third parties to finance their litigation in exchange for a return or other financial interest in the outcome of a dispute (third-party funding) has exacerbated the imbalances underpinning compensation practices in litigation, by further reducing the risks for investors of pursuing a claim, and thereby adding incentives to increase the number of claims; whereas third-party funding may increase the bargaining power of claimants to the detriment of states with limited resources and weaker regulatory frameworks;

Underlines that investment can and should have a positive impact on sustainable economic growth, job creation and sustainable development, and contribute to the SDGs; stresses, therefore, its importance for the transformation of the EU economy; points out that this positive impact depends on governments’ capacity to regulate foreign investments; points out that inbound and outbound investments must meet the needs of the real economy; calls on the Commission to review the EU’s investment policy to ensure consistency with the European Green Deal and the SDGs, as well as with EU values, including respect for human rights and the social standards as defined by the European Pillar of Social Rights;

Believes that the EU’s investment policy needs to meet the expectations of investors and beneficiary states, as well as the EU’s broader economic interests and external policy objectives; recalls its request for an integrated and coherent policy framework, which promotes high-quality and sustainable investments; welcomes the efforts undertaken by the Commission since 2010 to reform the Union's investment policy in that direction; considers that EU international investment policy needs to be further reformed in order to better address a variety of challenges and continue its transformation into an integrated and coherent policy framework;

Considers that IIAs should facilitate green, gender-sensitive and inclusive sustainable investments, adequately protect investors, contribute to the resilience of the single market while safeguarding policy space in host states, and encourage the exchange of best practices, skills and know-how, in accordance with the Organisation for Economic Co-operation and Development (OECD) Guidelines for multinational enterprises on corporate social responsibility;

Is concerned that according to the OECD, developing countries faced a shortfall of USD 1,7 trillion in 2020 due to the COVID-19 crisis, in addition to the existing USD 2,5 trillion funding gap; stresses that the EU’s investment policy should help developing countries, notably African countries, to attract FDI and to reduce the funding gap to achieve the SDGs;

Considers that EU companies need adequate protection for their investments abroad; points out that protected investments, as codified in the EU’s IIAs, should not include speculative forms of investment, financial instruments or portfolio investments that can be held for speculative purposes; calls on the Commission to build on recent IIAs (12) to exclude public debt instruments from their scope; considers that financial instruments which can be withdrawn at any time do not require protection; asks the Commission to continue its endeavours to improve the definition of protected investments so as to make sure that IIAs protect only investments that make a substantial commitment of capital or other resources for a minimum number of years, for which there is an assumption of risk and expectation of profit; is of the opinion that protected investments should effectively contribute to the development of the host country; asks the Commission and the Member States to consider this criterion as defined in international law in the definition of protected investments for future agreements;

Market access

Welcomes the fact that recent investment agreements have a positive focus on market access and investment liberalisation and seek the removal of barriers to the establishment and operation of EU investors in foreign markets;

Calls on the Commission to seek conditions for EU investors abroad that reflect the level of openness that foreign investors enjoy in the EU, while taking into account the level of development of third countries and the need to provide for differentiated treatment; stresses the need for IIAs to safeguard the ability of states to regulate foreign investments in their jurisdiction; calls on the Commission to monitor barriers to the establishment and operation of EU investors in foreign markets, including discriminatory practices; welcomes the Commission’s focus on the enforcement of existing commitments and underlines that this should also apply to investment-related commitments;

Urges the Commission to strictly protect the policy spaces of the EU and the Member States, notably on energy, agriculture, fisheries, audiovisual, telecommunication and digital issues, as well as public services, when liberalising investments; stresses that liberalising investments should go hand in hand with safeguards to avoid exacerbating economic instability, especially in developing countries;

Underlines the importance of maintaining, strengthening and implementing the clauses in all investment agreements that prohibit the lowering of standards, as they are critical to avoid a race to the bottom in countries aiming to attract foreign investment; calls on the Commission to further analyse the effectiveness of such clauses, in particular in developing countries, to ensure that tax policy and development finance are aligned to support a ‘race to the top’;

Investment facilitation

10.

Points out that investment facilitation can contribute to unlocking investment opportunities in developing countries, notably for small and medium-sized enterprises, and to achieving the SDGs by helping to mobilise higher levels of investment to promote inclusive and sustainable growth and poverty reduction, as it supports a longer-term presence of foreign investors in the host economy and improves linkages between foreign investors and local companies; invites the Commission to support developing countries in improving the investment climate in their jurisdiction, both through development cooperation tools and through bilateral agreements; believes that investment facilitation is also a good instrument to improve the EU’s competitiveness and economic growth;

11.

Stresses that international agreements on investment facilitation should support and incentivise investments that advance sustainable development and avoid incentives for investments that cause harm to the environment, climate or society; notes that tax revenues are crucial for developing countries to provide basic public services; urges the Commission to work at multilateral level to promote sustainable investment facilitation which is not pursued through competitive tax breaks; highlights that introducing innovative investment facilitation measures can contribute to achieving the SDGs by helping to mobilise higher levels of investment to promote inclusive and sustainable growth and poverty reduction, as it supports a longer-term presence of foreign investors in the host economy, and to develop better linkages between foreign investors and local companies;

12.

Acknowledges the role taken by the EU in the World Trade Organization (WTO) negotiations regarding the Joint Initiative on Investment Facilitation for Development; underscores that more than two thirds of WTO members are participating in these negotiations; believes that caution is needed considering the very broad scope of the agreement under negotiation; emphasises the need to ensure that these negotiations abide by the rules of the WTO Marrakesh Agreement, which require consensus and overall transparency;

13.

Underlines the importance of an overall EU approach as regards investment facilitation at both bilateral and multilateral level, with an overarching focus on cooperation, including capacity building and technical assistance, notably as regards support for digitalisation in developing countries; welcomes the Commission’s work on new standalone investment facilitation agreements, focusing on supporting sustainable and inclusive investments; asks the Commission, in that context, to pursue negotiations with African partners that avoid creating administrative burdens for developing countries, while specifying the type of sustainable investments that will be facilitated; takes note of the fact that similar investment facilitation provisions are being negotiated in the future Investment Protocol of the African Continental Free Trade Area; invites the Commission to continue supporting those negotiations;

14.

Supports the Commission in its approach, at WTO level, to ensure, via a strong firewall, that investment facilitation disciplines cannot be imported in investor-state disputes; believes that disputes arising under the Joint Initiative on Investment Facilitation for Development should be resolved via mediation and cooperation;

15.

Underlines that investment facilitation provisions at both bilateral and WTO level should not only focus on creating obligations for public authorities in host countries, but should also clarify the obligations of home countries and their national investors regarding their investments abroad; emphasises, in that respect, the need to integrate enforceable provisions as regards corporate social responsibility, human rights and environmental due diligence, as well as anti-corruption safeguards in investment facilitation frameworks; calls on the Commission to include an enforceable chapter on sustainable development in all investment facilitation agreements with third countries, as well as monitoring mechanisms on the activities supported by FDI flows;

16.

Welcomes the Commission’s proposal for an instrument to tackle distortions caused by foreign subsidies that constitute an unfair form of investment, and calls for its swift adoption; calls on the Commission and the Member States to engage in negotiations at WTO level with a view to tackling distortions of competition, particularly in the area of industrial subsidies;

Enhancing the screening of foreign direct investment in the EU

17.

Welcomes the entry into force of the FDI Screening Regulation in 2019; points out that this screening mechanism aims to establish cooperation and potentially limit foreign investments in strategic sectors in order to protect the Union and its Member States, as well as to analyse and screen cases where the acquisition or control of a particular company, infrastructure or technology may create a security or public order risk in the EU;

18.

Underlines the importance of this mechanism as a step towards the better monitoring of the contribution of FDI to Europe’s strategic interests; calls on the Commission, in the context of its forthcoming review process, to provide more granular data on whether inward FDI flows support sustainable economic activities and greenfield investments, to assess different options to monitor the activities supported by outward flows, and to assess the possibility of further specifying whether other sectors should be considered as strategic sectors; in addition, asks the Commission to explore the possibility of strengthening the EU foreign direct investment screening mechanism to give it, with the agreement of the Member States, the power to block an investment that would create a risk to security and public order;

19.

Calls on those Member States that do not yet have one, to set up such a national foreign direct investment screening mechanism in order to ensure that European cooperation is effective;

Compatibility of IIAs with EU priorities

20.

Notes that an increasing number of legal proceedings before investment tribunals target environmental measures; deplores the fact that various countries, including the Member States, are being sued in relation to policies on climate, the phasing out of fossil fuels, or the just transition;

21.

Stresses that global efforts to combat climate change will require a rapid transition to renewable energy and fast government action to reduce reliance on fossil fuels; urges the Commission and the Member States to ensure consistency between IIAs and the European Green Deal, environmental policies, labour rights and human rights, by excluding from treaty protection investments in fossil fuels or any other activities that pose significant harm to the environment and human rights, and by including in the sustainable development chapters provisions that help compliance with the Paris Agreement, international treaties on labour and gender equality, and provisions aiming at improving the domestic framework regulating foreign investment;

22.

Notes with concern the asymmetry of certain IIAs in which foreign investors can pursue investment cases against states, while governments, workers and affected communities are unable to pursue in arbitration transnational corporations that fail to respect human rights, public health or labour and environmental laws; stresses that, similarly, the Multilateral Investment Court (MIC) is only intended for adjudicating in cases in which foreign investors sue states;

23.

Points out that even in the absence of legal proceedings, the explicit or implicit threat of recourse to investment lawsuits can enhance the position of investors in negotiations with states (the ‘chilling effect’); stresses in this regard that recent EU IIAs stipulate the principle that governments have the right to regulate for legitimate public policy objectives (13), including in a manner that may negatively affect the operation of an investment or an investor’s expectation of profits; underlines, however, that this right does not prevent states from having to comply with obligations established in IIAs, nor does it preclude investment claims or damages following the exercising of that right; is concerned that policy decision-making might therefore be delayed or decisions watered down;

24.

Underlines that, as a result, more public funds may be spent on compensating the fossil fuel sector than would be the case without the threat of investment litigation, making it more costly and thus more difficult for states to undertake energy transition measures, and representing an overall subsidy provided by taxpayers to the fossil fuel sector;

25.

Notes that in numerous investor–state arbitration cases, businesses have challenged actions that states claimed to have taken to address local concerns or unrest about a project’s impact; calls on the Commission and the Member States to include a right of standing for affected third parties in future IIAs; believes that tribunals should follow the case-law of the International Court of Justice and deem cases inadmissible when determinations of fact or law might prejudice affected local or indigenous communities which are not party to the investment proceedings; asks the Commission and the Member States to ensure transparency and support the involvement of vulnerable local communities, and in particular of indigenous people impacted by extractive or logging activities, in the negotiation and implementation of IIAs, since foreign investments can have far-reaching impacts on local communities;

Reformed approach

26.

Welcomes the new investment protection agreement model drawn up by the Commission in 2015 as a step in the right direction; notes, however, that no agreement which contains it has yet entered into force; recalls its position that the EU and its Member States should not sign or ratify investment protection treaties that include the ISDS mechanism; underscores the importance of making procedural reforms to investor-state dispute settlement; welcomes the fact that the ICS includes the creation of a fixed roster of arbitrators, an appeal mechanism, a code of conduct for arbitrators and improved transparency in arbitration proceedings; notes that the ICS still constitutes international arbitration and stresses that, unlike in national courts, arbitrators on the ICS roster would have discretion not to necessarily take into consideration relevant public interest laws when interpreting the substantive provisions enshrined in IIAs; regrets that arbitrators would still be paid on a case-by-case basis;

27.

Urges the Commission to fully support and accelerate negotiations to expand investor obligations and their enforcement; believes that investor obligations should not only be included in EU IIAs, but should also apply via separate binding and enforceable international instruments, and via robust domestic frameworks for human rights and environmental due diligence; notes that progress in these areas and the continued strengthening of EU IIA provisions should ensure that EU investors in non-EU countries, in particular in developing countries, transparently demonstrate their strategies to actively contribute to the achievement of the SDGs and the goals of the Paris Agreement, and are subject to accountability mechanisms, in particular by providing access to justice for victims in those countries;

28.

Welcomes provisions in IIAs regarding environmental, labour and corporate responsibility obligations for states and investors, as well as clauses stipulating the horizontal principle that standards should not be lowered to attract investment; regrets, however, the fact that the reform of investor obligations has not kept pace with the reform of ISDS;

29.

Calls on the Commission and the Member States to support the entry into force of the instrument on transnational corporations and other business enterprises with respect to human rights (14), currently being drawn up by the UN Human Rights Council, which is aimed at regulating the activities of transnational companies and firms;

30.

Welcomes the fact that, since 2016, EU IIAs containing investment protection clauses include more precise wording for some protection standards, as well as the right to regulate; underlines that EU IIAs should not allow broad protection standards to be used to challenge legitimate public policies; considers that protection standards should focus specifically on creating a level playing field between foreign and domestic investors, preventing and offering redress in cases where EU investors in non-EU countries are discriminated against, are denied access to justice, or fully lose the enjoyment of their investment to the benefit of the host state, including in times of war, and reciprocally for non-EU investors in the EU; asks the Member States and the Commission to avoid including ambiguous terminology in substantive clauses, and to continue reviewing protection standards on the basis of available evidence;

31.

Underlines the fact that EU IIAs negotiated after 2009 still include sunset clauses which prevent easy termination; takes note of recent negotiations in which parties agreed to a five-year sunset clause with the possibility to agree on an extension of five additional years in case no replacement is found; calls on Member States and the other contracting parties to neutralise sunset clauses in current agreements, and to significantly shorten sunset clauses in new investment agreements;

32.

Emphasises that under both customary international law and international human rights law, individuals are required to seek redress before domestic courts before bringing international proceedings against the state for wrongful acts; regrets the fact that international investment law, by contrast, usually does not require the exhaustion of domestic remedies; believes, that IIAs should require recourse through domestic justice systems to be exhausted before foreign investors can resort to an arbitration tribunal, as is the case in international human rights law; stresses that in the event of gross denial of justice in domestic courts, foreign investors should directly be able to seek international dispute settlement;

IIA ratification

33.

Points out that delays to Member States’ ratification of EU IIAs delay the replacement of bilateral investment treaties (BITs) with more transparent and modern provisions that protect equally all EU investors in third countries; calls on the Member States to ratify the concluded EU investment agreements; calls for the EU to work jointly with partner countries to continuously review and improve its IIAs, once they enter into force, along the lines developed in this report; expects the Member States to ensure the consistency of the IIAs with EU values and objectives;

Compensation

34.

Points out that DCF methodologies, generally used for calculating compensation in IIAs, are not a reliable valuation method for investment projects that are at an early stage or those with uncertain future income streams; underlines that the use of such methods by arbitration panels represents a significant departure from well-established compensation principles and practices in national and international legal systems outside IIAs, which provide for significantly more constrained margins of discretion for adjudication; underlines that the considerable damages awarded by investment tribunals have imposed a significant and increasing financial burden on respondent states; points out that the use of valuation methods generally used by adjudicators is highly controversial owing to their very wide margin of discretion and reliance on highly complex and inherently speculative assumptions; invites the Commission to assess in depth and provide for corrective and transparency oriented rules and safeguards in relation to the provisions governing compensation in EU IIAs, including the use of stronger clauses preventing the use of punitive damages; calls for compensation to be capped at the level of sunk costs, reflecting the amount of eligible expenditure actually incurred by the investors; underlines that balancing approaches should, as appropriate, determine compensation awards below this cap, taking into consideration contextual elements such as non-compliance by undertakings with their legal or contractual obligations or commitments;

35.

Notes that the increasing recourse by investors to third parties to finance their litigation in exchange for a return in the outcome of an award (third-party funding) is adding incentives to increase the number of claims; takes note of progress to make third-party funding for investor-state disputes more transparent; welcomes in that respect the efforts made by the Commission in recent EU IIAs; calls on the Commission to support additional provisions regulating third party funding for investor-state disputes in the context of international negotiations, so as to strictly limit this practice, which encourages abusively large awards;

Bilateral investment treaties

36.

Draws attention to the thousands of existing Member State BITs which still protect fossil fuel investments, contain outdated provisions contrary to EU objectives and values, including overly broad protection standards, weak requirements on transparency and ISDS, and are not in line with the EU proposal for an MIC; calls, therefore, on the Member States to terminate or modernise their BITs so as to put them in conformity with a reformed model of EU IIAs, and in line with this report;

37.

Calls on the Commission to ensure that all of the Member States’ BITs are fully compatible with EU law and are consistent with the EU’s objectives and values; supports the Commission in applying in a strict manner the conditions for authorising the negotiation, signature and conclusion by Member States of new agreements, in line with a modernised EU investment policy and the judgments of the Court of Justice of the EU; recalls the obligation of the Member States to amend their BITs in conformity with Article 351 TFEU; asks the Commission to monitor compliance with these obligations and to regularly inform Parliament about progress achieved; encourages the Commission to open infringement procedures when necessary to ensure the compliance of Member States’ BITs with EU law;

38.

Supports the Commission in developing interpretative guidelines to be followed by the Member States along the lines of the substantive and procedural reforms referred to in this report, in order to ensure a unified interpretation of a modernised EU investment policy and guarantee full compatibility with the European Green Deal objectives; calls on the Commission to use this updated model as a basis for the authorisation of new Member State BITs;

The Energy Charter Treaty (ECT)

39.

Points out that the ECT is the most litigated investment agreement in the world today; supports the efforts to modernise the ECT and the EU’s position to exclude protection for most fossil fuel investments; believes, however, that the EU position should not grant protection to investments in economic activities considered to be ‘significantly harmful’ according to EU law, and that the timeframe for phasing out the protection of existing investments in fossil fuels should be significantly shortened in order not to undermine the achievement of the EU’s climate objectives; demands an end to investor-state dispute settlement in the ECT; underlines that amending the ECT requires unanimity of all contracting parties voting at the annual conference; is concerned that Parliament does not have the same level of access to the negotiating texts of the ECT modernisation negotiations as it has had during the negotiation of other treaties;

40.

Is concerned that many contracting parties seem not to share EU ambitions in the field of climate change mitigation, sustainable development and energy transition, despite the fact that all of them are also signatories of the Paris Agreement; urges the Commission to ensure the alignment of the ECT with the Paris Agreement and the objectives of the European Green Deal, while preserving the EU’s ability to develop public policy measures consistent with its commitment to become the first climate neutral continent by 2050;

41.

Takes note of the fact that Italy notified its decision to withdraw from the ECT as of 1 January 2015; notes that countries that have ratified or acceded to the ECT may terminate their membership 12 months after notification of withdrawal; regrets that investments realised before the exit date are still protected for 20 years, but welcomes the fact that protection ends immediately for all new investments;

42.

Urges the Commission to ensure that a revised ECT protects the right of states to regulate, is in line with EU law and EU investment policy, that it immediately prohibits fossil fuel investors from suing contracting parties for pursuing policies to phase out fossil fuels in line with their commitments under the Paris Agreement, and that investment protection is only granted to real investors and not to purely financial or speculative investors; calls on the Commission to publish its legal study analysing the potential effects of withdrawal; calls on the Commission and Member States to start preparing a coordinated exit from the ECT, and an agreement excluding the application of the sunset clause between willing contracting parties with a view to formal submission to the Council and to Parliament in the event of the abovementioned negotiating objectives not being achieved by June 2022;

43.

Welcomes the Court of Justice’s clarification in its Komstroy ruling that ISDS provisions in the ECT are not applicable in the case of intra-EU disputes; notes that at least 73 intra-EU cases are currently ongoing, including more than 40 intra-EU ECT-based investment arbitration cases; notes with great concern that the Achmea ruling did not deter arbitration tribunals from continuing to hear intra-EU investment disputes; urges the Commission to make its best efforts to assert these judgments in the ongoing intra-EU arbitration proceedings; asks the Member States and the Commission, therefore, to adopt an inter se agreement on the non-applicability of the ECT to intra-EU disputes; supports the request from several Member States for a new ruling from the Court of Justice, and considers that it should offer definitive clarification on the issue, to prevent any future intra-EU arbitration being admissible under the ECT;

44.

Points out that, while it will be difficult to enforce any possible awards in intra-EU cases in EU courts, cases under the rules of the International Centre for Settlement of Investment Disputes can still be enforced in the courts of third countries; notes that these courts can order state (15) assets of the EU or of EU Member States to be seized;

45.

Underlines that respect for the rulings of EU courts, and especially of the Court of Justice of the EU, should be taken into consideration during the selection process for arbitrators for future ICS rosters;

Multilateral efforts to reform investment protection (MIC)

46.

Welcomes the fact that UNCITRAL Working Group III has been engaging in deliberations on a possible multilateral reform of ISDS since 2017; notes that 60 states agreed by consensus that UNCITRAL’s work must address structural reform options; calls on the Commission to continue constructively engaging in the UNCITRAL discussions, as well as to encourage negotiations on topics such as regulatory chill, exhaustion of remedies, the rights of third parties and damages, which have received limited attention, and to take them into account in future EU IIAs; calls on the Commission to strengthen its work in UNCITRAL in order to protect the state’s ability to regulate, and ensure full transparency;

47.

Supports the ongoing negotiations in UNCITRAL Working Group III in which the EU and its Member States are pursuing the establishment of a standing mechanism to resolve investment disputes: the multilateral investment court (MIC); welcomes the global leadership the EU is providing in these negotiations; stresses, however, that this proposal does not cover the modernisation of substantive protection standards; calls on the Commission to ensure that the body of law that judges from the MIC apply balances the interpretation of substantive provisions and rights enshrined in IIAs with relevant domestic public interest laws which have been enacted democratically; asks the Commission to ensure that judges are not paid on a case-by-case basis; calls on the Commission to promote the reform and modernisation of these standards in appropriate international forums;

48.

Calls on the Commission to include in the negotiations on the MIC the introduction of rules setting out, in a transparent manner, the compensation to be paid by states, and to advocate for strict valuation methods that only permit compensation of sunk costs in the ongoing UNCITRAL reform negotiations;

49.

Strongly criticises the significant delay in the ratification and implementation of the Mauritius Convention; calls on the Member States to adopt without delay the proposal for a Council decision for its conclusion on behalf of the EU; points out the recent rulings of the Court of Justice on exclusive and shared competences in relation to international treaty ratification, which may offer guidance on unblocking the ratification of this Convention;

An EU investment policy beyond investor-state adjudication

50.

Notes that, on a global scale in 2017, 2019 and 2020, more investment treaties were terminated than new IIAs concluded; underlines that most recently concluded mega-regional IIAs employ an increasingly cautious approach to investor-state adjudication;

51.

Calls for EU support to strengthen domestic legal systems and the rule of law in partner countries by means of EU-level technical assistance, which would ensure a favourable environment for foreign investment while addressing systemic failures that have a negative impact on sustainable development in these countries;

52.

Urges the Commission to develop an EU foreign investment strategy to incentivise and protect sustainable investments, in all their dimensions, without necessarily relying on investor-state adjudication, as well as to update its investment protection model adopted in 2015 in line with the requests of this resolution, to provide a guide for the negotiation of new or updated EU agreements;

o o

53.

Instructs its President to forward this resolution to the Council, the Commission, and the governments and parliaments of the Member States.

(1) OJ L 351, 20.12.2012, p. 40.

(2) OJ L 257, 28.8.2014, p. 121.

(3) OJ L 198, 22.6.2020, p. 13.

(4) OJ C 296 E, 2.10.2012, p. 34.

(5) OJ C 168 E, 14.6.2013, p. 1.

(6) OJ C 265, 11.8.2017, p. 17.

(7) OJ C 101, 16.3.2018, p. 30.

(8) OJ L 149, 30.4.2021, p. 10.

(9) OJ L 169, 29.5.2020, p. 1.

(10) Organisation for Economic Co-operation and Development, ‘FDI in Figures’, April 2021.

(11) A European Green Deal; a Europe fit for the digital age; an economy that works for people; a stronger Europe in the world; promoting our European way of life; a new push for European democracy.

(12) Such as the EU-Canada Comprehensive Economic and Trade Agreement (Annex 8b paragraph 4 which defines public debt as a debt instrument of any level of government of a Party), the CPTPP and the 2009 BLEU (Belgium-Luxembourg Economic Union) -Colombia BIT.

(13) Including on public health, social services, public education, safety, environment or public morals, social or consumer protections, privacy and data protection, or the promotion and protection of cultural diversity.

(14) Legally binding instrument to regulate, international human rights law, the activities of transnational corporations and other business enterprises https://www.ohchr.org/en/hr-bodies/hrc/wg-trans-corp/igwg-on-tnc

(15) The Convention on the Recognition and Enforcement of Foreign Arbitral Awards, also known as the ‘New York Arbitration Convention’.

27.1.2023

Official Journal of the European Union

C 32/108

P9_TA(2022)0246

Revision of the EU Emissions Trading System ***I

Amendments adopted by the European Parliament on 22 June 2022 on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union, Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and Regulation (EU) 2015/757 (COM(2021)0551 — C9-0318/2021 — 2021/0211(COD)) (1)

(Ordinary legislative procedure: first reading)

(2023/C 32/11)

Amendment 406

Proposal for a directive

Recital 1

Text proposed by the Commission

Amendment

(1)

The Paris Agreement, adopted in December 2015 under the United Nations Framework Convention on Climate Change (UNFCCC) entered into force in November 2016 (‘the Paris Agreement’) (3). Its Parties have agreed to hold the increase in the global average temperature well below 2 oC above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 oC above pre-industrial levels. By adopting the Glasgow Climate Pact, the Parties to the Paris Agreement recognised that limiting the increase in the global average temperature to 1,5 oC above pre-industrial levels would significantly reduce the risks and impacts of climate change, and they committed to strengthening their 2030 targets by the end of 2022 to close the ambition gap, in line with the findings of the Intergovernmental Panel on Climate Change (IPCC). This should be done in a manner that is equitable and respects the principle of common but differentiated responsibilities and respective capabilities, in the light of different national circumstances. The revision of the European Union Emissions Trading System (EU ETS), including of its market stability reserve, is a unique opportunity.

Amendment 407

Proposal for a directive

Recital 1 a (new)

Text proposed by the Commission

Amendment

(1a)

The urgency of the need to keep the Paris Agreement goal of 1,5 oC alive has become more significant following the findings of the IPCC in its report of 7 August 2021 entitled ‘Climate Change 2021: The Physical Science Basis’. The IPCC found that global temperature will reach or exceed the 1,5 oC mark earlier than previously anticipated, namely within the next 20 years. It also found that unless there are immediate and ambitious reductions in greenhouse gas emissions, it will no longer be possible to limit global warming to close to 1,5 oC or even 2 oC. In addition, in its report of 28 February 2022 entitled ‘Climate Change 2022: Impacts, Adaptation and Vulnerability’, the IPCC stated, with very high confidence, that climate change is a threat to human well-being and planetary health. Any further delay in concerted anticipatory global action on adaptation and mitigation will miss a brief and rapidly closing window of opportunity to secure a liveable and sustainable future for all.

Amendment 408

Proposal for a directive

Recital 1 b (new)

Text proposed by the Commission

Amendment

(1b)

The need for urgent action is further intensified by the increase in the frequency and intensity of extreme weather conditions as a direct result of climate change. According to the United Nations Office for Disaster Risk Reduction, the number of disasters recorded worldwide and the scale of global economic losses have nearly doubled in the last 20 years, much of which increase corresponds to the significant rise in the number of climate-related disasters.

Amendment 409

Proposal for a directive

Recital 1 c (new)

Text proposed by the Commission

Amendment

(1c)

The Union should therefore address this urgency by stepping up its efforts and establishing itself as an international leader in the fight against climate change, while reflecting the principles of equity and of common but differentiated responsibilities and respective capabilities, as laid down in Article 2(2) of the Paris Agreement.

Amendment 410

Proposal for a directive

Recital 1 d (new)

Text proposed by the Commission

Amendment

(1d)

In its resolution of 28 November 2019 on the climate and environment emergency (1a) , the European Parliament urged the Commission to take immediate and ambitious action to limit global warming to 1,5 oC and to avoid massive biodiversity loss, including by addressing inconsistencies of current Union policies on the climate and environment emergency and by ensuring that all relevant future legislative and budgetary proposals are fully aligned with the objective of limiting global warming to under 1,5 oC and that they do not contribute to biodiversity loss.

Amendment 411

Proposal for a directive

Recital 2

Text proposed by the Commission

Amendment

(2)	Tackling climate and environmental-related challenges and reaching the objectives of the Paris Agreement are at the core of the Communication on ‘The European Green Deal’, adopted by the Commission on 11 December 2019 (4).

(2)	Tackling climate and environmental-related challenges and reaching the objectives of the Paris Agreement are therefore at the core of the Communication on ‘The European Green Deal’, adopted by the Commission on 11 December 2019 (4).

Amendment 412

Proposal for a directive

Recital 3

Text proposed by the Commission

Amendment

(3)

The European Green Deal combines a comprehensive set of mutually reinforcing measures and initiatives aimed at achieving climate neutrality in the EU by 2050, and sets out a new growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient and competitive economy, where economic growth is decoupled from resource use . It also aims to protect, conserve and enhance the Union's natural capital, and protect the health and well-being of citizens from environment-related risks and impacts. At the same time, this transition affects women and men differently and has a particular impact on some disadvantaged groups, such as older people, persons with disabilities and persons with a minority racial or ethnic background. It must therefore be ensured that the transition is just and inclusive , leaving no one behind.

(3)

The European Green Deal provides the starting point for the achievement of the Union’s climate-neutrality objective by 2050, at the latest, and the aim to achieve negative emissions thereafter, as laid down in Article 2(1) of Regulation (EU) 2021/1119 of the European Parliament and of the Council (1a) . It sets out a new growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient and competitive economy, while leaving no one behind in a just transition that also addresses energy poverty . It also aims to protect, conserve and enhance the Union's natural capital, and protect the health and well-being of citizens from environment-related risks and impacts. This transition affects workers from various sectors and each gender differently and has a particular impact on some disadvantaged and vulnerable groups, such as older people, persons with disabilities, persons with a minority racial or ethnic background and low and lower-middle income individuals and households. It also imposes greater challenges on certain regions, in particular structurally disadvantaged and peripheral regions, as well as islands . It must therefore be ensured that the transition is just and inclusive.

Amendment 413

Proposal for a directive

Recital 3 a (new)

Text proposed by the Commission

Amendment

(3a)

The EU ETS is a cornerstone of the Union’s climate policy and constitutes its key tool for reducing greenhouse gas emissions in a cost-effective way. In line with the commitments made in COP26 in Glasgow to review the nationally determined contributions on an annual basis, the Commission should revise its nationally determined contribution to account for all the sectors included in the EU ETS during this revision of Directive 2003/87/EC of the European Parliament and of the Council (1a) .

Amendment 414

Proposal for a directive

Recital 4

Text proposed by the Commission

Amendment

(4)

The necessity and value of the European Green Deal have only grown in light of the very severe effects of the COVID-19 pandemic on the health, living and working conditions and well-being of the Union’s citizens, which have shown that our society and our economy need to improve their resilience to external shocks and act early to prevent or mitigate them. European citizens continue to express strong views that this applies in particular to climate change (5).

(4)

The necessity and value of a well-implemented European Green Deal have only grown in light of the very severe effects of the COVID-19 pandemic on the health, living and working conditions and well-being of the Union’s citizens, which have shown that our society and our economy need to improve their resilience to external shocks and act early to prevent or mitigate them in a manner that is just and results in no one being left behind, including those at risk of energy poverty . European citizens continue to express strong views that this applies in particular to climate change (5).

Amendment 415

Proposal for a directive

Recital 4 a (new)

Text proposed by the Commission

Amendment

(4a)

Delivering on the European Green Deal should ensure quality job creation and social progress for all. To be socially acceptable, the climate ambition proposed in this Directive should be matched by an equivalent social ambition, in line with the European Pillar of Social Rights. The European Green Deal agenda should be an opportunity to maintain and create quality jobs, promote decent work, raise labour standards, strengthen social dialogue and collective bargaining, tackle discrimination at work and promote gender equality. In order to achieve those objectives, just transition mechanisms should complement all proposed actions in the framework of the European Green Deal and the ‘Fit for 55’ package.

Amendment 416

Proposal for a directive

Recital 4 b (new)

Text proposed by the Commission

Amendment

(4b)

Considering that the transition towards a sustainable economy needs to be combined with upholding Europe's competitiveness and creating jobs, it is crucial to the success of the European Green Deal that the single market is not overburdened with additional costs for companies to adjust to a new regulatory environment.

Amendment 417

Proposal for a directive

Recital 6

Text proposed by the Commission

Amendment

(6)

In Regulation (EU) 2021/1119 of the European Parliament and of the Council (7) the Union has enshrined the target of economy-wide climate neutrality by 2050 in legislation . That Regulation also establishes a binding Union domestic reduction commitment of net greenhouse gas emissions (emissions after deduction of removals) of at least 55 % below 1990 levels by 2030.

(6)

In Regulation (EU) 2021/1119 the Union has enshrined in legislation the target of economy-wide climate neutrality by 2050 , at the latest, and the aim to achieve negative emissions thereafter . That Regulation also establishes a binding Union domestic reduction commitment of net greenhouse gas emissions (emissions after deduction of removals) of at least 55 % below 1990 levels by 2030.

Amendment 418

Proposal for a directive

Recital 7

Text proposed by the Commission

Amendment

(7)

All sectors of the economy need to contribute to achieving those emission reductions. Therefore, the ambition of the EU Emissions Trading System (EU ETS), established by Directive 2003/87/EC of the European Parliament and of the Council (8) to promote reductions of greenhouse gas emissions in a cost-effective and economically efficient manner, should be increased in a manner commensurate with this economy-wide net greenhouse gas emissions reduction target for 2030.

(7)

All sectors of the economy need to contribute to achieving those emission reductions. Therefore, the ambition of the EU Emissions Trading System (EU ETS), established by Directive 2003/87/EC to promote reductions of greenhouse gas emissions in a cost-effective and economically efficient manner, should be increased in a manner commensurate with this economy-wide net greenhouse gas emissions reduction target for 2030 , the Union’s climate-neutrality objective to be achieved by 2050, at the latest, and the aim to achieve negative emissions thereafter, as laid down in Article 2(1) of Regulation (EU) 2021/1119 .

Amendment 419

Proposal for a directive

Recital 8

Text proposed by the Commission

Amendment

(8)

The EU ETS should incentivise production from installations that partly or fully reduce greenhouse gas emissions. Therefore, the description of some categories of activities in Annex I to Directive 2003/87/EC should be amended to ensure an equal treatment of installations in the sectors concerned. In addition, free allocation for the production of a product should be independent of the nature of the production process. It is therefore necessary to modify the definition of the products and of the processes and emissions covered for some benchmarks to ensure a level playing field for new and existing technologies. It is also necessary to decouple the update of the benchmark values for refineries and for hydrogen to reflect the increasing importance of production of hydrogen outside the refineries sector.

(8)

Amendment 420

Proposal for a directive

Recital 8 a (new)

Text proposed by the Commission

Amendment

(8a)

When defining the principles for setting ex-ante benchmarks in individual sectors and subsectors, the Commission should consult the relevant stakeholders, including in the sectors and subsectors concerned, civil society representatives and the European Scientific Advisory Board on Climate Change referred to in Article 3 of Regulation (EU) 2021/1119.

Amendment 421

Proposal for a directive

Recital 13

Text proposed by the Commission

Amendment

(13)

Greenhouse gases that are not directly released into the atmosphere should be considered emissions under the EU ETS and allowances should be surrendered for those emissions unless they are stored in a storage site in accordance with Directive 2009/31/EC of the European Parliament and of the Council (13), or they are permanently chemically bound in a product so that they do not enter the atmosphere under normal use. The Commission should be empowered to adopt implementing acts specifying the conditions where greenhouse gases are to be considered as permanently chemically bound in a product so that they do not enter the atmosphere under normal use, including obtaining a carbon removal certificate, where appropriate, in view of regulatory developments with regard to the certification of carbon removals.

(13)

Greenhouse gases that are not directly released into the atmosphere should be considered emissions under the EU ETS and allowances should be surrendered for those emissions unless they are stored in a storage site in accordance with Directive 2009/31/EC of the European Parliament and of the Council (13), or they are permanently chemically bound in a product so that they do not enter the atmosphere under normal use and disposal. The Commission should be empowered to adopt delegated acts specifying the conditions where greenhouse gases are to be considered as permanently chemically bound in a product so that they do not enter the atmosphere under normal use and disposal , including obtaining a carbon removal certificate, where appropriate, in view of regulatory developments with regard to the certification of carbon removals.

Amendment 422

Proposal for a directive

Recital 13 a (new)

Text proposed by the Commission

Amendment

(13a)

The EU ETS should avoid, as much as possible, undue exemptions and distortive measures. In the long-term, all sectors should play a role in contributing to the achievement of climate neutrality within the Union by 2050 and all CO2 emissions should be covered by the appropriate Union policy instruments. The inclusion of municipal waste incineration installations in the EU ETS would contribute to the circular economy by encouraging recycling, reuse and repair of products, while also contributing to economy-wide decarbonisation. Since recycling and regeneration activities are already covered by the EU ETS, the inclusion of municipal waste incineration installations would reinforce incentives for sustainable management of waste in line with the waste hierarchy. It would complement other elements of Union waste legislation. Moreover, integrating waste incineration into the EU ETS would create a level playing field between the regions that have included municipal waste incineration under the scope, reducing the risk of tax competition between regions. However, to avoid deviation of waste from municipal waste incineration installations towards landfills in the Union, which create methane emissions, and exports of waste to third countries, with a potentially hazardous impact on the environment, the inclusion of municipal waste incineration installations within the scope of Directive 2003/87/EC from 1 January 2026 should be preceded by an impact assessment to be conducted by 31 December 2024, which, where appropriate, should be accompanied by a legislative proposal to prevent such deviation of waste and such exports.

Amendment 423

Proposal for a directive

Recital 13 b (new)

Text proposed by the Commission

Amendment

(13b)

All greenhouse gas emissions captured and transferred for utilisation through carbon capture and utilisation (‘CCU’) processes that are not permanently chemically bound in a product such that they do not enter the atmosphere under normal use and disposal should be accounted for. In the absence of all stages of the process, in particular emissions from waste incineration installations, being covered by carbon pricing, reliance on accounting for emissions at the point of their release into the atmosphere would result in emissions being undercounted. In order to regulate the capture of carbon in a way that reduces net emissions, ensures that all emissions are accounted for and that double counting is avoided, while generating economic incentives, the Commission should assess how to account for emissions of greenhouse gases which are considered to have been captured and utilised to become chemically bound in a product based on a life-cycle assessment of the product, for example where these are used for the manufacture of a product or where such proportionate reduction contributes to innovative national policies approved by the competent authority in the Member State concerned to ensure and incentivise cooperation between sectors, and should, where appropriate, present a legislative proposal to include a transparent, comparable and reliable methodology.

Amendment 424

Proposal for a directive

Recital 13 c (new)

Text proposed by the Commission

Amendment

(13c)

In line with Regulation (EU) 2021/1119, priority should be given to direct emissions reductions, which will have to be complemented by increased CO2 removals in order to achieve climate neutrality. In the medium-term, CO2 removals could already help to increase the ambition above the Union 2030 climate target as laid down in Regulation (EU) 2021/1119. Therefore, the Commission should examine how negative emissions resulting from greenhouse gases that are removed from the atmosphere and safely and permanently stored, for example through direct air capture, can be accounted for and incentivised in emissions trading, including by proposing a clear scope and strict criteria and safeguards to ensure that such removals do not offset necessary emissions reductions but are genuine and permanent.

Amendment 425

Proposal for a directive

Recital 13 d (new)

Text proposed by the Commission

Amendment

(13d)

According to the communication of the Commission of 14 October 2020 on an EU strategy to reduce methane emissions, 26 % of the continent’s methane emissions come from waste. Worldwide, landfills and dumpsites are predicted to account for 8 to 10 % of all anthropogenic greenhouse gas emissions by 2025. The Union should aim at significantly reducing landfilling in the Union and should in any case avoid the future inclusion of waste incineration in the EU ETS creating an uneven playing field and leading to increased landfilling. Therefore, the Commission should also assess the possibility and feasibility of including all waste management processes, such as landfills, fermentation, composting and mechanical-biological treatment, in the EU ETS.

Amendment 426

Proposal for a directive

Recital 14

Text proposed by the Commission

Amendment

(14)

International maritime transport activity, consisting of voyages between ports under the jurisdiction of two different Member States or between a port under the jurisdiction of a Member State and a port outside the jurisdiction of any Member State, has been the only means of transportation not included in the Union's past commitments to reduce greenhouse gas emissions. Emissions from fuel sold in the Union for journeys that depart in one Member State and arrive in a different Member State or a third country have grown by around 36 % since 1990. Those emissions represent close to 90 % of all Union navigation emissions as emissions from fuel sold in the Union for journeys departing and arriving in the same Member State have been reduced by 26 % since 1990. In a business-as-usual scenario, emissions from international maritime transport activities are projected to grow by around 14 % between 2015 and 2030 and 34 % between 2015 and 2050. If the climate change impact of maritime transport activities grows as projected, it would significantly undermine reductions made by other sectors to combat climate change.

(14)

Amendment 427

Proposal for a directive

Recital 14 a (new)

Text proposed by the Commission

Amendment

(14a)

International maritime transport is the only means of transportation that has not been included in the Union's commitment to reduce greenhouse gas emissions, despite the fact that the European Parliament has repeatedly called for all sectors of the economy to contribute to the joint effort to complete the transition to net-zero greenhouse gas emissions as soon as possible and by 2050 at the latest, in line with the Union's commitments under the Paris Agreement. CO2 remains the dominant cause of maritime transport’s climate impact when calculated on a global warming-potential 100-year basis, accounting for 98 %, or, if black carbon is included, 91 %, of total international greenhouse gas emissions in CO2 equivalents. However, according to a report entitled ‘Fourth IMO Greenhouse Gas Study’ of the International Maritime Organization (IMO), published in 2020, there was an 87 % increase of methane (CH4) over the period from 2012 to 2018. Therefore, and in line with the amendments adopted by the European Parliament on 16 September 2020 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2015/757, in order to take appropriate account of the global data collection system for ship fuel oil consumption data, both CO2 and CH4 emissions, as well as nitrous oxides (N2O), should be included in the extension of the EU ETS to maritime transport activities. Consequently, an administering authority should ensure that shipping companies monitor and report aggregated emissions data including the release of CO2, CH4 and N2O to ensure consistency with Regulation (EU) …/… [FuelEU Maritime]. Furthermore, the Commission should by 31 December 2024 assess, and report to the European Parliament and to the Council on, the impact on the global climate of greenhouse gas emissions other than CO2, N2O and CH4 and of particles with a global warming potential, and, where appropriate, submit a legislative proposal on the inclusion of those emissions and particles from maritime transport activities in the scope of the EU ETS.

Amendment 428

Proposal for a directive

Recital 15

Text proposed by the Commission

Amendment

(15)

In 2013, the Commission adopted a strategy for progressively integrating maritime emissions into the Union's policy for reducing greenhouse gas emissions. As a first step in this approach, the Union established a system to monitor, report and verify emissions from maritime transport in Regulation (EU) 2015/757 of the European Parliament and of the Council (14), to be followed by the laying down of reduction targets for the maritime sector and the application of a market based measure. In line with the commitment of the co-legislators expressed in Directive (EU) 2018/410 of the European Parliament and of the Council (15), action by the International Maritime Organization (IMO) or the Union should start from 2023, including preparatory work on adoption and implementation of a measure ensuring that the sector duly contributes to the efforts needed to achieve the objectives agreed under the Paris Agreement and due consideration being given by all stakeholders. In order to increase the environmental effectiveness of Union measures and avoid unfair competition and incentives for circumvention, the scope of Regulation (EU) 2015/757 should be amended to cover ships of 400 gross tonnage and above from 1 January 2024. In order to ensure there is a proportionate administrative burden, for ships of less than 5 000 gross tonnage, operators should only be required to report the information which is relevant for inclusion from 1 January 2027 of such ships within the scope of the EU ETS, in particular the type of fuel, its carbon factor and energy density.

Amendment 429

Proposal for a directive

Recital 16

Text proposed by the Commission

Amendment

(16)

Pursuant to Directive (EU) 2018/410, the Commission should report to the European Parliament and to the Council on the progress achieved in the IMO towards an ambitious emission reduction objective, and on accompanying measures to ensure that the maritime transport sector duly contributes to the efforts needed to achieve the objectives agreed under the Paris Agreement. Efforts to limit global maritime emissions through the IMO are under way and should be encouraged. However, while the recent progress achieved through the IMO is welcome, these measures will not be sufficient to achieve the objectives of the Paris Agreement.

(16)

Pursuant to Directive (EU) 2018/410, the Commission should report to the European Parliament and to the Council on the progress achieved in the IMO towards an ambitious emission reduction objective, and on accompanying measures to ensure that the maritime transport sector duly contributes to the efforts needed to achieve the objectives agreed under the Paris Agreement. Efforts to limit global maritime emissions through the IMO are under way and should be encouraged. However, the recent developments in the IMO framework are not sufficient to achieve the objectives of the Paris Agreement. Given the international character of shipping, the Commission in collaboration with Member States should further step up diplomatic efforts to make progress on the development of a global market-based measure at the IMO level.

Amendment 430

Proposal for a directive

Recital 16 a (new)

Text proposed by the Commission

Amendment

(16a)

Evasive port calls in neighbouring non-EU countries could seriously jeopardise the effectiveness of the EU ETS in relation to maritime transport, as it would not reduce total shipping emissions. Such evasive port calls could even increase overall emissions, in particular where such evasion leads to longer voyages to and from third countries with lower environmental standards. Therefore, the Commission should monitor, and report biennially from … [the year following the entry into force of this amending Directive] on, the implementation of the Chapter on maritime transport and possible trends as regards companies seeking to avoid being bound by the requirements of this Directive and should present, where applicable, a legislative proposal to address any evidence of evasive port calls.

Amendment 431

Proposal for a directive

Recital 17

Text proposed by the Commission

Amendment

(17)

In the European Green Deal, the Commission stated its intention to take additional measures to address greenhouse gas emissions from the maritime transport sector through a basket of measures to enable the Union to reach its emissions reduction targets. In this context, Directive 2003/87/EC should be amended to include the maritime transport sector in the EU ETS in order to ensure this sector contributes to the increased climate objectives of the Union as well as to the objectives of the Paris Agreement, which requires developed countries to take the lead by undertaking economy-wide emission reduction targets, while developing countries are encouraged to move over time towards economy-wide emission reduction or limitation targets (16). Considering that emissions from international aviation outside Europe should be capped from January 2021 by global market-based action while there is no action in place that caps or prices maritime transport emissions, it is appropriate that the EU ETS covers a share of the emissions from voyages between a port under the jurisdiction of a Member State and port under the jurisdiction of a third country, with the third country being able to decide on appropriate action in respect of the other share of emissions. The extension of the EU ETS to the maritime transport sector should thus include half of the emissions from ships performing voyages arriving at a port under the jurisdiction of a Member State from a port outside the jurisdiction of a Member State, half of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State , emissions from ships performing voyages arriving at a port under the jurisdiction of a Member State from a port under the jurisdiction of a Member State, and emissions at berth in a port under the jurisdiction of a Member State. This approach has been noted as a practical way to solve the issue of Common but Differentiated Responsibilities and Capabilities, which has been a longstanding challenge in the UNFCCC context. The coverage of a share of the emissions from both incoming and outgoing voyages between the Union and third countries ensures the effectiveness of the EU ETS , notably by increasing the environmental impact of the measure compared to a geographical scope limited to voyages within the EU, while limiting the risk of evasive port calls and the risk of delocalisation of transhipment activities outside the Union. To ensure a smooth inclusion of the sector in the EU ETS , the surrendering of allowances by shipping companies should be gradually increased with respect to verified emissions reported for the period 2023 to 2025. To protect the environmental integrity of the system, to the extent that fewer allowances are surrendered in respect of verified emissions for maritime transport during those years, once the difference between verified emissions and allowances surrendered has been established each year, a corresponding a number of allowances should be cancelled. As from 2026, shipping companies should surrender the number of allowances corresponding to all of their verified emissions reported in the preceding year.

(17)

Greenhouse gas emissions from the maritime sector account for around 2,5 % of Union emissions. The lack of decisive action within the IMO framework has delayed innovation and introduction of necessary measures to reduce emissions in the sector. In the European Green Deal, the Commission stated its intention to take additional measures to address greenhouse gas emissions from the maritime transport sector through a basket of measures to enable the Union to reach its emissions reduction targets. In this context, Directive 2003/87/EC should be amended to include the maritime transport sector in the EU ETS in order to ensure this sector contributes its fair share to the increased climate objectives of the Union as well as to the objectives of the Paris Agreement, which requires developed countries to take the lead by undertaking economy-wide emission reduction targets, while developing countries are encouraged to move over time towards economy-wide emission reduction or limitation targets (16). The surrendering of allowances by shipping companies should be fully implemented from 2024 and shipping companies should surrender the number of allowances corresponding to all of their verified emissions reported in the preceding year. Considering that emissions from international aviation outside Europe should be capped from January 2021 by global market-based action while there is no action in place that caps or prices maritime transport emissions, it is appropriate that the EU ETS covers such emissions, while providing for derogations under strict conditions if third countries take responsibility for such emissions or an IMO market-based measure is in place to cover a share of the emissions from voyages between a port under the jurisdiction of a Member State and port under the jurisdiction of a third country, with the third country being able to decide on appropriate action in respect of the other share of emissions. From 2027 onwards, the extension of the EU ETS to the maritime transport sector should thus include emissions from voyages to and from third countries, while providing for derogations in relation to half of the emissions from ships performing voyages arriving at a port under the jurisdiction of a Member State from a port outside the jurisdiction of a Member State, half of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State under strict conditions, in particular where a third country has a carbon pricing mechanism in place, or has established through a bilateral or multilateral agreement between the Union and one or more third countries a carbon pricing mechanism linked to the EU ETS , pursuant to Article 25 of Directive 2003/87/EC, to cap and reduce emissions to a level at least equivalent to the EU ETS, meaning a binding mechanism to cap, reduce and price maritime greenhouse gas emissions, resulting in an absolute emissions reduction at least equivalent to the case where 100 % of those emissions would be subject to the EU ETS or where a third country is a Least Developed Country or Small Island Developing State that has a GDP per capita not equalling or exceeding the Union average and includes such emissions under its nationally determined contributions under the Paris Agreement.

Amendment 432

Proposal for a directive

Recital 17 a (new)

Text proposed by the Commission

Amendment

(17a)

The adverse impacts of climate change affect the respect of human rights, including the right to food, water, sanitation, health, decent housing and life. The Paris Agreement positioned as the third pillar of climate action the damage and loss that disproportionately affect people living in conditions of vulnerability, indigenous peoples, women, children, and people with disabilities. The low-income, lower-middle income and least developed countries are the most vulnerable to the impact of climate change. Although their contributions to the greenhouse gases in the atmosphere are very small or even negligible, they tend to be more heavily exposed to impacts of climate change, notably in view of the state of their infrastructure and their populations’ living conditions. Those countries are now in a calamitous situation because of the combination of the global failure to curb greenhouse gas emissions, which increases their adaptation needs and costs ever higher, and the public finance crises caused by the COVID-19 pandemic and the associated ‘debt pandemic’.

Amendment 433

Proposal for a directive

Recital 17 b (new)

Text proposed by the Commission

Amendment

(17b)

The Commission, the Council and the European Parliament should work with third countries in order to facilitate acceptance of the provisions of Directive 2003/87/EC as regards maritime transport activities and to strengthen international cooperation in this area. At the same time, the Commission, the Council and the European Parliament should work to strengthen global measures through the IMO.

Amendment 434

Proposal for a directive

Recital 17 c (new)

Text proposed by the Commission

Amendment

(17c)

Significant financial resources are needed to implement the Paris Agreement and the Union remains committed to contributing to the developed countries’ goal of jointly mobilising from different sources USD 100 billion per year, starting from 2020, to support developing countries. The decision taken at COP24 on having a more ambitious target from 2025 onwards, beyond the current commitment, is a step in the right direction, but the actual pledges by developed countries still fall a long way short of the collective goal, and the resulting gap should be filled. The Union and its Member States should step up their efforts to mobilise international climate finance for developing countries and develop an international roadmap outlining each developed country’s fair share of the USD 100 billion financial pledge and the mechanisms to ensure that pledges are turned into deeds. Emerging economies should make a contribution, from 2025 onwards, to the increased amount of international climate financing in the future.

Amendment 435

Proposal for a directive

Recital 17 d (new)

Text proposed by the Commission

Amendment

(17d)

The Commission should assist developing countries and step up its support for such countries, including through the EU ETS, in order to strengthen their ability to adapt and their resilience in relation to climate change. Collective pledging of support for climate action in developing countries by the Union would increase its influence in the UNFCCC negotiations, while contributing through the Green Climate Fund would also encourage other countries to contribute a portion of the revenues from their own carbon pricing schemes to that fund. The Commission should submit a report to the European Parliament and to the Council in which it examines the decarbonisation needs in developing countries by assessing greenhouse gas emissions in sectors corresponding to the sectors covered under the EU ETS and CBAM.

Amendment 436

Proposal for a directive

Recital 17 e (new)

Text proposed by the Commission

Amendment

(17e)

The Union and its Member States are the largest providers of public climate finance. Financing climate action is essential, as many developing countries have conditional nationally determined contributions, the achievement of which depends on financial support. The Commission should support developing countries with decarbonisation of their industries, in particular in those sectors corresponding to the sectors covered under the EU ETS and CBAM, in order to facilitate their achievement of economy-wide emission reduction targets in line with the Paris Agreement. Particular priority should be given to addressing the needs of least developed countries through the use of EU ETS allowances to fund climate action, in particular adaptation to the impacts of climate change.

Amendment 437

Proposal for a directive

Recital 17 f (new)

Text proposed by the Commission

Amendment

(17f)

Renewing fleets of ice-class ships and developing innovative technology that reduces the emissions of such ships while sailing in winter conditions will take time and require financial support. Currently, the design enabling ice-class ships to sail in ice conditions, leads to such ships producing more emissions both in open water and when navigating in ice conditions than ships of similar size designed for sailing only in open water. On average, ice-class ships, when sailing in open water, consume about 2 to 5 % more fuel than ships of similar size designed for sailing in open water only. Therefore, a flag-neutral method to take into account ice conditions in northern parts of the Union should be implemented under this Directive allowing for a reduction of allowances to be surrendered by shipping companies on the basis of their ships’ ice class or navigation in ice conditions, or both, until 31 December 2029. As a result, from 2030 onwards, shipping companies should be liable to surrender allowances corresponding to one hundred percent (100 %) of verified emissions reported for each respective year notwithstanding their ships’ ice class and navigation in ice conditions. There should also be specific support for innovation regarding the decarbonisation of ice-class ships through an Ocean Fund.

Amendment 438

Proposal for a directive

Recital 18

Text proposed by the Commission

Amendment

(18)

The provisions of Directive 2003/87/EC as regards maritime transport activities should be kept under review in light of future international developments and efforts undertaken to achieve the objectives of the Paris Agreement, including the second global stocktake in 2028, and subsequent global stocktakes every five years thereafter, intended to inform successive nationally determined contributions. In particular, the Commission should report any time before the second global stocktake in 2028 — and therefore no later than by 30 September 2028 — to the European Parliament and to the Council on progress in the IMO negotiations concerning a global market-based measure. In its report, the Commission should analyse the International Maritime Organization instruments and, assess, as relevant, how to implement those instruments in Union law through a revision of Directive 2003/87/EC. In the event that a global market-based measure has been adopted at IMO level leading to greenhouse gas emission reductions which are in line with the Paris Agreement and at least comparable to those resulting from the Union measures , the Commission should consider a proportionate reduction of the scope of application of the Union measures to avoid the creation of a double burden, while maintaining in the scope of the EU ETS at least fifty percent (50 %) of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, and fifty percent (50 %) percent of the emissions from ships performing voyages departing from a port outside the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Member State, while recognising the Union’s sovereignty to regulate its share of emissions from international shipping voyages in line with the obligations of the Paris Agreement. However, in the event that there has been insufficient progress at IMO level or that global measures have been adopted at IMO level which are not in line with the Paris Agreement and at least comparable to those resulting from the Union measures, the Commission should keep the Union measures to cover one hundred percent (100 %) of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State and one hundred percent (100 %) of the emissions from ships performing voyages departing from a port outside the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Member State, through an amendment of Directive 2003/87/EC.

Amendment 439

Proposal for a directive

Recital 19

Text proposed by the Commission

Amendment

(19)	The Commission should review the functioning of Directive 2003/87/EC in relation to maritime transport activities in the light of experience of its application, including in relation to possible evasive practices, and should then propose measures to ensure its effectiveness.

(19)

The Commission should review the functioning of Directive 2003/87/EC in relation to maritime transport activities in the light of experience of its application, including in relation to possible evasive practices, and should then propose measures to ensure its effectiveness aligned with the Union’s climate-neutrality objective by 2050, at the latest, and the aim to achieve negative emissions thereafter as laid down in Article 2(1) of Regulation(EU) 2021/1119 and the objectives of the Paris Agreement .

Amendment 440

Proposal for a directive

Recital 20

Text proposed by the Commission

Amendment

(20)

The person or organisation responsible for the compliance with the EU ETS should be the shipping company, defined as the shipowner or any other organisation or person, such as the manager or the bareboat charterer, that has assumed the responsibility for the operation of the ship from the shipowner and that, on assuming such responsibility, has agreed to take over all the duties and responsibilities imposed by the International Management Code for the Safe Operation of Ships and for Pollution Prevention. This definition is based on the definition of ‘company’ in Article 3, point (d) of Regulation (EU) 2015/757, and in line with the global data collection system established in 2016 by the IMO. However, the shipping company is not always responsible for purchasing the fuel or taking operational decisions that affect the greenhouse gas emissions of the ship. Those responsibilities can be assumed by an entity other than the shipping company under a contractual arrangement. In that case, in order to ensure that the polluter pays principle is fully respected and to encourage the adoption of efficiency measures and cleaner fuels, a binding clause should be included in such arrangements for the purpose of passing on the costs so that the entity that is ultimately responsible for the decisions affecting the greenhouse gas emissions of the ship is held accountable for covering the compliance costs paid by the shipping company under this Directive. That entity would normally be the entity that is responsible for the choice and purchase of the fuel used by the ship , or for the operation of the ship, as regards, for example, the choice of the cargo carried by, or the route and speed of, the ship.

Amendment 441

Proposal for a directive

Recital 20 a (new)

Text proposed by the Commission

Amendment

(20a)

The successful transition to zero emission shipping requires an integrated approach and the appropriate enabling environment to stimulate innovation, both as regards ships and in ports. That enabling environment involves public and private investment in research and innovation, technological and operational measures to improve the energy efficiency of ships and ports, and the deployment of sustainable alternative fuels, such as hydrogen and ammonia, that are produced from renewable energy sources, including through carbon contracts for difference (‘CCDs’), and of zero emission propulsion technologies, including the necessary refuelling and recharging infrastructure in ports. An Ocean Fund should be established from revenues generated from the auctioning of allowances in respect of maritime transport activities under the EU ETS, in order to improve the energy efficiency of ships and support investment aimed at facilitating the decarbonisation of maritime transport, including as regards short sea shipping and ports, and training and re-training of the workforce. In addition, the revenues generated from penalties imposed under Regulation (EU) … /… [FuelEU Maritime] should be allocated to the Ocean Fund as external assigned revenue in accordance with Article 21(5) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (1a) and Article 3gab(1) of Directive 2003/87/EC. The Commission should ensure that due consideration is given to supporting innovative projects contributing to the deployment and implementation of Regulation (EU) …/… [FuelEU Maritime] as well as projects that have a positive effect on biodiversity and help reduce the risk of noise, air and maritime pollution.

Amendment 442

Proposal for a directive

Recital 21

Text proposed by the Commission

Amendment

(21)

In order to reduce the administrative burden on shipping companies, one Member State should be responsible for each shipping company. The Commission should publish an initial list of shipping companies that performed a maritime activity falling within the scope of the EU ETS, which specifies the administering authority in respect of each shipping company. The list should be updated at least every two years to reattribute shipping companies to another administering authority as relevant. For shipping companies registered in a Member State, the administering authority should be that Member State. For shipping companies registered in a third country, the administering authority should be the Member State in which the shipping company had the greatest estimated number of port calls from voyages falling within the scope of Directive 2003/87/EC in the last two monitoring years. For shipping companies registered in a third country and which did not perform any voyage falling within the scope of Directive 2003/87/EC in the last two monitoring years, the administering authority should be the Member State from where the shipping company started its first voyage falling within the scope of that Directive. The Commission should publish and update on a biennial basis a list of shipping companies falling within the scope of Directive 2003/87/EC specifying the administering authority for each shipping company. In order to ensure equal treatment of shipping companies, Member States should follow harmonised rules for the administration of shipping companies for which they have responsibility, in accordance with detailed rules to be established by the Commission.

(21)

In order to reduce the administrative burden on shipping companies, one Member State should be responsible for each shipping company. The Commission should publish an initial list of shipping companies that performed a maritime activity falling within the scope of the EU ETS, which specifies the administering authority in respect of each shipping company. The list should be updated regularly and at least every year to reattribute shipping companies to another administering authority as relevant. For shipping companies registered in a Member State, the administering authority should be that Member State. For shipping companies registered in a third country, the administering authority should be the Member State in which the shipping company had the greatest estimated number of port calls from voyages falling within the scope of Directive 2003/87/EC in the last two monitoring years. For shipping companies registered in a third country and which did not perform any voyage falling within the scope of Directive 2003/87/EC in the last two monitoring years, the administering authority should be the Member State from where the shipping company started its first voyage falling within the scope of that Directive. The Commission should publish and update on a yearly basis a list of shipping companies falling within the scope of Directive 2003/87/EC specifying the administering authority for each shipping company. In order to ensure equal treatment of shipping companies, Member States should follow harmonised rules for the administration of shipping companies for which they have responsibility, in accordance with detailed rules to be established by the Commission.

Amendment 443

Proposal for a directive

Recital 24

Text proposed by the Commission

Amendment

(24)

Based on experience from similar tasks related to environmental protection, the European Maritime Safety Agency (EMSA) or another relevant organisation should, as appropriate and in accordance with its mandate, assist the Commission and the administering authorities in respect of the implementation of Directive 2003/87/EC. Owing to its experience with the implementation of Regulation (EU) 2015/757 and its IT tools, EMSA could assist the administering authorities notably as regards the monitoring, reporting and verification of emissions generated by maritime activities under the scope of this Directive by facilitating the exchange of information or developing guidelines and criteria.

(24)

Based on experience from similar tasks related to environmental protection, the European Maritime Safety Agency (EMSA) or another relevant organisation should, as appropriate and in accordance with its mandate, assist the Commission and the administering authorities in respect of the implementation of Directive 2003/87/EC. Owing to its experience with the implementation of Regulation (EU) 2015/757 and its IT tools, EMSA should assist the administering authorities notably as regards the monitoring, reporting and verification of emissions generated by maritime activities under the scope of this Directive by facilitating the exchange of information or developing guidelines and criteria.

Amendment 444

Proposal for a directive

Recital 26

Text proposed by the Commission

Amendment

(26)

Achieving the Union’s emissions reduction target for 2030 will require a reduction in the emissions of the sectors covered by the EU ETS of 61 % compared to 2005 . The Union-wide quantity of allowances of the EU ETS needs to be reduced to create the necessary long-term carbon price signal and drive for this degree of decarbonisation. To this end, the linear reduction factor should be increased, also taking into account the inclusion of emissions from maritime transport. The latter should be derived from the emissions from maritime transport activities reported in accordance with Regulation (EU) 2015/757 for 2018 and 2019 in the Union, adjusted, from year 2021, by the linear reduction factor.

(26)

Achieving the Union’s emissions reduction target for 2030 , while at the same time pursuing the goal of the Paris Agreement to limit global warming to 1,5 oC, will require a significant reduction in the emissions of the sectors covered by the EU ETS. The Union-wide quantity of allowances of the EU ETS needs to be reduced progressively to create the necessary long-term carbon price signal and drive for this degree of decarbonisation. To this end, the annual reduction factor should be increased, also taking into account the inclusion of emissions from maritime transport. The latter should be derived from the emissions from maritime transport activities reported in accordance with Regulation (EU) 2015/757 for 2018 and 2019 in the Union, adjusted, from year 2021, by the linear reduction factor.

Amendment 445

Proposal for a directive

Recital 27

Text proposed by the Commission

Amendment

(27)

Bearing in mind that this Directive amends Directive 2003/87/EC in respect of a period of implementation that has already started on 1 January 2021, for reasons of predictability, environmental effectiveness and simplicity, the steeper linear reduction pathway of the EU ETS should be a straight line from 2021 to 2030, such as to achieve emission reductions in the EU ETS of 61 % by 2030, as the appropriate intermediate step towards Union economy-wide climate neutrality in 2050. As the increased linear reduction factor can only apply from the year following the entry into force of this Directive, a one-off reduction of the quantity of allowances should reduce the total quantity of allowances so that it is in line with this level of annual reduction having been made from 2021 onwards.

(27)

Bearing in mind that this Directive amends Directive 2003/87/EC in respect of a period of implementation that has already started on 1 January 2021, for reasons of predictability, environmental effectiveness and simplicity, the steeper reduction pathway of the EU ETS should provide a clear direction towards achieving the goal of the Paris Agreement and Union economy-wide climate neutrality in 2050 at the latest . As the increased reduction factor can only apply from the year following the entry into force of this Directive, a one-off reduction of the quantity of allowances should reduce the total quantity of allowances so that it is in line with this level of annual reduction having been made from 2021 onwards.

Amendment 446

Proposal for a directive

Recital 28

Text proposed by the Commission

Amendment

(28)

Achieving the increased climate ambition will require substantial public resources in the EU as well as national budgets to be dedicated to the climate transition. To complement and reinforce the substantial climate-related spending in the EU budget, all auction revenues that are not attributed to the Union budget should be used for climate-related purposes. This includes the use for financial support to address social aspects in lower- and middle-income households by reducing distortive taxes. Further, to address distributional and social effects of the transition in low-income Member States , an additional amount of 2,5 % of the Union-wide quantity of allowances from [year of entry into force of the Directive] to 2030 should be used to fund the energy transition of the Member States with a gross domestic product (GDP) per capita below 65 % of the Union average in 2016-2018, through the Modernisation Fund referred to in Article 10d of Directive 2003/87/EC.

(28)

Achieving the increased climate ambition will require substantial public and private resources in the EU as well as national budgets to be dedicated to the climate transition. To complement and reinforce the substantial climate-related spending in the EU budget, all auction revenues that are not attributed to the Union budget in the form of own resources should be used for climate-related purposes , while ensuring a just transition and environmental integrity of action taken . This includes the use for financial support to address social aspects in lower- and middle-income households by reducing distortive taxes. To ensure compliance and public scrutiny, the Member States should adopt ex-ante plans on how they intend to use EU ETS revenues in accordance with their respective climate and energy targets, and they should annually report on the use of auctioning revenues in accordance with Article 19 of Regulation (EU) 2018/1999 of the European Parliament and of the Council (1a) . Further, to address distributional and social effects of the transition in the most affected territories , an additional amount of 2,5 % of the Union-wide quantity of allowances from [year of entry into force of the Directive] to 2030 should be used to fund the energy transition of the Member States with a gross domestic product (GDP) per capita below 65 % of the Union average in 2016-2018, through the Modernisation Fund referred to in Article 10d of Directive 2003/87/EC.

Amendment 447

Proposal for a directive

Recital 28 a (new)

Text proposed by the Commission

Amendment

(28a)

Since 2013, electricity producers have been obliged to purchase all the allowances they need to generate electricity. However, some Member States have retained the option of being able to continue to provide transitional free allocation for the modernisation of the energy sector in the periods from 2013 to 2020 and from 2021 to 2030. For the period from 2021 to 2030, only three Member States would continue to have that option. However, in its Special Report 18/2020 entitled ‘The EU’s Emissions Trading System: free allocation of allowances needed better targeting’, the European Court of Auditors found that that transitional free allocation did not contribute to the reduction of carbon intensity in the energy sector for countries eligible for such free allocation of allowances in the period from 2013 to 2020. Given the need for rapid decarbonisation, especially in the energy sector, and the limited effectiveness of that transitional free allocation, the option of transitional free allocation for the modernisation of the energy sector no longer seems fit for purpose. Therefore, that option should cease to be available and any allowances resulting from the exercise of that option which have not been allocated to operators in the Member States concerned by 31 December 2023 should be added to the total quantity of allowances that the Member State concerned receives for auctioning, or should be used to support investments within the framework of the Modernisation Fund.

Amendment 448

Proposal for a directive

Recital 28 b (new)

Text proposed by the Commission

Amendment

(28b)

A well-defined share of the auctioning revenue of the reformed and extended EU ETS should be used as an own resource to finance the Union budget as general income, in accordance with the legally binding Interinstitutional Agreement of 16 December 2020 on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources (1a) , which contains a roadmap towards the introduction of a basket of new own resources, including, inter alia, own resources based on the EU ETS and based on the Carbon Border Adjustment Mechanism (CBAM) and Pillar One of the OECD/G20 Agreement. Under that Agreement, such new own resources are envisaged to be introduced by 1 January 2023. New own resources would link the Union budget with the Union’s policy priorities such as the European Green Deal and the Union’s contribution to fair taxation, thus adding value and contributing to the climate mainstreaming objectives, the repayment of Next Generation EU debts and the resilience of the Union budget as a tool for investments and guarantees that respect the ‘do no significant harm’ criteria and the fundamental values enshrined in Article 2 of the Treaty on European Union.

Amendment 449

Proposal for a directive

Recital 28 c (new)

Text proposed by the Commission

Amendment

(28c)

In accordance with Council Decision (EU, Euratom) 2020/2053 of the European Parliament and of the Council (1a) , the Union is legally bound to repay all liabilities incurred by the exceptional and temporary empowerment to borrow funds under Next Generation EU by 31 December 2058 at the latest. Therefore, in order to respect the legally binding Interinstitutional Agreement and its roadmap for the introduction of a basket of new own resources destined to repay the Union’s debt, a share of the EU ETS revenues should accrue to the Union budget to help cover the borrowing costs as enshrined in [Council Decision (EU, Euratom) …/… amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union] and prevent substantial decreases that would jeopardize Union programmes in future Multiannual Financial Frameworks.

Amendment 450

Proposal for a directive

Recital 28 d (new)

Text proposed by the Commission

Amendment

(28d)

The substantial amounts of revenue generated by the reinforced EU ETS, which Member States, apart from the share attributed to the Union budget, retain, should be used for purposes of the climate transition. However, the broader scope of application and the more diverse array of interventions should not be to the detriment of the unity, effectiveness, integrity and democratic control of the Union budget.

Amendment 451

Proposal for a directive

Recital 29

Text proposed by the Commission

Amendment

(29)

Further incentives to reduce greenhouse gas emissions by using cost-efficient techniques should be provided. To that end, the free allocation of emission allowances to stationary installations from 2026 onwards should be conditional on investments in techniques to increase energy efficiency and reduce emissions . Ensuring that this is focused on larger energy users would result in a substantial reduction in burden for businesses with lower energy use, which may be owned by small and medium sized enterprises or micro-enterprises. [Reference to be confirmed with the revised EED]. The relevant delegated acts should be adjusted accordingly .

(29)

Further incentives to reduce greenhouse gas emissions by using cost-efficient techniques should be provided. To that end, a bonus-malus system should be introduced for determining the share of free allocation. For installations whose greenhouse gas emissions are above the relevant benchmark values, the amount of free allocation of emission allowances from 2026 onwards should vary in line with the implementation of a duly established decarbonisation plan. Conversely, installations whose greenhouse gas emissions are below the relevant benchmark values should receive an incentive in the form of an additional free allocation .

Amendment 676

Proposal for a directive

Recital 30

Text proposed by the Commission

Amendment

(30)

The Carbon Border Adjustment Mechanism (CBAM), established under Regulation (EU) […./..] of the European Parliament and of the Council (51), is an alternative to free allocation to address the risk of carbon leakage. To the extent that sectors and subsectors are covered by that measure, they should not receive free allocation. However, a transitional phasing-out of free allowances is needed to allow producers, importers and traders to adjust to the new regime. The reduction of free allocation should be implemented by applying a factor to free allocation for CBAM sectors, while the CBAM is phased in. This percentage (CBAM factor) should be equal to 100 % during the transitional period between the entry into force of [CBAM Regulation] and 2025, 90 % in 2026 and should be reduced by 10 percentage points each year to reach 0 % and thereby eliminate free allocation by the tenth year . The relevant delegated acts on free allocation should be adjusted accordingly for the sectors and subsectors covered by the CBAM. The free allocation no longer provided to the CBAM sectors based on this calculation (CBAM demand) must be auctioned and the revenues will accrue to the Innovation Fund, so as to support innovation in low carbon technologies, carbon capture and utilisation (‘CCU’), carbon capture and geological storage (‘CCS’), renewable energy and energy storage, in a way that contributes to mitigating climate change. Special attention should be given to projects in CBAM sectors. To respect the proportion of the free allocation available for the non-CBAM sectors, the final amount to deduct from the free allocation and to be auctioned should be calculated based on the proportion that the CBAM demand represents in respect of the free allocation needs of all sectors receiving free allocation.

(30)

The Carbon Border Adjustment Mechanism (CBAM),established under Regulation (EU) […./..] of the European Parliament and of the Council (51), intends to gradually offer an alternative to free allocation to address the risk of carbon leakage without undermining the Union’s competitiveness . To the extent that sectors and subsectors are covered by that measure, they should not receive free allocation. However, a transitional phasing-out of free allowances is needed to allow producers, importers and traders to adjust to the new regime. The reduction of free allocation should be implemented by applying a factor to free allocation for CBAM sectors, while the CBAM is phased in. This percentage (CBAM factor) should be equal to 100 % during the transitional period between the entry into force of [CBAM Regulation] and the end of 2026, and, contingent upon the application of Article 36(3), point (d), of Regulation (EU) …/… [CBAM Regulation], should be reduced by 7 percentage points in 2027, 9 percentage points in 2028, 15 percentage points in 2029, 19 percentage points in 2030, 25 percentage points in 2031 and 25 percentage points in 2032, thereby eliminating free allocation by 2032. In order to protect the competitiveness of Union exports, the production in the Union of products listed in Annex I to Regulation [CBAM] should continue to receive free allocation, provided such products are produced for export to third countries without carbon pricing mechanisms similar to the EU ETS. By [one year before the end of the transitional period as set out in Regulation [CBAM]], the Commission should present a report with an assessment of the effects of the EU ETS and CBAM on the production in the Union of products listed in Annex I to Regulation [CBAM] that are produced for export to third countries and on the development of global emissions, as well as an assessment of the WTO compatibility of the derogation for exports, assessing in particular potential export adjustment mechanisms for installations belonging to the 10 % most efficient installations in the light of WTO compatibility or any other proposals the Commission deems appropriate, and should, where appropriate, submit a proposal for any appropriate and WTO-compliant legislation and measures that equalize the costs of CO2 with the different pricing schemes of those third countries . The relevant delegated acts on free allocation should be adjusted accordingly for the sectors and subsectors covered by the CBAM. The free allocation no longer provided to the CBAM sectors based on this calculation (CBAM demand) must be auctioned and the revenues will accrue to the Climate Investment Fund, so as to support innovation in low carbon technologies, carbon capture and utilisation (‘CCU’), carbon capture and geological storage (‘CCS’), renewable energy and energy storage, in a way that contributes to mitigating climate change. Special attention should be given to projects in CBAM sectors. To respect the proportion of the free allocation available for the non-CBAM sectors, the final amount to deduct from the free allocation and to be auctioned should be calculated based on the proportion that the CBAM demand represents in respect of the free allocation needs of all sectors receiving free allocation.

Amendment 454

Proposal for a directive

Recital 30 a (new)

Text proposed by the Commission

Amendment

(30a)

The Carbon Border Adjustment Mechanism (CBAM) is a mechanism that addresses the risk of carbon leakage through the application of a uniform price on emissions embedded in goods imported into the customs territory of the Union. It is important to monitor, prevent and address the risk of goods produced in the Union intended for export to third countries being replaced on the global market by more carbon-intensive goods. Hence, the Commission should continuously monitor and assess the effectiveness of the CBAM in light of the carbon leakage risk on export markets, including the development of Union exports in CBAM sectors and the developments as regards trade flows and the embedded emissions of those goods on the global market. Where a risk of carbon leakage is detected, the Commission should, where appropriate, present a legislative proposal to address that carbon leakage risk on export markets in a manner that is compliant with WTO rules. In addition, the Union should actively pursue the establishment of an international ‘carbon club’ and continuously engage in international cooperation with regard to the introduction of carbon pricing mechanisms. The success of the European carbon market is critical from a global perspective and will encourage more countries to introduce market driven carbon pricing. The Commission should further analyse how linkages with other carbon markets could be established while ensuring that the Union’s own economy-wide climate target is achieved.

Amendment 455

Proposal for a directive

Recital 31

Text proposed by the Commission

Amendment

(31)

In order to better reflect technological progress and adjust the corresponding benchmark values to the relevant period of allocation while ensuring emission reduction incentives and properly rewarding innovation, the maximum adjustment of the benchmark values should be increased from 1,6 % to 2,5 % per year. For the period from 2026 to 2030, the benchmark values should thus be adjusted within a range of 8 % to 50 % compared to the value applicable in the period from 2013 to 2020. The adjusted benchmark values should be published as soon as the necessary information becomes available, and no later than … [six months after the date of entry into force of this amending Directive] in order for those benchmark values to apply from 2026.

Amendment 456

Proposal for a directive

Recital 31 a (new)

Text proposed by the Commission

Amendment

(31a)

The significant indirect costs that are incurred from greenhouse gas emission costs passed on in electricity prices cause a risk of carbon leakage to certain sectors. To mitigate that risk, Member States should adopt financial measures for indirect cost compensation. The measures should be in accordance with State aid rules, and should not cause undue distortions of competition in the internal market.

Amendment 457

Proposal for a directive

Recital 32

Text proposed by the Commission

Amendment

(32)

A comprehensive approach to innovation is essential for achieving the European Green Deal objectives. At EU level, the necessary research and innovation efforts are supported, among others, through Horizon Europe which include significant funding and new instruments for the sectors coming under the ETS. Consequently, the Climate Investment Fund should seek synergies with Horizon Europe and, where relevant, with other Union funding programmes . Member States should ensure that the national transposition provisions do not hamper innovations, facilitate the putting of innovative scientific results into practice and are technologically neutral , while the Commission should ensure the availability and efficiency of the necessary technical and advisory assistance .

Amendment 458

Proposal for a directive

Recital 32 a (new)

Text proposed by the Commission

Amendment

(32a)

In order to achieve climate neutrality by 2050 at the latest, as laid down in Regulation (EU) 2021/1119, the Union needs to close a significant investment gap as provided for in the communication of the Commission of 6 July 2021 entitled ‘Strategy for Financing the Transition to a Sustainable Economy’. To reach our decarbonisation objective, breakthrough innovation, upscaling of already existing relevant technologies and certified natural carbon removals are needed. To support the in-depth and economy-wide decarbonisation in the Union each of these three pillars should be addressed by the Innovation Fund, which should be renamed as the Climate Investment Fund.

Amendment 459

Proposal for a directive

Recital 33

Text proposed by the Commission

Amendment

(33)

The scope of the Innovation Fund referred to in Article 10a(8) of Directive 2003/87/EC should be extended to support innovation in low-carbon technologies and processes that concern the consumption of fuels in the sectors of buildings and road transport . In addition, the Innovation Fund should serve to support investments to decarbonise the maritime transport sector, including investments in sustainable alternative fuels, such as hydrogen and ammonia that are produced from renewables, as well as zero-emission propulsion technologies like wind technologies. Considering that revenues generated from penalties raised in Regulation xxxx/xxxx [FuelEU Maritime] (19) are allocated to the Innovation Fund as external assigned revenue in accordance with Article 21(5) of the Financial Regulation, the Commission should ensure that due consideration is given to support for innovative projects aimed at accelerating the development and deployment of renewable and low carbon fuels in the maritime sector , as specified in Article 21(1) of Regulation xxxx/xxxx [FuelEU Maritime] . To ensure sufficient funding is available for innovation within this extended scope, the Innovation Fund should be supplemented with 50 million allowances, stemming partly from the allowances that could otherwise be auctioned, and partly from the allowances that could otherwise be allocated for free, in accordance with the current proportion of funding provided from each source to the Innovation Fund.

(33)

The scope of the Climate Investment Fund referred to in Article 10a(8) of Directive 2003/87/EC should be extended to support installation of non-breakthrough technologies in industrial processes that have a large greenhouse gas-saving potential but are not market-ready as well as innovation in low-carbon technologies and processes that concern the consumption of fuels in the sectors of buildings and road transport , including collective forms of transport. It should also be possible to use the Climate Investment Fund to support break-through innovative technologies in the waste sector. To ensure sufficient funding is available for innovation within this extended scope, the Climate Investment Fund should be supplemented with 50 million allowances, stemming partly from the allowances that could otherwise be auctioned, and partly from the allowances that could otherwise be allocated for free, in accordance with the current proportion of funding provided from each source to the Climate Investment Fund . To foster innovation in breakthrough technologies as soon as possible, the Commission should ensure that a share of the financing made available through the Climate Investment Fund is ‘frontloaded’ during the first years of implementation of this Directive .

Amendment 460

Proposal for a directive

Recital 33 a (new)

Text proposed by the Commission

Amendment

(33a)

The acceleration of the roll out of domestic sustainable renewable energy sources plays a major role in the Union’s plan to become independent from Russian fossil fuels well before 2030. In addition, the availability of large quantities of sustainable renewable energy is necessary to ensure the reduction of greenhouse gas emissions in industrial processes and in the overall economy. A substantial increase of the Union renewable energy target for 2030 and of the relative national contributions is necessary. At least 12 % of the allowances made available to the Climate Investment Fund should therefore be used for the further development and deployment of sustainable renewable energy sources in the Union, in line with the energy efficiency-first principle. Priority should be given to develop local self-production, storage and sharing, in particular through renewable energy communities.

Amendment 461

Proposal for a directive

Recital 33 b (new)

Text proposed by the Commission

Amendment

(33b)

By supporting projects through public financing, the Climate Investment Fund would provide companies with substantial advantages to develop their products or services. Consequently, projects funded by the Climate Investment Fund should share knowledge with other relevant projects as well as with Union-based researchers having a legitimate interest.

Amendment 462

Proposal for a directive

Recital 35

Text proposed by the Commission

Amendment

(35)

Carbon Contracts for Difference ( CCDs) are an important element to trigger emission reductions in industry, offering the opportunity to guarantee investors in innovative climate-friendly technologies a price that rewards CO2 emission reductions above those induced by the current price levels in the EU ETS. The range of measures that the Innovation Fund can support should be extended to provide support to projects through price-competitive tendering, such as CCDs. The Commission should be empowered to adopt delegated acts on the precise rules for this type of support.

(35)

CCDs are an important element to trigger emission reductions in industry by up-scaling new technologies , offering the opportunity to guarantee investors in innovative climate-friendly technologies a price that rewards CO2 emission reductions above those induced by the current price levels in the EU ETS. The range of measures that the Climate Investment Fund can support should be extended to provide support to projects through technology-neutral, price-competitive tendering, such as CCDs , and should respect the principle of geographical balance . CCDs would be an important mechanism for supporting the development of decarbonisation technologies, such as CCS and CCU, and optimising the use of available resources. CCDs would also offer certainty to investors in technologies, such as carbon capture technologies. The Commission should conduct an impact assessment focusing in particular on the options for the provision of support through competitive bidding, including on the levels of funding provided. Based on the results of that assessment, the Commission should be empowered to adopt delegated acts on the precise rules for this type of support.

Amendment 463

Proposal for a directive

Recital 38

Text proposed by the Commission

Amendment

(38)

The scope of the Modernisation Fund should be aligned with the most recent climate objectives of the Union by requiring that investments are consistent with the objectives of the European Green Deal and Regulation (EU) 2021/1119, and eliminating the support to any investments related to fossil fuels. Support from the Modernisation Fund should only be granted to Member States that have adopted legally binding targets for achieving climate neutrality by 2050 at the latest, as well as measures for the phasing out of all fossil fuels in a timeframe consistent with the targets set out in Regulation (EU) 2021/1119. In order to guarantee the efficient use of Union funds, access to the Modernisation Fund should also be conditional on respect for the rule of law. In addition, the percentage of the Modernisation Fund that needs to be devoted to priority investments should be increased to 100 %; energy efficiency should be targeted as a priority area at the demand side; and support of households to address energy poverty, including in rural and remote areas, should be included within the scope of the priority investments.

Amendment 464

Proposal for a directive

Recital 38 a (new)

Text proposed by the Commission

Amendment

(38a)

With the increase of EU ETS prices, revenues from the EU ETS for Member States and the Union have increased substantially. To acknowledge the contribution of EU ETS revenues to the transition of Union industry as well as to provide support to vulnerable people in the Union to enable them to switch to environmentally friendly alternatives, an EU ETS label should be introduced. Member States and the Commission should ensure that funding is clearly indicated as coming from EU ETS revenues by displaying an appropriate label for all projects and activities supported at national level or through Union funds.

Amendment 465

Proposal for a directive

Recital 39

Text proposed by the Commission

Amendment

(39)

Commission Implementing Regulation (EU) 2018/2066 (21) lays down rules on the monitoring of emissions from biomass which are consistent with the rules on the use of biomass laid down in the Union legislation on renewable energy. As the legislation becomes more elaborate on the sustainability criteria for biomass with the latest rules established in Directive (EU) 2018/2001 of the European Parliament and of the Council (22) , the conferral of implementing powers in Article 14(1) of Directive 2003/87/EC should be explicitly extended to the adoption of the necessary adjustments for the application in the EU ETS of sustainability criteria for biomass, including biofuels, bioliquids and biomass fuels. In addition, the Commission should be empowered to adopt implementing acts to specify how to account for the storage of emissions from mixes of zero-rated biomass and biomass that is not from zero-rated sources.

(39)

Commission Implementing Regulation (EU) 2018/2066 (21) lays down rules on the monitoring of emissions from biomass which are consistent with the rules on the use of biomass laid down in the Union legislation on renewable energy. As the legislation becomes more elaborate on the sustainability criteria for biomass with the latest rules established in Directive (EU) 2018/2001 of the European Parliament and of the Council (22), the conferral of implementing powers in Article 14(1) of Directive 2003/87/EC should be explicitly extended to the adoption of the necessary adjustments for the application in the EU ETS of sustainability criteria for biomass, including biofuels, bioliquids and biomass fuels. In addition, the Commission should be empowered to adopt delegated acts to specify how to account for the storage of emissions from mixes of zero-rated biomass and biomass that is not from zero-rated sources.

Amendment 466

Proposal for a directive

Recital 40

Text proposed by the Commission

Amendment

(40)

Renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels can be important to reduce greenhouse gas emissions in sectors that are hard to decarbonise. Where recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin are produced from captured carbon dioxide under an activity covered by this Directive, the emissions should be accounted under that activity . To ensure that renewable fuels of non-biological origin and recycled carbon fuels contribute to greenhouse gas emission reductions and to avoid double counting for fuels that do so, it is appropriate to explicitly extend the empowerment in Article 14(1) to the adoption by the Commission of implementing acts laying down the necessary adjustments for how to account for the eventual release of carbon dioxide and how to avoid double counting to ensure appropriate incentives are in place, taking also into account the treatment of these fuels under Directive (EU) 2018/2001.

(40)

Renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels can be important to reduce greenhouse gas emissions in sectors that are hard to decarbonise. To ensure that renewable fuels of non-biological origin and recycled carbon fuels contribute to greenhouse gas emission reductions and to avoid double counting for fuels that do so, it is appropriate to explicitly extend the empowerment in Article 14(1) to the adoption by the Commission of delegated acts laying down the necessary adjustments for how to account for the eventual release of carbon dioxide , in a way that ensures that all emissions are accounted for, including where such fuels are produced from captured carbon dioxide outside the Union and are used in an activity covered by this Directive, while avoiding double counting and ensuring appropriate incentives are in place for capturing emissions , taking also into account the treatment of these fuels under Directive (EU) 2018/2001.

Amendment 467

Proposal for a directive

Recital 42

Text proposed by the Commission

Amendment

(42)

The exclusion of installations using exclusively biomass from the EU ETS has led to situations where installations combusting a high share of biomass have obtained windfall profits by receiving free allowances greatly exceeding actual emissions. Therefore, a threshold value for zero-rated biomass combustion should be introduced above which installations are excluded from the EU ETS. The threshold value of 95 % is in line with the uncertainty parameter set out in Article 2(16) of Commission Delegated Regulation (EU) 2019/331 (23) .

deleted

Amendment 468

Proposal for a directive

Recital 42 a (new)

Text proposed by the Commission

Amendment

(42a)

Increasing energy prices are a major concern for citizens, especially low-income families, and businesses, especially small and medium-sized enterprises (‘SMEs’). The main cause of rising energy prices is our dependency on fossil fuels. The ‘Fit for 55’ package should address and seek to reduce such dependencies, including by improving the design of the EU ETS. Strengthening market integrity and transparency can also play a role in limiting volatility of the EU ETS market prices.

Amendment 469

Proposal for a directive

Recital 42 b (new)

Text proposed by the Commission

Amendment

(42b)

The European Securities and Markets Authority (ESMA) published its final report on emission allowances and associated derivatives on 28 March 2022. The Commission should, where appropriate and as soon as possible, present a legislative proposal to follow up on the recommendations in that report in order to improve the level of transparency, monitoring and reporting on the European emission allowance markets as well as related derivative markets. However, to continuously monitor market integrity and transparency, avoid misinformation and guide any potential rapid action, ESMA should on a regular basis publish a report on the integrity and transparency of those markets and, where relevant, issue further recommendations for targeted improvements. ESMA should in particular examine the functioning of the markets in light of any volatility and price evolution, the operation of the auctions and trading operations on the markets, liquidity and the volumes traded, and the categories and trading behaviour of market participants. Targeted improvements could, for example, include measures to enhance the information available to market participants and the public at large on the functioning of the emission allowance markets and related derivative markets, improve regulatory reporting and market monitoring in emission allowance markets and related derivative markets, including by making individual transactions publicly available, require each market participant to publicly disclose their holdings and positions broken down by motive and horizon, promote the prevention and detection of market abuse and help in maintaining orderly markets for emission allowances and related derivative markets, for example through a fluctuating penalty based on the previous year’s average auction price, the withholding of allowances, adjustment of the quantity of subsequent auctions, or a combination thereof. The Commission should assess ESMA’s recommendations within six months following the publication of ESMA’s report and should, where appropriate, present a legislative proposal to address those recommendations.

Amendment 470

Proposal for a directive

Recital 42 c (new)

Text proposed by the Commission

Amendment

(42c)

Unexpected or sudden market volatility or excessive price shocks on the Union carbon market, for example, as a result of sudden changes in market behaviour or excessive speculation, negatively affect market predictability and the stable investment climate which is essential for the planning of decarbonisation and innovation investments. Therefore, the measures that apply in the event of excessive price fluctuations should be strengthened in a careful manner to improve the assessment of and reaction to unwarranted price evolutions. Such targeted improvements should ensure the continued proper functioning of the carbon market, including the role of intermediaries and financial actors in providing liquidity to the market and market access for compliance actors, in particular SMEs, while addressing unexpected or sudden volatility or price shocks not related to market fundamentals.

Amendment 471

Proposal for a directive

Recital 43 a (new)

Text proposed by the Commission

Amendment

(43a)

In order to ensure that a level playing field exists and to close any remaining gaps between the existing EU ETS and the new emissions trading system, the new emissions trading system should also cover other fuels released for consumption, such as those used for process heating in activities not covered under Annex I to Directive 2003/87/EC, while avoiding or addressing any double counting. Moreover, such an approach would simplify the implementation, monitoring, reporting and verification of the new emissions trading system for regulated entities.

Amendment 472

Proposal for a directive

Recital 44

Text proposed by the Commission

Amendment

(44)

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

(44)

In order to establish the necessary implementation framework and to provide a reasonable timeframe for reaching the 2030 target, emissions trading in the new sectors should start in 2025. During the first year, the regulated entities should be required to hold a greenhouse gas emissions permit and to report their emissions for the years 2023 and 2024 . The issuance of allowances and compliance obligations for these entities should be applicable as from 2025 in respect of fuels released for consumption in commercial applications and other fuels, such as for process heating not covered by the existing EU ETS. Subject to an assessment by 1 January 2026 and if the conditions are right, the Commission should aim to extend this to fuels released for consumption in private road transport and private heating and cooling of residential buildings from 1 January 2029 and should, where appropriate, present a targeted review to this effect. This sequencing will allow starting emissions trading in the sectors in an orderly and efficient manner. It would also allow the EU funding and Member State measures to be in place to ensure a socially fair introduction of the EU emissions trading into the two sectors so as to mitigate the impact of the carbon price on vulnerable households and transport users.

Amendment 473

Proposal for a directive

Recital 46

Text proposed by the Commission

Amendment

(46)

The regulated entities in the two new sectors and the point of regulation should be defined in line with the system of excise duty established by Council Directive (EU) 2020/262 (25), with the necessary adaptations, as that Directive already sets a robust control system for all quantities of fuels released for consumption for the purposes of paying excise duties. End-users of fuels in those sectors should not be subject to obligations under Directive 2003/87/EC.

(46)

The regulated entities in the new sectors and the point of regulation should be defined in line with the system of excise duty established by Council Directive (EU) 2020/262 (25), with the necessary adaptations, as that Directive already sets a robust control system for all quantities of fuels released for consumption for the purposes of paying excise duties. End-users of fuels in those sectors should not be subject to obligations under Directive 2003/87/EC.

Amendment 474

Proposal for a directive

Recital 47

Text proposed by the Commission

Amendment

(47)

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

(47)

The regulated entities falling within the scope of the emissions trading in the new sectors should be subject to similar greenhouse gas emissions permit requirements as the operators of stationary installations. It is necessary to establish rules on permit applications, conditions for permit issuance, content, and review, and any changes related to the regulated entity. In order for the new system to start in an orderly manner, Member States should ensure that regulated entities falling within the scope of the new emissions trading have a valid permit as of the start of the system in 2024 .

Amendment 475

Proposal for a directive

Recital 48

Text proposed by the Commission

Amendment

(48)

The total quantity of allowances for the new emissions trading should follow a linear trajectory to reach the 2030 emissions reduction target, taking into account the cost-efficient contribution of buildings and road transport of 43 % emission reductions by 2030 compared to 2005. The total quantity of allowances should be established for the first time in 2026 , to follow a trajectory starting in 2024 from the value of the 2024 emissions limits (1 109 304 000 CO2t), calculated in accordance with Article 4(2) of Regulation (EU) 2018/842 of the European Parliament and of the Council (26) on the basis of the reference emissions for these sectors for the period from 2016 to 2018. Accordingly, the linear reduction factor should be set at 5,15 %. From 2028, the total quantity of allowances should be set on the basis of the average reported emissions for the years 2024, 2025 and 2026, and should decrease by the same absolute annual reduction as set from 2024, which corresponds to a 5,43 % linear reduction factor compared to the comparable 2025 value of the above defined trajectory. If those emissions are significantly higher than this trajectory value and if this divergence is not due to small-scale differences in emission measurement methodologies, the linear reduction factor should be adjusted to reach the required emissions reduction in 2030.

(48)

The total quantity of allowances for the new emissions trading should follow a linear trajectory to reach the 2030 emissions reduction target, taking into account the cost-efficient contribution of buildings and road transport of 43 % emission reductions by 2030 compared to 2005. The total quantity of allowances should be established for the first time in 2025 , to follow a trajectory starting in 2024 from the value of the 2024 emissions limits (1 109 304 000 CO2t), calculated in accordance with Article 4(2) of Regulation (EU) 2018/842 of the European Parliament and of the Council (26) on the basis of the reference emissions for these sectors for the period from 2016 to 2018. Accordingly, the linear reduction factor should be set at 5,15 %. From 2028, the total quantity of allowances should be set on the basis of the average reported emissions for the years 2024, 2025 and 2026, and should decrease by the same absolute annual reduction as set from 2024, which corresponds to a 5,43 % linear reduction factor compared to the comparable 2025 value of the above defined trajectory. If those emissions are significantly higher than this trajectory value and if this divergence is not due to small-scale differences in emission measurement methodologies, the linear reduction factor should be adjusted to reach the required emissions reduction in 2030.

Amendment 476

Proposal for a directive

Recital 50

Text proposed by the Commission

Amendment

(50)

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

(50)

In order to ensure a smooth start to emissions trading in the new sectors and taking into account the need of the regulated entities to hedge or buy ahead allowances to mitigate their price and liquidity risk, a higher amount of allowances should be auctioned early on. In 2025 , the auction volumes should therefore be 30 % higher than the total quantity of allowances for 2025 . This amount would be sufficient to provide liquidity, both if emissions decrease in line with reduction needs, and in the event emission reductions only materialise progressively. The detailed rules for this front-loading of auction volume are to be established in a delegated act related to auctioning, adopted pursuant to Article 10(4) of Directive 2003/87/EC.

Amendment 477

Proposal for a directive

Recital 52

Text proposed by the Commission

Amendment

(52)

The introduction of the carbon price in road transport and buildings should be accompanied by effective social compensation, especially in view of the already existing levels of energy poverty. About 34 million Europeans reported an inability to keep their homes adequately warm in 2018, and 6,9 % of the Union population have said that they cannot afford to heat their home sufficiently in a 2019 EU-wide survey (27). To achieve an effective social and distributional compensation, Member States should be required to spend the auction revenues on the climate and energy-related purposes already specified for the existing emissions trading, but also for measures added specifically to address related concerns for the new sectors of road transport and buildings, including related policy measures under Directive 2012/27/EU of the European Parliament and of the Council (28). Auction revenues should be used to address social aspects of the emission trading for the new sectors with a specific emphasis in vulnerable households, micro-enterprises and transport users. In this spirit, a new Social Climate Fund will provide dedicated funding to Member States to support the European citizens most affected or at risk of energy or mobility poverty . The Social Climate Fund should be an integral part of the Union budget in order to preserve the unity of the budget and coherence with Union policies and to ensure effective control by the budgetary authority, composed of the European Parliament and the Council . This Fund will promote fairness and solidarity between and within Member States while mitigating the risk of energy and mobility poverty during the transition. It will build on and complement existing solidarity mechanisms. The resources of the new Fund will in principle correspond to 25 % of the expected revenues from new emission trading in the period 2026-2032, and will be implemented on the basis of the Social Climate Plans that Member States should put forward under Regulation (EU) 20…/nn of the European Parliament and the Council (29) . The programmed baseline allocation in the Union budget should be increased annually by a supplementary reinforcement in the event of an increase of carbon price to a level higher than the initial assumption, as it would raise the burden on vulnerable households and traffic users. To ensure that the impact of carbon price increases on the most vulnerable is adequately and fairly mitigated, such annual reinforcements should be accommodated within the Multiannual Financial Framework by means of an automatic ‘carbon price fluctuation adjustment’ of the ceiling of Heading 3 and the payment ceiling, the mechanism for which is to be provided for in the Multiannual Financial Framework Regulation in accordance with Article 312 TFEU . In addition, each Member State should use their auction revenues inter alia to finance a part of the costs of their Social Climate Plans.

Amendment 478

Proposal for a directive

Recital 52 a (new)

Text proposed by the Commission

Amendment

(52a)

Since the transport sector is currently the only sector that has failed to deliver any reductions of greenhouse gas emissions, a significant level of investment in sustainable transport options is required to achieve the Union climate goals and support a modal shift to environmentally friendly forms of transport. Therefore, at least 10 % of the expected revenues from the increased trading of emissions to arise as a result of the extension of the scope of the EU ETS and the introduction of a new EU ETS for heating, transport and other fuels pursuant to this Directive, including 10 % of the national revenues to be allocated by Member States as well as 10 % of the revenues under the Climate Investment Fund, should be allocated to the further development of public transport, in particular climate friendly railway and bus systems.

Amendment 479

Proposal for a directive

Recital 52 b (new)

Text proposed by the Commission

Amendment

(52b)

In order to achieve greater coherence and efficiency in the management and use of Union funds and resources, the Commission should carry out an assessment and, where appropriate, present a legislative proposal for the integration of the Climate Investment Fund and the Modernisation Fund in the Union budget, that could be submitted in the context of the proposals for the next Multiannual Financial Framework.

Amendment 480

Proposal for a directive

Recital 54

Text proposed by the Commission

Amendment

(54)

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

(54)	150 million allowances from emissions trading in the buildings and road transport sectors should also be made available to the Social Climate Fund to support social climate measures .

Amendment 481

Proposal for a directive

Recital 55

Text proposed by the Commission

Amendment

(55)

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

(55)

Regulated entities covered by the new emissions trading should surrender allowances for their verified emissions corresponding to the quantities of fuels they have released for consumption. They should surrender allowances for the first time for their verified emissions in 2025 . In order to minimise the administrative burden, a number of rules applicable to the existing emissions trading system for stationary installations and aviation should be made applicable to the new emissions trading, with the necessary adaptations. This includes, in particular, rules on transfer, surrender and cancellation of allowances, as well as the rules on the validity of allowances, penalties, competent authorities and reporting obligations of Member States.

Amendment 482

Proposal for a directive

Recital 59 a (new)

Text proposed by the Commission

Amendment

(59a)

In order to achieve the objectives laid down in this Directive and other Union legislation, particularly those in Regulation (EU) 2021/1119, the Union and its Member States should make use of the latest scientific evidence while implementing policies. Therefore, the advice of the European Scientific Advisory Board on Climate Change should be considered when implementing this Directive. Furthermore, the European Scientific Advisory Board on Climate Change should be able, on its own initiative, to provide scientific advice in relation to this Directive to ensure that policies are aligned with the objectives of Regulation (EU) 2021/1119 and the Paris Agreement.

Amendment 483

Proposal for a directive

Recital 59 b (new)

Text proposed by the Commission

Amendment

(59b)

In order to set a long-term vision, the Commission, supported by the European Scientific Advisory Board on Climate Change, should prepare indicative roadmaps for the activities covered by Annex I to this Directive for the achievement of the Union’s climate-neutrality objective by 2050, at the latest, and the aim to achieve negative emissions thereafter, as laid down in Article 2(1) of Regulation (EU) 2021/1119. The roadmaps should be prepared in a transparent manner with close engagement of the stakeholders such as individuals, civil society, social partners, academia, industry and policy makers. The roadmaps are an essential tool for providing long-term insight and stability for stakeholders and for identifying common interests, possible inconsistencies and conflicts in policy development. The roadmaps should be updated every five years in order to take into account the latest scientific developments, in close engagement with the stakeholders.

Amendment 484

Proposal for a directive

Recital 61

Text proposed by the Commission

Amendment

(61)

A well-functioning, reformed EU ETS comprising an instrument to stabilise the market is a key means for the Union to reach its agreed target for 2030 and the commitments under the Paris Agreement. The Market Stability Reserve seeks to address the imbalance between supply and demand of allowances in the market. Article 3 of Decision (EU) 2015/1814 provides that the reserve is to be reviewed three years after it becomes operational, paying particular attention to the percentage figure for the determination of the number of allowances to be placed in the Market Stability Reserve, the threshold for the total number of allowances in circulation (TNAC) that determines the intake of allowances, and the number of allowances to be released from the reserve.

(61)

A well-functioning, reformed EU ETS comprising an instrument to stabilise the market is a key means for the Union to reach its agreed target for 2030 , its climate-neutrality objective by 2050 at the latest, and fulfil the aim of achieving negative emissions thereafter as laid down in Article 2(1) of Regulation (EU) 2021/1119 and the commitments under the Paris Agreement. The Market Stability Reserve seeks to address the imbalance between supply and demand of allowances in the market. Article 3 of Decision (EU) 2015/1814 provides that the reserve is to be reviewed three years after it becomes operational, paying particular attention to the percentage figure for the determination of the number of allowances to be placed in the Market Stability Reserve, the threshold for the total number of allowances in circulation (TNAC) that determines the intake of allowances, and the number of allowances to be released from the reserve.

Amendment 485

Proposal for a directive

Recital 62

Text proposed by the Commission

Amendment

(62)

Considering the need to deliver a stronger investment signal to reduce emissions in a cost-efficient manner and with a view to strengthening the EU ETS, Decision (EU) 2015/1814 should be amended so as to increase the percentage rate for determining the number of allowances to be placed each year in the Market Stability Reserve. In addition, for lower levels of the TNAC, the intake should be equal to the difference between the TNAC and the threshold that determines the intake of allowances. This would prevent the considerable uncertainty in the auction volumes that results when the TNAC is close to the threshold, and at the same time ensure that the surplus reaches the volume bandwidth within which the carbon market is deemed to operate in a balanced manner.

(62)

Amendment 486

Proposal for a directive

Recital 66 a (new)

Text proposed by the Commission

Amendment

(66a)

To ensure that there is predictability for operators and avoid disincentivising best performers and innovation as a result of additional and unforeseen costs, it is crucial to avoid the application of the cross-sectoral correction factor for frontrunners.

Amendment 487

Proposal for a directive

Recital 67

Text proposed by the Commission

Amendment

(67)

It is necessary to amend Regulation (EU) 2015/757 to take into account the inclusion of the maritime transport sector in the EU ETS. Regulation (EU) 2015/757 should be amended to oblige companies to report aggregated emissions data at company level and to submit for approval their verified monitoring plans and aggregated emissions data at company level to the responsible administering authority. In addition, the Commission should be empowered to adopt delegated acts to amend the methods for monitoring CO2 emissions and the rules on monitoring, as well as any other relevant information set out in Regulation (EU) 2015/757, to ensure the effective functioning of the EU ETS at administrative level and to supplement Regulation (EU) 2015/757 with the rules for the approval of monitoring plans and changes thereof by administering authorities, with the rules for the monitoring, reporting and submission of the aggregated emissions data at company level and with the rules for the verification of the aggregated emissions data at company level and for the issuance of a verification report in respect of the aggregated emissions data at company level. The data monitored, reported and verified under Regulation (EU) 2015/757 might also be used for the purpose of compliance with other Union law requiring the monitoring, reporting and verification of the same ship information.

(67)

It is necessary to amend Regulation (EU) 2015/757 to take into account the inclusion of the maritime transport sector in the EU ETS. Regulation (EU) 2015/757 should be amended to oblige companies to report aggregated emissions data at company level and to submit for approval their verified monitoring plans and aggregated emissions data at company level to the responsible administering authority. In addition, the Commission should be empowered to adopt delegated acts to amend the methods for monitoring CO2 , CH4 and N2O emissions and the rules on monitoring, as well as any other relevant information set out in Regulation (EU) 2015/757, to ensure the effective functioning of the EU ETS at administrative level and to supplement Regulation (EU) 2015/757 with the rules for the approval of monitoring plans and changes thereof by administering authorities, with the rules for the monitoring, reporting and submission of the aggregated emissions data at company level and with the rules for the verification of the aggregated emissions data at company level and for the issuance of a verification report in respect of the aggregated emissions data at company level. The data monitored, reported and verified under Regulation (EU) 2015/757 might also be used for the purpose of compliance with other Union law requiring the monitoring, reporting and verification of the same ship information.

Amendment 488

Proposal for a directive

Recital 67 a (new)

Text proposed by the Commission

Amendment

(67a)

In addition to effective carbon pricing based on a well-functioning EU ETS, market transparency is of key importance for enabling swift and cost-efficient emission reductions in all sectors of the economy. To allow consumers and all actors along the supply chain to make informed choices concerning the emissions embedded in products, a European system for robust carbon footprint labelling of products should be developed.

Amendment 489

Proposal for a directive

Article 1 — paragraph 1 — point - 1 (new)

Directive 2003/87/EC

Article 1 — paragraph 2

Present text

Amendment

(-1)	in Article 1, the second paragraph is replaced by the following:

This Directive also provides for the reductions of greenhouse gas emissions to be increased so as to contribute to the levels of reductions that are considered scientifically necessary to avoid dangerous climate change.

‘This Directive also provides for the reductions of greenhouse gas emissions to be increased so as to contribute to the levels of reductions that are considered scientifically necessary to avoid dangerous climate change , to reach the Union’s climate-neutrality objective by 2050 at the latest and the aim to achieve negative emissions thereafter as laid down in Article 2(1) of Regulation (EU) 2021/1119 of the European Parliament and of the Council (*1) , and to achieve the commitments of the Union and its Member States under the Paris Agreement, while reflecting the principles of equity and of common but differentiated responsibilities and respective capabilities of nations .

Amendment 490

Proposal for a directive

Article 1 — paragraph 1 — point 1

Directive 2003/87/EC

Article 2 — paragraph 1

Text proposed by the Commission	Amendment
1. This Directive shall apply to the activities listed in Annexes I and III, and to the of greenhouse gases listed in Annex II. Where an installation that is included in the scope of the EU ETS due to the operation of combustion units with a total rated thermal input exceeding 20 MW changes its production processes to reduce its greenhouse gas emissions and no longer meets that threshold , it shall remain in the scope of the EU ETS until the end of the relevant five year period referred to in Article 11(1), second subparagraph, following the change to its production process.	1. This Directive shall apply to the activities listed in Annexes I and III, and to the greenhouse gases listed in Annex II. Where an installation that is included in the scope of the EU ETS due to the operation of combustion units with a total rated thermal input exceeding 20 MW changes its production processes to reduce its greenhouse gas emissions and no longer meets that threshold or no longer emits greenhouse gases, the operator of that installation may decide that the installation is to remain in the scope of the EU ETS until the end of the next five year period referred to in Article 11(1), second subparagraph, following the change to its production process.
	By 31 December 2025, the Commission shall assess, and submit a report to the European Parliament and to the Council on, the inclusion of installations with a total rated thermal input below 20 MW in the scope of the EU ETS in the next period. That report shall be accompanied, where appropriate, by a legislative proposal to include such installations.

Amendment 491

Proposal for a directive

Article 1 — paragraph 1 — point 2 — point d

Directive 2003/87/EC

Article 3 — paragraph 1 — point v a (new)

Text proposed by the Commission

Amendment

(va)	‘voyage’ means a voyage as defined in Article 3, point (c), of Regulation (EU) 2015/757 of the European Parliament and of the Council (*2) ;

Amendment 492

Proposal for a directive

Article 1 — paragraph 1 — point 2 — point d

Directive 2003/87/EC

Article 3 — paragraph 1 — point w a (new)

Text proposed by the Commission

Amendment

(wa)

‘non-EU transhipment port’ means a transhipment port in a non-EU neighbouring country at a distance of less than 300 nautical miles from a port under the jurisdiction of a Member State, where the movement of one type of cargo by way of transhipment operations exceeds 60 % of the total traffic of that port;

Amendment 493

Proposal for a directive

Article 1 — paragraph 1 — point 2 — point d

Directive 2003/87/EC

Article 3 — paragraph 1 — point w b (new)

Text proposed by the Commission

Amendment

(wb)	‘transhipment operation’ means an operation in which any cargo, container or good is unloaded from a ship to the port for the sole purpose of loading it onto another ship;

Amendment 494

Proposal for a directive

Article 1 — paragraph 1 — point 2 — point d

Directive 2003/87/EC

Article 3 — paragraph 1 — point w c (new)

Text proposed by the Commission

Amendment

(wc)

‘port of call’ means the port where a ship stops to load or unload cargo or to embark or disembark passengers; consequently, stops for the sole purposes of refuelling, obtaining supplies, relieving the crew, going into dry-dock or making repairs to the ship or its equipment, stops in port because the ship is in need of assistance or in distress, ship-to-ship transfers carried out outside ports, stops in a non-EU transhipment port and stops for the sole purpose of taking shelter from adverse weather or rendered necessary by search and rescue activities are excluded from this definition;

Amendment 495

Proposal for a directive

Article 1 — paragraph 1 — point 2 — point d

Directive 2003/87/EC

Article 3 — paragraph 1 — point y

Text proposed by the Commission

Amendment

(y)	‘fuel’ for the purposes of Chapter IVa shall mean any fuel listed in Table-A and Table-C of Annex I to Directive 2003/96/EC, as well as any other product offered for sale as motor fuel or heating fuel as specified in Article 2(3) of that Directive;

(y)	‘fuel’ for the purposes of Chapter IVa shall mean any fuel listed in Table-A and Table-C of Annex I to Directive 2003/96/EC, as well as any other product intended for use, offered for sale or used as motor fuel or heating fuel as specified in Article 2(3) of that Directive;

Amendment 496

Proposal for a directive

Article 1 — paragraph 1 — point 2 a (new)

Directive 2003/87/EC

Article - 3a (new)

Text proposed by the Commission

Amendment

(2a)	the following article is inserted:

‘Article - 3a

The Commission shall, together with the Executive Committee of the Warsaw International Mechanism for Loss and Damage and other international organisations, assess potential compensation measures that the Union as a whole could implement for vulnerable and developing countries and report on that assessment to the European Parliament and the Council by the end of 2022.’

;

Amendment 497

Proposal for a directive

Article 1 — paragraph 1 — point 4

Directive 2003/87/EC

Article 3a — paragraph 1

Text proposed by the Commission

Amendment

Articles 3b to 3f shall apply to the allocation and issue of allowances in respect of the aviation activities listed in Annex I. Articles 3g to 3ge shall apply in respect of the maritime transport activities listed in Annex I.

Articles 3b to 3f shall apply to the allocation and issue of allowances in respect of the aviation activities listed in Annex I. Articles 3g to 3geb shall apply to the allocation and issue of allowances in respect of the maritime transport activities listed in Annex I carried out by ships of 5 000 gross tonnage and above .

From 1 January 2027, Articles 3g to 3geb shall apply to the allocation and issue of allowances in respect of the maritime transport activities listed in Annex I carried out by ships of 400 gross tonnage and above. By that date, the Commission shall carry out an assessment of the level playing field for all ships and the avoidance of possible unwanted adverse effects on greenhouse gas emissions resulting from the possible replacement of ships of 5 000 gross tonnage and above by several ships of a gross tonnage below that threshold in the absence of lowering the threshold. The Commission shall, where appropriate, accompany that assessment with a legislative proposal to amend this Directive.

By 31 December 2024, the Commission, supported by the European Scientific Advisory Board on Climate Change referred to in Article 3 of Regulation (EU) 2021/1119, shall assess, and report to the European Parliament and to the Council on, the impact on the global climate of greenhouse gas emissions other than CO2, CH4 and N2O and of particles with a global warming potential, from ships arriving at, within or departing from ports under the jurisdiction of a Member State. That report shall be accompanied, where appropriate, by a legislative proposal to address the question of how to deal with such emissions and particles.

Amendment 498

Proposal for a directive

Article 1 — paragraph 1 — point 5

Directive 2003/87/EC

Article 3g — paragraph 1

Text proposed by the Commission

Amendment

1. The allocation of allowances and the application of surrender requirements in respect of maritime transport activities shall apply in respect of fifty percent (50 %) of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, fifty percent (50 %) of the emissions from ships performing voyage departing from a port outside the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Member State, one hundred percent (100 %) of emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Member State and one hundred percent (100 %) of emissions from ships at berth in a port under the jurisdiction of a Member State.

1. The allocation of allowances and the application of surrender requirements in respect of maritime transport activities shall apply in respect of one hundred percent (100 %) of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Member State and one hundred percent (100 %) of the emissions from ships at berth in a port under the jurisdiction of a Member State.

Until 31 December 2026, the allocation of allowances and the application of surrender requirements in respect of maritime transport activities shall apply in respect of fifty percent (50 %) of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, and fifty percent (50 %) of the emissions from ships performing voyages departing from a port outside the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Member State.

From 1 January 2027 and subject to the derogations set out in Article 3gaa, the allocation of allowances and the application of surrender requirements in respect of maritime transport activities shall apply in respect of one hundred percent (100 %) of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, and one hundred percent (100 %) of the emissions from ships performing voyages departing from a port outside the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Member State.

Amendment 499

Proposal for a directive

Article 1 — paragraph 1 — point 6

Directive 2003/87/EC

Article 3ga

Text proposed by the Commission

Amendment

Article 3ga

Phase-in of requirements for maritime transport

Requirements for maritime transport

Shipping companies shall be liable to surrender allowances according to the following schedule:

From 1 January 2024 and each year thereafter, shipping companies shall be liable to surrender allowances corresponding to one hundred percent (100 %) of verified emissions reported for each respective year.

(a)	20 % of verified emissions reported for 2023;

(b)	45 % of verified emissions reported for 2024;

(c)	70 % of verified emissions reported for 2025;

(d)	100 % of verified emissions reported for 2026 and each year thereafter .

To the extent that fewer allowances are surrendered compared to the verified emissions from maritime transport for the years 2023, 2024 and 2025, once the difference between verified emissions and allowances surrendered has been established in respect of each year, a corresponding quantity of allowances shall be cancelled rather than auctioned pursuant to Article 10.

Amendment 500

Proposal for a directive

Article 1 — paragraph 1 — point 6

Directive 2003/87/EC

Article 3ga a (new)

Text proposed by the Commission

Amendment

Article 3gaa

Derogations conditional on the taking of measures by third countries and international organisations to address the climate impact of maritime transport

1. The Commission shall engage with third countries with the aim of establishing bilateral or multilateral agreements on actions and measures to reduce greenhouse gas emissions from maritime transport in line with the goal of keeping the global temperature rise within 1,5 oC above pre-industrial levels, in line with the Paris Agreement. The Commission shall keep the European Parliament and the Council informed of any developments in this regard.

2. The Commission is empowered to adopt delegated acts in accordance with Article 23 to supplement this Directive by introducing a proportionate reduction of the scope of application of the Union measures while maintaining in the scope of the EU ETS at least fifty percent (50 %) of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, and fifty percent (50 %) of the emissions from ships performing voyages departing from a port outside the jurisdiction of a Member State and arriving at a port under the jurisdiction of a Member State, where:

(a)	a third country has a carbon pricing mechanism in place to cap and reduce emissions that is at least equivalent to that of the EU ETS;

(b)	a carbon pricing mechanism to cap and reduce emissions that is at least equivalent to that of the EU ETS has been established through a bilateral or multilateral agreement between the Union and one or more third countries and it has been decided to link it to the EU ETS pursuant to Article 25; or

(c)	a third country is a Least Developed Country or Small Island Developing State that has a GDP per capita not equalling or exceeding the Union average and includes emissions under its nationally determined contributions under the Paris Agreement.

Amendment 501

Proposal for a directive

Article 1 — paragraph 1 — point 6

Directive 2003/87/EC

Article 3ga b (new)

Text proposed by the Commission

Amendment

Article 3gab

Ocean Fund

1. A fund (‘the Ocean Fund’) shall be established to support projects and investments referred to in paragraph 4. 75 % of the revenues generated from the auctioning of allowances referred to in Article 3g shall be used through the Ocean Fund. Furthermore, any external assigned revenues referred to in Article 21(2) of Regulation (EU) …/… [FuelEU Maritime] shall be allocated to the Ocean Fund and used in accordance with paragraph 4.

2. Shipping companies may pay an annual membership contribution to the Ocean Fund in accordance with their total emissions reported for the preceding calendar year under Regulation (EU) 2015/757 to limit the administrative burden for shipping companies, including small and medium-sized companies and companies that are not frequently active within the scope of this Directive. The Ocean Fund shall surrender allowances collectively on behalf of shipping transport companies that are members of the Ocean Fund. The membership contribution per tonne of emissions shall be set by the Ocean Fund by 28 February each year, but shall be at least equal to the highest recorded primary or secondary market settlement price for allowances in the preceding year.

3. The Ocean Fund shall be managed centrally through a Union body. The governance structure of the Ocean Fund shall be similar to and ensure synergy with the governance structure of the Climate Investment Fund established under Article 10a(8), applying, where relevant, the rules for governance and support as laid down in that Article. The Ocean Fund’s governance structure and decision-making process shall be transparent and inclusive, in particular in relation to the setting of priority areas, criteria and grant allocation procedures. Relevant stakeholders shall have an appropriate consultative role. All information on the projects and investments supported by the Ocean Fund and all other relevant information on the functioning of the Ocean Fund shall be made available to the public.

4. Funds provided under the Ocean Fund shall support the transition to an energy efficient and climate resilient Union maritime sector and be used to support projects and investments in relation to the following:

(a)	improvement of the energy efficiency of ships and ports;

(b)	innovative technologies and infrastructure for decarbonising the maritime transport sector, including as regards short sea shipping and ports, including connections to electricity grids in ports;

(c)	deployment of sustainable alternative fuels, such as hydrogen, e-fuels and ammonia, that are produced from renewable energy, including through carbon contracts for difference (CCDs);

(d)	zero-emission propulsion technologies, including wind technologies;

(e)	research and development and the first industrial application of technologies and designs reducing greenhouse gas emissions, including innovative technologies and fuels for ice-class ships and winter navigation in frozen areas;

(f)	priority shall be given to projects that promote innovation in the sector, such as technologies that not only lead to decarbonisation but, inter alia, also reduce the risk of noise, air and maritime pollution;

(g)	contributing to a just transition in the maritime sector through training, upskilling and reskilling of the existing workforce and preparation of the next generation maritime workforce.

15 % of the Ocean Fund shall be used to contribute to the protection, restoration and better management of marine ecosystems impacted by global warming, such as marine protected areas, and to promote a crosscutting sustainable blue economy, such as renewable marine energy.

All investment supported by the Ocean Fund shall be made public and shall be consistent with the aims of this Directive.

5. All funding provided under the Ocean Fund shall be carried out in accordance with:

(a)	the ‘do no significant harm’ criteria as set out in Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council (*) ;

(b)	minimum safeguards as set out in Article 18 of Regulation (EU) 2020/852.

6. The Commission shall engage with third countries with regard to exploring options as to how they could also make use of the Ocean Fund. A corresponding share of the Ocean Fund shall be made available for those countries outside the Union, in particular Least Developed Countries and Small Island Developing States, whose voyages from or to a port outside the jurisdiction of a Member State are covered one hundred percent (100 %) by measures aiming at adapting to climate change and decreasing their emissions in the maritime sector.

7. The Commission is empowered to adopt delegated acts in accordance with Article 23 to supplement this Directive concerning the implementation of this Article. When implementing the Ocean Fund, the Commission shall take all the appropriate measures in accordance with Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council (**) to ensure the protection of funds in relation to measures and investments supported by the Ocean Fund, in the event of failure to respect the rule of law in the Member States. To that end, the Commission shall provide an effective and efficient internal control system and shall seek recovery of amounts wrongly paid or incorrectly used.

Amendment 502

Proposal for a directive

Article 1 — paragraph 1 — point 6

Directive 2003/87/EC

Article 3gd a (new)

Text proposed by the Commission

Amendment

Article 3gda

Contractual arrangements

Where the ultimate responsibility for the purchase of the fuel or the operation of the ship is assumed, pursuant to a contractual arrangement, by an entity other than the shipping company, that entity shall be responsible under the contractual arrangement for covering the costs arising from compliance with the obligations under this Directive.

For the purposes of this Article, ‘operation of the ship’ means determining the cargo carried by, or the route and speed of, the ship.

Member States shall take the necessary measures to ensure that the shipping company has appropriate and effective means of recovering the costs referred to in the first paragraph of this Article in accordance with Article 16.

Amendment 503

Proposal for a directive

Article 1 — paragraph 1 — point 6

Directive 2003/87/EC

Article 3ge — paragraph 1

Text proposed by the Commission	Amendment
1. The Commission shall consider possible amendments in relation to the adoption by the International Maritime Organization of a global market-based measure to reduce greenhouse gas emissions from maritime transport. In the event of the adoption of such a measure, and in any event before the 2028 global stocktake and no later than 30 September 2028, the Commission shall present a report to the European Parliament and to the Council in which it shall examine any such measure. Where appropriate, the Commission may follow to the report with a legislative proposal to the European Parliament and to the Council to amend this Directive as appropriate.	1. The Commission shall consider possible amendments in relation to the adoption by the International Maritime Organization (IMO) of a global market-based measure to reduce greenhouse gas emissions from maritime transport. In the event of the adoption of such a measure, and in any event before the 2028 global stocktake and no later than 30 September 2028, the Commission shall present a report to the European Parliament and to the Council in which it shall examine any such measure. Where appropriate, the Commission may follow to the report with a legislative proposal to the European Parliament and to the Council to amend this Directive as appropriate.
	Within 12 months of the adoption of such a measure and before that measure becomes operational, and in any event before the 2028 global stocktake and no later than 30 September 2028, the Commission, supported by the European Scientific Advisory Board on Climate Change, shall present a report to the European Parliament and to the Council in which it shall examine any such measure.
	That report shall examine the ambition and overall environmental integrity of the measures decided upon by the IMO, including their general ambition in relation to the Paris Agreement objective of limiting the temperature increase in the global average temperature to 1,5 oC above pre-industrial levels, to the Union economy-wide greenhouse gas emissions reduction target for 2030 and to the climate-neutrality objective as set out in Regulation (EU) 2021/1119, and shall compare the overall environmental integrity of those measures to the overall environmental integrity involved in applying the EU ETS in accordance with the rules set out in this Directive.
	The report shall take into account the level of participation in those global measures, their enforceability, transparency, penalties for non-compliance, the processes for public input, monitoring, reporting and verification of emissions, registries and accountability.
	The Commission shall also monitor adverse impacts as regards, inter alia, possible transport cost increases, market distortions and changes in port traffic, such as port evasion and shifts of transhipment hubs, the overall competitiveness of the maritime sector in the Member States, and in particular the adverse impacts on those shipping services that provide essential services of ‘territorial continuity’.
	In the event of the adoption of such a global market-based measure to reduce greenhouse gas emissions from maritime transport in line with the Paris Agreement and to at least a level comparable to that resulting from the Union measures taken under this Directive, the Commission may, where appropriate, accompany the report with a legislative proposal to amend this Directive and align it with measures taken on the global level while recognising the Union’s sovereignty to regulate its share of emissions from international shipping voyages in line with the obligations of the Paris Agreement.

Amendment 504

Proposal for a directive

Article 1 — paragraph 1 — point 6

Directive 2003/87/EC

Article 3ge — paragraph 2

Text proposed by the Commission

Amendment

2. The Commission shall monitor the implementation of this Chapter and possible trends as regards companies seeking to avoid being bound by the requirements of this Directive. If appropriate, the Commission shall propose measures to prevent such avoidance .

2. The Commission shall monitor , and report biennially from … [the year following the entry into force of this amending Directive], on the implementation of this Chapter and possible trends as regards companies seeking to avoid being bound by the requirements of this Directive. The Commission shall also monitor adverse impacts as regards, inter alia, possible transport cost increases, market distortions and changes in port traffic such as port evasion and shifts of transhipment hubs, the overall competitiveness of the maritime sector in the Member States, and in particular the adverse impacts on those shipping services that provide essential services of territorial continuity. If appropriate, the Commission shall propose measures to prevent possible adverse impacts or circumvention of the requirements of this Directive .

Amendment 505

Proposal for a directive

Article 1 — paragraph 1 — point 6

Directive 2003/87/EC

Article 3ge a (new)

Text proposed by the Commission

Amendment

Article 3gea

By way of derogation from Article 3g(1), where the distance between a port under the jurisdiction of a Member State and a port outside the jurisdiction of a Member State is less than 300 nautical miles, the allocation of allowances and the application of surrender requirements in respect of maritime transport activities shall apply in respect of one hundred percent (100 %) of the emissions from ships performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, including transhipment ports, and one hundred percent (100 %) of the emissions from ships performing voyages departing from a port outside the jurisdiction of a Member State, including transhipment ports, and arriving at a port under the jurisdiction of a Member State.

Amendment 506/rev

Proposal for a directive

Article 1 — paragraph 1 — point 7

Directive 2003/87/EC

Article 3h

Text proposed by the Commission	Amendment
Article 3h	Article 3h
Scope	Scope
The provisions of this Chapter shall apply to greenhouse gas emissions permits and the allocation and issue of allowances in respect of activities listed in Annex I other than aviation and maritime transport activities.;	1. The provisions of this Chapter shall apply to greenhouse gas emissions permits and the allocation and issue of allowances in respect of activities listed in Annex I other than aviation and maritime transport activities.
	1a. Without prejudice to the provisions laid down in Article 4 of Directive 2008/98/EC, from 1 January 2026, the provisions of this Chapter shall apply to greenhouse gas emissions permits and the allocation and issue of allowances in respect of municipal waste incineration installations.
	1b. By 31 December 2024, the Commission shall present a report to the European Parliament and to the Council in which it shall examine the possible impacts of the inclusion of municipal waste incineration installations in the EU ETS, on the deviation towards disposal of waste by landfilling in the Union, and on waste exports to third countries.
	In that report, the Commission shall also assess the possibility of including in the EU ETS other waste management processes, in particular landfills which create methane and nitrous oxide emissions in the Union.
	The Commission shall, where appropriate, accompany that report with a legislative proposal, in particular where undercapacity exists, to prevent the impacts referred to in the first subparagraph and to include the processes referred to in the second subparagraph in the EU ETS.

Amendment 677

Proposal for a directive

Article 1 — paragraph 1 — point 10

Directive 2003/87/EC

Article 9 — paragraph 3

Text proposed by the Commission

Amendment

In [the year following entry into force of this amendment], the Union-wide quantity of allowances shall be decreased by [-- million allowances (to be determined depending on year of entry into force)]. In the same year , the Union-wide quantity of allowances shall be increased by 79 million allowances for maritime transport . Starting in [the year following entry into force of this amendment], the linear factor shall be 4,2 % . The Commission shall publish the Union-wide quantity of allowances within 3 months of [date of entry into force of the amendment to be inserted].;

In [the year following entry into force of this amendment], the Union-wide quantity of allowances shall be decreased by 70 million allowances . In 2026 , the Union-wide quantity of allowances shall be decreased by 50 million allowances. In [the year following entry into force of this amendment], the Union-wide quantity of allowances shall be increased by [the number of allowances corresponding to the scope of application of the EU ETS to maritime transport activities as set out in Article 3g] million allowances for maritime transport. Starting in 2024, the linear factor shall be 4,4 % until the end of 2025. Starting in 2026, the linear factor shall be 4,5 %. Starting in 2029, the linear factor shall be 4,6 % . The Commission shall publish the Union-wide quantity of allowances within 3 months of [date of entry into force of the amendment to be inserted].;

Amendment 508

Proposal for a directive

Article 1 — paragraph 1 — point 10

Directive 2003/87/EC

Article 9 — paragraph 3 a (new)

Text proposed by the Commission

Amendment

From 1 January 2026, the Union-wide quantity of allowances shall be increased to take account of the inclusion of municipal waste incineration installations in the EU ETS. The Commission shall adopt implementing acts setting out the amount of the increase in the Union-wide quantity of allowances to take into account the inclusion of municipal waste incineration installations in the EU ETS. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 22a(2).

Amendment 509

Proposal for a directive

Article 1 — paragraph 1 — point 11 — point a

Directive 2003/87/EC

Article 10 — paragraph 1 — subparagraph 3a

Text proposed by the Commission	Amendment
In addition, 2,5 % of the total quantity of allowances between [year following the entry into force of the Directive] and 2030 shall be auctioned for the Modernisation Fund. The beneficiary Member States for this amount of allowances shall be the Member States with a GDP per capita at market prices below 65 % of the Union average during the period 2016 to 2018. The funds corresponding to this quantity of allowances shall be distributed in accordance with Part B of Annex IIb.	In addition, 2,5 % of the total quantity of allowances between 2024 and 2030 shall be auctioned for the Modernisation Fund. The beneficiary Member States for this amount of allowances shall be the Member States with a GDP per capita at market prices below 65 % of the Union average during the period 2016 to 2018. The funds corresponding to this quantity of allowances shall be distributed in accordance with Part B of Annex IIb. The additional quantity of allowances referred to in this subparagraph shall, where appropriate, also be used to fund cross-border projects with the beneficiary Member States and the adjacent low-growth border regions.
	In addition, 0,5 % of the total quantity of allowances between … [the year following the entry into force of this amending Directive] and 2030 shall be made available for the Climate Investment Fund established under Article 10a(8).

Amendment 510

Proposal for a directive

Article 1 — paragraph 1 — point 11 — point b

Directive 2003/87/EC

Article 10 — paragraph 3 — subparagraph 1 — introductory part

Text proposed by the Commission

Amendment

3. Member States shall determine the use of revenues generated from the auctioning of allowances, except for the revenues established as own resources in accordance with Article 311(3) TFEU and entered in the Union budget. Member States shall use their revenues generated from the auctioning of allowances referred to in paragraph 2, with the exception of the revenues used for the compensation of indirect carbon costs referred to in Article 10a(6), for one or more of the following:

3. Member States shall determine the use of revenues generated from the auctioning of allowances, except for the revenues established as own resources in accordance with Article 311(3) TFEU and entered in the Union budget as general income. The revenue accruing to the Union budget shall respect the principle of universality in accordance with Article 7 of Council Decision (EU, Euratom) 2020/2053 (*3). Member States shall use their revenues generated from the auctioning of allowances referred to in paragraph 2[, with the exception of the revenues used for the compensation of indirect carbon costs referred to in Article 10a(6)], for one or more of the following:

Amendment 511

Proposal for a directive

Article 1 — paragraph 1 — point 11 — point b a (new)

Directive 2003/87/EC

Article 10 — paragraph 3 — subparagraph 1 — points b to f

Present text

Amendment

(ba)	in paragraph 3, first subparagraph, points (b) to (f) are replaced by the following:

(b)

to develop renewable energies to meet the commitment of the Union to renewable energies, as well as to develop other technologies that contribute to the transition to a safe and sustainable low-carbon economy, and to help to meet the commitment of the Union to increase energy efficiency, at the levels agreed in relevant legislative acts

‘(b)

to develop renewable energies and grids for electricity transmission to meet the commitment of the Union to renewable energies and the Union targets on interconnectivity , as well as to develop other technologies that contribute to the transition to a safe and sustainable low-carbon economy, and to help to meet the commitment of the Union to increase energy efficiency, at the levels agreed in relevant legislative acts , including the production of electricity from renewables self-consumers and renewable energy communities;

(ba)	to support the deep and staged deep renovation of buildings in accordance with Article 2, points (19) and (20), of Directive (EU) …/… [Recast EPBD], starting with the renovation of the worst-performing buildings;

(c)	measures to avoid deforestation and increase afforestation and reforestation in developing countries that have ratified the international agreement on climate change, to transfer technologies and to facilitate adaptation to the adverse effects of climate change in these countries;

(c)

measures to avoid deforestation and support the protection and restoration of peatland, forests and other land or marine based ecosystems, and increase biodiversity-friendly afforestation and reforestation in developing countries that have ratified the international agreement on climate change, to transfer technologies and to facilitate adaptation to the adverse effects of climate change in these countries;

(d)	forestry sequestration in the Union;

(d)	forestry and soil sequestration in the Union;

(da)	climate adaptation in the Union;

(e)	the environmentally safe capture and geological storage of CO2 , in particular from solid fossil fuel power stations and a range of industrial sectors and subsectors, including in third countries;

(e)

the environmentally safe capture and geological storage of CO2 , in particular from solid fossil fuel power stations and a range of industrial sectors and subsectors, including in third countries , and innovative technological carbon removal methods, such as Direct Air Capture (“DAC”) and its storage ;

(f)	to encourage a shift to low-emission and public forms of transport;

(f)

to invest in and accelerate the shift to forms of transport which contribute significantly to the decarbonisation of the sector, including the development of climate-friendly passenger and freight rail transport and bus services and technologies, and to finance measures to support airports’ decarbonisation in accordance with Regulation (EU) …/… [deployment of alternative fuels infrastructure], and Regulation (EU) …/… [ensuring a level playing field for sustainable air transport];’

Amendment 512

Proposal for a directive

Article 1 — paragraph 1 — point 11 — point c

Directive 2003/87/EC

Article 10 — paragraph 3 — subparagraph 1 — point h

Text proposed by the Commission

Amendment

(h)	measures intended to improve energy efficiency, district heating systems and insulation, or to provide financial support in order to address social aspects in lower- and middle-income households, including by reducing distortive taxes;

(h)

measures intended to improve energy efficiency, district heating systems and insulation, efficient and renewable heating and cooling systems , or to provide financial support in order to address social aspects in lower- and middle-income households, including by reducing in particular taxes , duties and charges for renewable electricity ;

Amendment 513

Proposal for a directive

Article 1 — paragraph 1 — point 11 — point c a (new)

Directive 2003/87/EC

Article 10 — paragraph 3 — subparagraph 1 — point h a (new)

Text proposed by the Commission

Amendment

(ca)	in paragraph 3, first subparagraph, the following point is inserted:

‘(ha)

to finance national climate dividend schemes with a proven positive environmental impact as documented in the annual report referred to in Article 19(2) of Regulation (EU) 2018/1999 of the European Parliament and of the Council (*4) ;

Amendment 514

Proposal for a directive

Article 1 — paragraph 1 — point 11 — point c b (new)

Directive 2003/87/EC

Article 10 — paragraph 3 — subparagraph 1 — point k

Present text

Amendment

(cb)	in paragraph 3, first subparagraph, point (k) is replaced by the following:

(k)	to promote skill formation and reallocation of labour in order to contribute to a just transition to a low carbon economy, in particular in regions most affected by the transition of jobs, in close coordination with the social partners.

‘(k)

to promote skill formation and reallocation of labour in order to contribute to a just transition to a climate-neutral economy, in particular in regions most affected by the transition of jobs, in close coordination with the social partners and invest in upskilling and re-skilling of workers potentially affected by the transition .’

Amendment 515

Proposal for a directive

Article 1 — paragraph 1 — point 11 — point c c (new)

Directive 2003/87/EC

Article 10 — paragraph 3 — subparagraphs 1 a (new) and 1 b (new)

Text proposed by the Commission

Amendment

(cc)	in paragraph 3, the following subparagraphs are inserted after the first subparagraph:

‘By way of derogation from the first subparagraph, Member States shall use at least 10 % of the revenues generated from the auctioning of allowances for the development of public transport, in particular climate-friendly passenger and freight rail transport and bus services and technologies, as referred to in point (f) of that subparagraph.

By way of derogation from the first subparagraph, Member States shall use at least 10 % of the revenues generated from the auctioning of allowances to finance additional climate actions in vulnerable third countries, as referred to in point (j) of that subparagraph.’

Amendment 516

Proposal for a directive

Article 1 — paragraph 1 — point 11 — point c d (new)

Directive 2003/87/EC

Article 10 — paragraph 3 — subparagraph 2

Present text

Amendment

(cd)	in paragraph 3, the second subparagraph is replaced by the following:

Member States shall be deemed to have fulfilled the provisions of this paragraph if they have in place and implement fiscal or financial support policies, including in particular in developing countries, or domestic regulatory policies, which leverage financial support, established for the purposes set out in the first subparagraph and which have a value equivalent to at least 50 % of the revenues generated from the auctioning of allowances referred to in paragraph 2, including all revenues from the auctioning referred to in paragraph 2, points (b) and (c). Member States shall inform the Commission as to the use of revenues and the actions taken pursuant to this paragraph in their reports submitted under Decision No 280/2004/EC.

‘Member States shall be deemed to have fulfilled the provisions of this paragraph if they have in place and implement fiscal or financial support policies, including in particular in developing countries, or domestic regulatory policies, which leverage financial support, established for the purposes set out in the first subparagraph and which have a value equivalent to at least 100 % of the revenues generated from the auctioning of allowances referred to in paragraph 2, including all revenues from the auctioning referred to in paragraph 2, points (b) and (c). Member States shall inform the Commission as to the use of revenues and the actions taken pursuant to this paragraph in their reports submitted under Decision No 280/2004/EC.’

Amendment 517

Proposal for a directive

Article 1 — paragraph 1 — point 11 — point c e (new)

Directive 2003/87/EC

Article 10 — paragraphs 3 a (new) and 3 b (new)

Text proposed by the Commission

Amendment

(ce)	the following paragraphs are inserted:

‘3a. Member States shall submit to the Commission a plan on the use of revenues together with each update of the integrated national energy and climate plan referred to in Article 14(1) and (2) of Regulation (EU) 2018/1999. In accordance with Article 19(2) of that Regulation, Member States shall also report annually to the Commission on the use of revenues and the actions taken pursuant to paragraph 3 of this Article. Member States shall submit full, quality and consistent information. In particular, they shall define in their reports the meaning of “committed” and “disbursed” amounts, and submit rigorous financial information. If necessary to ensure compliance with those reporting obligations, Member States shall earmark revenues in their national budgets.

Member States shall ensure that EU ETS revenues are spent in a manner consistent with the obligations laid down in paragraph 3 and maintain their traceability, and ensure that they are additional to national climate spending. The Commission shall take all necessary measures to ensure that Member States respect their reporting obligations under this paragraph.

3b. Member States shall use the revenues generated from auctioning of allowances, and not used as own resources, referred to paragraph 2 of this Article, in accordance with:

(a)	the “do no significant harm” criteria as set out in Article 17 of Regulation (EU) 2020/852;

(b)	minimum safeguards as set out in Article 18 of Regulation (EU) 2020/852; and

(c)	the Member State’s integrated national energy and climate plan submitted in accordance with Regulation (EU) 2018/1999 and, if relevant, the territorial just transition plan prepared in accordance with Article 11 of Regulation (EU) 2021/1056 of the European Parliament and of the Council (*5) .

Amendment 518

Proposal for a directive

Article 1 — paragraph 1 — point 11 — point d a (new)

Directive 2003/87/EC

Article 10 — paragraph 5

Present text

Amendment

(da)	paragraph 5 is replaced by the following:

5. The Commission shall monitor the functioning of the European carbon market. Each year, it shall submit a report to the European Parliament and to the Council on the functioning of the carbon market and on other relevant climate and energy policies, including the operation of the auctions, liquidity and the volumes traded, and summarising the information provided by Member States on the financial measures referred to in Article 10a(6). If necessary, Member States shall ensure that any relevant information is submitted to the Commission at least two months before the Commission adopts the report.

‘5. The Commission shall monitor the functioning of the European carbon market. Each year, it shall submit a report to the European Parliament and to the Council on the functioning of the carbon market and on other relevant climate and energy policies, including the operation of the auctions , the role and impact of non-compliance operators such as financial investors in the market , liquidity and the volumes traded, and summarising the information provided by Member States on the financial measures referred to in Article 10a(6). If necessary, Member States shall ensure that any relevant information is submitted to the Commission at least two months before the Commission adopts the report.’

Amendment 519

Proposal for a directive

Article 1 — paragraph 1 — point 11 — point d b (new)

Directive 2003/87/EC

Article 10 — paragraph 5 a (new)

Text proposed by the Commission

Amendment

(db)	the following paragraph is added:

‘5a. Following the final report of 28 March 2022 of the European Securities and Markets Authority (ESMA) on emission allowances and associated derivatives, the Commission shall, where appropriate, present a legislative proposal by … [six months after the entry into force of this Directive] to follow up on the recommendations in that report, in order to improve the level of transparency, monitoring and reporting on the European emission allowance markets as well as related derivative markets, taking into account the Union-wide nature of those markets.’

Amendment 520

Proposal for a directive

Article 1 — paragraph 1 — point 11 — point d c (new)

Directive 2003/87/EC

Article 10 — paragraph 5 b (new)

Text proposed by the Commission

Amendment

(dc)	the following paragraph is added:

‘5b. ESMA shall regularly monitor the integrity and transparency of the European emission allowance markets as well as related derivative markets. It shall on a regular basis publish a report on the integrity and transparency of those markets, drawing, as necessary, on the Union registry data and the data reported or made available to the competent authorities. In that report, ESMA shall in particular examine the functioning of the markets in light of any market volatility and price evolution, the operation of the auctions and trading operations on the markets, liquidity and the volumes traded, and the categories and trading behaviour of market participants. That report shall, where relevant, include recommendations to strengthen market integrity and improve market transparency. Those recommendations shall, in particular, consider measures to enhance the information available to market participants and the public at large on the functioning of the emission allowance markets and related derivative markets, improve regulatory reporting and market monitoring in emission allowance markets and related derivative markets, promote the prevention and detection of market abuse and help in maintaining orderly markets for emission allowances and related derivatives.

The Commission shall assess the recommendations referred to in the first subparagraph of this paragraph in the next report submitted pursuant to paragraph 5 following the publication of ESMA’s report. The Commission shall, where appropriate, accompany that report with a legislative proposal to improve the transparency and integrity of the emission allowance markets and related derivative markets, taking into account the Union-wide nature of those markets.’

Amendment 521

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point a — point -i (new)

Directive 2003/87/EC

Article 10a — paragraph 1 — subparagraph 2

Present text

Amendment

(-i)	the second subparagraph is replaced by the following:

The measures referred to in the first subparagraph shall, to the extent feasible, determine Union-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 and electricity produced from waste gases.

‘The measures referred to in the first subparagraph shall, to the extent feasible, determine Union-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 available in respect of any electricity production.’

Amendment 522

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point a — point i

Directive 2003/87/EC

Article 10a — paragraph 1 — subparagraph 2a

Text proposed by the Commission

Amendment

In the case of installations covered by the obligation to conduct an energy audit under Article 8(4) of Directive 2012/27/EU of the European Parliament and of the Council (*) [Article reference to be updated with the revised Directive], free allocation shall only be granted fully if the recommendations of the audit report are implemented, to the extent that the pay-back time for the relevant investments does not exceed five years and that the costs of those investments are proportionate. Otherwise, the amount of free allocation shall be reduced by 25 % . The amount of free allocation shall not be reduced if an operator demonstrates that it has implemented other measures which lead to greenhouse gas emission reductions equivalent to those recommended by the audit report. The measures referred to in the first subparagraph shall be adjusted accordingly.

In the case of installations covered by the obligation to conduct an energy audit or implement a certified energy management system under Article 8(4) of Directive 2012/27/EU of the European Parliament and of the Council (*) [Article reference to be updated with the revised Directive], free allocation shall only be granted fully if the recommendations of the audit report or of the certified energy management system are implemented, to the extent that the pay-back time for the relevant investments does not exceed eight years and that the costs of those investments are proportionate. Otherwise, the amount of free allocation shall be reduced in accordance with the ninth and tenth subparagraphs of this paragraph . The amount of free allocation shall not be reduced if an operator demonstrates that it has implemented other measures which lead to greenhouse gas emission reductions equivalent to those recommended by the audit report for the installation concerned . The measures referred to in the first subparagraph of this paragraph shall be adjusted accordingly.

In addition to the requirements set out in the third subparagraph of this paragraph, by 1 July 2025, operators in sectors or subsectors eligible for free allocation of allowances pursuant to Articles 10a and 10b shall establish a decarbonisation plan for each of their installations for its activities covered by this Directive. That plan shall be consistent with the climate-neutrality objective set out in Article 2(1) of Regulation (EU) 2021/1119 and any relevant sectoral roadmaps prepared in accordance with Article 10 of that Regulation and shall set out:

(a)

measures and related financial and investment plans for each installation to reach the necessary emission reductions consistent with the climate-neutrality objective set out in Article 2(1) of Regulation (EU) 2021/1119 and any relevant sectoral roadmaps prepared in accordance with Article 10 of that Regulation at installation level, excluding the use of carbon offset credits;

(b)	intermediate targets and milestones to measure, by 31 December 2025 and by 31 December of each subsequent year until 2050, progress made towards reaching climate-neutrality as set out in point (a);

(c)	an estimate of the impact of each of the measures and related financial and investment plans referred to in point (a) as regards the reduction of greenhouse gas emissions and the targets and milestones referred to in point (b);

(d)	measures to address the implications for re- and up-skilling of the workforce, including through social dialogue, in accordance with national law and practice, in order to ensure a just transition.

Member States may provide financial support to operators for the implementation of their decarbonisation plans referred to in the fourth subparagraph. Such support shall not be considered illegal State aid.

The attainment of the targets and milestones referred to in the fourth subparagraph, point (b), shall be verified by 31 December 2025 and by 31 December of each subsequent year until 2050, in accordance with the verification and accreditation procedures provided for in Article 15.

If no decarbonisation plan has been established in accordance with the fourth subparagraph or if the milestones and targets in that plan have not been attained, the amount of free allocation shall be reduced in accordance with the ninth and tenth subparagraphs.

The Commission, supported by the European Scientific Advisory Board on Climate Change, is empowered to adopt delegated acts in accordance with Article 23 to supplement this Directive by setting out the minimal content and format of the decarbonisation plans referred to in the fourth subparagraph of this paragraph, in particular as regards the benchmarks for the targets and milestones referred to in point (b) of that subparagraph. The establishment and adoption of the delegated acts shall involve all relevant stakeholders.

Where the requirements in either the third subparagraph or the fourth subparagraph have not been fulfilled, free allocation shall be reduced by:

(a)	50 % for the installations whose greenhouse gas emission levels are above the average of the 10 % least efficient installations in a sector or subsector in the Union for the relevant product benchmarks;

(b)	30 % for installations whose greenhouse gas emission levels are below the average of the 10 % least efficient installations in a sector or subsector in the Union for the relevant product benchmarks and above the average of the 50 % most efficient installations in that sector or subsector;

(c)	25 % for installations whose greenhouse gas emission levels are above the average of the 10 % most efficient installations in a sector or subsector in the Union for the relevant product benchmarks and below the average of the 50 % most efficient installations in that sector or subsector.

Where the requirements in neither the third subparagraph nor the fourth subparagraph have been fulfilled, the percentages set out in the ninth subparagraph, points (a), (b) and (c), shall be doubled.

An additional free allocation of 10 % of the applicable benchmark value shall be given to installations whose greenhouse gas emission levels are below the average of the 10 % most efficient installations in a sector or subsector in the Union for the relevant product benchmarks, provided allowances are available in accordance with the twelfth subparagraph.

For the purpose of the additional free allocation referred to in the eleventh subparagraph, any allowances that are not allocated due to a reduction of free allocation in accordance with the ninth and tenth subparagraphs shall be used.

Amendment 523

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point a — point ii

Directive 2003/87/EC

Article 10a — paragraph 1 — subparagraph 3

Text proposed by the Commission

Amendment

In order to provide further incentives for reducing greenhouse gas emissions and improving energy efficiency, the determined Union-wide ex-ante benchmarks shall be reviewed as soon as possible and no later than … [six months after the date of entry into force of this amending Directive] in view of potentially modifying the definitions , scope and system boundaries of existing product benchmarks and potentially including new benchmarks ensuring that free allocation for the production of a product is independent of the feedstock or the type of production process, where the production processes have the same purpose, accounts for the circular use potential of materials, or avoids installations with partially or fully decarbonised processes that produce products with similar or equal characteristics to conventional installations in the benchmark being excluded from or unable to participate in the benchmarks system . The benchmark values resulting from that review shall be published as soon as the necessary information becomes available, in order for those benchmark values to apply from 2026.

Amendment 678

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point b

Directive 2003/87/EC

Article 10a — paragraph 1a — subparagraph 2

Text proposed by the Commission

Amendment

By way of derogation from the previous subparagraph, for the first years of operation of Regulation [CBAM], the production of these products shall benefit from free allocation in reduced amounts. A factor reducing the free allocation for the production of these products shall be applied (CBAM factor). The CBAM factor shall be equal to 100 % for the period during the entry into force of [CBAM regulation] and the end of 2025, 90 % in 2026 and shall be reduced by 10 percentage points each year to reach 0 % by the tenth year.

By way of derogation from the first subparagraph, for the first years of operation of Regulation [CBAM], the production of products listed in Annex I to that Regulation shall benefit from free allocation in reduced amounts. A factor reducing the free allocation for the production of those products shall be applied (CBAM factor). The CBAM factor shall be equal to 100 % for the period between… [the date of entry into force of [CBAM regulation]] and the end of 2026 , and, contingent upon the application of Article 36(3), point (d), of Regulation (EU) …/… [CBAM Regulation], 93 % in 2027, 84 % in 2028, 69 % in 2029, 50 % in 2030, and 25 % in 2031, to reach 0 % in 2032.

Amendment 679

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point b

Directive 2003/87/EC

Article 10a — paragraph 1a — subparagraphs 2 a (new) and 2 b (new)

Text proposed by the Commission	Amendment
	In order to ensure a level playing field, by way of derogation from the first and second subparagraphs, the production in the Union of products listed in Annex I to Regulation [CBAM] shall continue to receive free allocation, provided such products are produced for export to third countries without carbon pricing mechanisms similar to the EU ETS.
	By … [one year before the end of the transitional period as set out in Regulation [CBAM]], the Commission shall present a report to the European Parliament and to the Council in which it shall provide a detailed assessment of the effects of the EU ETS and CBAM on the production in the Union of products listed in Annex I to Regulation [CBAM] that are produced for export to third countries and on the development of global emissions, as well as an assessment of the WTO compatibility of the derogation laid down in the previous subparagraph, assessing in particular potential export adjustment mechanisms for installations belonging to the 10 % most efficient installations as laid down in this Article, in the light of WTO compatibility or any other proposals the Commission deems appropriate. The Commission shall, where appropriate, accompany that report with a legislative proposal providing for protection against the risk of carbon leakage that equalises carbon pricing for the production in the Union of products listed in Annex I to Regulation [CBAM] that are produced for export to third countries without carbon pricing mechanisms similar to the EU ETS, in a way that is WTO-compatible by … [the end of the transitional period as set out in Regulation [CBAM]].

Amendment 529

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point b

Directive 2003/87/EC

Article 10a — paragraph 1a — subparagraph 4

Text proposed by the Commission	Amendment
Allowances resulting from the reduction of free allocation shall be made available to support innovation in accordance with Article 10a(8).	Allowances resulting from the reduction of free allocation shall be made available to the Climate Investment Fund in accordance with Article 10a(8).

Amendment 530

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point b a (new)

Directive 2003/87/EC

Article 10a — paragraph 1a a (new)

Text proposed by the Commission

Amendment

(ba)	the following paragraph is inserted:

‘1aa. Each year from 2025, as part of its annual report to the European Parliament and to the Council pursuant to Article 10(5), the Commission shall assess the effectiveness of the Carbon Border Adjustment Mechanism (“CBAM”) in addressing the carbon leakage risk for goods produced in the Union for export to third countries which do not apply the EU ETS or a similar carbon pricing mechanism. The report shall in particular assess the development of Union exports in CBAM sectors and the developments as regards trade flows and the embedded emissions of those goods on the global market. Where the report concludes that there is a carbon leakage risk for goods produced in the Union for export to such third countries which do not apply the EU ETS or a similar carbon pricing mechanism, the Commission shall, where appropriate, present a legislative proposal to address that carbon leakage risk in a manner that is compliant with WTO rules and takes into account the decarbonisation of installations in the Union.’

Amendment 531

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point c — point i

Directive 2003/87/EC

Article 10a — paragraph 2 — subparagraph 3 — point c

Text proposed by the Commission

Amendment

(c)

For the period from 2026 to 2030, the benchmark values shall be determined in the same manner as set out in points (a) and (d) on the basis of information submitted pursuant to Article 11 for the years 2021 and 2022 , excluding from the determination of the benchmark values data of the three least emission-intensive installations that either started operating after 2017 or received free allocation based on another benchmark, and on the basis of applying the annual reduction rate in respect of each year between 2008 and 2028.;

Amendment 532

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point c — point ii

Directive 2003/87/EC

Article 10a — paragraph 2 — subparagraph 3 — point d

Text proposed by the Commission

Amendment

(d)

Where the annual reduction rate exceeds 2,5 % or is below 0,2 %, the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant, in respect of each year between 2008 and 2028.

(d)

Where the annual reduction rate exceeds 2,5 % or is below 0,4 %, the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant, in respect of each year between 2008 and 2028.

Amendment 533

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point d a (new)

Directive 2003/87/EC

Article 10a — paragraph 5

Text proposed by the Commission

Amendment

(da)	paragraph 5 is replaced by the following:

5. In order to respect the auctioning share set out in Article 10, for every year in which the sum of free allocations does not reach the maximum amount that respects the auctioning share, the remaining allowances up to that amount shall be used to prevent or limit reduction of free allocations to respect the auctioning share in later years. Where, nonetheless, the maximum amount is reached, free allocations shall be adjusted accordingly. Any such adjustment shall be done in a uniform manner.

‘5. In order to respect the auctioning share set out in Article 10, for every year in which the sum of free allocations does not reach the maximum amount that respects the auctioning share, the remaining allowances up to that amount shall be used to prevent or limit reduction of free allocations to respect the auctioning share in later years. Where, nonetheless, the maximum amount is reached, free allocations shall be adjusted accordingly. Any such adjustment shall be done in a uniform manner. However, installations whose greenhouse gas emission levels are below the average of the 10 % most efficient installations in a sector or subsector in the Union for the relevant benchmarks in a year when the adjustment applies shall be exempted from that adjustment. ’

Amendment 534

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point g

Directive 2003/87/EC

Article 10a — paragraph 8 — subparagraph 1

Text proposed by the Commission

Amendment

365 million allowances from the quantity which could otherwise be allocated for free pursuant to this Article, and 85 million allowances from the quantity which could otherwise be auctioned pursuant to Article 10, as well as the allowances resulting from the reduction of free allocation referred to in Article 10a(1a), shall be made available to a Fund with the objective of supporting innovation in low-carbon technologies and processes, and contribute to zero pollution objectives (the ‘Innovation Fund ’). Allowances that are not issued to aircraft operators due to the closure of aircraft operators and which are not necessary to cover any shortfall in surrenders by those operators, shall also be used for innovation support as referred to in the first subparagraph.

390 million allowances from the quantity which could otherwise be allocated for free pursuant to this Article, and 110 million allowances from the quantity which could otherwise be auctioned pursuant to Article 10, as well as the allowances referred to in Article 10(1), fifth subparagraph, shall be made available to a Fund (the ‘Climate Investment Fund’). In addition, any allowances resulting from the reduction of free allocation referred to in Article 10a(1a), shall also be made available to the Climate Investment Fund . The Climate Investment Fund shall have the objective of supporting innovation in techniques, processes and technologies that contribute significantly to the decarbonisation of the sectors covered by this Directive and contribute to zero pollution and circularity objectives , as well as the scaling up of techniques, processes and technologies that may no longer be considered innovative, but nevertheless possess a significant greenhouse gas emissions abatement potential and contribute to energy and resource savings in line with the Union’s climate and energy targets for 2030. To foster innovation in breakthrough technologies as soon as possible, the Commission shall ensure that a share of the financing made available through the Climate Investment Fund is ‘ frontloaded’ during the period from … to … [the first five years of the implementation of this amending Directive] . Allowances that are not issued to aircraft operators due to the closure of aircraft operators and which are not necessary to cover any shortfall in surrenders by those operators, shall also be used for innovation support as referred to in the first subparagraph.

Amendment 535

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point g

Directive 2003/87/EC

Article 10a — paragraph 8 — subparagraph 2

Text proposed by the Commission

Amendment

In addition, 50 million unallocated allowances from the market stability reserve shall supplement any remaining revenues from the 300 million allowances available in the period from 2013 to 2020 under Commission Decision 2010/670/EU (*), and shall be used in a timely manner for innovation support as referred to in the first subparagraph. Furthermore, the external assigned revenues referred to in Article 21(2) of Regulation (EU) [FuelEU Maritime] shall be allocated to the Innovation Fund and implemented in line with this paragraph.

In addition, 50 million unallocated allowances from the market stability reserve shall supplement any remaining revenues from the 300 million allowances available in the period from 2013 to 2020 under Commission Decision 2010/670/EU (*), and shall be used in a timely manner for innovation and decarbonisation support as referred to in the first subparagraph. Furthermore, the external assigned revenues referred to in Article 5(6) of Regulation (EU) 2018/842 of the European Parliament and of the Council (**) shall be allocated to the Ocean Fund established by Article 3gab, and implemented in line with this paragraph.

Amendment 536

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point g

Directive 2003/87/EC

Article 10a — paragraph 8 — subparagraph 3

Text proposed by the Commission

Amendment

The Innovation Fund shall cover the sectors listed in Annex I and Annex III, including environmentally safe carbon capture and utilisation (‘CCU’) that contributes substantially to mitigating climate change , as well as products substituting carbon intensive ones produced in sectors listed in Annex I, and to help stimulate the construction and operation of projects aimed at the environmentally safe capture and geological storage (‘CCS’) of CO2 , as well as of innovative renewable energy and energy storage technologies ; in geographically balanced locations. The Innovation Fund may also support break-through innovative technologies and infrastructure to decarbonise the maritime sector and for the production of low- and zero-carbon fuels in aviation, rail and road transport. Special attention shall be given to projects in sectors covered by the [CBAM regulation] to support innovation in low carbon technologies , CCU, CCS , renewable energy and energy storage, in a way that contributes to mitigating climate change.

The Climate Investment Fund shall cover the sectors listed in Annex I and Annex III, such as innovative renewable energy and energy storage technologies , as well as products and processes substituting carbon intensive ones produced in sectors listed in Annex I, and to help stimulate the construction and operation of innovative projects aimed at the environmentally safe carbon capture and utilisation (‘CCU’) that contributes substantially to mitigating climate change, in particular for unavoidable industrial process emissions, the environmentally safe capture, transport and permanent geological storage (‘CCS’) of CO2 for unavoidable industrial process emissions, and the direct capture of CO2 from the atmosphere with safe, sustainable and permanent storage (‘DACS’). Investments in renewable hydrogen technologies may, where appropriate, also be encouraged. The Climate Investment Fund shall also support break-through innovative technologies and infrastructure to decarbonise rail and road transport , including collective forms of transport such as public transport and occasional coach services, while seeking synergies with Horizon Europe, in particular with European partnerships and where relevant, with other Union programmes . Special attention shall be given to projects , including for exports, in sectors covered by the [CBAM regulation] to support innovation in and implementation of techniques, processes and technologies that contribute significantly to the decarbonisation of the sectors covered by that Regulation, CCU, CCS, CO2 transport , renewable energy and energy storage in a way that contributes to mitigating climate change in accordance with the targets and objectives set out in Regulation (EU) 2021/1119 for 2030 and 2050, and a just transition and delivers the most marginal benefit in terms of emission reductions per support provided . The Climate Investment Fund may also support breakthrough innovative technologies aimed at the reduction of emissions in the waste sector.

Amendment 537

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point g

Directive 2003/87/EC

Article 10a — paragraph 8 — subparagraph 3 a (new)

Text proposed by the Commission	Amendment
	At least 12 % of the allowances made available to the Climate Investment Fund shall be used for the further development and deployment of renewable energy sources in the Union in line with Directive (EU) …/… [revised RED].

Amendment 538

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point g

Directive 2003/87/EC

Article 10a — paragraph 8 — subparagraph 3 b (new)

Text proposed by the Commission	Amendment
	The Climate Investment Fund may also support CCDs to support decarbonisation technologies for which the carbon price might not be a sufficient incentive. The Commission shall adopt delegated acts in accordance with Article 23 to supplement this Directive concerning the rules on the operation of CCDs by 31 December 2023.
	Financial support from the Climate Investment Fund shall be proportionate to the policy objectives set out in this Article and shall not lead to undue distortions of the internal market. To this end, funds shall only be granted to cover additional costs or investment risks that cannot be borne by investors under normal market conditions. Accordingly, aid from the Climate Investment Fund shall not lead to unfair discrimination with regard to competing imported products, as required under WTO rules.
	Where the EU ETS price is higher than the strike price at which the project has been awarded, the beneficiary shall pay back the difference to the Climate Investment Fund.

Amendment 539

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point g

Directive 2003/87/EC

Article 10a — paragraph 8 — subparagraph 4

Text proposed by the Commission

Amendment

Projects in the territory of all Member States, including small-scale projects, shall be eligible. Technologies receiving support shall be innovative and not yet commercially viable at a similar scale without support but shall represent breakthrough solutions or be sufficiently mature for application at pre-commercial scale.

Projects in the territory of all Member States, including medium and small-scale projects, shall be eligible. Technologies receiving support shall be innovative , demonstrate a potential for large-scale greenhouse gas reduction and not yet be commercially viable at a similar scale without support but shall represent breakthrough or not yet commercially implementable solutions or be sufficiently technologically mature for application at (pre-)commercial scale , or contribute significantly to the objective of climate neutrality and shall not be capable of being deployed at large scale without support .

Amendment 540

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point g

Directive 2003/87/EC

Article 10a — paragraph 8 — subparagraph 5

Text proposed by the Commission

Amendment

The Commission shall ensure that the allowances destined for the Innovation Fund are auctioned in accordance with the principles and modalities laid down in Article 10(4). Proceeds from the auctioning shall constitute external assigned revenue in accordance with Article 21(5) of the Financial Regulation. Budgetary commitments for actions extending over more than one financial year may be broken down over several years into annual instalments.

The Commission shall ensure that the allowances destined for the Climate Investment Fund are auctioned in accordance with the principles and modalities laid down in Article 10(4). Proceeds from the auctioning shall constitute external assigned revenue in accordance with Article 21(5) of the Financial Regulation. Budgetary commitments for actions extending over more than one financial year may be broken down over several years into annual instalments.

Amendment 541

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point g

Directive 2003/87/EC

Article 10a — paragraph 8 — subparagraph 6

Text proposed by the Commission	Amendment
Projects shall be selected on the basis of objective and transparent criteria, taking into account, where relevant, the extent to which projects contribute to achieving emission reductions well below the benchmarks referred to in paragraph 2. Projects shall have the potential for widespread application or to significantly lower the costs of transitioning towards a low-carbon economy in the sectors concerned. Projects involving CCU shall deliver a net reduction in emissions and ensure avoidance or permanent storage of CO2. In the case of grants provided through calls for proposals, up to 60 % of the relevant costs of projects may be supported, out of which up to 40 % need not be dependent on verified avoidance of greenhouse gas emissions, provided that pre-determined milestones, taking into account the technology deployed, are attained. In the case of support provided through competitive bidding and in the case of technical assistance support, up to 100 % of the relevant costs of projects may be supported.	Projects shall be selected by way of a transparent selection procedure, in a technology-neutral manner in accordance with the objectives of the Climate Investment Fund as set out in the first subparagraph of this paragraph and on the basis of objective and transparent criteria, taking into account the extent to which projects provide a significant contribution to the Union’s climate and energy targets while contributing to the zero pollution and circularity objectives in accordance with the first subparagraph of this paragraph, as well as the need to ensure the fair geographical distribution of projects in accordance with subparagraph 6a of this paragraph and , where relevant, the extent to which projects contribute to achieving emission reductions well below the benchmarks referred to in paragraph 2. Projects shall have the potential for widespread application or to significantly lower the costs of transitioning towards a climate neutral economy in the sectors concerned . Priority shall be given to technologies and processes addressing multiple environmental impacts . Projects involving CCU shall deliver a net reduction in emissions and ensure avoidance or permanent storage of CO2. In the case of grants provided through calls for proposals, up to 60 % of the relevant costs of projects may be supported, out of which up to 40 % need not be dependent on verified avoidance of greenhouse gas emissions, provided that pre-determined milestones, taking into account the technology deployed, are attained. In the case of support provided through competitive bidding and in the case of technical assistance support, up to 100 % of the relevant costs of projects may be supported. Projects whose reduction in emissions benefit the decarbonisation of other actors in nearby geographical areas shall have preferential treatment in the criteria used for the selection of projects.
	Projects funded by the Climate Investment Fund shall be required to share knowledge with other relevant projects as well as with Union-based researchers having a legitimate interest. The terms of knowledge-sharing shall be defined by the Commission in calls for proposals.
	The calls for proposal shall be open and transparent and clearly set out what kinds of technologies can be supported. In preparing the calls for proposal, the Commission shall ensure that all sectors are duly covered. The Commission shall take measures to ensure that the calls are communicated as widely as possible, and especially to small and medium-sized enterprises (‘SMEs’).

Amendment 542

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point g

Directive 2003/87/EC

Article 10a — paragraph 8 — subparagraph 6 a (new)

Text proposed by the Commission

Amendment

The Climate Investment Fund shall aim at a geographical balanced support, for support provided in the form of CCDs, and for projects related to upscaling, while ensuring the highest possible quality of the projects and upholding the selection criteria referred to in the sixth subparagraph of this paragraph, taking into account specific sectoral circumstances and investment needs, in particular in the sectors covered by Article 3g and Chapter IVa.

Amendment 543

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point g

Directive 2003/87/EC

Article 10a — paragraph 8 — subparagraph 7

Text proposed by the Commission

Amendment

The Commission is empowered to adopt delegated acts in accordance with Article 23 to supplement this Directive concerning rules on the operation of the Innovation Fund, including the selection procedure and criteria, and the eligible sectors and technological requirements for the different types of support.

The Commission is empowered to adopt delegated acts in accordance with Article 23 to supplement this Directive concerning rules on the operation of the Climate Investment Fund, including the selection procedure and criteria , the participation of SMEs , and the eligible sectors and technological requirements for the different types of support. The Commission shall aim for a timetable that frontloads a share of the support from the Climate Investment Fund to the beginning of the period. When implementing the Climate Investment Fund, the Commission shall take all the appropriate measures in accordance with Regulation (EU, Euratom) 2020/2092 to ensure the protection of funds in relation to measures and investments supported by the Climate Investment Fund in the event of failure to respect the rule of law in the Member States. To that end, the Commission shall provide an effective and efficient internal control system and shall seek recovery of amounts wrongly paid or incorrectly used.

In order to ensure a fair and just transition, the selection criteria shall take into consideration environmental and social safeguards. All financial resources from the Climate Investment Fund shall be used in accordance with:

(a)	the ‘do no significant harm’ criteria as set out in Article 17 of Regulation (EU) 2020/852;

(b)	minimum safeguards as set out in Article 18 of Regulation (EU) 2020/852.

In the case of support through CCDs, those delegated acts shall allow for technology neutral, price-competitive tendering in accordance with the objectives of the Climate Investment Fund as set out in the first subparagraph.

Amendment 544

Proposal for a directive

Article 1 — paragraph 1 — point 12 — point g

Directive 2003/87/EC

Article 10a — paragraph 8 — subparagraph 7 a (new)

Text proposed by the Commission

Amendment

The Commission shall present every two years to the European Parliament and the Council a report outlining the consistency of the projects funded through the Climate Investment Fund and the objective of climate neutrality set out in Regulation (EU) 2021/1119, the progress achieved towards the deployment of the investments described in the industrial decarbonisation plans, and its action plan for the next two-year period.

Amendment 545

Proposal for a directive

Article 1 — paragraph 1 — point 13

Directive 2003/87/EC

Article 10c

Text proposed by the Commission

Amendment

(13)	in Article 10c , paragraph 7 is replaced by the following:

(13)	Article 10c is deleted;

‘Member States shall require benefiting electricity generating installations and network operators to report, by 28 February of each year, on the implementation of their selected investments, including the balance of free allocation and investment expenditure incurred and the types of investments supported. Member States shall report on this to the Commission, and the Commission shall make such reports public.’;

Amendment 546

Proposal for a directive

Article 1 — paragraph 1 — point 13 a (new)

Directive 2003/87/EC

Article 10c a (new)

Text proposed by the Commission

Amendment

(13a)

the following article is inserted:

‘Article 10ca

Transitional free allocation for the modernisation of the energy sector

Any allowances for transitional free allocation for the modernisation of the energy sector that have not been allocated to operators in the Member States concerned by 31 December 2023 shall be added to the total quantity of allowances that the Member State concerned receives for auctioning pursuant to Article 10(2), point (a). However, Member States may use those allowances, or some of those allowances, in accordance with Article 10d to support investments within the framework of the Modernisation Fund.’

Amendment 547

Proposal for a directive

Article 1 — paragraph 1 — point 14 — point a

Directive 2003/87/EC

Article 10d — paragraph 1 — subparagraphs 1 a (new) and 1 b (new)

Text proposed by the Commission	Amendment
	Support from the Modernisation Fund shall only be granted to Member States that have adopted legally binding targets for achieving climate neutrality by 2050 at the latest, as well as measures for the phasing out of all fossil fuels in a timeframe consistent with the targets set out in Regulation (EU) 2021/1119.
	In addition, no support under the Modernisation Fund shall be provided to support investments proposed by a beneficiary Member State in respect of which the procedure provided for in Article 6 of Regulation (EU, Euratom) 2020/2092 is ongoing or in respect of which the Council has adopted an implementing decision on appropriate measures pursuant to that Article.

Amendment 548

Proposal for a directive

Article 1 — paragraph 1 — point 14 — point a

Directive 2003/87/EC

Article 10d — paragraph 1 — subparagraph 2

Text proposed by the Commission

Amendment

The investments supported shall be consistent with the aims of this Directive, as well as the objectives of the Communication from the Commission of 11 December 2019 on The European Green Deal (*) and Regulation (EU) 2021/1119 of the European Parliament and of the Council (**) and the long-term objectives as expressed in the Paris Agreement. No support from the Modernisation Fund shall be provided to energy generation facilities that use fossil fuels.

The investments supported shall be consistent with the aims of this Directive, as well as the objectives of the Communication from the Commission of 11 December 2019 on The European Green Deal (*) and Regulation (EU) 2021/1119 and the long-term objectives as expressed in the Paris Agreement. No support from the Modernisation Fund shall be provided to energy -related activities that use fossil fuels.

Amendment 549

Proposal for a directive

Article 1 — paragraph 1 — point 14 — point b

Directive 2003/87/EC

Article 10d — paragraph 2 — introductory part

Text proposed by the Commission	Amendment
2. At least 80 % of the financial resources from the Modernisation Fund shall be used to support investments in the following:	2. 100 % of the financial resources from the Modernisation Fund shall be used to support investments in the following:

Amendment 550

Proposal for a directive

Article 1 — paragraph 1 — point 14 — point b

Directive 2003/87/EC

Article 10d — paragraph 2 — point a a (new)

Text proposed by the Commission

Amendment

(aa)	the generation of energy by hydrogen generators;

Amendment 551

Proposal for a directive

Article 1 — paragraph 1 — point 14 — point b

Directive 2003/87/EC

Article 10d — paragraph 2 — point c

Text proposed by the Commission

Amendment

(c)	the improvement of demand side energy efficiency, including in transport, buildings, agriculture and waste;

(c)	the reduction of overall energy use through demand side management and energy efficiency, including in transport, buildings, agriculture and waste , while taking into account the electrification need linked to the climate transition and the associated increased demand for renewable electricity ;

Amendment 552

Proposal for a directive

Article 1 — paragraph 1 — point 14 — point b

Directive 2003/87/EC

Article 10d — paragraph 2 — point e

Text proposed by the Commission

Amendment

(e)	the support of low-income households, including in rural and remote areas, to address energy poverty and to modernise their heating systems ; and

(e)	the support of low-income households, including in rural and remote areas to address energy poverty and to modernise their heating and cooling systems and energy efficiency efforts in buildings for both residential and commercial use;

Amendment 553

Proposal for a directive

Article 1 — paragraph 1 — point 14 — point b

Directive 2003/87/EC

Article 10d — paragraph 2 — point f

Text proposed by the Commission

Amendment

(f)	a just transition in carbon-dependent regions in the beneficiary Member States, so as to support the redeployment, re-skilling and up-skilling of workers, education, job-seeking initiatives and start-ups, in dialogue with the social partners.;

(f)

a just transition in carbon-dependent regions in the beneficiary Member States, so as to support the redeployment, re-skilling and up-skilling of workers, education, job-seeking initiatives and start-ups, in dialogue with civil society and social partners , consistent with and contributing to the relevant actions included by the Member States in their territorial just transition plans in accordance with Article 8(2), point (k), of Regulation (EU) 2021/1056, where relevant ; and

Amendment 554

Proposal for a directive

Article 1 — paragraph 1 — point 14 — point b

Directive 2003/87/EC

Article 10d — paragraph 2 — point f a (new)

Text proposed by the Commission

Amendment

(fa)	investments in the deployment of alternative fuels infrastructure.

Amendment 555

Proposal for a directive

Article 1 — paragraph 1 — point 14 — point b a (new)

Directive 2003/87/EC

Article 10d — paragraph 2 a (new)

Text proposed by the Commission

Amendment

(ba)	the following paragraph is inserted:

‘ 2a. All financial resources from the Modernisation Fund shall be used in accordance with:

(a)	the “do no significant harm” criteria as set out in Article 17 of Regulation (EU) 2020/852;

(b)	minimum safeguards as set out in Article 18 of Regulation (EU) 2020/852. ’

Amendment 556

Proposal for a directive

Article 1 — paragraph 1 — point 14 — point b b (new)

Directive 2003/87/EC

Article 10d — paragraph 5 — subparagraph 2 a (new)

Present text

Amendment

(bb)	in paragraph 5, the following subparagraph is added:

‘The investment committee shall seek the advice of the European Scientific Advisory Board on Climate Change to ensure that investment decisions are aligned with the criteria set out in this Article and support the achievement of the objectives set out in Regulation (EU) 2021/1119. ’

Amendment 557

Proposal for a directive

Article 1 — paragraph 1 — point 14 — point b c (new)

Directive 2003/87/EC

Article 10d — paragraph 6

Present text

Amendment

(bc)	paragraph 6 is replaced by the following:

6. Before a beneficiary Member State decides to finance an investment from its share in the Modernisation Fund, it shall present the investment project to the investment committee and to the EIB. Where the EIB confirms that an investment falls into the areas listed in paragraph 2, the Member State may proceed to finance the investment project from its share.

‘6. Before a beneficiary Member State decides to finance an investment from its share in the Modernisation Fund, it shall present the investment project to the investment committee and to the EIB.

Where an investment in the modernisation of energy systems, which is proposed to be financed from the Modernisation Fund, does not fall into the areas listed in paragraph 2, the investment committee shall assess the technical and financial viability of that investment, including the emission reductions it achieves, and issue a recommendation on financing the investment from the Modernisation Fund. The investment committee shall ensure that any investment relating to district heating achieves a substantial improvement in energy efficiency and emission reductions.

The investment committee shall assess the technical and financial viability of that investment, including the emission reductions it achieves, and issue a recommendation on financing the investment from the Modernisation Fund. The investment committee shall ensure that any investment relating to district heating achieves a substantial improvement in energy efficiency and emission reductions.

That recommendation may include suggestions regarding appropriate financing instruments. Up to 70 % of the relevant costs of an investment which does not fall into the areas listed in paragraph 2 may be supported with resources from the Modernisation Fund provided that the remaining costs are financed by private legal entities.

That recommendation may include suggestions regarding appropriate financing instruments.’

Amendment 558

Proposal for a directive

Article 1 — paragraph 1 — point 14 — point b d (new)

Directive 2003/87/EC

Article 10d — paragraph 11

Present text

Amendment

(bd)	paragraph 11 is replaced by the following:

11. The investment committee shall report annually to the Commission on experience with the evaluation of investments. By 31 December 2024, taking into consideration the findings of the investment committee, the Commission shall review the areas for projects referred to in paragraph 2 and the basis on which the investment committee bases its recommendations.

‘11. The investment committee shall report annually to the Commission , the Council and the European Parliament on experience with the evaluation of investments . That report shall be made public . By 31 December 2024, taking into consideration the findings of the investment committee, the Commission shall review the areas for projects referred to in paragraph 2 and the basis on which the investment committee bases its recommendations.’

Amendment 559

Proposal for a directive

Article 1 — paragraph 1 — point 15 — point -a (new)

Directive 2003/87/EC

Article 12 — paragraph 1

Present text

Amendment

(-a)	paragraph 1 is replaced by the following:

1. Member States shall ensure that allowances can be transferred between:

‘1. Member States shall ensure that allowances can be transferred between:

(a)	persons within the Union;

(a)	regulated entities within the Union;

(b)	persons within the Union and persons in third countries, where such allowances are recognised in accordance with the procedure referred to in Article 25 without restrictions other than those contained in, or adopted pursuant to, this Directive.

(b)	regulated entities within the Union and persons in third countries, where such allowances are recognised in accordance with the procedure referred to in Article 25 without restrictions other than those contained in, or adopted pursuant to, this Directive.

Regulated entities may mandate a natural person or a legal entity to operate registry accounts belonging to the regulated entity and conduct all types of transactions to which that account is entitled, on behalf of the regulated entity. Responsibility for compliance shall remain with the regulated entity. When mandating the natural person or the legal entity, the regulated entity shall ensure that there is no conflict of interest between the mandated person or entity and competent authorities, national administrators, verifiers or other bodies subject to this Directive. ’

Amendment 560

Proposal for a directive

Article 1 — paragraph 1 — point 15 — point -a a (new)

Directive 2003/87/EC

Article 12 — paragraph 1a a (new)

Text proposed by the Commission

Amendment

(-aa)

the following paragraph is inserted:

‘1aa. By 1 July 2023, the Commission shall present a report to the European Parliament and to the Council in which it shall assess how a restriction of access to the European carbon emission allowance markets to regulated entities and financial intermediaries acting on their behalf, would impact on the integrity and effective functioning of the carbon emission allowance markets and on the achievement of the 2030 and 2050 Union energy and climate targets. Where the assessment is negative, the Commission shall, where appropriate, present a legislative proposal to adjust the relevant provisions in Article 12(1) and Article 19(2).’

Amendment 561

Proposal for a directive

Article 1 — paragraph 1 — point 15 — point c

Directive 2003/87/EC

Article 12 — paragraph 3 — subparagraphs 1 a (new) and 1 b (new)

Text proposed by the Commission	Amendment
	By way of derogation from the first subparagraph, point (c), until 31 December 2029, shipping companies may surrender fewer allowances on the basis of the ice class of their ships or the fact their ships navigate in ice conditions, or both, in accordance with Annex Va.
	By way of derogation from the first subparagraph, point (c), until 31 December 2029, shipping companies may surrender 55 % fewer allowances in respect of emissions that occur until 2030 from voyages between a port located in an outermost region of a Member State and a port located in the same Member State, including between two different ports located in different outermost regions of the same Member State. By 31 December 2027, the Commission shall assess, and present a report to the European Parliament and the Council on, the impact of ending this derogation for maritime transport to and from outermost regions.

Amendment 562

Proposal for a directive

Article 1 — paragraph 1 — point 15 — point e

Directive 2003/87/EC

Article 12 — paragraph 3b — subparagraph 1

Text proposed by the Commission	Amendment
An obligation to surrender allowances shall not arise in respect of emissions of greenhouse gases which are considered to have been captured and utilised to become permanently chemically bound in a product so that they do not enter the atmosphere under normal use.	An obligation to surrender allowances shall not arise in respect of emissions of greenhouse gases which are considered to have been captured and utilised to become permanently chemically bound in a product so that they do not enter the atmosphere under normal use and disposal .

Amendment 563

Proposal for a directive

Article 1 — paragraph 1 — point 15 — point e

Directive 2003/87/EC

Article 12 — paragraph 3b — subparagraph 2

Text proposed by the Commission	Amendment
The Commission shall adopt implementing acts concerning the requirements to consider that greenhouse gases have become permanently chemically bound in a product so that they do not enter the atmosphere under normal use.	The Commission shall adopt delegated acts in accordance with Article 23 to supplement this Directive by setting out the requirements to consider that greenhouse gases have become permanently chemically bound in a product so that they do not enter the atmosphere under normal use and disposal as referred to in the first subparagraph of this paragraph .

Amendment 564

Proposal for a directive

Article 1 — paragraph 1 — point 15 — point e

Directive 2003/87/EC

Article 12 — paragraph 3b — subparagraph 3

Text proposed by the Commission	Amendment
Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 22a(2).	deleted

Amendment 565

Proposal for a directive

Article 1 — paragraph 1 — point 15 — point e a (new)

Directive 2003/87/EC

Article 12 — paragraph 3b a (new)

Text proposed by the Commission

Amendment

(ea)	the following paragraph is inserted:

‘3ba. By 1 January 2025, the Commission shall present a report to the European Parliament and to the Council in which it shall examine how negative emissions resulting from greenhouse gases that are removed from the atmosphere and safely and permanently stored shall be accounted for and how these negative emissions can be covered by emissions trading, and in which it shall propose a clear scope and strict criteria and safeguards to ensure that such removals are not offsetting necessary emissions reductions in accordance with Union climate targets as laid down in Regulation (EU) 2021/1119. That report shall, where appropriate, be accompanied by a legislative proposal to cover negative emissions.’

Amendment 566

Proposal for a directive

Article 1 — paragraph 1 — point 15 — point e b (new)

Directive 2003/87/EC

Article 12 — paragraph 3b b (new)

Text proposed by the Commission

Amendment

(eb)	the following paragraph is inserted:

‘3bb. By 31 December 2029, the Commission shall present a report to the European Parliament and to the Council in which it shall examine whether all greenhouse gas emissions from the different activities covered by this Directive are effectively accounted for, at which stages of the process those greenhouse gas emissions are accounted for, and whether double counting has been avoided, in particular taking into account the downstream stages, including disposal and waste incineration, and export, and shall assess the comparative climate and economic benefits of accounting for the emissions from each activity at different stages of the process. The Commission may, where appropriate, accompany that report with a legislative proposal to amend this Directive to ensure that all emissions are accounted for at the most effective stage and that double counting is avoided.’

Amendment 567

Proposal for a directive

Article 1 — paragraph 1 — point 15 — point e c (new)

Directive 2003/87/EC

Article 12 — paragraph 3b c (new)

Text proposed by the Commission

Amendment

(ec)	the following paragraph is inserted:

‘3bc. By 1 January 2025, the Commission shall present a report to the European Parliament and to the Council in which it shall examine a transparent, comparable and reliable methodology for how to account for emissions of greenhouse gases which are considered to have been captured and utilised to become chemically bound in a product in a way other than that referred to in paragraph 3b, based on a life-cycle assessment of the product. The methodology for the life-cycle assessment of the product shall take into account the dual role of greenhouse gases as emissions and as feedstock, including the emissions captured in the manufacture of the product, the emissions produced as part of the capture and utilisation process, the emissions utilised in the manufacture of the product, and the number of years the carbon captured from the emissions is bound in the product. The Commission shall, where appropriate, accompany that report with a legislative proposal to amend this Directive to include such a life-cycle assessment approach.’

Amendment 568/rev

Proposal for a directive

Article 1 — paragraph 1 — point 15 — point e d (new)

Directive 2003/87/EC

Article 12 — paragraph 4

Present text

Amendment

(ed)	paragraph 4 is replaced by the following:

4. Member States shall take the necessary steps to ensure that allowances will be cancelled at any time at the request of the person holding them. In the event of closure of electricity generation capacity in their territory due to additional national measures, Member States may cancel allowances from the total quantity of allowances to be auctioned by them referred to in Article 10(2) up to an amount corresponding to the average verified emissions of the installation concerned over a period of five years preceding the closure. The Member State concerned shall inform the Commission of such intended cancellation in accordance with the delegated acts adopted pursuant to Article 10(4).

‘4. Member States shall take the necessary steps to ensure that allowances will be cancelled at any time at the request of the person holding them. In the event of closure of electricity generation capacity in their territory due to additional national measures, Member States shall cancel allowances from the total quantity of allowances to be auctioned by them referred to in Article 10(2) up to an amount corresponding to the average verified emissions of the installation concerned over a period of five years preceding the closure. The Member State concerned shall inform the Commission of such intended cancellation in accordance with the delegated acts adopted pursuant to Article 10(4).’

Amendment 569

Proposal for a directive

Article 1 — paragraph 1 — point 16

Directive 2003/87/EC

Article 14 — paragraph 1

Text proposed by the Commission

Amendment

(16)	in Article 14(1), first subparagraph, the following sentence is added :

(16)	in Article 14, paragraph 1 is replaced by the following:

‘1. The Commission shall adopt implementing acts concerning the detailed arrangements for the monitoring and reporting of emissions and, where relevant, activity data, from the activities listed in Annex I, for the monitoring and reporting of tonne-kilometre data for the purpose of an application under Article 3e or 3f, which shall be based on the principles for monitoring and reporting set out in Annex IV and the requirements set out in paragraph 2 of this Article. Those implementing acts shall also specify the global warming potential of each greenhouse gas in the requirements for monitoring and reporting emissions for that gas. Those implementing acts shall apply the sustainability and greenhouse gas emission saving criteria for the use of biomass established by Directive (EU) 2018/2001 of the European Parliament and of the Council (*), with any necessary adjustments for application under this Directive, for this biomass to be zero-rated. They shall specify how to account for storage of emissions from a mix of zero-rated sources and sources that are not zero-rated. They shall also specify how to account for emissions from renewable fuels of non-biological origin and recycled carbon fuels, ensuring that these emissions are accounted for and that double counting is avoided.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 22a(2).

‘1. The Commission shall adopt delegated acts in accordance with Article 23 to supplement this Directive concerning the detailed arrangements for the monitoring and reporting of emissions and, where relevant, activity data, from the activities listed in Annex I, for the monitoring and reporting of tonne-kilometre data for the purpose of an application under Article 3e or 3f, which shall be based on the principles for monitoring and reporting set out in Annex IV and the requirements set out in paragraph 2 of this Article. Those delegated acts shall also specify the global warming potential of each greenhouse gas in the requirements for monitoring and reporting emissions for that gas and be accompanied by a detailed impact assessment, taking into account the latest available science . Those delegated acts shall apply the sustainability and greenhouse gas emission saving criteria for the use of biomass established by Directive (EU) 2018/2001 of the European Parliament and of the Council (*), with any necessary adjustments for application under this Directive, for this biomass to be zero-rated. They shall specify how to account for storage of emissions from a mix of zero-rated sources and sources that are not zero-rated. They shall also specify how to account for emissions from renewable fuels of non-biological origin and recycled carbon fuels, ensuring that these emissions are accounted for and that double counting is avoided.

Amendment 570

Proposal for a directive

Article 1 — paragraph 1 — point 19 a (new)

Directive 2003/87/EC

Article 19 — paragraph 2

Present text

Amendment

(19a)

in Article 19, paragraph 2 is replaced by the following:

2. Any person may hold allowances. The registry shall be accessible to the public and shall contain separate accounts to record the allowances held by each person to whom and from whom allowances are issued or transferred.

‘2. Without prejudice to Article 12(1aa), besides the central and national administration accounts, only regulated entities with past, current, or predictable future EU ETS compliance obligations may hold allowances. The registry shall be accessible to the public and shall contain separate accounts to record the allowances held by each regulated entity to whom and from whom allowances are issued or transferred.’

Amendment 571

Proposal for a directive

Article 1 — paragraph 1 — point 19 b (new)

Directive 2003/87/EC

Article 23 — paragraph 2

Present text

Amendment

(19b)

in Article 23, paragraph 2 is replaced by the following:

2. The power to adopt delegated acts referred to in Articles 3d(3), 10(4), 10a(1) and (8), 10b(5), 19(3), Article 22, Articles 24(3), 24a(1), 25a(1) and Article 28c shall be conferred on the Commission for an indeterminate period of time from 8 April 2018.

‘2. The power to adopt delegated acts referred to in Article 3d(3), Article 3gaa(2), Article 3gab(7), Article 3gea, second paragraph, Article 10(4), Article 10a(1) and (8), Article 10b(5) , Article 12(3b), Article 14(1) , Article 19(3), Article 22, Article 24(3), Article 24a(1), Article 25a(1), Article 28c , Article 30c(2a) and Article 30f(4a) shall be conferred on the Commission for an indeterminate period of time from 8 April 2018.’

Amendment 572

Proposal for a directive

Article 1 — paragraph 1 — point 19 c (new)

Directive 2003/87/EC

Article 29a

Present text

Amendment

(19c)

Article 29a is replaced by the following:

Article 29a

‘Article 29a

Measures in the event of excessive price fluctuations

1. If, for more than six consecutive months, the allowance price is more than three times the average price of allowances during the two preceding years on the European carbon market, the Commission shall immediately convene a meeting of the Committee established by Article 9 of Decision No 280/2004/EC.

1. If, for more than six consecutive months, the average allowance price is more than twice the average price of allowances during the two preceding years on the European carbon market, the Commission shall immediately , and no later than seven days after that point in time, convene a meeting of the Committee established by Article 9 of Decision No 280/2004/EC to assess whether the price evolution referred to in this paragraph corresponds to changing market fundamentals.

2. If the price evolution referred to in paragraph 1 does not correspond to changing market fundamentals, one of the following measures may be adopted , taking into account the degree of price evolution:

2. If the price evolution referred to in paragraph 1 does not correspond to changing market fundamentals, any of the following measures shall be taken, as a matter of urgency , taking into account the degree of price evolution:

(-a)	the release of 100 million allowances covered by this Chapter from the market stability reserve in accordance with Article 1(7) of Decision (EU) 2015/1814, to be equally distributed within auctions during a period of six months;

(a)	a measure which allows Member States to bring forward the auctioning of a part of the quantity to be auctioned;

(a)	a measure which allows Member States to bring forward the auctioning of a part of the quantity to be auctioned in a subsequent calendar year;

(b)	a measure which allows Member States to auction up to 25 % of the remaining allowances in the new entrants reserve.

(b)	a measure which allows Member States to auction up to 25 % of the remaining allowances in the new entrants reserve.

Those measures shall be adopted in accordance with the management procedure referred to in Article 23(4).

3. Any measure shall take utmost account of the reports submitted by the Commission to the European Parliament and to the Council pursuant to Article 29, as well as any other relevant information provided by Member States.

4. The arrangements for the application of these provisions shall be laid down in the acts referred to in Article 10(4).

4. The arrangements for the application of these provisions shall be laid down in the acts referred to in Article 10(4).’

Amendment 573

Proposal for a directive

Article 1 — paragraph 1 — point 19 d (new)

Directive 2003/87/EC

Article 29a a (new)

Text proposed by the Commission

Amendment

(19d)

the following article is inserted:

‘Article 29aa

1. The access to the EU ETS market shall be limited to entities that are installations, aviation and maritime operators with compliance obligations under the EU ETS.

2. By way of derogation from paragraph 1, financial intermediaries purchasing allowances for the account of the installation and not for their own account shall have access to the EU ETS market.

3. The Commission shall assess whether Article 6(5) of Regulation (EU) No 1031/2010 (1a) is compatible with the provisions of this Article, and, where necessary, submit a legislative proposal to amend that Regulation.

Amendment 574

Proposal for a directive

Article 1 — paragraph 1 — point 19 e (new)

Directive 2003/87/EC

Article 30 — paragraph 1

Present text

Amendment

(19e)

in Article 30, paragraph 1 is replaced by the following:

1. This Directive shall be kept under review in the light of international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement.

‘1. This Directive shall be kept under review in the light of international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement , including the commitment taken at the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) to limit the temperature increase to 1,5 oC above pre-industrial levels.’

Amendment 575

Proposal for a directive

Article 1 — paragraph 1 — point 20 a (new)

Directive 2003/87/EC

Article 30 — paragraph 3

Present text

Amendment

(20a)

in Article 30, paragraph 3 is replaced by the following:

3. The Commission shall report to the European Parliament and to the Council in the context of each global stocktake agreed under the Paris Agreement, in particular with regard to the need for additional Union policies and measures in view of necessary greenhouse gas reductions by the Union and its Member States, including in relation to the linear factor referred to in Article 9. The Commission may make proposals to the European Parliament and to the Council to amend this Directive where appropriate.

‘3. The Commission , having sought the advice of the European Scientific Advisory Board on Climate Change, shall report to the European Parliament and to the Council in the context of each global stocktake agreed under the Paris Agreement, in particular with regard to the need for additional Union policies and measures in view of necessary greenhouse gas reductions by the Union and its Member States, including in relation to the linear factor referred to in Article 9. The Commission may make proposals to the European Parliament and to the Council to amend this Directive where appropriate. In its proposals, the Commission shall ensure compliance with the climate-neutrality objective as laid down in Article 2(1) of Regulation (EU) 2021/1119, the Union climate targets as laid down in Article 4 of that Regulation, and the indicative Union greenhouse gas budget for the 2030-2050 period as referred to in Article 4(4) of that Regulation. The proposals shall reflect progression over time, and reflect its highest possible ambition in accordance with Article 4(3) of the Paris Agreement.’

Amendment 576

Proposal for a directive

Article 1 — paragraph 1 — point 20 b (new)

Directive 2003/87/EC

Article 30 –paragraph 4 a (new)

Present text

Amendment

(20b)

in Article 30, the following paragraph is added:

‘4a. When reviewing this Directive, in accordance with paragraphs 1, 2 and 3 of this Article, the Commission shall analyse how linkages between the EU ETS and other carbon markets can be established, without impeding the achievement of the climate-neutrality objective and the Union climate targets as laid down in Regulation (EU) 2021/1119. ’

Amendment 577

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Chapter IVa — title

Text proposed by the Commission	Amendment
EMISSIONS TRADING SYSTEM FOR BUILDINGS AND ROAD TRANSPORT	EMISSIONS TRADING SYSTEM FOR BUILDINGS, ROAD TRANSPORT AND OTHER FUELS

Amendment 578

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30a — paragraph 1 a (new)

Text proposed by the Commission	Amendment
	1a. The provisions of this Chapter shall apply in respect of the release for consumption of fuels which are used for combustion in private road transport and private heating and cooling of residential buildings only from 1 January 2029 subject to the assessment provided for in paragraph 1b.

Amendment 579

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30a — paragraph 1 b (new)

Text proposed by the Commission

Amendment

1b. If the conditions are right, the Commission shall aim to extend this Chapter to emissions from private road transport and private heating and cooling of residential buildings from 1 January 2029.

By 1 January 2026, the Commission shall present a report to the European Parliament and the Council in which it shall assess the extension of this Chapter to emissions from private road transport and private heating and cooling of residential buildings from 1 January 2029 in a manner that leaves no one behind. In particular, that report shall include:

(a)	a detailed assessment of the evolution of energy and mobility poverty in the Union and in each Member State as reported in accordance with Article 23(1) of Regulation (EU) …/… [Social Climate Fund Regulation];

(b)

a detailed assessment of the results of the measures and investments included in the Member States’ Social Climate Plans, in particular as regards the number of people that were lifted out of energy and mobility poverty as a result of those measures and investments, and of other investments from other Union funds;

(c)	a detailed analysis and quantification of the additional greenhouse gas emissions reduction that could be achieved through this extension, as well as the progress of Member States toward the achievement of the targets set out in Regulation (EU) 2018/842;

(d)	an assessment of the feasibility and modalities of the cost pass-on reporting and limit mechanism set out in Article 30f(2a).

Based on the results of that report, the Commission shall, where appropriate, present a targeted review of this Directive and of Regulation (EU) …/… [Social Climate Fund Regulation] to extend this Chapter to emissions from private road transport and private heating and cooling of residential buildings from 1 January 2029.

Amendment 580

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30a — paragraph 1 c (new)

Text proposed by the Commission

Amendment

1c. A Member State may decide that the derogation in respect of fuels which are used for combustion in private road transport and private heating and cooling of residential buildings referred to in paragraph 1a shall not apply within its territory, provided that it has sufficient programmes in place to support low income households and to address energy and mobility poverty and subject to approval by the Commission. The Member State concerned shall inform the Commission if it intends to take such a decision. The Commission shall assess whether the Member State has sufficient programmes in place for those purposes and inform the Member State of its decision.

Amendment 581

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30a a (new)

Text proposed by the Commission

Amendment

Article 30aa

1. Where, in the six consecutive months preceding the year of the start of auctioning of allowances for fuels which are used for combustion in private road transport and private heating and cooling of residential buildings in accordance with Article 30a(1a), the average price of the fuels for consumption in the sectors covered by this Chapter is more than the average price of such fuels in March 2022 the deadline for surrendering allowances in respect of fuels which are used for combustion in private road transport and private heating and cooling of residential buildings, referred to in Article 30d(1), shall be extended until the price goes below that threshold.

By way of derogation from the first subparagraph, in the event that the Social Climate Fund established by Regulation (EU) …/… [Social Climate Fund Regulation] has not commenced operating, or has operated for less than three years, the auctioning of allowances covered by this Chapter shall be delayed until the Social ClimateFund has been operational for at least three years.

2. If applicable, the Commission shall publish that the conditions set out in paragraph 1 are met before the start of the auctions under this Chapter.

Amendment 582

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30b — paragraph 1

Text proposed by the Commission	Amendment
1. Member States shall ensure that, from 1 January 2025 , no regulated entity carries out the activity referred to in Annex III unless that regulated entity holds a permit issued by a competent authority in accordance with paragraphs 2 and 3.	1. Member States shall ensure that, from 1 January 2024 , no regulated entity carries out the activity referred to in Annex III unless that regulated entity holds a permit issued by a competent authority in accordance with paragraphs 2 and 3.

Amendment 583

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30c — paragraph 1

Text proposed by the Commission

Amendment

1. The Union-wide quantity of allowances issued under this Chapter each year from 2026 shall decrease in a linear manner beginning in 2024. The 2024 value shall be defined as the 2024 emissions limits, calculated on the basis of the reference emissions under Article 4(2) of Regulation (EU) 2018/842 of the European Parliament and of the Council (*) for the sectors covered by this Chapter and applying the linear reduction trajectory for all emissions within the scope of that Regulation. The quantity shall decrease each year after 2024 by a linear reduction factor of 5,15 %. By 1 January 2024, the Commission shall publish the Union-wide quantity of allowances for the year 2026 .

1. The Union-wide quantity of allowances issued under this Chapter each year from 2025 shall decrease in a linear manner beginning in 2024. The 2024 value shall be defined as the 2024 emissions limits, calculated on the basis of the reference emissions under Article 4(2) of Regulation (EU) 2018/842 for the sectors covered by this Chapter and applying the linear reduction trajectory for all emissions within the scope of that Regulation. The quantity shall decrease each year after 2024 by a linear reduction factor of 5,15 %. By 1 January 2024, the Commission shall publish the Union-wide quantity of allowances for the year 2025 .

Amendment 584

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30c — paragraph 2 a (new)

Text proposed by the Commission

Amendment

2a. The Commission is empowered to adopt delegated acts in accordance with Article 23 to supplement this Directive by setting out an additional amount of allowances to be issued for each year from 2025 onwards to compensate for allowances surrendered in cases where there was double counting of emissions, notwithstanding rules to avoid such double counting as referred to in Article 30f(4). The additional amount of allowances set by the Commission shall correspond to the total amount of greenhouse gas emissions compensated for in the relevant reporting year pursuant to the delegated acts referred to in Article 30f(4a).

Amendment 585

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30d — paragraph 1

Text proposed by the Commission	Amendment
1. From 2026 , allowances covered by this Chapter shall be auctioned, unless they are placed in the Market Stability Reserve established by Decision (EU) 2015/1814. The allowances covered by this Chapter shall be auctioned separately from the allowances covered by Chapters II, IIa and III.	1. From 2025 , allowances covered by this Chapter shall be auctioned, unless they are placed in the Market Stability Reserve established by Decision (EU) 2015/1814. The allowances covered by this Chapter shall be auctioned separately from the allowances covered by Chapters II, IIa and III.

Amendment 586

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30d — paragraph 2 — subparagraph 1

Text proposed by the Commission

Amendment

The auctioning of the allowances under this Chapter shall start in 2026 with a volume corresponding to 130 % of the auction volumes for 2026 established on the basis of the Union-wide quantity of allowances for that year and the respective auction shares and volumes pursuant to paragraph 3, 5 and 6. The additional volumes to be auctioned shall only be used for surrendering allowances pursuant to Article 30e(2) and be deducted from the auction volumes for the period from 2028 to 2030. The conditions for these early auctions shall be set in accordance with paragraph 7 and Article 10(4).

The auctioning of the allowances under this Chapter shall start in 2025 with a volume corresponding to 130 % of the auction volumes for 2025 established on the basis of the Union-wide quantity of allowances for that year and the respective auction shares and volumes pursuant to paragraph 3, 5 and 6. The additional volumes to be auctioned shall only be used for surrendering allowances pursuant to Article 30e(2) and be deducted from the auction volumes for the period from 2028 to 2030. The conditions for these early auctions shall be set in accordance with paragraph 7 and Article 10(4).

Amendment 587

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30d — paragraph 2 — subparagraph 2

Text proposed by the Commission	Amendment
In 2026 , 600 million allowances covered by this Chapter are created as holdings in the Market Stability Reserve pursuant to Article 1a(3) of Decision (EU) 2015/1814.	In 2025 , 600 million allowances covered by this Chapter are created as holdings in the Market Stability Reserve pursuant to Article 1a(3) of Decision (EU) 2015/1814.

Amendment 588

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30d — paragraph 3

Text proposed by the Commission

Amendment

3. 150 million allowances issued under this Chapter shall be auctioned and all revenues from these auctions made available for the Innovation Fund established under Article 10a(8) . Article 10a(8) shall apply to the allowances referred to in this paragraph .

3. 150 million allowances issued under this Chapter shall be auctioned and all revenues from these auctions made available for the Social Climate Fund established under Regulation (EU) …/… [Social Climate Fund Regulation] as external assigned revenue in accordance with Article 21(5) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (*) , and shall be used in accordance with the rules applicable to the Social Climate Fund .

Amendment 589

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30d — paragraph 3 a (new)

Text proposed by the Commission

Amendment

3a. In order to ensure that the available appropriations for the Social Climate Fund in the Union budget can evolve in close alignment with the carbon price and thus the burden for vulnerable households and traffic users, a Carbon Price Fluctuation Adjustment Mechanism shall enable annual reinforcements. The detailed provisions are to be provided for in the Multiannual Financial Framework Regulation, which, in accordance with Article 312 TFEU, shall ensure that the relevant expenditure ceilings are adjusted automatically each year in function of the rate of change of the carbon price under the EU ETS for buildings, road transport and other fuels. The budgetary impact of the annual adjustment shall be budgeted.

Amendment 590

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30d — paragraph 5 — subparagraph 1 — introductory part

Text proposed by the Commission

Amendment

5. Member States shall determine the use of revenues generated from the auctioning of allowances referred to in paragraph 4, except for the revenues established as own resources in accordance with Article 311(3) TFEU and entered in the Union budget. Member States shall use their revenues for one or more of the activities referred to in Article 10(3) or for one or more of the following :

5. Member States shall determine the use of revenues generated from the auctioning of allowances referred to in paragraph 4, except for the revenues established as own resources in accordance with Article 311(3) TFEU and entered in the Union budget as general income . Member States shall use their revenues first for the national co-financing of their Social Climate Plans and, for any remaining revenue, for social climate measures and investments in accordance with Article 6 of Regulation (EU) … /… [Social Climate Fund Regulation] :

Amendment 591

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30d — paragraph 5 — subparagraph 1 — point a

Text proposed by the Commission

Amendment

(a)

measures intended to contribute to the decarbonisation of heating and cooling of buildings or to the reduction of the energy needs of buildings , including the integration of renewable energies and related measures according to Articles 7(11), 12 and 20 of Directive 2012/27/EU [references to be updated with the revised Directive], as well as measures to provide financial support for low-income households in worst-performing buildings;

(a)	measures intended to contribute to the climate neutrality of heating and cooling of buildings or to the reduction of the energy needs of buildings in accordance with Article 6 of Regulation (EU) …/… [Social Climate Fund Regulation];

Amendment 592

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30d — paragraph 5 — subparagraph 1 — point b

Text proposed by the Commission

Amendment

(b)

measures intended to accelerate the uptake of zero-emission vehicles or to provide financial support for the deployment of fully interoperable refuelling and recharging infrastructure for zero-emission vehicles or measures to encourage a shift to public forms of transport and improve multimodality , or to provide financial support in order to address social aspects concerning low and middle-income transport users.

(b)

measures intended to accelerate the uptake of zero-emission vehicles or to provide financial support for the deployment of fully interoperable refuelling and recharging infrastructure for zero-emission vehicles or measures to encourage a shift to public forms of transport and improve multimodality in accordance with Article 6 of Regulation (EU) …/… [ Social Climate Fund Regulation].

Amendment 593

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30e — paragraph 2

Text proposed by the Commission

Amendment

2. From 1 January 2027 , Member States shall ensure that, by 30 April each year, the regulated entity surrenders a number of allowances covered by this Chapter, that is equal to the total emissions, corresponding to the quantity of fuels released for consumption pursuant to Annex III, during the preceding calendar year as verified in accordance with Articles 15 and 30f, and that those allowances are subsequently cancelled.

2. From 1 January 2026 , Member States shall ensure that, by 30 April each year, the regulated entity surrenders a number of allowances covered by this Chapter, that is equal to the total emissions, corresponding to the quantity of fuels released for consumption pursuant to Annex III, during the preceding calendar year as verified in accordance with Articles 15 and 30f, and that those allowances are subsequently cancelled.

Amendment 594

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30f — paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall ensure that each regulated entity monitors for each calendar year as from 2025 the emissions corresponding to the quantities of fuels released for consumption pursuant to Annex III. They shall also ensure that each regulated entity reports these emissions to the competent authority in the following year, starting in 2026 , in accordance with the acts referred to in Article 14(1).

2. Member States shall ensure that each regulated entity monitors for each calendar year as from 2024 the emissions corresponding to the quantities of fuels released for consumption pursuant to Annex III. They shall also ensure that each regulated entity reports these emissions to the competent authority in the following year, starting in 2025 , in accordance with the acts referred to in Article 14(1).

Amendment 595

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30f — paragraph 2 a (new)

Text proposed by the Commission	Amendment
	2a. Subject to the assessment in Article 30a(1b), second subparagraph, point (d), from … [one year before the date of application of this Chapter in respect of fuels which are used for combustion in private road transport and private heating and cooling of residential buildings] and every month thereafter, regulated entities shall report to the Commission a breakdown of the costs going into the retail price of the fuels released for consumption pursuant to Annex III, including in particular the share of national taxes and fees and costs related to the surrender of allowances in the retail price, as well as the percentage of the costs related to the surrender of allowances which is passed on to the end consumer. Where this percentage changes by more than 5 % points compared to the last reporting period, an explanation shall be provided.
	By … [the date of entry into force of this Chapter], the Commission shall adopt an implementing act setting out the reporting categories and format to be used for reporting in accordance with the first subparagraph of this paragraph. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 22a(2).
	From … [the date of application of this Chapter in respect of fuels which are used for combustion in private road transport and private heating and cooling of residential buildings] or, if a Member State in accordance with Article 30a(1c) has decided that the derogation referred to in paragraph 1a of that Article does not apply, from … [the date of entry into force of this Chapter], regulated entities shall not pass on more than 50 % of the costs related to the surrender of allowances for fuels released for consumption pursuant to Annex III to the final consumer.
	Where the Commission finds that a regulated entity has passed on a share of costs higher than 50 %, that entity shall pay a penalty in accordance with Article 16 of this Directive. The penalty amount shall be calculated on the basis of the quantity of allowances equivalent to the excess pass through in accordance with this paragraph, multiplied by the highest recorded primary or secondary market settlement price for allowances under this Chapter in the preceding year. Each year by 28 February, the Commission shall communicate the excess pass through penalty price. The revenues generated from penalties referred to in this subparagraph shall be allocated to the Social Climate Fund referred to in Regulation (EU) … /… [Social Climate Fund Regulation].

Amendment 596

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30f — paragraph 4

Text proposed by the Commission	Amendment
4. Member States shall ensure that the regulated entities are able to identify and document reliably and accurately per type of fuel, the precise volumes of fuel released for consumption which are used for combustion in the buildings and road transport sectors as identified in Annex III, and the final use of the fuels released for consumption by the regulated entities. The Member States shall take appropriate measures to avoid any risk of double counting of emissions covered under this Chapter and the emissions under Chapters II, IIa and III. Detailed rules for avoiding double counting shall be adopted in accordance with Article 14(1).	4. Member States shall ensure that the regulated entities are able to identify and document reliably and accurately per type of fuel, the precise volumes of fuel released for consumption pursuant to Annex III, and the final use of the fuels released for consumption by the regulated entities. The Member States shall take appropriate measures to avoid any risk of double counting of emissions covered under this Chapter and the emissions under Chapters II, IIa and III. Detailed and harmonised rules for avoiding double counting shall be adopted in accordance with Article 14(1).
	(This amendment in relation to ‘fuel released for consumption which are used for combustion in the buildings and road transport sectors as identified in Annex III’ applies throughout the text. Adopting it will necessitate corresponding changes throughout.)

Amendment 597

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30f — paragraph 4 a (new)

Text proposed by the Commission

Amendment

4a. The Commission is empowered to adopt delegated acts in accordance with Article 23 to supplement this Directive by setting out the Union-wide and fully harmonised rules regarding compensation of costs arising from double counting for operators of installations pursuant to Article 3e that are incurred from costs passed on in fuel prices concerning emissions from the combustion of fuels, and provided that those emissions are reported by the operator pursuant to Article 14 as well as the regulated entity pursuant to this Article, and that the double counting is not avoided pursuant to paragraph 4 of this Article. The calculation of the compensation amount shall be based on the average price of allowances auctioned pursuant to Article 30d(4) in the reporting year concerned pursuant to this Article. The revenues generated from the auctioning of allowances covered by this Chapter shall, to the extent necessary and up to a level corresponding to the double counting in the reporting year pursuant to this Article, be used for the compensation amount.

Amendment 598

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30h — paragraph 2 a (new)

Text proposed by the Commission	Amendment
	2a. Where, prior to 1 January 2030, every time the average price of allowances referred to in paragraph 1 of this Article exceeds a price cap of 50 EUR, the Commission shall, as a matter of urgency, adopt a decision to release 10 million allowances covered by this Chapter from the market stability reserve in accordance with Article 1a(7) of Decision (EU) 2015/1814.
	Where, prior to 1 January 2030, the average price of allowances referred to in paragraph 1 exceeds 45 EUR, the Commission and Member States shall, as a matter of urgency, take further measures to reduce carbon dioxide emissions in order to avoid reaching the price cap referred to in the first subparagraph of this paragraph.
	In the event of application of paragraph 1 or 2, the application of this paragraph shall be suspended during that period.

Amendment 599

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30i — paragraph 1

Text proposed by the Commission

Amendment

By 1 January 2028, the Commission shall report to the European Parliament and to the Council on the implementation of the provisions of this Chapter with regard to their effectiveness, administration and practical application, including on the application of the rules under Decision (EU) 2015/1814 and use of allowances of this Chapter to meet compliance obligations of the compliance entities covered by Chapters II, IIa and III. Where appropriate, the Commission shall accompany this report with a proposal to the European Parliament and to the Council to amend this Chapter. By 1 January 2029, the Commission shall present a report to the European Parliament and to the Council in which it assesses whether the price cap referred to in Article 30h(2a), first subparagraph, has been effective and whether it should be continued. The Commission shall, where appropriate, accompany that report with a legislative proposal to the European Parliament and to the Council to amend this Directive to adjust that price cap, in due time for it to apply from 1 January 2030. By 31 October 2031 the Commission should assess the feasibility of integrating the sectors covered by Annex III in the Emissions Trading System covering the sectors listed in annex 1 of Directive 2003/87/EC.

Amendment 600

Proposal for a directive

Article 1 — paragraph 1 — point 21

Directive 2003/87/EC

Article 30i — paragraph 1 a (new)

Text proposed by the Commission	Amendment
	The Commission shall consider possible amendments to this Directive with regard to regulatory simplification. The Commission and the competent authorities shall continuously adapt to best practice administrative procedures and take all measures to simplify the enforcement of this Directive, keeping administrative burdens to a minimum.

Amendment 601

Proposal for a directive

Article 1 — paragraph 1 — point 21 a (new)

Directive 2003/87/EC

Article 30i a (new)

Text proposed by the Commission

Amendment

(21a)

the following article is inserted:

‘Article 30ia

Sectoral roadmaps

1. By 1 January 2025, the Commission, supported by the European Scientific Advisory Board on Climate Change, shall publish indicative roadmaps for the activities covered by Annex I to this Directive towards achieving the Union’s climate-neutrality objective by 2050, at the latest, and the aim to achieve negative emissions thereafter as laid down in Article 2(1) of Regulation (EU) 2021/1119.

2. The Commission shall engage closely with stakeholders, including individuals, civil society, social partners, academia, policy makers and sectors and subsectors affected by this Directive, while preparing the roadmaps provided for in paragraph 1.

3. Every four years after the publication of the roadmaps provided for in paragraph 1, the Commission shall update those roadmaps in accordance with the latest scientific knowledge, while engaging closely with stakeholders as referred to in paragraph 2.

4. All data used to produce the sectoral roadmaps provided for in paragraph 1, and for their updates pursuant to paragraph 3, shall be made available to the public, in an easily accessible form.’;

Amendment 602

Proposal for a directive

Article 1 — paragraph 1 — point 21 b (new)

Directive 2003/87/EC

Article 30i b (new)

Text proposed by the Commission

Amendment

(21b)

the following article is inserted:

‘Article 30ib

Scientific advice regarding EU ETS sectors

The European Scientific Advisory Board on Climate Change may, on its own initiative, provide scientific advice and issue reports regarding this Directive, and its consistency with the climate objectives of Regulation (EU) 2021/1119 and the Paris Agreement, in particular with a view to delivering a just transition and informing any subsequent revision of this Directive. All advice presented by the European Scientific Advisory Board on Climate Change pursuant to this Article shall be made public, in an easily accessible form. The Commission shall take due account of advice of the European Scientific Advisory Board on Climate Change and publicly justify the reasons for disregarding it.’;

Amendment 603

Proposal for a directive

Article 1 — paragraph 1 — point 21 c (new)

Directive 2003/87/EC

Chapter IVa a (new) — Articles 30i c (new) and 30i d (new)

Text proposed by the Commission

Amendment

(21c)

the following chapter is inserted after Article 30ib:

‘CHAPTER IVaa

Visibility of financial support from EU ETS revenues

Article 30ic

Visibility of financial support from national EU ETS revenues

1. Member States shall ensure the visibility of funding from EU ETS revenues in all operations referred to in Article 10(3), Article 10a(6) and Article 30d(5).

2. Member States shall ensure the visibility of the financial support to the final beneficiaries and the public by:

(a)

displaying an appropriate label that reads “funded by the European Union (EU Emissions Trading System)”, as well as the emblem of the Union and the amount of funding, on documents and communication material relating to the implementation of the operation intended for the final beneficiaries or for the public and, for operations involving physical investment or equipment, clearly visible and durable plaques or billboards;

(b)	providing on their official website and social media sites, where such sites exist, a short description of the operation, including its aims and results, and highlighting the financial support from the EU ETS revenues.

3. The Commission shall take all measures necessary to ensure that the rules under paragraphs 1 and 2 are implemented. The penalties provided for shall be effective, proportionate and dissuasive.

Article 30id

Visibility of financial support from Union EU ETS revenues

1. The Commission shall ensure the visibility of funding from EU ETS revenues in all operations referred to in Article 10a(8) (Climate Investment Fund), Article 10d (Modernisation Fund) and Article 3gab (Ocean Fund) of this Directive and in Regulation (EU) …/… [Social Climate Fund Regulation].

2. The beneficiaries shall acknowledge financial support from the funds referred to in paragraph 1 and the origin of those funds by:

(a)

displaying an appropriate label that reads “funded by the European Union (EU Emissions Trading System — [relevant fund])”, as well as the emblem of the Union and the amount of funding, on documents and communication material relating to the implementation of the operation intended for the final beneficiaries or for the public and, for operations involving physical investment or equipment, clearly visible and durable plaques or billboards;

(b)	providing on their official website and social media sites, where such sites exist, a short description of the operation, including its aims and results, and highlighting the financial support from the relevant fund and EU ETS revenues.

3. The Commission shall take all measures necessary to ensure that the rules under paragraphs 1 and 2 are implemented. The penalties provided for shall be effective, proportionate and dissuasive.’

Amendment 604

Proposal for a directive

Article 1 — paragraph 1 — point 21 d (new)

Directive 2003/87/EC

Article 30i e (new)

Text proposed by the Commission

Amendment

(21d)

the following article is inserted:

‘Article 30ie

Report on developing countries’ decarbonisation needs

By 31 December 2023, the Commission shall submit a report to the European Parliament and to the Council on the decarbonisation needs of developing countries. That report shall contain:

(a)	an assessment of developing countries’ greenhouse gas emissions per country;

(b)	an indication of the main sources of emissions per country, indicating, where possible, the share of emissions attributable to EU ETS and non-EU ETS sectors;

(c)	an indication of the possible decarbonisation pathways for each country;

(d)	each country’s nationally determined contributions under the Paris Agreement.’;

Amendment 605

Proposal for a directive

Article 1 — paragraph 1 — point 1 — point c

Decision (EU) 2015/1814

Article 1 — paragraph 5 — subparagraph 1

Text proposed by the Commission

Amendment

In any given year, if the total number of allowances in circulation is between 833 million and 1 096 million, a number of allowances equal to the difference between the total number of allowances in circulation, as set out in the most recent publication as referred to in paragraph 4 of this Article, and 833 million, shall be deducted from the volume of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC and shall be placed in the reserve over a period of 12 months beginning on 1 September of that year. If the total number of allowances in circulation is above 1 096 million allowances, the number of allowances to be deducted from the volume of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC and to be placed in the reserve over a period of 12 months beginning on 1 September of that year shall be equal to 12 % of the total number of allowances in circulation. By way of derogation from the last sentence, until 31 December 2030, the percentage shall be doubled.

In any given year, if the total number of allowances in circulation is between 700 million and 921 million, a number of allowances equal to the difference between the total number of allowances in circulation, as set out in the most recent publication as referred to in paragraph 4 of this Article, and 700 million, shall be deducted from the volume of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC and shall be placed in the reserve over a period of 12 months beginning on 1 September of that year. If the total number of allowances in circulation is above 921 million allowances, the number of allowances to be deducted from the volume of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC and to be placed in the reserve over a period of 12 months beginning on 1 September of that year shall be equal to 12 % of the total number of allowances in circulation. By way of derogation from the last sentence, until 31 December 2030, the percentage shall be doubled. As from 2025, the thresholds referred to in this subparagraph shall be reduced in proportion to the reduction of the Union-wide quantity of allowances referred to in Article 9 of Directive 2003/87/EC in the same year.

Amendment 606

Proposal for a directive

Article 2 — paragraph 1 — point 2 a (new)

Decision (EU) 2015/1814

Article 3 — paragraph 1

Present text

Amendment

(2a)	in Article 3, paragraph 1 is replaced by the following:

The Commission shall monitor the functioning of the reserve in the context of the report provided for in Article 10(5) of Directive 2003/87/EC. That report should consider relevant effects on competitiveness, in particular in the industrial sector, including in relation to GDP, employment and investment indicators. Within three years of the start of the operation of the reserve and at five-year intervals thereafter, the Commission shall, on the basis of an analysis of the orderly functioning of the European carbon market, review the reserve and submit a proposal, where appropriate, to the European Parliament and to the Council. Each review shall pay particular attention to the percentage figure for the determination of the number of allowances to be placed in the reserve pursuant to Article 1(5) of this Decision, as well as the numerical value of the threshold for the total number of allowances in circulation and the number of allowances to be released from the reserve pursuant to Article 1(6) or (7) of this Decision. In its review, the Commission shall also look into the impact of the reserve on growth, jobs, the Union's industrial competitiveness and on the risk of carbon leakage.

‘The Commission , supported by the European Scientific Advisory Board on Climate Change referred to in Article 3 of Regulation (EU) 2021/1119, shall monitor the functioning of the reserve in the context of the report provided for in Article 10(5) of Directive 2003/87/EC. That report should consider relevant effects on achieving the climate-neutrality objective and the Union climate targets as laid down in Regulation (EU) 2021/1119 and on meeting the obligations of the Union and its Members States under the Paris Agreement, competitiveness, in particular in the industrial sector, including in relation to GDP, employment, investment indicators and the objective of delivering a just transition that leaves no one behind . Within three years of the start of the operation of the reserve and at five-year intervals thereafter, the Commission shall, on the basis of an analysis of the orderly functioning of the European carbon market, review the reserve and submit a proposal, where appropriate, to the European Parliament and to the Council. Each review shall pay particular attention to the percentage figure for the determination of the number of allowances to be placed in the reserve pursuant to Article 1(5) of this Decision, as well as the numerical value of the threshold for the total number of allowances in circulation, the number of allowances to be released from the reserve pursuant to Article 1(6) or (7) of this Decision and other relevant development options for the market stability reserve . In its review, the Commission and the European Scientific Advisory Board on Climate Change shall also look into the impact of the reserve on growth, jobs, the Union's industrial competitiveness and on the risk of carbon leakage.’

Amendment 607

Proposal for a directive

Article 3 — paragraph 1 — point - 1 (new)

Regulation (EU) 2015/757

Title

Present text

Amendment

(-1)	the title is replaced by the following:

Regulation (EU) 2015/757 of the European Parliament and of the Council of 29 April 2015 on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and amending Directive 2009/16/EC

‘Regulation (EU) 2015/757 of the European Parliament and of the Council of 29 April 2015 on the monitoring, reporting and verification of greenhouse gas emissions from maritime transport, and amending Directive 2009/16/EC.’

Amendment 608

Proposal for a directive

Article 3 — paragraph 1 — point - 1 a (new)

Text proposed by the Commission

Amendment

(-1a)

throughout the Regulation, except in the cases referred to in Article 5(1) of and Annex I to the Regulation, the term ‘CO2’ is replaced by ‘greenhouse gas’ and any necessary grammatical changes are made;

Amendment 609

Proposal for a directive

Article 3 — paragraph 1 — point - 1 b (new)

Regulation (EU) 2015/757

Article 1

Present text

Amendment

(-1b)

Article 1 is replaced by the following:

Article 1

‘Article 1

Subject matter

This Regulation lays down rules for the accurate monitoring, reporting and verification of carbon dioxide (CO2) emissions and of other relevant information from ships arriving at, within or departing from ports under the jurisdiction of a Member State, in order to promote the reduction of CO2 emissions from maritime transport in a cost effective manner.

This Regulation lays down rules for the accurate monitoring, reporting and verification of greenhouse gas emissions and of other relevant information from ships arriving at, within or departing from ports under the jurisdiction of a Member State, in order to promote the reduction of such emissions from maritime transport in a cost effective manner.’

(This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)

Amendment 610

Proposal for a directive

Article 3 — paragraph 1 — point - 1 c (new)

Regulation (EU) 2015/757

Article 2 — paragraph 1

Present text

Amendment

(-1c)

in Article 2, paragraph 1 is replaced by the following:

1. This Regulation applies to ships above 5 000 gross tonnage in respect of CO2 emissions released during their voyages from their last port of call to a port of call under the jurisdiction of a Member State and from a port of call under the jurisdiction of a Member State to their next port of call, as well as within ports of call under the jurisdiction of a Member State.

‘1. This Regulation applies to ships of 5 000 gross tonnage and above in respect of greenhouse gas emissions released during their voyages from their last port of call to a port of call under the jurisdiction of a Member State and from a port of call under the jurisdiction of a Member State to their next port of call, as well as within ports of call under the jurisdiction of a Member State.

1a. From 1 January 2024, this Regulation shall apply to ships of 400 gross tonnage and above in respect of greenhouse gas emissions released during their voyages from their last port of call to a port of call under the jurisdiction of a Member State and from a port of call under the jurisdiction of a Member State to their next port of call, as well as within ports of call under the jurisdiction of a Member State. However, ships of 400 gross tonnage and above but of less than 5 000 gross tonnage shall only be required to report the information which is relevant for the inclusion of such ships within the scope of the EU ETS from 1 January 2027. ’

Amendment 611

Proposal for a directive

Article 3 — paragraph 1 — point - 1 d (new)

Regulation (EU) 2015/757

Article 2 — paragraph 2

Present text

Amendment

(-1d)

in Article 2, paragraph 2 is replaced by the following:

2. This Regulation does not apply to warships, naval auxiliaries, fish-catching or fish-processing ships, wooden ships of a primitive build, ships not propelled by mechanical means , or government ships used for non-commercial purposes.

‘2. This Regulation does not apply to warships, naval auxiliaries, fish-catching or fish-processing ships, wooden ships of a primitive build, ships not propelled by mechanical means, government ships used for non-commercial purposes or ships for civil protection and search and rescue purposes .’

Amendment 612

Proposal for a directive

Article 3 — paragraph 1 — point - 1 e (new)

Regulation (EU) 2015/757

Article 3 — paragraph 1 — point a

Present text

Amendment

(-1e)

in Article 3, point (a) is replaced by the following:

(a)	‘CO2 emissions’ means the release of CO2 into the atmosphere by ships ;

‘(a)	“ greenhouse gas emissions” means the release of carbon dioxide ( CO2 ), methane (CH4) and nitrous oxides (N2O) into the atmosphere;’

Amendment 613

Proposal for a directive

Article 3 — paragraph 1 — point - 1 f (new)

Regulation (EU) 2015/757

Article 3 — paragraph 1 — point b

Present text

Amendment

(-1f)

in Article 3, point (b) is replaced by the following:

(b)

‘port of call’ means the port where a ship stops to load or unload cargo or to embark or disembark passengers; consequently, stops for the sole purposes of refuelling, obtaining supplies, relieving the crew, going into dry-dock or making repairs to the ship and/or its equipment, stops in port because the ship is in need of assistance or in distress, ship-to-ship transfers carried out outside ports, and stops for the sole purpose of taking shelter from adverse weather or rendered necessary by search and rescue activities are excluded;

‘(b)

“port of call” means the port where a ship stops to load or unload cargo or to embark or disembark passengers; consequently, stops for the sole purposes of refuelling, obtaining supplies, relieving the crew, going into dry-dock or making repairs to the ship and/or its equipment, stops in port because the ship is in need of assistance or in distress, ship-to-ship transfers carried out outside ports, stops in a non-EU transhipment port and stops for the sole purpose of taking shelter from adverse weather or rendered necessary by search and rescue activities are excluded from this definition ;’

Amendment 614

Proposal for a directive

Article 3 — paragraph 1 — point - 1 g (new)

Regulation (EU) 2015/757

Article 3 — paragraph 1 — point c

Present text

Amendment

(-1g)

in Article 3, point (c) is replaced by the following:

(c)	‘voyage’ means any movement of a ship that originates from or terminates in a port of call and that serves the purpose of transporting passengers or cargo for commercial purposes;

‘(c)

“voyage” means any movement of a ship that originates from or terminates in a port of call or structure situated on the continental shelf of a Member State, such as offshore supply services, and that serves the purpose of transporting passengers or cargo for commercial purposes or performing service activities for offshore installations ;’

Amendment 615

Proposal for a directive

Article 3 — paragraph 1 — point 3 a (new)

Regulation (EU) 2015/757

Article 5 — paragraph 2 a (new)

Text proposed by the Commission

Amendment

(3a)	in Article 5, the following paragraph is added:

‘2a. By 1 July 2023, the Commission shall adopt delegated acts in accordance with Article 23 to supplement this Regulation by specifying the methods for determining and reporting greenhouse gas emissions other than CO2. Such methods shall be based on the same principles as the methods for monitoring CO2 emissions as set out in Annex I, with the adjustments necessary due to the nature of the relevant greenhouse gas emissions.’

Amendment 616

Proposal for a directive

Article 3 — paragraph 1 — point 4 — point -a (new)

Regulation (EU) 2015/757

Article 6 — paragraph 4

Present text

Amendment

(-a)	paragraph 4 is replaced by the following:

4. The monitoring plan may also contain information on the ice class of the ship and/or the procedures, responsibilities, formulae and data sources for determining and recording the distance travelled and the time spent at sea when navigating through ice.

‘4. For shipping companies that wish to surrender fewer emission allowances on the basis of their ships’ ice class or navigation in ice conditions or both under Directive 2003/87/EC, the monitoring plan shall also contain information on the ice class of the ship and/or the procedures, responsibilities, formulae and data sources for determining and recording the distance travelled and the time spent at sea when navigating through ice.’

Amendment 617

Proposal for a directive

Article 3 — paragraph 1 — point 5 a (new)

Regulation (EU) 2015/757

Article 9 — paragraph 1 — subparagraph 2

Present text

Amendment

(5a)	in Article 9(1), the second subparagraph is replaced by the following:

Companies may also monitor information relating to the ship's ice class and to navigation through ic e , where applicable.

‘Companies may also monitor information relating to the ship's ice class and to navigation in ice conditions , where applicable. For shipping companies that wish to surrender fewer emission allowances on the basis of their ships’ ice class or navigation in ice conditions or both under Directive 2003/87/EC, monitoring shall include information on whether the voyage involved navigation in ice conditions, including information on the date, time, and location of the navigation in ice conditions, the method used to measure fuel oil consumption, fuel consumption and the fuel’s emission factor for each type of fuel when navigating in ice conditions, and the distance travelled when navigating in ice conditions. Information on whether the voyage occurs between ports under the jurisdiction of a Member State, departs from a port under the jurisdiction of a Member State or arrives in a port under the jurisdiction of a Member State shall also be provided. ’

Amendment 618

Proposal for a directive

Article 3 — paragraph 1 — point 6 a (new)

Regulation (EU) 2015/757

Article 10 — paragraph 2

Present text

Amendment

(6a)	in Article 10, the second paragraph is replaced by the following:

Companies may monitor information relating to the ship's ice class and to navigation through ice, where applicable.

‘Companies may monitor information relating to the ship's ice class and to navigation through ice, where applicable. For shipping companies that wish to surrender fewer emission allowances on the basis of their ships’ ice class or navigation in ice conditions, or both, under Directive 2003/87/EC, monitoring shall include aggregated greenhouse gas emissions from all voyages that involved navigating in ice conditions and the total distance travelled during voyages that involved navigating in ice conditions. ’

Amendment 619

Proposal for a directive

Article 3 — paragraph 1 — point 14 — point a

Regulation (EU) 2015/757

Article 23 — paragraph 2 — subparagraph 2

Text proposed by the Commission

Amendment

The power to adopt delegated acts referred to in Article 5(2), as regards ensuring the functioning of the EU ETS, and Articles 6(8), 7(5), 11a(4), 13(6) and 15(6) shall be conferred on the Commission for a period of five years from the entry into force of [revised MRV Regulation]. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period. ”;

Amendment 620

Proposal for a directive

Article 4 — paragraph 1 a (new)

Text proposed by the Commission	Amendment
	1a. By way of derogation from paragraph 1, Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with Article 1, point (15)(-a), of this Directive by 1 January 2025 at the latest. They shall forthwith communicate to the Commission the text of those provisions.

Amendment 621

Proposal for a directive

Annex I — paragraph 1 — point a

Directive 2003/87/EC

Annex I — point 1

Text proposed by the Commission

Amendment

Installations or parts of installations used for research, development and testing of new products and processes, and installations where emissions from the combustion of biomass that complies with the criteria set out pursuant to Article 14 contribute to more than 95 % of the total greenhouse gas emissions are not covered by this Directive.

1.	Installations or parts of installations used for research, development and testing of new products and processes, and installations exclusively using biomass are not covered by this Directive.

Amendment 622

Proposal for a directive

Annex I — paragraph 1 — point a a (new)

Directive 2003/87/EC

Annex I — point 5

Present text

Amendment

(aa)	point 5 is replaced by the following:

5.	When the capacity threshold of any activity in this Annex is found to be exceeded in an installation, all units in which fuels are combusted, other than units for the incineration of hazardous or municipal waste, shall be included in the greenhouse gas emission permit.

‘5.	When the capacity threshold of any activity in this Annex is found to be exceeded in an installation, all units in which fuels are combusted, other than units for the incineration of hazardous waste, shall be included in the greenhouse gas emission permit.’

Amendment 623

Proposal for a directive

Annex I — paragraph 1 — point b — point -i (new)

Directive 2003/87/EC

Annex I — table — row 1

Present text

Combustion of fuels in installation with a total rated thermal input exceeding 20MW (except in installations for the incineration of hazardous or municipal waste)

Carbon dioxide

Amendment

(-i)

the first row is replaced by the following:

Combustion of fuels in installations with a total rated thermal input exceeding 20 MW (except in installations for the incineration of hazardous waste) including, from 1 January 2026, the combustion of fuels in installations for the incineration of municipal waste

Carbon dioxide

Amendment 624

Proposal for a directive

Annex I — paragraph 1 — point c — point v

Directive 2003/87/EC

Annex I — table — row 24 — column 1

Text proposed by the Commission	Amendment
Production of hydrogen (H2) and synthesis gas with a production capacity exceeding 25 tonnes per day	Production of hydrogen(H2) and synthesis gas with a production capacity exceeding 25 tonnes per day and production of hydrogen (H2) and synthesis gas where the energy content is derived from renewable energy sources with a production capacity exceeding 5 tonnes per day

Amendment 625

Proposal for a directive

Annex I — paragraph 1 — point c — point vii

Directive 2003/87/EC

Annex I — table — row 30

Text proposed by the Commission

‘Maritime transport	Greenhouse gases covered by Regulation (EU) 2015/757’;
Maritime transport activities of ships covered by Regulation (EU) 2015/757 of the European Parliament and of the Council performing voyages with the purpose of transporting passengers or cargo for commercial purposes

Amendment

‘Maritime transport

Carbon dioxide (CO2), nitrous oxides (N2O) and methane (CH4) in line with Regulation (EU) 2015/757’

Maritime transport activities of ships covered by Regulation (EU) 2015/757 of the European Parliament and of the Council performing voyages with the purpose of transporting passengers, cargo for commercial purposes and, from 2024, performing service activities for offshore installations

Such activities shall not include:

(a)	voyages performed in the framework of a public service contract or subject to public service obligations in accordance to Council Regulation (EEC) No 3577/92;

(b)	humanitarian voyages;

(c)	search and rescue voyages or parts of normal voyages by ships where search and rescue activities had to be carried out;

(d)	force majeure for all or part of the voyage.

Amendment 626

Proposal for a directive

Annex I — paragraph 1 — point 2

Directive 2003/87/EC

Annex III — table

Text proposed by the Commission

Activity:

Greenhouse gases

1.	Release for consumption of fuels which are used for combustion in the sectors of buildings and road transport .

Carbon dioxide (CO2)

This activity shall not include:

(a)	the release for consumption of fuels used in the activities set out in Annex I to this Directive, except if used for combustion in the activities of transport of greenhouse gases for geological storage (activity row twenty seven);

(b)	the release for consumption of fuels for which the emission factor is zero.

2.	The sectors of buildings and road transport shall correspond to the following sources of emissions, defined in 2006 IPCC Guidelines for National Greenhouse Gas Inventories, with the necessary modifications to those definitions as follows:

(a)	Combined Heat and Power Generation (CHP) (source category code 1A1a ii) and Heat Plants (source category code 1A1a iii), insofar as they produce heat for categories under (c) and (d) of this point, either directly or through district heating networks;

(b)	Road Transportation (source category code 1A3b), excluding the use of agricultural vehicles on paved roads;

(c)	Commercial / Institutional (source category code 1A4a);

(d)	Residential (source category code 1A4b).

Amendment

Activity:

Greenhouse gases

Release for consumption of fuels which are used for combustion.

Carbon dioxide (CO2)

This activity shall not include:

(a)	the release for consumption of fuels used in the activities set out in Annex I to this Directive, except if used for combustion in the activities of transport of greenhouse gases for geological storage (activity row twenty seven);

(b)	the release for consumption of fuels for which the emission factor is zero.

(c)	the release for consumption of fuels used in agriculture;

(d)	the release for consumption of fuels used in ships or activities referred to in Article 2(2) of Regulation (EU) 2015/757;

(e)	the release for consumption of fuels used in the activity ‘Aviation’ referred to in Annex I;

(f)	the release for consumption of fuels used for private road transport and for private heating and cooling of residential buildings until 1 January 2029, subject to the assessment provided for in Article 30a(1b).

Amendment 627

Proposal for a directive

Annex I — point 3 — point a — point i

Directive 2003/87/EC

Annex IV — Part A — Calculation — subparagraph 4

Text proposed by the Commission	Amendment
The emission factor for biomass that complies with the sustainability criteria and greenhouse gas emission saving criteria for the use of biomass established by Directive (EU) 2018/2001, with any necessary adjustments for application under this Directive, as set out in the implementing acts referred to in Article 14, shall be zero.;	The emission factor for biomass that complies with the sustainability criteria and greenhouse gas emission saving criteria for the use of biomass established by Directive (EU) 2018/2001, with any necessary adjustments for application under this Directive, as set out in the delegated acts referred to in Article 14, shall be zero;

Amendment 628

Proposal for a directive

Annex I — point 4 a (new)

Directive 2003/87/EC

Annex V a (new)

Text proposed by the Commission

Amendment

(4a)	the following annex is added to Directive 2003/87/EC:

“Annex Va

Option to surrender a readjusted amount of allowances for ice class ships

The readjusted amount of emission allowances to be surrendered for ice class ships shall correspond to a readjusted amount of emissions that is calculated based on the formula presented in this Annex. The readjusted amount of emissions shall take into account the technical characteristics that increase emissions of ships belonging to a Finnish-Swedish ice class IA or IA Super or an equivalent ice class during navigation at all times and the further increase of emissions due to navigating in ice conditions.

Readjusted amount of emission allowances to be surrendered annually means readjusted amount of annual emissions CO2 R.

The annual total emission CO2 T within the scope of the EU ETS are calculated on the basis of reporting under Regulation (EU) 2015/757 as follows:

CO2 T = CO2 T voyages between MS + CO2 B + 0,5 × (CO2 voyages from MS + CO2 voyages to MS) (1),

where CO2 T voyages between MS denotes the aggregated CO2 emissions from all voyages between ports under the jurisdiction of a Member State, CO2 B the emissions which occurred within ports under the jurisdiction of a Member State at berth, CO2eq voyages from MS the aggregated CO2 emissions from all voyages which departed from ports under the jurisdiction of a Member State and CO2 voyages to MS the aggregated CO2 emissions from all voyages to ports under the jurisdiction of a Member State.

Similarly, the annual total emissions of an ice-class ship when navigating in ice conditions within the scope of the EU ETS CO2eI are calculated on the basis of reporting under Regulation (EU) 2015/757 as follows:

CO2 eI = CO2 eq I voyages between MS + 0,5 × (CO2 eq I voyages from MS + CO2 eq I voyages to MS) (2),

where CO2eq I voyages between MS denotes the aggregated CO2 emissions of an ice-classed ship when navigating in ice conditions between ports under the jurisdiction of a Member, CO2eq I voyages from MS emissions of an ice-classed ship when navigating in ice conditions from all voyages which departed from ports under the jurisdiction of a Member State and CO2eq I voyages to MS emissions of an ice-classed ship when navigating in ice conditions from all voyages to ports under the jurisdiction of a Member State.

The annual total distance travelled within the scope of the EU ETS is calculated as follows:

DT = DT voyages between MS + 0,5 × (DT voyages from MS + DT voyages to MS) (3),

where DT voyages between MS denotes the aggregated distance of all voyages between ports under the jurisdiction of a Member State, DT voyages from MS the aggregated distance of all voyages which departed from ports under the jurisdiction of a Member State and DT voyages to MS the aggregated distance of all voyages to ports under the jurisdiction of a Member State.

The aggregated distance travelled when navigating in ice conditions within the scope of the EU ETS is calculated as follows:

DI= DI voyages between MS + 0,5 × (DI voyages from MS + DI voyages to MS) (4),

where DI voyages between MS denotes the aggregated distance sailed in ice conditions from all voyages between ports under the jurisdiction of a Member State, DI voyages from MS the aggregated distance sailed in ice conditions from all voyages which departed from ports under the jurisdiction of a Member State and DI voyages to MS the aggregated distance sailed in ice conditions from all voyages to ports under the jurisdiction of a Member State.

The readjusted amount of annual emissions CO2eq R are calculated as follows:

CO2 R = CO2 T — CO2 TF - CO2 NI (5),

where CO2 TF denotes the increase in annual emissions due to technical characteristics of ships having a Finnish-Swedish ice class IA or IA Super or an equivalent ice class and CO2 NI the increase in annual emissions of an ice-class ship due to navigating in ice conditions.

The increase in annual emissions due to technical characteristics of ships having a Finnish-Swedish ice class IA or IA Super or an equivalent ice class CO2 TF is calculated as follows:

CO2 TF = 0,05 ×(CO2 T — CO2 B — CO2 NI ) (6) The increase in annual emissions due to navigating in ice conditions is calculated as follows:

CO2 NI = CO2 I — CO2 RI (7)

where the readjusted annual emissions for navigating in ice conditions CO2 RI are:

CO2 RI = DI × (CO2eq/D)open water, (8)

where (CO2eq/D)ow denotes the emissions for voyages per distance travelled in open water. The latter is defined as follows:

(CO2eq/D)ow = (CO2 T — CO2 B — CO2 I)/(DT — DI) (9)

List of all symbols:

CO2 T annual total emissions within the geographical scope of the EU ETS

CO2 T voyages between MS aggregated CO2 emissions from all voyages between ports under the jurisdiction of a Member State

CO2 B emissions which occurred within ports under the jurisdiction of a Member State at berth

CO2 eq voyages from MS aggregated CO2 emissions from all voyages which departed from ports under the jurisdiction of a Member State

CO2 voyages to MS aggregated CO2 emissions from all voyages to ports under the jurisdiction of a Member State

DT annual total distance travelled within the scope of the EU ETS

DT voyages between MS aggregate distance of all voyages between ports under the jurisdiction of a Member State

DT voyages from MS aggregated distance of all voyages which departed from ports under the jurisdiction of a Member State

DT voyages to MS aggregated distance of all voyages to ports under the jurisdiction of a Member State

DI aggregated distance travelled when navigating in ice conditions within the geographical scope of the EU ETS

DI voyages between MS aggregated distance sailed in ice conditions of all voyages between ports under the jurisdiction of a Member State

DI voyages from MS aggregated distance sailed in ice conditions of all voyages which departed from ports under the jurisdiction of a Member State

DI voyages to MS aggregated distance sailed in ice conditions of all voyages to ports under the jurisdiction of a Member State

CO2 I annual emissions of an ice-class ship when navigating in ice conditions

CO2 NI increase of annual emissions of an ice-class ship due to navigating in ice conditions

CO2 R readjusted annual emissions

CO2 RI readjusted annual emissions for navigating in ice conditions

CO2 TF annual emissions due to technical characteristics of a ship with a Finnish-Swedish ice class IA or IA Super or an equivalent ice class on average, compared to ships designed to sail only in open water

(CO2eq/D)ow annual average of emissions for distance travelled in open water only.

(1) The matter was referred back for interinstitutional negotiations to the committee responsible, pursuant to Rule 59(4), fourth subparagraph (A9-0162/2022).

(3) Paris Agreement (OJ L 282, 19.10.2016, p. 4).

(1a) OJ C 232, 16.6.2021, p. 28.

(4) COM(2019)0640.

(1a) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).

(1a) Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).

(5) Special Eurobarometer 513 on Climate Change, 2021 (https://ec.europa.eu/clima/citizens/support_en).

(7) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).

(8) Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).

(13) Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide and amending Council Directive 85/337/EEC, European Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006 (OJ L 140, 5.6.2009, p. 114).

(14) Regulation (EU) 2015/757 of the European Parliament and of the Council of 29 April 2015 on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and amending Directive 2009/16/EC (OJ L 123, 19.5.2015, p. 55).

(15) Directive (EU) 2018/410 of the European Parliament and of the Council of 14 March 2018 amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments, and Decision (EU) 2015/1814 (OJ L 76, 19.3.2018, p. 3).

(16) Paris Agreement, Article 4(4).

(1a) Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).

(1a) Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1).

(1a) OJ L 433 I, 22.12.2020, p. 28.

(1a) Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom (OJ L 424, 15.12.2020, p. 1).

(51) [please insert full OJ reference]

(19) [add ref to the FuelEU Maritime Regulation].

(21) Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council and amending Commission Regulation (EU) No 601/2012 (OJ L 334, 31.12.2018, p. 1).

(22) Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).

(23) Commission Delegated Regulation (EU) 2019/331 of 19 December 2018 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council (OJ L 59, 27.2.2019, p. 8).

(25) Council Directive (EU) 2020/262 of 19 December 2019 laying down the general arrangements for excise duty (OJ L 58, 27.2.2020, p. 4).

(26) Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26).

(27) Data from 2018. Eurostat, SILC [ilc_mdes01].

(28) Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1).

(29) [Add ref to the Regulation establishing the Social Climate Fund].

(27) Data from 2018. Eurostat, SILC [ilc_mdes01].

(29) [Add ref to the Regulation establishing the Social Climate Fund].

(*1) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (“European Climate Law”) (OJ L 243, 9.7.2021, p. 1).’;

(*2) Regulation (EU) 2015/757 of the European Parliament and of the Council of 29 April 2015 on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and amending Directive 2009/16/EC (OJ L 123, 19.5.2015, p. 55).

(*) Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).

(**) Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget (OJ L 433 I, 22.12.2020, p. 1).

(*3) Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom (OJ L 424, 15.12.2020, p. 1).

(*4) Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1).’

(*5) Regulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 2021 establishing the Just Transition Fund (OJ L 231, 30.6.2021, p. 1).’

(*) Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1).

(*) Commission Decision 2010/670/EU of 3 November 2010 laying down criteria and measures for the financing of commercial demonstration projects that aim at the environmentally safe capture and geological storage of CO 2 as well as demonstration projects of innovative renewable energy technologies under the system for greenhouse gas emission allowance trading within the Union established by Directive 2003/87/EC of the European Parliament and of the Council (OJ L 290, 6.11.2010, p. 39).

(**) Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26).

(*) COM(2019)0640.

(**) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).

(*) COM(2019)0640.

(*) Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).’

(1a) Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a system for greenhouse gas emission allowances trading within the Union (OJ L 302, 18.11.2010, p. 1).’

(*) Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26).

(*) Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).

27.1.2023

Official Journal of the European Union

C 32/250

P9_TA(2022)0247

Social Climate Fund ***I

Amendments adopted by the European Parliament on 22 June 2022 on the proposal for a regulation of the European Parliament and of the Council establishing a Social Climate Fund (COM(2021)0568 — C9-0324/2021 — 2021/0206(COD)) (1)

(Ordinary legislative procedure: first reading)

(2023/C 32/12)

Amendment 1

Proposal for a regulation

Recital 1

Text proposed by the Commission

Amendment

(1)

The Union and its Member States are Parties to the Paris Agreement, which was signed in December 2015 under the United Nations Framework Convention on Climate Change (UNFCCC) (‘the Paris Agreement’) (28) and entered into force in November 2016. According to that Agreement, they are bound to limit the increase in the global average temperature well below 2 oC above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 oC above pre-industrial levels. By adopting the Glasgow Climate Pact, the Parties to the Paris Agreement recognised that limiting the increase in the global average temperature to 1,5 oC above pre-industrial levels would significantly reduce the risks and impacts of climate change, and they committed to strengthening their 2030 targets by the end of 2022 to close the ambition gap, in line with the findings of the Intergovernmental Panel on Climate Change (IPCC). This should be done in a manner that is equitable and respects the principle of common but differentiated responsibilities and respective capabilities, in light of different national circumstances.

Amendment 2

Proposal for a regulation

Recital 2

Text proposed by the Commission

Amendment

(2)

The Commission Communication The European Green Deal (29) sets out a new growth strategy that aims to transform the Union into a sustainable, fairer and more prosperous society, with a modern, resource-efficient and competitive economy, where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use . The Commission proposes also to protect, conserve and enhance the Union's natural capital, and protect the health and well-being of citizens from environment-related risks and impacts. Finally, the Commission considers that this transition should be just and inclusive, leaving no one behind.

(2)

The Commission Communication The European Green Deal (29) sets out a new growth strategy that aims to transform the Union into a sustainable , equitable , fairer and more prosperous society, with a modern, resource-efficient and competitive economy, where there are no net emissions of greenhouse gases in 2050 at the latest . The Commission proposes also to restore, protect, conserve and enhance the Union's natural capital, and protect the health and well-being of citizens from environment-related risks and impacts. Finally, the Commission considers that this transition should be just and inclusive, leaving no one behind.

Amendment 3

Proposal for a regulation

Recital 3

Text proposed by the Commission

Amendment

(3)

Regulation (EU) 2021/1119 of the European Parliament and of the Council (30) enshrines into law the target of economy-wide climate neutrality by 2050. That Regulation establishes a binding commitment on the part of the Union to reduce emissions. By 2030, the Union should reduce its greenhouse gas emission, after deduction of removals of greenhouse gas emissions, by at least 55 % compared to the level in 1990. All sectors of the economy should contribute to achieving that target.

(3)

Regulation (EU) 2021/1119 of the European Parliament and of the Council (30) enshrines into law the target of economy-wide climate neutrality by 2050 at the latest . That Regulation establishes a binding commitment on the part of the Union to reduce emissions. By 2030, the Union should reduce its greenhouse gas emission, after deduction of removals of greenhouse gas emissions, by at least 55 % compared to the level in 1990. All sectors of the economy should contribute to achieving that target.

Amendment 4

Proposal for a regulation

Recital 6

Text proposed by the Commission

Amendment

(6)

The Porto Declaration of 8 May 2021 reaffirmed the European Council’s pledge to work towards a social Europe, and its determination to continue deepening the implementation of the European Pillar of Social Rights at EU and national level, with due regard for respective competences and the principles of subsidiarity and proportionality.

(6)

The European Pillar of Social Rights Action Plan (1a) highlights that social rights and the European social dimension need to be strengthened across all policies of the Union as enshrined in the Treaties, in particular Article 3 of the Treaty on European Union (TEU) and Article 9 of the Treaty on the Functioning of the European Union (TFEU). The Porto Declaration of 8 May 2021 reaffirmed the European Council’s pledge to work towards a social Europe ensuring a just transition , and its determination to continue deepening the concrete implementation of the European Pillar of Social Rights at EU and national level, with due regard for respective competences and the principles of subsidiarity and proportionality.

Amendment 5

Proposal for a regulation

Recital 6 a (new)

Text proposed by the Commission

Amendment

(6a)	The Fund should only support activities and recipients that respect applicable Union and national law on social and labour rights concerning, inter alia, wages and working conditions, including collective agreements, and that promote sustainable and quality jobs.

Amendment 6

Proposal for a regulation

Recital 7

Text proposed by the Commission

Amendment

(7)	In order to implement the commitments towards climate neutrality, the Union’s climate and energy legislation has been reviewed and amended in order to accelerate the greenhouse gas emissions reductions.

(7)

In order to implement the commitments towards climate neutrality, the Union’s climate and energy legislation has been reviewed and amended in order to accelerate the greenhouse gas emissions reductions. A just transition principled by the UN 2030 Agenda and by the European Pillar of Social Rights means eradicating energy and mobility poverty across the Union. To further this, a new Social Climate Fund should contribute to protecting and empowering the most vulnerable households. Particular attention is required to ensure that those households actually benefit from the implementation of various funding instruments, namely those instruments available to Member States and which include the Cohesion Funds, the Recovery and Resilience Facility, and revenues currently generated by the EU ETS. The funds available to Member States should be used to invest in the renovation of buildings, the creation of quality and safe green jobs, as well as the development of the necessary skills suitable to the green and digital transition, the decarbonisation of the transport sector, and in greater access to public, shared soft mobility.

Amendment 7

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8)

Those amendments have differing economic and social impacts on the different sectors of the economy, on the citizens, and the Member States. In particular, the inclusion of greenhouse gas emissions from buildings and road transport into the scope of Directive 2003/87/EC of the European Parliament and the Council (31) should provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. Combined with other measures, this should, in the medium to long term, reduce the costs for buildings and road transport , and provide new opportunities for job creation and investment .

(8)

Those amendments have differing economic and social impacts on the different sectors of the economy, on the citizens, and the Member States. In particular, any extension of the scope of Directive 2003/87/EC of the European Parliament and the Council (31) should provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. Combined with other measures, this should, in the medium to long term, contribute to the eradication of energy and mobility poverty , and provide new opportunities for quality job creation and sustainable investments, fully aligned with the European Green Deal goals . The Commission should collect data on the social impact of the accompanying measures and how those measures affect different Member States, regions and vulnerable groups to ensure a preventive approach in order to reduce inequalities in access to sustainable and affordable energy and mobility. Particular attention should be paid to the most disadvantaged groups and to households in mobility or energy poverty, so that they benefit from the implementation of those funding instruments and no one is left behind.

Amendment 8

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9)

However, resources are needed to finance those investments. In addition, before they have taken place, the cost supported by households and transport users for heating, cooling and cooking, as well as for road transport, is likely to increase as fuel suppliers subject to the obligations under the emission trading for buildings and road transport pass on costs on carbon to the consumers .

(9)

However, resources are needed to finance sufficient, stable and equitable investments. In addition, before they have taken place, the cost supported by households and transport users for heating, cooling and cooking, as well as for road transport is likely to increase , also, in light of the Russian war of aggression, taking into account the dependency of Member States on imported fossil fuels .

Amendment 9

Proposal for a regulation

Recital 9 a (new)

Text proposed by the Commission

Amendment

(9a)

High fossil gas prices causing extreme price spikes in certain Member States in the 2021/2022 heating season, aggravated by import dependencies and geopolitical tensions, have exposed once more the Union’s dependency on imported fossil gas for its industries and households, especially felt by the poorest households. Investments in energy efficiency measures, as well as renewable energy based heating systems, including with electric heat pumps, heating and cooling at district level and participation in renewable energy communities, are hence the most cost-effective method of reducing import dependency and emissions while increasing Union resilience. Third party funding schemes are necessary, in particular for the poorest households, to ensure compliances with those principles.

Amendment 10

Proposal for a regulation

Recital 9 b (new)

Text proposed by the Commission

Amendment

(9b)	As the transition to a cleaner Europe will have an economic and social impact that is difficult to assess ex-ante, additional investment and, thus, financial resources can be needed to achieve the commitment towards climate neutrality, while preserving the economic, social and territorial cohesion.

Amendment 11

Proposal for a regulation

Recital 9 c (new)

Text proposed by the Commission

Amendment

(9c)

The costs passed on by fuel suppliers to final consumers can differ for each company, region or Member State. The Commission should therefore collect data on the share of costs absorbed by fuel suppliers and the share of costs passed on to final consumers and should annually report its findings to the European Parliament.

Amendment 12

Proposal for a regulation

Recital 9 d (new)

Text proposed by the Commission

Amendment

(9d)

In the construction sector, a holistic reform of building structure would lead to less demand for energy, which would take into account in a more efficient way people at risk of exclusion, namely those who suffer most from energy poverty in the Union. It would also counter the trend of families moving between rural, peri-urban, urban areas and sparsely populated areas, thus preventing them from potentially incurring higher housing prices and preventing the consequent emission of greenhouse gas owing to increased use of private transport.

Amendment 13

Proposal for a regulation

Recital 10

Text proposed by the Commission

Amendment

(10)

The increase in the price for fossil fuels may disproportionally affect vulnerable households, vulnerable micro-enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport, who, in certain regions, do not have access to alternative, affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption.

(10)

The transition toward climate neutrality, including by carbon pricing is expected to disproportionally affect vulnerable households, vulnerable micro-enterprises, and vulnerable transport users who spend a larger part of their incomes on energy and transport, who, in certain regions , including in rural, insular, mountainous, remote and less accessible areas or for less developed regions or territories, including less developed peri-urban areas , do not have access to alternative, affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption.

Amendment 14

Proposal for a regulation

Recital 11

Text proposed by the Commission

Amendment

(11)	Therefore, a part of the revenues generated by the inclusion of building and road transport into the scope of Directive 2003/87/EC should be used to address the social impacts arising from that inclusion, for the transition to be just and inclusive, leaving no one behind.

(11)

Therefore, a part of the revenues generated by the inclusion of building and road transport into the scope of Directive 2003/87/EC should be used as an own resource to finance the Union budget as general income, in accordance with the legally binding Interinstitutional Agreement of 16 December 2020 (1a) (the ‘Interinstitutional Agreement’) that sets out a roadmap towards the introduction of new own resources, thereby providing the Union budget with the means of contributing to addressing the social impacts arising from that inclusion, for the transition to be just and inclusive, leaving no one behind. Under the Interinstitutional Agreement, a basket of new own resources is envisaged to be introduced by 1 January 2023. Green own resources are means of aligning the Union budget with the Union’s policy priorities, thus providing Union added value, and should be used to contribute to the climate mainstreaming objectives, the repayment of NextGenerationEU debts and the resilience of the Union budget as regards its functioning as a tool for investments and guarantees.

Amendment 15

Proposal for a regulation

Recital 11 a (new)

Text proposed by the Commission

Amendment

(11a)

Further fiscal or stimulus measures may be necessary in order to support vulnerable households, vulnerable micro-enterprises, vulnerable small enterprises or vulnerable transport users.

Amendment 16

Proposal for a regulation

Recital 12

Text proposed by the Commission

Amendment

(12)

This is even more relevant in view of the existing levels of energy poverty. Energy poverty is a situation in which households are unable to access essential energy services such as cooling, as temperatures rise, and heating . About 34 million Europeans reported an inability to keep their homes adequately warm in 2018, and 6,9 % of the Union population have said that they cannot afford to heat their home sufficiently in a 2019 EU-wide survey (32). Overall, the Energy Poverty Observatory estimates that more than 50 million households in the European Union experience energy poverty. Energy poverty is therefore a major challenge for the Union. While social tariffs or direct income support can provide immediate relief to households facing energy poverty, only targeted structural measures, in particular energy renovations, can provide lasting solutions.

(12)

This is even more relevant in view of the existing levels of energy poverty. Energy poverty is a situation in which households lack access to essential energy services that underpin a decent standard of living and health, including adequate warmth, cooling, lighting and energy to power appliances, and in the relevant existing social policy and other relevant policies, often as a result of facing a high share of energy expenditure as part of their disposable income due to a combination of factors, including low income, high-energy prices and low quality, poor performing housing stock . About 34 million Europeans reported an inability to keep their homes adequately warm in 2018, and 6,9 % of the Union population have said that they cannot afford to heat their home sufficiently in a 2019 EU-wide survey (32). Overall, the Energy Poverty Observatory estimates that more than 50 million households in the European Union experience energy poverty. Energy poverty is therefore a major challenge for the Union. Despite the importance of that challenge having been acknowledged at Union level for over a decade through various initiatives, legislation and guidelines, there is still no standard Union-level definition of energy poverty and only one third of Member States have put in place a national definition of energy poverty. As a result, no transparent and comparable data on energy poverty in the Union is available, limiting the capacity to effectively monitor and assess the level of energy poverty. Therefore, a Union-level definition should be established to effectively address energy poverty and measure progress across Member States. While social tariffs or direct income support can provide immediate relief to households facing energy poverty, only targeted structural measures, the application of the energy efficiency first principle, the installation of additional renewable energy sources, including through community-led projects, as well as information and awareness-raising measures targeted at the households in particular energy renovations contributions contributing to the renovation requirement established in Directive 2010/31/EU on the energy performance of buildings (recast) , can provide lasting solutions and effectively help combat energy poverty .

Amendment 17

Proposal for a regulation

Recital 12 a (new)

Text proposed by the Commission

Amendment

(12a)

As regards the buildings sector, a holistic renovation of buildings, based on actions aimed at improving energy efficiency by focusing on all the elements that make up a building, would lead to a reduction in energy consumption for each household, and would be visible in term of the money saved and, as a result, would provide one means of combating energy poverty. The future revision of Directive 2010/31/EU of the European Parliament and of the Council would lay the foundations for those objectives to be achieved and should therefore be taken into account when implementing the Fund.

Amendment 18

Proposal for a regulation

Recital 12 b (new)

Text proposed by the Commission

Amendment

(12b)

Particular attention needs to be paid to tenants in the private rental market. Those tenants include vulnerable households in energy poverty or households at risk of energy poverty, including lower middle-income ones, that are significantly affected by the price impacts of increased heating costs or by higher rental prices following renovation, but are not in a position to renovate the building they occupy. As part of their Social Climate Plans, Member States should therefore develop, in consultation with landlords, the private sector and relevant local authorities and civil society organisations, energy efficient, green social housing and specific measures and investments to support vulnerable tenants on the private rental market, for example by considering national schemes or voucher schemes aimed at housing tenants in the private rental sector, to make renovation measures and to contribute to the Union’s climate targets. As part of the biennial reporting and evaluation of the measures and investments implemented by Member States, the Commission should assess their impact and effectiveness to support vulnerable tenants in the private rental market. In the absence of positive results, that assessment should be accompanied by a Commission initiative, where appropriate, in consultation with Member States, representatives of the private rental market and relevant local authorities and civil society organisations, to address the situation of vulnerable tenants in the private rental market.

Amendment 19

Proposal for a regulation

Recital 12 c (new)

Text proposed by the Commission

Amendment

(12c)

Mobility poverty has been underexposed and no clear definitions are available at Union or national level. However, it is a problem that is becoming more pressing to address as a result of the increasing phase-out requirements for combustion engine vehicles, high fuel prices, and high dependencies on transport availability, accessibility and costs to go to work or for daily mobility needs for those living in rural, insular, peripheral, mountainous, remote and less accessible regions or territories, including less developed peri-urban areas and the outermost regions.

Amendment 20

Proposal for a regulation

Recital 13

Text proposed by the Commission

Amendment

(13)

A Social Climate (‘the Fund’) should therefore be established to provide funds to the Member States to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households, vulnerable micro-enterprises and vulnerable transport users. This should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings, decarbonisation of heating and cooling of buildings, including the integration of energy from renewable sources, and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households, vulnerable micro-enterprises and vulnerable transport users.

(13)

A Social Climate Fund (‘the Fund’) should therefore be established to provide funds to the Member States to support their policies to address the social impacts of the transition toward climate neutrality, including by carbon pricing, on vulnerable households, vulnerable micro-enterprises, and vulnerable transport users. This should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings, decarbonisation of heating and cooling of buildings, including the integration of energy from renewable sources, and granting improved access to affordable and efficient zero- and low-emission mobility and transport to the benefit of vulnerable households, vulnerable micro-enterprises, and vulnerable transport users.

Amendment 21

Proposal for a regulation

Recital 13 a (new)

Text proposed by the Commission

Amendment

(13a)

Since vulnerable households, vulnerable micro-enterprises and vulnerable transport users will require additional support with the green transition sufficient and proportionate financial assistance should be allocated to all Member States.

Amendment 22

Proposal for a regulation

Recital 14

Text proposed by the Commission

Amendment

(14)

For that purpose, each Member State should submit to the Commission a Social Climate Plan (‘the Plan’). Those Plans should pursue two objectives. Firstly, they should provide vulnerable households, vulnerable micro-enterprises and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency, decarbonisation of heating and cooling, in zero- and low-emission vehicles and mobility. Secondly, they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. The Plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures, including temporary direct income support to mitigate adverse income effects in the shorter term.

(14)

For that purpose, each Member State should submit to the Commission a Social Climate Plan (‘the Plan’). Those Plans should contribute to the implementation of the principles of the European Pillar of Social Rights and the achievement of the United Nations Sustainable Development Goals while ensuring that no-one is left behind as well as pursue two objectives. Firstly, they should together with the local and regional authorities, social partners and civil society, identify and map vulnerable households in energy or mobility poverty , vulnerable micro-enterprises and vulnerable transport users to be included as beneficiaries for the necessary resources to finance and carry out investments in energy efficiency, decarbonisation of heating and cooling, in zero- and low-emission vehicles and mobility . Member States should provide a detailed analysis, conducted together with the local and regional authorities, social partners and civil society, on the main causes of energy and mobility poverty in their respective territories. The Plans should also set targets and objectives to reduce the number of people in energy or mobility poverty, vulnerable households, vulnerable micro-enterprises, and vulnerable transport users. Secondly, they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and mobility poverty during the transition period until such investments have been implemented. The Plans should have an investment component promoting the long-term solution of phasing out fossil fuels reliance complemented with temporary direct income support to mitigate adverse income effects in the shorter term. Those Plans should also ensure that actions which have already been implemented at national level will be taken into account.

Amendment 23

Proposal for a regulation

Recital 14 a (new)

Text proposed by the Commission

Amendment

(14a)

Workers in the building and renovation sectors are particularly at risk of exposure to asbestos. Therefore, requirements for the mandatory asbestos screening, registering, and removal of asbestos and other dangerous substances are needed before any renovation works start. Energy renovations should be the opportunity to safely remove asbestos from buildings.

Amendment 24

Proposal for a regulation

Recital 14 b (new)

Text proposed by the Commission

Amendment

(14b)

The Plans submitted by Member States should include measures to provide information support, capacity building and training necessary to implement the investments and measures intended to reduce reliance on fossil fuels through increased energy efficiency of buildings and increased access to renewable energy for heating and cooling of buildings, and grant improved access to sustainable mobility and transport services, including the necessary infrastructure and the deployment of charging stations for electric vehicles. The Plans should also address the lack of workforce needed for all stages of the green transition, in particular in jobs related to building renovation and the integration of energy from renewable sources as well as peer-to-peer and community work tackling energy poverty and mobility poverty.

Amendment 25

Proposal for a regulation

Recital 15

Text proposed by the Commission

Amendment

(15)

Member States, in consultation with regional level authorities, are best placed to design and to implement Plans that are adapted and targeted to their local, regional and national circumstances as their existing policies in the relevant areas and planned use of other relevant EU funds. In that manner, the broad diversity of situations, the specific knowledge of local and regional governments, research and innovation and industrial relations and social dialogue structures, as well as national traditions, can best be respected and contribute to the effectiveness and efficiency of the overall support to the vulnerable.

(15)

Member States, with meaningful consultation of local and regional level authorities , economic and social partners and relevant civil society organisations , are best placed to design and to implement Plans that are adapted and targeted to their local, regional and national circumstances as their existing policies in the relevant areas and planned use of other relevant EU funds. In that manner, the broad diversity of situations, the specific knowledge of local and regional governments, economic and social partners, relevant civil society organisations and of research and innovation and industrial relations and social dialogue structures, as well as national traditions, can best be respected and contribute to the effectiveness and efficiency of the overall support to the vulnerable and to the scaling up of projects developed by local and regional authorities, social partners and socio-economic actors .

Amendment 26

Proposal for a regulation

Recital 15 a (new)

Text proposed by the Commission

Amendment

(15a)

The Plans should be designed in a comprehensive manner, while at the same time preventing excessive administrative burdens. The Member States should be therefore required, when designing and implementing the Plans as described, to be comprehensive while avoiding any unnecessary complexity.

Amendment 27

Proposal for a regulation

Recital 16

Text proposed by the Commission

Amendment

(16)

Ensuring that the measures and investments are particularly targeted towards energy poor or vulnerable households, vulnerable micro-enterprises and vulnerable transport users is key for a just transition towards climate neutrality. Support measures to promote reductions in greenhouse gas emissions should help Member States to address the social impacts arising from the emissions trading for the sectors of buildings and road transport .

(16)

Ensuring that the measures and investments are particularly targeted towards energy poor or vulnerable households, vulnerable micro-enterprises and vulnerable transport users is key for a just transition towards climate neutrality. Support measures to promote reductions in greenhouse gas emissions should help Member States to address the social impacts of the transition towards climate neutrality, including social impacts from carbon pricing .

Amendment 28

Proposal for a regulation

Recital 17

Text proposed by the Commission

Amendment

(17)

Pending the impact of those investments on reducing costs and emissions, well targeted direct income support for the most vulnerable would help the just transition. Such support should be understood to be a temporary measure accompanying the decarbonisation of the housing and transport sectors. It would not be permanent as it does not address the root causes of energy and transport poverty. Such support should only concern direct impacts of the inclusion of building and road transport into the scope of Directive 2003/87/EC, not electricity or heating costs related to the inclusion of power and heat production in the scope of that Directive. Eligibility for such direct income support should be limited in time .

(17)

Direct income support when combined with long-lasting structural investment measures targeting the same beneficiaries, will contribute to the achievement of the objectives of the Fund. Pending the impact of those investments on reducing costs and emissions, well targeted direct income support for vulnerable households in energy poverty or mobility poverty would contribute to reduce energy and mobility costs and support the just transition while waiting for more structural investments to take place . Such support should be understood to be a temporary measure accompanying the decarbonisation of the housing and transport sectors. It would not be permanent as it does not address the root causes of energy and mobility poverty. Such direct income support should be limited to up to 40 % of the total estimated cost of each Plan for the period 2024-2027 and should be set for the 2028-2032 period in accordance with a country-by-country assessment by the Commission of the efficiency, added value, continued relevance and required level of direct income support in light of the progress and effect of the implementation of structural investments and measures, with a view to phasing out such support by the end of 2032 .

Amendment 29

Proposal for a regulation

Recital 17 a (new)

Text proposed by the Commission

Amendment

(17a)

Vulnerable households, vulnerable transport users and vulnerable micro-enterprises should be informed about the existence of, and means to, benefit from support under the Fund. Targeted, accessible and affordable information, education, awareness and advice on cost-effective measures and investments and available support should therefore be provided.

Amendment 30

Proposal for a regulation

Recital 17 b (new)

Text proposed by the Commission

Amendment

(17b)

The Fund should be consistent with the Union's obligation under the UN Convention on the Rights of Persons with Disabilities and should not support any measure or investment that contributes to segregation or to social exclusion.

Amendment 31

Proposal for a regulation

Recital 18

Text proposed by the Commission

Amendment

(18)

Taking into account the importance of tackling climate change in line with Paris Agreement commitments, and the commitment to the United Nations Sustainable Development Goals, the actions under this Regulation should contribute to the achievement of the target that 30 % of all expenditure under the 2021-2027 multiannual financial framework should be spent on mainstreaming climate objectives and should contribute to the ambition of providing 10 % of annual spending to biodiversity objectives in 2026 and 2027, while considering the existing overlaps between climate and biodiversity goals. For this purpose, the methodology set out in Annex II of Regulation (EU) 2021/1060 of the European Parliament and of the Council (33) should be used to tag the expenditures of the Fund. The Fund should support activities that fully respect the climate and environmental standards and priorities of the Union and comply with the principle of ‘do no significant harm’ within the meaning of Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council (34) . Only such measures and investments should be included in the Plans. Direct income support measures should as a rule be considered as having an insignificant foreseeable impact on environmental objectives, and as such be considered compliant with the principle of ‘do no significant harm’. The Commission intends to issue technical guidance to the Member States well ahead of the preparation of the Plans. The guidance will explain how the measures and investments must comply with the principle of ‘do no significant harm’ within the meaning of Article 17 of Regulation (EU) 2020/852. The Commission intends to present in 2021 a proposal for a Council Recommendation on how to address the social aspects of the green transition.

(18)

Taking into account the importance of tackling climate change in line with Paris Agreement commitments, the commitment to the European Pillar of Social Rights and the commitment to the United Nations Sustainable Development Goals, the actions under this Regulation should contribute to the achievement of the target that at least 30 % of the total amount of the Union budget under the 2021-2027 multiannual financial framework and the European Union Recovery instrument expenditure should be spent on mainstreaming climate objectives and should contribute to the ambition of providing 7,5 % of annual spending under the MFF to biodiversity objectives in 2024 and 10 % of annual spending to biodiversity objectives in 2026 and 2027, while considering the existing overlaps between climate and biodiversity goals. For this purpose, the methodology set out in Annex II of Regulation (EU) 2021/1060 of the European Parliament and of the Council (33) should be used to tag the expenditures of the Fund. The Fund should support activities that fully respect the technical screening criteria established by the Commission in accordance with Article 10(3) of Regulation (EU) 2020/852 of the European Parliament and of the Council (34). Only such measures and investments should be included in the Plans. Direct income support measures should as a rule be considered as having an insignificant foreseeable impact on environmental objectives, and as such be considered compliant with the principle of ‘do no significant harm’. The Commission presented in 2021 a proposal for a Council Recommendation on how to address the social aspects of the green transition.

Amendment 32

Proposal for a regulation

Recital 19

Text proposed by the Commission

Amendment

(19)

Women are particularly affected by carbon pricing as they represent 85 % of single parent families. Single parent families have a particularly high risk of child poverty. Gender equality and equal opportunities for all, and the mainstreaming of those objectives, as well as questions of accessibility for persons with disabilities should be taken into account and promoted throughout the preparation and implementation of Plans to ensure no one is left behind.

(19)

Women are disproportionately affected by energy poverty and mobility poverty, in particular single mothers, who represent 85 % of single parent families , as well as single women, women with disabilities, or elderly women living alone. In addition, women have different and more complex mobility patterns . Single parent families with dependent children have a particularly high risk of child poverty. Gender equality and equal opportunities for all, and the mainstreaming of those objectives, as well as accessibility rights of persons with disabilities should be upheld and promoted throughout the preparation and implementation of Plans to ensure no one is left behind.

Amendment 33

Proposal for a regulation

Recital 19 a (new)

Text proposed by the Commission

Amendment

(19a)

Renewable energy communities and citizen energy communities can help Member States to achieve the objectives of this Regulation via a bottom-up approach initiated by citizens, as those communities empower and engage consumers and enable certain groups of household customers, both living in urban and in rural, insular, mountainous, remote and less accessible areas or in less developed regions or territories, including less developed peri-urban areas, to participate in energy efficiency projects, support the use of renewable energy of households and at the same time contribute to fighting energy poverty. Member States should therefore promote the role of renewable energy communities and citizen energy communities and regard them as eligible beneficiaries of the Fund.

Amendment 34

Proposal for a regulation

Recital 20

Text proposed by the Commission

Amendment

(20)

Member States should submit their Plans together with the update of their integrated national energy and climate plans in accordance with Article 14 of Regulation (EU) 2018/1999 of the European Parliament and of the Council (35). The Plans should include the measures to be financed, their estimated costs and the national contribution. They should also include key milestones and targets to assess the effective implementation of the measures.

(20)

Member States should submit their Plans together with the update of their integrated national energy and climate plans in accordance with Article 14 of Regulation (EU) 2018/1999 of the European Parliament and of the Council (35) and the European Code of Conduct on Partnership as set out in Regulation (EU) No 240/2014 (35a). The Plans should include the measures to be financed, their estimated costs and the national contribution. They should also include key milestones and targets to assess the effective implementation of the measures.

Amendment 35

Proposal for a regulation

Recital 20 a (new)

Text proposed by the Commission

Amendment

(20a)

The execution of the measures included in the Plans will be reliant on an adequate level of workforce, including craftsmen as well as high-skilled green tech experts, applied scientists and innovators. Therefore, Member States should complement the Plans by making use of other relevant Union actions and programmes to provide for reskilling and upskilling of workers to establish better opportunities for specialised craftsmen and high-skilled experts, in particular in jobs related to building renovation, insulation and installation of heat pumps, and alternative fuel infrastructure deployment, such as the deployment of charging stations for electric vehicles.

Amendment 36

Proposal for a regulation

Recital 21

Text proposed by the Commission

Amendment

(21)

The Fund and the Plans should be coherent with and framed by the reforms planned and the commitments made by the Member States under their updated integrated national energy and climate plans in accordance with Regulation (EU) 2018/1999, under Directive [yyyy/nnn] of the European Parliament and the Council [Proposal for recast of Directive 2012/27/EU on energy efficiency] (36), the European Pillar of Social Rights Action Plan (37), the European Social Fund Plus (ESF+) established by Regulation (EU) 2021/1057 of the European Parliament and of the Council (38), the Just Transition Plans pursuant to Regulation (EU) 2021/1056 of the European Parliament and of the Council (39) and the Member States long-term buildings renovation strategies pursuant to Directive 2010/31/EU of the European Parliament and of the Council (40). To ensure administrative efficiency, where applicable, the information included in the Plans should be consistent with the legislation and plans listed above.

(21)

The Fund and the Plans should be coherent with and framed by the reforms planned and the commitments made by the Member States under their updated integrated national energy and climate plans in accordance with Regulation (EU) 2018/1999, under Directive [yyyy/nnn] of the European Parliament and the Council [Proposal for recast of Directive 2012/27/EU on energy efficiency] (36), the European Pillar of Social Rights Action Plan (37), the European Social Fund Plus (ESF+) (38) , the Modernisation Fund, the cohesion policy operational programmes under Regulation (EU) 2021/1058, the Recovery and Resilience Plans in accordance with Regulation (EU) 2021/241 , the Just Transition Plans (39) and the Member States long-term buildings renovation strategies pursuant to Directive 2010/31/EU of the European Parliament and of the Council (40). To ensure administrative efficiency, where applicable, the information included in the Plans should be consistent with the legislation and plans listed above.

Amendment 37

Proposal for a regulation

Recital 21 a (new)

Text proposed by the Commission

Amendment

(21a)

It is crucial to ensure that the Fund is consistent both with national energy and climate plans and with cohesion policy programmes with similar priorities, in order to prevent any overlap or duplication of efforts. Furthermore, there is a need for effective coordination and strategic programming in the Member States between the Fund, 2021-2027 cohesion policy and other Union funds, particularly the Just Transition Fund and the European Social Fund Plus.

Amendment 38

Proposal for a regulation

Recital 22

Text proposed by the Commission

Amendment

(22)

The Union should support Member States with financial means to implement their Plans through the Social Climate Fund. Payments from the Social Climate Fund should be made conditional on achievement of the milestones and targets included in the Plans. This would allow efficiently taking into account national circumstances and priorities while simplifying financing and facilitating its integration with other national spending programmes while guaranteeing the impact and the integrity of EU spending.

(22)

The Union should support Member States with sufficient financial means proportionate to Member States, taking into account their respective geographic and demographic realities, along with technical support to implement their Plans through the Social Climate Fund. Specific individual attention should be given to the unique and specific challenges of rural, insular, peripheral, mountainous, remote and less accessible regions or territories, which face an amplified socio-economic impact of the climate transition. With a view to ensuring the effectiveness of measures and investments for those regions, a specific minimum financial allocation should be established for applicable regions. In order to ensure the most efficient use of Union funds, payments from the Social Climate Fund should be made conditional on the achievement of the milestones and targets included in the Plans and should be in accordance with the costs indicated for achieving those milestones and targets and should ensure that they do not prolong fossil fuel dependency and avoid carbon lock-in . This would allow efficiently taking into account national circumstances and priorities while simplifying financing and facilitating its integration with other national spending programmes while guaranteeing the impact and the integrity of EU spending.

Amendment 39

Proposal for a regulation

Recital 22 a (new)

Text proposed by the Commission

Amendment

(22a)

The principle of unity of the Union budget, whereby all items of revenue and expenditure of the Union are shown in the budget, is a Treaty requirement under Article 310(1) TFEU. The Fund is therefore to be fully integrated into the Union budget in order to, inter alia, respect the Community method, respect parliamentary democratic accountability, oversight and control, ensure predictability of funding and multiannual programming, and safeguard transparency of the budgetary decisions taken at Union level.

Amendment 40

Proposal for a regulation

Recital 23

Text proposed by the Commission

Amendment

(23)

The financial envelope of the Fund should, in principle, be commensurate to amounts corresponding to 25 % of the expected revenues from the inclusion of buildings and road transport into the scope of Directive 2003/87/EC in the period 2026 -2032. Pursuant to Council Decision (EU, Euratom) 2020/2053 (41), Member States should make those revenues available to the Union budget as own resources. Member States are to finance 50 % of the total costs of their Plan themselves. For this purpose, as well as for investment and measures to accelerate and alleviate the required transition for citizens negatively affected, Member States should inter alia use their expected revenues from emissions trading for buildings and road transport under Directive 2003/87/EC for that purpose.

(23)

The financial envelope of the Fund is set on the basis of an assessment of the estimated amount generated by allocating to the Union budget 25 % of the expected revenues linked to commercial road transport, commercial buildings and other fuels covered by Chapter IVa [ETS Directive] in the first period. That amount should be complemented by the revenues from the 150 million allowances auctioned in accordance with Article 30d(3) of Directive 2003/87/EC. Assuming a carbon price of 35 euros per tonne there would be an additional 5,25 billion euros available over the three year period. Together with the financial envelope this would amount to 16,39 billion euros for that period. A Commission proposal would be required to establish the amount for the Social Climate Fund for the second period 2028-2032, in light of the next MFF negotiations and any inclusion of the sectors of private buildings and private road transport into the scope of Directive 2003/87/EC by 1 January 2029 in accordance with Article [XX] of Directive 2003/87/EC. Consequently, the Fund could reach 72 billion euros over the whole period [date of entry into force] -2032. Pursuant to Council Decision (EU, Euratom) 2020/2053 (41), Member States should make those revenues available to the Union budget as own resources. Member States are to finance a significant share of the total costs of their Plans themselves , corresponding to at least 60 % for temporary direct income support and at least 50 % for targeted structural measures and investments. By way of derogation, it should be possible for the national co-financing share for targeted structural measures and investments to be limited to 40 % for Member States that are eligible for a top-up from the Modernisation Fund . For this purpose, as well as for investment and measures to accelerate and alleviate the required transition for citizens negatively affected, Member States should first use their expected revenues from emissions trading for buildings and road transport under Directive 2003/87/EC for that purpose. The financing of the Fund should not come at the expense of other Union programmes and policies.

Amendment 41

Proposal for a regulation

Recital 23 a (new)

Text proposed by the Commission

Amendment

(23a)

In the event of a higher carbon price, additional allocations should be made available for the Fund so as to ensure that the available appropriations for the Social Climate Fund in the Union budget increase in alignment with the carbon price, in order to further support vulnerable households and transport users in the transition towards climate neutrality. Such annual reinforcements should be accommodated within the MFF by means of an automatic ‘carbon price fluctuation adjustment’ of the ceiling of Heading 3 and of the payment ceiling, the mechanism for which is to be provided for in Council Regulation (EU, Euratom) 2020/2093 pursuant to Article 312 TFEU.

Amendment 42

Proposal for a regulation

Recital 24

Text proposed by the Commission

Amendment

(24)	The Fund should support measures that respect the principle of additionality of Union funding. The Fund should not be a substitute for recurring national expenditures , except in duly justified cases .

(24)	The Fund should support measures that respect the principle of additionality of Union funding. The Fund should not be a substitute for recurring national expenditures.

Amendment 43

Proposal for a regulation

Recital 25

Text proposed by the Commission

Amendment

(25)

In order to ensure an efficient and coherent allocation of funds and to respect the principle of sound financial management, actions under this Regulation should be consistent with and be complementary to ongoing Union programmes, whilst avoiding double funding from the Fund and other Union programmes for the same expenditure. In particular, the Commission and the Member State should ensure, in all stages of the process, effective coordination in order to safeguard the consistency, coherence, complementarity and synergy among sources of funding. To that effect, Member States should be required to present the relevant information on existing or planned Union financing when submitting their plans to the Commission. Financial support under the Fund should be additional to the support provided under other Union programmes and instruments. Measures and investment financed under the Fund should be able to receive funding from other Union programmes and instruments provided that such support does not cover the same costs.

(25)

In order to ensure an efficient , transparent and coherent allocation of funds and to respect the principle of sound financial management, actions under this Regulation should be consistent with and be complementary to ongoing Union , national and, where appropriate, regional programmes , instruments and funds , whilst avoiding that the Fund substitutes other Union programmes , investments and funds for the same expenditure. In particular, the Commission and the Member State should ensure, in all stages of the process, effective coordination in order to safeguard the consistency, coherence, complementarity and synergy among sources of funding and promote evidence-based policy-making, social innovation in partnership with the social partners and public and private bodies . To that effect, Member States should be required to present the relevant information on existing or planned Union financing when submitting their plans to the Commission. Financial support under the Fund should be additional to the support provided under other Union programmes and instruments. Measures and investment financed under the Fund should be able to receive funding from other Union programmes and instruments provided that such support does not cover the same costs.

Amendment 44

Proposal for a regulation

Recital 25 a (new)

Text proposed by the Commission

Amendment

(25a)

To ensure that support under the Plans can be effectively implemented from the initial years starting from … [the date of entry into force of the Social Climate Fund], it should be possible for an amount of up to 13 % of the financial contribution of Member States to be paid in the form of pre-financing by the Commission following a request by the Member State submitted together with the Social Climate Plan.

Amendment 45

Proposal for a regulation

Recital 27

Text proposed by the Commission

Amendment

(27)

In order to ensure transparent rules for monitoring and evaluation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of setting the common indicators for reporting on the progress and for the purpose of monitoring and evaluation of the implementation of the Plans. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(27)

In order to facilitate the preparation of the Social Climate Plans and to ensure transparent rules for monitoring and evaluation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of setting out the template based on which Member States are to prepare their Social Climate Plans and the common indicators for reporting on the progress and for the purpose of monitoring and evaluation of the implementation of the Plans. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the European Code of Conduct on Partnerships . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

Amendment 46

Proposal for a regulation

Recital 28

Text proposed by the Commission

Amendment

(28)	The implementation of the Fund should be carried out in line with the principle of sound financial management, including the effective prevention and prosecution of fraud, tax fraud, tax evasion, corruption and conflicts of interest.

(28)

The implementation of the Fund should be carried out in line with the principle of sound financial management, including the protection of the Union budget in the case of breaches of the principles of the rule of law, the effective prevention and prosecution of fraud, tax fraud, tax evasion, corruption and conflicts of interest.

Amendment 47

Proposal for a regulation

Recital 28 a (new)

Text proposed by the Commission

Amendment

(28a)

The integration of the Fund into the Union budget provides strong safeguards as regards the Fund’s implementation, given the protection afforded both by Union financial legislation and the applicable sector-specific and financial rules in the event of irregularities or serious deficiencies in management and control systems and by the measures set out under Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council (1a) for the protection of the Union budget in the event of breaches of the principles of the rule of law in Member States. The Commission should provide, to that effect, an effective and efficient internal control system and the recovery of amounts wrongly paid or incorrectly used and should take the necessary measures, which could include, among others, a suspension of payments, termination of the legal commitment within the meaning of the Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (1b) , a prohibition on entering into such legal commitments, or a suspension of the disbursement of instalments.

Amendment 48

Proposal for a regulation

Recital 29

Text proposed by the Commission

Amendment

(29)

For the purpose of sound financial management, while respecting the performance-based nature of the Fund, specific rules should be laid down for budget commitments, payments, suspension, and recovery of funds as well as for the termination of agreements related to financial support. The Member States should take appropriate measures to ensure that the use of funds in relation to measures supported by the Fund complies with applicable Union and national law. Member States must ensure that such support is granted in compliance with the EU State aid rules, where applicable In particular, they should ensure that fraud, corruption and conflicts of interests are prevented, detected and corrected, and that double funding from the Fund and other Union programmes is avoided. Suspension and the termination of agreements related to financial support as well as reduction and recovery of the financial allocation should be possible when the Plan has not been implemented in a satisfactory manner by the Member State concerned, or in the case of serious irregularities, meaning fraud, corruption and conflicts of interest in relation to the measures supported by the Fund, or a serious breach of an obligation under the agreements related to financial support. Appropriate contradictory procedures should be established to ensure that the decision by the Commission in relation to suspension and recovery of amounts paid as well as the termination of agreements related to financial support respects the right of Member States to submit observations.

(29)

For the purpose of sound financial management, while respecting the performance-based nature of the Fund, specific rules should be laid down for budget commitments, payments, suspension, and recovery of funds as well as for the termination of agreements related to financial support. The Member States should take appropriate measures to ensure that the use of funds in relation to measures supported by the Fund complies with applicable Union and national law. Member States must ensure that such support is granted in compliance with the EU State aid rules, where applicable. In particular, they should ensure that fraud, corruption and conflicts of interests are prevented, detected and corrected, and that double funding from the Fund and other Union programmes is avoided. Suspension and the termination of agreements related to financial support as well as reduction and recovery of the financial allocation should be possible when the Plan has not been implemented in a satisfactory manner by the Member State concerned, or in the case of serious irregularities, meaning fraud, corruption and conflicts of interest in relation to the measures supported by the Fund, or a serious breach of an obligation under the agreements related to financial support. In the case of termination of an agreement related to financial support or the reduction and recovery of a financial allocation, these amounts should be proportionally allocated to the other Member States. Appropriate contradictory procedures should be established to ensure that the decision by the Commission in relation to suspension and recovery of amounts paid as well as the termination of agreements related to financial support respects the right of Member States to submit observations.

Amendment 49

Proposal for a regulation

Recital 29 a (new)

Text proposed by the Commission

Amendment

(29a)

All Member States which benefit from the Social Climate Fund have an obligation to respect the fundamental values enshrined in Article 2 TEU. Respect for the rule of law is an essential precondition for compliance with the principles of sound financial management enshrined in Article 317 TFEU. The Commission should ensure the effective implementation of the horizontal rules for the protection of the Union budget in the case of breaches of the principles of the rule of law in the Member States in accordance with Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council (1a) . Where it is established that breaches of the principles of the rule of law in a Member State affect or seriously risk affecting the sound financial management of the Social Climate Fund or the protection of the financial interests of the Union in a sufficiently direct way, the Commission should take the necessary measures, which may include, among others, a suspension of payments, termination of the legal commitment within the meaning of the Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (1b) , a prohibition on entering into such legal commitments, or a suspension of the disbursement of instalments. In such cases, the Commission should take all necessary steps to ensure that the intended beneficiaries of the Fund do not suffer, and continue to have access to Union assistance, if needed, with the Commission ensuring disbursement via local and regional authorities, non-governmental organisations, or other entities with a proven capacity to ensure the sound financial management of the Fund.

Amendment 50

Proposal for a regulation

Recital 30 a (new)

Text proposed by the Commission

Amendment

(30a)

Respect for fundamental rights and compliance with the Charter of Fundamental Rights of the European Union, should be ensured throughout the preparation, evaluation, implementation and monitoring of eligible projects under the Fund. The Fund should contribute to eliminating inequalities, promoting gender equality and integrating the gender perspective, as well as combating discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation as set out in Article 2 of the TEU, Article 10 TFEU and Article 21 of the Charter of Fundamental Rights of the European Union.

Amendment 51

Proposal for a regulation

Article 1 — paragraph 3

Text proposed by the Commission

Amendment

The measures and investments supported by the Fund shall benefit households, micro-enterprises and transport users, which are vulnerable and particularly affected by the inclusion of greenhouse gas emissions from buildings and road transport into the scope of Directive 2003/87/EC , especially households in energy poverty and citizens without public transport alternative to individual cars ( in remote and rural areas).

The measures and investments supported by the Fund shall benefit households, micro-enterprises, and transport users, which are vulnerable and particularly affected by the impact of the transition towards climate neutrality, including by carbon pricing , especially households in energy poverty and citizens in mobility poverty, paying special attention to those living in rural, insular, peripheral, mountainous, remote and less accessible areas or less developed regions or territories, including less developed peri-urban areas, the outermost regions, and carbon-intensive regions with high unemployment .

Amendment 52

Proposal for a regulation

Article 1 — paragraph 4

Text proposed by the Commission

Amendment

The general objective of the Fund is to contribute to the transition towards climate neutrality by addressing the social impacts of the inclusion of greenhouse gas emissions from buildings and road transport into the scope of Directive 2003/87/EC. The specific objective of the Fund is to support vulnerable households, vulnerable micro-enterprises and vulnerable transport users through temporary direct income support and through measures and investments intended to increase energy efficiency of buildings, decarbonisation of heating and cooling of buildings, including the integration of energy from renewable sources, and granting improved access to zero- and low-emission mobility and transport.

The general objective of the Fund is to contribute to a socially fair transition towards climate neutrality that leaves no one behind, in particular by addressing the social impacts of the inclusion of greenhouse gas emissions from buildings and road transport into the scope of Directive 2003/87/EC. The specific objective of the Fund is to support vulnerable households, vulnerable micro-enterprises, and vulnerable transport users , especially those in energy poverty or mobility poverty through temporary direct income support and through measures and investments intended to increase energy efficiency of buildings, decarbonisation of heating and cooling of buildings, including the integration and storage of energy from renewable sources, and granting improved access to efficient and affordable mobility and transport in accordance with Article 6, with the objective to phase out gradually and not prolong fossil fuel dependency and avoid carbon lock-in .

Amendment 53

Proposal for a regulation

Article 2 — paragraph 1 — point 1

Text proposed by the Commission

Amendment

(1)

‘building renovation’ means all kinds of energy-related building renovation, including the insulation of the building envelope, that is to say walls, roof, floor, the replacement of windows, the replacement of heating, cooling and cooking appliances, and the installation of on-site production of energy from renewable sources;

(1)

‘building renovation’ means any kind of energy-related building renovation and accompanying safety measures , including by contributing to the renovation requirements established in Directive …/… [on the energy performance of buildings (recast) [2021/0426(COD)], aimed to reduce the building’s energy consumption, including: the insulation of the building envelope, that is to say walls, roof, floor, the replacement of windows ; passive ventilation; the installation of heat pumps and cooling systems; the replacement of heating, cooling and cooking appliances ; the upgrade of electrical installations and the installation of on-site production of energy from renewable sources , heat recuperation systems or the connection to nearby systems using energy and storage from renewable sources ;

Amendment 54

Proposal for a regulation

Article 2 — paragraph 1 — point 2

Text proposed by the Commission

Amendment

(2)	‘energy poverty’ means energy poverty as defined in point [(49)] of Article 2 of Directive (EU) [yyyy/nnn] of the of the European Parliament and of the Council (50);

(2)

‘energy poverty’ means poverty affecting households in the lowest income deciles, including lower middle-income ones that have a significant share of energy expenditure to disposable income, including as a result of low-quality housing, arrears on utility bills due to financial difficulties, or limited access to essential and affordable energy services that underpin a decent standard of living and health, including adequate warmth, cooling, lighting and energy to power appliances ;

Amendment 55

Proposal for a regulation

Article 2 — paragraph 1 — point 2 a (new)

Text proposed by the Commission

Amendment

(2a)

‘mobility poverty’ means poverty affecting households in the lowest deciles, including lower middle-incomes ones, that have a high share of mobility expenditure to disposable income or a limited access to affordable public or alternative modes of transport required to meet essential socio-economic needs, with a particular focus on households in rural, insular, peripheral, mountainous, remote and less accessible areas or less developed regions or territories, including less developed peri-urban areas and the outermost regions, caused by one or a combination of the following factors that depend on national or local specificities: low income, high fuel expenditures, the phase-out of internal combustion engine cars, high costs or lack of affordable or available public or alternative modes of transport;

Amendment 56

Proposal for a regulation

Article 2 — paragraph 1 — point 11

Text proposed by the Commission

Amendment

(11)	‘vulnerable households’ means households in energy poverty or households, including lower middle-income ones, that are significantly affected by the price impacts of the inclusion of buildings into the scope of Directive 2003/87/EC and lack the means to renovate the building they occupy;

(11)

‘vulnerable households’ means households in or at risk of energy poverty or households in the lowest income deciles , including lower middle-income ones, that are significantly affected by the impact of the transition towards climate neutrality, including by carbon pricing, and lack the means to renovate the building they occupy;

Amendment 57

Proposal for a regulation

Article 2 — paragraph 1 — point 12

Text proposed by the Commission

Amendment

(12)	‘vulnerable micro-enterprises’ means micro-enterprises that are significantly affected by the price impacts of the inclusion of buildings into the scope of Directive 2003/87/EC and lack the means to renovate the building they occupy;

(12)

‘vulnerable micro-enterprises’ means micro-enterprises that are significantly affected by the price impacts of the inclusion of greenhouse gas emissions from buildings and road transport into the scope of Directive 2003/87/EC , as part of the just transition towards climate neutrality, leaving no one behind, and lack the means to renovate the building they occupy or upgrade road vehicles on which they rely in the course of business ;

Amendment 58

Proposal for a regulation

Article 2 — paragraph 1 — point 13

Text proposed by the Commission

Amendment

(13)

‘vulnerable transport users’ means transport users, including from lower middle-income households, that are significantly affected by the price impacts of the inclusion of road transport into the scope of Directive 2003/87/EC and lack the means to purchase zero- and low-emission vehicles or to switch to alternative sustainable modes of transport , including public transport, particularly in rural and remote areas .

(13)

‘vulnerable transport users’ means transport users, including from lower middle-income households in the lowest income deciles, including lower middle-income ones , that are at risk of mobility poverty and significantly affected by the impact of the transition towards climate neutrality , including by carbon pricing .

Amendment 59

Proposal for a regulation

Article 3 — paragraph 1

Text proposed by the Commission

Amendment

1. Each Member State shall submit to the Commission a Social Climate Plan (‘the Plan’) together with the update to the integrated national energy and climate plan referred to in Article 14(2) of Regulation (EU) 2018/1999 in accordance with the procedure and timeline laid down in that Article and following a meaningful consultation of local and regional level authorities, economic and social partners and relevant civil society organisations . The Plan shall contain a coherent set of measures and investments to address energy and mobility poverty, in particular the impact of the transition towards climate neutrality, including the impact of carbon pricing on vulnerable households, vulnerable micro-enterprises, and vulnerable transport users in order to ensure affordable and sustainable heating, cooling and mobility while accompanying and accelerating necessary measures to meet the climate targets of the Union.

Amendment 60

Proposal for a regulation

Article 3 — paragraph 2

Text proposed by the Commission	Amendment
2. The Plan may include national measures providing temporary direct income support to vulnerable households and households that are vulnerable transport users to reduce the impact of the increase in the price of fossil fuels resulting from the inclusion of buildings and road transport into the scope of Directive 2003/87/EC .	2. The Plan may include national or, where applicable, regional measures providing temporary direct income support to vulnerable households and households that are vulnerable transport users to reduce the impact of the increase in the price of fossil fuels resulting from the transition towards climate neutrality, including by carbon pricing .

Amendment 61

Proposal for a regulation

Article 3 — paragraph 3 — introductory part

Text proposed by the Commission	Amendment
3. The Plan shall include national projects to:	3. The Plan shall include national , regional or local projects to:

Amendment 62

Proposal for a regulation

Article 3 — paragraph 3 — point a

Text proposed by the Commission

Amendment

(a)	finance measures and investments to increase energy efficiency of buildings, to implement energy efficiency improvement measures, to carry out building renovation, and to decarbonise heating and cooling of buildings, including the integration of energy production from renewable energy sources;

(a)

finance measures and investments to increase energy efficiency of buildings, to implement energy efficiency improvement measures, to carry out building renovation and accompanying safety measures, where appropriate in combination with improvements in line with fire and seismic safety standards , and to decarbonise heating and cooling of buildings, including the integration of energy production and storage of energy from renewable sources in accordance with Article 6 ;

Amendment 63

Proposal for a regulation

Article 3 — paragraph 3 — point b

Text proposed by the Commission

Amendment

(b)	finance measures and investments to increase the uptake of zero- and low-emission mobility and transport.

(b)	finance measures and investments to increase the uptake of mobility and transport , including by directing measures and investments towards a modal shift from private to public, shared and active mobility, in accordance with Article 6 .

Amendment 64

Proposal for a regulation

Article 4 — paragraph 1 — point -a (new)

Text proposed by the Commission

Amendment

(-a)

detailed quantitative information on energy and mobility poverty concerning the following:

(i)	the definition, in exact terms, of energy and mobility poverty applied at national level, on the basis of the definitions set out in Article 2;

(ii)	a mapping of the number of vulnerable households, vulnerable micro-enterprises, and vulnerable transport users identified at the start of the Plan, on the basis of the definitions set out in Article 2, to identify the potential beneficiaries of the Plan;

(iii)

national targets and objectives to reduce the number of vulnerable households, vulnerable micro-enterprises, and vulnerable transport users over the duration of the Plan;

Amendment 65

Proposal for a regulation

Article 4 — paragraph 1 — point a

Text proposed by the Commission

Amendment

(a)

concrete measures and investments in accordance with Article 3 to reduce the effects referred to in point (c) of this paragraph together with an explanation of how they would contribute effectively to the achievement of the objectives set out in Article 1 within the overall setting of a Member State’s relevant policies;

(a)

concrete measures and investments in accordance with Articles 3 and 6 to address the effects referred to in point (c) of this paragraph together with an explanation of how they would contribute effectively to the achievement of the objectives set out in Article 1 within the overall setting of a Member State’s relevant policies;

Amendment 66

Proposal for a regulation

Article 4 — paragraph 1 — point b a (new)

Text proposed by the Commission

Amendment

(ba)	the coherence and mutual reinforcement of the accompanying measures to reduce the effects referred to in point (c);

Amendment 67

Proposal for a regulation

Article 4 — paragraph 1 — point c

Text proposed by the Commission

Amendment

(c)

an estimate of the likely effects of that increase in prices on households, and in particular on incidence of energy poverty , on micro-enterprises and on transport users, comprising in particular an estimate and the identification of vulnerable households, vulnerable micro-enterprises and vulnerable transport users; these impacts are to be analysed with a sufficient level of regional disaggregation, taking into account elements such as access to public transport and basic services and identifying the areas mostly affected, particularly territories which are remote and rural ;

(c)

an estimate of the likely effects of a price increase on energy poverty and mobility poverty, on vulnerable households, vulnerable micro-enterprises, and vulnerable transport users; these impacts are to be analysed with a sufficient level of regional disaggregation taking into account national specificities and elements such as access to public transport and basic services and identifying the areas mostly affected, particularly territories which are rural, insular, peripheral, mountainous, remote and less accessible areas or less developed regions or territories, including less developed peri-urban areas and the outermost regions which will need particular attention and support for the transition towards climate neutrality ;

Amendment 68

Proposal for a regulation

Article 4 — paragraph 1 — point d

Text proposed by the Commission

Amendment

(d)

where the Plan provides for measures referred to in Article 3(2), the criteria for the identification of eligible final recipients, the indication of the envisaged time limit for the measures in question and their justification on the basis of a quantitative estimate and a qualitative explanation of how the measures in the Plan are expected to reduce energy and transport poverty and the vulnerability of households, micro-enterprises and transport users to an increase of road transport and heating fuel prices;

(d)

where the Plan provides for measures referred to in Article 3(2), the criteria for the identification of eligible final recipients, the indication of the envisaged time limit for the measures in question and their justification on the basis of a quantitative estimate and a qualitative explanation of how the measures in the Plan are expected to reduce energy and mobility poverty and the vulnerability of households, micro-enterprises and transport users to an increase of road transport and heating fuel prices; as well as a justification on how those measures complement existing activities of Member States to that effect;

Amendment 69

Proposal for a regulation

Article 4 — paragraph 1 — point e

Text proposed by the Commission

Amendment

(e)	envisaged milestones, targets and an indicative timetable for the implementation of the measures and investments to be completed by 31 July 2032;

(e)	envisaged milestones, targets and an indicative timetable for the implementation of the measures and investments to be completed by each biennial integrated national energy and climate progress report pursuant to Article 23 and by 31 July 2032;

Amendment 70

Proposal for a regulation

Article 4 — paragraph 1 — point e a (new)

Text proposed by the Commission

Amendment

(ea)	an indicative timetable, where applicable, for the support for vehicles in accordance with Article 6(2), point (d);

Amendment 71

Proposal for a regulation

Article 4 — paragraph 1 — point e b (new)

Text proposed by the Commission

Amendment

(eb)	how the measures and investments, where relevant, promote sustainable and quality jobs;

Amendment 72

Proposal for a regulation

Article 4 — paragraph 1 — point i

Text proposed by the Commission

Amendment

(i)

the arrangements for the effective monitoring and implementation of the Plan by the Member State concerned, in particular of the proposed milestones and targets, including indicators for the implementation of measures and investments, which, where relevant, shall be those available with the Statistical office of the European Union European Statistical Office and the European Energy Poverty Observatory as identified by Commission Recommendation (EU) 2020/1563 (54) on energy poverty;

(i)

the arrangements for the effective monitoring and implementation of the Plan by the Member State concerned , to be undertaken in close consultation with local and regional level authorities, economic and social partners and relevant civil society organisations in accordance with national law and practices , in particular of the proposed milestones and targets, including indicators for the implementation of measures and investments, which, where relevant, shall be those available with the Statistical office of the European Union European Statistical Office and the European Energy Poverty Observatory as identified by Commission Recommendation (EU) 2020/1563 (54) on energy poverty;

Amendment 73

Proposal for a regulation

Article 4 — paragraph 1 — point j

Text proposed by the Commission

Amendment

(j)

for the preparation and, where available, for the implementation of the Plan, a summary of the consultation process, conducted in accordance with Article 10 of Regulation (EU) 2018/1999 and with the national legal framework, of local and regional authorities, social partners, civil society organisations, youth organisations and other relevant stakeholders, and how the input of the stakeholders is reflected in the Plan;

(j)

for the preparation and, where available, for the implementation of the Plan, a summary of the consultation process, conducted in accordance with Article 10 of Regulation (EU) 2018/1999 and Article 8 of Regulation (EU) 2021/1060 and with the national legal framework, of local and regional authorities, social partners, civil society organisations, youth organisations and other relevant stakeholders, and how the input of the stakeholders is reflected in the Plan as well as their specific roles on the design, implementation and monitoring ;

Amendment 74

Proposal for a regulation

Article 4 — paragraph 1 — point k a (new)

Text proposed by the Commission

Amendment

(ka)	the proportion of the Fund set aside for community-led local climate transition projects.

Amendment 75

Proposal for a regulation

Article 4 — paragraph 2 a (new)

Text proposed by the Commission	Amendment
	2a. The Commission is empowered to adopt, within … [insert date three months from the entry into force of this Regulation], a delegated act in accordance with Article 25 to supplement this Regulation by setting out a template based on which Member States are to prepare their Plan.

Amendment 76

Proposal for a regulation

Article 5 — paragraph 2 — introductory part

Text proposed by the Commission	Amendment
2. Payment of support shall be conditional upon achieving the milestones and targets for measures and investments set out in the Plans. Those milestones and targets shall be compatible with the Union’s climate targets and cover in particular:	2. Payment of support shall be made in accordance with the costs indicated to achieve the milestones and targets for measures and investments set out in the Plans in accordance with Article 6 . Those milestones and targets shall be compatible with the Union’s climate targets , in line with the principles of the European Pillar of Social Rights, and cover in particular:

Amendment 77

Proposal for a regulation

Article 5 — paragraph 2 — point b

Text proposed by the Commission

Amendment

(b)	building renovation;

(b)	building renovation , including by contributing to the achievement of the renovation requirements established in Directive …/… [on the energy performance of buildings (recast) [2021/0426(COD)] ;

Amendment 78

Proposal for a regulation

Article 5 — paragraph 2 — point c

Text proposed by the Commission

Amendment

(c)	zero- and low-emission mobility and transport;

(c)	mobility and transport in accordance with Article 6 ;

Amendment 79

Proposal for a regulation

Article 5 — paragraph 2 — point d

Text proposed by the Commission

Amendment

(d)	greenhouse gas emissions reductions;

(d)	greenhouse gas emissions reductions , with the objective to phase out gradually and not prolong fossil fuel dependency and avoid carbon lock-in, relating to measures and investments in accordance with Article 6 ;

Amendment 80

Proposal for a regulation

Article 5 — paragraph 2 — point e

Text proposed by the Commission

Amendment

(e)	reductions in the number of vulnerable households, especially households in energy poverty, of vulnerable micro-enterprises and of vulnerable transport users, including in rural and remote areas.

(e)

reductions in the number of vulnerable households, i.e. households in or at risk of energy poverty, of vulnerable micro-enterprises and of vulnerable transport users, including in rural , insular, peripheral, mountainous, remote and less accessible areas or less developed regions or territories, including less developed peri-urban areas and the outermost regions which will need particular attention and support for the transition towards climate neutrality;

Amendment 81

Proposal for a regulation

Article 5 — paragraph 2 — point e a (new)

Text proposed by the Commission

Amendment

(ea)	contribution to, where relevant, sustainable and quality jobs.

Amendment 82

Proposal for a regulation

Article 5 — paragraph 3

Text proposed by the Commission	Amendment
3. The Fund shall only support measures and investments respecting the principle of ‘do no significant harm’ referred to in Article 17 of Regulation (EU) 2020/852 .	3. The Fund shall only support measures and investments that are consistent with the technical criteria established in the framework of Regulation (EU) 2020/852 and respecting the principle of ‘do no significant harm’ referred to in Article 17 of that Regulation.
	Recipients of the Fund shall respect applicable Union and national law on social and labour rights .

Amendment 83

Proposal for a regulation

Article 6 — paragraph 1

Text proposed by the Commission

Amendment

1. Member States may include the costs of measures providing temporary direct income support to vulnerable households and vulnerable households that are transport users to absorb the increase in road transport and heating fuel prices. Such support shall decrease over time and be limited to the direct impact of the emission trading for buildings and road transport . Eligibility for such direct income support shall cease within the time limits identified under Article 4(1) point (d) .

1. Member States may include the costs of measures providing temporary direct income support , including the reduction of electricity taxes and fees, as a transitional measure to vulnerable households and vulnerable transport users affected by energy poverty or mobility poverty, to absorb the increase in road transport and heating fuel prices. Such support shall constitute intermediary support to those vulnerable households, decreasing over time , subject to the implementation of structural measures or investments with long-lasting impacts to effectively lift those beneficiaries out of energy and mobility poverty . Such support shall be limited to a maximum of 40 % of the total estimated cost of each Plan for the period 2024-2027 and shall be set for the period 2028-2032 in accordance with the assessment by the Commission made in accordance with Article 24(3), with a view to phasing out such support by the end of 2032 .

Amendment 84

Proposal for a regulation

Article 6 — paragraph 2 — introductory part

Text proposed by the Commission	Amendment
2. Member States may include the costs of the following measures and investments in the estimated total costs of the Plans, provided they principally benefit vulnerable households, vulnerable micro-enterprises or vulnerable transport users and intend to:	2. Member States may include the costs of the following measures and investments with lasting impacts in the estimated total costs of the Plans, provided they principally benefit vulnerable households, vulnerable micro-enterprises, or vulnerable transport users and intend to:

Amendment 85

Proposal for a regulation

Article 6 — paragraph 2 — point a

Text proposed by the Commission

Amendment

(a)	support building renovations, especially for those occupying worst-performing buildings, including in the form of financial support or fiscal incentives such as deductibility of renovation costs from the rent, independently of the ownership of the buildings concerned;

(a)

support quality, cost- and energy efficient building renovations, especially to contribute to the achievement of the renovation requirements established in Directive …/… [on the energy performance of buildings (recast) [2021/0426(COD)]] and for those occupying worst-performing buildings , with a special attention to tenants and social housing , including in the form of financial support or fiscal incentives such as deductibility of renovation costs from the rent or specific support for the renovation of social housing in order to facilitate access to affordable energy-efficient housing independently of the ownership of the buildings concerned;

Amendment 86

Proposal for a regulation

Article 6 — paragraph 2 — point a a (new)

Text proposed by the Commission

Amendment

(aa)	ensure access to affordable energy-efficient housing, including by providing sufficient energy-efficient and affordable housing stock, including social housing;

Amendment 87

Proposal for a regulation

Article 6 — paragraph 2 — point b

Text proposed by the Commission

Amendment

(b)	contribute to the decarbonisation, including the electrification, of heating and cooling of, and cooking in, buildings and the integration of energy from renewable sources that contribute to the achievements of energy savings;

(b)

contribute to the cost-efficient decarbonisation, including the electrification, of heating and cooling of, and cooking in, buildings by ensuring access to affordable and energy-efficient systems, and the integration and storage of energy from renewable sources , including through citizen energy communities and peer-to-peer energy sharing, to power any residual demand, smart internal electricity installations or cover connection costs to smart grids and any other measures that contribute unequivocally to the achievements of energy savings as well as connection to district heating networks, such as vouchers, subsidies or zero-interest loans to invest in products and services to increase the energy performance of buildings or to integrate renewable energy sources in buildings ;

Amendment 88

Proposal for a regulation

Article 6 — paragraph 2 — point b a (new)

Text proposed by the Commission

Amendment

(ba)

provide targeted, accessible and affordable information, education, awareness and advice on cost-effective measures and investments and available support for building renovations and energy efficiency, as well as sustainable and affordable mobility and transport alternatives, including through energy audits of buildings, tailored energy consultations or tailored mobility management services;

Amendment 89

Proposal for a regulation

Article 6 — paragraph 2 — point c

Text proposed by the Commission

Amendment

(c)	support public and private entities in developing and providing affordable energy efficiency renovation solutions and appropriate funding instruments in line with the social goals of the Fund;

(c)

support public and private entities , including social-housing providers, in particular public-private cooperation, in developing and providing safe and affordable energy efficiency renovation solutions and appropriate funding instruments in line with the social goals of the Fund , including smart-grid solutions ;

Amendment 90

Proposal for a regulation

Article 6 — paragraph 2 — point d

Text proposed by the Commission

Amendment

(d)

provide access to zero- and low-emission vehicles and bikes , including financial support or fiscal incentives for their purchase as well as for appropriate public and private infrastructure, including for recharging and refuelling; for support concerning low-emission vehicles, a timetable for gradually reducing the support shall be provided ;

(d)

provide financial support or fiscal incentives to improve access to zero- emission vehicles, while maintaining technological neutrality, and to bicycles, including incentivising access to, and the further development of, the second-hand zero-emission vehicles market , including financial support or fiscal incentives for their purchase, for appropriate public and private infrastructure, including for recharging and refuelling for support concerning the purchase of zero-emission vehicles; the support shall be limited to vehicles which are available at or below the average market price for such vehicles in a Member State in a given year; measures to support low-emission vehicles shall be primarily considered only where access to zero-emission mobility is not yet feasible , in particular for rural, remote and less accessible areas. Member States shall provide a timetable for gradually reducing the support , in accordance with the technical criteria established by the Commission under Commission Delegated Regulation (EU) 2021/2139 ;

Amendment 91

Proposal for a regulation

Article 6 — paragraph 2 — point e

Text proposed by the Commission

Amendment

(e)	grant free access to public transport or adapted tariffs for access to public transport, as well as fostering sustainable mobility on demand and shared mobility services;

(e)

incentivise the use of affordable and accessible zero- and low-emission public transport, as well as supporting private and public entities, including cooperatives, in developing and providing sustainable mobility on demand, shared mobility services and attractive active mobility options, especially in rural, insular, mountainous, remote and less accessible areas, in less developed regions or territories, including less developed peri-urban areas and the outermost regions ;

Amendment 92

Proposal for a regulation

Article 6 — paragraph 2 a (new)

Text proposed by the Commission	Amendment
	2a. Member States shall promote, where relevant, sustainable and quality jobs when implementing the measures and investments in accordance with paragraph 2.

Amendment 93

Proposal for a regulation

Article 6 — paragraph 2 b (new)

Text proposed by the Commission

Amendment

2b. By 31 July 2023, the Commission shall provide guidance on cost-effective measures and investments in the context of paragraph 2. By 31 July 2026 and every two years thereafter, the Commission shall evaluate the cost-effectiveness of the measures and investments implemented by the Member States as part of their Plans on the basis of the biennial integrated national energy and climate progress report pursuant to Article 23. The Commission shall report on best practices and shall adjust the guidance accordingly.

Amendment 94

Proposal for a regulation

Article 7 — paragraph 1 — introductory part

Text proposed by the Commission	Amendment
1. The Fund shall not support, and the estimated total costs of Plans shall not include measures in the form of direct income support pursuant to Article 3(2) of this Regulation for households already benefiting:	1. The Fund shall not replace measures in the form of direct income support pursuant to Article 3(2) of this Regulation to the extent that those are additional and complementary to the support provided for households already benefiting:

Amendment 95

Proposal for a regulation

Article 7 — paragraph 1 — point a

Text proposed by the Commission

Amendment

(a)	from public intervention in the price level of the fuels covered by Chapter IVa of Directive 2003/87/EC ;

(a)	from public intervention in the price level of the fuels used for combustion in the heating and cooling of buildings or road transport ;

Amendment 96

Proposal for a regulation

Article 7 — paragraph 2

Text proposed by the Commission	Amendment
2. Where it is proven by the Member State concerned in its Plan that the public interventions referred to in paragraph 1 do not fully off-set the price increase resulting from the inclusion of the sectors of buildings and road transport into the scope of Directive 2003/87/EC , direct income support may be included in the estimated total costs in the limits of the price increase not fully off-set.	2. Where it is proven by the Member State concerned in its Plan that the public interventions referred to in paragraph 1 do not fully off-set the price increase, direct income support may be included in the estimated total costs in the limits of the price increase not fully off-set.

Amendment 97

Proposal for a regulation

Article 8 — paragraph 1

Text proposed by the Commission

Amendment

Member States may include into the estimated total costs financial support provided to public or private entities other than vulnerable households, vulnerable micro-enterprises and vulnerable transport uses, if those entities carry out measures and investments ultimately benefitting vulnerable households, vulnerable micro-enterprises and vulnerable transport users.

Member States may include into the estimated total costs financial support provided to public or private entities , strictly excluding financial intermediaries, other than vulnerable households, vulnerable micro-enterprises and vulnerable transport users in energy poverty or mobility poverty , if those entities carry out measures and investments on their behalf and which ultimately directly benefit those vulnerable households, vulnerable micro-enterprises, and vulnerable transport users provided that these entities comply with the social and environmental safeguards referred to in Article 5 .

Amendment 98

Proposal for a regulation

Article 8 — paragraph 2

Text proposed by the Commission	Amendment
Member States shall provide for the necessary statutory and contractual safeguards to ensure that the entire benefit is passed on to the households, micro-enterprises and transport users.	Member States shall provide for the necessary statutory and contractual safeguards to ensure that the entire benefit is passed on to the households, micro-enterprises, and transport users. Such entities shall comply with the requirements on visibility set out in Article 22a.
	The Commission shall issue guidance on minimum principles and safeguards and promote best practices.

Amendment 99

Proposal for a regulation

Article 9 — paragraph 1

Text proposed by the Commission

Amendment

1. The financial envelope for the implementation of the Fund for the period 2025 -2027 shall be EUR 23 700 000 000 in current prices.

1. The financial envelope for the implementation of the Fund for the period [date of entry into force] -2027 shall be at least EUR 11 140 000 000 in current prices. The Fund shall be complemented by revenue resulting from the auctioning of 150 million allowances in accordance with Article 30d(3) of [ETS Directive] [5 250 000 000 indicative amount] for this period. That funding shall be implemented in accordance with this Regulation.

Amendment 100

Proposal for a regulation

Article 9 — paragraph 2

Text proposed by the Commission

Amendment

2. The financial envelope for the implementation of the Fund for the period 2028-2032 shall be EUR 48 500 000 000 in current prices , subject to the availability of the amounts under the annual ceilings of the applicable multiannual financial framework referred to in Article 312 TFEU.

2. The financial envelope for the implementation of the Fund for the period 2028-2032 shall be established after a revision of this Regulation , subject to the availability of the amounts under the annual ceilings of the applicable multiannual financial framework referred to in Article 312 TFEU and the assessment and, where appropriate and if the conditions are met, targeted review in accordance with [Article 30a(1a)] of Directive 2003/87/EC .

Amendment 101

Proposal for a regulation

Article 9 — paragraph 2 a (new)

Text proposed by the Commission

Amendment

2a. Additional allocations shall be made available subject to the specific technical adjustment based on the carbon-price fluctuation provided for in Article 4b of … [Council Regulation (EU, Euratom) 2020/2093 (1a) as amended] so as to ensure that the available appropriations for the Social Climate Fund in the Union budget increase in alignment with the carbon price. The prolongation of the specific technical adjustment based on carbon-price fluctuation shall be considered in the context of the negotiations of the applicable multiannual financial framework.

Amendment 102

Proposal for a regulation

Article 9 — paragraph 2 b (new)

Text proposed by the Commission

Amendment

2b. In accordance with [Article 30d(5)] of Directive 2003/87/EC, Member States shall use revenues from the allowances auctioned in accordance with Chapter IVa of Directive 2003/87/EC first for the national co-financing of their Plans and, for any remaining revenue, for social climate measures and investments in accordance with Article 6 of this Regulation, except for the revenues established as own resources in accordance with Article 311(3) TFEU and entered in the Union budget as general income.

Amendment 103

Proposal for a regulation

Article 10 a (new)

Text proposed by the Commission

Amendment

Article 10a

Specific challenges facing island Member States, islands and the outermost regions

When preparing their social climate plans in accordance with Article 3, Member States shall take particular account of the situation of the island Member States, islands and the outermost regions. Island Member States, islands and the outermost regions face serious socio-economic challenges deriving from the green transition towards climate neutrality and net-zero emissions, having regard to their specific needs and social impacts. An adequate minimum amount of funds shall be allocated to those territories with the corresponding justification, taking into account the particular challenges of those territories.

Amendment 104

Proposal for a regulation

Article 12 — paragraph 1

Text proposed by the Commission

Amendment

1. Support under the Fund shall be additional to the support provided under other Union funds, programmes and instruments. Measures and investments supported under the Fund may receive support from other Union funds, programmes and instruments provided that such support does not cover the same cost.

1. Support under the Fund shall be additional to, and used in synergy, complementarity, coherence and consistency with, the support provided under other Union , national and, where appropriate, regional funds, programmes and instruments , in particular the Modernisation Fund, the InvestEU Programme, the Technical Support Instrument, the Recovery and Resilience Facility, and the Funds covered by Regulation (EU) 2021/1060 . Measures and investments supported under the Fund may receive support from other Union funds, programmes and instruments provided that such support does not cover the same cost.

Amendment 105

Proposal for a regulation

Article 13 — paragraph 1

Text proposed by the Commission	Amendment
1. The maximum financial allocation shall be calculated for each Member State as specified in Annex I and Annex II.	1. Without prejudice to Article 9(1a), the maximum financial allocation shall be calculated for each Member State as specified in Annex I and Annex II.

Amendment 106

Proposal for a regulation

Article 13 — paragraph 2 a (new)

Text proposed by the Commission	Amendment
	2a. Each Member State may submit a request up to its maximum financial allocation to implement its Plan and up to the maximum of its share of the additional allocation made available pursuant to Article 9(1a), as specified in Annex II and based on the methodology for the calculation as referred to in Annex I.

Amendment 107

Proposal for a regulation

Article 13 a (new)

Text proposed by the Commission

Amendment

Article 13a

Pre-financing

1. Subject to the adoption by the Commission of the implementing act referred to in Article 16(1) of this Regulation, when a Member State requests pre-financing together with the submission of the Plan, the Commission shall make a pre-financing payment of an amount of up to 13 % of the financial contribution referred to in Article [] of this Regulation. By way of derogation from Article 116(1) of Regulation (EU, Euratom) 2018/1046, the Commission shall make the corresponding payment within, to the extent possible, two months after the conclusion by the Commission of the individual legal commitment referred to in Article 18 of this Regulation.

2. In cases of pre-financing under paragraph 1 of this Article, the financial contributions referred to in Article [] shall be adjusted proportionally.

Amendment 108

Proposal for a regulation

Article 14 — paragraph 1 — subparagraph 1 a (new)

Text proposed by the Commission

Amendment

By way of derogation from the first subparagraph, Member States shall contribute at least to 60 % of the total estimated costs of the measures and investments referred to in Article 6(1) in their Plans. The contribution of Member States with a gross domestic product (GDP) per capita at market prices below 65 % of the Union average during the period 2016 to 2018 shall be limited to a maximum of 40 % of the total estimated costs of the measures and investments referred to in Article 6(2) in their Plans.

Amendment 109

Proposal for a regulation

Article 14 — paragraph 2

Text proposed by the Commission	Amendment
2. Member States shall inter alia use revenues from the auctioning of their allowances in accordance with Chapter IVa of Directive 2003/87/EC for their national contribution to the total estimated costs of their Plans.	2. Member States shall first use any revenues from the auctioning of their allowances in accordance with Chapter IVa of Directive 2003/87/EC for their national contribution to the total estimated costs of their Plans.

Amendment 110

Proposal for a regulation

Article 15 — paragraph 2 — point a — point i

Text proposed by the Commission

Amendment

(i)

whether the Plan represents a response to the social impact on and challenges faced by vulnerable households, vulnerable micro-enterprises and vulnerable transport users in the Member State concerned from establishing the emission trading system for buildings and road transport established pursuant to Chapter IVa of Directive 2003/87/EC , especially households in energy poverty, duly taking into account the challenges identified in the assessments of the Commission of the update of the concerned Member State’s integrated national energy and climate plan and of its progress pursuant to Article 9(3), and Articles 13 and 29 of Regulation (EU) 2018/1999, as well as in the Commission recommendations to Member States issued pursuant to Article 34 of Regulation (EU) 2018/1999 in view of the long-term objective of climate neutrality in the Union by 2050. This shall take into account the specific challenges and the financial allocation of the Member State concerned;

(i)

whether the Plan represents an adequate and effective response to the social impact on and challenges faced by vulnerable households, vulnerable micro-enterprises, and vulnerable transport users in the Member State concerned from the impact of the transition towards climate neutrality, including by carbon pricing , especially by households in energy poverty and mobility poverty, duly taking into account the challenges identified in the assessments of the Commission of the update of the concerned Member State’s integrated national energy and climate plan and of its progress pursuant to Article 9(3), and Articles 13 and 29 of Regulation (EU) 2018/1999, as well as in the Commission recommendations to Member States issued pursuant to Article 34 of Regulation (EU) 2018/1999 in view of the Union’s 2030 climate and energy targets and objectives and the long-term objective of climate neutrality in the Union by 2050. This shall take into account the specific challenges and the financial allocation of the Member State concerned;

Amendment 111

Proposal for a regulation

Article 15 — paragraph 2 — point a — point i a (new)

Text proposed by the Commission

Amendment

(ia)

whether the Plan has been developed with the meaningful consultation, of local and regional level authorities, economic and social partners, and relevant civil society organisations in accordance with the principles of the European code of conduct on partnerships established by Commission Delegated Regulation (EU) No 240/2014;

Amendment 112

Proposal for a regulation

Article 15 — paragraph 2 — point a — point ii

Text proposed by the Commission

Amendment

(ii)	whether the Plan is expected to ensure that no measure or investment included in the Plan does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852;

(ii)	whether the Plan is expected to ensure that measures and investments included in the Plan do not cause significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852;

Amendment 113

Proposal for a regulation

Article 15 — paragraph 2 — point a — point ii a (new)

Text proposed by the Commission

Amendment

(iia)

whether the recipients of the Fund respect applicable Union and national law on social and labour rights;

Amendment 114

Proposal for a regulation

Article 15 — paragraph 2 — point a — point iii

Text proposed by the Commission

Amendment

(iii)

whether the Plan contains measures and investments that contribute to the green transition, including to addressing the challenges resulting therefrom and in particular to the achievement of the 2030 climate and energy objectives of the Union and the 2030 milestones of the Mobility Strategy.

(iii)

whether the Plan contains innovative and existing measures and effective investments in solutions that contribute to the green transition, including to addressing the challenges resulting therefrom , addressing the social impacts and in particular to the achievement of the 2030 and 2050 climate and energy objectives of the Union and the 2030 milestones of the Mobility Strategy.

Amendment 115

Proposal for a regulation

Article 15 — paragraph 2 — point b — point i

Text proposed by the Commission

Amendment

(i)	whether the Plan is expected to have a lasting impact on the challenges addressed by that Plan and in particular on vulnerable households, vulnerable micro-enterprises and vulnerable transport users, especially households in energy poverty, in the Member State concerned;

(i)

whether the Plan is expected to have a lasting impact on the Union’s 2030 target, on climate neutrality and on the challenges addressed by that Plan and in particular on vulnerable households, vulnerable micro-enterprises, and vulnerable transport users, especially households in energy poverty and mobility poverty , in the Member State concerned;

Amendment 116

Proposal for a regulation

Article 15 — paragraph 2 — point b — point iii a (new)

Text proposed by the Commission

Amendment

(iiia)

whether the measures and investments proposed by the Member State concerned are internally coherent and foster complementarity, synergy, coherence and consistency with other Union instruments and programmes;

Amendment 117

Proposal for a regulation

Article 15 — paragraph 2 — point b — point iii b (new)

Text proposed by the Commission

Amendment

(iiib)

whether the Plan contributes, where relevant, to sustainable and quality jobs;

Amendment 118

Proposal for a regulation

Article 15 — paragraph 2 — point c — point i

Text proposed by the Commission

Amendment

(i)	whether the justification provided by the Member State for the amount of the estimated total costs of the Plan is reasonable, plausible, in line with the principle of cost efficiency and commensurate to the expected national environmental and social impact;

(i)

whether the justification provided by the Member State for the amount of the estimated total costs of the Plan is reasonable, plausible, in line with the principle of cost efficiency and commensurate to the expected national environmental and social impact , while also taking into account national specificities that may impact the costs provided in the Plan ;

Amendment 119

Proposal for a regulation

Article 16 — paragraph 1 — subparagraph 1

Text proposed by the Commission	Amendment
On the basis of the assessment in accordance with Article 15, the Commission shall decide on the Plan of a Member State, by means of an implementing act, within six months from the date of the submission of that Plan pursuant to Article 3(1) of this Regulation.	On the basis of the assessment in accordance with Article 15, the Commission shall decide on the Plan of a Member State, by means of an implementing act, within three months from the date of the submission of that Plan pursuant to Article 3(1) of this Regulation.

Amendment 120

Proposal for a regulation

Article 16 — paragraph 1 — subparagraph 2 — point b

Text proposed by the Commission

Amendment

(b)

the Union financial allocation allocated in accordance with Article 13 of this Regulation to be paid in instalments once the Member State has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the Plan, which shall be subject, for the period 2028-2032, to the availability of the amounts referred to in Article 9(2) of this Regulation under the annual ceilings of the multiannual financial framework referred to in Article 312 TFEU;

(b)

the Union financial allocation allocated in accordance with Articles 13 and 13a of this Regulation to be paid in pre-financing and instalments once the Member State has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the Plan, which shall be subject, for the period 2028-2032, to the availability of the amounts referred to in Article 9(2) of this Regulation under the annual ceilings of the multiannual financial framework referred to in Article 312 TFEU;

Amendment 121

Proposal for a regulation

Article 16 — paragraph 1 a (new)

Text proposed by the Commission

Amendment

1a. A Member State may start implementing measures and investments set out in its Plan as of … [insert the date of entry into application of this Regulation], before the Commission gives a positive decision under paragraph 1. This shall be without prejudice to the outcome of the Commission's assessment under Article 15 and its power to approve or reject the Plan. The Union financial allocation in respect of such ongoing measures and investments shall remain conditional on the approval of the Plan by means of the Commission decision and on the fulfilment of the relevant milestones and targets by such a Member State. Where the Commission gives a positive assessment of the Plan, its decision referred to in paragraph 1 shall also include, where relevant, such ongoing measures and investments and take into account the fact that they are already being implemented.

Amendment 122

Proposal for a regulation

Article 17 — paragraph 1

Text proposed by the Commission

Amendment

1. Where a Social Climate Plan, including relevant milestones and targets, is no longer achievable, either in whole or in part, by the Member State concerned because of objective circumstances , in particular because of the actual direct effects of the emission trading system for buildings and road transport established pursuant to Chapter IVa of Directive 2003/87/EC, the Member State concerned may submit to the Commission an amendment of its Plan to include the necessary and duly justified changes. Member States may request technical support for the preparation of such request.

1. Where a Social Climate Plan, including relevant milestones and targets, is no longer achievable, either in whole or in part, by the Member State concerned because of objective circumstances the Member State concerned may , following, the meaningful consultation of relevant stakeholders in accordance with the principles of the European code of conduct on partnerships established by Commission Delegated Regulation (EU) No 240/2014 submit to the Commission an amendment of its Plan to include the necessary and duly justified changes. Member States may request technical support for the preparation of such request.

Amendment 123

Proposal for a regulation

Article 17 — paragraph 1 a (new)

Text proposed by the Commission

Amendment

1a. Where additional allocations are made available pursuant to Article 9(1a), the Member State concerned may submit a targeted amendment of its Plan to the Commission in order to:

(a)	increase the number of beneficiaries of, or the costs borne by, a measure or investment set out in its Plan;

(b)	add measures or investments in accordance with Article 6.

Amendment 124

Proposal for a regulation

Article 17 — paragraph 3

Text proposed by the Commission

Amendment

3. Where the Commission gives a positive assessment to the amended Plan, it shall in accordance with Article 16(1) adopt, within three months of the official submission of the amended Plan by the Member State, a decision setting out the reasons for its positive assessment, by means of an implementing act.

Amendment 125

Proposal for a regulation

Article 17 — paragraph 5

Text proposed by the Commission

Amendment

5. By 15 March 2027 each Member State concerned shall assess the appropriateness of its Plans in view of the actual direct effects of the emission trading system for buildings and road transport established pursuant to Chapter IVa of Directive 2003/087/EC . Those assessments shall be submitted to the Commission as part of the biennial progress reporting pursuant to Article 17 of Regulation (EU) 2018/1999.

5. By 15 March 2027 each Member State concerned shall assess the appropriateness of its Plans in view of the actual direct effects of the impact of the transition towards climate neutrality, including by carbon pricing . Those assessments shall be submitted to the Commission as part of the biennial progress reporting pursuant to Article 17 of Regulation (EU) 2018/1999.

Amendment 126

Proposal for a regulation

Article 18 — paragraph 1

Text proposed by the Commission

Amendment

1. After the Commission has adopted a decision as referred to in Article 16, it shall in due time conclude an agreement with the Member State concerned constituting an individual legal commitment within the meaning of Regulation (EU, Euratom) 2018/1046 covering the period 2025- 2027. That agreement may be concluded at the earliest one year before the year of the start of the auctions under Chapter IVa of Directive 2003/87/EC.

1. After the Commission has adopted a decision as referred to in Article 16, it shall in due time conclude an agreement with the Member State concerned constituting an individual legal commitment within the meaning of Regulation (EU, Euratom) 2018/1046 covering the period from … [the date of entry into force of this Regulation] until 2027.

Amendment 127

Proposal for a regulation

Article 19 — paragraph 4 — subparagraph 1

Text proposed by the Commission

Amendment

Where, as a result of the assessment referred to in paragraph 3 , the Commission establishes that the milestones and targets set out in the Commission decision referred to in Article 16 have not been satisfactorily fulfilled, the payment of all or part of the financial allocation shall be suspended. The Member State concerned may present its observations within one month of the communication of the Commission’s assessment.

Where, as a result of the assessment referred to in paragraph 2 , the Commission establishes that the milestones and targets set out in the Commission decision referred to in Article 16 have not been satisfactorily fulfilled, the payment of all or part of the financial allocation shall be suspended. The amount of the financial allocation suspended shall be in line with the costs of the measures for which the milestones and targets are not satisfactorily met. The Member State concerned may present its observations within one month of the communication of the Commission’s assessment.

Amendment 128

Proposal for a regulation

Article 19 — paragraph 4 a (new)

Text proposed by the Commission

Amendment

4a. Where the Commission establishes that the Member State concerned under this Article has not brought into force the law, regulations and administrative provisions necessary to comply with Directive (EU) [yyyy/nnn] of the European Parliament and the Council amending Chapter IVa of Directive …/…/EC [(COD)2021/0211], the payment of the financial allocation shall be suspended. The suspension shall only be lifted where the Member State concerned has brought those laws, regulations and administrative provisions into force.

Amendment 129

Proposal for a regulation

Article 19 — paragraph 7

Text proposed by the Commission

Amendment

7. Where, within 12 months of the date of the conclusion of relevant agreements referred to in Article 18, no tangible progress has been made in respect of any relevant milestones and targets by the Member State concerned, the Commission shall terminate the relevant agreements referred to in Article 18 and shall de-commit the amount of the financial allocation. The Commission shall take a decision on the termination of agreements referred to in Article 18 after having given the Member State concerned the possibility to present its observations within a period of two months of the communication of its assessment as to whether no tangible progress has been made.

7. Where, within 12 months of the date of the conclusion of relevant agreements referred to in Article 18, no tangible progress has been made in respect of any relevant milestones and targets by the Member State concerned, the Commission shall terminate the relevant agreements referred to in Article 18 and shall de-commit the amount of the financial allocation. Any pre-financing in accordance with Article [13a] shall be recovered in full. The Commission shall take a decision on the termination of agreements referred to in Article 18 after having given the Member State concerned the possibility to present its observations within a period of two months of the communication of its assessment as to whether no tangible progress has been made. Any decommitted amounts shall be proportionally allocated to other Member States.

Amendment 130

Proposal for a regulation

Article 20 — paragraph 1

Text proposed by the Commission

Amendment

1. In implementing the Fund, the Member States, as beneficiaries of funds under the Fund, shall take all the appropriate measures to protect the financial interests of the Union and to ensure that the use of funds in relation to measures and investments supported by the Fund complies with the applicable Union and national law, in particular regarding the prevention, detection and correction of fraud, corruption and conflicts of interests. To this effect, the Member States shall provide an effective and efficient internal control system as further detailed in Annex III and the recovery of amounts wrongly paid or incorrectly used. Member States may rely on their regular national budget management systems.

1. In implementing the Fund, the Member States, as beneficiaries of funds under the Fund, shall respect the fundamental values enshrined in Article 2 of the Treaty on European Union, including the rule of law. They shall take all the appropriate measures to protect the financial interests of the Union and to ensure that the use of funds in relation to measures and investments supported by the Fund complies with the applicable Union and national law, in particular regarding the protection of the Union budget in the case of breaches of the principles of the rule of law, prevention, detection and correction of fraud, corruption and conflicts of interests. To this effect, the Member States shall provide an effective and efficient internal control system as further detailed in Annex III and the recovery of amounts wrongly paid or incorrectly used. Member States may rely on their regular national budget management systems.

Amendment 131

Proposal for a regulation

Article 20 — paragraph 1 a (new)

Text proposed by the Commission

Amendment

1a. In implementing the Fund, the Commission shall take all the appropriate measures in accordance with Regulation (EU, Euratom) 2020/2092 to ensure the protection of funds in relation to measures and investments supported by the Fund in the case of breaches of the principles of the rule of law in the Member States. The Commission shall provide, to that effect, an effective and efficient internal control system and the recovery of amounts wrongly paid or incorrectly used.

Amendment 132

Proposal for a regulation

Article 20 — paragraph 5 a (new)

Text proposed by the Commission

Amendment

5a. Where it is established that breaches of the principles of the rule of law in a Member State affect or seriously risk affecting the sound financial management of the Fund or the protection of the financial interests of the Union, the Commission shall take the appropriate measures in accordance with Regulation (EU, Euratom) 2020/2092 which may include, inter alia, a suspension of payments to the affected national authorities. In such cases, the Commission shall take all necessary steps to ensure that the intended final beneficiaries of the Fund continue to have access to Union assistance, with the Commission ensuring disbursement via local and regional authorities, non-governmental organisations, or other entities with a proven capacity to ensure the sound financial management of the Fund.

Amendment 133

Proposal for a regulation

Article 21 — paragraph 1 — introductory part

Text proposed by the Commission

Amendment

The Commission and the Member States concerned shall, in a manner commensurate to their respective responsibilities, foster synergies and ensure effective coordination between the Fund and other Union programmes and instruments, including InvestEU Programme, the Technical Support Instrument, the Recovery and Resilience Facility, and the Funds covered by Regulation (EU) 2021/1060. For that purpose, they shall:

The Commission and the Member States concerned shall, in a manner commensurate to their respective responsibilities, foster synergies and ensure effective coordination between the Fund and other Union programmes and instruments, including the Modernisation Fund, InvestEU Programme, the Technical Support Instrument, the Recovery and Resilience Facility, and the Funds covered by Regulation (EU) 2021/1060. For that purpose, they shall:

Amendment 134

Proposal for a regulation

Article 21 — paragraph 1 — point a

Text proposed by the Commission

Amendment

(a)	ensure complementarity, synergy, coherence and consistency among different instruments at Union, national and, where appropriate, regional levels, both in the planning phase and during implementation;

(a)	ensure complementarity, synergy, coherence and consistency among different instruments at Union, national and, where appropriate, local and regional levels, both in the planning phase and during implementation;

Amendment 135

Proposal for a regulation

Article 21 — paragraph 1 — point c

Text proposed by the Commission

Amendment

(c)	ensure close cooperation between those responsible for implementation and control at Union, national and, where appropriate, regional levels to achieve the objectives of the Fund.

(c)

ensure close cooperation between those responsible for implementation and control at Union, national and, where appropriate, local and regional levels , including relevant stakeholders in accordance with the principles of the European code of conduct on partnerships established by Commission Delegated Regulation (EU) No 240/2014 to achieve the objectives of the Fund.

Amendment 136

Proposal for a regulation

Article 22 — paragraph 2

Text proposed by the Commission	Amendment
2. The recipients of Union funding shall acknowledge the origin of those funds and ensure the visibility of the Union funding, in particular when promoting the actions and their results, by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public.	deleted

Amendment 137

Proposal for a regulation

Article 22 a (new)

Text proposed by the Commission

Amendment

Article 22a

Visibility of Union funding

1. Each Member State shall ensure:

(a)	the visibility for intermediary entities and final beneficiaries of Union support in all activities relating to operations supported by the Fund, including by displaying the Union emblem; and

(b)	communication to Union citizens of the role and achievements of the Fund through a single website portal providing access to all programmes involving that Member State.

2. Member States shall acknowledge and, where applicable, shall ensure that intermediary entities acknowledge, support from the Fund and the origin of that funding by:

(a)

ensuring the visibility of the Union funding to the final beneficiaries and the public, including by displaying the emblem of the Union and an appropriate funding statement that reads ‘funded by the European Union — Social Climate Fund’ on documents and communication material relating to the implementation of the operation intended for the final beneficiaries or the public;

(b)	providing on their official website, where such a site exists, and social media sites, a short description of the operation, proportionate to the level of support, including its aims and results, and highlighting the financial support from the Union; and

(c)	communicating for operations involving financial instruments, including for temporary direct income support in accordance with Article 6(1), the amount of support from the Fund to the final recipients.

3. Where a Member State does not comply with the obligations under paragraphs 1 and 2, and where remedial actions have not been put into place, the Commission shall apply measures, taking into account the principle of proportionality, that cancel up to 5 % per year of the support from the Fund to the Member State concerned.

Amendment 138

Proposal for a regulation

Article 23 — paragraph 1 — introductory part

Text proposed by the Commission

Amendment

1. Each Member State concerned shall, on a biennial basis, report to the Commission on the implementation of its Plan as part of its integrated national energy and climate progress report pursuant to Article 17 of Regulation (EU) 2018/1999 and in accordance with Article 28 thereof. The Member States concerned shall include in their progress report:

1. Each Member State concerned shall, on a biennial basis report to the Commission on the implementation of its Plan as part of its integrated national energy and climate progress report pursuant to Article 17 of Regulation (EU) 2018/1999 and in accordance with Article 28 thereof , and in meaningful consultation with relevant stakeholders in accordance with the principles of the European code of conduct on partnerships established by Commission Delegated Regulation (EU) No 240/2014 . The Member States concerned shall include in their progress report:

Amendment 139

Proposal for a regulation

Article 23 — paragraph 1 — point a

Text proposed by the Commission

Amendment

(a)	detailed quantitative information on the number of households in energy poverty;

(a)	detailed quantitative information on the number of households in energy poverty and in mobility poverty, in particular vulnerable households, vulnerable micro-enterprises, and vulnerable transport users ;

Amendment 140

Proposal for a regulation

Article 23 — paragraph 1 — point a a (new)

Text proposed by the Commission

Amendment

(aa)	detailed information on the application of the definitions of energy and mobility poverty in accordance with Article 2(2) and (2a) on the basis of concrete and measurable criteria;

Amendment 141

Proposal for a regulation

Article 23 — paragraph 1 — point b

Text proposed by the Commission

Amendment

(b)	when applicable, detailed information on progress towards the national indicative objective to reduce the number of households in energy poverty;

(b)	detailed information on progress towards the national indicative targets and objectives to reduce the number of households in energy poverty and mobility poverty, in particular vulnerable households, vulnerable micro-enterprises, and vulnerable transport users.

Amendment 142

Proposal for a regulation

Article 23 — paragraph 1 — point c

Text proposed by the Commission

Amendment

(c)	detailed information on the results of the measures and investments, included in its Plan;

(c)	detailed information on the results of the measures and investments, in particular as regards to the emissions reduction achieved and the number of people benefitting from the measures included in its Plan;

Amendment 143

Proposal for a regulation

Article 23 — paragraph 1 — point c a (new)

Text proposed by the Commission

Amendment

(ca)

an explanation of how the measures in the plan are expected to contribute to gender equality and equal opportunities for all and the mainstreaming of those objectives, in line with principles 2 and 3 of the European Pillar of Social Rights, with the UN Sustainable Development Goal 5 and, where relevant, with the national gender equality strategy;

Amendment 144

Proposal for a regulation

Article 23 — paragraph 1 — point c b (new)

Text proposed by the Commission

Amendment

(cb)	detailed information on the share and targeting of direct income support included in its Plan;

Amendment 145

Proposal for a regulation

Article 23 — paragraph 1 — point f

Text proposed by the Commission

Amendment

(f)	in 2027, an assessment of the Plan referred to in Article 17(5) in view of the actual direct effects of the emission trading system for buildings and road transport established pursuant to Chapter IVa of Directive 2003/87/EC;

(f)	in 2027, an assessment of the Plan referred to in Article 17(5) in view of the actual direct effects of the emission trading system established pursuant to Directive 2003/87/EC;

Amendment 146

Proposal for a regulation

Article 23 — paragraph 2 a (new)

Text proposed by the Commission	Amendment
	2a. The Commission shall monitor the share of costs related to the surrender of allowances under Chapter IVa of Directive …/…/EC[(COD)2021/0211] absorbed by fuel suppliers and passed on to final consumers. The Commission shall annually report its finding to the European Parliament.

Amendment 147

Proposal for a regulation

Article 23 — paragraph 4

Text proposed by the Commission

Amendment

4. The Commission shall be empowered to adopt delegated acts in accordance with Article 25 to supplement this Regulation in order to set out the common indicators to be used for reporting on the progress and for the purpose of monitoring and evaluation of the Fund towards the achievement of the objectives set out in Article 1 , including a template based on which Member States have to report. The Commission shall adopt those delegated acts no later than … [3 months after the entry into force of this Regulation].

Amendment 148

Proposal for a regulation

Article 23 a (new)

Text proposed by the Commission	Amendment
	Article 23a
	Transparency
	1. The Commission shall transmit the Plans submitted by Member States, and the decisions, as made public by the Commission, simultaneously and on equal terms to the European Parliament and the Council without undue delay.
	2. Information transmitted by the Commission to the Council or any of its preparatory bodies in the context of this Regulation or its implementation shall simultaneously be made available to the European Parliament, subject to confidentiality arrangements if necessary.
	3. The Commission shall provide the competent committees of the European Parliament with an overview of its preliminary findings concerning the satisfactory fulfilment of the relevant milestones and targets included in the Plans submitted by Member States.
	4. The competent committees of the European Parliament may invite the Commission to provide information on the state of play of the assessment by the Commission of the Plans.

Amendment 149

Proposal for a regulation

Article 23 b (new)

Text proposed by the Commission

Amendment

Article 23b

Social Climate Dialogue

1. In order to enhance the dialogue between the Union institutions, in particular the European Parliament, the Council and the Commission, and to ensure greater transparency and accountability, the competent committees of the European Parliament may invite the Commission twice a year to discuss the following matters:

(a)	the Plans submitted by Member States;

(b)	the assessment by the Commission of the Plans submitted by Member States;

(c)	the status of fulfilment of the milestones and targets of the Plans submitted by Member States;

(d)	payment, suspension and termination procedures, including any observation presented and remedial measures taken by Member States to ensure a satisfactory fulfilment of the milestones and targets;

(e)	any other relevant information and documentation provided by the Commission to the competent committee of the European Parliament in relation to the implementation of the Fund.

2. The European Parliament may express its views in resolutions as regards the matters referred to in paragraph 1.

3. The Commission shall take into account any elements arising from the views expressed through the social climate dialogue, including the resolutions from the European Parliament if provided.

Amendment 150

Proposal for a regulation

Article 24 — paragraph 1

Text proposed by the Commission	Amendment
1. By 1 July 2028 , the Commission shall provide the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions with an evaluation report on the implementation and functioning of the Fund.	1. By 1 July 2026 , the Commission shall provide the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions with an evaluation report on the implementation and functioning of the Fund until that date, taking into account in particular the results of the first reports submitted by Member States in accordance with Article 23 .

Amendment 151

Proposal for a regulation

Article 24 — paragraph 2 a (new)

Text proposed by the Commission

Amendment

2a. For every year that the Fund is active, the Commission shall provide a report to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of the CO2 reduction arising from the investments in energy efficiency of building, integration of energy from renewable sources and granting improved access to zero- and low-emission mobility and transport.

Amendment 152

Proposal for a regulation

Article 24 — paragraph 3

Text proposed by the Commission

Amendment

3. The evaluation report shall, in particular, assess to which extent the objectives of the Fund laid down in Article 1 have been achieved, the efficiency of the use of the resources and the Union added value. It shall consider the continued relevance of all objectives and actions set out in Article 6 in light of the impact on greenhouse gas emissions from the emission trading system for buildings and road transport pursuant to Chapter IVa of Directive 2003/87/EC and from the national measures taken to meet the binding annual greenhouse gas emission reductions by Member States pursuant to Regulation (EU) 2018/842 of the European Parliament and of the Council (63). It shall also consider the continued relevance of the financial envelope of the Fund in relation to possible developments concerning the auctioning of allowances under the emission trading system for buildings and road transport pursuant to Chapter IVa of Directive 2003/87/EC and other relevant considerations.

3. The evaluation report referred to in paragraph 1 shall, in particular, assess:

(a)	to which extent the objectives of the Fund laid down in Article 1 have been achieved, the efficiency of the use of the resources and the Union added value;

(b)

on a country-by-country basis, the progress and effect of the implementation of structural investments and measures and the use of the direct income support in light of the achievement of the milestones and targets in the Plans, and the subsequent need for, and required level of, direct income support in that context, pursuant to the rules set out in Article 6(1) for the period 2028-2032;

(c)	the application of the definitions of energy and mobility poverty as reported by Member States in accordance with Article 23(1)(aa) and whether a more detailed approach may be necessary in the future, and, where appropriate, present a proposal to the European Parliament and to the Council;

It shall consider the continued relevance of all objectives and actions set out in Article 6 in light of the impact on greenhouse gas emissions from the emission trading system pursuant to Directive 2003/87/EC and from the national measures taken to meet the binding annual greenhouse gas emission reductions by Member States pursuant to Regulation (EU) 2018/842 of the European Parliament and of the Council (63). It shall also consider the continued relevance of the financial envelope of the Fund in relation to possible developments concerning the auctioning of allowances under the emission trading system pursuant to Directive 2003/87/EC and other relevant considerations. As part of the evaluation report referred to in paragraph 1, the Commission shall also consider the prolongation of the specific technical adjustment based on carbon-price fluctuation referred to in Article 9 in the context of the negotiations of the next multiannual financial framework.

Amendment 153

Proposal for a regulation

Article 25 — paragraph 2

Text proposed by the Commission	Amendment
2. The power to adopt delegated acts referred to in Article 23(4) shall be conferred on the Commission for an indeterminate period of time.	2. The power to adopt delegated acts referred to in Articles 4(2a) and 23(4) shall be conferred on the Commission for an indeterminate period of time.

Amendment 154

Proposal for a regulation

Article 25 — paragraph 3

Text proposed by the Commission

Amendment

3. The delegations of power referred to in Article 23(4) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect on the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

3. The delegations of power referred to in Articles 4(2a) and 23(4) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect on the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

Amendment 155

Proposal for a regulation

Article 26 — paragraph 2

Text proposed by the Commission	Amendment
It shall apply from the date by which the Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with Directive (EU) [yyyy/nnn] of the European Parliament and the Council (64) amending Directive 2003/87/EC as regards Chapter IVa of Directive 2003/87/EC.	deleted

Amendment 156

Proposal for a regulation

Annex I — paragraph 9

Text proposed by the Commission

Amendment

For the Member States with a GNI per capita below 90 % of the EU-27 value, cannot be lower than the share of reference emissions under Article 4(2) of Regulation (EU) 2018/842 for the sectors covered by [Chapter IVa of Directive 2003/87/EC] for the average of the period 2016-2018. The of the Member States with a GNI per capita above the EU-27 value are proportionally adjusted to ensure that the sum of all equals 100 %.

For all Member States, αi cannot be lower than 0,07 % of the sum of the financial envelopes as referred to in Article 9(1) and (2). For the Member States with a GNI per capita below 90 % of the EU-27 value, αi cannot be lower than the share of reference emissions under Article 4(2) of Regulation (EU) 2018/842 for the sectors covered by [Chapter IVa of Directive 2003/87/EC] for the average of the period 2016-2018. The αi of the Member States with a GNI per capita above the EU-27 value are proportionally adjusted to ensure that the sum of all αi equals 100 %.

Amendment 157

Proposal for a regulation

Annex II — paragraph 1 a (new)

Text proposed by the Commission

Amendment

Additional allocations pertaining from Article 9(1a) shall be allocated to Member States on the basis of the following share.

Maximum financial allocation per EU Member State

Member State	Share as % of total	TOTAL [date of entry into force]-2032 (in EUR, current prices)	Amount for [date of entry into force]-2027 (in EUR, current prices)	Amount for 2028-2032 (in EUR, current prices)
Belgium	2,56	[1 844 737 639 ]	[605 544 073 ]	[1 239 193 566 ]
Bulgaria	3,85	[2 778 104 958 ]	[911 926 420 ]	[1 866 178 538 ]
Czechia	2,40	[1 735 707 679 ]	[569 754 460 ]	[1 165 953 219 ]
Denmark	0,50	[361 244 536 ]	[118 580 270 ]	[242 664 266 ]
Germany	8,19	[5 910 983 488 ]	[1 940 308 984 ]	[3 970 674 504 ]
Estonia	0,29	[207 004 992 ]	[67 950 392 ]	[139 054 600 ]
Ireland	1,02	[737 392 966 ]	[242 052 816 ]	[495 340 150 ]
Greece	5,52	[3 986 664 037 ]	[1 308 641 796 ]	[2 678 022 241 ]
Spain	10,53	[7 599 982 898 ]	[2 494 731 228 ]	[5 105 251 670 ]
France	11,20	[8 087 962 701 ]	[2 654 912 964 ]	[5 433 049 737 ]
Croatia	1,94	[1 403 864 753 ]	[460 825 411 ]	[943 039 343 ]
Italy	10,81	[7 806 923 117 ]	[2 562 660 358 ]	[5 244 262 759 ]
Cyprus	0,20	[145 738 994 ]	[47 839 531 ]	[97 899 463 ]
Latvia	0,71	[515 361 901 ]	[169 170 042 ]	[346 191 859 ]
Lithuania	1,02	[738 205 618 ]	[242 319 573 ]	[495 886 046 ]
Luxemburg	0,10	[73 476 421 ]	[24 118 991 ]	[49 357 430 ]
Hungary	4,33	[3 129 860 199 ]	[1 027 391 783 ]	[2 102 468 416 ]
Malta	0,01	[5 112 942 ]	[1 678 348 ]	[3 434 594 ]
Netherlands	1,11	[800 832 270 ]	[262 877 075 ]	[537 955 195 ]
Austria	0,89	[643 517 259 ]	[211 237 660 ]	[432 279 599 ]
Poland	17,61	[12 714 118 688 ]	[4 173 471 093 ]	[8 540 647 595 ]
Portugal	1,88	[1 359 497 281 ]	[446 261 573 ]	[913 235 708 ]
Romania	9,26	[6 682 901 998 ]	[2 193 694 977 ]	[4 489 207 021 ]
Slovenia	0,55	[397 623 987 ]	[130 522 001 ]	[267 101 985 ]
Slovakia	2,36	[1 701 161 680 ]	[558 414 568 ]	[1 142 747 112 ]
Finland	0,54	[386 966 933 ]	[127 023 772 ]	[259 943 161 ]
Sweden	0,62	[445 050 067 ]	[146 089 842 ]	[298 960 225 ]
EU27	100 %	[72 200 000 000 ]	[23 700 000 000 ]	[48 500 000 000 ]

(1) The matter was referred back for interinstitutional negotiations to the committees responsible, pursuant to Rule 59(4), fourth subparagraph (A9-0157/2022).

(28) Paris Agreement (OJ L 282, 19.10.2016, p. 4).

(29) COM(2019)0640.

(30) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).

(1a) Endorsed by the European Council on 24 and 25 June 2021.

(31) Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).

(1a) Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources (OJ L 433 I, 22.12.2020, p. 28).

(32) Data from 2018. Eurostat, SILC [ilc_mdes01]).

(33) Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy (OJ L 231, 30.6.2021, p. 159).

(34) Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).

(35) Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1).

(35a) Commission Delegated Regulation (EU) No 240/2014 of 7 January 2014 on the European code of conduct on partnership in the framework of the European Structural and Investment Funds (OJ L 74, 14.3.2014, p. 1).

(36) [Add ref]

(37) Endorsed by the European Council on 24 and 25 June 2021.

(38) Regulation (EU) 2021/1057 of the European Parliament and of the Council of 24 June 2021 establishing the European Social Fund Plus (ESF+) and repealing Regulation (EU) No 1296/2013 (OJ L 231, 30.6.2021, p. 21).

(39) Regulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 2021 establishing the Just Transition Fund (OJ L 231, 30.6.2021, p. 1).

(40) Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings (OJ L 153, 18.6.2010, p. 13).

(36) [Add ref]

(37) Endorsed by the European Council on 24 and 25 June 2021.

(39) Regulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 2021 establishing the Just Transition Fund (OJ L 231, 30.6.2021, p. 1).

(40) Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings (OJ L 153, 18.6.2010, p. 13).

(41) Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom (OJ L 424, 15.12.2020, p. 1).

(1a) Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget (OJ L 433 I, 22.12.2020, p. 1).

(1b) Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).

(50) [Directive (EU) [yyyy/nnn] of the of the European Parliament and of the Council (OJ C […], […], p. […]).] [Proposal for recast of Directive 2012/27/EU on energy efficiency]

(54) OJ L 357, 27.10.2020, p. 35.

(1a) Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 (OJ L 433 I, 22.12.2020, p. 11).

(63) Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26).

(64) [Directive (EU) yyyy/nnn of the European Parliament and of the Council…. (OJ …..).] [Directive amending Directive 2003/87/EC]

27.1.2023

Official Journal of the European Union

C 32/320

P9_TA(2022)0248

Carbon border adjustment mechanism ***I

Amendments adopted by the European Parliament on 22 June 2022 on the proposal for a regulation of the European Parliament and of the Council establishing a carbon border adjustment mechanism (COM(2021)0564 — C9-0328/2021 — 2021/0214(COD)) (1)

(Ordinary legislative procedure: first reading)

(2023/C 32/13)

Amendment 1

Proposal for a regulation

Recital 1

Text proposed by the Commission

Amendment

(1)

The Commission has, in its communication on the European Green Deal (31), set out a new growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient and competitive economy, where there are no net emissions (emissions after deduction of removals) of greenhouse gases (‘GHG emissions’) in 2050 and where economic growth is decoupled from resource use. The European Green Deal also aims to protect, conserve and enhance the EU’s natural capital, and protect the health and well-being of citizens from environment-related risks and impacts. At the same time, that transformation must be just and inclusive, leaving no one behind. The Commission also announced in its EU Action Plan: Towards Zero Pollution for Air, Water and Soil (32) the promotion of relevant instruments and incentives to better implement the polluter pays principle as set out in Article 191(2) of the Treaty on the Functioning of the European Union (‘TFEU’) and thus complete the phasing out of ‘pollution for free’ with a view to maximising synergies between decarbonisation and the zero pollution ambition.

(1)

The Commission has, in its communication on the European Green Deal (31), set out a new growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient and competitive economy, where there are no net emissions (emissions after deduction of removals) of greenhouse gases (‘GHG emissions’) in 2050 at the latest and where economic growth is decoupled from resource use. The European Green Deal also aims to protect, conserve and enhance the EU’s natural capital, and protect the health and well-being of citizens from environment-related risks and impacts. At the same time, that transformation must be just and inclusive, leaving no one behind. The Commission also announced in its EU Action Plan: Towards Zero Pollution for Air, Water and Soil (32) the promotion of relevant instruments and incentives to better implement the polluter pays principle as set out in Article 191(2) of the Treaty on the Functioning of the European Union (‘TFEU’) and thus complete the phasing out of ‘pollution for free’ with a view to maximising synergies between decarbonisation and the zero pollution ambition.

Amendment 2

Proposal for a regulation

Recital 2

Text proposed by the Commission

Amendment

(2)

The Paris Agreement (33), adopted in December 2015 under the United Nations Framework Convention on Climate Change (‘UNFCCC’) entered into force in November 2016. The Parties to the Paris Agreement, in its Article 2, have agreed to hold the increase in the global average temperature well below 2 oC above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 oC above pre-industrial levels.

(2)

The Paris Agreement (33), adopted in December 2015 under the United Nations Framework Convention on Climate Change (‘UNFCCC’), entered into force in November 2016. The Parties to the Paris Agreement, in its Article 2, have agreed to hold the increase in the global average temperature well below 2 oC above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 oC above pre-industrial levels. Under the Glasgow Climate Pact, adopted on 13 November 2021, the Parties also recognised that limiting the increase in the global average temperature 1,5 oC above pre-industrial levels would significantly reduce the risks and impacts of climate change, and committed to strengthen the 2030 targets by the end of 2022 to close the ambition gap.

Amendment 3

Proposal for a regulation

Recital 5

Text proposed by the Commission

Amendment

(5)	Regulation (EU) 2021/1119 of the European Parliament and of the Council (35) has enshrined in legislation the target of economy-wide climate neutrality by 2050. That Regulation also establishes a binding Union reduction commitment of GHG emissions of at least 55 per cent below 1990 levels by 2030.

(5)

Regulation (EU) 2021/1119 of the European Parliament and of the Council (35) has enshrined in legislation the target of economy-wide climate neutrality by 2050 at the latest . That Regulation also establishes a binding Union reduction commitment of GHG emissions of at least 55 per cent below 1990 levels by 2030.

Amendment 4

Proposal for a regulation

Recital 6

Text proposed by the Commission

Amendment

(6)

The Special Report of the Intergovernmental Panel on Climate Change (IPCC) on the impacts of global temperature increases of 1,5 oC above pre-industrial levels and related global GHG emission pathways (36) provides a strong scientific basis for tackling climate change and illustrates the need to step up climate action. That report confirms that in order to reduce the likelihood of extreme weather events, GHG emissions need to be urgently reduced , and that climate change needs to be limited to a global temperature increase of 1,5 oC.

(6)

The Special Report of the Intergovernmental Panel on Climate Change (IPCC) on the impacts of global temperature increases of 1,5 oC above pre-industrial levels and related global GHG emission pathways (36) provides a strong scientific basis for tackling climate change and illustrates the need to step up climate action. That report confirms that the negative impacts of climate change and the need for adaptation measures will be significantly higher if the increase in global average temperature is above 1,5 oC, and that in order to reduce the likelihood of extreme weather events, GHG emissions need to be urgently reduced.

Amendment 5

Proposal for a regulation

Recital 7 a (new)

Text proposed by the Commission

Amendment

(7a)

Around 27 % of global CO2 emissions from fuel combustion currently relate to internationally traded goods and, while the Union has substantially reduced its domestic GHG emissions, the GHG emissions embedded in imports to the Union have been constantly increasing, thereby undermining the Union’s efforts to reduce its global GHG footprint. The Union has a responsibility to continue playing a leading role in global climate action, in cooperation with all of the world’s other economies, as it is only through actions by all Parties that it will be possible to achieve the objectives set out in the Paris Agreement.

Amendment 6

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8)

As long as a significant number of the Union’s international partners have policy approaches that do not result in the same level of climate ambition, there is a risk of carbon leakage. Carbon leakage occurs if, for reasons of costs related to climate policies, businesses in certain industry sectors or subsectors were to transfer production to other countries or imports from those countries would replace equivalent but less GHG emissions intensive products. That could lead to an increase in their total emissions globally, thus jeopardising the reduction of GHG emissions that is urgently needed if the world is to keep the global average temperature to well below 2 oC above pre-industrial levels.

(8)

As long as a significant number of the Union’s international partners do not achieve the same level of climate ambition, and as the Union increases its climate ambition, there could be a risk of carbon leakage. Carbon leakage occurs if, for reasons of costs related to climate policies, businesses in certain industry sectors or subsectors were to transfer production to other countries or imports from those countries would replace equivalent but less GHG emissions intensive products. That could lead to an increase in their total emissions globally while undermining the effectiveness of Union emission reduction policies , thus jeopardising the reduction of GHG emissions that is urgently needed if the world is to keep the global average temperature to well below 2 oC above pre-industrial levels.

Amendment 7

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9)

The initiative for a carbon border adjustment mechanism (‘CBAM’) is a part of the ‘Fit for 55 Package’. That mechanism is to serve as an essential element of the EU toolbox to meet the objective of a climate-neutral Union by 2050 at the latest in line with the Paris Agreement by preventing carbon leakage resulting from the increased Union climate ambition. It can also contribute to establishing a level playing field for decarbonisation costs, to increasing the demand for low-carbon products and processes, as well as to avoiding distortions of competition and promoting fair trade.

Amendment 8

Proposal for a regulation

Recital 10

Text proposed by the Commission

Amendment

(10)

Existing mechanisms to address the risk of carbon leakage in sectors or sub-sectors at risk of carbon leakage are the transitional free allocation of EU ETS allowances and financial measures to compensate for indirect emission costs incurred from GHG emission costs passed on in electricity prices respectively laid down in Articles 10a(6) and 10b of Directive 2003/87/EC. However, free allocation under the EU ETS weakens the price signal that the system provides for the installations receiving it compared to full auctioning and thus affects the incentives for investment into further abatement of emissions.

(10)

Existing mechanisms to address the risk of carbon leakage in sectors or sub-sectors at risk of carbon leakage are the transitional free allocation of EU ETS allowances and financial measures to compensate for indirect emission costs incurred from GHG emission costs passed on in electricity prices respectively laid down in Articles 10a(6) and 10b of Directive 2003/87/EC. Free allocation at the level of best performers has been a policy instrument for certain industrial sectors to address the risk of carbon leakage in the absence of a fair level playing field. However, both free allocation under the EU ETS and compensation for indirect emission costs weaken the price signal that the system provides for the installations receiving them, compared to full auctioning, and thus reduce the incentives for investment into further abatement of emissions.

Amendment 9

Proposal for a regulation

Recital 11 a (new)

Text proposed by the Commission

Amendment

(11a)

Installations under the EU ETS are facing a rising carbon price and companies need long-term visibility, predictability and legal certainty to make their investment decisions. A clear pathway for the gradual inclusion of the remaining sectors and subsectors at risk of carbon leakage should therefore be established. This will strengthen the new legal framework to fight carbon leakage, provide the necessary time to ensure a smooth implementation of the CBAM and allow installations and companies make the necessary investments in the decarbonisation of industrial processes in a stable and predictable legal context.

Amendment 10

Proposal for a regulation

Recital 12

Text proposed by the Commission

Amendment

(12)	While the objective of the CBAM is to prevent the risk of carbon leakage, this Regulation would also encourage the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated.

(12)

While the objective of the CBAM is to prevent the risk of carbon leakage, this Regulation would also encourage the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated. For that reason the CBAM could be an effective measure to lower emissions in third countries while ensuring a level playing field for Union industry.

Amendment 11

Proposal for a regulation

Recital 13

Text proposed by the Commission

Amendment

(13)

As an instrument to prevent carbon leakage and reduce GHG emissions the CBAM should ensure that imported products are subject to a regulatory system that applies carbon costs equivalent to the ones that otherwise would have been borne under the EU ETS. The CBAM is a climate measure which should prevent the risk of carbon leakage and support the Union’s increased ambition on climate mitigation , while ensuring WTO compatibility.

(13)

As an instrument to prevent carbon leakage and reduce GHG emissions the CBAM should ensure that imported products are subject to a regulatory system that applies carbon costs equivalent to the ones that otherwise would have been borne under the EU ETS , resulting in an equivalent carbon pricing for imports and domestic products and a level playing field . The CBAM is a climate measure which should support the reduction of emissions in the Union in line with the European Green Deal and Regulation (EU) 2021/1119 and prevent the risk of carbon leakage, while ensuring compatibility with WTO rules .

Amendment 12

Proposal for a regulation

Recital 13 a (new)

Text proposed by the Commission

Amendment

(13a)

The Commission should analyse the administrative costs incurred by the CBAM, while ensuring that staff receive adequate training to perform their duties.

Amendment 13

Proposal for a regulation

Recital 15

Text proposed by the Commission

Amendment

(15)

In order to exclude from the CBAM third countries or territories fully integrated into, or linked, to the EU ETS in the event of future agreements, the power to adopt acts in accordance with Article 290 of TFEU should be delegated to the Commission in respect of amending the list of countries in Annex II. Conversely, those third countries or territories should be excluded from the list in Annex II and be subject to CBAM whereby they do not effectively charge the ETS price on goods exported to the Union.

(15)

Amendment 14

Proposal for a regulation

Recital 15 a (new)

Text proposed by the Commission

Amendment

(15a)

With a view to ensuring that the ecological transition in the outermost regions is accompanied by economic and social cohesion, an impact assessment should be carried out before the end of the transition period on the potential economic and social impacts specific to those regions. The Commission should ensure compliance with Article 349 TFEU and propose appropriate measures for the outermost regions in implementing the CBAM, in particular because of the specific customs and tax arrangements that apply to the outermost regions.

Amendment 15

Proposal for a regulation

Recital 17

Text proposed by the Commission

Amendment

(17)

The GHG emissions to be regulated by the CBAM should correspond to those GHG emissions covered by Annex I to the EU ETS in Directive 2003/87/EC, namely carbon dioxide (‘CO2’) as well as, where relevant, nitrous oxide (‘N2O’) and perfluorocarbons (‘PFCs’). The CBAM should initially apply to direct emissions of those GHG from the production of goods up to the time of import into the customs territory of the Union , and after the end of a transition period and upon further assessment, as well to indirect emissions, mirroring the scope of the EU ETS.

(17)

The GHG emissions to be regulated by the CBAM should correspond to those GHG emissions covered by Annex I to the EU ETS in Directive 2003/87/EC, namely carbon dioxide (‘CO2’) as well as, where relevant, nitrous oxide (‘N2O’) and perfluorocarbons (‘PFCs’). The CBAM should reflect future revisions of the EU ETS in terms of regulated GHG emissions. The CBAM should apply to direct emissions of those GHG from the production of goods up to the time of import into the customs territory of the Union as well to indirect emissions, mirroring the scope of the EU ETS. Coherence between the CBAM and the EU ETS is essential to respect the principles of the WTO.

Amendment 16

Proposal for a regulation

Recital 19

Text proposed by the Commission

Amendment

(19)

However, while the EU ETS sets an absolute cap on the GHG emissions from the activities under its scope and allows tradability of allowances (so called ‘cap and trade system’), the CBAM should not establish quantitative limits to import, so as to ensure that trade flows are not restricted. Moreover, while the EU ETS applies to installations based in the Union, the CBAM should be applied to certain goods imported into the customs territory of the Union.

(19)

However, while the EU ETS sets an absolute cap on the GHG emissions from the activities under its scope and allows tradability of allowances (so called ‘cap and trade system’), the CBAM should not establish quantitative limits to import, so as to ensure that trade flows are not restricted or disrupted . Moreover, while the EU ETS applies to installations based in the Union, the CBAM should be applied to certain goods imported into the customs territory of the Union to ensure a level playing field and prevent the risk of carbon leakage while ensuring compatibility with WTO rules .

Amendment 17

Proposal for a regulation

Recital 20

Text proposed by the Commission

Amendment

(20)

The CBAM system has some specific features compared with the EU ETS, including on the calculation of the price of CBAM certificates, on the possibilities to trade certificates and on their validity over time. These are due to the need to preserve the effectiveness of the CBAM as a measure preventing carbon leakage over time and to ensure that the management of the system is not excessively burdensome in terms of obligations imposed on the operators and of resources for the administration, while at the same time preserving an equivalent level of flexibility available to operators under the EU ETS.

(20)

The CBAM system has some specific features compared with the EU ETS, including on the calculation of the price of CBAM certificates, on the possibilities to trade certificates and on their validity over time. These are due to the need to preserve the effectiveness of the CBAM as a measure preventing carbon leakage over time and to ensure that the management of the system is not excessively burdensome in terms of obligations imposed on the operators , in particular small and medium-sized enterprises (SMEs), and of resources for the administration, while at the same time preserving an equivalent level of flexibility available to operators under the EU ETS.

Amendment 18

Proposal for a regulation

Recital 21

Text proposed by the Commission

Amendment

(21)

In order to preserve its effectiveness as a carbon leakage measure, the CBAM needs to reflect closely the EU ETS price. While on the EU ETS market the price of allowances is determined through auctions, the price of CBAM certificates should reasonably reflect the price of such auctions through averages calculated on a weekly basis. Such weekly average prices reflect closely the price fluctuations of the EU ETS and allow a reasonable margin for importers to take advantage of the price changes of the EU ETS while at the same ensuring that the system remains manageable for the administrative authorities.

(21)

In order to preserve its effectiveness as a carbon leakage measure and to ensure compatibility with WTO rules , the CBAM needs to reflect closely the EU ETS price. While on the EU ETS market the price of allowances is determined through auctions, the price of CBAM certificates should reasonably reflect the price of such auctions through averages calculated on a weekly basis. Such weekly average prices reflect closely the price fluctuations of the EU ETS and allow a reasonable margin for importers to take advantage of the price changes of the EU ETS while at the same ensuring that the system remains manageable for the administrative authorities.

Amendment 19

Proposal for a regulation

Recital 23

Text proposed by the Commission

Amendment

(23)

Given that the CBAM applies to imports of goods into the customs territory of the Union rather than to installations, certain adaptations and simplifications would also need to apply in the CBAM regime. One of those simplifications should consist in a declarative system where importers should report the total verified GHG emissions embedded in goods imported in a given calendar year. A different timing compared to the compliance cycle of the EU ETS should also be applied to avoid any potential bottleneck resulting from obligations for accredited verifiers under this Regulation and the EU ETS.

(23)

Given that the CBAM applies to imports of goods into the customs territory of the Union rather than to installations, certain adaptations and simplifications would also need to apply in the CBAM regime. One of those simplifications should consist in a simple and accessible declarative system where importers should report the total verified GHG emissions embedded in goods imported in a given calendar year. A different timing compared to the compliance cycle of the EU ETS should also be applied to avoid any potential bottleneck resulting from obligations for accredited verifiers under this Regulation and the EU ETS.

Amendment 20

Proposal for a regulation

Recital 23 a (new)

Text proposed by the Commission

Amendment

(23a)

Given the unique nature of the CBAM and the need for close coordination at Union level, a CBAM authority should be established to properly implement and monitor this Regulation.

Amendment 21

Proposal for a regulation

Recital 24

Text proposed by the Commission

Amendment

(24)

In terms of sanctions, Member States should apply penalties to infringements of this Regulation and ensure that they are implemented. The amount of those penalties should be identical to penalties currently applied within the Union in case of infringement of EU ETS according to Article 16(3) and (4) of Directive 2003/87/EC .

(24)

The CBAM should be carefully designed and supervised by the CBAM authority and customs authorities, inter alia, to prevent, identify and penalise any type of practice of circumvention, including abuse or fraud. The CBAM authority and Member States , in accordance with their national law, should apply administrative or criminal penalties to infringements of this Regulation and ensure that they are implemented. The amount of the penalties for authorised declarants who fail to surrender, by 31 May each year, a number of CBAM certificates corresponding to the emissions embedded in goods imported during the previous year or who submit false information related to embedded emissions to the CBAM authority with a view to obtaining a favourable individual treatment should be equivalent to three times the average price of CBAM certificates in the previous year for each CBAM certificate that the authorised declarant did not surrender in accordance with Article 22. Payment of the penalty should not release the authorised declarant from the obligation to surrender the outstanding number of CBAM certificates to the CBAM authority .

Amendment 22

Proposal for a regulation

Recital 26

Text proposed by the Commission

Amendment

(26)	The product coverage of the CBAM should reflect the activities covered by the EU ETS as that scheme is based on quantitative and qualitative criteria linked to the environmental objective of Directive 2003/87/EC and is the most comprehensive GHG emissions regulatory system in the Union.

(26)

The product coverage of the CBAM should reflect the activities covered by the EU ETS as that scheme is based on quantitative and qualitative criteria linked to the environmental objective of Directive 2003/87/EC and is the most comprehensive GHG emissions regulatory system in the Union. The Commission should establish a timeline for the gradual inclusion of all goods under the sectors covered by Directive 2003/87/EC by 1 January 2030. Priority should be given to goods that are most exposed to carbon leakage and are most carbon intensive.

Amendment 23

Proposal for a regulation

Recital 29

Text proposed by the Commission

Amendment

(29)

The goods under this Regulation should be selected after a careful analysis of their relevance in terms of cumulated GHG emissions and risk of carbon leakage in the corresponding EU ETS sectors while limiting complexity and administrative burden. In particular, the actual selection should take into account basic materials and basic products covered by the EU ETS with the objective of ensuring that imports of energy intensive products into the Union are on equal footing with EU products in terms of EU ETS carbon pricing, and to mitigate risks of carbon leakage. Other relevant criteria to narrow the selection should be: firstly, relevance of sectors in terms of emissions, namely whether the sector is one of the largest aggregate emitters of GHG emissions; secondly, sector’s exposure to significant risk of carbon leakage, as defined pursuant to Directive 2003/87/EC; thirdly, the need to balance broad coverage in terms of GHG emissions while limiting complexity and administrative effort.

(29)

The goods under this Regulation should be selected after a careful analysis of their relevance in terms of cumulated GHG emissions and risk of carbon leakage in the corresponding EU ETS sectors while limiting complexity and administrative burden for Union industry, companies and SMEs . In particular, the actual selection should take into account basic materials and basic products covered by the EU ETS with the objective of ensuring that imports of energy intensive products into the Union are on equal footing with EU products in terms of EU ETS carbon pricing, and to mitigate risks of carbon leakage. Other relevant criteria to narrow the selection should be: firstly, relevance of sectors in terms of emissions, namely whether the sector is one of the largest aggregate emitters of GHG emissions; secondly, sector’s exposure to significant risk of carbon leakage, as defined pursuant to Directive 2003/87/EC; thirdly, the need to balance broad coverage in terms of GHG emissions while limiting complexity and administrative effort. Specific attention should also be paid to avoid any risk of market distortions between the different sectors covered by the CBAM.

Amendment 24

Proposal for a regulation

Recital 30

Text proposed by the Commission

Amendment

(30)	The use of the first criterion allows listing the following industrial sector in terms of cumulated emissions: iron and steel, refineries, cement, organic basic chemicals, and fertilisers.

(30)	The use of the first criterion allows listing the following industrial sector in terms of cumulated emissions: iron and steel, refineries, cement, aluminium, organic basic chemicals, hydrogen, polymers, and fertilisers.

Amendment 25

Proposal for a regulation

Recital 32

Text proposed by the Commission

Amendment

(32)

In particular, organic chemicals are not included in the scope of this Regulation due to technical limitations that do not allow to clearly define the embedded emissions of imported goods. For these goods the applicable benchmark under the EU ETS is a basic parameter, which does not allow for an unambiguous allocation of emissions embedded in individual imported goods. A more targeted allocation to organic chemicals will require more data and analysis.

deleted

Amendment 26

Proposal for a regulation

Recital 33

Text proposed by the Commission

Amendment

(33)

Similar technical constraints apply to refinery products, for which it is not possible to unambiguously assign GHG emissions to individual output products. At the same time, the relevant benchmark in the EU ETS does not directly relate to specific products, such as gasoline, diesel or kerosene, but to all refinery output.

(33)

Some technical constraints apply to refinery products, for which it is not possible to unambiguously assign GHG emissions to individual output products. At the same time, the relevant benchmark in the EU ETS does not directly relate to specific products, such as gasoline, diesel or kerosene, but to all refinery output. In order to extend the scope of this Regulation in a timely manner, the Commission should develop a fair methodology to calculate embedded emissions from refinery products before the end of the transition phase.

Amendment 27

Proposal for a regulation

Recital 34

Text proposed by the Commission

Amendment

(34)

However, aluminium products should be included in the CBAM as they are highly exposed to carbon leakage. Moreover, in several industrial applications they are in direct competition with steel products because of characteristics closely resembling those of steel products. Inclusion of aluminium is also relevant as the scope of the CBAM may be extended to cover also indirect emissions in the future.

(34)

Aluminium products should be included in the CBAM as they are highly exposed to carbon leakage. Moreover, in several industrial applications they are in direct competition with steel products because of characteristics closely resembling those of steel products. Inclusion of aluminium is also relevant as the scope of the CBAM also covers indirect emissions.

Amendment 28

Proposal for a regulation

Recital 36

Text proposed by the Commission

Amendment

(36)	Conversely, this Regulation should not apply to certain products whose production does not entail meaningful emissions like ferrous scrap (under CN code 7204), ferro-alloys (CN code 7202) and certain fertilisers (under CN code 3105 60 00).

(36)	Conversely, this Regulation should not apply at a first stage to certain products whose production does not entail meaningful emissions like ferrous scrap (under CN code 7204), ferro-alloys (CN code 7202) and certain fertilisers (under CN code 3105 60 00).

Amendment 29

Proposal for a regulation

Recital 40

Text proposed by the Commission

Amendment

(40)	An authorised declarant should be allowed to claim a reduction in the number of CBAM certificates to be surrendered corresponding to the carbon price already paid for those emissions in other jurisdictions.

(40)	An authorised declarant should be allowed to claim a reduction in the number of CBAM certificates to be surrendered corresponding to the explicit carbon price already paid for those emissions in other jurisdictions.

Amendment 30

Proposal for a regulation

Recital 45

Text proposed by the Commission

Amendment

(45)

The physical characteristics of electricity as a product, in particular the impossibility to follow the actual flow of electrons, justifies a slightly different design for the CBAM. Default values should be used as a standard approach and it should be possible for authorised declarants to claim the calculation of their CBAM obligations based on actual emissions. Electricity trade is different from trade in other goods, notably because it is traded via interconnected electricity grids, using power exchanges and specific forms of trading. Market coupling is a densely regulated form of electricity trade which allows to aggregate bids and offers across the Union.

(45)

The physical characteristics of electricity as a product, in particular the impossibility to follow the actual flow of electrons, justifies a slightly different design for the CBAM. It should be possible for authorised declarants to claim the calculation of their CBAM obligations based on actual verified emissions . Default values should only be used if data on actual emissions is unavailable . Electricity trade is different from trade in other goods, notably because it is traded via interconnected electricity grids, using power exchanges and specific forms of trading. Market coupling is a densely regulated form of electricity trade which allows to aggregate bids and offers across the Union.

Amendment 31

Proposal for a regulation

Recital 46 a (new)

Text proposed by the Commission

Amendment

(46a)

To reduce the risk of carbon leakage as well as to ensure a level playing field for Union industry, all practices of circumvention should be prohibited. The Commission should evaluate the risk of practices of circumvention in all sectors included in Annex I, especially the likelihood of transshipment, modified trade patterns towards downstream products, as well as resource shuffling, cost absorption, manipulation of emissions data, wrongful labelling of goods and slight modifications of the product so as to import a product under a different combined nomenclature (‘CN’) code. The Commission should be empowered to adopt, where appropriate, delegated acts to strengthen anti-circumvention measures.

Amendment 32

Proposal for a regulation

Recital 49

Text proposed by the Commission

Amendment

(49)

Once third countries will be closely integrated into the Union electricity market via market coupling, technical solutions should be found to ensure the application of the CBAM to electricity exported from such countries into the customs territory of the Union. If technical solutions cannot be found, third countries that are market coupled should benefit from a time limited exemption from the CBAM until at the latest 2030 with regard solely to the export of electricity, provided that certain conditions are satisfied. However, those third countries should develop a roadmap and commit to implement a carbon pricing mechanism providing for an equivalent price as the EU ETS, and should commit to achieving carbon neutrality by 2050 [as well as?] to align with Union legislation in the areas of environment, climate, competition and energy. That exemption should be withdrawn at any time if there are reasons to believe that the country in question does not fulfil its commitments or it has not adopted by 2030 an ETS equivalent to the EU ETS.

(49)

Once third countries will be closely integrated into the Union electricity market via market coupling, technical solutions should be found to ensure the application of the CBAM to electricity exported from such countries into the customs territory of the Union. If technical solutions cannot be found, third countries that are market coupled should benefit from a time limited exemption from the CBAM until at the latest 2030 with regard solely to the export of electricity, provided that certain conditions are satisfied. However, those third countries should develop a roadmap and commit to implement an explicit carbon pricing mechanism providing for an equivalent price as the EU ETS, and should commit to achieving carbon neutrality by 2050 at the latest to align with Union legislation in the areas of environment, climate, competition and energy. That exemption should be withdrawn at any time if there are reasons to believe that the country in question does not fulfil its commitments or it has not adopted by 2030 an ETS equivalent to the EU ETS.

Amendment 34

Proposal for a regulation

Recital 51

Text proposed by the Commission

Amendment

(51)	To facilitate and ensure a proper functioning of the CBAM, the Commission should provide support to the competent authorities responsible for the application of this Regulation in carrying out their obligations.

deleted

Amendment 35

Proposal for a regulation

Recital 51 a (new)

Text proposed by the Commission

Amendment

(51a)

It is necessary to ensure that parties affected by decisions made by the CBAM authority have access to the necessary remedies. An appropriate appeal mechanism should therefore be set up so that decisions of the CBAM authority can be subject to appeal to a Board of Appeal, the decisions of which can be subject to action before the Court of Justice of the European Union in accordance with the TFEU.

Amendment 36

Proposal for a regulation

Recital 52

Text proposed by the Commission

Amendment

(52)

The Commission should evaluate the application of this Regulation before the end of the transitional period and report to the European Parliament and the Council. The report of the Commission should in particular focus on possibilities to enhance climate actions towards the objective of a climate neutral Union by 2050. The Commission should, as part of that evaluation, initiate collection of information necessary to possibly extend the scope to indirect emissions, as well as to other goods and services at risk of carbon leakage, and to develop methods of calculating embedded emissions based on the environmental footprint methods (47).

(52)

The Commission should regularly evaluate the application of this Regulation and report to the European Parliament and the Council. The reports of the Commission should in particular focus on possibilities to enhance climate actions towards the objective of a climate neutral Union by 2050. The Commission should, as part of the first evaluation, initiate collection of information necessary to possibly further extend the scope of Annex I , to other goods and services at risk of carbon leakage , such as downstream products , and to develop methods of calculating embedded emissions based on the environmental footprint methods (47). The Commission should focus its subsequent evaluations on the impact on competitiveness of Union industry and downstream industry, impact on SMEs, possible disproportionate administrative burden, possible practices of circumvention, distortion in trade patterns and possibilities to enhance climate actions towards a climate neutral Union by 2050 and accompanying those evaluations, where appropriate, with legislative proposals.

Amendment 37

Proposal for a regulation

Recital 52 a (new)

Text proposed by the Commission

Amendment

(52a)

In order to allow for a rapid and effective response to unforeseeable, exceptional and unprovoked circumstances that have destructive consequences for the economic and industrial infrastructure of one or more third countries subject to the CBAM, the Commission should put forward a legislative proposal, as appropriate, amending this Regulation. Such a legislative proposal should set out the measures that are most appropriate in light of the circumstances that the third country or countries are facing, while preserving the objectives of this Regulation. Those measures should be limited in time.

Amendment 38

Proposal for a regulation

Recital 53 a (new)

Text proposed by the Commission

Amendment

(53a)

Alongside dialogue with third countries, the Commission should, at each stage after the entry into force of this Regulation, engage with all interested parties of the sectors covered by this Regulation, including industry representatives, trade unions and civil society.

Amendment 39

Proposal for a regulation

Recital 54 a (new)

Text proposed by the Commission

Amendment

(54a)

The Commission should actively pursue the establishment of an international ‘Carbon club’ in order to ensure continuous exchange in good faith with the Union’s trade partners. This should be an open non-exclusive international forum, which could be located under an appropriate multilateral organisation such as the WTO or the relevant and open body of the OECD for instance. Its objective should be to allow for the comparison and coordination of carbon pricing measures as well as non-carbon pricing measures with an impact on emission reduction. The Carbon club should also support the comparability of climate measures by ensuring the quality of climate monitoring, reporting and verification among its members. Membership of the club should be informal, open and on a voluntary basis for countries aiming at high climate ambition in line with the Paris Agreement. Given that the CBAM is a first-of-a-kind measure, which is meant to be a cooperative tool designed to fight carbon leakage, such a Carbon club will provide the means for engagement and transparency between the Union and its trade partners.

Amendment 40

Proposal for a regulation

Recital 55

Text proposed by the Commission

Amendment

(55)

As the CBAM aims to encourage cleaner production processes, the EU stands ready to work with low and middle-income countries towards the de-carbonisation of their manufacturing industries. Moreover, the Union should support less developed countries with the necessary technical assistance in order to facilitate their adaptation to the new obligations established by this regulation. While the revenues generated by the sale of CBAM certificates will enter the Union budget as general income and should not be assigned to any specific Union budget expenditure, in light of the universality principle governing the Union budget, the Union should finance least developed countries' efforts towards the de-carbonisation of their manufacturing industries with an annual amount corresponding at least to the level of revenues generated by the sale of CBAM certificates. Such funding should be provided through the financial support provided by the Union to international climate finance and the relevant geographic programmes and the thematic programme Global Challenges of the Neighbourhood, Development and International Cooperation Instrument established by Regulation (EU) 2021/947 of the European Parliament and of the Council (1a) . The necessary adjustments to the budgetary appropriation of that instrument should be made through the Union annual budgetary procedure until 2027 and then included in the next multiannual financial framework.

Amendment 41

Proposal for a regulation

Recital 57 a (new)

Text proposed by the Commission

Amendment

(57a)

The Commission should regularly monitor any changes in trade flows from least developed countries attributable to the CBAM in order to evaluate the efficiency of this Regulation, including its contribution to the prevention of carbon leakage and its impact on trade flows between the Union and least developed countries. The Commission should also regularly monitor the technical assistance provided to least developed countries in order to evaluate its effectiveness in contributing to the decarbonisation process in those countries.

Amendment 42

Proposal for a regulation

Recital 59

Text proposed by the Commission

Amendment

(59)

It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016 (51). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(59)

It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at the level of the relevant experts and industrial sectors , and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016 (51). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

Amendment 43

Proposal for a regulation

Recital 61

Text proposed by the Commission

Amendment

(61)

The financial interests of the Union should be protected through proportionate measures throughout the expenditure cycle, including the prevention, detection and investigation of irregularities, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, administrative and financial penalties. According to Europol, carbon credit fraud has cost more than EUR 5 billion in lost government revenues. The CBAM should therefore introduce appropriate and effective mechanisms for avoiding losses of government revenues.

Amendment 44

Proposal for a regulation

Recital 61 a (new)

Text proposed by the Commission

Amendment

(61a)

The CBAM authority should be funded in a way to guarantee its viable functioning, and enable sound financial management. Any costs of the establishment and operation of the authority should be borne by the general income of the Union budget.

Amendment 45

Proposal for a regulation

Article 1 — paragraph 1

Text proposed by the Commission

Amendment

1. This Regulation establishes a carbon border adjustment mechanism (the ‘CBAM’) for addressing greenhouse gas emissions embedded in the goods referred to in Annex I, upon their importation into the customs territory of the Union, in order to reduce global carbon emissions and support the implementation of the goals of the Paris Agreement by preventing any potential risk of carbon leakage from the Union and incentivise the reduction of emissions in third countries . For that purpose, the CBAM aims to equalise carbon pricing for imports and domestic products that are within the scope of this Regulation.

Amendment 46

Proposal for a regulation

Article 1 — paragraph 3

Text proposed by the Commission	Amendment
3. The mechanism will progressively become an alternative to the mechanisms established under Directive 2003/87/EC to prevent the risk of carbon leakage, notably the allocation of allowances free of charge in accordance with Article 10a of that Directive.	3. The mechanism is set to progressively replace the mechanisms established under Directive 2003/87/EC to prevent the risk of carbon leakage, notably the allocation of allowances free of charge in accordance with Article 10a of that Directive.

Amendment 47

Proposal for a regulation

Article 2 — paragraph 1 a (new)

Text proposed by the Commission	Amendment
	1a. By 1 January 2030 this Regulation shall apply to all sectors covered by Directive 2003/87/EC.
	The Commission is empowered to adopt a delegated act in accordance with Article 28 supplementing this Regulation by establishing a timeline for the gradual inclusion of all goods under the sectors covered by Directive 2003/87/EC. The Commission shall give priority in that delegated act to goods that are most exposed to carbon leakage and are most carbon intensive. That delegated act shall be adopted by 30 June 2025.
	The Commission is empowered to adopt a delegated act in accordance with Article 28 supplementing Annex I by adding all goods under the sectors covered in the EU ETS.
	By… [three years after the date of entry into force of this Regulation] the Commission shall adopt a delegated act in accordance with Article 28 supplementing Annex I by adding downstream products of the goods listed in Annex I. Those downstream products shall contain a significant share of at least one of the goods listed in Annex I.

Amendment 48

Proposal for a regulation

Article 2 — paragraph 6

Text proposed by the Commission	Amendment
6. The Commission is empowered to adopt implementing acts in order to determine the conditions for applying the CBAM to goods referred to in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).	6. The Commission is empowered to adopt delegated acts in accordance with Article 28 in order to supplement this Regulation by setting out the conditions for applying the CBAM to goods referred to in paragraph 2.

Amendment 49

Proposal for a regulation

Article 2 — paragraph 7 — point b

Text proposed by the Commission

Amendment

(b)	the national law in that third country or territory implements the main provisions of the Union electricity market legislation, including on the development of renewable energy sources and the coupling of electricity markets;

(b)

the national law in that third country or territory implements the main provisions of the Union electricity market legislation, including on the development of renewable energy sources, the coupling of electricity markets , and implements the Union climate, environment and competition acquis, fully respecting agreed deadlines ;

Amendment 50

Proposal for a regulation

Article 2 — paragraph 7 — point e

Text proposed by the Commission

Amendment

(e)

the third country or territory has, when implementing the roadmap pursuant to point (c), demonstrated substantial progress towards the alignment of domestic legislation with Union law in the field of climate action on the basis of that roadmap, including towards carbon pricing at an equivalent level as the Union at least insofar as the generation of electricity is concerned. The implementation of an emission trading system for electricity, with a price equivalent to the EU ETS, shall be finalised by 1 January 2030 ;

(e)

Amendment 51

Proposal for a regulation

Article 2 — paragraph 8

Text proposed by the Commission

Amendment

8. A third country or territory satisfying the conditions set out in paragraph 7, points (a) to (f), shall be listed in Annex II, Section B, of this Regulation, and shall submit two reports on the fulfilment of the conditions pursuant to paragraph 7, points (a) to (f), one before 1 July 2025 and another before 1 July 2029. By 31 December 2025 and by 31 December 2029, the Commission shall assess, notably on the basis of the roadmap pursuant to paragraph 7, point (c), and the reports received from the third country or territory, whether that third country or territory continues to respect the conditions set out in paragraph 7.

8. A third country or territory satisfying the conditions set out in paragraph 7, points (a) to (f), shall be listed in Annex II, Section B, of this Regulation, and shall submit three comprehensive reports on the fulfilment of the conditions pursuant to paragraph 7, points (a) to (f), one before 1 July 2024 , one before 1 July 2027 and another before 1 July 2029. By 31 December 2024 , by 31 December 2027 and by 31 December 2029, the Commission shall assess, notably on the basis of the roadmap pursuant to paragraph 7, point (c), and the reports received from the third country or territory, whether that third country or territory continues to respect the conditions set out in paragraph 7.

Amendment 52

Proposal for a regulation

Article 2 — paragraph 9 — point b a (new)

Text proposed by the Commission

Amendment

(ba)	if the Commission has evidence that, as a result of increased exports of electricity to the Union, the emissions from electricity production in the country or territory have increased.

Amendment 53

Proposal for a regulation

Article 2 — paragraph 12

Text proposed by the Commission

Amendment

12. The Union, may conclude agreements with third countries with a view to take account of carbon pricing mechanisms in these countries in the application of Article 9.

12. The Union, may conclude agreements with third countries with a view to take account of carbon pricing mechanisms in these countries in the application of Article 9. Such agreements shall not lead to undue preferential treatment of imports from the third countries as regards the CBAM certificates to be surrendered and shall take into account any carbon pricing mechanisms that are considered to be practices of circumvention within the meaning of Article 27(2).

Amendment 54

Proposal for a regulation

Article 3 — paragraph 1 — point 11

Text proposed by the Commission

Amendment

(11)	‘ competent authority’ means the authority , designated by each Member State in accordance with Article 11 of this Regulation;

(11)	‘ CBAM authority’ means the authority established in accordance with Article 11 of this Regulation;

Amendment 55

Proposal for a regulation

Article 3 — paragraph 1 — point 15

Text proposed by the Commission

Amendment

(15)	‘direct emissions’ mean emissions from the production processes of goods over which the producer has direct control;

(15)	‘direct emissions’ mean emissions from the production processes of goods over which the producer has direct control , including emissions from the production of heating and cooling consumed during the production processes ;

Amendment 56

Proposal for a regulation

Article 3 — paragraph 1 — point 16

Text proposed by the Commission

Amendment

(16)	‘embedded emissions’ mean direct emissions released during the production of goods, calculated pursuant to the methods set out in Annex III;

(16)	‘embedded emissions’ mean direct and indirect emissions released during the production of goods and the electricity consumed during the production processes of goods, calculated pursuant to the methods set out in Annex III;

Amendment 57

Proposal for a regulation

Article 3 — paragraph 1 — point 18

Text proposed by the Commission

Amendment

(18)	‘CBAM certificate’ means a certificate in electronic format corresponding to one tonne of embedded emissions in goods;

(18)	‘CBAM certificate’ means a certificate , common to all Member States, in electronic format corresponding to one tonne of embedded emissions in goods;

Amendment 58

Proposal for a regulation

Article 3 — paragraph 1 — point 22

Text proposed by the Commission

Amendment

(22)	‘actual emissions’ mean the emissions calculated based on primary data from the production processes of goods;

(22)	‘actual emissions’ mean the emissions calculated and verified based on primary data from the production processes of goods and from the production of electricity consumed during the production processes of goods ;

Amendment 59

Proposal for a regulation

Article 3 — paragraph 1 — point 23

Text proposed by the Commission

Amendment

(23)	‘carbon price’ means the monetary amount paid in a third country in the form of a tax or emission allowances under a greenhouse gas emissions trading system, calculated on greenhouse gases covered by such a measure and released during the production of goods;

(23)	‘carbon price’ means the monetary amount paid in a third country in the form of a tax , fee or emission allowances under a greenhouse gas emissions trading system, calculated on greenhouse gases covered by such a measure and released during the production of goods;

Amendment 60

Proposal for a regulation

Article 3 — paragraph 1 — point 28

Text proposed by the Commission

Amendment

(28)	‘indirect emissions’ mean emissions from the production of electricity , heating and cooling, which is consumed during the production processes of goods.

(28)	‘indirect emissions’ mean greenhouse gas emissions from the production processes of electricity which is consumed during the production processes of goods;

Amendment 61

Proposal for a regulation

Article 3 — paragraph 1 — point 28 a (new)

Text proposed by the Commission

Amendment

(28a)

‘least developed country’ means a country included in the list of such countries established by the United Nations Economic and Social Council;

Amendment 62

Proposal for a regulation

Article 3 — paragraph 1 — point 28 b (new)

Text proposed by the Commission

Amendment

(28b)

‘CBAM factor’ means a factor reducing the free allocation of allowances for the installations producing the goods covered in Annex I;

Amendment 63

Proposal for a regulation

Article 3 — paragraph 1 — point 28 c (new)

Text proposed by the Commission

Amendment

(28c)

‘downstream products’ means products produced by using goods as listed in Annex I.

Amendment 64

Proposal for a regulation

Article 4 — paragraph 1

Text proposed by the Commission	Amendment
Goods shall only be imported into the customs territory of the Union by a declarant that is authorised by the competent authority in accordance with Article 17 (‘authorised declarant’).	Goods shall only be imported into the customs territory of the Union by a declarant that is authorised by the CBAM authority in accordance with Article 17 (‘authorised declarant’).
	(The designation ‘CBAM authority’ applies throughout the text. Adopting it will necessitate corresponding changes throughout)

Amendment 65

Proposal for a regulation

Article 5 — paragraph 1

Text proposed by the Commission	Amendment
1. Any declarant shall, prior to importing goods as referred to in Article 2, apply to the competent authority at the place where it is established, for an authorisation to import those goods into the customs territory of the Union.	1. Any declarant shall, prior to importing goods as referred to in Article 2, apply to the CBAM authority at the place where it is established, for an authorisation to import those goods into the customs territory of the Union.

Amendment 66

Proposal for a regulation

Article 5 — paragraph 3 — point e

Text proposed by the Commission

Amendment

(e)

declaration on honour that the declarant was not involved in any serious infringements or repeated infringements of customs legislation, taxation rules and market abuse rules during the five years preceding the year of the application, including that it has no record of serious criminal offences relating to its economic activity;

(e)

declaration on honour that the declarant or, where applicable, a board member of the declarant was not involved in any serious infringements or repeated infringements of customs legislation, taxation rules and market abuse rules during the five years preceding the year of the application, including that it has no record of criminal offences relating to the declarant’s economic activity;

Amendment 67

Proposal for a regulation

Article 5 — paragraph 3 — point f

Text proposed by the Commission

Amendment

(f)

information necessary to demonstrate the declarant’s financial and operational capacity to fulfil its obligations under this Regulation and, if decided by the competent authority on the basis of a risk assessment, supporting documents confirming that information, such as the profit and loss account and the balance sheet for up to the three last financial years for which the accounts were closed;

(f)

information necessary to demonstrate the declarant’s financial and operational capacity to fulfil its obligations under this Regulation and, if decided by the CBAM authority on the basis of a risk assessment, supporting documents confirming that information, such as the profit and loss account and the balance sheet for up to the three last financial years for which the accounts were closed;

Amendment 68

Proposal for a regulation

Article 5 — paragraph 4

Text proposed by the Commission	Amendment
4. The applicant may at any time withdraw its application.	4. The applicant may at any time modify or withdraw its application.

Amendment 69

Proposal for a regulation

Article 5 — paragraph 5

Text proposed by the Commission	Amendment
5. The authorised declarant shall inform the competent authority without delay of any changes of the information provided under paragraph 3, arising after the decision was taken, which may influence the decision taken pursuant to Article 17 or content of the authorisation in accordance with Article 17.	5. The authorised declarant shall inform the CBAM authority without delay of any changes of the information provided under paragraph 3, arising after the decision was taken, which may influence the decision taken pursuant to Article 17 or content of the authorisation in accordance with Article 17.

Amendment 70

Proposal for a regulation

Article 5 — paragraph 6

Text proposed by the Commission

Amendment

6. The Commission is empowered to adopt implementing acts, concerning the standard format of the application and the delays and procedure to be followed by the competent authority when processing applications for authorisation in accordance with paragraph 1 and the rules for identification by the competent authority of the declarants for the importation of electricity. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

6. The Commission is empowered to adopt implementing acts, concerning the standard format of the application and the delays and procedure to be followed by the CBAM authority when processing applications for authorisation in accordance with paragraph 1 and the rules for identification by the CBAM authority of the declarants for the importation of electricity. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

Amendment 71

Proposal for a regulation

Article 6 — paragraph 1

Text proposed by the Commission	Amendment
1. By 31 May of each year, each authorised declarant shall submit a declaration (‘CBAM declaration’), for the calendar year preceding the declaration, to the competent authority.	1. By 31 May of each year, each authorised declarant shall submit a declaration (‘CBAM declaration’), for the calendar year preceding the declaration, to the CBAM authority.

Amendment 72

Proposal for a regulation

Article 6 — paragraph 2 — point c a (new)

Text proposed by the Commission

Amendment

(ca)	a copy of the verification report issued by the accredited verifier under Article 8 and Annex V.

Amendment 73

Proposal for a regulation

Article 7 — paragraph 5

Text proposed by the Commission

Amendment

5. The authorised declarant shall keep those records of information referred to in paragraph 4, including the report of the verifier, until the end of the fourth year after the year in which the CBAM declaration has been or should have been submitted. Those records shall be sufficiently detailed to enable the accredited verifiers to verify the embedded emissions in accordance with Article 8 and to enable the CBAM authority to review the CBAM declaration in accordance with Article 19(1). The authorised declarant shall keep those records for the period referred to in Article 19(1) in which the CBAM authority may review the CBAM declaration.

Amendment 74

Proposal for a regulation

Article 7 — paragraph 6

Text proposed by the Commission

Amendment

6. The Commission is empowered to adopt implementing acts concerning detailed rules regarding the elements of the calculation methods set out in Annex III, including determining system boundaries of production processes, emission factors, installation-specific values of actual emissions and default values and their respective application to individual goods as well as laying down methods to ensure the reliability of data on the basis of which the default values shall be determined, including the level of detail and the verification of the data. Where necessary, those acts shall provide that the default values can be adapted to particular areas, regions or countries to take into account specific objective factors such as geography, natural resources, market conditions, prevailing energy sources, or industrial processes. The implementing acts shall build upon existing legislation for the verification of emissions and activity data for installations covered by Directive 2003/87/EC, in particular Implementing Regulation (EU) 2018/2067.

6. The Commission is empowered to adopt implementing acts concerning the elements of the calculation methods set out in Annex III, including determining system boundaries of production processes, emission factors, installation-specific values of actual emissions and default values and their respective application to individual goods as well as laying down methods to ensure the reliability of data on the basis of which the default values shall be determined, including the level of detail and the verification of the data. Where necessary, those acts shall provide that the default values can be adapted to particular areas, regions or countries to take into account specific objective factors such as geography, natural resources, market conditions, prevailing energy sources, or industrial processes. The implementing acts shall build upon existing legislation for the verification of emissions and activity data for installations covered by Directive 2003/87/EC, in particular Implementing Regulation (EU) 2018/2067.

Amendment 75

Proposal for a regulation

Article 7 — paragraph 7 a (new)

Text proposed by the Commission	Amendment
	7a. The Commission is empowered to adopt delegated acts in accordance with Article 28 supplementing this Regulation regarding the definition of a method to calculate embedded indirect emissions for simple and complex products and relevant default values, as well as a method to determine the CBAM price of indirect embedded emissions.

Amendment 76

Proposal for a regulation

Article 8 — paragraph 1

Text proposed by the Commission	Amendment
1. The authorised declarant shall ensure that the total embedded emissions declared in the CBAM declaration submitted pursuant to Article 6 are verified by a verifier accredited pursuant to Article 18, based on the verification principles set out in Annex V.	1. The authorised CBAM declarant shall ensure that the total embedded emissions declared in the CBAM declaration submitted pursuant to Articles 6 and 35, as well as the methodology and supporting data and documents, are verified by a verifier accredited pursuant to Article 18, based on the verification principles set out in Annex V.

Amendment 77

Proposal for a regulation

Article 8 — paragraph 1 a (new)

Text proposed by the Commission	Amendment
	1a. The CBAM authority is authorised to verify the accuracy of the information provided in the CBAM declaration pursuant to this Article.

Amendment 78

Proposal for a regulation

Article 8 — paragraph 3 — subparagraph 1

Text proposed by the Commission

Amendment

The Commission is empowered to adopt implementing acts concerning the principles of verification referred to in paragraph 1 as regards the possibility to waive the obligation for the verifier to visit the installation where relevant goods are produced and the obligation to set thresholds for deciding whether misstatements or non-conformities are material and concerning the supporting documentation needed for the verification report.

The Commission is empowered to adopt delegated acts in accordance with Article 28 supplementing this Regulation concerning the principles of verification referred to in paragraph 1 as regards the possibility to waive the obligation for the verifier to visit the installation where relevant goods are produced and the obligation to set thresholds for deciding whether misstatements or non-conformities are material and concerning the supporting documentation needed for the verification report. The possibility to waive the obligation for the accredited verifier to visit the installation where relevant goods are produced may only be used in duly justified circumstances where the installation has a well-known standard profile regarding production and technology, allowing for a reliable estimation of embedded emissions. In any case, the CBAM authority shall remain authorised to verify the accuracy of the information provided in the CBAM declaration. The provisions laid down in such delegated acts shall be equivalent to those in Implementing Regulation (EU) 2018/2067.

Amendment 79

Proposal for a regulation

Article 8 — paragraph 3 — subparagraph 2

Text proposed by the Commission	Amendment
The implementing acts referred to in the first subparagraph shall be adopted in accordance with the examination procedure referred to in Article 29(2).	deleted

Amendment 80

Proposal for a regulation

Article 9 — title

Text proposed by the Commission	Amendment
Carbon price paid in a country of origin	Explicit carbon price paid in a country of origin

Amendment 81

Proposal for a regulation

Article 9 — paragraph 1

Text proposed by the Commission	Amendment
1. An authorised declarant may claim in its CBAM declaration a reduction in the number of CBAM certificates to be surrendered in order for the carbon price paid in the country of origin for the declared embedded emissions to be taken into account.	1. An authorised declarant may claim in its CBAM declaration a reduction in the number of CBAM certificates to be surrendered in order for the explicit carbon price paid in the country of origin for the declared embedded emissions to be taken into account. That reduction may also be 100 % if the carbon price paid in the country of origin is equivalent to or higher than the Union carbon price.

Amendment 82

Proposal for a regulation

Article 9 — paragraph 2

Text proposed by the Commission

Amendment

2. The authorised declarant shall keep records of the documentation, certified by an independent person , required to demonstrate that the declared embedded emissions were subject to a carbon price in the country of origin of the goods and keep evidence of the proof of the actual payment for that carbon price which should not have been subject to an export rebate or any other form of compensation on exportation.

2. The authorised declarant shall keep records of the documentation, certified by an accredited verifier , required to demonstrate that the declared embedded emissions were subject to an explicit carbon price in the country of origin of the goods and keep evidence of the proof of the actual payment for that carbon price which should not have been subject to an export rebate or any other form of direct or indirect compensation on exportation. The name and contact details of the accredited verifier shall appear on the documentation. The authorised declarant shall transmit such documentation to the CBAM authority.

Amendment 83

Proposal for a regulation

Article 9 — paragraph 4

Text proposed by the Commission

Amendment

4. The Commission is empowered to adopt implementing acts establishing the methodology for calculating the reduction in the number of CBAM certificates to be surrendered, regarding the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate in accordance with paragraph 1, and regarding the qualifications of the independent person certifying the information as well as elements of proof of the carbon price paid and the absence of export rebates or other forms of compensation on exportation being applied as referred to in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

4. The Commission is empowered to adopt implementing acts establishing the methodology for calculating the reduction in the number of CBAM certificates to be surrendered, regarding the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate in accordance with paragraph 1, and regarding the qualifications of the accredited verifier certifying the information as well as elements of proof of the carbon price paid and the absence of export rebates or other forms of direct and indirect compensation on exportation being applied as referred to in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

Amendment 84

Proposal for a regulation

Article 10 — paragraph 1

Text proposed by the Commission	Amendment
1. The Commission shall, upon request by an operator of an installation located in a third country, register the information on that operator and on its installation in a central database referred to in Article 14(4) .	1. The Commission shall, upon request by an operator of an installation located in a third country, register the information on that operator and on its installation in a CBAM registry referred to in Article 14 .

Amendment 85

Proposal for a regulation

Article 10 — paragraph 6

Text proposed by the Commission	Amendment
6. The records referred to in paragraph 5, point (c), shall be sufficiently detailed to enable the verification in accordance with paragraph 5, point (b), and to enable any competent authority to review, in accordance with Article 19(1), the CBAM declaration made by an authorised declarant to whom the relevant information was disclosed in accordance with paragraph 8.	6. The records referred to in paragraph 5, point (c), shall be sufficiently detailed to enable the verification in accordance with paragraph 5, point (b), and to enable the CBAM authority to review and verify , in accordance with Article 19(1), the CBAM declaration made by an authorised declarant to whom the relevant information was disclosed in accordance with paragraph 8.

Amendment 86

Proposal for a regulation

Article 10 — paragraph 7

Text proposed by the Commission	Amendment
7. An operator may disclose the information on the verification of embedded emissions referred to in paragraph 5 to an authorised declarant . The authorised declarant shall be entitled to avail itself of that disclosed information to fulfil the obligation referred to in Article 8.	7. The information on verified embedded emissions referred to in paragraph 5 shall be publicly accessible via the CBAM registry . The authorised declarant shall be entitled to avail itself of that information to fulfil the obligation referred to in Article 8.

Amendment 87

Proposal for a regulation

Chapter III — title

Text proposed by the Commission	Amendment
Competent authorities	The CBAM authority

Amendment 88

Proposal for a regulation

Article 11 — title

Text proposed by the Commission	Amendment
Competent authorities	The CBAM authority

Amendment 89

Proposal for a regulation

Article 11 — paragraph 1 — subparagraph 1

Text proposed by the Commission	Amendment
Each Member State shall designate the competent authority to carry out the obligations under this Regulation and inform the Commission thereof.	The Commission shall establish the CBAM authority to perform the obligations under this Regulation.

Amendment 90

Proposal for a regulation

Article 11 — paragraph 1 — subparagraph 2

Text proposed by the Commission	Amendment
The Commission shall make available to the Member States a list of all competent authorities and publish this information in the Official Journal of the European Union.	deleted

Amendment 91

Proposal for a regulation

Article 11 — paragraph 2

Text proposed by the Commission	Amendment
2. Member States shall require that competent authorities exchange any information that is essential or relevant to the exercise of their functions and duties.	deleted

Amendment 92

Proposal for a regulation

Article 12

Text proposed by the Commission	Amendment
Article 12	deleted
Commission
The Commission shall assist the competent authorities in carrying out their obligations under this Regulation and coordinate their activities.

Amendment 93

Proposal for a regulation

Article 12 a (new)

Text proposed by the Commission	Amendment
	Article 12a
	Decisions of the CBAM authority
	1. The CBAM authority shall, without delay, take decisions in order to implement this Regulation.
	2. A decision of the CBAM authority shall take effect from the date of notification of that decision to the addressee.
	3. If the CBAM authority considers that it does not have all the necessary information to take a decision, it shall contact the addressee of the decision and specify what additional information is required. In such a case, the addressee of the decision shall, without delay, submit the required additional information to the CBAM authority.
	4. The addressee of the decision shall inform the CBAM authority without delay of any changes to the information provided that arise after the decision was taken. In such a case, the CBAM authority shall reassess its decision in light of that information and confirm or modify that decision.
	5. Where the CBAM authority proposes to takes a decision which adversely affects the addressee of the decision, it shall set out the grounds on which the proposed decision is based and shall include in the decision a reference to the right of appeal provided for in Article 27a. Before such a decision is taken, the CBAM authority shall give the addressee of the proposed decision the opportunity to make its point of view known to the CBAM authority within a fixed period of time. Following the expiry of that period, the CBAM authority shall notify the addressee of the decision.
	6. The CBAM authority may, at any time, annul, revoke or amend its decision following a reasoned request by the addressee of the decision or on its own initiative, if appropriate.
	7. The Commission is empowered to adopt delegated acts to supplement this Regulation by specifying further detailed arrangements and procedural rules concerning this Article. Those delegated acts shall be adopted in accordance with Article 28.

Amendment 94

Proposal for a regulation

Article 13 — paragraph 1

Text proposed by the Commission

Amendment

All information acquired by the competent authority in the course of performing its duty which is by its nature confidential or which is provided on a confidential basis shall be covered by an obligation of professional secrecy. Such information shall not be disclosed by the competent authority without the express permission of the person or authority that provided it. It may be shared with customs authorities, the Commission and the European Public Prosecutors Office and shall be treated in accordance with Council Regulation (EC) No 515/97.

All information acquired by the CBAM authority in the course of performing its duty which is by its nature confidential or which is provided on a confidential basis shall be covered by an obligation of professional secrecy. Such information shall not be disclosed by the CBAM authority without the express permission of the person or authority that provided it. It may be shared with customs authorities, the Commission and the European Public Prosecutors Office and shall be treated in accordance with Council Regulation (EC) No 515/97.

Amendment 95

Proposal for a regulation

Article 14

Text proposed by the Commission

Amendment

Article 14

deleted

National registries and central database

1. The competent authority of each Member State shall establish a national registry of declarants authorised in that Member State in the form of a standardised electronic database containing the data regarding the CBAM certificates of those declarants, and to provide for confidentiality in accordance with the conditions set out in Article 13.

2. The database referred to in paragraph 1 shall contain accounts with information about each authorised declarant, in particular:

(a)	the name and contact details of the authorised declarant;

(b)	the EORI number of the authorised declarant;

(c)	the CBAM account number;

(d)	the number, the price of sale, the date of purchase, the date of surrender, or the date of re-purchase, or that of the cancellation by the competent authority, of CBAM certificates for each authorised declarant.

3. The information in the database referred to in paragraph 2 shall be confidential.

4. The Commission shall establish a central database accessible to the public containing the names, addresses and contact details of the operators and the location of installations in third countries in accordance with Article 10(2). An operator may choose not to have its name, address and contact details accessible to the public.

Amendment 96

Proposal for a regulation

Article 14 a (new)

Text proposed by the Commission

Amendment

Article 14a

CBAM registry

1. The CBAM authority shall set up a CBAM registry to execute processes relating to CBAM certificates, in accordance with Articles 20, 21 and 22.

2. The CBAM registry shall contain an electronic database with information about each authorised declarant, in particular:

(a)	name and contact details;

(b)	EORI number;

(c)	CBAM account number;

(d)	number, price and date of purchase of CBAM certificates held.

3. The CBAM registry shall also contain, in a separate section of the database, the names and additional details of the operators and of the installations in third countries that are registered in accordance with Article 10. That section of the database shall in particular contain, where applicable, the verified emissions of the installations.

4. The information on the database shall be confidential except for the names of the authorised declarants and operators, the location and, where appropriate, the name of the installations in third countries and their verified emissions, which shall be accessible to the public in an interoperable format.

5. The Commission shall adopt implementing acts concerning the infrastructure and specific processes of the CBAM registry and the electronic databases containing the information referred to in paragraphs 2 and 3. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

Amendment 97

Proposal for a regulation

Article 15

Text proposed by the Commission	Amendment
Article 15	deleted
Central administrator
1. The Commission shall act as central administrator to maintain an independent transaction log recording the purchase of CBAM certificates, their holding, surrender, re-purchase and cancellation and ensure coordination of national registries.
2. The central administrator shall carry out risk-based controls on transactions recorded in national registries through an independent transaction log to ensure that there are no irregularities in the purchase, holding, surrender, re-purchase and cancellation of CBAM certificates.
3. If irregularities are identified as a result of the controls carried out under paragraph 2, the Commission shall inform the Member State or Member States concerned for further investigation in order to correct the identified irregularities.

Amendment 98

Proposal for a regulation

Article 16 — title

Text proposed by the Commission	Amendment
Accounts in the national registries	Accounts in the CBAM registry

Amendment 99

Proposal for a regulation

Article 16 — paragraph 1

Text proposed by the Commission	Amendment
1. The competent authority shall assign to each authorised declarant a unique CBAM account number.	1. The CBAM authority shall assign to each authorised declarant a unique CBAM account number.

Amendment 100

Proposal for a regulation

Article 16 — paragraph 2

Text proposed by the Commission	Amendment
2. Each authorised declarant shall be granted access to its account in the registry.	2. Each authorised declarant shall be granted access to its account in the CBAM registry.

Amendment 101

Proposal for a regulation

Article 16 — paragraph 3

Text proposed by the Commission	Amendment
3. The competent authority shall set up the account as soon as the authorisation referred to in Article 17(1) is granted and notify the authorised declarant thereof.	3. The CBAM authority shall set up the account as soon as the authorisation referred to in Article 17(1) is granted and notify the authorised declarant thereof.

Amendment 102

Proposal for a regulation

Article 16 — paragraph 4

Text proposed by the Commission	Amendment
4. If the authorised declarant has ceased its economic activity or its authorisation was revoked, the competent authority shall close the account of that declarant.	4. If the authorised declarant has ceased its economic activity or its authorisation was revoked, the CBAM authority shall close the account of that declarant.

Amendment 103

Proposal for a regulation

Article 17 — paragraph 1 — introductory part

Text proposed by the Commission	Amendment
1. The competent authority shall authorise a declarant who submits an application for authorisation in accordance with Article 5(1), if the following conditions are fulfilled:	1. The CBAM authority shall authorise a declarant who submits an application for authorisation in accordance with Article 5(1), if the following conditions are fulfilled:

Amendment 104

Proposal for a regulation

Article 17 — paragraph 2

Text proposed by the Commission	Amendment
2. Where the competent authority finds that the conditions listed in paragraph 1 are not fulfilled, or where the applicant has failed to provide the information listed in Article 5(3), the authorisation of the declarant shall be refused.	2. Where the CBAM authority finds that the conditions listed in paragraph 1 are not fulfilled, or where the applicant has failed to provide the information listed in Article 5(3), the authorisation of the declarant shall be refused.

Amendment 105

Proposal for a regulation

Article 17 — paragraph 3

Text proposed by the Commission

Amendment

3. If the competent authority refuses to authorise a declarant, the declarant requesting the authorisation may, prior to an appeal, object to the relevant authority under national law, who shall either instruct the national administrator to open the account or uphold the refusal in a reasoned decision, subject to requirements of national law that pursue a legitimate objective compatible with this Regulation and are proportionate.

deleted

Amendment 106

Proposal for a regulation

Article 17 — paragraph 4 — introductory part

Text proposed by the Commission	Amendment
4. A decision of the competent authority authorising a declarant shall contain the following information	4. A decision of the CBAM authority authorising a declarant shall contain the following information

Amendment 107

Proposal for a regulation

Article 17 — paragraph 6 — subparagraph 1

Text proposed by the Commission	Amendment
The competent authority shall require the provision of a guarantee in order to authorise a declarant in accordance with paragraph 1, if the declarant was not established throughout the two financial years that precede the year when the application in accordance with Article 5(1) was submitted.	The CBAM authority shall require the provision of a guarantee in order to authorise a declarant in accordance with paragraph 1, if the declarant was not established throughout the two financial years that precede the year when the application in accordance with Article 5(1) was submitted.

Amendment 108

Proposal for a regulation

Article 17 — paragraph 6 — subparagraph 2

Text proposed by the Commission	Amendment
The competent authority shall fix the amount of such guarantee at the maximum amount, as estimated by the competent authority, of the value of the CBAM certificates that the authorised declarant have to surrender, in accordance with Article 22.	The CBAM authority shall fix the amount of such guarantee at the maximum amount, as estimated by the CBAM authority, of the value of the CBAM certificates that the authorised declarant have to surrender, in accordance with Article 22.

Amendment 109

Proposal for a regulation

Article 17 — paragraph 7

Text proposed by the Commission

Amendment

7. The guarantee shall be provided as a bank guarantee, payable at first demand, by a financial institution operating in the Union or by another form of guarantee which provides equivalent assurance. Where the competent authority establishes that the guarantee provided does not ensure, or is no longer certain or sufficient to ensure the amount of CBAM obligations, it shall require the authorised declarant either to provide an additional guarantee or to replace the initial guarantee with a new guarantee, according to its choice.

7. The guarantee shall be provided as a bank guarantee, payable at first demand, by a financial institution operating in the Union or by another form of guarantee which provides equivalent assurance. Where the CBAM authority establishes that the guarantee provided does not ensure, or is no longer certain or sufficient to ensure the amount of CBAM obligations, it shall require the authorised declarant either to provide an additional guarantee or to replace the initial guarantee with a new guarantee, according to its choice.

Amendment 110

Proposal for a regulation

Article 17 — paragraph 8

Text proposed by the Commission	Amendment
8. The competent authority shall release the guarantee immediately after 31 May of the second year in which the authorised declarant has surrendered CBAM certificates in accordance with Article 22.	8. The CBAM authority shall release the guarantee immediately after 31 May of the second year in which the authorised declarant has surrendered CBAM certificates in accordance with Article 22.

Amendment 111

Proposal for a regulation

Article 17 — paragraph 8 a (new)

Text proposed by the Commission	Amendment
	8a. The CBAM authority may verify the accuracy and completeness of the information given by the applicant in accordance with Article 5(3) and the existence, authenticity, accuracy and validity of any supporting document. The CBAM authority may carry out such controls at the premises of the applicant.

Amendment 112

Proposal for a regulation

Article 17 — paragraph 9

Text proposed by the Commission	Amendment
9. The competent authority shall revoke the authorisation for a declarant who no longer meets the conditions laid down in paragraph 1, or who fails to cooperate with that authority.	9. The CBAM authority shall revoke the authorisation for a declarant who no longer meets the conditions laid down in paragraph 1, or who fails to cooperate with that authority, or who has been found to repeatedly or seriously infringe this Regulation .

Amendment 113

Proposal for a regulation

Article 17 — paragraph 9 a (new)

Text proposed by the Commission	Amendment
	9a. The Commission shall, by means of implementing acts, adopt the practical arrangements for the application of the criteria referred to in paragraph 1 and for guarantees referred to in paragraph 6. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

Amendment 114

Proposal for a regulation

Article 18 — paragraph 1

Text proposed by the Commission	Amendment
1. Any person accredited pursuant to Implementing Regulation (EU) 2018/2067 shall be regarded as an accredited verifier under this Regulation.	1. Any legal person accredited pursuant to Implementing Regulation (EU) 2018/2067 shall be regarded as an accredited verifier under this Regulation.

Amendment 115

Proposal for a regulation

Article 18 — paragraph 2

Text proposed by the Commission	Amendment
2. In addition to paragraph 1, a national accreditation body may on request accredit a person as a verifier under this Regulation after checking the documentation attesting its capacity to apply the verification principles referred to Annex V to perform the obligations of control of the embedded emissions established in Articles 8, 10 and 38.	deleted

Amendment 116

Proposal for a regulation

Article 18 — paragraph 3

Text proposed by the Commission	Amendment
3. The Commission is empowered to adopt delegated acts in accordance with Article 28 for the accreditation referred to in paragraph 2 , specifying conditions for the control and oversight of accredited verifiers, for the withdrawal of accreditation and for mutual recognition and peer evaluation of the accreditation bodies.	3. The Commission is empowered to adopt delegated acts in accordance with Article 28 for the accreditation referred to in paragraph 1 , specifying conditions for the control and oversight of accredited verifiers, for the withdrawal of accreditation and for mutual recognition and peer evaluation of the accreditation bodies.

Amendment 117

Proposal for a regulation

Article 19 — paragraph 1

Text proposed by the Commission

Amendment

1. The competent authority may review the CBAM declaration within the period ending with the fourth year after the year in which the declaration should have been submitted. The review may consist in verifying the information provided in the CBAM declaration on the basis of the information communicated by the customs authorities in accordance with Article 25(2) and any other relevant evidence, and on the basis of any audit deemed necessary, including at the premises of the authorised declarant.

1. The CBAM authority may review the CBAM declaration within the period ending with the fourth year after the year in which the declaration should have been submitted. The review may consist in verifying the information provided in the CBAM declaration on the basis of the information communicated by the customs authorities in accordance with Article 25(2) and any other relevant evidence, and on the basis of any audit deemed necessary, including at the premises of the authorised declarant.

Amendment 118

Proposal for a regulation

Article 19 — paragraph 3

Text proposed by the Commission

Amendment

3. Where the competent authority has established that the declared number of CBAM certificates to be surrendered is incorrect, or that no CBAM declaration has been submitted pursuant to paragraph 2, it shall adjust the number of CBAM certificates due by the authorised declarant. The competent authority shall notify the authorised declarant of the adjustment and request that the authorised declarant shall surrender the additional CBAM certificates within one month.

3. Where the CBAM authority has established that the declared number of CBAM certificates to be surrendered is incorrect, or that no CBAM declaration has been submitted pursuant to paragraph 2, it shall adjust the number of CBAM certificates due by the authorised declarant. The CBAM authority shall notify the authorised declarant of the adjustment and request that the authorised declarant shall surrender the additional CBAM certificates within one month.

Amendment 119

Proposal for a regulation

Article 19 — paragraph 4

Text proposed by the Commission	Amendment
4. The recipient of the notification referred to in paragraph 3 may lodge an appeal of the notification. The recipient of the notification shall be provided with information regarding the procedure to be followed in the event of an appeal.	deleted

Amendment 120

Proposal for a regulation

Article 19 — paragraph 5

Text proposed by the Commission	Amendment
5. Where CBAM certificates have been surrendered in excess of the number due, the competent authority shall, without delay, reimburse the authorised declarant the value of CBAM certificates surrendered in excess, calculated at the average price paid for CBAM certificates by the authorised declarant during the year of import .	5. Where CBAM certificates have been surrendered in excess of the number due, the CBAM authority shall, without delay, reimburse the authorised declarant the value of CBAM certificates surrendered in excess, calculated at the average price paid for CBAM certificates by the authorised declarant for those certificates at the time of purchase .

Amendment 121

Proposal for a regulation

Article 20 — paragraph 1

Text proposed by the Commission	Amendment
1. The competent authority of each Member State shall sell CBAM certificates to declarants authorised in that Member State at the price calculated in accordance with Article 21.	1. The CBAM authority shall sell CBAM certificates to authorised declarants at the price calculated in accordance with Article 21.

Amendment 122

Proposal for a regulation

Article 20 — paragraph 2

Text proposed by the Commission	Amendment
2. The competent authority shall ensure that each CBAM certificate is assigned a unique unit identification code upon its creation and shall register the unique unit identification number, the price and date of sale of the certificate in the national registry in the account of the authorised declarant purchasing it.	2. The CBAM authority shall ensure that each CBAM certificate is assigned a unique unit identification code upon its creation and shall register the unique unit identification number, the price and date of sale of the certificate in the CBAM registry in the account of the authorised declarant purchasing it.

Amendment 123

Proposal for a regulation

Article 21 — paragraph 3

Text proposed by the Commission	Amendment
3. The Commission is empowered to adopt implementing acts to further define the methodology to calculate the average price of CBAM certificates and practical arrangements for the publication of the price. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).	3. The Commission is empowered to adopt implementing acts to implement the methodology , provided for in paragraph 1, to calculate the average price of CBAM certificates and the practical arrangements for the publication of the price. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

Amendment 124

Proposal for a regulation

Article 22 — paragraph 1

Text proposed by the Commission	Amendment
1. By 31 May of each year, the authorised declarant shall surrender a number of CBAM certificates to the competent authority that corresponds to the embedded emissions declared in accordance with Article 6(2)(c) and verified in accordance with Article 8 for the calendar year preceding the surrender	1. By 31 May of each year, the authorised declarant shall surrender a number of CBAM certificates to the CBAM authority that corresponds to the embedded emissions calculated in accordance with Annex IIIa and declared in accordance with Article 6(2)(c) and verified in accordance with Article 8 for the calendar year preceding the surrender.

Amendment 125

Proposal for a regulation

Article 22 — paragraph 2

Text proposed by the Commission

Amendment

2. For the purposes of paragraph 1, the authorised declarant shall ensure that the required number of CBAM certificates is available on its account in the national registry. In addition, the authorised declarant shall ensure that the number of CBAM certificates on its account in the national registry at the end of each quarter corresponds to at least 80 per cent of the embedded emissions, determined by reference to default values in accordance with the methods set out in Annex III, in all goods it has imported since the beginning of the calendar year.

2. For the purposes of paragraph 1, the authorised declarant shall ensure that the required number of CBAM certificates is available on its account in the CBAM registry. In addition, the authorised declarant shall ensure that the number of CBAM certificates on its account in the CBAM registry at the end of each quarter corresponds to at least 80 per cent of the embedded emissions, determined by reference to default values in accordance with the methods set out in Annex III, in all goods it has imported since the beginning of the calendar year.

Amendment 126

Proposal for a regulation

Article 22 — paragraph 3

Text proposed by the Commission	Amendment
3. Where the competent authority finds that the number of CBAM certificates in the account of an authorised declarant is not in compliance with the obligations pursuant to paragraph 2, second sentence, that authority shall notify the adjustment and request that the authorised declarant surrenders the additional CBAM certificates within one month.	3. Where the CBAM authority finds that the number of CBAM certificates in the account of an authorised declarant is not in compliance with the obligations pursuant to paragraph 2, second sentence, that authority shall notify the adjustment and request that the authorised declarant surrenders the additional CBAM certificates within one month.

Amendment 127

Proposal for a regulation

Article 22 — paragraph 4

Text proposed by the Commission	Amendment
4. The recipient of the notification referred to in paragraph 3 may lodge an appeal of the notification. The recipient of the notification shall be provided with information regarding the procedure to be followed in the event of an appeal.	deleted

Amendment 128

Proposal for a regulation

Article 23 — paragraph 1

Text proposed by the Commission

Amendment

1. The competent authority of each Member State shall, on request by a declarant authorised in that Member State , re-purchase the excess of CBAM certificates remaining on the account of the declarant in the national registry after the certificates have been surrendered in accordance with Article 22. The request to re-purchase shall be submitted by 30 June of each year when CBAM certificates were surrendered.

1. The CBAM authority shall, on request by an authorised declarant , re-purchase the excess of CBAM certificates remaining on the account of the declarant in the CBAM registry after the certificates have been surrendered in accordance with Article 22. The request to re-purchase shall be submitted by 30 June of each year when CBAM certificates were surrendered.

Amendment 129

Proposal for a regulation

Article 24 — paragraph 1

Text proposed by the Commission	Amendment
By 30 June of each year, the competent authority of each Member State shall cancel any CBAM certificates that were purchased during the year before the previous calendar year and that remained in the accounts in the national registry of the declarants authorised in that Member State .	By 30 June of each year, the CBAM authority shall cancel any CBAM certificates that were purchased during the year before the previous calendar year and that remained in the accounts in the CBAM registry of the authorised declarants and shall inform the authorised declarants concerned of this without undue delay .

Amendment 130

Proposal for a regulation

Article 24 a (new)

Text proposed by the Commission	Amendment
	Article 24a
	Revenues generated by the sale of CBAM certificates
	1. The revenues generated by the sale of CBAM certificates shall not constitute assigned revenue. This Regulation shall not prevent revenues generated by the sale of CBAM certificates from being defined as own resources in accordance with Article 311 TFEU and entered in the Union budget as general income.
	2. To ensure that the CBAM fulfils its aim to reduce global carbon emissions and help meet the Union’s climate objectives and international commitments, including the Paris Agreement, Union financial support is provided to support climate mitigation and adaptation in least developed countries' including their efforts towards the de-carbonisation and transformation of their manufacturing industries without prejudice to paragraph 1. Such funding is made available through the Union budget in order to contribute to international climate finance by facilitating the adaptation of the industries concerned to the new obligations established by this Regulation and complemented by technical assistance, subject to the full implementation and enforcement of internationally recognised labour and social rights such as the ILO core labour standards in the recipient country.
	The new financial support from the Union budget should be provided under the relevant geographic and thematic programme of the Neighbourhood, Development and International Cooperation Instrument established by Regulation (EU) 2021/947 and an amount determined on a yearly basis, which should correspond at least to the level of revenues generated by the sale of CBAM certificates.
	3. To ensure transparency of the use of revenues generated by the sale of CBAM certificates the Commission shall, on a yearly basis, report to the European Parliament and to the Council on how the equivalent amount in financial value of those revenues from the previous year has been used and how this has contributed to the decarbonisation of the manufacturing industry in the least developed countries.

Amendment 131

Proposal for a regulation

Article 25

Text proposed by the Commission	Amendment
Article 25	deleted
Procedures at the border when goods are imported
1. The customs authorities shall not allow the importation of goods unless the declarant is authorised by a competent authority at the latest at the release for free circulation of the goods.
2. The customs authorities shall periodically communicate information on the goods declared for importation, which shall include the EORI number and the CBAM account number of the declarant, the 8-digit CN code of the goods, the quantity, the country of origin, the date of declaration and the customs procedure, to the competent authority of the Member State where the declarant has been authorised.
3. The custom authorities shall carry out controls on the goods in accordance with Article 46 of Regulation (EU) No 952/2013, including the 8-digit CN code, the quantity and the country of origin of the imported goods. The Commission shall include the risks relating to CBAM in the design of the common risk criteria and standards pursuant to Article 50 of Regulation (EU) No 952/2013.
4. The customs authorities may communicate in accordance with Article 12(1) of Regulation (EU) No 952/2013, confidential information acquired by the customs authorities in the course of performing their duty or provided on a confidential basis, to the competent authority of the Member State where the declarant has been authorised. The competent authorities of the Member States shall treat and exchange this information in accordance with Council Regulation (EC) No 515/97.
5. The Commission is empowered to adopt implementing acts defining the information, the timing and the means for communicating the information pursuant to paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

Amendment 132

Proposal for a regulation

Article 25 a (new)

Text proposed by the Commission	Amendment
	Article 25a
	Procedures at the border when goods are imported
	1. The customs authorities shall ensure that the declarant of the goods is registered with the CBAM authority when the goods are declared for importation and at the latest when the goods are released for free circulation.
	2. The customs authorities shall periodically communicate to the CBAM authority specific information on the goods listed in Annex I that are declared for importation. That information shall include at least the quantity, country of origin and declarant of the goods. The customs authorities may communicate confidential information, as referred to in Article 12(1) of Regulation (EU) No 952/2013, to the CBAM authority for the purpose of this Regulation.
	3. Imported products shall be considered as originating in third countries in accordance with the rules on non-preferential origin of goods referred to in Article 59 of Regulation (EU) No 952/2013.
	4. The Commission shall lay down, by means of implementing acts, the periodicity and the information referred to in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).
	5. From the date of initiation of an action under Article 26a or 27, and after having informed the Member States in due time, the Commission may direct the customs authorities to take the appropriate steps to register imports, so that measures may subsequently be applied against those imports from the date of such registration. The Commission may make imports subject to registration following a request from the Union industry which contains sufficient evidence to justify such action or at the Commission’s own initiative. Registration shall be introduced by a Commission decision which shall specify the purpose of the action and, if appropriate, the estimated amount of possible future liability. Imports shall not be made subject to registration for a period longer than nine months.

Amendment 133

Proposal for a regulation

Article 26

Text proposed by the Commission

Amendment

Article 26

deleted

Penalties

1. An authorised declarant who fails to surrender, by 31 May of each year, a number of CBAM certificates corresponding to the emissions embedded in goods imported during the previous year shall be liable to a penalty identical to the excess emissions penalty set out in Article 16(3) of Directive 2003/87/EC, increased pursuant to Article 16(4) of that Directive, in the year of importation of the goods, for each CBAM certificate that the authorised declarant should have surrendered.

2. Any person other than an authorised declarant, introducing goods into the customs territory of the Union without surrendering CBAM certificates according to this Regulation shall be liable to the penalty referred to in paragraph 1 in the year of introduction of the goods, for each CBAM certificate that the person should have surrendered.

3. Payment of the penalty shall in no case release the authorised declarant from the obligation to surrender the outstanding number of CBAM certificates in a given year to the competent authority of the Member State where the declarant has been authorised.

4. If the competent authority determines that an authorised declarant has failed to comply with the obligation to surrender CBAM certificates as specified in paragraph 1, or that a person has introduced goods into the customs territory of the Union as specified in paragraph 2, the competent authority shall impose the penalty and notify the authorised declarant or, in the situation under paragraph 2, the person:

(a)	that the competent authority has concluded that the authorised declarant or the person fails to comply with the obligation of surrendering CBAM certificates for a given year;

(b)	of the reasons for its conclusion;

(c)	of the amount of the penalty imposed on the authorised declarant or on the person;

(d)	of the date from which the penalty is due;

(e)	of the action the competent authority considers the authorised declarant or the person should take to comply with its obligation under point (a) depending on the facts and circumstances of the case; and

(f)	of the right of the authorised declarant or of the person to appeal under national rules.

5. Member States may apply administrative or criminal sanctions for failure to comply with the CBAM legislation in accordance with their national rules in addition to penalties referred to in paragraph 2. Such sanctions shall be effective, proportionate and dissuasive.

Amendment 134

Proposal for a regulation

Article 26 a (new)

Text proposed by the Commission

Amendment

Article 26a

Penalties

1. An authorised declarant who fails to surrender, by 31 May of each year, the number of CBAM certificates corresponding to the emissions embedded in goods imported during the previous year or who submits to the authority false information related to actual emissions with a view to obtaining a favourable individual treatment, shall be liable for the payment of a penalty.

2. The amount of the penalty shall be equivalent to three times the average price of CBAM certificates in the previous year for each CBAM certificate that the authorised declarant did not surrender in accordance with Article 22. The payment of the penalty shall not release the authorised declarant from the obligation of surrendering the outstanding number of CBAM certificates to the CBAM authority.

3. In the case of repeated offences, the CBAM authority may decide to suspend the CBAM account of the authorised declarant.

4. In addition to the penalty referred to in paragraph 2, Member States shall apply administrative or criminal penalties for failure to comply with the CBAM in accordance with their national law. Such penalties shall be effective, proportionate and dissuasive.

5. If the CBAM authority determines that an authorised declarant has failed to comply with the obligation to surrender CBAM certificates or has submitted false information to the authority, the CBAM authority shall impose the penalty referred to in paragraph 2 and notify the authorised declarant:

(a)	that the CBAM authority has concluded that the authorised declarant fails to comply with the obligation of surrendering CBAM certificates for a given year in accordance with Article 22 or has submitted false information to the authority;

(b)	of the reasons for its conclusion;

(c)	of the amount of the penalty imposed on the authorised declarant;

(d)	of the date from which the penalty is due;

(e)	of the action the competent authority considers the authorised declarant should take to comply with its obligations under point (a) depending on the facts and circumstances of the case; and

(f)	of the right of the authorised declarant to appeal under national law.

Amendment 135

Proposal for a regulation

Article 27 — paragraph 2

Text proposed by the Commission

Amendment

2. Practices of circumvention include situations where a change in the pattern of trade in relation to goods included in the scope of this Regulation has insufficient due cause or economic justification other than avoiding obligations as laid down in this Regulation and consist in replacing those goods with slightly modified products, which are not included in the list of goods in Annex I but belong to a sector included in the scope of this Regulation.

2. Practices of circumvention shall be any measures that have the objective of avoiding any of the obligations laid down in this Regulation . Those shall be situations which stem from a practice, process or work which has insufficient due cause or economic justification other than avoiding or mitigating obligations as laid down in this Regulation and may consist of, but are not limited to:

Amendment 136

Proposal for a regulation

Article 27 — paragraph 2 — point a (new)

Text proposed by the Commission

Amendment

(a)	direct and indirect subsidies, such as favourable tax arrangements, energy pricing, export rebates or other forms of compensation on exportation, for goods covered by this Regulation in order to absorb parts or the entirety of the costs linked to a CO2 price paid in the third country;

Amendment 137

Proposal for a regulation

Article 27 — paragraph 2 — point b (new)

Text proposed by the Commission

Amendment

(b)	a CO2 price paid in a third country placed only on goods to be exported to the Union;

Amendment 138

Proposal for a regulation

Article 27 — paragraph 2 — point c (new)

Text proposed by the Commission

Amendment

(c)	replacing those goods with slightly modified products, which are not included in the list of goods in Annex I but belong to a sector included in the scope of this Regulation;

Amendment 139

Proposal for a regulation

Article 27 — paragraph 2 — point d (new)

Text proposed by the Commission

Amendment

(d)	the outsourcing of production of downstream products that contain one or more of the goods listed in Annex I with the objective of avoiding the payment of the CO2 price in the Union;

Amendment 140

Proposal for a regulation

Article 27 — paragraph 2 — point e (new)

Text proposed by the Commission

Amendment

(e)	the shipment of the product concerned via third countries where no or more favourable obligations apply; or

Amendment 141

Proposal for a regulation

Article 27 — paragraph 2 — point f (new)

Text proposed by the Commission

Amendment

(f)	the reorganisation by exporters or producers of their patterns and channels of sale and production, or any other kinds of dual production and dual sale practices.

Amendment 142

Proposal for a regulation

Article 27 — paragraph 3

Text proposed by the Commission

Amendment

3. A Member State or any party affected or benefitted by the situations described in paragraph 2 may notify the Commission if it is confronted , over a two-month period compared with the same period in the preceding year with a significant decrease in the volume of imported goods included in the scope of this Regulation and an increase of volume of imports of slightly modified products, which are not included in the list of goods in Annex I . The Commission shall continually monitor any significant change of pattern of trade of goods and slightly modified products at Union level.

3. A Member State or any party affected or benefitted by any of the situations described in paragraph 2 may notify the Commission if it is confronted with practices of circumvention. Interested parties other than directly affected parties, such as environmental organisations and non-governmental organisations, which find concrete evidence of the circumvention of this Regulation , may also notify the Commission . The Commission shall continually monitor with a view to identifying practices of circumvention, including by way of market surveillance or on the basis of any relevant source of information, such as submissions by and reporting from civil society organisations.

Amendment 143

Proposal for a regulation

Article 27 — paragraph 4

Text proposed by the Commission

Amendment

4. The notification referred to in paragraph 3 shall state the reasons on which it is based and shall include relevant data and statistics regarding the goods and products referred to in paragraph 2 .

4. The notification referred to in paragraph 3 shall state the reasons on which it is based and shall include relevant data and statistics to support the claim of circumvention of this Regulation. The Commission shall initiate an investigation into such a claim set out in a notification by a Member State, an affected party or an interested party, provided that the notification meets the requirements referred to in this paragraph , or where the Commission itself determines that such an investigation is necessary . In carrying out the investigation, the Commission may be assisted by the competent authorities and customs authorities. The Commission shall conclude the investigation within nine months from the date of notification. Where an investigation has been initiated, the Commission shall notify all competent authorities.

Amendment 144

Proposal for a regulation

Article 27 — paragraph 5

Text proposed by the Commission

Amendment

5. Where the Commission, taking into account the relevant data, reports and statistics, including when provided by the customs authorities of Member States, has sufficient reasons to believe that the circumstances referred to in paragraph 3 are occurring in one or more Member States, it is empowered to adopt delegated acts in accordance with Article 28 to supplement the scope of this Regulation in order to include slightly modified products for anti-circumvention purposes.

5. Where the Commission, taking into account the relevant data, reports and statistics, including when provided by the customs authorities of Member States, has sufficient reasons to believe that the circumstances referred to in paragraph 2 are occurring in one or more Member States, it is empowered to adopt delegated acts in accordance with Article 28, to supplement the scope of this Regulation in order to include slightly modified products or downstream products that contain one or more of the goods as listed in Annex I in excess of a minimum threshold for anti-circumvention purposes.

Amendment 145

Proposal for a regulation

Article 27 — paragraph 5 a (new)

Text proposed by the Commission	Amendment
	5a. The Commission shall publish all cases of investigations of circumvention and the results thereof in an annual report. The report shall also include information on the status of ongoing appeal procedures against penalties and aggregated information on the emission intensity per country of origin for the different goods listed in Annex I.

Amendment 146

Proposal for a regulation

Chapter VI a (new)

Text proposed by the Commission	Amendment
	Chapter VIa
	Appeals

Amendment 147

Proposal for a regulation

Article 27 a (new)

Text proposed by the Commission	Amendment
	Article 27a
	Appeals against decisions taken by the CBAM authority
	1. An appeal may be brought against decisions taken by the CBAM authority. An appeal shall lie from decisions of the CBAM authority that adversely affect any interested person, including decisions on penalties, circumvention and actual emission values. Those decisions shall take effect only from the date of expiration of the appeal period of two months.
	2. An appeal lodged pursuant to paragraph 1 shall have suspensive effect.
	3. The products concerned by an appeal shall be subject to registration in accordance with Article 25a(5).
	4. Any party to proceedings adversely affected by a decision may appeal. Any other parties to the proceedings shall be parties to the appeal proceedings as of right.
	5. The Board of Appeal shall be set up and consist of three full members, a chair and two alternate members. The European Parliament, the Council and the Commission shall each appoint a member. The Council shall appoint the chair. The European Parliament and the Council shall each appoint an additional alternate member.
	6. The Commission shall adopt delegated acts in accordance to Article 28 supplementing this Regulation in order to establish the composition, the appointment and the rules of procedure of the Board of Appeal, with a view to assure the independence of its members, including during the transitional period. During the transitional period the Commission holds the functions of the Board of Appeal.

Amendment 148

Proposal for a regulation

Article 27 b (new)

Text proposed by the Commission	Amendment
	Article 27b
	Examination of appeals
	1. The Board of Appeal shall examine whether an appeal is admissible.
	2. In the examination of an appeal, the Board of Appeal shall invite the parties referred to in Article 27a(4), as often as necessary, to file observations, within a period to be fixed by the Board of Appeal, in relation to submissions made by the other parties to the appeal or to communications issued by the Board of Appeal.
	3. Following the examination of the admissibility of an appeal, the Board of Appeal shall decide on the appeal. The Board of Appeal may either exercise any power within the competence of the CBAM authority or remit the case to the latter for further action.
	4. If the Board of Appeal remits the case to the CBAM authority for further action, the latter shall be bound by the conclusions of the Board of Appeal, in so far as the facts are the same.
	5. A decision of the Board of Appeal shall take effect only from the date of expiry of a period of two months after the communication of the decision or, if an action has been brought before the General Court within that period, from the date of dismissal of such action or of any appeal filed with the Court of Justice against the decision of the General Court.

Amendment 149

Proposal for a regulation

Article 27 c (new)

Text proposed by the Commission	Amendment
	Article 27c
	Actions before the Court of Justice
	1. An action may be brought before the General Court or the Court of Justice, in accordance with Article 263 TFEU, contesting a decision taken by the Board of Appeal.
	2. Should the Board of Appeal fail to take a decision, proceedings for failure to act may be brought before the General Court or the Court of Justice in accordance with Article 265 TFEU.
	3. The CBAM authority shall be required to take the necessary measures to comply with the judgment of the General Court or, in the event of an appeal against that judgment, the Court of Justice.

Amendment 150

Proposal for a regulation

Article 28 — paragraph 2

Text proposed by the Commission	Amendment
2. The power to adopt delegated acts referred to in Articles 2(10), 2(11), 18(3) and 27(5) shall be conferred on the Commission for an indeterminate period of time.	2. The power to adopt delegated acts referred to in Articles 2(1a), 2(6), 2(10), 2(11), 7(7a), 8(3), 12a(7), 18(3), 27(5), 27a(6), 31(2) and 35(6) shall be conferred on the Commission for an indeterminate period of time.

Amendment 151

Proposal for a regulation

Article 28 — paragraph 3

Text proposed by the Commission	Amendment
3. The delegation of power referred to in Articles 2(10), 2(11), 18(3) and 27(5) may be revoked at any time by the European Parliament or by the Council.	3. The delegation of power referred to in Articles 2(1a), 2(6), 2(10), 2(11), 7(7a), 8(3), 12a(7), 18(3), 27(5), 27a(6), 31(2) and 35(6) may be revoked at any time by the European Parliament or by the Council.

Amendment 152

Proposal for a regulation

Article 28 — paragraph 7

Text proposed by the Commission

Amendment

7. A delegated act adopted pursuant to Articles 2(10), 2(11), 18(3) and 27(5) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

7. A delegated act adopted pursuant to Articles 2(1a), 2(6), 2(10), 2(11), 7(7a), 8(3), 12 a(7) 18(3), 27(5), 27a(6), 31(2) and 35(6) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Amendment 153

Proposal for a regulation

Article 30 — paragraph 1

Text proposed by the Commission	Amendment
1. The Commission shall collect the information necessary with a view to extending the scope of this Regulation to indirect emissions and goods other than those listed in Annex I, and develop methods of calculating embedded emissions based on environmental footprint methods.	1. The Commission shall collect , in consultation with relevant stakeholders, the information necessary for the extension of the scope to other sectors and to downstream products laid down in Article 2(1a) of this Regulation , and for the development of methods of calculating embedded emissions based on environmental footprint methods.

Amendment 260

Proposal for a regulation

Article 30 — paragraph 2

Text proposed by the Commission

Amendment

2. Before the end of the transitional period, the Commission shall present a report to the European Parliament and the Council on the application of this Regulation. The report shall contain, in particular , the assessment of the possibilities to further extend the scope of embedded emissions to indirect emissions and to other goods at risk of carbon leakage than those already covered by this Regulation , as well as an assessment of the governance system. It shall also contain the assessment of the possibility to further extend the scope to embedded emissions of transportation services as well as to goods further down the value chain and services that may be subject to the risk of carbon leakage in the future .

2. Before the end of the transitional period, the Commission shall present a report to the European Parliament and the Council on the application of this Regulation. The first report shall in particular focus on possibilities to enhance this Regulation towards the objective of a climate-neutral Union by 2050 at the latest, and shall assess the possibility to further extend the scope to embedded emissions of transportation services . It shall furthermore evaluate the technical specificities of calculating embedded emissions for organic chemicals and polymers, their value chains and the ability of the mechanism to sufficiently address the risk of carbon leakage for those sectors. Based on the report, the Commission may, if appropriate, put forward a legislative proposal to adjust the CBAM factor referred to in Article 31 or to defer the entry into force of Article 36(3), point (d), with regard to those goods .

Amendment 157

Proposal for a regulation

Article 30 — paragraph 3

Text proposed by the Commission	Amendment
3. The report by the Commission shall , if appropriate, be accompanied by a legislative proposal .	3. After 2028, the Commission shall monitor the functioning of CBAM and submit a report every two years to the European Parliament and to the Council on the functioning of CBAM based on the elements laid down in paragraph 2a.

Amendment 158

Proposal for a regulation

Article 30 — paragraph 3 a (new)

Text proposed by the Commission

Amendment

3a. Where an unforeseeable, exceptional and unprovoked event outside the control of one or more third countries subject to CBAM has occurred, and that event has destructive consequences on the economic and industrial infrastructure of the countries concerned, the Commission shall assess the situation and submit to the European Parliament and to the Council a legislative proposal, as appropriate, amending this Regulation, to set out the necessary provisional measures to address those exceptional circumstances.

Amendment 261

Proposal for a regulation

Article 31 — paragraph 1 a (new)

Text proposed by the Commission	Amendment
	1a. No free allocation shall be given in relation to the production within the Union of products listed in Annex I as from the date of application of the CBAM, as provided for in Article 36(3).
	By way of derogation from the first subparagraph, until 2032, the production of those products shall benefit from free allocation in reduced amounts. A CBAM factor reducing the allocation for the production of these products shall be applied. The CBAM factor shall be equal to 100 % for the period from 1 January 2023 until 31 December 2026 and contingent upon application of Article 36(3), point (d), of this Regulation, 93 % in 2027, 84 % in 2028, 69 % in 2029, 50 % in 2030, 25 % in 2031, and reach 0 % in 2032.
	The CBAM factor for goods included in this Regulation after…[the date of entry into force of this Regulation], in accordance with the timeline set out under Article 2(1a) shall be equal to 100 % the first year, 93 % the second year, 84 %the third year, 69 % the fourth year, 50 % the fifth year, 25 % the sixth year and reach 0 % after 6 years.
	The reduction of free allocation shall be calculated annually as the average share of the demand for free allocation for the production of products listed in Annex I compared to the calculated total free allocation demand for all installations, for the relevant period referred to in Article 11(1) of Directive 2003/87/EC, and the CBAM factor shall be applied.

Amendment 262

Proposal for a regulation

Article 31 — paragraph 1 b (new)

Text proposed by the Commission	Amendment
	1b. In order to ensure a level playing field, by way of derogation from paragraph 1 (a), first and second subparagraphs, the production in the Union of products listed in Annex I to this Regulation shall continue to receive free allocation, provided such products are produced for export to third countries without carbon pricing mechanisms similar to the EU ETS.
	By 31 December 2025, the Commission shall present a report to the European Parliament and to the Council in which it shall provide a detailed assessment of the effects of the EU ETS and CBAM on the production in the Union of products listed in Annex I to this Regulation that are produced for export to third countries and on the development of global emissions, as well as an assessment of the WTO compatibility of the derogation laid down in the first subparagraph.
	The Commission shall, where appropriate, accompany that report with a legislative proposal providing for a protection against the risk of carbon leakage that equalises carbon pricing for the production in the Union of products listed in Annex I to this Regulation that are produced for export to third countries without carbon pricing mechanisms similar to the EU ETS in a way that is WTO compatible by 31 December 2026, assessing in particular potential export adjustment mechanisms for installations belonging to the 10 % most efficient installations as laid down in Article 10a of Directive 2003/87/EC, in the light of WTO compatibility or any other proposals the Commission deems appropriate.

Amendment 160

Proposal for a regulation

Article 31 — paragraph 2

Text proposed by the Commission	Amendment
2. The Commission is empowered to adopt implementing acts laying down a calculation methodology for the reduction referred to in paragraph 1. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).	2. The Commission is empowered to adopt delegated acts in accordance with Article 28 supplementing this Regulation by laying down a calculation methodology for the reduction referred to in paragraph 1.

Amendment 161

Proposal for a regulation

Article 31 — paragraph 2 a (new)

Text proposed by the Commission

Amendment

2a. Each year from 2025, as part of its annual report to the European Parliament and to the Council pursuant to Article 10(5) of Directive 2003/87/EC, the Commission shall assess the effectiveness of the CBAM in addressing the carbon leakage risk for goods produced in the Union for export to third countries which do not apply the EU ETS or a similar carbon pricing mechanism. The report shall in particular assess the development of Union exports in CBAM sectors and the developments as regards trade flows and the embedded emissions of those goods on the global market. Where the report concludes that there is a carbon leakage risk for goods produced in the Union for export to such third countries which do not apply the EU ETS or a similar carbon pricing mechanism, the Commission shall, where appropriate, present a legislative proposal to address that carbon leakage risk in a manner that is compliant with WTO rules and takes into account the decarbonisation of installations in the Union.

Amendment 162

Proposal for a regulation

Article 33 — paragraph 3

Text proposed by the Commission

Amendment

3. The customs authorities shall, by means of the surveillance mechanism established pursuant to Article 56(5) of Regulation (EU) No 952/2013, communicate to the competent authority of the Member State of importation information on imported goods, including processed products resulting from the outward processing procedure. Such information shall include the EORI number of the declarant, the 8-digit CN code, the quantity, the country of origin and the declarant of the goods, the date of declaration and the customs procedure.

3. The customs authorities shall, by means of the surveillance mechanism established pursuant to Article 56(5) of Regulation (EU) No 952/2013, communicate to the CBAM authority information on imported goods, including processed products resulting from the outward processing procedure. Such information shall include the EORI number of the declarant, the 8-digit CN code, the quantity, the country of origin and the declarant of the goods, the date of declaration and the customs procedure.

Amendment 163

Proposal for a regulation

Article 35 — paragraph 1

Text proposed by the Commission

Amendment

1. Each declarant shall, for each quarter of a calendar year, submit a report (‘CBAM report’) containing information on the goods imported during that quarter, to the competent authority of the Member State of importation or, if goods have been imported to more than one Member State, to the competent authority of the Member State at the declarant’s choice , no later than one month after the end of each quarter.

1. Each declarant shall, for each quarter of a calendar year, submit a report (‘CBAM report’) containing information on the goods imported during that quarter, to the CBAM authority, no later than one month after the end of each quarter.

Amendment 164

Proposal for a regulation

Article 35 — paragraph 2 — point c

Text proposed by the Commission

Amendment

(c)	the actual total embedded indirect emissions, expressed in tonnes of CO2e emissions per tonne of each type of other goods than electricity, calculated in accordance with a method set out in an implementing act referred to in paragraph 6;

(c)	the actual total embedded indirect emissions, expressed in tonnes of CO2e emissions per tonne of each type of other goods than electricity, calculated in accordance with a method set out in a delegated act referred to in paragraph 6;

Amendment 165

Proposal for a regulation

Article 35 — paragraph 3

Text proposed by the Commission	Amendment
3. The competent authority shall communicate the information referred to in paragraph 2 to the Commission at the latest two months after the end of the quarter covered by a report.	3. The CBAM authority shall communicate the information referred to in paragraph 2 to the Commission at the latest two months after the end of the quarter covered by a report.

Amendment 166

Proposal for a regulation

Article 35 — paragraph 4

Text proposed by the Commission	Amendment
4. The competent authority shall impose a proportionate and dissuasive penalty on declarants who fail to submit a CBAM report.	4. The CBAM authority shall impose a proportionate and dissuasive penalty on declarants who fail to submit a CBAM report.

Amendment 167

Proposal for a regulation

Article 35 — paragraph 5 — introductory part

Text proposed by the Commission	Amendment
5. If the competent authority determines that a declarant has failed to comply with the obligation to submit a CBAM report as specified in paragraph 1, the competent authority shall impose the penalty and notify the declarant:	5. If the CBAM authority determines that a declarant has failed to comply with the obligation to submit a CBAM report as specified in paragraph 1, the CBAM authority shall impose the penalty and notify the declarant:

Amendment 168

Proposal for a regulation

Article 35 — paragraph 5 — point a

Text proposed by the Commission

Amendment

(a)	that the competent authority has concluded that the declarant fails to comply with the obligation of submitting a report for a given quarter;

(a)	that the CBAM authority has concluded that the declarant fails to comply with the obligation of submitting a report for a given quarter;

Amendment 169

Proposal for a regulation

Article 35 — paragraph 5 — point e

Text proposed by the Commission

Amendment

(e)	of the action the competent authority considers the declarant should take to comply with its obligation under point (a) depending on the facts and circumstances of the case; and

(e)	of the action the CBAM authority considers the declarant should take to comply with its obligation under point (a) depending on the facts and circumstances of the case; and

Amendment 170

Proposal for a regulation

Article 35 — paragraph 6

Text proposed by the Commission

Amendment

6. The Commission is empowered to adopt implementing acts concerning the information to be reported, the procedures for communicating the information referred to in paragraph 3 and the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate. The Commission is also empowered to adopt implementing acts to further define the necessary elements of the calculation method set out in Annex III, including determining system boundaries of production processes, emission factors, installation-specific values of actual emissions and their respective application to individual goods as well as laying down methods to ensure the reliability of data, including the level of detail and the verification of this data. The Commission is further empowered to adopt implementing acts to develop a calculation method for indirect emissions embedded in imported goods.

6. The Commission is empowered to adopt implementing acts concerning the information to be reported, the procedures for communicating the information referred to in paragraph 3 and the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate. The Commission is also empowered to adopt implementing acts to further define the necessary elements of the calculation method set out in Annex III, including determining system boundaries of production processes, emission factors, installation-specific values of actual emissions and their respective application to individual goods as well as laying down methods to ensure the reliability of data, including the level of detail and the verification of this data. The Commission is further empowered to adopt delegated acts in accordance with Article 28 supplementing this Regulation to develop a calculation method for indirect emissions embedded in imported goods.

Amendments 198, 216 and 263

Proposal for a regulation

Article 36 — paragraph 3 — point a

Text proposed by the Commission

Amendment

(a)	Articles 32 to 34 shall apply until 31 December 2025 .

(a)	Articles 32 to 34 shall apply until 31 December 2026 .

Amendments 199 and 217

Proposal for a regulation

Article 36 — paragraph 3 — point b

Text proposed by the Commission

Amendment

(b)	Article 35 shall apply until 28 February 2026 .

(b)	Article 35 shall apply until 28 February 2027 .

Amendment 264

Proposal for a regulation

Article 36 — paragraph 3 — point c

Text proposed by the Commission

Amendment

(c)	Articles 5 and 17 shall apply from 1 September 2025 .

(c)	Articles 5 and 17 shall apply from 1 September 2026 .

Amendments 200, 218 and 265

Proposal for a regulation

Article 36 — paragraph 3 — point d

Text proposed by the Commission

Amendment

(d)	Articles 4, 6, 7, 8, 9, 14, 15, 16, 19, 20, 21, 22, 23, 24, 25, 26, 27 and 31 shall apply from 1 January 2026 .

(d)	Articles 4, 6, 7, 8, 9, 14, 15, 16, 19, 20, 21, 22, 23, 24, 25, 26, 27 and 31 shall apply from 1 January 2027 .

Amendment 175

Proposal for a regulation

Annex I

Text proposed by the Commission

List of goods and greenhouse gases

For the purpose of the identification of goods, this Regulation shall apply to goods listed in the following sectors currently falling under the combined nomenclature (‘CN’) codes listed below, and shall be those of Council Regulation (EEC) No 2658/87 (1).

For the purposes of this Regulation, the greenhouse gases relating to goods falling in the sectors listed below, shall be those listed below for each type of goods.

Cement

CN code	Greenhouse gas
2523 10 00 — Cement clinkers	Carbon dioxide
2523 21 00 — White Portland cement, whether or not artificially coloured	Carbon dioxide
2523 29 00 — Other Portland cement	Carbon dioxide
2523 90 00 — Other hydraulic cements	Carbon dioxide

Electricity

CN code	Greenhouse gas
2716 00 00 — Electrical energy	Carbon dioxide

Fertilisers

CN code

Greenhouse gas

2808 00 00 — Nitric acid; sulphonitric acids

Carbon dioxide and nitrous oxide

2814 — Ammonia, anhydrous or in aqueous solution

Carbon dioxide

2834 21 00 — Nitrates of potassium

Carbon dioxide and nitrous oxide

3102 — Mineral or chemical fertilisers, nitrogenous

Carbon dioxide and nitrous oxide

3105 — Mineral or chemical fertilisers containing two or three of the fertilising elements nitrogen, phosphorus and potassium; other fertilisers; goods of this chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kg

—	Except: 3105 60 00 — Mineral or chemical fertilisers containing the two fertilising elements phosphorus and potassium

Carbon dioxide and nitrous oxide

Iron and Steel

CN code	Greenhouse gas
72 — Iron and steel Except: 7202 — Ferro-alloys 7204 — Ferrous waste and scrap; remelting scrap ingots and steel	Carbon dioxide
7301 — Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections, of iron or steel	Carbon dioxide
7302 — Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (cross-ties), fish- plates, chairs, chair wedges, sole plates (base plates), rail clips, bedplates, ties and other material specialised for jointing or fixing rails	Carbon dioxide
7303 00 — Tubes, pipes and hollow profiles, of cast iron	Carbon dioxide
7304 — Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel	Carbon dioxide
7305 — Other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross-sections, the external diameter of which exceeds 406,4 mm, of iron or steel	Carbon dioxide
7306 — Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel	Carbon dioxide
7307 — Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel	Carbon dioxide
7308 — Structures (excluding prefabricated buildings of heading 9406 ) and parts of structures (for example, bridges and bridge-sections, lock- gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel	Carbon dioxide
7309 — Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment	Carbon dioxide
7310 — Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment	Carbon dioxide
7311 — Containers for compressed or liquefied gas, of iron or steel	Carbon dioxide

Aluminium

CN code	Greenhouse gas
7601 — Unwrought aluminium	Carbon dioxide and perfluorocarbons
7603 — Aluminium powders and flakes	Carbon dioxide and perfluorocarbons
7604 — Aluminium bars, rods and profiles	Carbon dioxide and perfluorocarbons
7605 — Aluminium wire	Carbon dioxide and perfluorocarbons
7606 — Aluminium plates, sheets and strip, of a thickness exceeding 0,2 mm	Carbon dioxide and perfluorocarbons
7607 — Aluminium foil (whether or not printed or backed with paper, paper-board, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0,2 mm	Carbon dioxide and perfluorocarbons
7608 — Aluminium tubes and pipes	Carbon dioxide and perfluorocarbons
7609 00 00 — Aluminium tube or pipe fittings (for example, couplings, elbows, sleeves)	Carbon dioxide and perfluorocarbons

Amendment

List of goods and greenhouse gases

For the purposes of this Regulation, the greenhouse gases relating to goods falling in the sectors listed below, shall be those listed below for each type of goods.

Cement

CN code	Greenhouse gas
2523 30 00 — Aluminous cement	Carbon dioxide
2523 10 00 — Cement clinkers	Carbon dioxide
2523 21 00 — White Portland cement, whether or not artificially coloured	Carbon dioxide
2523 29 00 — Other Portland cement	Carbon dioxide
2523 90 00 — Other hydraulic cements	Carbon dioxide

Electricity

CN code	Greenhouse gas
2716 00 00 — Electrical energy	Carbon dioxide

Fertilisers

CN code

Greenhouse gas

2808 00 00 — Nitric acid; sulphonitric acids

Carbon dioxide and nitrous oxide

2814 — Ammonia, anhydrous or in aqueous solution

Carbon dioxide

2834 21 00 — Nitrates of potassium

Carbon dioxide and nitrous oxide

3102 — Mineral or chemical fertilisers, nitrogenous

Carbon dioxide and nitrous oxide

—	Except: 3105 60 00 — Mineral or chemical fertilisers containing the two fertilising elements phosphorus and potassium

Carbon dioxide and nitrous oxide

Iron and Steel

CN code	Greenhouse gas
72 — Iron and steel Except: 7202 — Ferro-alloys 7204 — Ferrous waste and scrap; remelting scrap ingots and steel	Carbon dioxide
7301 — Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections, of iron or steel	Carbon dioxide
7302 — Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (cross-ties), fish- plates, chairs, chair wedges, sole plates (base plates), rail clips, bedplates, ties and other material specialised for jointing or fixing rails	Carbon dioxide
7303 00 — Tubes, pipes and hollow profiles, of cast iron	Carbon dioxide
7304 — Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel	Carbon dioxide
7305 — Other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross-sections, the external diameter of which exceeds 406,4 mm, of iron or steel	Carbon dioxide
7306 — Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel	Carbon dioxide
7307 — Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel	Carbon dioxide
7308 — Structures (excluding prefabricated buildings of heading 9406 ) and parts of structures (for example, bridges and bridge-sections, lock- gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel	Carbon dioxide
7309 — Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment	Carbon dioxide
7310 — Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment	Carbon dioxide
7311 — Containers for compressed or liquefied gas, of iron or steel	Carbon dioxide

Aluminium

CN code	Greenhouse gas
7601 — Unwrought aluminium	Carbon dioxide and perfluorocarbons
7603 — Aluminium powders and flakes	Carbon dioxide and perfluorocarbons
7604 — Aluminium bars, rods and profiles	Carbon dioxide and perfluorocarbons
7605 — Aluminium wire	Carbon dioxide and perfluorocarbons
7606 — Aluminium plates, sheets and strip, of a thickness exceeding 0,2 mm	Carbon dioxide and perfluorocarbons
7607 — Aluminium foil (whether or not printed or backed with paper, paper-board, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0,2 mm	Carbon dioxide and perfluorocarbons
7608 — Aluminium tubes and pipes	Carbon dioxide and perfluorocarbons
7609 00 00 — Aluminium tube or pipe fittings (for example, couplings, elbows, sleeves)	Carbon dioxide and perfluorocarbons

Chemicals

CN code	Greenhouse gas
29 — Organic Chemicals	Carbon dioxide
280410000 — Hydrogen	Carbon dioxide
281410000 — Anhydrous amonia	Carbon dioxide
2814 20 00 — Amonia in aqueous solution	Carbon dioxide

Polymers

CN code	Greenhouse gas
39 — Plastics and articles thereof	carbon dioxide and nitrous oxide

Amendment 176

Proposal for a regulation

Annex III — point 2 — title

Text proposed by the Commission

Amendment

2.	Determination of actual direct embedded emissions for simple goods

2.	Determination of actual embedded emissions for simple goods

Amendment 177

Proposal for a regulation

Annex III — point 2 — introductory part

Text proposed by the Commission	Amendment
For determining the specific actual embedded emissions of simple goods produced in a given installation, only direct emissions shall be accounted for. For this purpose, the following equation is to be applied:	For determining the specific actual embedded emissions of simple goods produced in a given installation, both direct and indirect emissions shall be accounted for. For this purpose, the following equation is to be applied:

Amendment 178

Proposal for a regulation

Annex III — point 2 — paragraph 3

Text proposed by the Commission

Amendment

‘Attributed emissions’ mean the part of the installation’s direct emissions during the reporting period that are caused by the production process resulting in goods g when applying the system boundaries of the process defined by the implementing acts adopted pursuant to Article 7(6). The attributed emissions shall be calculated using the following equation:

AttrEmg = DirEm

‘Attributed emissions’ mean the part of the installation’s emissions during the reporting period that are caused by the production process resulting in goods g when applying the system boundaries of the process defined by the implementing acts adopted pursuant to Article 7(6). The attributed emissions shall be calculated using the following equation:

Attrg = DirEm + Emel–Emel, exp

Amendment 179

Proposal for a regulation

Annex III — point 3 — title

Text proposed by the Commission

Amendment

3.	Determination of actual direct embedded emissions for complex goods

3.	Determination of actual embedded emissions for complex goods

Amendment 180

Proposal for a regulation

Annex III — point 4 — paragraph 2

Text proposed by the Commission

Amendment

For the purpose of determining default values, only actual values shall be used for the determination of embedded emissions. In the absence of actual data, literature values may be used. The Commission shall publish guidance for the approach taken to correct for waste gases or greenhouse gases used as process input, before collecting the data required to determine the relevant default values for each type of goods listed in Annex I. Default values shall be determined based on the best available data. They shall be revised periodically through implementing acts based on the most up-to-date and reliable information, including on the basis of information provided by a third country or group of third countries.

For the purpose of determining default values, only actual values from the country where actual emissions took place, shall be used for the determination of embedded emissions. In the absence of actual data or when the use of actual data would lead to low default values favouring free-riding behaviour , literature values may be used. The Commission shall publish guidance for the approach taken to correct for waste gases or greenhouse gases used as process input, before collecting the data required to determine the relevant default values for each type of goods listed in Annex I. Default values shall be determined based on the best available data. Best available data shall be based, to the extent possible, on reliable and publicly available information on the type of technology and processes used, plant design, origin of input materials and simple goods used in the production process, energy source and other data. Default values shall be revised periodically through implementing acts referred to in Article 7(6) based on the most up-to-date and reliable information, including on the basis of information provided by a third country or group of third countries.

Amendment 181

Proposal for a regulation

Annex III — point 4 — point 4.1 — paragraph 1

Text proposed by the Commission

Amendment

When actual emissions cannot be adequately determined by the authorised declarant, default values shall be used. These values shall be set at the average emission intensity of each exporting country and for each of the goods listed in Annex I other than electricity, increased by a mark-up, the latter to be determined in the implementing acts of this Regulation. When reliable data for the exporting country cannot be applied for a type of goods, the default values shall be based on the average emission intensity of the 10 per cent worst performing EU installations for that type of goods.

When actual emissions cannot be adequately determined by the authorised declarant, default values shall be used. These values shall be set at the average emission intensity of the 10 % worst performing installations in each exporting country and for each of the goods listed in Annex I other than electricity, increased by a mark-up, the latter to be determined in the implementing acts of this Regulation. When reliable data for the exporting country cannot be applied for a type of goods, the default values shall be based on the average emission intensity of the 5 per cent worst performing EU installations for that type of goods. Under no circumstances shall default values be lower than the likely embedded emissions and the exporter shall not benefit from the failure to provide reliable data on actual emissions so that default values are used.

Amendment 182

Proposal for a regulation

Annex III — point 4 — point 4.2 — point 4.2.1 — paragraph 1

Text proposed by the Commission	Amendment
Specific default values shall be based on the best data available to the Commission determining the average CO2 emission factor in tonnes of CO2 per megawatt-hour of price-setting sources in the third country, group of third countries or region within a third country.	Specific default values shall be based on the 10 % worst performing installations producing electricity in the third country, group of third countries or region within a third country.

Amendment 183

Proposal for a regulation

Annex III a (new)

Text proposed by the Commission

Amendment

Annex IIIa

Methodology for calculating the reduction of CBAM certificates due to free allocation under EU ETS

Amendment 184

Proposal for a regulation

Annex V — Part 1 — paragraph 1 — point c

Text proposed by the Commission

Amendment

(c)	installation visits by the verifier shall be mandatory except where specific criteria for waiving the installation visit are met;

(c)	installation visits by the verifier shall be mandatory except where the specific criteria for waiving the installation visit under Article 8(3) are met;

(1) The matter was referred back for interinstitutional negotiations to the committee responsible, pursuant to Rule 59(4), fourth subparagraph (A9-0160/2022).

(31) Communication from the Commission of 11 December 2019 on the European Green Deal (COM(2019)0640).

(32) Communication from the Commission of 12 May 2021 on Pathway to a Healthy Planet for All (COM(2021)0400).

(31) Communication from the Commission of 11 December 2019 on the European Green Deal (COM(2019)0640).

(32) Communication from the Commission of 12 May 2021 on Pathway to a Healthy Planet for All (COM(2021)0400).

(33) OJ L 282, 19.10.2016, p. 4.

(35) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).

(36) IPCC, 2018: Global Warming of 1,5 oC. An IPCC Special Report on the impacts of global warming of 1,5 oC above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty [Masson-Delmotte, V., P. Zhai, H.-O. Pörtner, D. Roberts, J. Skea, P.R. Shukla, A. Pirani, W. Moufouma-Okia, C. Péan, R. Pidcock, S. Connors, J.B.R. Matthews, Y. Chen, X. Zhou, M.I. Gomis, E. Lonnoy, T. Maycock, M. Tignor, and T. Waterfield (eds.)].

(47) Commission Recommendation 2013/179/EU of 9 April 2013 on the use of common methods to measure and communicate the life cycle environmental performance of products and organisations (OJ L 124, 4.5.2013, p. 1).

(1a) Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument — Global Europe, amending and repealing Decision No 466/2014/EU of the European Parliament and of the Council and repealing Regulation (EU) 2017/1601 of the European Parliament and of the Council and Council Regulation (EC, Euratom) No 480/2009 (OJ L 209, 14.6.2021, p. 1).

(51) Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making (OJ L 123, 12.5.2016, p. 1).

(1) Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256, 7.9.1987, p. 1).

27.1.2023

Official Journal of the European Union

C 32/399

P9_TA(2022)0250

Exceptional temporary support under EAFRD in response to the impact of Russia’s invasion of Ukraine ***I

European Parliament legislative resolution of 23 June 2022 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1305/2013 as regards a specific measure to provide exceptional temporary support under the European Agricultural Fund for Rural Development (EAFRD) in response to the impact of Russia’s invasion of Ukraine (COM(2022)0242 — C9-0185/2022 — 2022/0166(COD))

(Ordinary legislative procedure: first reading)

(2023/C 32/14)

The European Parliament,

—	having regard to the Commission proposal to Parliament and the Council (COM(2022)0242),

—	having regard to Article 294(2) and Article 42 and Article 43(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0185/2022),

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

—	having regard to the opinion of the European Economic and Social Committee of 16 June 2022 (1),

—	having regard to the undertaking given by the Council representative by letter of 17 June 2022 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

—	having regard to Rules 59 and 163 of its Rules of Procedure,

Adopts its position at first reading hereinafter set out;

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

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

(1) Not yet published in the Official Journal.

P9_TC1-COD(2022)0166

Position of the European Parliament adopted at first reading on 23 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulation (EU) No 1305/2013 as regards a specific measure to provide exceptional temporary support under the European Agricultural Fund for Rural Development (EAFRD) in response to the impact of Russia’s invasion of Ukraine

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1033.)

27.1.2023

Official Journal of the European Union

C 32/400

P9_TA(2022)0251

Gas storage ***I

European Parliament legislative resolution of 23 June 2022 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2017/1938 of the European Parliament and of the Council concerning measures to safeguard the security of gas supply and Regulation (EC) No 715/2009 of the European Parliament and of the Council on conditions for access to natural gas transmission networks (COM(2022)0135 — C9-0126/2022 — 2022/0090(COD))

(Ordinary legislative procedure: first reading)

(2023/C 32/15)

The European Parliament,

—	having regard to the Commission proposal to Parliament and the Council (COM(2022)0135),

—	having regard to Article 294(2) and Article 194(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0126/2022),

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

—	having regard to the opinion of the European Economic and Social Committee of 18 May 2022 (1),

—	after consulting the Committee of the Regions,

—

having regard to the provisional agreement approved by the committee responsible under Rule 74(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 25 May 2022 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

—	having regard to Rules 59 and 163 of its Rules of Procedure,

Adopts its position at first reading hereinafter set out;

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

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

(1) Not yet published in the Official Journal.

P9_TC1-COD(2022)0090

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1032.)

27.1.2023

Official Journal of the European Union

C 32/401

P9_TA(2022)0252

EU Digital COVID Certificate — Union citizens ***I

European Parliament legislative resolution of 23 June 2022 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/953 on a framework for the issuance, verification and acceptance of interoperable COVID-19 vaccination, test and recovery certificates (EU Digital COVID Certificate) to facilitate free movement during the COVID-19 pandemic (COM(2022)0050 — C9-0031/2022 — 2022/0031(COD))

(Ordinary legislative procedure: first reading)

(2023/C 32/16)

The European Parliament,

—	having regard to the Commission proposal to Parliament and the Council (COM(2022)0050),

—	having regard to Article 294(2) and Article 21(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0031/2022),

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

—	having regard to the undertaking given by the Council representative by letter of 15 June 2022 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union;

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

—	having regard to the opinion of the Committee on Transport and Tourism,

—	having regard to the position in the form of amendments of the Committee on the Environment, Public Health and Food Safety,

—	having regard to the report of the Committee on Civil Liberties, Justice and Home Affairs (A9-0138/2022),

Adopts its position at first reading hereinafter set out;

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

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

P9_TC1-COD(2022)0031

Position of the European Parliament adopted at first reading on 23 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulation (EU) 2021/953 on a framework for the issuance, verification and acceptance of interoperable COVID-19 vaccination, test and recovery certificates (EU Digital COVID Certificate) to facilitate free movement during the COVID-19 pandemic

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1034.)

27.1.2023

Official Journal of the European Union

C 32/402

P9_TA(2022)0253

EU Digital COVID Certificate — third-country nationals ***I

European Parliament legislative resolution of 23 June 2022 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/954 on a framework for the issuance, verification and acceptance of interoperable COVID-19 vaccination, test and recovery certificates (EU Digital COVID Certificate) with regard to third-country nationals legally staying or residing in the territories of Member States during the COVID-19 pandemic (COM(2022)0055 — C9-0032/2022 — 2022/0030(COD))

(Ordinary legislative procedure: first reading)

(2023/C 32/17)

The European Parliament,

—	having regard to the Commission proposal to Parliament and the Council (COM(2022)0055),

—	having regard to Article 294(2) and Article 77(2), point (c) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0032/2022),

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

—	having regard to the undertaking given by the Council representative by letter of 15 June 2022 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union;

—	having regard to Rules 59 of its Rules of Procedure,

—	having regard to the opinion of the Committee on Transport and Tourism,

—	having regard to the report of the Committee on Civil Liberties, Justice and Home Affairs (A9-0137/2022),

Adopts its position at first reading hereinafter set out;

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

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

P9_TC1-COD(2022)0030

Position of the European Parliament adopted at first reading on 23 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulation (EU) 2021/954 on a framework for the issuance, verification and acceptance of interoperable COVID-19 vaccination, test and recovery certificates (EU Digital COVID Certificate) with regard to third-country nationals legally staying or residing in the territories of Member States during the COVID-19 pandemic

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1035.)

27.1.2023

Official Journal of the European Union

C 32/403

P9_TA(2022)0254

Draft amending budget No 3/2022: financing reception costs of people fleeing Ukraine

European Parliament resolution of 23 June 2022 on the Council position on Draft amending budget No 3/2022 of the European Union for the financial year 2022 — financing reception costs of people fleeing Ukraine (09095/2022 — C9-0182/2022 — 2022/0126(BUD))

(2023/C 32/18)

The European Parliament,

—	having regard to Article 314 of the Treaty on the Functioning of the European Union,

—	having regard to Article 106a of the Treaty establishing the European Atomic Energy Community,

—

having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (1), and in particular Article 44 thereof,

—	having regard to the general budget of the European Union for the financial year 2022, as definitively adopted on 24 November 2021 (2),

—	having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027 (3) (‘MFF Regulation’),

—

having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources (4),

—	having regard to Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom (5),

—	having regard to Draft amending budget No 3/2022, which the Commission adopted on 22 April 2022 (COM(2022)0262),

—	having regard to the position on Draft amending budget No 3/2022 which the Council adopted on 16 May 2022 and forwarded to Parliament on the same day (09095/2022 — C9-0182/2022),

—	having regard to Rules 94 and 96 of its Rules of Procedure,

—	having regard to the letter from the Committee on Foreign Affairs,

—	having regard to the report of the Committee on Budgets (A9-0181/2022),

whereas the Commission proposes that the Union budget contribute a total amount of EUR 400 million under the Asylum, Migration and Integration Fund (AMIF) and the Border Management and Visa Instrument (BMVI) to the financing of the first reception and registration costs of people fleeing Ukraine, following the illegal, unprovoked and unjustified war of aggression being carried out by the Russian Federation against Ukraine since 24 February 2022;

whereas Draft amending budget No 3/2022 is one of the elements being used to reach the proposed EUR 400 million, together with amendments to the AMIF and BMVI Thematic Facility work programmes for 2021-2022 making an amount of EUR 124 million available in the form of emergency assistance under each programme, and with the proposal for a budgetary authority transfer (DEC 11/2022) for a reinforcement of the AMIF by EUR 52,2 million in commitment appropriations and EUR 74 million in payment appropriations;

C.	whereas the net impact of Draft amending budget No 3/2022 on expenditure amounts to an increase of EUR 99,8 million in commitment appropriations for the AMIF, and an increase of EUR 176 million in payment appropriations comprised of EUR 76 million for AMIF and EUR 100 million for the BMVI;

Welcomes Draft amending budget No 3/2022 as submitted by the Commission;

Recalls Parliament’s commitment to activate all available Union budget instruments to continue providing the strongest possible economic and financial support to Ukraine and to the people fleeing the war in Ukraine; reiterates the need for solidarity between Member States and common measures in the response to the flow of millions of refugees fleeing Ukraine, including the reallocation of refugees; underlines the importance of continuing support to the Republic of Moldova for the transfer of persons to Member States in the context of the Solidarity Platform; urges in particular the Commission to programme and use funds destined to Cross-border cooperation programmes between Ukraine and Member States for the period 2021-2027 to increase the resilience of communities living at the border in the light of the ongoing refugee crisis;

Recalls that Parliament had secured a EUR 1 billion reinforcement of the BMVI in the MFF negotiations to enable the programme to deliver fully on its objectives; strongly regrets that the Commission has opted to reduce the BMVI envelope to offset the reinforcement of the European Monitoring Centre for Drugs and Drug Addiction by EUR 63 million and Europol by EUR 185 million over the course of the current MFF; stands by its position that fresh tasks for agencies require fresh resources and should not come at the expense of existing programmes or agencies;

Underlines that neither the NGEU Fund, its Recovery and Resilience Fund component, nor the flexibility under the current MFF are sufficient to fully cover the financial needs generated by the war in Ukraine; expects moreover that the economic and social situation in the Union will deteriorate further in the coming months and calls on the Member States and the Commission to urgently establish the necessary solidarity and compensation mechanisms;

Is deeply concerned that the MFF is already pushed to its limits and is not fit to continue addressing the multiple internal and external crises in a sustainable manner; points, in particular, to the need to increase the ceiling of Heading 4 in order to reflect the actual financial needs for the Union’s migration and border management; calls, therefore, on the Commission to conduct an in-depth review of the functioning of the current MFF and proceed with a legislative proposal for a comprehensive revision of the MFF as soon as possible and not later than the first quarter of 2023; expects such a revision to take into account the long-term implications of the war in Ukraine and the emergency measures taken;

Approves the Council position on Draft amending budget No 3/2022;

Instructs its President to declare that Amending budget No 2/2022 has been definitively adopted and arrange for its publication in the Official Journal of the European Union;

Instructs its President to forward this resolution to the Council, the Commission and the national parliaments.

(1) OJ L 193, 30.7.2018, p. 1.

(2) OJ L 45, 24.2.2022, p. 1.

(3) OJ L 433 I, 22.12.2020, p. 11.

(4) OJ L 433 I, 22.12.2020, p. 28.

(5) OJ L 424, 15.12.2020, p. 1.

27.1.2023

Official Journal of the European Union

C 32/405

P9_TA(2022)0255

Mobilisation of the European Globalisation Adjustment Fund: application EGF/2022/001 FR/Air France — France

European Parliament resolution of 23 June 2022 on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from France — EGF/2022/001 FR/Air France (COM(2022)0201 — C9-0170/2022 — 2022/0143(BUD))

(2023/C 32/19)

The European Parliament,

—	having regard to the Commission proposal to the European Parliament and the Council (COM(2022)0201 — C9-0170/2022),

—	having regard to Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013 (1) (‘EGF Regulation’),

—	having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027 (2) (‘MFF Regulation’), and in particular Article 8 thereof,

—

having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management as well as on new own resources, including a roadmap towards the introduction of new own resources (3), and in particular point 9 thereof,

—	having regard to the letters from the Committee on Employment and Social Affairs and from the Committee on Regional Development,

—	having regard to the report of the Committee on Budgets (A9-0183/2022),

whereas the Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of globalisation and of technological and environmental changes, such as changes in world trade patterns, trade disputes, significant changes in the trade relations of the Union or the composition of the internal market and financial or economic crises, as well as the transition to a low-carbon economy while making mobility accessible to all, or as a consequence of digitisation or automation;

B.	whereas the Union has extended the scope of the European Globalisation Adjustment Fund for Displaced Workers (EGF) to provide financial support in case of any major restructuring event, and thus covering economic effects of the coronavirus crisis;

whereas France submitted application EGF/2022/001 FR/Air France for a financial contribution from the EGF, following 282 displacements in the economic sector classified under the NACE Revision 2 division 33 (Repair and installation of machinery and equipment) and 51 (Air transport) mainly 12 French NUTS level 2 regions in mainland France (4) and four French NUTS level 2 regions overseas (5), within a reference period for the application from 1 July 2021 to 1 November 2021;

whereas the application relates to 282 displaced workers whose activity in the company Air France and two of its subsidiaries (6) has ceased during the reference period, while 1 298 workers were displaced before or after the reference period as a consequence of the same events that triggered the cessations of activity of the displaced workers during the reference period and all 1 580 workers will thus be considered eligible beneficiaries;

whereas the application is based on the intervention criteria of Article 4(2), point (a), of the EGF Regulation, which requires the cessation of activity of at least 200 displaced workers over a reference period of four months in an enterprise in a Member State, including workers displaced in suppliers and downstream producers and/or self-employed persons whose activity has ceased;

F.	whereas Air France was severely impacted by the COVID-19 crisis, which caused a sharp decline in income and traffic;

G.	whereas the restructuring of Air France regional subsidiaries into Hop raised social concerns even before the COVID-19 crisis started, and during the pandemic, Air France decided to sharply reduce the capacity of Hop both in terms of staff and aircrafts;

whereas French authorities have implemented various measures, such as State-guaranteed loans, to support Air France, but the company still had to undertake additional measures to face the crisis, including downsizing operations, redefining the domestic network, and simplifying support functions, which led to reductions in staff;

I.	whereas the Commission declared that the health crisis resulted in an economic crisis, set out a recovery plan for the economy and underlined the role of the EGF as an emergency tool (7);

whereas airline companies in Europe have faced severe problems and challenges due to global competition and whereas measures are needed to strengthen the protection of the rights of airline workers at Union level and make sure that this important sector stays competitive and decent workplaces are kept within the Union;

K.	whereas the EGF shall not exceed a maximum annual amount of EUR 186 million (in 2018 prices), as laid down in Article 8 of the MFF Regulation;

whereas the Union plays an important role in providing the necessary solidarity through financial contributions from the EGF, which aims to reintegrate beneficiaries rapidly into decent and sustainable employment within or outside their initial sector of activity, while preparing them for a greener and more digital European economy;

Agrees with the Commission that the conditions set out in Article 4(2), point (a), of the EGF Regulation are met and that France is entitled to a financial contribution of EUR 17 742 607 under that Regulation, which represents 85 % of the total cost of EUR 20 873 656, comprising only expenditure for personalised services;

Notes that the French authorities submitted the application on 21 January 2022, and that the Commission finalised its assessment on 10 May 2022 and notified it to Parliament on the same day;

Notes that the application relates in total to 1 580 displaced workers whose activity has ceased; welcomes the fact that France expects that all of the eligible beneficiaries will participate in the measures (targeted beneficiaries);

Recalls that the social impacts of the redundancies are expected to be important for France, in particular in the region Île-de-France, where 57 % of the displacements took place; notes that the French labour administration specified that Air France’s restructuring affected the employment balance in the territories concerned; emphasizes that regions and economic sectors facing difficulties require an integrated and common European response to support their resilience;

Points out that 56 % of the displaced workers are women and 30,8 % are over 54 years old; further notes that 96 of the displaced workers have disabilities;

Notes that France started providing personalised services to the targeted beneficiaries on 1 February 2021 and that the period of eligibility for a financial contribution from the EGF will therefore be from 1 February 2021 until 24 months after the date of the entry into force of the financing decision;

Recalls that personalised services to be provided to the workers consist of the following actions: advisory services and vocational guidance, training, including horizontal competencies, re-skilling, up-skilling, internships, and vocational training, contribution to business creation, hiring benefits, quick reemployment allowance, salary top-ups as well as intensive job-search assistance; stresses the importance of quickly providing job opportunities in the Union to dismissed qualified workers;

Reiterates in that context the important role the Union should play in making available the necessary qualifications for the just and digital transitions in line with the European Green Deal and major European policy goals; supports strongly that the EGF continues to show solidarity with persons affected and maintains the focus on the impact of restructuring on workers in the rest of the current MFF period; calls for future applications to maximise policy coherence;

Welcomes the fact that the co-ordinated package of personalised services was drawn up by France in consultation with staff and union representatives (8);

10.

Welcomes the fact that Air France has set up an extensive package of active labour market measures aimed at assisting the workers dismissed, in line with its legal obligation;

11.

Points out that Air France regularly offers trainings for its staff in which attention is paid to digital skills and skills required in a resource-efficient economy, as part of it ‘Skills Development Plan’ and welcomes that those trainings remain available to the displaced workers for the duration of their participation in the EGF measures; stresses the importance of preparing workers for a green and digital Union economy and working towards the twin transitions;

12.

Notes that the digital and green transformation will also have an effect on the labour market especially in the aviation sector; therefore special attention should be paid to qualified education, including vocational training and promoting the so-called dual apprenticeship system, which has proven to be effective in some member states;

13.

Stresses that the French authorities have confirmed that the eligible actions do not receive assistance from other Union funds or financial instruments;

14.

Reiterates that assistance from the EGF must not replace actions which are the responsibility of companies, by virtue of national law or collective agreements, or any allowances or rights of the displaced workers, to ensure full additionality of the allocation;

15.

Approves the decision annexed to this resolution;

16.

Instructs its President to sign the decision with the President of the Council and arrange for its publication in the Official Journal of the European Union;

17.

Instructs its President to forward this resolution, including its Annex, to the Council and the Commission;

(1) OJ L 153, 3.5.2021, p. 48.

(2) OJ L 433 I, 22.12.2020, p. 11.

(3) OJ L 433 I, 22.12.2020, p. 28.

(4) Île-de-France (FR10), Nord Pas de Calais (FRE1), Alsace (FRF1), Pays de la Loire (FRG0), Bretagne (FRH0), Aquitaine (FRI1), Languedoc Roussillon (FRJ1), Midi Pyrénées (FRJ2), Auvergne (FRK1), Rhône Alpes (FRK2), Provence Alpes Côte d’Azur (FRL0) and Corse (FRM0).

(5) Guadeloupe (FRY1), Martinique (FRY2), Guyane (FRY3) and La Réunion (FRY4).

(6) Hop and Hop Training.

(7) COM(2020)0442.

(8) SNPNC, UNAC, UNSA-PNC, CFDT, FO, and CFE/CGC.

ANNEX

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from France

(EGF/2022/001 FR/Air France)

(The text of this annex is not reproduced here since it corresponds to the final act, Decision (EU) 2022/1164.)

27.1.2023

Official Journal of the European Union

C 32/409

P9_TA(2022)0256

Mobilisation of the European Globalisation Adjustment Fund: application EGF/2021/008 EL/Attica electrical equipment manufacturing — Greece

European Parliament resolution of 23 June 2022 on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Greece — EGF/2021/008 EL/Attica electrical equipment manufacturing (COM(2022)0248 — C9-0190/2022 — 2022/0170(BUD))

(2023/C 32/20)

The European Parliament,

—	having regard to the Commission proposal to the European Parliament and the Council (COM(2022)0248 — C9-0190/2022),

—	having regard to Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013 (1) (‘EGF Regulation’),

—	having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027 (2) (‘MFF Regulation’), and in particular Article 8 thereof,

—

having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management as well as on new own resources, including a roadmap towards the introduction of new own resources (3), and in particular point 9 thereof,

—	having regard to the letters from the Committee on Employment and Social Affairs and from the Committee on Regional Development,

—	having regard to the report of the Committee on Budgets (A9-0185/2022),

whereas the Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of globalisation and of technological and environmental changes, such as changes in world trade patterns, trade disputes, significant changes in the trade relations of the Union or the composition of the internal market and financial or economic crises, as well as the transition to a carbon-neutral economy, or as a consequence of digitisation or automation;

B.	whereas the Union has extended the scope of the European Globalisation Adjustment Fund for Displaced Workers (EGF) to provide financial support in case of any major restructuring event, and thus covering economic effects of the coronavirus crisis;

whereas Greece submitted application EGF/2021/008 EL/Attica electrical equipment manufacturing for a financial contribution from the EGF, following 206 displacements in the economic sector classified under the NACE Revision 2 division 27 (Manufacture of electrical equipment) in the Greek NUTS level 2 region Attica (EL30), within a reference period for the application from 1 April 2021 to 1 October 2021;

whereas the application relates to 206 displaced workers whose activity ceased in six companies (4) during the reference period, and who will all be considered to be eligible beneficiaries; whereas 180 of the displaced workers are men (87,4 %) and 26 are women (12,6 %); whereas 26 of the displaced workers are under the age of 30 (12,6 %), 137 are between 30 and 54 years old (66,5 %) and 43 are over the age of 54 (20,9 %); whereas 167 of the displaced workers have lower secondary education or less (81,1 %), 6 have upper secondary or post-secondary education (2,9 %) and 33 have third-level education (16,0 %);

whereas the application is based on the intervention criteria of Article 4(2), point (b), of the EGF Regulation, which requires the cessation of activity of at least 200 displaced workers over a reference period of six months in enterprises operating in the same economic sector defined at NACE Revision 2 division and located in one region or two contiguous regions defined at NUTS 2 level in a Member State;

F.	whereas expenditure for new household appliances in Greece was strongly impacted first by the economic crisis in the years from 2008 to 2016 (35 % decrease) and second by the COVID-19 pandemic (50 % decrease between 2019 and 2020), having recovered by 9,5 % between 2017 and 2019;

whereas the basic digital skills of the Greek population remain underdeveloped and behind the Union average, which implies a high risk of technological lag and digital illiteracy; whereas, according to the Commission’s 2021 Digital Economy and Society Index (DESI) (5), Greece ranked 22nd among the 27 Member States with regard to the integration of digital technologies into business activities and only 23 % of individuals possess above-basic digital skills, compared to a Union average of 31 %;

whereas in that context, the loss of competitiveness of the Pitsos production plant due to a combination of factors, such as a lack of automation and advanced manufacturing, the high production costs of electrical household appliances, a shortage in the domestic supply of electrical components, the BSH-Pitsos management decision not to support the capital investments required to optimise the production facility of the plant and the decision to move production to Turkey for lower production costs (while the brand, sales and service department was retained in Greece) led to the announcement of the closure of the Pitsos production plant in September 2017; whereas production was extended until the beginning of 2021, and 166 workers were dismissed in 2021;

I.	whereas 40 workers were dismissed in five other enterprises, which faced the challenges of adapting to the rapidly transforming digital economy;

whereas, although the unemployment rate in Greece has been gradually declining since 2013, when it reached its highest peak of 27,5 %, Greece continues to have very high unemployment rates; whereas, in 2021, the unemployment rate in Greece was the second highest in the Union at 14,7 %, compared to a Union average of 7,0 % (6);

K.	whereas the EGF shall not exceed a maximum annual amount of EUR 186 million (in 2018 prices), as laid down in Article 8 of the MFF Regulation;

whereas the financial contributions from the EGF should be primarily directed at active labour market policy measures and personalised services that aim to reintegrate beneficiaries rapidly into decent and sustainable employment within or outside their initial sector of activity, while preparing them for a greener and more digital European economy;

Agrees with the Commission that the conditions set out in Article 4(2), point (b), of the EGF Regulation are met and that Greece is entitled to a financial contribution of EUR 1 495 830 under that Regulation, which represents 85 % of the total cost of EUR 1 759 800, comprising EUR 1 689 800 of expenditure for personalised services and EUR 70 000 of expenditure for implementing the EGF (7);

Notes that the Greek authorities submitted the application on 21 December 2021, and that the Commission finalised its assessment on 30 May 2022 and notified it to Parliament on the same day; considers that the assessment period should be reduced so that the targeted beneficiaries get the necessary help with less delay;

Notes that the application relates in total to 206 displaced workers whose activity has ceased; welcomes the fact that Greece expects that all of the eligible beneficiaries will participate in the measures (targeted beneficiaries);

Recalls that the social impact of the redundancies is expected to be significant for the Attica region in Greece, which had the highest number of unemployed people in Greece in December 2021 (342 744, representing 31 % of registered Greek unemployed people), and where 24,1 % of the population is at risk of poverty and social exclusion (8);

Points out that 81,1 % of the dismissed workers have lower secondary education or less and will face difficulties in finding re-employment opportunities;

Notes that Greece will start providing the personalised services to the targeted beneficiaries as soon as the mobilisation decision is adopted by the budgetary authorities and that the expenditure on the measures will therefore be eligible for a financial contribution from the EGF from the date on which Greece starts to provide personalised services until 24 months after the date of the entry into force of the financing decision (9);

Recalls that personalised services to be provided to the workers consist of the following actions: professional counselling, training in digital skills, vocational training and education, higher education, contribution to business start-up, and a variety of allowances;

Reiterates in that context the important role the Union should play in providing the necessary qualifications for the just transition in line with the European Green Deal; strongly supports that in 2021-2027 the EGF will continue to show solidarity with persons affected and maintain the focus on the impact of restructuring on workers and calls for future applications to maximise policy coherence;

Welcomes the fact that the co-ordinated package of personalised services was drawn up by Greece in consultation with workers’ representatives and a number of former employees;

10.

Welcomes that training in digital skills was included as a horizontal element in designing the proposed actions, which will contribute to the dissemination of horizontal skills required in the digital industrial age as well as in a resource-efficient economy, in line with Article 7(2) of the EGF Regulation;

11.

Notes that Greece started incurring administrative expenditure to implement the EGF on 1 March 2022 and that expenditure on preparatory, management, information and publicity, control and reporting activities will therefore be eligible for a financial contribution from the EGF from 1 March 2022 until 31 months after the date of the entry into force of the financing decision;

12.

Calls on the Commission to reduce the time taken to assess EGF assistance requests and to mobilise the EGF in a more rapid way, so as to reduce the pressure on national social security systems of the affected regions;

13.

Stresses that the Greek authorities have confirmed that the eligible actions do not receive assistance from other Union funds or financial instruments;

14.

Reiterates that, to ensure full additionality of the allocation, assistance from the EGF must not replace actions or any allowances or rights of the displaced workers which are the responsibility of companies, by virtue of national law or collective agreements, as well as required actions by Members States to enhance the competitiveness of companies, particularly SMEs, and their capacity to adapt to the rapidly transforming digital economy, actions to enhance the digital skills of workers in order to address the risk of technological lag and digital illiteracy, measures to enhance the purchasing power of the population, as well as further targeted active employment policies to combat unemployment and facilitate the reintegration of displaced workers into the labour market;

15.

Approves the decision annexed to this resolution;

16.

Calls for the swift release of the EGF financial contribution of EUR 1 495 830 to Greece;

17.

Instructs its President to sign the decision with the President of the Council and arrange for its publication in the Official Journal of the European Union;

18.

Instructs its President to forward this resolution, including its annex, to the Council and the Commission.

(1) OJ L 153, 3.5.2021, p. 48.

(2) OJ L 433 I, 22.12.2020, p. 11.

(3) OJ L 433 I, 22.12.2020, p. 28.

(4) Bsh Oikiakes Syskeves Anon. Viom. Etairia [Bsh-Pitsos], Seller Hellas Avee, Nexans HellasMonoprosopi Ave, Kampourakis Georgios — G.E.M.A., Sammler V. Michalopoulos Aeve, Mavilek Avee

(5) https://digital-strategy.ec.europa.eu/en/policies/desi-greece

(6) https://ec.europa.eu/eurostat/databrowser/view/tps00203/default/table?lang=en

(7) In accordance with the fifth paragraph of Article 7 of the EGF Regulation.

(8) According to Eurostat.

(9) With the exception of formal studies of a duration of more than two years, which will be eligible until the deadline for submission of the final report.

ANNEX

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Greece (EGF/2021/008 EL/Attica electrical equipment manufacturing)

(The text of this annex is not reproduced here since it corresponds to the final act, Decision (EU) 2022/1163.)

27.1.2023

Official Journal of the European Union

C 32/414

P9_TA(2022)0259

Nomination of a member of the Court of Auditors — Stephanus Abraham Blok

European Parliament decision of 23 June 2022 on the nomination of Stephanus Abraham Blok as a Member of the Court of Auditors (C9-0150/2022 — 2022/0805(NLE))

(Consultation)

(2023/C 32/21)

The European Parliament,

—	having regard to Article 286(2) of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C9-0150/2022),

—	having regard to Rule 129 of its Rules of Procedure,

—	having regard to the report of the Committee on Budgetary Control (A9-0180/2022),

A.	whereas, by letter of 8 April 2022, the Council consulted Parliament on the nomination of Stephanus Abraham Blok as a Member of the Court of Auditors;

whereas Parliament’s Committee on Budgetary Control then proceeded to evaluate Mr Blok’s credentials, in particular in view of the requirements laid down in Article 286(1) of the Treaty on the Functioning of the European Union; whereas in carrying out that evaluation, the committee received a curriculum vitae from Mr Blok as well as his replies to the written questionnaire that he had been sent;

C.	whereas the committee subsequently held a hearing with Mr Blok on 15 June 2022, at which he made an opening statement and then answered questions put by the members of the committee;

Delivers a favourable opinion on the Council’s nomination of Stephanus Abraham Blok as a Member of the Court of Auditors;

Instructs its President to forward this decision to the Council and, for information, to the Court of Auditors, the other institutions of the European Union and the audit institutions of the Member States.

27.1.2023

Official Journal of the European Union

C 32/415

P9_TA(2022)0260

Renewal of the Agreement for scientific and technological cooperation between the European Community and the Federative Republic of Brazil ***

European Parliament legislative resolution of 23 June 2022 on the draft Council decision concerning the renewal of the Agreement for scientific and technological cooperation between the European Community and the Federative Republic of Brazil (14207/2021 — C9-0478/2021 — 2021/0336(NLE))

(Consent)

(2023/C 32/22)

The European Parliament,

—	having regard to the draft Council decision (14207/2021),

—	having regard to Council Decision 2005/781/EC of 6 June 2005 on the conclusion of the Agreement for scientific and technological cooperation between the European Community and the Federative Republic of Brazil (1),

—	having regard to the request for consent submitted by the Council in accordance with Article 186 and Article 218(6), second subparagraph, point (a)(v), of the Treaty on the Functioning of the European Union (C9-0478/2021),

—	having regard to Rule 105(1) and (4), and Rule 114(7) of its Rules of Procedure,

—	having regard to the recommendation of the Committee on Industry, Research and Energy (A9-0176/2022),

Gives its consent to the renewal of the agreement;

Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States and of the Federative Republic of Brazil.

(1) OJ L 295, 11.11.2005, p. 37.

27.1.2023

Official Journal of the European Union

C 32/416

P9_TA(2022)0261

Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters: accession by the European Union ***

European Parliament legislative resolution of 23 June 2022 on the draft Council decision concerning the accession of the European Union to the Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters (13494/2021 — C9-0465/2021 — 2021/0208(NLE))

(Consent)

(2023/C 32/23)

The European Parliament,

—	having regard to the draft Council decision (13494/2021),

—	having regard to the Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters (13494/2021 ADD 1),

—	having regard to the request for consent submitted by the Council in accordance with Article 81(2), point (a), and Article 218(6), second subparagraph, point (a)(v), of the Treaty on the Functioning of the European Union (C9-0465/2021),

—	having regard to Rule 105(1) and (4) and Rule 114(7) of its Rules of Procedure,

—	having regard to the recommendation of the Committee on Legal Affairs (A9-0177/2022),

Gives its consent to the accession of the European Union to the Convention;

Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States.

		ISSN 1977-091X
Official Journal of the European Union		C 32

English edition	Information and Notices	Volume 66 27 January 2023

Contents		page

	EUROPEAN PARLIAMENT 2022-2023 SESSION Sittings of 22 to 23 June 2022 TEXTS ADOPTED	1

	I Resolutions, recommendations and opinions
	RESOLUTIONS
	European Parliament
	Thursday 23 June 2022
2023/C 32/01	European Parliament resolution of 23 June 2022 on the candidate status of Ukraine, the Republic of Moldova and Georgia (2022/2716(RSP))	2
2023/C 32/02	European Parliament resolution of 23 June 2022 on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize DP4114 × MON 810 × MIR604 × NK603 and genetically modified maize combining two or three of the single events DP4114, MON 810, MIR604 and NK603, pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (D081155/01 — 2022/2694(RSP))	6
2023/C 32/03	European Parliament resolution of 23 June 2022 on Commission Implementing Decision (EU) 2022/797 of 19 May 2022 authorising the placing on the market of products containing, consisting of or produced from genetically modified maize NK603 × T25 × DAS-40278-9 and its sub-combination T25 × DAS-40278-9, pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (D080148/03 — 2022/2713(RSP))	14
2023/C 32/04	European Parliament resolution of 23 June 2022 on illegal logging in the EU (2022/2523(RSP))	20
2023/C 32/05	European Parliament resolution of 23 June 2022 on the implementation and delivery of the Sustainable Development Goals (SDGs) (2022/2002(INI))	28
2023/C 32/06	European Parliament resolution of 23 June 2022 on the implementation of the Recovery and Resilience Facility (2021/2251(INI))	42
2023/C 32/07	European Parliament resolution of 23 June 2022 on the implementation of inclusion measures within Erasmus+ 2014-2020 (2021/2009(INI))	58
2023/C 32/08	European Parliament resolution of 23 June 2022 on the 2021 Commission Report on Montenegro (2021/2247(INI))	63
2023/C 32/09	European Parliament resolution of 23 June 2022 on the future of EU-Africa trade relations (2021/2178(INI))	74
2023/C 32/10	European Parliament resolution of 23 June 2022 on the future of EU international investment policy (2021/2176(INI))	96

	III Preparatory acts
	European Parliament
	Wednesday 22 June 2022
2023/C 32/11	Amendments adopted by the European Parliament on 22 June 2022 on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union, Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and Regulation (EU) 2015/757 (COM(2021)0551 — C9-0318/2021 — 2021/0211(COD))	108
2023/C 32/12	Amendments adopted by the European Parliament on 22 June 2022 on the proposal for a regulation of the European Parliament and of the Council establishing a Social Climate Fund (COM(2021)0568 — C9-0324/2021 — 2021/0206(COD))	250
2023/C 32/13	Amendments adopted by the European Parliament on 22 June 2022 on the proposal for a regulation of the European Parliament and of the Council establishing a carbon border adjustment mechanism (COM(2021)0564 — C9-0328/2021 — 2021/0214(COD))	320
	Thursday 23 June 2022
2023/C 32/14	P9_TA(2022)0250 Exceptional temporary support under EAFRD in response to the impact of Russia’s invasion of Ukraine ***I European Parliament legislative resolution of 23 June 2022 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1305/2013 as regards a specific measure to provide exceptional temporary support under the European Agricultural Fund for Rural Development (EAFRD) in response to the impact of Russia’s invasion of Ukraine (COM(2022)0242 — C9-0185/2022 — 2022/0166(COD)) P9_TC1-COD(2022)0166 Position of the European Parliament adopted at first reading on 23 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulation (EU) No 1305/2013 as regards a specific measure to provide exceptional temporary support under the European Agricultural Fund for Rural Development (EAFRD) in response to the impact of Russia’s invasion of Ukraine	399
2023/C 32/15	P9_TA(2022)0251 Gas storage ***I European Parliament legislative resolution of 23 June 2022 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2017/1938 of the European Parliament and of the Council concerning measures to safeguard the security of gas supply and Regulation (EC) No 715/2009 of the European Parliament and of the Council on conditions for access to natural gas transmission networks (COM(2022)0135 — C9-0126/2022 — 2022/0090(COD)) P9_TC1-COD(2022)0090 Position of the European Parliament adopted at first reading on 23 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulations (EU) 2017/1938 and (EC) No 715/2009 with regard to gas storage	400
2023/C 32/16	P9_TA(2022)0252 EU Digital COVID Certificate — Union citizens ***I European Parliament legislative resolution of 23 June 2022 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/953 on a framework for the issuance, verification and acceptance of interoperable COVID-19 vaccination, test and recovery certificates (EU Digital COVID Certificate) to facilitate free movement during the COVID-19 pandemic (COM(2022)0050 — C9-0031/2022 — 2022/0031(COD)) P9_TC1-COD(2022)0031 Position of the European Parliament adopted at first reading on 23 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulation (EU) 2021/953 on a framework for the issuance, verification and acceptance of interoperable COVID-19 vaccination, test and recovery certificates (EU Digital COVID Certificate) to facilitate free movement during the COVID-19 pandemic	401
2023/C 32/17	P9_TA(2022)0253 EU Digital COVID Certificate — third-country nationals ***I European Parliament legislative resolution of 23 June 2022 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/954 on a framework for the issuance, verification and acceptance of interoperable COVID-19 vaccination, test and recovery certificates (EU Digital COVID Certificate) with regard to third-country nationals legally staying or residing in the territories of Member States during the COVID-19 pandemic (COM(2022)0055 — C9-0032/2022 — 2022/0030(COD)) P9_TC1-COD(2022)0030 Position of the European Parliament adopted at first reading on 23 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulation (EU) 2021/954 on a framework for the issuance, verification and acceptance of interoperable COVID-19 vaccination, test and recovery certificates (EU Digital COVID Certificate) with regard to third-country nationals legally staying or residing in the territories of Member States during the COVID-19 pandemic	402
2023/C 32/18	European Parliament resolution of 23 June 2022 on the Council position on Draft amending budget No 3/2022 of the European Union for the financial year 2022 — financing reception costs of people fleeing Ukraine (09095/2022 — C9-0182/2022 — 2022/0126(BUD))	403
2023/C 32/19	European Parliament resolution of 23 June 2022 on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from France — EGF/2022/001 FR/Air France (COM(2022)0201 — C9-0170/2022 — 2022/0143(BUD))	405
2023/C 32/20	European Parliament resolution of 23 June 2022 on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Greece — EGF/2021/008 EL/Attica electrical equipment manufacturing (COM(2022)0248 — C9-0190/2022 — 2022/0170(BUD))	409
2023/C 32/21	European Parliament decision of 23 June 2022 on the nomination of Stephanus Abraham Blok as a Member of the Court of Auditors (C9-0150/2022 — 2022/0805(NLE))	414
2023/C 32/22	European Parliament legislative resolution of 23 June 2022 on the draft Council decision concerning the renewal of the Agreement for scientific and technological cooperation between the European Community and the Federative Republic of Brazil (14207/2021 — C9-0478/2021 — 2021/0336(NLE))	415
2023/C 32/23	European Parliament legislative resolution of 23 June 2022 on the draft Council decision concerning the accession of the European Union to the Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters (13494/2021 — C9-0465/2021 — 2021/0208(NLE))	416