Amending Regulation (EU) 2023/956 as regards simplifying and strengthening the carbon border adjustment mechanism

Wording as published by the EP, in English.

1. Amendment 7Rejected

   Article 1 – paragraph 1 – point 21 – point a

   Tabled by Antonella Sberna, Pietro Fiocchi, Stefano Cavedagna · ECR

   Removed: (a) the following paragraph 1a is inserted: ‘1a. The competent authority may decrease the amount of the penalty calculated in accordance with paragraph 1, considering one or more of the following factors: a) the extent of unreported information; b) the level of cooperation and readiness of the authorised CBAM declarant to comply with requests for information; c) the unintentional nature of the behaviour of the authorised CBAM declarant; d) the past compliance of the authorised CBAM declarant.;’ Added: deleted

2. Amendment 9Rejected

   Recital 29 a (new)

   Tabled by Jadwiga Wiśniewska, Aurelijus Veryga, Adrian-George Axinia +13 · ECR

   Added: (29 a) It is necessary to ensure effective implementation of the Carbon Border Adjustment Mechanism (CBAM) and to address the remaining regulatory loopholes, which result in circumvention of the established rules and, in consequence, put European production at risk of competitive disadvantage. It is therefore necessary to address the regulatory loopholes, through strict oversight and monitoring of CBAM application, in order to ensure a level playing field between European producers of CBAM goods and third country producers and effectively reduce global emissions.

3. Amendment 10Rejected

   Article 1 – paragraph 1 – point 16 – point b

   Tabled by Jadwiga Wiśniewska, Aurelijus Veryga, Adrian-George Axinia +13 · ECR

   … for the import of goods refers to the same goods by CN Removed: code Added: code, same third country operator and countries of origin as the CBAM declaration submitted for the preceding calendar Removed: year.; Added: year, provided that the third country operators are registered in the CBAM registry in accordance with Article 10.;

4. Amendment 12Rejected

   Annex I – paragraph 1 – point 2 – point a

   Tabled by Jadwiga Wiśniewska, Aurelijus Veryga, Adrian-George Axinia +13 · ECR

   … default values shall be based on the average emission intensity of the Removed: ten Added: 10% of exporting countries with the highest emission intensities for which reliable data can be applied for that type of goods.; Added: if the number of exporting countries for which reliable data are available is higher than 30, the default values shall be based on the average emission intensity of the three countries with the highest emissions intensities for which reliable data are available’;

5. Amendment 13Rejected

   Recital 27 a (new)

   Tabled by Patryk Jaki, Jadwiga Wiśniewska, Dominik Tarczyński +2 · ECR

   Added: (27 a) Coking coal is a critical raw material of strategic importance for European industry, which underpins the green and digital transition. Listed under Regulation (EU) 2024/1252 of the European Parliament and of the Council1a, coking coal is of a strategic importance for the overall Union economy, and therefore its internal European production should be promoted. Imports of coking coal from third countries with less stringent environmental legislation in place negatively impact the European domestic production of coking coal and places European producers at a competitive disadvantage and risks undermining Union's climate and industrial objectives. In order to ensure the level playing field between the European production of coking coal and its imports from third countries, the Commission should present, as part of its assessment referred to in Article 30(2) the possibility to extend the scope of Regulation (EU) 2023/956 to cover the coking coal sector. 1a Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020 (OJ L 1252, 3.5.2024, p.1, ELI: http://data.europa.eu/eli/reg/2024/1252/2024-05-03).

6. Amendment 14Rejected

   Recital 27 b (new)

   Tabled by Patryk Jaki, Jadwiga Wiśniewska, Dominik Tarczyński +2 · ECR

   Added: (27 b) Soda ash is a fundamental chemical compound that is used in a wide range of industrial processes, including the manufacturing of glass, chemicals, detergents and metallurgical operations. The production of soda ash is highly energy-intensive and, within the Union, is subject to stringent climate and energy legislation, notably the obligations under Directive 2003/87/EC of the European Parliament and of the Council1a. Soda ash is imported from third countries with less stringent climate and energy legislation and significantly lower energy prices, which places Union producers of soda ash at a competitive disadvantage and risks encouraging carbon leakage. Therefore, the Commission should present, as part of its assessment referred to in Article 30 (2) of Regulation (EU) 2023/956 the possibility to extend the scope of Regulation (EU) 2023/956 to cover the soda ash sector. 1a Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32, ELI: http://data.europa.eu/eli/dir/2003/87/oj).

7. Amendment 15Rejected

   Article 1 – paragraph 1 – point 23 a (new)

   Tabled by Patryk Jaki, Jadwiga Wiśniewska, Dominik Tarczyński +2 · ECR

   Added: (23 a) in Article 30, paragraph 2 is amended as follows: (a) the first subparagraph is replaced by the following: 'Before the end of the transitional period referred to in Article 32, the Commission shall present a report to the European Parliament and to the Council on the application of this Regulation. The report shall be accompagnied by a legislative proposal.' (b) the second subparagraph, point (a)(iii), is replaced by the following: '(iii) goods at risk of carbon leakage other than those listed in Annex I, and specifically organic chemicals, polymers, soda ash and coking coal';

8. Amendment 17Rejected

   Recital 1 a (new)

   Tabled by Filip Turek, Silvia Sardone, Ondřej Knotek +6 · PfE

   Added: (1 a) Union industries exporting goods that fall within the scope of the CBAM are not compensated for the high and constantly increasing costs incurred by the EU ETS or protected from possible retaliatory measures imposed by trading partners. In the context of the comprehensive review, the Commission will introduce an export adjustment mechanism, address the issue of circumventing measures, and guarantee that CBAM exporters are protected from third countries' retaliatory measures.

9. Amendment 18Rejected

   Recital 1 b (new)

   Tabled by Filip Turek, Silvia Sardone, Ondřej Knotek +6 · PfE

   Added: (1 b) The Union is the only major region in the world to have introduced a significant price on CO2, but the incentive effect of such a carbon pricing on trading partners has not been clearly demonstrated. The introduction of the CBAM is causing concerns among Union economic actors, particularly the energy-intensive industries already pressured by the Union's excessive environmental legislation. In the context of the comprehensive review, the Commission will remove the phase-out of the free allowances under the EU ETS if a level playing field is not ensured.

10. Amendment 19Rejected

    Recital 1 c (new)

    Tabled by Filip Turek, Silvia Sardone, Ondřej Knotek +6 · PfE

    Added: (1 c) The CBAM has been introduced to compensate the effect of the EU ETS in order to address carbon leakage. As currently designed, the CBAM will not ensure a level playing field. For those reasons, the Commission will review the EU ETS and the CBAM by the end of 2025 for a potential deletion of these two measures.

11. Amendment 23Rejected

    Recital 27 b (new)

    Tabled by Filip Turek, Silvia Sardone, Ondřej Knotek +6 · PfE

    Added: (27 b) Revenues generated from the application of the CBAM shall not be allocated to the general budget of the Union. Those revenues shall remain under the responsibility of the Member States where they are collected and shall be used exclusively for domestic purposes, in particular to support industries and sectors most affected by the Union's environmental policies.

12. Amendment 25Rejected

    Article 1 – paragraph 1 – point 24 a (new)

    Tabled by Filip Turek, Silvia Sardone, Ondřej Knotek +6 · PfE

    Added: (24 a) the following article is inserted: 'Article 32a The Commission shall suspend the application of this Regulation in the following cases: (a) where clear and substantiated evidence demonstrates that its implementation significantly distorts competition or leads to retaliation from third countries;or (b) where no viable, sustainable, and low-cost technological alternatives are currently available on the Union market.'

13. Amendment 26Rejected

    Article 1 – paragraph 1 – point 25 – point a

    Tabled by Filip Turek, Silvia Sardone, Ondřej Knotek +6 · PfE

    … Articles 21 to 22(1), Article 22(3), Articles 27 and 31 shall apply Removed: from 1 January 2026.; Added: after the entry into force of the legislative proposal following the comprehensive review.;

14. Amendment 27Rejected

    Annex II – paragraph 1

    Tabled by Filip Turek, Silvia Sardone, Ondřej Knotek +6 · PfE

    1. The threshold referred to in Article 2(3a) shall be set at Removed: 50 Added: 110 tonnes of net mass.

15. Amendment 29Rejected

    Recital 1 a (new)

    Tabled by Marion Maréchal, Laurence Trochu, Guillaume Peltier +1 · ECR

    Added: (1 a) The structural issues threatening the aluminium industry continue to be unadressed making the CBAM an ineffective tool for preventing carbon leakage in the aluminium sector, and creating substantial problems for the European aluminium supply chain — a highly energy-intensive and complex industry that operates as a price-taker in extremely competitive global markets, where Europe relies on imports for more than half of its needs. It is therefore necessary to suspend the implementation of the CBAM final phase and the phasing-out of free allowances for the aluminium sector until solutions are adopted in the future review of Regulation (EU) 2023/956 which fully assess the competitiveness of the aluminium sector.

16. Amendment 30Rejected

    Recital 1 b (new)

    Tabled by Marion Maréchal, Laurence Trochu, Guillaume Peltier +1 · ECR

    Added: (1 b) To avoid unfair competitivity for exporters of goods listed in Annex I to Regulation (EU) 2023/956, ETS free allocations and indirect cost compensation should be maintained at current levels.

17. Amendment 31Rejected

    Article 1 – paragraph 1 – point 25 – point a

    Tabled by Marion Maréchal, Laurence Trochu, Guillaume Peltier +1 · ECR

    … 22(1), Article 22(3), Articles 27 and 31 shall apply from 1 January Removed: 2026.; Added: 2026, except for aluminium goods listed in Annex I which need complementary measures to avoid carbon leakages and unfair competitiveness from third countries.;