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DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2021/1119 establishing the framework for achieving climate neutrality

(COM(2025)0524 – C100137/2025 – 2025/0524(COD))

(Ordinary legislative procedure: first reading)

Amendment 1

Proposal for a regulation

Recital 2

Text proposed by the Commission

Amendment

(2) Through the adoption of Regulation (EU) 2021/1119 of the European Parliament and of the Council5 , the Union has enshrined in legislation a binding objective of economy-wide climate neutrality by 2050, thus reducing emissions to net zero by that date, and the aim of achieving negative emissions thereafter, established a binding Union 2030 intermediate climate target and provided for the setting of a Union-wide intermediate climate target for 2040.

(2) Through the adoption of Regulation (EU) 2021/1119 of the European Parliament and of the Council5 , the Union has enshrined in legislation a binding objective of economy-wide climate neutrality by 2050, thus reducing greenhouse gas emissions to net zero by that date, and the aim of achieving negative emissions thereafter. That Regulation also established a binding Union 2030 intermediate climate target and requires the setting of a Union-wide intermediate climate target for 2040.

__________________

5 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, ELI: http://data.europa.eu/eli/reg/2021/1119/oj).

Amendment 2

Proposal for a regulation

Recital 3

Text proposed by the Commission

Amendment

(3) Taking into account the scientific advice by the European Scientific Advisory Board on Climate Change and based on a detailed Impact Assessment, the Commission presented a recommended target of a 90% net greenhouse gas emission reduction compared to 1990 levels for 2040 in its Communication of 6 February 2024 on Securing our future: Europe's 2040 climate target and path to climate neutrality by 2050 building a sustainable, just and prosperous society6 .

(3) Taking into account the scientific advice by the European Scientific Advisory Board on Climate Change (‘the Advisory Board’) and based on a detailed Impact Assessment, the Commission presented a recommended target of a 90% net greenhouse gas emission reduction compared to 1990 levels for 2040 in its Communication of 6 February 2024 on Securing our future: Europe's 2040 climate target and path to climate neutrality by 2050 building a sustainable, just and prosperous society6 .

__________________

6 COM(2024) 63 final.

Amendment 3

Proposal for a regulation

Recital 4

Text proposed by the Commission

Amendment

(4) In order to propose the Union 2040 climate target, the Commission considered the best available and most recent scientific evidence, including the latest reports of the Intergovernmental Panel on Climate Change (IPCC) and the Advisory Board; the social, economic and environmental impacts, including the costs of inaction; the need to ensure a just and socially fair transition for all; cost-effectiveness and economic efficiency; competitiveness of the Union’s economy, in particular small and medium-sized enterprises and sectors most exposed to carbon leakage; best available cost-effective, safe and scalable technologies; energy efficiency and the ‘energy efficiency first’ principle, energy affordability and security of supply; fairness and solidarity between and within Member States; the need to ensure environmental effectiveness and progression over time; the need to maintain, manage and enhance natural sinks in the long term and protect and restore biodiversity, including in the marine environment; investment needs and opportunities; international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement and the ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC); existing information on the projected indicative Union greenhouse gas budget for the 2030-2050 period.

(4) In order to propose the Union 2040 climate target, the Commission considered the best available and most recent scientific evidence, including the latest reports of the Intergovernmental Panel on Climate Change (IPCC) and the Advisory Board; the social, economic and environmental impacts, including the costs of inaction; the need to ensure a just and socially fair transition for all; cost-effectiveness and economic efficiency; competitiveness of the Union’s economy, in particular small and medium-sized enterprises and sectors most exposed to carbon leakage; best available cost-effective, safe and scalable technologies; energy efficiency including the ‘energy efficiency first’ principle, energy affordability and security of supply for all Member States; fairness and solidarity between and within Member States; the need to ensure environmental effectiveness and progression over time; the need to maintain, manage and enhance natural sinks in the long term and protect and restore biodiversity, including in the marine environment; investment needs and opportunities; international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement and the ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC); existing information on the projected indicative Union greenhouse gas budget for the 2030-2050 period.

Amendment 4

Proposal for a regulation

Recital 5

Text proposed by the Commission

Amendment

(5) In order to achieve the 2040 climate target it is essential to, inter alia, fully implement the agreed 2030 framework, ensure and provide support to the competitiveness and resilience of the European industry, ensure transition pathways based on best available cost-effective, safe and scalable technologies, set a greater focus on a just transition that leaves no one behind, ensure fair competition with international partners, decarbonise the energy system with all zero and low carbon energy solutions (including renewables, nuclear, energy efficiency, storage, CCS, CCU, carbon removals, geothermal and hydro-energy, and all other current and future net-zero energy technologies), and organise a strategic dialogue on the post-2030 framework with all relevant sectors. With the Clean Industrial Deal, the EU is putting in place the conditions for a successful transition, focussing on both decarbonisation and industrial renewal, including support mechanisms for European industry, better access to public and private finance, a global level playing field, and clear enabling conditions for the uptake and scaling of clean technologies, in order to strengthen industrial competitiveness and innovation in the EU.

(5) In order to achieve the 2040 climate target it is essential to, inter alia, fully implement the agreed 2030 policy framework, ensure and provide support to enhance and bolster the competitiveness and resilience of the European industry, ensure sustainable food systems as well as the resilience of rural communities and food security through a sustainable and robust European agricultural sector, ensure transition pathways based on best available cost-effective, safe and scalable technologies, and set a greater focus on a just transition for affected regions, sectors and vulnerable households that leaves no one behind, for example through support from the Social Climate Fund in the transition to climate neutrality. Further, it is essential to ensure fair competition with international partners, and to make effective use of all EU economic instruments to deter and counter unfair trade practices, decarbonise the energy system with a technologically neutral approach that includes all zero and low carbon energy solutions (including renewables, nuclear, energy efficiency, storage, CCS, CCU, carbon removals, geothermal and hydro-energy, sustainable bioenergy and all other current and future net-zero energy technologies), reduce import dependencies and diversify the EU’s sources of critical raw materials, and organise a strategic dialogue on the post-2030 framework with all relevant sectors, including industry and transport.

Amendment 5

Proposal for a regulation

Recital 5 a (new)

Text proposed by the Commission

Amendment

(5a) In its conclusions of 23 October 2025, the European Council stated that enhancing the Union’s competitiveness, bolstering its resilience, and advancing the green transition are mutually reinforcing objectives that must be pursued together, and called for an urgent stepping up of efforts to secure the supply of affordable and clean energy and build a genuine Energy Union before 2030, including by leveraging the new Energy Union Task Force, as well as for accelerating work aimed at lowering energy prices and supporting sustainable energy production domestically in the Union. With a view to ensuring a cost-effective, fair and just, pragmatic and socially balanced transition towards climate neutrality, taking into account different national circumstances, both private and public sector investment, including through Union funding, will be a key enabler for the clean transition, for example by supporting and accelerating the deployment and commercialisation of innovative technologies across Member States, supporting access to industrial renewal and decarbonisation, clean tech manufacturing and the modernisation of energy systems as well as providing affordable solutions across the economy and for citizens throughout the Union. The Clean Industrial Deal is putting in place the conditions for a successful transition, focussing on both decarbonisation and industrial renewal, which will contribute to boosting demand for ‘made in Europe’, and support mechanisms for European industry, including the Industrial Decarbonisation Bank and the new simplified state aid framework.

Amendment 6

Proposal for a regulation

Recital 5 a a (new)

Text proposed by the Commission

Amendment

(5aa) Furthermore, the European Council also recalled in its conclusions of 23 October 2025 the urgent need to intensify collective efforts to ensure Europe’s industrial renewal, modernisation and decarbonisation in a technologically neutral manner. It underlined in this context that particular attention should be paid to traditional industries, notably the automotive, shipping, and aviation industries as well as energy-intensive industries, such as steel and metals, chemicals, cement, glass and ceramics, and pulp and paper, so that they remain resilient and competitive in a global market and a challenging geopolitical environment. In this regard, it welcomed the recent Commission proposal to protect the European steel sector from unfair impacts of global overcapacity. It also welcomed the Commission’s intention to take forward the review foreseen under the Regulation on CO2 emissions performance standards for cars and vans, and it called for the swift presentation of this proposal, taking into account technological neutrality and European content. In this context, the European Council also welcomed the recent letter from the President of the Commission on climate and competitiveness.

Amendment 7

Proposal for a regulation

Recital 5 b (new)

Text proposed by the Commission

Amendment

(5b) The Clean Industrial Deal also focuses on better access to public and private finance, an integrated and interconnected Union energy market ensuring energy security, promotion of circular economy, a global level playing field including through the effective implementation and extension of CBAM to downstream goods, introducing anti-circumvention measures and action to address export carbon leakage, and clear enabling conditions such as streamlined permitting and the uptake and scaling of clean technologies, in order to strengthen the Union’s competitive edge and industrial competitiveness as well as innovation in the EU taking into account the challenging geopolitical environment.

Amendment 8

Proposal for a regulation

Recital 7

Text proposed by the Commission

Amendment

(7) Priority should be given to domestic reductions in greenhouse gas emissions, complementing it by increased removals, including through both natural and technological solutions. In the development of the post-2030 policy package, due attention should be paid to the contribution of gross emission reductions versus natural and technological removals. Natural removals have characteristics that should be taken into account, such as forest age structure, proportion of organic soils, natural variability, and uncertainties related to the impacts of climate change, to natural disturbances and to changes in methodologies. Natural and industrial removals play an increasing role in the Union’s economy in the next decades, in view of the need to balance greenhouse gas emissions and removals at the latest by 2050 and negative emissions thereafter. Incentives will be developed in the context of the review of Directive 2003/87/EC of the European Parliament and of the Council7 in 2026, where the Commission envisages to provide for the inclusion of domestic permanent carbon removals in the EU emissions trading system (‘EU ETS’) to compensate for residual hard to abate emissions. The land use, land use change and forestry sector has a central role in a sustainable and circular bioeconomy and has the potential to provide long-term climate and environmental benefits contributing to the clean transition of the EU economy and reducing dependencies by substituting fossil-based materials.

__________________

7 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, ELI: http://data.europa.eu/eli/dir/2003/87/oj).

Amendment 9

Proposal for a regulation

Recital 7 a (new)

Text proposed by the Commission

Amendment

(7a) While some enabling policies have already been implemented and their impact is already visible, this is not yet the case for all. The Commission should continue to strengthen the initiatives concerning the enabling framework and aim to accelerate their adoption to ensure that conditions are in place to support European industry and citizens throughout the transition, in full respect of Union law.

Amendment 10

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8) The Union has in place a regulatory framework to achieve the 2030 climate target. The legislation implementing that target consists, inter alia, of Directive 2003/87/EC, which establishes the EU ETS, Regulation (EU) 2018/842 of the European Parliament and of the Council8 , which introduced national targets for reduction of greenhouse gas emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council9 , which sets net carbon removal targets for the land use sector. The Commission should assess how the relevant Union legislation would need to be amended in order to achieve the 2040 climate target. When designing the future architecture, the Commission should prepare detailed impact assessments, including the impacts on competitiveness and small and medium enterprises, and consider taking necessary measures, including legislative proposals as appropriate. A number of elements to facilitate the achievement of the 2040 target should be appropriately reflected, including a potential limited contribution towards the 2040 target of high-quality international credits under Article 6 of the Paris Agreement, in the second part of the 2030-2040 decade, in line with accounting rules of the Paris Agreement; the role of domestic permanent removals (Biogenic emissions Capture with Carbon Storage (BioCCS) and Direct Air Capture with Carbon Storage (DACCS)) in the EU ETS; enhanced flexibility across sectors. In order to assess the social, economic and environmental impacts, the future architecture should be based on robust impact assessments. The future architecture should also foster convergence while taking into account fairness and Member States’ specificities, including those of islands and outermost regions.

(8) The Union has in place a regulatory framework to achieve the 2030 climate target. The legislation implementing that target consists, inter alia, of Directive 2003/87/EC, which establishes the EU ETS, Regulation (EU) 2018/842 of the European Parliament and of the Council8 , which introduced national targets for reduction of greenhouse gas emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council9 , which sets net carbon removal targets for the land use sector. In order to ensure a smooth transition to the EU ETS2, the application of Article 30(k)(2) letters (a) to (e) of Directive 2003/87/EC should be postponed of one year. The Commission should assess how the relevant Union legislation would need to be amended in order to achieve the 2040 climate target, also taking into account declining natural sink capacity. When designing the post-2030 framework, the Commission should prepare detailed impact assessments, taking into account its analysis of the integrated national energy and climate plans, the geopolitical environment, including the need to ensure the Union’s and its Member States’ capacity to rapidly increase and strengthen their defensive capacity by addressing possible burdens while maintaining incentives for industrial decarbonisation, the impacts on competitiveness, on small and medium-sized enterprises and energy intensive industries, and impacts on energy costs and investment needs across Member States, and consider taking necessary measures, including legislative proposals as appropriate.

__________________

8 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, ELI: http://data.europa.eu/eli/reg/2018/842/oj).

9 Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/841/oj).

Amendment 11

Proposal for a regulation

Recital 8 a (new)

Text proposed by the Commission

Amendment

(8a) A number of elements to facilitate the achievement of the 2040 climate target should be appropriately reflected, including an adequate contribution towards the 2040 climate target of high-quality international credits under Article 6 of the Paris Agreement, in the second part of the 2031-2040 decade, in a way that is both ambitious and cost-efficient and in line with accounting rules of the Paris Agreement, including a pilot period to initiate a high-quality and high-integrity international credit market for the period 2031-2035; the role of domestic permanent removals (such as Biogenic emissions Capture with Carbon Storage (BioCCS) and Direct Air Capture with Carbon Storage (DACCS)) in the EU ETS while ensuring the environmental integrity of the EU ETS, including the possibility to store CO2 outside the Union, as appropriate, subject to the existence of international agreements and providing for conditions equivalent to those laid out in Union law; and enhanced and accessible flexibility across and within sectors and instruments to support a cost-effective approach whereby for example Member States’ achievements in one sector can balance gaps in others in a cost-efficient way while ensuring that each sector contributes to the efforts and ensuring that possible shortfalls in one sector would not be at the expense of other economic sectors, without prejudice to each Member State’s possibility to make use of the flexibilities. In operationalising the use of international credits, the Commission should take into account the need to ensure a level playing field across Member States and the opportunity to support strategic EU partnerships. International credits should not play a role for compliance in the EU ETS. The current EU ETS trajectory should be revised in the upcoming review of the ETS Directive to take into account the agreed 2040 target in a manner that would allow for a limited amount of emissions after 2039. The Commission should timely consider a slower phase-out pathway for free allocation of allowances from 2028 onwards to support decarbonisation, investment and employment in Europe, including through the Industrial Decarbonisation Bank and a review of the Market Stability Reserve, while minimising the risk of carbon leakage. In order to assess the social, economic and environmental impacts, the post-2030 framework should be based on robust impact assessments. The post-2030 framework should also foster convergence while taking into account fairness and Member States’ national circumstances and specificities, including those of islands, island Member States and outermost regions.

Amendment 12

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 2

Text proposed by the Commission

Amendment

While some enabling policies have already been implemented and their impact is already visible, this is not yet the case for all. The Commission shall aim to accelerate and strengthen the enabling framework to ensure that conditions are in place to support European industry and citizens throughout the transition, in full respect of EU law.

The Commission shall continue to strengthen the initiatives concerning the enabling framework and aim to accelerate their adoption and implementation to ensure that conditions are in place to support affected legal and natural persons, such as European industry and citizens throughout the transition, towards the targets set out in paragraphs 1 and 3 of this Article, the objective set out in Article 2(1) and a climate-neutral economy.

Amendment 13

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – introductory part

Text proposed by the Commission

Amendment

Within the framework of the review referred to in the first subparagraph, in order to facilitate the achievement of the target set out in paragraph 3 of this Article, the Commission shall ensure that the following elements are appropriately reflected in the legislative proposals:

Within the framework of the review referred to in the first subparagraph of paragraph 4, in order to facilitate the achievement of the target set out in paragraph 3 of this Article, the Commission shall ensure that the following elements are appropriately reflected in the legislative proposals:

Amendment 14

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point a

Text proposed by the Commission

Amendment

(a) Starting from 2036, a possible limited contribution towards the 2040 target of high-quality international credits under Article 6 of the Paris Agreement of 3% of 1990 EU net emissions supporting the EU and third countries in achieving net greenhouse gas reduction trajectories compatible with the Paris Agreement objective to hold the increase in the global average temperature to well below 2 °C and pursue efforts to limit the temperature increase to 1,5 °C above pre-industrial levels - the origin, quality criteria and other conditions concerning the acquisition and use of any such credits shall be regulated in Union law;

(a) Starting from 2036, an adequate contribution towards the 2040 climate target of high-quality international credits under Article 6 of the Paris Agreement of up to 5% of 1990 EU net emissions corresponding to a domestic reduction of net greenhouse gas emissions by 85% compared to 1990 levels by 2040, in a way that is both ambitious and cost-efficient, supporting the EU and third countries in achieving net greenhouse gas reduction trajectories compatible with the Paris Agreement objective to hold the increase in the global average temperature to well below 2 °C and pursue efforts to limit the temperature increase to 1,5 °C above pre-industrial levels ensuring the environmental integrity of these credits, while promoting the EU’s technological leadership; a pilot period to initiate a high-quality and high-integrity international credit market may be considered for the period 2031-2035; the origin, quality criteria and other conditions concerning the acquisition and use of any such credits shall be regulated in Union law to ensure that they are based on credible and transformative activities in partner countries whose climate targets and policies are compatible with the targets of the Paris Agreement and are subject to robust safeguards ensuring integrity, avoidance of double counting, additionality, permanence, transparent governance, strong monitoring, reporting and verification methodologies, as well as economic, social and environmental co-benefits and human rights safeguards, safeguards to prevent the funding of projects contrary to the strategic interests of the Union, and high ambition for the share of proceeds for adaptation, the share of mitigation benefits with concerned countries and overall mitigation of global emissions; when establishing the criteria, the Commission shall consider setting stricter criteria than those laid down under Article 6.4 of the Paris Agreement;

Amendment 15

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point b

Text proposed by the Commission

Amendment

(b) the role of domestic permanent removals under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) to compensate for residual emissions from hard to abate sectors;

(b) the role of domestic permanent removals under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) to compensate for residual hard-to-abate emissions;

Amendment 16

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point c

Text proposed by the Commission

Amendment

(c) enhanced flexibility within and across sectors and instruments, to support the achievement of targets in a simple and cost-effective way;

Amendment 17

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point c a (new)

Text proposed by the Commission

Amendment

(ca) the realistic contribution of carbon removals to the overall emission reduction effort, while taking into account the uncertainties of natural removals and ensuring that possible shortfalls would not be at the expense of other economic sectors, without prejudice to the possibility for Member States to use surplus natural removals to compensate their emissions in other sectors;

Amendment 18

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point c b (new)

Text proposed by the Commission

Amendment

(cb) the need to maintain, manage and enhance, as appropriate, natural sinks in the long term and protect and restore biodiversity, to promote sustainable and circular bioeconomy, as well as take into account the effects of differences in forest age structure, natural variability and uncertainties notably those linked to the impacts of climate change and natural disturbances in the land use, land use change and forestry sector;

Amendment 19

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point d

Text proposed by the Commission

Amendment

(d) Member States post-2030 targets and efforts should reflect cost-efficiency and solidarity, in light of national circumstances;

(d) Member States post-2030 targets and efforts should reflect cost-efficiency and solidarity, taking into account different national circumstances and specificities, including those of islands and outermost regions;

Amendment 20

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point f

Text proposed by the Commission

Amendment

(f) the social, economic and environmental impacts;

(f) the social, economic and environmental impacts across Member States including in relation to the objectives of decarbonisation and competitiveness for European industry;

Amendment 21

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point h

Text proposed by the Commission

Amendment

(h) the need to ensure a just and socially fair transition for all;

(h) the need to ensure and support a fair and just, pragmatic, cost-effective and socially balanced transition for all, taking into account different national circumstances and paying particular attention to impacts on consumer prices, energy and transport poverty and to regions and sectors, including their investment capacity, small and medium-sized enterprises, farmers and vulnerable households affected by the transition to climate neutrality;

Amendment 22

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point i

Text proposed by the Commission

Amendment

(i) simplification, technology neutrality, cost-effectiveness, economic efficiency, and economic security;

(i) simplification and reduction of administrative burden, technology neutrality, cost-effectiveness, economic efficiency, and economic security;

Amendment 23

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point j

Text proposed by the Commission

Amendment

(j) climate action as a driver for investment and innovation;

(j) climate action as a driver for investment, innovation and increased competitiveness;

Amendment 24

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point k

Text proposed by the Commission

Amendment

(k) the need to strengthen the global competitiveness of the Union’s economy, in particular small and medium-sized enterprises and industrial sectors most exposed to carbon leakage so as to ensure fair competition;

(k) the need to strengthen the resilience and global competitiveness of the Union’s economy and reduce risk of carbon leakage, in particular for small and medium-sized enterprises and industrial sectors that are most exposed to carbon leakage, including in relation to exports, so as to ensure fair competition;

Amendment 25

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point m

Text proposed by the Commission

Amendment

(m) energy affordability, security of supply, energy efficiency and the ‘energy efficiency first’ principle;

(m) energy availability and affordability, security of supply, energy security, energy efficiency including the ‘energy efficiency first’ principle, as well as strengthening of electricity grids and interconnections with a view to building a genuine Energy Union and promoting domestically produced energy;

Amendment 26

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point m a (new)

Text proposed by the Commission

Amendment

(m a) the role of zero-, low carbon and renewable fuels in the decarbonisation of transport, including road transport beyond 2030 and concrete measures to assist heavy duty vehicles manufacturers to reach their targets, taking into account European content;

Amendment 27

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point o

Text proposed by the Commission

Amendment

(o) the need to ensure environmental effectiveness and progression over time;

(o) the need to ensure environmental effectiveness and progression over time, while also safeguarding social cohesion as well as ensuring food security and a just transition;

Amendment 28

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point p

Text proposed by the Commission

Amendment

(p) the need to maintain, manage and enhance natural sinks in the long term and protect and restore biodiversity, as well as take into account uncertainties notably those linked to the impacts of climate change in the land use sector;

deleted

Amendment 29

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point q

Text proposed by the Commission

Amendment

(q) investment needs and opportunities, including access to public and private finance;

(q) investment needs and opportunities, including access to public and private finance as well as support for innovation and access to innovative technologies across all Member States, taking into account geographical balance;

Amendment 30

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 5 – point r

Text proposed by the Commission

Amendment

(r) international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement and the ultimate objective of the UNFCCC, as well as the support of the Union to its partners in addressing climate change and its impacts..

(r) international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement and the ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC), as well as the support of the Union to its partners in addressing climate change and its impacts.

Amendment 31

Proposal for a regulation

Article 1 – paragraph 1 – point 2 a (new)

Regulation (EU) 2021/1119

Article 4 – paragraph 8 (new)

Text proposed by the Commission

Amendment

(2a) in Article 4, the following paragraph is added:

'8. Starting from one year after the adoption of this Regulation, the Commission shall biennially assess and report on the implementation of the intermediate targets and decarbonisation trajectories set out in this Regulation, taking into account the latest scientific evidence, technological advances and evolving challenges to and opportunities for the EU’s global competitiveness. The assessment may be accompanied, where appropriate, by legislative proposals.';

Amendment 32

Proposal for a regulation

Article 1 – paragraph 1 – point 3 (new)

Regulation (EU) 2021/1119

Article 11 – paragraph 1 – point c (new)

Text proposed by the Commission

Amendment

(3) in Article 11, first paragraph, the following points are added:

'(c) the evolving challenges to and opportunities for global competitiveness of European industries across Member States, in particular of energy-intensive industries and of small and medium-sized enterprises;';

Amendment 33

Proposal for a regulation

Article 1 – paragraph 1 – point 3 (new)

Regulation (EU) 2021/1119

Article 11 – paragraph 1 – point c a (new)

Text proposed by the Commission

Amendment

(ca) the evolution of energy prices and its impact on European industries and households;

Amendment 34

Proposal for a regulation

Article 1 – paragraph 1 – point 3 (new)

Regulation (EU) 2021/1119

Article 11 – paragraph 1 – point c b (new)

Text proposed by the Commission

Amendment

(cb) the socioeconomic impacts including the effects on employment;

Amendment 35

Proposal for a regulation

Article 1 – paragraph 1 – point 3 (new)

Regulation (EU) 2021/1119

Article 11 – paragraph 1 – point d (new)

Text proposed by the Commission

Amendment

(d) technological advances and deployment across Member States and sectors of innovative technologies;

Amendment 36

Proposal for a regulation

Article 1 – paragraph 1 – point 3 (new)

Regulation (EU) 2021/1119

Article 11 – paragraph 1 – point e (new)

Text proposed by the Commission

Amendment

(e) the estimated level of net removals at Union level in relation to the targets of this Regulation. If the Commission finds that the estimated level of net natural removals for 2040 is significantly diverging from what would be required to achieve the 2040 intermediate target, including where due to natural disturbances, the Commission shall propose, where appropriate, measures at Union level, including if necessary an adjustment of the 2040 intermediate target corresponding to and within the limits of the possible shortfalls, and ensure that possible shortfalls will not be at the expense of other economic sectors;

Amendment 37

Proposal for a regulation

Article 1 – paragraph 1 – point 3 (new)

Regulation (EU) 2021/1119

Article 11 – paragraph 1 – point f (new)

Text proposed by the Commission

Amendment

(f) the progress towards the intermediate targets set out in this Regulation.

Amendment 38

Proposal for a regulation

Article 1 – paragraph 1 – point 3 (new)

Regulation (EU) 2021/1119

Article 11 – paragraph 1 – point g (new)

Text proposed by the Commission

Amendment

(g) the flexibility for Member States to use high-quality international credits to fulfil up to 5% of their post-2030 targets and efforts in sectors that are not regulated in the EU ETS.

Amendment 39

Proposal for a regulation

Article 1 – paragraph 1 – point 4 (new)

Regulation (EU) 2021/1119

Article 11 – paragraph 2

Present text

Amendment

(4) In Article 11, the second paragraph is replaced by the following:

The Commission’s report may be accompanied, where appropriate, by legislative proposals to amend this Regulation.

"The Commission’s report shall be accompanied, where appropriate, by legislative proposals to revise this Regulation, including the intermediate 2040 target, and by additional measures to strengthen the initiatives concerning the enabling framework supporting the continued effective implementation of this Regulation, in line with Article 4(5), and securing EU competitiveness, prosperity and social cohesion."

(32021R1119)

Amendment 40

Proposal for a regulation

Article 1 a (new)

Text proposed by the Commission

Amendment

Article 1a

Postponement of the operation of emissions trading for buildings, road transport and additional sectors

The operation of emissions trading for buildings, road transport and additional sectors set out in Chapter IVa of Directive 2003/87 is postponed until 2028. The rules set out in Article 30(k)(2) letters (a) to (e) of Directive 2003/87 shall apply. The provisions of Article 10a(8b) of Directive 2003/87 shall apply also in 2026.

ANNEX: DECLARATION OF INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he included in his report input on matters pertaining to the subject of the file that he received, in the preparation of the report, prior to the adoption thereof in committee, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:

1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register

Svaz chemického průmyslu České republiky (Association of Chemical Industry of the Czech Republic SCHP ČR)

GasNet, s.r.o.

Union of Entrepreneurs and Employers ZPP

The European Chemical Industry Council (CEFIC)

Eurochambers (Open letter to Executive Vice President Teresa Ribera)

Fuels Europe

Centre for Transport and Energy

French Federation for waste management and environmental services (FNADE)

The Spanish Association of Wall and Floor Tile Manufacturers (ASCER)

The European Ceramic Industry Association

Federchimica (The Italian Federation of the chemical industry)

The Federation of Austrian Industries (IV)

Ocelářské unie

Odborový svaz KOVO

U. S. Steel Košice, s.r.o.

ČEZ, a.s.

Svaz průmyslu a dopravy ČR

2. Representatives of public authorities of third countries, including their diplomatic missions and embassies

UK Mission to the European Union

The list above is drawn up under the exclusive responsibility of the rapporteur.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

MINORITY POSITION

pursuant to Rule 56(4) of the Rules of Procedure

by Jacek Ozdoba

Europe is in the midst of an economic and financial crisis. The world is moving forward and developing thanks to low energy prices. Meanwhile, the European Union is at a standstill – it is losing its competitiveness, and draconian climate legislation is killing our industry. I cannot therefore support this law, which would be suicidal for Europe. Europe’s industry and economy are victims of a climate ideology being pushed by the EU institutions. Massive unemployment, human suffering, failed and depopulated cities, and bankrupt European industrial plants. This will be the outcome of the agreement concluded today by the EPP, Left and Liberal groups. The revision of the climate law spells the end for European industry and will lead to the continent’s economic subjugation to the Chinese.

5.11.2025

OPINION OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY

for the Committee on the Environment, Climate and Food Safety

on the proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2021/1119 establishing the framework for achieving climate neutrality

(COM(2025)0524 - C10-0137/2025 - 2025/0524(COD))

Rapporteur for opinion: Niels Fuglsang

SHORT JUSTIFICATION

In the Climate Law, Europe has set an ambitious target to reduce greenhouse gas emissions by at least 55% in 2030 and to have a fully decarbonised economy in 2050. Due to the current geopolitical circumstances, the importance of supporting these efforts by setting an ambitious intermediate climate target for 2040 has only increased in importance.

Ensuring that the Union stays on course for climate neutrality in 2050 is not only crucial to limit global warming to the Paris Agreement goal of 1,5°C, and avoiding irreversible tipping points, but vital to ensure competitiveness of European industries, the Union’s strategic autonomy, energy security and energy affordability for business and citizens.

Therefore, this draft legislative opinion proposes an EU-wide domestic climate target of at least 90% emission reduction by 2040 relative to 1990 levels stated as the most effective in bringing the EU to climate neutrality by 2050 by scientific experts.

Setting a domestic climate target will ensure investments are made in Europe contributing to strengthen the industrial leadership and competitiveness of European industry, strengthen the Union’s energy independence while lowering energy bills for European businesses and citizens and generating millions of jobs in Europe. Keeping the EU climate target domestic in nature also avoids the risk of watering down EU’s climate efforts when making use of international credits, as experienced earlier when international credits were used under the Kyoto Protocol where many projects failed to deliver the promised emission cuts.

Furthermore, this draft opinion provides flexibility in reaching our targets by introducing a limited role for domestic permanent removals to compensate for residual emissions from hard to abate sectors without offsetting the necessary emission reductions.

In addition, the opinion highlights crucial elements that must be reflected in relevant Union policies going forwards to reach the set targets and ensuring the Union’s competitiveness and security. This includes in particular the energy sector as clean energy is a necessity for other sectors to decarbonise, with electrification being a key driver for decarbonization. In this regard, the significant expansion and modernisation of grids and interconnectors are necessary. It also recognising the key role of energy efficiency measures for decarbonisation efforts and underlines that the best available cost-effective, safe and scalable clean technologies must be reflected.

The Committee on Industry, Research and Energy submits the following to the Committee on the Environment, Climate and Food Safety, as the committee responsible:

AMENDMENTS

Amendment 1

Proposal for a regulation

Recital 1

Text proposed by the Commission

Amendment

(1) The outcome of the first global stocktake3 under the Paris Agreement4 , concluded at the United Nations Climate Change Conference at the end of 2023, found that parties are putting increasingly effective climate policies in place, but that urgent additional action is needed to put the world fully on track for achieving the goals of the Paris Agreement.

_________________

3 Decision 1/CMA.5.

4 OJ L 282, 19.10.2016, p. 4.

Amendment 2

Proposal for a regulation

Recital 4

Text proposed by the Commission

Amendment

(4) In order to propose the Union 2040 climate target, the Commission considered the best available and most recent scientific evidence, including the latest reports of the Intergovernmental Panel on Climate Change (IPCC) and the Advisory Board; the social, economic and environmental impacts, including the costs of inaction, especially acknowledging that, according to the report by the European Environment Agency of 26 June 2025 entitled ‘Renewables, electrification and flexibility for a competitive EU energy system transformation by 2030’, in 2022 the Union imported 98% of its oil and gas and that high energy prices undermine competitiveness and increase the cost of living for citizens ; the need to ensure a just and socially fair transition for all; cost-effectiveness and economic efficiency; principles of free market and competitiveness of the Union’s economy, in particular small and medium-sized enterprises mid-caps, and start-ups notably to avoid disproportionate administrative burden while enabling opportunities of the clean transition and sectors most exposed to carbon leakage; best available cost-effective, safe and scalable technologies; energy efficiency and the ‘energy efficiency first’ principle energy affordability and security of supply; fairness and solidarity between and within Member States; the need to adapt to climate change the need to ensure environmental effectiveness and progression over time; the need to maintain, manage and enhance natural sinks in the long term and protect and restore biodiversity, including in the marine environment; investment needs and opportunities; international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement and the ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC); existing information on the projected indicative Union greenhouse gas budget for the 2030-2050 period.

Amendment 3

Proposal for a regulation

Recital 5

Text proposed by the Commission

Amendment

energy technologies), and organise a strategic dialogue on the post-2030 framework with all relevant sectors. With the Clean Industrial Deal, the EU is putting in place the conditions for a successful transition, focussing on both decarbonisation and industrial renewal, including support mechanisms for European industry, better access to public and private finance, a global level playing field, and clear enabling conditions for the uptake and scaling of clean technologies, in order to strengthen industrial competitiveness and innovation in the EU.

(5) In order to achieve the 2040 climate target it is essential to, inter alia, fully implement the agreed 2030 framework, predictability and regulatory certainty for investors; boost electrification as it is the key driver for decarbonisation, ensure a well-functioning electricity grid requiring significant expansion and modernisation of grids and interconnectors, enhance energy efficiency efforts as energy savings, in line with the Commission communication of 18 May 2022 entitled ‘REPowerEU Plan’, is the cheapest and quickest way to reduce emissions; ensure and provide support to strengthen the competitiveness and resilience of the European industry, ensure transition pathways based on best available cost-effective, safe and rapidly scalable technologies, set a greater focus on a just transition that leaves no one behind, ensure fair competition with international partners, decarbonise the energy system with all zero and low carbon energy solutions (including renewables, nuclear, energy efficiency, storage, CCS, CCU, carbon removals, geothermal and hydro-energy, and all other current and future net-zero energy), and organise a strategic dialogue on the post-2030 framework with all relevant sectors. With the Clean Industrial Deal, the EU is putting in place the conditions for a successful transition, focussing on both decarbonisation and industrial renewal, including support mechanisms for European industry and their business case accompanied by proposed measures under Clean Industrial Deal, circular economy, better access to public and private finance, a global level playing field covering efficient application of the CBAM and measures to tackle risks of carbon leakage in exports, and clear enabling conditions for the uptake and scaling of clean technologies, including through the creation of lead markets in order to strengthen industrial competitiveness and innovation in the EU while acknowledging the current geopolitical situation.

Amendment 4

Proposal for a regulation

Recital 7

Text proposed by the Commission

Amendment

(7) Priority should be given to domestic reductions in greenhouse gas emissions, complementing it by increased domestic removals and biogenic sequestration, including through both natural and technological solutions. The land-use, land-use change and forestry sector plays a significant role in a sustainable and circular bioeconomy by providing long-term climate benefits, supporting the EU’s clean transition, and reducing dependence on fossil based raw materials, in the future taking into account its substitution effects. In the development of the post-2030 policy package, due attention should be paid to the contribution of gross emission reductions versus natural and technological removals. With respect to natural sinks, their yearly variability, the effects of climate change, the uncertainties stemming from environmental changes, the impact of wood harvest, the absence of commensurability between Member States, and the considerable difficulties in calculation and monitoring should be considered. Nature-based and industrial removals play an increasing role in the Union’s economy in the next decades, in view of the need to balance greenhouse gas emissions and removals at the latest by 2050 and negative emissions thereafter. Incentives will be developed on the occasion of the review of Directive 2003/87/EC of the European Parliament and of the Council7 in 2026, where the Commission envisages to provide for domestic permanent carbon removals in the system for greenhouse gas emission allowance trading within the Union (‘EU ETS’) to compensate for residual emissions from hard to abate sectors without undermining the integrity of EU ETS.

_________________

Amendment 5

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8) The Union has in place a regulatory framework to achieve the 2030 climate target. The legislation implementing that target consists, inter alia, of Directive 2003/87/EC, which establishes the EU ETS, Regulation (EU) 2018/842 of the European Parliament and of the Council8 , which introduced national targets for reduction of greenhouse gas emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council9 , which sets net carbon removal targets for the land use sector, the Directive (EU) 2018/2001, on the promotion of the use of energy from renewable sources, and the Directive (EU) 2023/1791, on energy efficiency. The Commission should assess how the relevant Union legislation would need to be amended in order to achieve the 2040 climate target. When designing the future architecture, the Commission should prepare detailed impact assessments, including the impacts on competitiveness and small and medium enterprises, and consider taking necessary measures, including legislative proposals as appropriate. A number of elements to facilitate the achievement of the 2040 target should be appropriately reflected, including a potential limited contribution towards the 2040 target of permanent high-quality international credits under Article 6(4) of the Paris Agreement, in the second part of the 2030-2040 decade, in line with accounting rules of the Paris Agreement; the role of domestic permanent removals (Biogenic emissions Capture with Carbon Storage (BioCCS) and Direct Air Capture with Carbon Storage (DACCS)) while maintaining the integrity of the EU ETS; enhanced flexibility across sectors provided that adequate cost-effective objectives are met. In order to assess the social, economic particularly mitigating the impact on households’ purchasing power and on companies’ competitiveness, and environmental impacts, the future architecture should be based on robust impact assessments. The future architecture should also foster convergence while taking into account fairness and Member States’ national circumstances and specificities, including those of islands and outermost regions.

_________________

Amendment 6

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119 –

Article 4 – paragraph 4 – subparagraph 3 – point a

Text proposed by the Commission

Amendment

(a) Starting from 2036, a possible limited contribution towards the 2040 target of permanent high-quality international credits under Article 6(4) of the Paris Agreement equivalent to the amount of up to 3% of 1990 EU net emissions cumulatively over the 2036-2040 period, supporting the EU and third countries in achieving net greenhouse gas reduction trajectories compatible with the Paris Agreement objective to hold the increase in the global average temperature to well below 2 °C and pursue efforts to limit the temperature increase to 1,5 °C above pre-industrial levels - the origin, quality criteria and other conditions concerning the acquisition and use of any such credits shall be regulated in Union law, without undermining the integrity of EU ETS; a robust Monitoring, Reporting and Verification (MRV) system shall be established to ensure such credits are credible and of high-quality;

Amendment 7

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point b

Text proposed by the Commission

Amendment

(b) the role of domestic permanent removals under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) to compensate for residual emissions from hard to abate sectors;

(b) the role of domestic permanent removals based on CCS technologies under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) to compensate for residual emissions from hard to abate sectors while ensuring such removals do not offset necessary emission reductions;

Amendment 8

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point c

Text proposed by the Commission

Amendment

(c) enhanced flexibility across sectors, to support the achievement of targets in a cost-effective way provided that adequate cost-effective objectives are met;

Amendment 9

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point c a (new)

Text proposed by the Commission

Amendment

(c a) the necessity to modernise and develop infrastructure for electricity, hydrogen, as well as Carbon Transport, Storage and Utilization, of cross-border and domestic nature;

Amendment 10

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point c b (new)

Text proposed by the Commission

Amendment

(c b) the necessity of utilizing and scaling-up hydrogen in the transition to climate neutrality as well as market framework for hydrogen transportation, storage and usage;

Amendment 11

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point c c (new)

Text proposed by the Commission

Amendment

(c c) the requirement to make the transition to climate neutrality predictable and feasible for industry, notably through avoiding at all cost a strengthening of the Linear Reduction Factor of sectors covered under Directive 2003/87/EC Annex I (“EU ETS”);

Amendment 12

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point c d (new)

Text proposed by the Commission

Amendment

(c d) the necessity of an effective and workable CBAM in the context of phasing out the free allowances in the EU emissions trading system;

Amendment 13

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point d

Text proposed by the Commission

Amendment

(d) Member States post-2030 targets and efforts should reflect cost-efficiency and solidarity, in light of national circumstances;

(d) Member States post-2030 targets and efforts should reflect cost-efficiency, affordability, and solidarity, in light of national circumstances;

Amendment 14

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point g

Text proposed by the Commission

Amendment

(g) the costs of inaction and the benefits of action over mid-term to long-term;

(g) the costs of inaction and the benefits of action over mid-term to long-term, including on sectoral and Member State level;

Amendment 15

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point i

Text proposed by the Commission

Amendment

(i) simplification, technology neutrality, cost-effectiveness, economic efficiency, and economic security;

(i) simplification in order to decrease administrative burdens, availability of mature and affordable technologies, technology neutrality, cost-effectiveness, lowering energy system costs, economic efficiency, and economic security;

Amendment 16

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point i a (new)

Text proposed by the Commission

Amendment

(i a) phase out of fossil fuels and enhancing security of supply;

Amendment 17

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point i b (new)

Text proposed by the Commission

Amendment

(i b) the need to provide regulatory stability, predictability and confidence to economic operators such as industry, investors and citizens;

Amendment 18

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point j

Text proposed by the Commission

Amendment

(j) climate action as a driver for investment and innovation;

(j) climate action as a driver for investment, innovation and increased competitiveness;

Amendment 19

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point j a (new)

Text proposed by the Commission

Amendment

(j a) circular economy and demand side measures as a driver for innovation, and reduction of greenhouse gas emissions;

Amendment 20

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point k

Text proposed by the Commission

Amendment

(k) the need to strengthen the global competitiveness and open strategic autonomy of the Union’s economy, in particular small and medium-sized enterprises, mid-caps, start-ups and industrial sectors most exposed to the risk of carbon leakage and to ensure fair competition;

Amendment 21

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point l

Text proposed by the Commission

Amendment

(l) best available cost-effective, safe and scalable technologies;

(l) best available cost-effective, safe and rapidly scalable clean technologies in order to achieve rapid, sustained and irreversible reduction of greenhouse gas emissions;

Amendment 22

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point m

Text proposed by the Commission

Amendment

(m) energy affordability, security of supply, energy efficiency and the ‘energy efficiency first’ principle;

(m) energy affordability and increased energy savings, security of supply, boosting renewables, energy efficiency and the ‘energy efficiency first’ principle;

Amendment 23

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point m a (new)

Text proposed by the Commission

Amendment

(m a) energy efficiency as a cross-cutting enabler for industrial decarbonisation and European competitiveness;

Amendment 24

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point m b (new)

Text proposed by the Commission

Amendment

(m b) advancing on electrification of industrial sectors, with completed interconnections and modernisation of grids;

Amendment 25

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point p

Text proposed by the Commission

Amendment

(p) the need to maintain, manage and enhance as appropriate natural sinks in the long term and protect and restore biodiversity and promote sustainable bioeconomy, as well as take into account uncertainties notably those linked to the impacts of climate change in the land use sector;

Amendment 26

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point q

Text proposed by the Commission

Amendment

(q) investment needs and opportunities, including access to public and private finance;

(q) investment needs and opportunities, including access to public and private finance, scaling up access to capital for the manufacturing of clean technology and promoting public and private partnerships;

Amendment 27

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point q a (new)

Text proposed by the Commission

Amendment

(q a) the increase of job creation in clean tech sectors across the Union including the need for upgrading skills;

Amendment 28

Proposal for a regulation

Article 1 – paragraph 1 – point 2 a (new)

Regulation (EU) 2021/1119

Article 11

Text proposed by the Commission

Amendment

(2 a) Article 11 is replaced by the following:

'Article 11

Review

Within six months of each global stocktake referred to in Article 14 of the Paris Agreement, the Commission shall submit a report to the European Parliament and to the Council, together with the conclusions of the assessments referred to in Articles 6 and 7 of this Regulation, on the operation of this Regulation, taking into account:

(a) the best available and most recent scientific evidence, including the latest reports of the IPCC and the Advisory Board;

(b) the necessity to assess the impact on evolution of the maturity, readiness and the level of deployment of new technologies, such as DACCS and BECCS, the volume of permanent carbon removals available for use, impacts on competitiveness of European industry, particularly SMEs, mid-caps, start-ups, impact on energy prices, energy poverty, employment changes; where assessments indicate any negative impacts, the Commission may introduce mitigating measures;

The Commission’s report may be accompanied, where appropriate, by legislative proposals to amend this Regulation.'

ANNEX: DECLARATION OF INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion declares that he included in his opinion input on matters pertaining to the subject of the file that he received, in the preparation of the opinion, prior to the adoption thereof in committee, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:

1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register

Concito

Green Power Denmark

Rådet for Grøn Omstilling

Bundesverband der Deutschen Industrie e.V (BDI)

Danish Industry

Confederation of Finnish Industries

For Irish Business

Mouvement des Entreprises de France

Confederantion of Norwegian Enterprise (NHO

Svenskt Näringsliv: Joint Industry Declaration

Permanent Representation of Denmark to the European Union

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

Amending Regulation (EU) 2021/1119 establishing the framework for achieving climate neutrality

References

COM(2025)0524 – C10-0137/2025 – 2025/0524(COD)

Committee(s) responsible

Date announced in plenary

ENVI

7.7.2025

Opinion by

Date announced in plenary

ITRE

7.7.2025

Rapporteur for the opinion

Date appointed

Niels Fuglsang

18.7.2025

Date adopted

5.11.2025

Result of final vote

–:

Members present for the final vote

Oihane Agirregoitia Martínez, Wouter Beke, Hildegard Bentele, Tom Berendsen, Michael Bloss, Barbara Bonte, Paolo Borchia, Borys Budka, Carlo Ciccioli, Raúl de la Hoz Quintano, Pilar del Castillo Vera, Matthias Ecke, Jan Farský, Sigrid Friis, Niels Fuglsang, Lina Gálvez, Alexandra Geese, Bruno Gonçalves, Nicolás González Casares, Giorgio Gori, Elisabetta Gualmini, András Gyürk, Niels Flemming Hansen, Eero Heinäluoma, Ivars Ijabs, Diana Iovanovici Şoşoacă, Adam Jarubas, Ondřej Knotek, Michał Kobosko, Ondřej Krutílek, Eszter Lakos, Morten Løkkegaard, Yannis Maniatis, Sara Matthieu, Eva Maydell, Marina Mesure, Jana Nagyová, Dan Nica, Angelika Niebler, Ville Niinistö, Aleksandar Nikolic, Mirosława Nykiel, Daniel Obajtek, Thomas Pellerin-Carlin, Pascale Piera, Virgil-Daniel Popescu, Jüri Ratas, Julie Rechagneux, Elena Sancho Murillo, Jussi Saramo, Paulius Saudargas, Benedetta Scuderi, Anthony Smith, Diego Solier, Anna Stürgkh, Beata Szydło, Dario Tamburrano, Bruno Tobback, Matej Tonin, Isabella Tovaglieri, Kris Van Dijck, Francesco Ventola, Yvan Verougstraete, Mariateresa Vivaldini, Angelika Winzig, Anna Zalewska, Nicola Zingaretti

Substitutes present for the final vote

Per Clausen, Paulo Cunha, Margarita de la Pisa Carrión, Petras Gražulis, Martin Hojsík, Jutta Paulus, Gaetano Pedulla’, Massimiliano Salini, Francesco Torselli, Dimitris Tsiodras, Brigitte van den Berg, Iuliu Winkler

Members under Rule 216(7) present for the final vote

Biljana Borzan, Daniel Caspary, Laurent Castillo, Johan Danielsson, Evin Incir, Alexander Jungbluth, Lena Schilling, Volker Schnurrbusch, Ana Vasconcelos

FINAL VOTE BY ROLL CALL BY THE COMMITTEE ASKED FOR OPINION

Key to symbols:

12.9.2025

LETTER OF THE COMMITTEE ON AGRICULTURE AND RURAL DEVELOPMENT

Mr Antonio Decaro

The Chair in her capacity as rapporteur for opinion declares under her exclusive responsibility that she did not include in her opinion input from interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from representatives of public authorities of third countries, including their diplomatic missions and embassies, to be listed in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

PROCEDURE – COMMITTEE RESPONSIBLE

Title

Amending Regulation (EU) 2021/1119 establishing the framework for achieving climate neutrality

References

COM(2025)0524 – C10-0137/2025 – 2025/0524(COD)

Date submitted to Parliament

2.7.2025

Committee(s) responsible

Date announced in plenary

ENVI

7.7.2025

Committees asked for opinions

Date announced in plenary

ITRE

7.7.2025

TRAN

8.9.2025

AGRI

8.9.2025

Not delivering opinions

Date of decision

TRAN

5.11.2025

Rapporteurs

Date appointed

Ondřej Knotek

15.7.2025

Discussed in committee

14.7.2025

4.9.2025

Date adopted

10.11.2025

Result of final vote

–:

Members present for the final vote

Christine Anderson, Vytenis Povilas Andriukaitis, Pascal Arimont, Bartosz Arłukowicz, Anja Arndt, Thomas Bajada, Barbara Bonte, Lynn Boylan, Delara Burkhardt, Jorge Buxadé Villalba, Pascal Canfin, Mohammed Chahim, Christophe Clergeau, Annalisa Corrado, Ondřej Dostál, Viktória Ferenc, Heléne Fritzon, Gerben-Jan Gerbrandy, Hanna Gronkiewicz-Waltz, Martin Günther, Esther Herranz García, Martin Hojsík, Romana Jerković, Radan Kanev, Ondřej Knotek, Peter Liese, Alessandra Moretti, Rasmus Nordqvist, Jacek Ozdoba, Jutta Paulus, Jessica Polfjärd, Silvia Sardone, Lena Schilling, Christine Schneider, Sander Smit, Susana Solís Pérez, Claudiu-Richard Târziu, Marta Temido, Ingeborg Ter Laak, Beatrice Timgren, Zala Tomašič, Dimitris Tsiodras, Ana Vasconcelos, Kristian Vigenin, Emma Wiesner, Michal Wiezik, Tiemo Wölken, Anna Zalewska

Substitutes present for the final vote

Adrian-George Axinia, Hildegard Bentele, Michael Bloss, Sebastian Everding, Sigrid Friis, Nicolás González Casares, Niels Flemming Hansen, Paolo Inselvini, Adam Jarubas, Nora Junco García, Sara Matthieu, Thomas Pellerin-Carlin, Virgil-Daniel Popescu, Antonella Sberna, Christel Schaldemose, Liesbet Sommen, Kai Tegethoff, Bruno Tobback

Members under Rule 216(7) present for the final vote

Nikola Bartůšek, Andrzej Buła, Damien Carême, Valérie Devaux, Mélanie Disdier, Siegbert Frank Droese, Marieke Ehlers, Michael Gahler, Raquel García Hermida-Van Der Walle, Hanna Gedin, Dirk Gotink, Catherine Griset, Liudas Mažylis, Javier Moreno Sánchez, Kira Marie Peter-Hansen, Arash Saeidi, Pál Szekeres, Tomas Tobé, Brigitte van den Berg, Tom Vandendriessche, Charlie Weimers

Date tabled

10.11.2025

FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE

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