Sittings · Document
On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2023/956 as regards the extension of its scope to downstream goods and anti-circumvention measures
Committee on the Environment, Climate and Food Safety · Rapporteur: Mohammed Chahim
Parliament's amended version of the Commission proposal to amend Regulation (EU) 2023/956 on the Carbon Border Adjustment Mechanism (CBAM) extends its scope to downstream goods and adds anti-circumvention rules.¶¶¶ It defines resource shuffling and abusive practices, applies default values to high-risk goods and origins, and requires importers to prove post-consumer scrap claims.¶¶¶ It makes online platforms importers for distance sales and authorised CBAM declarants, and sets a single mass-based threshold for their aggregated imports.¶¶¶ It allows temporary derogations for outermost regions, simplifies reporting for Least Developed Countries, and provides technical assistance and cooperation with third countries.¶¶¶ It deletes the provisions on removing goods from scope in serious circumstances and on carbon credits under Article 6 of the Paris Agreement.¶¶¶
Committee position. The Committee on the Environment, Climate and Food Safety proposes to amend the Commission proposal by extending the CBAM to downstream goods, adding anti-circumvention rules, defining resource shuffling and abusive practices, and deleting Article 27a on serious and unforeseen circumstances and the carbon credits provision.¶¶¶
Key points
- Extends the CBAM scope gradually to downstream products, starting with simpler value chains or established EU ETS benchmarks.¶¶
- Excludes electricity flows from third countries resulting from transmission system operators ensuring network security, balancing services and emergencies.¶¶
- Requires Memoranda of Understanding with third countries on electricity market coupling, published and updated annually.¶¶¶
- Empowers the Commission to grant temporary, product-specific derogations for operators in outermost regions more than 3 000 nautical miles from the European continent, subject to a binding transition plan.¶¶
- Defines resource shuffling and includes it in abusive practices; applies country-level default values ex ante to goods and origins at high risk.¶¶¶
- Requires importers claiming post-consumer aluminium scrap to provide verification reports and details of scrap quantity and type.¶¶
- Makes importers for distance sales, including online platforms, authorised CBAM declarants responsible for aggregated imports and surrendering certificates.¶¶¶
- Sets a single mass-based threshold for importers for distance sales and requires the Commission to assess annually whether it excludes goods representing more than 2% of embedded emissions.¶¶
- Requires the Commission to adopt implementing acts on simplified reporting for Least Developed Countries and to provide technical assistance.¶¶
- Requires the Commission to report every three years on international cooperation on carbon pricing and to engage on interoperability of carbon pricing and MRV systems.¶¶¶
- Deletes Article 27a on serious and unforeseen circumstances and the urgency procedure for delegated acts, and removes carbon credits under Article 6 of the Paris Agreement.¶¶¶
- Requires the Commission to assess the impact of the CBAM on competitiveness, indirect cost compensation options, and the inclusion of indirect emissions in further sectors.¶¶¶
Who is affected
- Importers of steel and aluminium downstream goods, who face CBAM obligations and must prove scrap claims.¶¶¶
- Online platforms and importers for distance sales, who become authorised CBAM declarants for aggregated imports.¶¶¶
- Operators in outermost regions more than 3 000 nautical miles from the European continent, who may receive temporary derogations.¶¶
- Least Developed Countries and developing countries, which receive simplified reporting and technical assistance.¶¶
- Third countries with electricity market coupling, which may conclude Memoranda of Understanding with the Commission.¶¶
Figures and deadlines
- 3 000 nautical miles: distance from the European continent for outermost regions eligible for temporary derogation.¶
- 2%: share of embedded emissions above which the mass-based threshold is assessed as undermining effectiveness.¶
- 30 April: annual deadline for the Commission to assess the mass-based threshold.¶
- 31 December: deadline for repayment for repurchased CBAM certificates.¶
- five years: period for which delegated powers are conferred on the Commission.¶
- two months: period for Parliament or Council to object to a delegated act, extendable by two months.¶
Legal basis: Article 294(2) and Article 192(1) of the Treaty on the Functioning of the European Union.¶
Written by a language model from the full text only; every figure comes from the text and ¶ links to the paragraph it rests on. Check the text itself before relying on it.