Sittings · Document

Draft report (COM(2025)0524 – C100137/2025 – 2025/0524(COD)) 2025-09-09

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

Committee on the Environment, Climate and Food Safety

AM_Com_LegReport

Amendment 172

Anna Zalewska

on behalf of the ECR Group

Aurelijus Veryga, Beatrice Timgren, Charlie Weimers, Sebastian Tynkkynen, Jacek Ozdoba, Dick Erixon, Michele Picaro, Nicola Procaccini, Pietro Fiocchi, Stefano Cavedagna, Antonella Sberna, Paolo Inselvini, Sergio Berlato, Alexandr Vondra

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – 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:

When proposing the Union indicative 2040 climate target in accordance with Article 4 paragraph 3, the Commission shall ensure that the following elements are appropriately reflected in the legislative proposals in order to strengthen the enabling framework to ensure that conditions are in place to support European industry and citizens throughout the transition:

Or. en

Justification

Any possible future intermediate target for 2040 should remain indicative.

Amendment 173

Alexandr Vondra

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – introductory part

Text proposed by the Commission

Amendment

Within the framework of the review of this Regulation, the Commission shall ensure that the following elements are appropriately reflected in the legislative proposals:

Or. en

Amendment 174

Ondřej Knotek, Silvia Sardone, Anne-Sophie Frigout, Viktória Ferenc, Jana Nagyová, Filip Turek, Marie-Luce Brasier-Clain, Roberto Vannacci, Barbara Bonte

on behalf of the PfE Group

Jorge Buxadé Villalba, Mathilde Androuët

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – introductory part

Text proposed by the Commission

Amendment

Within the framework of the review referred to in the first subparagraph, the Commission shall ensure that the following elements are appropriately reflected in the legislative proposals:

Or. en

Amendment 175

Lena Schilling

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – 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 targets set out in paragraph 3 of this Article, the Commission shall consider the following elements:

Or. en

Justification

To align with legal drafting rules.

Amendment 176

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – introductory part

Text proposed by the Commission

Amendment

When implementing the Union’s climate targets and proposing the net negative emissions target as well as any subsequent targets and updates to the European Union’s nationally determined contributions under the Paris Agreement in accordance with paragraph 3, the Commission shall consider the following:

Or. en

Amendment 177

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau, Lynn Boylan

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – introductory part

Text proposed by the Commission

Amendment

When implementing the Union’s climate targets and proposing the net negative emissions target as well as any subsequent targets and updates to the Union’s nationally determined contributions under the Paris Agreement in accordance with paragraph 3, the Commission shall consider the following:

Or. en

Justification

It is an inappropriate approach for the Commission's hands to be tied in relation to the specific content of future legislative proposals, rather, the approach of specifying the considerations the Commission must give due regard to, and consider notably in the impact assessments, would be in line with the original Climate Law Art 4 approach and would make most sense here.

Amendment 178

Gerben-Jan Gerbrandy, Stine Bosse, Emma Wiesner, Anna Stürgkh, Pascal Canfin

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – introductory part

Text proposed by the Commission

Amendment

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

Or. en

Amendment 179

Pascal Canfin

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – 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 reflect that the following elements in the legislative proposals:

Or. en

Amendment 180

Javi López, Tiemo Wölken, Mohammed Chahim, Annalisa Corrado, César Luena, Nicolás González Casares, Elena Sancho Murillo, Marta Temido, Bruno Tobback, Thomas Pellerin-Carlin, Thomas Bajada

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

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

Or. en

Amendment 181

Galato Alexandraki, Emmanouil Fragkos

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 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;

deleted

Or. el

Justification

Deletes the option of using international credits towards the 2040 target, prioritising real emission reductions within the EU and avoiding risks of double counting.

Amendment 182

Javi López, Tiemo Wölken, Mohammed Chahim, Annalisa Corrado, César Luena, Nicolás González Casares, Elena Sancho Murillo, Marta Temido, Bruno Tobback, Thomas Pellerin-Carlin, Thomas Bajada, Heléne Fritzon

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 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;

deleted

Or. en

Amendment 183

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau, Lynn Boylan

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 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;

deleted

Or. en

Justification

Opening the door to international carbon credits goes against the domestic nature of the EU’s 2040 climate target. The EU’s own scientific advisors warned against using Article 6 carbon credits. Moreover, the Commission has departed from its own impact assessment, which included no analysis of the possible role of international carbon credits. This means the EU is prematurely opening up this possibility, and it appears driven by hopes of accessing cheap credits rather than being grounded in concrete analysis. It sets a bad signal internationally that the EU is no longer pursuing a domestic decarbonisation target and invites other Parties to do the same and weaken their NDCs.

Amendment 184

Ondřej Knotek, Silvia Sardone, Anne-Sophie Frigout, Viktória Ferenc, Jana Nagyová, Filip Turek, Marie-Luce Brasier-Clain, Roberto Vannacci, Barbara Bonte

on behalf of the PfE Group

Jorge Buxadé Villalba, Mathilde Androuët

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 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;

deleted

Or. en

Amendment 185

Lena Schilling

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 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;

deleted

Or. en

Justification

The Commission's 2040 Impact Assessment shows that domestically reducing emissions by 90-95% by 2040 is both feasible and beneficial for Europe's economy. Introducing Article 6 credits would undermine the fairness of the Union's contribution to the Paris Agreement, divert essential financial resources from the necessary transformation of the EU’s economy, including investments in infrastructure, skills and innovation, miss vital opportunities to create jobs in Europe and to reinforce Europe's position in global clean tech leadership, as highlighted by the ESABCC.

Amendment 186

Emma Wiesner

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 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;

deleted

Or. en

Amendment 187

Gerben-Jan Gerbrandy, Stine Bosse, Anna Stürgkh

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 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, the Union may acquire, as a possible limited contribution towards the 2040 target, an amount of high-quality international credits under Article 6.4 of the Paris Agreement corresponding to no more than 3% of 1990 EU net emissions to be used cumulatively over the 2036-2040 period; such credits shall represent permanent removals and shall support 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, in line with the accounting rules of the Paris Agreement;

the international credits shall serve as a safety reserve and may be used for compliance with the Union 2040 climate target if Member States otherwise fail to achieve their 2040 target. These international credits shall not play a role for compliance in the EU ETS and shall not affect the ETS allowance cap;

the Commission shall as appropriate present a legislative proposal setting out the quality criteria for the eligibility of those credits and the conditions for their use towards the 2040 target. These conditions shall be kept under review to reflect developments at Union and international level. That proposal shall also define the rules for the purchase of such credits by the Commission;

the eligibility criteria mentioned in the first sub-paragraph shall ensure that the credits are based on credible and transformative activities and are subject to robust safeguards ensuring integrity, avoidance of double counting, additionality, permanence of reductions, transparent governance, strong monitoring, reporting and verification methodologies, as well as economic, social and environmental co-benefits and human rights safeguards; an agreement with concerned third countries on equitable sharing of the mitigation benefits of 50 % of international credits will precede the use of any such credits;

the benefits and risks will be assessed by the Commission in an impact assessment, which shall include: the estimated cumulative cost of the use of international credits; its impact on redirecting investments in emission reduction within the Union towards third countries; the effect on competitiveness; methodologies that ensure that the removal benefit generated by these credits is genuine, measurable, verifiable, additional and permanent; and that the eligibility criteria mentioned in the previous sub-paragraph are met; alignment with the Paris Agreement objectives to limit the temperature increase to 1,5º C above pre-industrial levels.

Or. en

Amendment 188

Sirpa Pietikäinen

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 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, a possible limited contribution beyond the domestic 2040 target of high-quality international permanent removals under Article 6 of the Paris Agreement of 3% of 1990 EU net emissions supporting the EU and third countries in achieving global 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; due to the uncertainties of the international credits, the permanent removals shall be equivalent to at least the double of the carbon emitted;

Or. en

Amendment 189

Pascal Canfin

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 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 2031, 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 and the Commission shall act as a central buyer of such credits.

The credits referred in the above paragraph shall not be used for compliance in the EU ETS.

Or. en

Amendment 190

Radan Kanev

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 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, 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. The acquisition of such credits shall exclude those issued in third countries whose industries directly compete with strategic sectors of the Union;

Or. en

Amendment 191

Stefano Cavedagna, Nicola Procaccini, Antonella Sberna, Pietro Fiocchi, Paolo Inselvini, Michele Picaro, Sergio Berlato

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 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 2033, a possible limited contribution towards the 2040 target of high-quality international credits under Article 6 of the Paris Agreement of 5% of 1990 EU net emissions, subject to robust Union law on integrity and additionality; a targeted, time-limited pilot shall allow installations in hard-to-abate sectors to use such credits for compliance for up to 2 % of verified emissions, without undermining ETS scarcity.

Or. en

Justification

High-integrity international credits can provide cost-effective flexibility for hard-to-abate sectors, especially in the medium term when technological solutions are not yet available at scale. The Commission proposal postpones their limited use to 2036 and restricts the volume to 3%. This is unnecessarily late and narrow. Bringing forward the start date to 2033, raising the cap to 5%, and allowing a small compliance share within the ETS for sectors facing unavoidable residual emissions will reduce transition costs without undermining the EU’s overall climate integrity.

Amendment 192

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

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 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 2031, a contribution towards the 2040 target of high-quality international credits under Article 6 of the Paris Agreement of 10 % 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; these units shall be used, under certain conditions, by Member States and operators within the ESR sectors and EU ETS to offset residual emissions;

Or. en

Justification

The proposed level of 3% flexibility is too low, and the year 2036 is too late to maintain market stability and liquidity and to prevent price volatility/fluctuations. Use of international credits already early on in the next decade in the EU ETS should play a key supporting role, to ensure back-up measures are in place.

Amendment 193

Alexandr Vondra

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 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) a possible limited contribution towards the EU 2050 climate target of high-quality international credits under Article 6 of the Paris Agreement of 8% of 1990 EU net emissions supporting the EU and third countries in achieving net greenhouse gas reduction trajectories compatible with the Paris Agreement based on a detailed impact assessment, high quality criteria and all relevant conditions, in particular financial conditions, concerning the acquisition and use of any such credits;

Or. en

Amendment 194

Daniel Buda

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 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, 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, aimed chiefly at supporting the Member States and industries in transition and, secondarily, 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;

Or. ro

Amendment 195

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen

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 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 2031, a limited annual contribution towards the combined ceiling of greenhouse gas emissions 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 according to subparagraph 4 of this paragraph;

Or. en

Justification

For the international discussion, the NDC in 2035 is even more important than the 2040 target. To enable Member States to accept an ambitious NDC, the flexibility should start as soon as possible. This will also improve the cost efficiency and enable the European Union to generate support for effective measures in third countries.

Amendment 196

Ana Vasconcelos, Anna Stürgkh

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 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, the Union may acquire high-quality, permanent international credits under Article 6 of the Paris Agreement of 3% of 1990 EU net emissions to be used cumulatively over the 2036-2040 period. The credits should also support 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;

Or. en

Amendment 197

Katri Kulmuni, Christine Singer, Jeannette Baljeu

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 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, 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, and such credits shall not play a role for compliance in the EU ETS;

Or. en

Amendment 198

Sakis Arnaoutoglou

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 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, the use of international credits shall be strictly limited, fully additional, verifiable, and only as a complement to domestic reductions, with a maximum contribution not exceeding 1 % 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;

Or. en

Amendment 199

Andreas Glück, Olivier Chastel

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 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 2030, a possible limited contribution towards the 2040 target of high-quality international credits under Article 6 of the Paris Agreement of 5 % 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;

Or. en

Justification

The use of international credits is highly welcome as CO2 abatement costs are much lower in many countries around the world compared to the EU. Thus, the process should already start before 2036 and account for maximum 5% of the EU´s 1990 GHG emissions.

Amendment 200

Stefano Cavedagna, Nicola Procaccini, Antonella Sberna, Pietro Fiocchi, Paolo Inselvini, Michele Picaro, Sergio Berlato

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(aa) the Union’s 2040 climate target shall only be defined following a comprehensive assessment, after 2030, of:

(i) the effective achievement of the 2030 targets (Fit for 55);

(ii) the preservation of a sufficient level of manufacturing activity within the Union, with special attention to energy-intensive and hard-to-abate sectors;

(iii) the operational readiness of key components of EU climate policy, including renewable and low-carbon hydrogen, carbon capture and storage (CCS) with adequate transport infrastructure, and the market viability of low-carbon products.

Or. en

Justification

The Commission’s 2040 proposal lacks a dedicated impact assessment and disregards the uncertainty of technological and industrial developments. A review after 2030 ensures a realistic and evidence-based approach

Amendment 201

Ana Vasconcelos, Katri Kulmuni, Anna Stürgkh

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(aa) the origin, quality criteria and other conditions concerning the acquisition and use of international credits shall be regulated in Union law, in line with accounting rules of the Paris Agreement; such credits shall be subject to robust safeguards ensuring integrity, avoidance of double counting, additionality, permanence of reductions, transparent governance, and credible verification methodologies; the use of international credits shall not undermine the EU ETS integrity and credibility.

Or. en

Amendment 202

Jacek Ozdoba

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(aa) the need to tackle high energy prices and high production costs in the Union, through the revision of the Directive 2003/87/EC in order to reduce financial burden on the industries, reduce EU ETS allowances prices and its volatility on the market; introduce effective price control mechanisms to limit EU ETS allowances price fluctuations;

Or. en

Justification

The Directive 2003/87/EC (EU ETS directive) shall be revised in order to ensure lower energy prices for the industry. In this context, effective provisions should be introduced in order to limit the ETS allowances prices variations and fluctuations on the market. Effective price control measures should be considered to limit speculations on the market.

Amendment 203

Jessica Polfjärd

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(aa) the overarching priority of phasing out fossil emissions through improved circularity and accelerated substitution of fossil-based energy and materials, which also should be reflected and quantified in the NECPs

Or. en

Amendment 204

Danuše Nerudová

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(aa) the role of zero and low carbon energy sources, including renewable energy, nuclear energy, energy storage, CCS, CCU, and other net-zero energy technologies;

Or. en

Justification

The current proposal leaves some of these crucial elements in the recital and in addition they are less accurately worded. If the recital refers to the fact that it is essential to "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)", the legislative proposal should not omit some of these elements in the operating paragraphs related to the elements that are to be reflected by the Commission in legislative proposals while directly listing others. The reference to technology neutrality in 4 (i) is by itself too general.

Amendment 205

Anna Zalewska

on behalf of the ECR Group

Aurelijus Veryga, Jacek Ozdoba, Michele Picaro, Nicola Procaccini, Pietro Fiocchi, Stefano Cavedagna, Antonella Sberna, Paolo Inselvini, Sergio Berlato, Alexandr Vondra

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ab) the need to strengthen the competitiveness of the Union's economy and to address the issue of high production costs in Europe, which exacerbates the risk of carbon leakage, including through the revision of the Directive 2003/87/EC (EU ETS Directive), which shall aim to ensure continued access to free allowances for the industry, introduce structural changes to the functioning of the Market Stability Reserve (MSR) to enhance market flexibility; address the need for the continued and increased Modernisation Fund to support Member States in the energy transition;

Or. en

Justification

According to Draghi's report, the Union’s economy faces significant challenges related to high production costs and high energy costs, which place European industries at a competitive disadvantage compared to international counterparts. In order to prevent carbon leakage, the competitiveness of the Union's economy should be strengthened. The revision of the EU ETS directive is necessary to address these challenges, such as phase out of free allowances for the industry.

Amendment 206

Ana Vasconcelos, Anna Stürgkh

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraphs 4 – subparagraph 3 – point a b (new)

Text proposed by the Commission

Amendment

(ab) the Commission, assisted by the European Scientific Advisory Board on Climate Change (the ‘Advisory Board’), shall adopt implementing acts to set out the detailed quality criteria and eligibility conditions before such credits can be used for compliance with Union targets;

Or. en

Amendment 207

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau, Lynn Boylan

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;

deleted

Or. en

Justification

According to recently published research, the EU ETS does not require the inclusion of carbon removals until at least 2036. As confirmed by Sandbag, if emissions reductions by covered sectors take place in line with the S3 scenario in the 2040 target Impact Assessment, there would still be a surplus of 157m EUAs in 2040. Therefore, CDR integration is not technically necessary for the market to function up to 2040.Even after 2036, if sufficient rules are in place to only permit high quality permanent removals it is highly unlikely that from 2035 onwards, a volume of these credits will be available at a date that would address a shortage of EUA permits in the ETS. To develop high-quality, permanent removals without interfering with emissions reduction efforts, other alternatives that do not equate emissions with removals should be implemented. These include using part of the ETS revenue to fund permanent removal activities without them entering the ETS; a separate Removal Trading Scheme; and distinct national removals targets (separated from emission reduction targets).

Amendment 208

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 possibility of a limited role, as of 2036, for domestic permanent removals under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) subject to effective, additional safeguards against any negative impacts on biodiversity or natural sinks, to compensate for strictly only residual emissions from hard to abate sectors; for the purposes of this Regulation, what is understood and calculated as residual emissions should be regularly reviewed, at intervals of no greater than 5 years, subsequently in consultation with the Advisory Board, taking into account criteria of technological availability and social necessity;

Or. en

Amendment 209

Gerben-Jan Gerbrandy, Stine Bosse, Emma Wiesner, Anna Stürgkh

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 to compensate for residual emissions from hard to abate sectors, including the possible role of domestic permanent removals under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’), or the creation of a separate removal trading system or other appropriate policy mechanisms to account and incentivise such removals, in line with the review of Directive 2003/87/EC. The review should take into account inter alia the impact of energy-intensive permanent carbon removal activities on electrification of other sectors and the impact on the ETS trajectory;

Or. en

Amendment 210

Sirpa Pietikäinen

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) by 12 months after entry into force of this Regulation, the Commission shall adopt a dedicated implementing strategy for the development and scale-up of domestic, sustainable permanent carbon removals, reflecting sustainability, planetary boundaries, and justice, in view of achieving the permanent carbon removals target set in Article 4 of this Regulation;

Or. en

Amendment 211

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

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 under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) to compensate for residual emissions from, inter alia, hard to abate sectors; these units shall be used, under certain conditions, by Member States and operators within the ESR sectors and EU ETS to offset residual emissions.

Or. en

Justification

expanding the use of domestic removals to EU ETS and ESR sectors will help in developing of the market and speed up the deployment of new technologies

Amendment 212

Ana Vasconcelos, Anna Stürgkh

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 under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) to compensate for residual emissions from hard to abate sectors, in line with the impact assessment undertaken in the context of the revision of Directive 2023/959 amending Directive 2003/87/EC and Decision (EU) 2015/1814;

Or. en

Amendment 213

Olivier Chastel, Sophie Wilmès, Benoit Cassart, Jeannette Baljeu, Christine Singer

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 under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) to compensate for residual emissions from hard to abate sectors while fostering price transparency and previsibility and mitigating the impact on households’ purchasing power and on companies’ competitiveness;

Or. en

Amendment 214

Alexandr Vondra

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 under the greenhouse gas emission allowance trading system within the Union (‘EU ETS/EU ETS2’) to compensate for residual emissions, in particular the economic and social impact of those systems;

Or. en

Amendment 215

Lídia Pereira, Peter Liese, Niels Flemming Hansen, Dimitris Tsiodras, Danuše Nerudová, Radan Kanev

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 accounting of emission reductions achieved by domestic permanent removals under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) no later than 2028 to compensate for residual emissions from hard to abate sectors as well as incentives for carbon capture and utilization;

Or. en

Amendment 216

Daniel Buda

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 under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) to compensate for residual emissions from hard to abate sectors, bearing in mind also the risks and uncertainties associated with the land sector;

Or. ro

Amendment 217

Lena Schilling

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – third 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 fossil fuels producers and of major emitters in financing, as of 2036, domestic permanent removals through Union-based projects in Direct Air Carbon Capture and Storage to compensate for residual emissions from sources which are hard to abate;

Or. en

Justification

Several options are being envisaged to contribute to the financing of permanent carbon removals within the Union. The benefits and risks of each option should be properly assessed.

Amendment 218

Andreas Glück, Olivier Chastel

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 under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’);

Or. en

Justification

Negative emissions should not only be able to compensate for residual emissions from hard to abate sectors. Especially in the ramp-up phase, an open framework is needed.

Amendment 219

Ondřej Knotek, Silvia Sardone, Anne-Sophie Frigout, Viktória Ferenc, Jana Nagyová, Filip Turek, Marie-Luce Brasier-Clain, Roberto Vannacci, Barbara Bonte

on behalf of the PfE Group

Jorge Buxadé Villalba, Mathilde Androuët

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraphs 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) as long as this law is in force, the role of domestic permanent removals under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) is to compensate for emissions;

Or. en

Amendment 220

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ba) starting from 2031, the inclusion of a limited number of high-quality international credits under Article 6 of the Paris Agreement under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) to compensate for residual emissions from hard to abate sectors - the origin, quality criteria and other conditions concerning the acquisition and use of any of such credits shall be regulated in Union law according to subparagraph 4 of this paragraph;

Or. en

Justification

For the international discussion, the NDC in 2035 is even more important than the 2040 target. To enable member states to accept an ambitious NDC, the flexibility should start as soon as possible. This will also improve the cost efficiency and enable the European Union to generate support for effective measures in third countries.

Amendment 221

Stefano Cavedagna, Nicola Procaccini, Antonella Sberna, Pietro Fiocchi, Paolo Inselvini, Michele Picaro, Sergio Berlato

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ba) the contribution of bio-based and circular products, polymers, and chemicals derived from biomass and/or secondary raw materials shall be recognized and accounted for in the achievement of the Union’s climate objectives;

Or. en

Amendment 222

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen, Danuše Nerudová, Radan Kanev

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(bb) The origin, quality criteria and other conditions concerning the acquisition and use of any international carbon credits from partner countries whose climate targets and policies are compatible with the targets of the Paris Agreement as referred to under points (a) and (ba) shall be regulated in Union law; to this end, the Commission should make a proposal by 2027 to the Council and the Parliament establishing robust safeguards to uphold the environmental integrity and credibility of the Union’s climate objectives, based on the criteria and standards set out under the latest UNFCCC decisions on Article 6 of the Paris Agreement, ensuring that emission reductions are genuine, measurable and verifiable, additional to legally required emissions reductions, transparent, free from double counting and contribute to global emissions reductions consistent with the goals of the Paris Agreement.

International carbon credits from third countries shall be included only if they meet the quality conditions set out by that Union act and there is the realistic assumption that the projects can be implemented by the third countries themselves. In any case, lists of admissible projects should include technical sinks that align with Article 6 of the Paris Agreement or are included under Regulation (EU) 2024/3012 and carbon capture and storage (CCS) projects in hard-to-abate sectors;

Or. en

Amendment 223

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen, Radan Kanev

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(bc) 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”) but in contrary, considering additional options on top of the inclusion of negative emissions in the EU ETS in order to ensure that the currently foreseen phase out of allowances in 2039 in the ETS1 is avoided;

Or. en

Amendment 224

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau, Lynn Boylan

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

deleted

Or. en

Justification

While cross-sectoral flexibility may provide short-term cost efficiencies, it creates significant risks for long-term decarbonisation. Sectors that are inherently more difficult to decarbonise will defer action, making it substantially harder to achieve sectoral targets later due to delayed implementation. Sectors need clear signals and planned decarbonisation - this should not be made unpredictable with exceptionality seeking.

Amendment 225

Emma Wiesner

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

deleted

Or. en

Amendment 226

Lena Schilling

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

deleted

Or. en

Justification

As mentioned in recital 10 of Regulation (EU) 2021/1119, achieving climate neutrality should require a contribution from all economic sectors for which emissions or removals of greenhouse gases are regulated in Union law. Introducing enhanced flexibility across sectors to meet the EU 2040 climate target means that these sectors will have to reduce their emissions faster after 2040 to ensure that the Union's climate-neutrality objective is met, which is likely to be more costly.

Amendment 227

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

deleted

Or. en

Amendment 228

Sirpa Pietikäinen

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

deleted

Or. en

Amendment 229

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

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) maximum flexibility across sectors and targets; allowing higher achievements in one sector to compensate for gaps in others in a cost-effective way. Enhanced flexibility should apply to ETS, ESR and LULUCF but should also extend to other areas like RES and Energy Efficiency; no additional targets for the LULUCF sector shall be set; Member States shall be able to use all of the removals generated in the LULUCF sector for other targets compliance purposes.

Or. en

Justification

Member States have various strengths and abilities of reductions/removals taking into account their historical industrial development and geographical and biodiversity conditions, therefore, to avoid one-size-fits-all approach they should be given the possibility of maximising flexibilities.

Amendment 230

Stefano Cavedagna, Nicola Procaccini, Antonella Sberna, Pietro Fiocchi, Paolo Inselvini, Michele Picaro, Sergio Berlato

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; in particular an excessive contribution from the ETS sectors shall be avoided not to jeopardise their competitiveness; an impact assessment targeted on energy intensive and SME - oriented sectors must be granted and specific measures ensured;

Or. en

Amendment 231

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen, Radan Kanev

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; allowing higher achievements in one sector to compensate for gaps in others in a cost-effective way, such as in the LULUCF sector;

Or. en

Amendment 232

Daniel Buda

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, while simultaneously ensuring equitability among Member States and protecting Europe’s industrial competitiveness;

Or. ro

Amendment 233

Alexandr Vondra

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) ensure capabilities of different sectors, to support the achievement of targets in a cost-effective way while avoiding additional administrative and financial burdens;

Or. en

Amendment 234

Gerben-Jan Gerbrandy, Stine Bosse, Anna Stürgkh

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) a fair contribution of all sectors to the 2040 target, while providing enhanced flexibility across sectors to support the achievement of the target;

Or. en

Amendment 235

Anna Zalewska

on behalf of the ECR Group

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) maximum flexibility across sectors, to support the achievement of targets in a cost-effective, socially acceptable and just way;

Or. en

Amendment 236

Radan Kanev

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

(ca) the necessity to assess the technological development, infrastructure and regulatory framework inherently indispensable to achieve the 2040 target, towards carbon neutrality and enabling technologies and conditions, such as, but not limited to, hydrogen, alternative fuels, alternative fuels infrastructure, grid expansion and modernisation, CCUS, CRMA targets achievement, PPA availability; the enabling technologies’ readiness shall be assessed using different variables, including market share, industrial upscale in Union and trusted partners, coefficients of price comparability with existing and traditional CO2 emitting technologies; the enabling regulatory framework shall be assessed not only by its state of adoption and national level implementation, but also effective enforcement in different Member States.

Or. en

Amendment 237

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen, Radan Kanev

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

(ca) the necessity to build-up and expand infrastructure for electricity, hydrogen, as well as Carbon Transport, Storage and Utilization, of cross-border and domestic nature, focussing mainly on high-capacity infrastructure where it is required for industrial transformation;

Or. en

Amendment 238

Seán Kelly

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

(ca) measures related to agriculture should take into account the parallel priorities of ensuring food security and the continuation of a viable and prosperous Union agriculture sector.

Or. en

Amendment 239

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen, Radan Kanev

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

(cb) the necessity of fully utilizing and scaling-up hydrogen in the transition to climate neutrality, through a pragmatic definition of Low-Carbon Fuels and Renewable Fuels of Non-Biological Origin (RFNBO) through reviews of relevant legislative files, including the Directive (EU) 2018/2001 (‘RED’), Regulation (EU) 2024/1787 (‘Methane Regulation’) and relevant delegated acts, as well as the market framework for hydrogen transportation, storage and usage;

Or. en

Amendment 240

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen, Radan Kanev

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

(cc) the requirement to include European industry as a permanent stakeholder in the legislative process of the framework and legislative proposals on the way to climate neutrality through standing, structured dialogues with affected industrial sectors, actively addressing standing bottlenecks as well as implications of future regulatory plans;

Or. en

Amendment 241

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen, Radan Kanev

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

(cd) the requirement to adopt a cost-based approach to competitiveness, by offsetting the additional costs incurred by European industry through EU ETS allowance prices and CBAM import costs through cost-offsetting in other areas, such as environmental compliance, social or restructuring costs, or taxation, complemented by a comprehensive approach to deregulation which eliminates all overlapping methodologies, rules, targets, and regulations;

Or. en

Amendment 242

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen, Radan Kanev

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(c e) define measurable key performance indicators (KPIs) on imports and Union industrial production of materials and products covered by Regulation (EU) 2023/956 (‘CBAM’) at sectorial level to assess whether CBAM has the desired effect of holding significant production volumes (compared to “Non-CBAM scenario”) of CBAM-covered goods and products in Europe, in order to gain a competitive advantage in the expected global carbon-priced markets in the long term; measure these KPIs over the first year of CBAM’s full applicability, i.e.2026; in case the desired effect cannot be measured or is accompanied by significant adverse effects, stop the phase-out of free ETS allocations;

Or. en

Amendment 243

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;

deleted

Or. en

Justification

Point d) has been moved after point r) to better align with the thematic order of the elements to be considered by the Commission.

Amendment 244

Emma Wiesner

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;

deleted

Or. en

Amendment 245

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

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 solidarity and cost-efficiency, in light of national circumstances; they shall be set in a way that ensures a fair and balanced distribution of efforts, taking into account the different capabilities and capacities of Member States and cost-effectiveness, based on the same methodology as used in Regulation (EU) 2018/842;

Or. en

Justification

Member States post-2030 targets should be determined based on the same methodology that was applied under Regulation (EU) 2018/842 and Regulation (EU) 2023/857. This approach ensured that national contributions reflected the diversity of Member States’ capacities and cost-efficiency potentials, thereby enabling a fair and balanced distribution of the overall effort in line with the principles of solidarity and cost-effectiveness.

Amendment 246

Pascal Canfin

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 foster an increased convergence of Member States commitments to strengthen the Union’s path to climate neutrality by 2050 and reflect cost-efficiency and solidarity, in light of national circumstances;

Or. en

Amendment 247

Ondřej Knotek, Silvia Sardone, Anne-Sophie Frigout, Viktória Ferenc, Jana Nagyová, Filip Turek, Marie-Luce Brasier-Clain, Roberto Vannacci, Barbara Bonte

on behalf of the PfE Group

Jorge Buxadé Villalba, Mathilde Androuët

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 and solidarity, in light of national circumstances, while focusing on maintaining competitiveness of Member States and the Union as a whole;

Or. en

Amendment 248

Daniel Buda

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 and solidarity, in light of national circumstances as well as technology neutrality, as well as their past contributions to reducing emissions;

Or. ro

Amendment 249

Alexandr Vondra

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 all economic and social impacts, in particular cost-efficiency and solidarity, in light of national circumstances;

Or. en

Amendment 250

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen, Danuše Nerudová, Radan Kanev

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 and solidarity, in light of national circumstances as well as technology neutrality;

Or. en

Amendment 251

Anna Zalewska

on behalf of the ECR Group

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 efforts should reflect cost-efficiency and solidarity, in light of different national circumstances and decarbonisation potential;

Or. en

Amendment 252

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau, Lynn Boylan

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) how Member States can best reflect cost-efficiency and solidarity in their post-2030 targets and efforts, in light of national circumstances

Or. en

Justification

The formulation of this sub-point is not right and does not fit into the chapeau. The chapeau should list the considerations that the Commission should make in the proposals for the enabling framework. The formulation of subpoint d in the Commission's proposal is incoherent with this and needs to be adapted.

Amendment 253

Daniel Buda

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point e

Text proposed by the Commission

Amendment

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

(e) the best available and most recent scientific evidence, including the latest reports of the IPCC and the Advisory Board, along with observance of the principle of technology neutrality and recognition of the role of nuclear energy and other low-carbon sources in attaining the targets;

Or. ro

Amendment 254

Ondřej Knotek, Silvia Sardone, Anne-Sophie Frigout, Viktória Ferenc, Jana Nagyová, Filip Turek, Marie-Luce Brasier-Clain, Roberto Vannacci, Barbara Bonte

on behalf of the PfE Group

Jorge Buxadé Villalba, Mathilde Androuët

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point e

Text proposed by the Commission

Amendment

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

(e) the best available and most recent scientific evidence, reports from businesses, academia and governmental bodies, including the latest reports of the IPCC and the Advisory Board;

Or. en

Amendment 255

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point e

Text proposed by the Commission

Amendment

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

(e) the best available and most recent scientific evidence, including the latest reports of the IPCC and the European Scientific Advisory Board on Climate Change;

Or. en

Amendment 256

Alexandr Vondra

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point e

Text proposed by the Commission

Amendment

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

(e) the best available and scientific evidence relevant to all sectors, in particular financial and technological feasibility;

Or. en

Amendment 257

Stefano Cavedagna, Nicola Procaccini, Antonella Sberna, Pietro Fiocchi, Paolo Inselvini, Michele Picaro, Sergio Berlato

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ea) from 2028 onwards, high-quality international emission credits, pursuant to Article 6 of the Paris Agreement, shall be eligible to contribute towards the Union’s climate objectives, under conditions defined in Union law, ensuring environmental integrity, transparency, and avoidance of double counting;

Or. en

Amendment 258

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point f

Text proposed by the Commission

Amendment

(f) the social, economic and environmental impacts;

(f) the social, environmental, geopolitical and economic impacts with particular reference to preserve Union industrial sectors competitiveness, ensuring affordable energy prices, energy security, investment needs and financing gaps, defence and military capacity building as a strategic priority; each legal proposal implementing Regulation (EU) 2021/1119 should be based on such impact assessment;

Or. en

Justification

Including the geopolitical context and external security as well as energy security as strategic priorities is essential. Global industrial and environmental policies are increasingly shaped by shifting power dynamics, supply chain vulnerabilities, and energy dependencies. In the face of growing international tensions, ensuring the security and resilience of EU industries is not only a matter of competitiveness but also of strategic autonomy and defence and military capacity building. A comprehensive policy must therefore address not only social, economic, and environmental goals, but also the ability of the EU to withstand external shocks, reduce reliance on critical resources from non-EU countries, and protect its technological and industrial sovereignty. Whole implementing framework should be based on such in depth analysis.

Amendment 259

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen, Danuše Nerudová, Radan Kanev

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point f

Text proposed by the Commission

Amendment

(f) the social, economic and environmental impacts;

(f) the social, economic, geopolitical and environmental impacts; with particular reference to preserve Union industrial sectors competitiveness, ensuring affordable energy prices, energy security, investment needs and financing gaps, defence and military capacity building as a strategic priority; each legal proposal implementing Regulation (EU) 2021/1119 should be based on an impact assessment;

Or. en

Amendment 260

Olivier Chastel, Sophie Wilmès, Benoit Cassart, Jeannette Baljeu, Christine Singer, Andreas Glück

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119/EC

Article 4 – paragraph 4 – subparagraph 3 – point f

Text proposed by the Commission

Amendment

(f) the social, economic and environmental impacts;

(f) the social, economic and environmental impacts taking into account that purchasing power and competitiveness must remain the guiding principles in the design and implementation of European climate measures;

Or. en

Amendment 261

Ana Vasconcelos, Andreas Glück, Anna Stürgkh, Jeannette Baljeu

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point f

Text proposed by the Commission

Amendment

(f) the social, economic and environmental impacts;

(f) the social, economic and environmental impacts, namely the objectives of decarbonisation and economic competitiveness;

Or. en

Amendment 262

Gerben-Jan Gerbrandy, Stine Bosse, Anna Stürgkh, Pascal Canfin

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point f

Text proposed by the Commission

Amendment

(f) the social, economic and environmental impacts;

(f) the social, economic and environmental impacts, and the ‘do no significant harm’ principle;

Or. en

Amendment 263

Anna Zalewska

on behalf of the ECR Group

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point f

Text proposed by the Commission

Amendment

(f) the social, economic and environmental impacts;

(f) the social, geopolitical, economic and environmental impacts;

Or. en

Amendment 264

Alexandr Vondra

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point f

Text proposed by the Commission

Amendment

(f) the social, economic and environmental impacts;

(f) the cumulative social, economic and environmental impacts;

Or. en

Amendment 265

Daniel Buda

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(fa) Acceptability to society of the measures promoted

Or. ro

Amendment 266

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau, Lynn Boylan

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4, paragraph 3 – subparagraph 3 – point f a (new)

Text proposed by the Commission

Amendment

(fa) the ‘do no significant harm’ principle;

Or. en

Justification

The DNSH principle is a fundamental rule of modern EU policy to ensure that environmental (and social) objectives are not undermined by other policies. It is integrated into the EU Taxonomy, the NextGenerationEU Recovery Plan and the RRF, as well as the ERDF, ESF+, JTF and InvestEU. It is appropriate to add this to the list of considerations for the Commission in designing the 2040 legislative enabling framework, along with other core principles like the energy efficiency first principle.

Amendment 267

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(fa) the ‘do no significant harm’ principle;

Or. en

Amendment 268

Daniel Buda

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(fb) recognition of the past contribution made by each Member State to reducing greenhouse gas emissions;

Or. ro

Amendment 269

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau, Lynn Boylan

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(fb) the ‘polluter pays’ principle;

Or. en

Justification

The PPP is another fundamental concept in environmental policy in EU law and internationally and should be fully considered in designing the 2040 legislative framework.

Amendment 270

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(fb) the ‘polluter pays’ principle (PPP);

Or. en

Amendment 271

Ondřej Knotek, Silvia Sardone, Anne-Sophie Frigout, Viktória Ferenc, Jana Nagyová, Filip Turek, Marie-Luce Brasier-Clain, Roberto Vannacci, Barbara Bonte

on behalf of the PfE Group

Jorge Buxadé Villalba, Mathilde Androuët

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;

deleted

Or. en

Amendment 272

Niels Flemming Hansen

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, conversely, the wide-ranging benefits of ambitious action over the medium and long term, including improved public health through lower healthcare costs, the prevention of climate-related damages, and enhanced competitiveness;

Or. en

Amendment 273

Sirpa Pietikäinen

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; using appropriate discount rates that take into account fairness among generations;

Or. en

Amendment 274

Lena Schilling

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, using appropriate discount rates that take into account fairness among generations;

Or. en

Amendment 275

Jacek Ozdoba

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; the proportionality and cost of the climate action over expected results;

Or. en

Amendment 276

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen, Danuše Nerudová, Radan Kanev

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 States level;

Or. en

Amendment 277

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ga) projected impacts of climate change, the associated risks, and the benefits of precautionary action;

Or. en

Amendment 278

Ondřej Knotek, Silvia Sardone, Anne-Sophie Frigout, Viktória Ferenc, Jana Nagyová, Filip Turek, Marie-Luce Brasier-Clain, Roberto Vannacci, Barbara Bonte

on behalf of the PfE Group

Jorge Buxadé Villalba, Mathilde Androuët

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ga) the costs of the currently foreseen transition and its impact on competitiveness, industry and jobs;

Or. en

Amendment 279

Jacek Ozdoba

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – 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 a just and socially fair transition for all and, in this context, through an urgent revision of the Directive 2003/87/EC in order to assess the socio-economic impacts on households and vulnerable and low-income households of Chapter IVa ('Emissions Trading System for Buildings, Road Transport and Additional Sectors - ETS2) in view to delete or suspend its application;

Or. en

Justification

The planned extension of the EU Emissions Trading System to transport and buildings (ETS2), set to start in 2027, poses a significant risk of substantially increasing transport and heating costs for all citizens, with disproportionate effects on low-income and vulnerable households. In light of these potential socio-economic challenges, the Commission should urgently undertake a comprehensive impact assessment focused specifically on the effects of ETS2 on these groups. Based on the findings, appropriate measures must be considered to prevent exacerbating energy poverty. If the assessment reveals adverse socio-economic impacts, the introduction of the ETS2 should be cancelled or suspended.

Amendment 280

Sakis Arnaoutoglou

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – 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 a just and socially fair transition for all, to support workers and communities most affected by decarbonisation, with specific attention to vulnerable households, regions in transition, and sectors with high employment impact;

Or. en

Amendment 281

Kristian Vigenin

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – 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 just and socially fair transition for all paying particular attention to regions, sectors, small and medium-sized enterprises, and vulnerable households affected by the transition to climate neutrality;

Or. en

Amendment 282

Daniel Buda

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – 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 a just and socially fair transition for all, taking into account in particular the protection of vulnerable consumers, the reduction of energy poverty and the social acceptability of the measures;

Or. ro

Amendment 283

Gerben-Jan Gerbrandy, Stine Bosse, Emma Wiesner, Anna Stürgkh, Pascal Canfin

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – 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 a just and socially fair transition for all, including future generations;

Or. en

Amendment 284

Ondřej Knotek, Silvia Sardone, Anne-Sophie Frigout, Viktória Ferenc, Jana Nagyová, Filip Turek, Marie-Luce Brasier-Clain, Roberto Vannacci, Barbara Bonte

on behalf of the PfE Group

Jorge Buxadé Villalba, Mathilde Androuët

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – 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 a just and socially fair environmental policy for all;

Or. en

Amendment 285

Dan-Ştefan Motreanu

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point h a

Text proposed by the Commission

Amendment

(ha) the regional and social dimension of the transition, including targeted support for coal- and carbon-intensive regions to modernise their economies, diversify employment opportunities and prevent disproportionate economic and social impacts;

Or. en

Amendment 286

Jacek Ozdoba

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point h a

Text proposed by the Commission

Amendment

(ha) the need to ensure food security and the stability of food supply in the Union, in particular through support of European agriculture production to ensure food availability and affordability;

Or. en

Amendment 287

Lena Schilling

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point h a

Text proposed by the Commission

Amendment

(ha) the need to strengthen the application of the ‘polluter pays’ principle across sectors;

Or. en

Amendment 288

Jacek Ozdoba

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point h b

Text proposed by the Commission

Amendment

(hb) ensure that all new legislation shall be accompanied by a detailed impact assessment to assess its impact on vulnerable and low-income households to ensure that it does not exacerbate energy and transport poverty;

Or. en

Amendment 289

Dan-Ştefan Motreanu

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point h b

Text proposed by the Commission

Amendment

(hb) the promotion of quality employment, reskilling and upskilling opportunities, in particular in regions and sectors most affected by the transition;

Or. en

Amendment 290

Katri Kulmuni, Christine Singer, Andreas Glück, Jeannette Baljeu

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 and decreasing administrative burden, free market principles, technology neutrality, cost-effectiveness, economic efficiency, and economic security;

Or. en

Amendment 291

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

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, technology neutrality, availability of mature and affordable technologies, cost effectiveness, economic efficiency and economic security

Or. en

Justification

It is crucial to design the future architecture for implementing ambitious climate policy goals, taking into account not only the technological neutrality criteria, but also the availability of mature technologies, in the spirit of technological realism. No target should be set established on the assumption of the deployment of non-existent or uncertain technologies. The Commission must consider the achievability of the technology, its availability to European industry, and the costs of implementation. A climate policy architecture cannot be based on experimental technologies or technologies that exist only as a concept. A TRL (Technology Readiness Level) assessment can be used to evaluate the technological readiness of solutions, with projects in the final stages of technological readiness (TRL 7–9) being considered available technologies.

Amendment 292

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau, Lynn Boylan

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) administrative simplification where helpful for citizens and SMEs, cost-effectiveness, economic efficiency, and economic security;

Or. en

Justification

Simplification should not come at any cost and should not mean deregulation. Technological neutrality is an unhelpful concept in the context of requiring urgent, systemic transformation, and it directly contradicts subpoint (l). It ignored incumbency advantage and path dependency, meaning there is no neutral playing field for 'technological neutrality'. Such an approach would not help in building the new enabling infrastructure for the green transition, which requires coordination, investment and supports to get the market up and running first. We need to choose the pathway with the highest probability of full decarbonisation, so we should be avoiding lock-in and stranded assets in technologies that are not near zero-carbon solutions. Technological neutrality also leads to investment uncertainty, without a clear picture of the direction of travel of the transition. Sending clear signals about technological choices for the best technologies de-risks private investment and accelerates innovation and drives down costs through economies of scale. Technological neutrality ignores the need to strive for technologies with co-benefits.

Amendment 293

Alexandr Vondra

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/111

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) technology neutrality principle, cost-effectiveness, economic and administrative efficiency, and economic security;

Or. en

Amendment 294

Javi López, Tiemo Wölken, Mohammed Chahim, Annalisa Corrado, César Luena, Nicolás González Casares, Elena Sancho Murillo, Marta Temido, Bruno Tobback, Thomas Pellerin-Carlin, Thomas Bajada

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, cost-effectiveness, economic efficiency, and economic security;

Or. en

Amendment 295

Sirpa Pietikäinen

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, cost-effectiveness, economic efficiency, and economic security;

Or. en

Amendment 296

Lena Schilling

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – third subparagraph – point (i)

Text proposed by the Commission

Amendment

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

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

Or. en

Justification

Clarity over which technologies are needed to meet our targets is needed and asked for by investors and other economic actors who need predictability in planning their investments.

Amendment 297

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

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

(ia) review of the existing targets and legislation in order to apply technology neutrality principle to all elements of climate policy;

Or. en

Justification

In order to achieve ambitious targets all technologies aimed to emissions reduction should be considered. It is necessary to introduce technology neutrality principle as soon as possible in all elements of climate policy to maximise the potential of decarbonisation and thus probability of achieving the goals of European climate policies

Amendment 298

Dan-Ştefan Motreanu

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point i a

Text proposed by the Commission

Amendment

(ia) the reduction of administrative and regulatory barriers to accelerate permitting and deployment of clean technologies;

Or. en

Amendment 299

Javi López, Tiemo Wölken, Mohammed Chahim, Annalisa Corrado, César Luena, Nicolás González Casares, Elena Sancho Murillo, Bruno Tobback, Thomas Pellerin-Carlin, Heléne Fritzon

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

(ia) phase-out of fossil fuels and improving the resilience of the Union’s energy supply;

Or. en

Amendment 300

Ondřej Knotek, Silvia Sardone, Anne-Sophie Frigout, Viktória Ferenc, Jana Nagyová, Filip Turek, Marie-Luce Brasier-Clain, Roberto Vannacci, Barbara Bonte

on behalf of the PfE Group

Jorge Buxadé Villalba, Mathilde Androuët

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;

deleted

Or. en

Amendment 301

Alexandr Vondra

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 possible driver for investment and innovation in accordance with recent knowledge coming from research and development;

Or. en

Amendment 302

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

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 and innovation shall include an estimate of total investment needs to meet the 2040 target, and a proposal for financing mechanisms, at Union, national and private level;

Or. en

Justification

the decision on the level of ambition shall be set basing on knowledgeable assessment of all costs. Establishment of any new legislation including targets and burdens for citizens and industries should be accompanied with sufficient financing mechanisms.

Amendment 303

Kristian Vigenin

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, socio-economic cohesion and increased competitiveness;

Or. en

Amendment 304

Katri Kulmuni, Christine Singer, Andreas Glück, Jeannette Baljeu

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 and innovation and increased competitiveness;

Or. en

Amendment 305

Ana Vasconcelos, Andreas Glück, Katri Kulmuni, Anna Stürgkh, Jeannette Baljeu

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;

Or. en

Amendment 306

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau, Lynn Boylan

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

(ja) climate action as a driver of co-benefits for citizens and their quality of life, including inter alia for health and well-being, job creation, clean and healthy environment;

Or. en

Justification

Much more focus needs to be made in EU climate policy on using climate action to drive improvements in citizens' qualities of life. This can help deliver on our multiple objectives of moving towards a non-toxic environment, Vision Zero for road fatalities, healthy soils by 2050, and much more.

Amendment 307

Lena Schilling

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

(ja) the many co-benefits generated by climate action for citizens and their quality of life, including on air quality, health, wellbeing and the environment;

Or. en

Amendment 308

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

(ja) circularity as a driver for innovation;

Or. en

Amendment 309

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

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 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 also by revising all existing legislation, including CBAM Regulation and State aid rules and, introducing changes that will support European industry especially hard-to-abate sectors such as continued access to free allocation or access to phased out free allowances in return to investments in decarbonisation (allowances in national/sectoral envelopes);

Or. en

Justification

For the Union economy to be competitive globally, it’s necessary to revise both the CBAM Regulation and the assessment procedure under the state aids legislation; A solution and support for CBAM/hard to abate sectors should be clearly presented, as well as solution for exporters under CBAM regulation.

Amendment 310

Stefano Cavedagna, Nicola Procaccini, Antonella Sberna, Pietro Fiocchi, Paolo Inselvini, Michele Picaro, Sergio Berlato

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 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; for that purpose the EU ETS should be further simplified for small installations and a sufficient and effective carbon leakage protection measures shall be ensured as long as necessary and as long as no comparable climate efforts are undertaken abroad;

Or. en

Amendment 311

Niels Flemming Hansen

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 of the Union’s economy, with particular attention to small and medium-sized enterprises and to industrial sectors most exposed to carbon leakage, ensuring fair competition while assessing the cumulative impact on SMEs and mitigating disproportionate costs, without lowering the level of environmental ambition;

Or. en

Justification

The Impact Assessment (SWD(2024) 63 final) confirms that small and medium-sized enterprises (SMEs) are both particularly exposed to transition costs and central to delivering the solutions needed for the 2040 target. It also underlines that sectors most exposed to carbon leakage face specific competitiveness challenges. By merging these considerations, the amendment ensures that Union climate policy strengthens global competitiveness and safeguards SMEs from disproportionate burdens, while maintaining environmental ambition.

Amendment 312

Daniel Buda

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

Or. ro

Amendment 313

Lena Schilling

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 European industrial leadership in leading the global race in clean technologies so as to preserve the competitiveness of the Union’s economy, in particular for small and medium-sized enterprises, and to support industrial sectors most exposed to the risk of carbon leakage in their transition;

Or. en

Amendment 314

Katri Kulmuni, Christine Singer, Andreas Glück, Jeannette Baljeu

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 carbon leakage so as to ensure fair competition;

Or. en

Amendment 315

Emma Wiesner

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 of the Union’s economy, in particular small and medium-sized enterprises to ensure fair competition;

Or. en

Amendment 316

Radan Kanev

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 strategic autonomy 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;

Or. en

Amendment 317

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau, Lynn Boylan

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 Union's economy, as well as the needs and challenges faced by small and medium-sized enterprises and industrial sectors most exposed to a proven risk of carbon leakage;

Or. en

Justification

Not all sectors face carbon leakage so it is important to anchor this consideration in those industrial sectors that are proven to be exposed to this challenge. It is legitimate to give special attention to SMEs. While global competitiveness can be a consideration for EU climate policy, it should not be a determining factor as allowing it to dictate ambition will undermine the EU's leadership and our climate goals.

Amendment 318

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau, Lynn Boylan

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ka) maintaining public support for ambitious climate action;

Or. en

Justification

Maintaining public support is critical to the success of EU climate policies. The pathway to 2040 must prioritise fairness and equity, protect vulnerable groups, distribute costs and benefits fairly, and create opportunities for a better quality of life. The transition must also be transparent and inclusive, as well as provide certainty and support, making the most sustainable options the easiest and most affordable.

Amendment 319

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

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 scalable technologies; new instruments on Union level, including financial instruments, shall be established in order to accelerate the uptake of the best cost-effective technologies;

Or. en

Justification

it is essential to establish a European framework of financial instruments that is consistent with the ambitious goal, adequate to deal with the substantial investments that will be required, in particular, for the development and upgrading of energy infrastructure, for accelerating the deployment of renewable energy and energy efficiency, and for the development of new technologies.

Amendment 320

Lena Schilling

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) the need to prioritise the deployment of best available cost-effective, safe and rapidly scalable clean technologies that are able to contribute to the Union's climate targets in a short timeframe;

Or. en

Justification

Given the relatively short time we have to meet our climate targets, and the scarce public and private financial resources, priority should be given to already available cost-effective, safe and rapidly scalable clean technologies that are able to contribute to the Union's climate targets in a short timeframe.

Amendment 321

Alexandr Vondra

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) to ensure cost effectiveness and equal access to financing for all low and/or zero carbon neutral technologies;

Or. en

Amendment 322

Sirpa Pietikäinen

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 scalable technologies and practices;

Or. en

Amendment 323

Gerben-Jan Gerbrandy, Stine Bosse, Emma Wiesner, Katri Kulmuni, Anna Stürgkh, Jeannette Baljeu, Pascal Canfin

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 scalable technologies and practices;

Or. en

Amendment 324

Radan Kanev

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(la) when available, sectoral roadmaps as referred to in Article 10 of this Regulation;

Or. en

Amendment 325

Danuše Nerudová

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(la) favourable conditions for financing nuclear energy in post-2030 period;

Or. en

Justification

This is an important condition for some Member States without which it will be extremely difficult to achieve the decarbonisation of their energy sector.

Amendment 326

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

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) security of supply, energy efficiency and the ‘energy efficiency first’ principle, energy affordability, to ensure that direct and indirect costs of the decarbonisation process do not automatically become an excessive burden for consumers and households;

Or. en

Justification

It is crucial to address the issue of affordability and the rising costs and prices for consumers and citizens. In this regard, it is necessary to ensure that direct and indirect costs of the decarbonisation process are not automatically transferred into energy prices and products for consumers and households.

Amendment 327

Daniel Buda

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, security of supply, energy efficiency and the ‘energy efficiency first’ principle, as well as the requirement to invest in networks and the integration of regional markets in order to ensure competitive prices in all Member States;

Or. ro

Amendment 328

Lena Schilling

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) the need to rapidly and massively deploy renewable energy, energy savings measures, and to fully implement the 'energy efficiency first' principle, so as to contribute to energy affordability and security of supply;

Or. en

Amendment 329

Ana Vasconcelos, Andreas Glück, Anna Stürgkh, Jeannette Baljeu

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, security of supply, energy efficiency and the ‘energy efficiency first’ principle, as well as strengthening of electricity grids and interconnections;

Or. en

Amendment 330

Katri Kulmuni, Christine Singer, Andreas Glück, Jeannette Baljeu

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, security of supply, energy efficiency and the ‘energy efficiency first’ principle; and promote renewable and clean energy without energy caps;

Or. en

Justification

The current energy efficiency framework under the Energy Efficiency Directive restricts final energy consumption also for renewable and clean energy, which in turn limits the fossil-free electrification of industry and etc. the development of a hydrogen economy. The post-2030 framework should instead facilitate and support these objectives.

Amendment 331

Dan-Ştefan Motreanu

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, energy interconnectivity, security of supply, energy efficiency, and the ‘energy efficiency first’ principle;

Or. en

Amendment 332

Gerben-Jan Gerbrandy, Stine Bosse, Emma Wiesner, Katri Kulmuni, Anna Stürgkh, Pascal Canfin

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, security of supply, energy efficiency and the ‘energy efficiency first’ principle, and the phase-out of fossil fuels;

Or. en

Amendment 333

Alexandr Vondra

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 security and affordability, security and stability of supply, energy efficiency and the ‘energy efficiency first’ principle;

Or. en

Amendment 334

Thomas Pellerin-Carlin

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, security of supply, boosting renewables, energy efficiency and the ‘energy efficiency first’ principle;

Or. en

Amendment 335

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau

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

Or. en

Justification

The same terms are used in Art.4.5.g of the Climate Law, but the order has been changed. For consistency we should maintain the same order, leading with the overarching principles of energy efficiency and energy efficiency first.

Amendment 336

Andreas Glück, Olivier Chastel, Jeannette Baljeu, Katri Kulmuni

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, security of supply and energy efficiency;

Or. en

Justification

Energy efficiency should not be an end in itself. In most cases, energy efficiency and decarbonisation go hand in hand. This is not the case in all cases however. The best example is green steel. While it emits less CO2, it is not more energy efficient as instead of natural gas, green hydrogen is used.

Amendment 337

Jacek Ozdoba

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

(ma) affordability of heating costs, especially in the context of the need to ensure the continuity of the free allocation for district heating sector under the Directive 2003/87/EC;

Or. en

Justification

Free allocation for district heating sector should be continued after 2030 under the EU directive in order to limit heating costs for the district heating users.

Amendment 338

Thomas Pellerin-Carlin

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

(ma) energy efficiency as a key strategic sector for industrial decarbonisation and European competitiveness;

Or. en

Amendment 339

Sirpa Pietikäinen

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

(ma) resource efficiency, circular economy, cascading principle, ecodesign, and designing out waste principle;

Or. en

Amendment 340

Lena Schilling

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

(ma) the need to phase out fossil fuels and removing all fossil fuel subsidies;

Or. en

Amendment 341

Thomas Pellerin-Carlin

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

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

Or. en

Amendment 342

Lena Schilling

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

(mb) the benefits of a circular economy and of demand-side measures in reducing greenhouse gas emissions;

Or. en

Amendment 343

Dan-Ştefan Motreanu

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point n

Text proposed by the Commission

Amendment

(n) fairness and solidarity between and within Member States;

(n) fairness and solidarity between and within Member States taking into account their different starting points, national economic circumstances and budgetary capacities to support the transition;

Or. en

Amendment 344

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point n

Text proposed by the Commission

Amendment

(n) fairness and solidarity between and within Member States;

(n) fairness and solidarity between and within Member States, and in the global context in light of the principles and provisions guiding the Paris Agreement and the UNFCCC;

Or. en

Amendment 345

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point n

Text proposed by the Commission

Amendment

(n) fairness and solidarity between and within Member States;

(n) fairness and solidarity between and within Member States and in the global context in light of the principles and provisions guiding the Paris Agreement and the UNFCCC;

Or. en

Amendment 346

Seán Kelly

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(na) targets should be based on the results of a comprehensive impact assessment in order to ensure the specificities of national emissions profiles are fully considered and fairness is ensured; this impact assessment should in particular re-consider the use of GDP per capita as a means of determining national contributions and explore alternatives that can give a more accurate representation of national economies.

Or. en

Amendment 347

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(na) the need to fully implement the UAE Consensus agreed at COP28 and transition away from fossil fuels, removing all fossil fuel subsidies and moving towards renewables and energy efficiency;

Or. en

Justification

The UAE Consensus was a landmark agreement at COP28 with all Parties agreeing to transition away from all fossil fuels in energy systems and to reach net-zero emissions by 2050. This is clearly an important consideration to maintain in the 2040 EU policy framework.

Amendment 348

Jacek Ozdoba

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(na) the need to address current geopolitical situation and the need to ensure European defence capabilities as a strategic priority for the Union;

Or. en

Amendment 349

Sirpa Pietikäinen

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(na) the need to transition away from fossil fuels, removing all fossil fuel subsidies and moving towards renewables and energy efficiency;

Or. en

Amendment 350

Anna Zalewska

on behalf of the ECR Group

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(nb) the geopolitical situation, including the defence challenges of the Union and the needs of military forces of its Member States and their defence industries;

Or. en

Amendment 351

Alexandr Vondra

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point o

Text proposed by the Commission

Amendment

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

(o) the need to ensure effectiveness of all measures taken and progression over time in view of a fairness of the Union contribution to the global climate agenda as well as the global security challenges;

Or. en

Amendment 352

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – 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 and climate effectiveness and progression over time;

Or. en

Amendment 353

Sirpa Pietikäinen

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 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;

(p) the need to maintain, manage and enhance natural sinks in the long term, scale up the restoration of natural sinks currently in state of degradation treating their carbon sequestration benefits as one of many co-benefits and protect and restore biodiversity, as well as address the main drivers to the current decline of the natural sinks including unsustainable harvesting practices and land-use changes;

Or. en

Amendment 354

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau

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 natural sinks in the long term, scale up the restoration and protection of natural sinks, especially of those currently in state of degradation, treating their carbon sequestration benefits as one of many co-benefits and protect and restore biodiversity, as well as address the main drivers to the current decline of the natural sinks including current harvesting levels and impacts of climate change in the LULUCF sector;

Or. en

Amendment 355

Jessica Polfjärd

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, 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;

Or. en

Amendment 356

Ondřej Knotek, Silvia Sardone, Anne-Sophie Frigout, Viktória Ferenc, Jana Nagyová, Filip Turek, Marie-Luce Brasier-Clain, Roberto Vannacci, Barbara Bonte

on behalf of the PfE Group

Jorge Buxadé Villalba, Mathilde Androuët

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 consider environmental protection measures and – as long as this law is in force – maintain, manage and enhance natural sinks in the long term and protect biodiversity, as well as take into account uncertainties notably those linked to the impacts of climate change and environmental hazards in the land use sector;

Or. en

Amendment 357

Lena Schilling

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 natural sinks in a way that protects and restores biodiversity, the recognise that healthy ecosystems improve the resilience of natural sinks, as well as to address the main drivers to the current decline of natural sinks, including the impacts of climate change in the land use sector;

Or. en

Amendment 358

Gerben-Jan Gerbrandy, Stine Bosse, Anna Stürgkh, Pascal Canfin

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 natural sinks in the long term, scale up the restoration of natural sinks, protect and restore biodiversity, as well as address the main drivers to the current decline of the natural sinks, including harvesting levels and impacts of climate change in the land use sector;

Or. en

Amendment 359

Daniel Buda

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 natural sinks in the long term and protect and restore biodiversity, bearing in mind the considerable risks and uncertainties linked to the impacts of climate change in the land and forest use sector;

Or. ro

Amendment 360

Sakis Arnaoutoglou

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 natural sinks in the long term and protect and restore biodiversity, as well as to safeguard public health, food security, and climate resilience, taking into account uncertainties notably those linked to the impacts of climate change in the land use sector;

Or. en

Amendment 361

Katri Kulmuni, Christine Singer, Jeannette Baljeu, Emma Wiesner

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;

Or. en

Justification

‘As appropriate’ has also been mentioned in the Paris Agreement.

Amendment 362

Alexandr Vondra

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 or enhance natural sinks, if appropriate, in the long term and protect and restore biodiversity, as well as take into account uncertainties notably those linked to models of the impacts of climate change;

Or. en

Amendment 363

Niels Flemming Hansen

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, with a particular emphasis on making public finance a catalyst for private investment; such mobilisation shall ensure coherence with wider Union policies aimed at creating a Savings and Investments Union, enabling Europeans to directly participate in financing the transition; by channelling citizens’ savings and institutional capital into climate-aligned projects, Union policies shall both provide businesses of all sizes with the capital needed to deliver solutions for the 2040 target and allow Europeans themselves to benefit from the economic opportunities of the green transition;

Or. en

Justification

The Impact Assessment (SWD(2024) 63 final, Section 6.4.2–6.4.3) highlights that achieving the 2040 target will require unprecedented levels of investment and that public finance alone will not suffice. Mobilising private capital is therefore essential, with public instruments playing a catalytic role in de-risking and attracting household savings and institutional investors. Embedding this principle ensures coherence with wider Union initiatives to deepen capital markets and create a Savings and Investments Union. It will allow Europeans to participate directly in financing the transition, while providing businesses of all sizes with the capital needed to deliver solutions for the 2040 target and ensuring citizens can also benefit from the economic opportunities of the green transition.

Amendment 364

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

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; all relevant European financial instruments such as Innovation Fund, Modernisation Fund, Connecting Europe Facility and the funds related to cohesion policy, shall be strengthened as well as providing for a new additional financial instruments;

Or. en

Justification

It is necessary to strengthen existing financial and legislative instruments (such as the Innovation Fund, Modernisation Fund, CEF, and cohesion policy-related funds, among others) and to provide for new mixed public-private financing instruments. It will be a necessary enabling condition to support the development and strengthening of the grids and storage facilities so as to allow the integration of an increasing share of energy from renewable sources.

Amendment 365

Kristian Vigenin

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 geographically balanced funding opportunities, including access to public and private finance, which are equally available to all Member States regardless of their GDP and capacities in order to ensure the practical implementation of the necessary technologies;

Or. en

Amendment 366

Sakis Arnaoutoglou

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, including the reinforcement of Union funding instruments, to ensure that no Member State or citizen is left behind in the transition;

Or. en

Amendment 367

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen, Danuše Nerudová, Radan Kanev

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 ensuring access to funding also for Member States with small economies and taking into account geographical balance;

Or. en

Amendment 368

Thomas Pellerin-Carlin

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;

Or. en

Amendment 369

Alexandr Vondra

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) financial feasibility, investment needs and opportunities, access to public and private finance, including the ’financial sustainability’ principle;

Or. en

Amendment 370

Gerben-Jan Gerbrandy, Stine Bosse, Emma Wiesner, Anna Stürgkh

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 and the phase-out of fossil fuel subsidies;

Or. en

Amendment 371

Katri Kulmuni, Christine Singer, Jeannette Baljeu

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; promoting public and private partnerships;

Or. en

Amendment 372

Dan-Ştefan Motreanu

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

(qa) the mobilization of public and private investment through stable long-term regulatory frameworks that provide certainty for investors;

Or. en

Amendment 373

Emma Wiesner

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

(qa) existing information on the projected indicative Union greenhouse gas budget for the 2040-2050 period;

Or. en

Amendment 374

Dan-Ştefan Motreanu

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(qb) the strengthening of European value chains for strategic net-zero technologies to reduce dependencies and secure industrial resilience;

Or. en

Amendment 375

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – 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; the Commission shall assess yearly the adequacy of the Union climate measures in light of global developments, including geopolitical security shifts and trade tensions;

Or. en

Justification

In order to monitor implementation of EU climate policy as well as to project future legislation it is necessary to possess the up-to-date knowledgeable assessment of adequacy of EU climate measures in international context.

Amendment 376

Ondřej Knotek, Silvia Sardone, Anne-Sophie Frigout, Viktória Ferenc, Jana Nagyová, Filip Turek, Marie-Luce Brasier-Clain, Roberto Vannacci, Barbara Bonte

on behalf of the PfE Group

Jorge Buxadé Villalba, Mathilde Androuët

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraphs 4 – subparagraph 3 – point r

Text proposed by the Commission

Amendment

(r) international developments and efforts undertaken to achieve the long-term objectives of reducing greenhouse gas emissions, as well as the support of the Union to its partners in addressing climate change and its impacts.

Or. en

Amendment 377

Daniel Buda, Dan-Ştefan Motreanu

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ra) implementation of a holistic approach as regards the circular bioeconomy for agricultural emissions by updating the methodology for the accounting of greenhouse gas emissions from agriculture, taking into account the short life-cycle of methane, which cannot be properly assessed using the GWP100, as well as the role of livestock farming in biomass recycling, waste reduction, the contribution to renewable energy, and natural fertilisers.

Or. ro

Justification

To the moment, agriculture, and livestock farming in particular, is assessed using GWP100 (Global Warming Potential at 100), which is a very simplistic metric which does not reflect reality. It overestimates the impact of methane from ruminants, and does not take into account the natural carbon cycle, in which a large proportion of methane decomposes into CO2 and re-enters the natural circuit.

Amendment 378

Ana Vasconcelos, Anna Stürgkh

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraphs 4 – subparagraph 3 – point r a (new)

Text proposed by the Commission

Amendment

(ra) the preservation of the integrity and credibility of the EU ETS, ensuring that the integration of domestic permanent removals and any other flexibilities do not undermine the cap-and-trade principle, dilute the scarcity of allowances, or weaken the long-term price signal necessary for decarbonisation investments;

Or. en

Amendment 379

Radan Kanev

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ra) a robust international governance framework for ITMOs and robust oversight mechanisms in the Union, in order to eliminate the risk of double-counting and to preserve the environmental and economic integrity of the system, in particular when international credits are originating from third countries;

Or. en

Amendment 380

Dan-Ştefan Motreanu

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ra) the need to ensure coherence with the Union’s industrial policy, including the Clean Industrial Deal, to foster innovation, industrial renewal and global leadership in clean technologies, taking into account a joint decarbonization and competitiveness agenda as recommended in the Draghi Report;

Or. en

Amendment 381

Lena Schilling

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ra) the need to ensure the fairness of the Union's contribution to the Paris Agreement in view of the fact that the Union has already exhausted its fair share of the remaining global carbon budget consistent with limiting global warming to under 1,5° C;

Or. en

Amendment 382

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ra) State aid rules shall be reviewed to be consistent with the Union 2040 climate target set out in the article 4, paragraph 3 and must not undermine the state's legitimate need to develop sectors of strategic importance for state security.

Or. en

Justification

The conditions for granting state aid should not focus solely on environmental objectives, but should also consider other important factors, such as state security and defence against external threats.

Amendment 383

Kristian Vigenin

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ra) Member States post-2030 targets and efforts should reflect cost-efficiency and solidarity, in light of national circumstances, starting points, capacity and transition needs;

Or. en

Amendment 384

Stefano Cavedagna, Nicola Procaccini, Antonella Sberna, Pietro Fiocchi, Paolo Inselvini, Michele Picaro, Sergio Berlato

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Amendments to Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ra) the recognition that all net-zero technologies as established in Regulation (EU) 2024/1735 are essential enablers for achieving the targets set in paragraph 3 of this Article;

Or. en

Amendment 385

Pascal Canfin, Yvan Verougstraete

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ra) the importance of addressing consumption-based emissions to ensure the effectiveness and global coherence of Union climate action;

Or. en

Amendment 386

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

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

Or. en

Amendment 387

Catarina Martins, Per Clausen, Jonas Sjöstedt, Anja Hazekamp, Sebastian Everding, Li Andersson, Emma Fourreau

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ra) existing information on the projected indicative Union greenhouse gas budget for the 2030-2050 period;

Or. en

Justification

It is crucial that the 2040 climate policy framework is designed based on the most updated data on the remaining GHG budget for the EU.

Amendment 388

Stefano Cavedagna, Nicola Procaccini, Antonella Sberna, Pietro Fiocchi, Paolo Inselvini, Michele Picaro, Sergio Berlato

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(rb) no additional binding Union climate target beyond 2030 should be proposed or set before completion of a comprehensive assessment of the achievement of the 2030 targets and the effectiveness of enabling measures; this sequencing ensures policy credibility and prevents unintended competitiveness and social impacts, while preserving the 2050 climate-neutrality objective.

Or. en

Amendment 389

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(rb) Stability and Growth Pact (SGP) shall be reviewed to be consistent with the Union 2040 climate target set out in paragraph 3 with the inclusion of a “green deal climate and energy clause” to allow for much greater investment, both public and private, and to allow a longer time adjustment for Member States;

Or. en

Justification

Stability Pact framework imposes strict limits on the growth of public spending. This risks limiting the MS capacity to invest in green technologies, reducing countries' competitiveness in global markets and hindering the achievement of the EU's climate and energy security goals

Amendment 390

Ana Vasconcelos, Anna Stürgkh

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(rb) the need to eliminate fossil fuel subsidies to enable fair competition among different energy sources;

Or. en

Amendment 391

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(rc) necessity to assess yearly impact of all elements of implementation package on competitiveness of European industry, energy prices, energy demand, energy poverty indicators and employment changes; in case of negative impact, the Commission shall introduce automatically, agreed beforehand, mitigating measures;

Or. en

Justification

It is necessary to react very swiftly in case of high increase of energy prices and in case of any drop in competitiveness of European industry or negative changes of other indicators. Appropriate measures should be agreed and triggered automatically in such situations.

Amendment 392

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(rd) recognise the sectoral emissions reductions which were already implemented so far by different sectors of economy; the current emissions reduction was achieved mostly by the power generation, where further abatement cost will be higher due to the raising systemic cost including grid infrastructure, storage and balancing cost.

Or. en

Justification

The EU ETS managed to reduce emissions in the covered sectors by around 50%, compared to 2005. This was driven mainly by the power sector’s efforts: in 2024, the emissions related to electricity generation decreased by 12% year-on-year, while for industry remained stable and aviation’s increased1. Even though, the European Commission assesses that EU countries are on track to achieve the 2030 climate goals, it is unlikely that such a pace can be maintained in the future. As the units with highest emissivity are being phased out, the abatement costs of the remaining emissions are significantly higher, and the reductions are more challenging from a technological point of view. According to EC’s own estimates, EU countries will have to invest on average EUR 1570 billion each year in 2031-2040 to achieve the 2040 climate goal.

Amendment 393

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point r e (new)

Text proposed by the Commission

Amendment

(re) specific situation in sectors with limited reduction potential and important role in the economy, such as buildings, agriculture or transport; actions implemented in such sectors should not increase costs for citizens;

Or. en

Justification

There is a need to take into account specificities of certain sectors that have direct impact on citizens and therefore should be treated with special attention taking into account the role they play in everyday life of citizens, and possible cost directly passed on the EU societies.

Amendment 394

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point r f (new)

Text proposed by the Commission

Amendment

(rf) need to establish the European Central Carbon Bank, an independent body responsible for quality control, monitoring, and marketing of international credits and removals; such body shall act for ensuring the stability and transparency of the EU ETS market by inter alia: monitoring of the allowances supply and demand, purchasing and managing international credits and carbon removal units and their exchanging for the allowances in the EU ETS, stabilizing price of EU ETS allowances by sale and purchase of the allowances;

Or. en

Justification

Establishment of a European Central Carbon Bank (ECCB) should be considered: an independent institution modelled after a central bank, empowered to manage the supply of EUAs, carbon dioxide removals (CDRs), and high-integrity international offsets. The ECCB would act as a stabilising measure - maintaining market liquidity, managing volatility, and coordinating carbon pricing signals across policy instruments, By dynamically adjusting supply, the ECCB could mitigate extreme price fluctuations, prevent hoarding and maintain the credibility of carbon price signals, which is essential for investment in low-carbon technologies. The Agency would intervene in the event of significant price fluctuations – by purchasing removal units and offsets and appropriately managing a specially created balancing reserve.

Amendment 395

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point r g (new)

Text proposed by the Commission

Amendment

(rg) need to establish additional, effective price control mechanism in the EU ETS in case the primary market is extended to ETS2 sectors; price cap mechanism should be established, ensuring that EU allowances prices do not exceed the marginal abatement cost identified in the Impact Assessment;

Or. en

Justification

The EU ETS market becomes a highly sensitive market when extended to sectors that directly affect households (ETS2). This market must be equipped with effective solutions. These solutions will help it to respond to large price increases. They will also provide a stronger protection for the most vulnerable groups. Therefore, we propose to set a maximum price cap, which, if reached or exceeded, will trigger the intervention release of an unlimited volume of allowances (increasing the supply of allowances will lower the price).

Amendment 396

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point r h (new)

Text proposed by the Commission

Amendment

(rh) need to address insufficient inflow of allowances in the ETS system that will end around 2039 with current linear reduction factor levels by adjusting the linear reduction factor and/or by introducing additional allowances from 2031 onwards;

Or. en

Justification

With current LRF level the allowances in the ETS system will finish around 2039. To address this problem there is a need to increase the number of available allowances either by changing the LRF and/or by introducing new sources of additional allowances in 2031;

Amendment 397

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(ri) the need to ensure EU ETS price and supply stability that supports Union’s competitiveness and functioning of dispatchable energy sources;

Or. en

Justification

The adoption of the 2040 goal will impact the parameters of the EU ETS: the number of allowances available on the primary market (through the Linear Reduction Factor – LRF) as well as the prices of allowances. The reduction target of 55% for 2030 (from the “Fit for 55” package) translates into a 62% target for the EU ETS sectors. The target higher than 80% could lead to complete decarbonisation of the power sector well-before 2040. Under the current parameters of the EU ETS, allowances on the primary market will cease around 2040 anyway. The higher emission target could only accelerate it. The higher reduction target will translate in higher CO2 prices, which will increase the prices of energy for European households and industry. As highlighted in the Mario Draghi’s Report: The future of European competitiveness, electricity prices for industry in the EU are already significantly higher than in the United States or China, which undermines the global competitiveness of European industry. It will also negatively impact gas-fired power plants that supports the energy systems with high penetration of intermittent renewables. (see: ENTSO-E’s “European Resource Adequacy Assessment” report from 2025). Industry sector also needs stable emission allowance prices in order to remain competitive on global markets.

Amendment 398

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

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

Text proposed by the Commission

Amendment

(rj) a significant role district heating and high efficient cogeneration in ensuring energy security and cost-effective heat supply beyond 2040; in particular, the Commission shall assess the continuous allocation of free allowances to these sectors under the EU ETS beyond 2030, taking into consideration their role in the energy transition and the limited potential for full decarbonisation in the short- and medium-term;

the new climate target for 2040 should not lead to a revision of the transformation pathway for district heating1a by requiring to achieve net-zero efficient district heating systems 10 years earlier, but rather support its implementation in a coherent and predictable manner.

__________________

1a The transformation pathway for district heating as set out in Article 26 of Directive (EU) 2023/1791, which foresees the achievement of net-zero efficient district heating and cooling system by 2050

Or. en

Justification

The definition of an efficient district heating and cooling system in Directive (EU) 2023/1791 already outlines a clear pathway toward climate neutrality by 2050. This trajectory is sufficiently ambitious and, for many systems, will pose a significant implementation challenge. Revising it in light of the 2040 climate target could undermine planning certainty and delay necessary investments.

Amendment 399

Pascal Canfin

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

4a. By 2031, the Commission shall assess the climate commitments of third parties under the UNFCCC and if relevant, update upward the 2040 EU climate objective of 90%.

Or. en

Amendment 400

Pascal Canfin

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 b (new)

Text proposed by the Commission

Amendment

4b. Starting from 2027, the Commission shall publish an annual assessment of the implementation of the targets set out in this Regulation in specific industrial sectors that are particularly impacted by decarbonization and exposed to international competition. The Commission’s report shall be accompanied, where appropriate, by additional measures to reinforce enablers for the clean transition of those sectors, including enhanced financial support, streamlined regulatory frameworks, technology deployment assistance, and measures to ensure fair international competition, and, if ultimately appropriate, a revision of the decarbonisation trajectory of those sectors.

Or. en

Amendment 401

Stefano Cavedagna, Nicola Procaccini, Antonella Sberna, Pietro Fiocchi, Paolo Inselvini, Michele Picaro, Sergio Berlato

Proposal for a regulation

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

Regulation (EU) 2021/1119

Article 4 a (new)

Text proposed by the Commission

Amendment

(2a) the following Article is inserted:

‘Article 4a

Enabling conditions and competitiveness safeguard.

Before setting a binding 2040 target, the Commission shall, by 30 June 2029, present a report assessing whether:

(a) electricity and industrial energy-price differentials with major OECD partners have materially narrowed;

(b) adequate volumes of low-carbon energy carriers (including hydrogen and biomethane) and CCUS capacity are available for hard-to-abate sectors;

(c) grid and permitting bottlenecks have been addressed; (d) sufficient funding and risk-mitigation instruments are in place; and

(e) effective carbon-leakage protections, including for exports, are operational.

If these conditions are not met, the 2040 objective shall remain indicative and the Commission shall propose appropriate adjustments.

Or. en

Amendment 402

Alexandr Vondra

Proposal for a regulation

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

Regulation (EU) 2021/1119

Article 8 – paragraph 3 – point e a (new)

Text proposed by the Commission

Amendment

(2a) In Article 8, paragraph 3, the following point is added:

(ea) ‘any supplementary information on social and economic aspects of the transition.;’

Or. en

Amendment 403

Radan Kanev

Proposal for a regulation

Article 1 a (new)

Regulation (EU) 2021/1119

Text proposed by the Commission

Amendment

Article 1a

Delegation of power to the Commission

The power to adopt delegated acts referred to in Article 2a shall be conferred on the Commission for an indeterminate period of time.

The delegation of power referred to in Article 2a 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 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.

A delegated act adopted pursuant to Article 2a shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of four months of notification of that act to the European Parliament and 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.

Or. en

Justification

Providing the legal means to the Commission to adopt the enabling criteria for the conditionality on the target.

Amendment 404

Radan Kanev

Proposal for a regulation

Article 2 a (new)

Regulation (EU) 2021/1119

Article 11

Present text

Amendment

Article 2a

Article (11) is replaced by following:

Article 11

‘Article 11

Review

1. The Commission shall be empowered to adopt delegated acts in accordance with Article 13a supplementing this Directive for the purpose of within six months of each global stocktake referred to in Article 14 of the Paris Agreement, and no later than 2027 for the first delegated act, to establish transparent criteria and indicators to assess whether the conditions for activating the conditional part of the 2040 target referred to in Article 1 have been met. For the selected major economies, those shall cover the following:

(a) measurable progress in absolute greenhouse gas emissions reductions;

(b) the trajectory to phase-out fossil fuels and in particular the combustion of all types of coal;

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:

2. Within six months of each global stocktake referred to in Article 14 of the Paris Agreement and in 2031, 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) effectiveness of existing policies and measures;

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

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

(b) international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement.

(d) the impact of the evolution of national and international circumstances, in the implementation of 2040 target.

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

The Commission’s report may be accompanied, where appropriate, by legislative proposals.’

Or. en

Justification

The first part sets criteria for external conditionality vis a vis the largest worldwide emitters. The second part of this amendment does not seek to limit nor to be exhaustive on the scope of the report to the European Parliament and the Council on the conclusions of the assessments referred to in Articles 6 and 7. Additional enabling conditions may also be taken into account, such as the deployment of DACCS and BECCS, the availability of carbon removals, sectoral flexibilities, and the impact of energy prices.

Amendment 405

Adam Jarubas, Ewa Kopacz, Bartosz Arłukowicz, Hanna Gronkiewicz-Waltz, Elżbieta Katarzyna Łukacijewska

Proposal for a regulation

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

Regulation (EU) 2021/1119

Article 11

Present text

Amendment

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

Article 11

'Article 11

Review

Within six months of each global stocktake referred to in Article 14 of the Paris Agreement and in 2035, 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 level of ambition set out in Article 4, paragraph 3, of this Regulation and on the operation of this Regulation, taking into account:

(a) effectiveness of existing policies and measures;

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

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

(d) the volume of permanent carbon removals available for use together with the assessment on whether this volume is sufficient to ensure the achievement of the 2040 target in a cost-efficient and timely manner;

(e) the functioning and the contribution of the flexibilities related to Article 4;

(b) international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement.

(f) the international developments to achieve the long-term objectives of the Paris Agreement;

(g) the efforts undertaken to achieve the 2030 target;

(h) an assessment of the diversity of member states in terms of economic capacity, energy mix, availability of modern technologies including reduction technologies, external security and energy security needs;

(i) the amount of marginal abatement costs of emission reduction;

(j) evaluation the maturity and readiness for deployment of the technologies that are critical to achieving ambitious reduction targets in the European economy;

(k) the impacts on employment, energy prices, industrial energy demand, hard-to-abate- sector employment changes, costs for citizens and on the competitiveness of Union industry, particularly small and medium-sized enterprises;

(l) the impact of the evolution of national and international circumstances, in the implementation of 2040 target.

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 amend this Regulation.'

Or. en

Justification

Given the numerous uncertainties and difficult-to-predict changes in economic and political conditions during the period of achieving the reduction target, the provisions on monitoring and reporting progress should specify that the assessment of progress towards the 2040 reduction target should be expanded to include additional elements, such as monitoring and assessing various factors and variables that may influence the reduction effort implemented by the Member State. Such assessment should take into account, among other things:• The varying needs of Member States, for example, in developing the potential of sectors related to defence and external security.• Different national circumstances related to ensuring energy security.• The evolution of marginal abatement costs (MAC).• Monitoring the availability (including cost) of reduction and sink technologies.• The maturity and readiness for implementation of technologies that are key to the European economy's ability to achieve ambitious reduction targets.• The impact of the transition on energy poverty and employment indicators.• The pace of implementation of removal units and offsets both in the architecture of climate policy and in terms of actual feasibility.

Amendment 406

Lídia Pereira, Peter Liese, Dimitris Tsiodras, Niels Flemming Hansen, Danuše Nerudová, Radan Kanev

Proposal for a regulation

Article 2 a (new)

Regulation (EU) 2021/1119

Article 11

Present text

Amendment

Article2a

Article 11 is replaced by following:

Article 11

'Article 11

Review

Within six months of each global stocktake referred to in Article 14 of the Paris Agreement and in 2031, 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) effectiveness of existing policies and measures;

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

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

(e) the functioning and the contribution of the flexibilities related to Article 4

(b) international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement.

(f) international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement.

(g) the efforts undertaken to achieve the 2030 target;

(i) the amount of marginal abatement costs of emission reduction,

(j) evaluation the maturity and readiness for deployment of the technologies that are critical to achieving ambitious reduction targets in the European economy,

(k) the impacts on employment, energy prices, industrial energy demand, hard-to-abate- sector employment changes, costs for citizens and on the competitiveness of EU industry, particularly small and medium-sized enterprises,

(l) the impact of the evolution of national and international circumstances, in the implementation of 2040 target.

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

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

Or. en

((EU) 2021/1119)