Sittings · Document

DRAFT REPORT (COM(2022)0329 – C90223/2022 – 2022/0210(COD)) 2023-05-10

On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 691/2011 as regards introducing new environmental economic accounts modules

Committee on the Environment, Public Health and Food Safety · Rapporteur: Pascal Canfin

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DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 691/2011 as regards introducing new environmental economic accounts modules

(COM(2022)0329 – C90223/2022 – 2022/0210(COD))

(Ordinary legislative procedure: first reading)

– having regard to the Commission proposal to Parliament and the Council (COM(2022)0329),

– having regard to Article 294(2) and Article 338(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90223/2022),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to Rule 59 of its Rules of Procedure,

– having regard to the report of the Committee on the Environment, Public Health and Food Safety (A90000/2023),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment 1

Proposal for a regulation

Recital 1

Text proposed by the Commission

Amendment

(1) Decision No 2022/591 of the European Parliament and of the Council of 6 April 2022 laying down a General Union Environment Action Programme to 203012 confirmed that sound information on the key trends, pressures and drivers for environmental change is essential for the development of effective policy, its implementation, and the empowerment of citizens. Instruments should be developed with a view to enhancing public awareness of the environmental effects of economic activity. Environmental economic accounts is one such instruments.

(1) Decision No 2022/591 of the European Parliament and of the Council of 6 April 2022 laying down a General Union Environment Action Programme to 203012 confirmed that sound information on the key trends, pressures and drivers for environmental change is essential for the development of effective policy, its implementation, and the empowerment of citizens. Instruments should be developed with a view to enhancing public awareness of the environmental effects of economic activity and the contribution of the environment to the economy and to wellbeing. Environmental economic accounts is one such instruments.

__________________

12 OJ L 114, 12.4.2022, p. 22.

Or. en

Amendment 2

Proposal for a regulation

Recital 6

Text proposed by the Commission

Amendment

(6) In order to better monitor progress towards a green, competitive and resilient circular economy and to monitor progress towards the Sustainable Development Goals in a Union context, additional data is required.

(6) In order to achieve the objective of climate neutrality at the latest by 2050, it is essential to align all Union legislation and processes with the Union’s long-term environmental and climate objectives as established under the European Green Deal, Regulation (EU) 2021/1119 (the ‘European Climate Law’) and the Fit for 55 package. It is of the utmost importance to do so, in particular given the pressure of high energy prices and the need for clean energy sources, to diversify energy sources and ensure greater Union energy self-sufficiency in order to foster a sustainable resilient and competitive economy. With a view to achieving that goalonly, thus better reflecting the current challenges faced by the Member States in reducing their ecological footprint and making the process a driver of change towards the sustainable well-being for all in the Union. The proposed Net Zero Industry Act also requires further data sharing from Member States to ensure a collective and systemic European response to the US Inflation Reduction Act that is challenging Europe’s industry competitiveness, in particular regarding the global emerging competition for the location of value chains for green industries. Data is needed as, if the Net Zero Act provides the right direction for the Union to move ahead, it should be accompanied by a clear Climate neutrality investment plan. To do so, granular data about the European climate, energy and environment investment gaps is needed. According to the Commission’s data, meeting the Union’s ambitious Green Deal agenda will require significant investment and the private and public investment gap to cater for the green transition is estimated at nearly EUR 520 billion per year, for the next decade. Furthermore, according to the Commission’s data, reducing fossil fuel dependence from third countries and accelerating the Union’s energy transition away from fossil fuels will require an estimated EUR 210 billion of additional investments by the end of 2027. It is also clear that while a substantial share of the investment will be provided by the private sector, public investment will have to significantly increase as well. Taking that into account, it is critical to get relevant and granular data from Member States to make sure that the Union is on the right track to deliver on the European Green Deal objectives with sufficient public and private capital allocated to the Green transition. In order to better monitor progress towards its objectives of a green, competitive and resilient circular economy and to monitor progress towards the Sustainable Development Goals in a Union context, additional data is required. The revision of this Regulation should be in line with Regulation (EU) 2021/1119, in particular Article 6(4) thereof. In addition to getting more data on climate change mitigation by strengthening existing module, the new modules included in this Regulation contribute directly to the Union’s policy priorities set out in the Green Deal.

Or. en

Amendment 3

Proposal for a regulation

Recital 6 a (new)

Text proposed by the Commission

Amendment

(6a) Ecosystem accounts as a means to present data on the extent and condition of ecosystem assets and the services they provide to society and the economy aim to put a value to nature and thereby allow the costs to nature to be taken better into consideration. They are therefore needed for the Union to achieve its environmental objectives. In order to deliver its intended effects fully, the module should in the future be further developed, including by adding reporting on monetary values.

Or. en

Amendment 4

Proposal for a regulation

Recital 6 b (new)

Text proposed by the Commission

Amendment

(6b) Adaptation is a key component of the long-term global response to climate change. It is necessary to address the growing climate-related risks to health, including more frequent and intense heatwaves, wildfires and floods, food and water safety and security threats, and the emergence and spread of infectious diseases. The adverse effects of climate change can potentially exceed the adaptive capacities of Member States. Therefore, Member States and the Union should enhance their adaptive capacity, strengthen resilience and reduce vulnerability to climate change, as provided for in Article 7 of the Paris Agreement, as well as maximise the co-benefits with other policies and legislation. Article 5 of Regulation (EU) 2021/1119 requires that Member States adopt comprehensive national adaptation strategies and plans based on robust climate change and vulnerability analyses, progress assessments and indicators, and guided by the best available and most recent scientific evidence. As it is necessary to monitor progress towards climate adaptation a new module on climate adaptation should be adopted by means of delegated acts capturing all the relevant data and reporting values related to climate change adaptation.

Or. en

Amendment 5

Proposal for a regulation

Recital 6 c (new)

Text proposed by the Commission

Amendment

(6c) Biodiversity loss is among the key vulnerabilities faced by economies, together with and amplified by climate change. Biodiversity is crucial for food security, human well-being and overall resilience of societies and economies. Therefore Member States and the Union should enhance their response to the biodiversity crisis in line with international commitment under the Kunming-Montreal Global Biodiversity Framework. To that end, the Commission has also proposed a Regulation on Nature Restoration, which will require Member States to prepare national restoration plans to identify the restoration measures necessary to enhance biodiversity, including in agricultural and forest ecosystems and for the restoration of pollinator populations, as well as a Regulation on the sustainable use of plant protection products and amending Regulation (EU) 2021/2115. As it is necessary to monitor progress towards reversing the decline of biodiversity, a new module on biodiversity should be adopted by means of delegated acts.

Or. en

Amendment 6

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8) In 2019, the European Court of Auditors published a special report No 2019/16 entitled “European Environmental Economic Accounts: usefulness for policymakers can be improved”.15 That report points to a need for more complete data on forests and ecosystems and for full implementation of forest accounts.

__________________

15 https://www.eca.europa.eu/en/Pages/DocItem.aspx?did=51214

Or. en

Amendment 7

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9) Article 5(2) of Regulation (EU) No 691/2011 lists the sources that Member States may use to estimate the environmental economic accounts. In order to ensure flexibility and to reduce the administrative burden on respondents, National Statistical Institutes and other national authorities, Member States should be allowed to use innovative approaches. Member States should always inform the Commission and provide details as regards the quality of those approaches for the Commission to assess the quality of the data.

(9) Article 5(2) of Regulation (EU) No 691/2011 lists the sources that Member States may use to estimate the environmental economic accounts. In order to ensure flexibility and to reduce the administrative burden on respondents, National Statistical Institutes and other national authorities, Member States should be allowed to use innovative approaches such as, for example, earth observation (Copernicus services). Member States should always inform the Commission and provide details as regards the quality of those approaches for the Commission to assess the quality of the data.

Or. en

Amendment 8

Proposal for a regulation

Recital 11

Text proposed by the Commission

Amendment

(11) The list of possible future European environmental economic accounts listed in Article 10 of Regulation (EU) No 691/2011 needs to be updated to align them to the current policy priorities of the Union.

(11) Given the urgent need to expand the system of European environmental economic accounts (EEEA) for policy-making and monitoring, the Commission should be empowered to adopt, by means of delegated acts, the new modules listed in this Regulation and to improve and further develop the existing modules set out in annexes to Regulation (EU) No 691/2011.

Or. en

Amendment 9

Proposal for a regulation

Recital 14

Text proposed by the Commission

Amendment

(14) In order to take into account the current state of development of methodologies to value ecosystem services, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in order to supplement the Regulation by establishing for which of the ecosystem services already included in the reporting tables in section 5 of Annex IX monetary values should be reported, the first reference year as well as a list of acceptable methods for establishing those monetary values. It is of particular importance that the Commission carry out appropriate consultations during the preparatory work, including at expert level, and that those consultations are conducted in accordance with the principles laid down in the Inter-institutional Agreement of 13 April 2016 on Better Law-Making17 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(14) In order to take into account the current state of development of methodologies to value ecosystem services and to further develop EEEA, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in order to supplement the Regulation by establishing for which of the ecosystem services already included in the reporting tables in section 5 of Annex IX monetary values should be reported, the first reference year as well as a list of acceptable methods for establishing those monetary values, and also by adopting new modules and by amending the existing modules. It is of particular importance that the Commission carry out appropriate consultations during the preparatory work, including at expert level, and that those consultations are conducted in accordance with the principles laid down in the Inter-institutional Agreement of 13 April 2016 on Better Law-Making17 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

__________________

17 OJ L 123, 12.5.2016, p. 1.

Or. en

Amendment 10

Proposal for a regulation

Article 1 – paragraph 1 – point 1

Regulation (EU) No 691/2011

Article 2 – point 9

Text proposed by the Commission

Amendment

(9) ‘ecosystem accounts’ means a set of accounts designed to provide consistent information on extent and condition of ecosystems and on the flows of services from these ecosystems to society.;

(9) ‘ecosystem accounts’ means a set of accounts designed to provide consistent information on extent and condition of ecosystems and on the flows of services from these ecosystems to society and the economy.’;

Or. en

Amendment 11

Proposal for a regulation

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

Regulation (EU) No 691/2011

Article 3 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

(a a) the following paragraph is inserted:

1a. By ... [3 years after the entry into force of this Regulation] the Commission shall adopt delegated acts in accordance with Article 9 to supplement this Regulation with the following further modules:

(a) Subsidies or support measures potentially harmful for the environment;

(b) Water Accounts (quantitative and qualitative);

(d) Circular material use rate;

(e) Climate mitigation, based on the outcome of the study;

(f) Climate adaptation;

(g) Protection and restoration of biodiversity and ecosystems;

(h) Pollution prevention and control;

(i) Resource Management Expenditure Accounts, including critical raw material;

(j) Environmental footprint.

Or. en

Amendment 12

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 691/2011

Article 3 – paragraph 4a

Text proposed by the Commission

Amendment

4a. The Commission (Eurostat) shall carry out a methodological and feasibility study on the monetary valuation of ecosystem services. Based on the results of this study, the Commission may supplement this Regulation in order to define, by means of a delegated act, for which of the ecosystem services already included in the reporting tables in section 5 of Annex IX monetary values shall be reported, the first reference year as well as a list of acceptable methods for establishing these monetary values.;

4a. By ... [one year after the date of entry into force of this Regulation] the Commission (Eurostat) shall publish a methodological and feasibility study on the monetary valuation of ecosystem services. Based on the results of this study, the Commission shall by ... [2 years after the date of entry into force of this Regulation] supplement this Regulation in order to define, by means of a delegated act, for which of the ecosystem services already included in the reporting tables in section 5 of Annex IX monetary values shall be reported, the first reference year as well as a list of acceptable methods for establishing these monetary values.;

Or. en

Amendment 13

Proposal for a regulation

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

Regulation (EU) No 691/2011

Article 3 – paragraph 4 b (new)

Text proposed by the Commission

Amendment

(ba) the following paragraph is inserted:

‘4b. By ... [one year after the date of entry into force of this Regulation] the Commission (Eurostat) shall publish a study on the further development of the ecosystem accounts module. The study shall include an assessment of reporting values where those values are missing and possible alternative ways of measuring for Ecosystem services Accounts.’

Or. en

Amendment 14

Proposal for a regulation

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

Regulation (EU) No 691/2011

Article 3 – paragraph 4 c (new)

Text proposed by the Commission

Amendment

(b b) the following paragraph is inserted:

‘4c. By ... [one year after the date of entry into force of this Regulation], the Commission shall publish a study analysing the reporting values currently included in the regulation for Climate change with a view to strengthening this Regulation by creating a dedicated climate adaptation module to ensure that all reporting values to deliver the European Green Deal and European Climate Law objectives, the Fit for 55 package and the Net Zero Industry Act are provided by Member States. The study shall be accompanied by an indicative timeline.’

Or. en

Amendment 15

Proposal for a regulation

Article 1 – paragraph 1 – point 2 – point b c (new)

Regulation (EU) No 691/2011

Article 3 – paragraph 4 d (new)

Text proposed by the Commission

Amendment

(bc) the following paragraph is inserted:

‘4d. The Commission is empowered to adopt delegated acts in accordance with Article 9 to amend the annexes in order to adapt and further develop the modules.’

Or. en

Amendment 16

Proposal for a regulation

Article 1 – paragraph 1 – point 3

Regulation (EU) No 691/2011

Article 5 – paragraph 2 – subparagraph 2

Text proposed by the Commission

Amendment

Member States which decide to use the sources, methods or innovative approaches referred to in point (d) shall inform the Commission (Eurostat) during the year preceding the reference year during which the source, method or innovative approach will be introduced, and shall provide details concerning the quality of the data obtained. The Commission may advise Member States against using a specific innovative approach if it considers that the quality of the data risks not to be sufficient.;

Or. en

Amendment 17

Proposal for a regulation

Article 1 – paragraph 1 – point 5 – point a

Regulation (EU) No 691/2011

Article 9 – paragraph 2

Text proposed by the Commission

Amendment

2. The power to adopt delegated acts referred to in Article 3(3), (4) and (4a) shall be conferred on the Commission for a period of five years from 11 August 2011. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the 5-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

2. The power to adopt delegated acts referred to in Articles 3(1a) and 3(3), (4), (4a) and (4d) shall be conferred on the Commission for a period of five years from 11 August 2011. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the 5-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

Or. en

Amendment 18

Proposal for a regulation

Article 1 – paragraph 1 – point 5 – point a

Regulation (EU) No 691/2011

Article 9 – paragraph 3

Text proposed by the Commission

Amendment

3. The delegation of power referred to in Article 3(3), (4) and (4a) 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.

3. The delegation of power referred to in Articles 3(1a) and 3(3), (4), (4a) and (4d) 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.

Or. en

Amendment 19

Proposal for a regulation

Article 1 – paragraph 1 – point 5 – point b

Regulation (EU) No 691/2011

Article 9 – paragraph 5

Text proposed by the Commission

Amendment

5. A delegated act adopted pursuant to Article 3(3), (4) and (4a) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two 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 the Council.;

5. A delegated act adopted pursuant to Articles 3(1a) and 3(3), (4), (4a) and 4(d) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two 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 the Council.;

Or. en

Amendment 20

Proposal for a regulation

Article 1 – paragraph 1 – point 6 – introductory part

Text proposed by the Commission

Amendment

(6) in Article 10, the first hyphen point is replaced by the following:

(6) in Article 10, the first hyphen point is deleted.

Or. en

Amendment 21

Proposal for a regulation

Article 2 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

In order to achieve the objectives laid down in Regulation (EU) 2021/1119, Member States shall submit data regarding climate change mitigation as of 1 January 2025. The data provided on climate change mitigation investment shall integrate current investments and capital transfers by institutional sectors (including general government, corporations and households) for activities listed in Annex VI to Regulation (EU) 2021/241 for sectors listed in NACE Rev.2 (A*64 aggregation level), when relevant.

Or. en

Amendment 22

Proposal for a regulation

Annex I

Regulation (EU) No 691/2011

Annex VII – Section 4 – paragraph 2

Text proposed by the Commission

Amendment

(2) Statistics shall be transmitted within 21 months of the end of the reference year.

(2) Statistics shall be transmitted within 12 months of the end of the reference year.

Or. en

Amendment 23

Proposal for a regulation

Annex I

Regulation (EU) No 691/2011

Annex VIII – Section 4 – paragraph 2

Text proposed by the Commission

Amendment

(2) Statistics shall be transmitted within 24 months of the end of the reference year.

(2) Statistics shall be transmitted within 12 months of the end of the reference year.

Or. en

Amendment 24

Proposal for a regulation

Annex I

Regulation (EU) No 691/2011

Annex IX – Section 4 – paragraph 2

Text proposed by the Commission

Amendment

(2) Statistics shall be transmitted within 24 months of the end of the reference year.

(2) Statistics shall be transmitted within 12 months of the end of the reference year.

Or. en