Sittings · Document

DRAFT OPINION (COM(2023)0161 – C90062/2023 – 2023/0081(COD)) 2023-06-01

On the proposal for a regulation of the European Parliament and of the Council Establishing a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem (Net Zero Industry Act)

Committee on International Trade · Rapporteur: Inma RodríguezPiñero

AMENDMENTS

The Committee on International Trade calls on the Committee on Industry, Research and Energy, as the committee responsible, to take the following into account:

Amendment 1

Proposal for a regulation

Recital 3

Text proposed by the CommissionAmendment
(3) Regarding external aspects, in particular regarding emerging markets and developing economies, the EU will seek win-win partnerships in the framework of its Global Gateway strategy, which contribute to the diversification of its raw materials supply chain as well as to partner countries’ efforts to pursue twin transition and develop local value addition.(3) Regarding external aspects, ensuring open and functioning global value chains will be a key element for a successful net-zero industry transformation that is inclusive and economically balanced. To this end, the EU trade policy both multilaterally in the framework of the WTO, and bilaterally with EU’s third country partners, should help to achieve environmental goals and fight against climate change, as well as to contribute to achieving the Sustainable Development Goals. The EU should also include comprehensive commodity chapters in future trade agreements, complemented by instruments of cooperative industrialisation committed to sustainability principles. In particular, regarding emerging markets and developing economies, the EU will seek win-win partnerships in the framework of its Global Gateway strategy, which contribute to the diversification of its raw materials supply chain as well as to partner countries’ efforts to pursue twin transition and develop local value addition.

Or. en

Amendment 2

Proposal for a regulation

Recital 4

Text proposed by the CommissionAmendment
(4) To fulfil those commitments, the Union must accelerate its pace of transition to clean energy, notably by increasing energy efficiency and the share of renewable energy sources. This will contribute to achieving the EU targets of the European Pillar of Social Rights Action Plan for 2030 of an employment rate of at least 78% and participation in training of at least 60% of adults. It will also contribute to ensuring that the green transition is fair and equitable34 .(4) To fulfil those commitments, the Union must accelerate its pace of transition to clean energy, notably by increasing energy efficiency and the share of renewable energy sources, while ensuring that this transformation remains inclusive and balanced. This will contribute to achieving the EU targets of the European Pillar of Social Rights Action Plan for 2030 of an employment rate of at least 78% and participation in training of at least 60% of adults. It will also contribute to ensuring that the green transition is fair and equitable34 .
____________________________________
34 Council Recommendation on ensuring a fair transition towards climate neutrality, adopted on 16 June 2022 as part of the Fit for 55 package.34 Council Recommendation on ensuring a fair transition towards climate neutrality, adopted on 16 June 2022 as part of the Fit for 55 package.

Or. en

Amendment 3

Proposal for a regulation

Recital 16

Text proposed by the CommissionAmendment
(16) The Union has helped build a global economic system based on open and rules-based trade, pushed for respecting and advancing social and environmental sustainability standards, and is fully committed to those values.(16) The Union has helped build a global economic system based on open, transparent and rules-based trade providing quality jobs, equal opportunities for all actors involved, pushing for respecting and advancing high social, labour and environmental sustainability standards, and is fully committed to those values. The Union aims at levelling the playing field and fight against unfair trading practices and production overcapacity to secure a fair competitive environment for EU industry, including for Net-Zero Industry Partnerships.

Or. en

Amendment 4

Proposal for a regulation

Recital 23

Text proposed by the CommissionAmendment
(23) In addition, the Communication on the Green Deal Industrial Plan for the Net-Zero Age42 sets out a comprehensive approach to support a clean energy technology scale up based on four pillars. The first pillar aims at creating a regulatory environment that simplifies and fast-tracks permitting for new net-zero technology manufacturing and assembly sites and facilitates the scaling up of the net-zero industry of the Union. The second pillar of the plan is to boost investment in and financing of net-zero technology production, through the revised Temporary Crisis and Transition Framework adopted in March 2023 and the creation of a European Sovereignty fund to preserve the European edge on critical and emerging technologies relevant to the green and digital transitions. The third pillar relates to developing the skills needed to make the transition happen and increase the number of skilled workers in the clean energy technology sector. The fourth pillar focuses on trade and the diversification of the supply chain of critical raw materials. That includes creating a critical raw materials club, working with like-minded partners to collectively strengthen supply chains and diversifying away from single suppliers for critical input.(23) In addition, the Communication on the Green Deal Industrial Plan for the Net-Zero Age sets out a comprehensive approach to support a clean energy technology scale up based on four pillars. The first pillar aims at creating a regulatory environment that simplifies and fast-tracks permitting for new net-zero technology manufacturing and assembly sites and facilitates the scaling up of the net-zero industry of the Union. The second pillar of the plan is to boost investment in and financing of net-zero technology production, through the revised Temporary Crisis and Transition Framework adopted in March 2023 and the creation of a European Sovereignty fund to preserve the European edge on critical and emerging technologies relevant to the green and digital transitions. The third pillar relates to developing the skills needed to make the transition happen and increase the number of skilled workers in the clean energy technology sector. The fourth pillar focuses on trade and the diversification of the supply chain of critical raw materials. That includes creating a critical raw materials club, working with like-minded partners to collectively strengthen supply chains and diversifying away from single suppliers for critical input, in full compliance with social, labour and environmental standards. The EU should foster collaboration and partnerships to promote secure, sustainable and ethical supply chains in open markets combating economic coercion, export restrictions and unjustified and unfair imposition of tariffs.
____________________________________
42 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions: A Green Deal Industrial Plan for the Net-Zero Age, COM/2023/62 final, 01.02.2023.42 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions: A Green Deal Industrial Plan for the Net-Zero Age, COM/2023/62 final, 01.02.2023.

Or. en

Amendment 5

Proposal for a regulation

Recital 30 a (new)

Text proposed by the CommissionAmendment
(30 a) In view of safeguarding a level playing field and reciprocity between European and third country entities and given the importance of ensuring an economically efficient green transition, the Commission should make sure that the relevant provisions of the International Procurement Instrument, Regulation (EU) 2022/1031, are applied when awarding contracts to third country entities in international public procurement procedures.

Or. en

Amendment 6

Proposal for a regulation

Recital 39

Text proposed by the CommissionAmendment
(39) As indicated in the Communication on the Green Deal Industrial Plan for the Net-Zero Age, published on 1 February 2023, the Union’s industry’s market shares are under strong pressure, due to subsidies in third countries which undermine a level playing field. This translates in a need for a rapid and ambitious reaction from the Union in modernising its legal framework.(39) As indicated in the Communication on the Green Deal Industrial Plan for the Net-Zero Age, published on 1 February 2023, the Union’s industry’s market shares are under strong pressure, due to subsidies in third countries which undermine a level playing field, bring production overcapacity and distort competition. This translates in a need for rapid and ambitious reaction from the Union in modernising its legal framework of trade defence instruments in order to compete globally defending open and fair trade by making full and efficient use of all available tools. The EU and the Member States shall work in coordination with other partners and multilateral organisations, notably the WTO, to promote more actively the rules-based multilateral trading system and to avoid entering a subsidy race.

Or. en

Amendment 7

Proposal for a regulation

Recital 70

Text proposed by the CommissionAmendment
(70) As part of the Green Deal Industrial Plan the Commission announced its intention to conclude Net-Zero Industrial Partnerships covering net-zero technologies, to adopt net-zero technologies globally and to support the role of EU industrial capabilities in paving the way for the global clean energy transition. The Commission and Member States may coordinate within the Platform the Partnerships, discussing existing relevant partnerships and processes, such as green partnerships, energy dialogues and other forms of existing bilateral contractual arrangements, as well as potential synergies with relevant Member States’ bilateral agreements with third countries.(70) As part of the Green Deal Industrial Plan the Commission announced its intention to conclude Net-Zero Industrial Partnerships covering net-zero technologies, to adopt net-zero technologies globally and to support the role of EU industrial capabilities in paving the way for the global clean energy transition. The Commission and Member States should coordinate within the Platform the Partnerships, discussing existing relevant partnerships and processes, such as green partnerships, energy dialogues and other forms of existing bilateral contractual arrangements, as well as potential synergies with relevant Member States’ bilateral agreements with third countries. Agreements with third countries including Net-Zero Industrial Partnerships should reflect core European values and objectives notably with regard to safeguarding labour and international environmental standards in these countries. Moreover, Net-Zero Industrial Partnerships should aim at contributing to the industrial transformation across the whole value chain of European and third country undertakings while ensuring open markets and fair trade.

Or. en

Amendment 8

Proposal for a regulation

Recital 71

Text proposed by the CommissionAmendment
(71) The Union should aim to diversify international trade and investments in net-zero technologies and to promote globally high social and environmental standards should be done in close cooperation and partnership with like-minded countries. Similarly, stronger research and innovation efforts to develop and deploy net-zero technologies should be pursued in close cooperation with partner countries in an open but assertive approach.(71) The Union should aim to diversify international trade and investments in net-zero technologies and to promote globally high social, labour and environmental standards should be done in close cooperation and partnership with like-minded countries via existing agreements or new strategic deals. Similarly, stronger research and innovation efforts to develop and deploy net-zero technologies should be pursued in close cooperation with partner countries in an open but assertive approach.

Or. en

Amendment 9

Proposal for a regulation

Recital 74 a (new)

Text proposed by the CommissionAmendment
(74 a) The objectives of the NZIA, its implementation, and the impact it will have throughout various sectors and levels of the economy, require active cooperation among the EU institutions. Democratic scrutiny is further needed in ensuring Commission’s accountability within the Platform as well as at all stages of NZ private-public partnerships and budget execution. To ensure its role, the European Parliament should be reported to by the Commission on regular basis, when at the same time, it should have the possibility to request information from the “Platform” when considered necessary, to better assess its debates or proceedings.

Or. en

Amendment 10

Proposal for a regulation

Recital 74 b (new)

Text proposed by the CommissionAmendment
(74 b) The European Commission shall engage at an early stage in information and communication with our trading partners in the implementation of the NZIA. The EU should address the concern among our partners about what is perceived as a potential protectionist industrial and trade policy.

Or. en

Amendment 11

Proposal for a regulation

Recital 74 c (new)

Text proposed by the CommissionAmendment
(74 c) To boost the production of clean energy technologies, trade and investment policy plays an essential role in promoting open and sustainable value chains, and in diversifying the supply of raw materials and intermediates critical to the transition. To this end, the Union should negotiate Strategic Industrial Partnerships with reliable partners and to fully apply the relevant trade defence instruments that correct and deter potential protectionist behaviour of suppliers and competitors also by means of reviewing administrative procedures and processing times. In order for trade policy to be efficiently implemented, the Union should assess and review its negotiating procedures for the conclusion, evaluation or modernisation of both trade and investment agreements.

Or. en

Amendment 12

Proposal for a regulation

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

Text proposed by the CommissionAmendment
b a) the reduction of strategic dependencies from third countries while safeguarding open, fair and sustainable trade.

Or. en

Amendment 13

Proposal for a regulation

Article 10 – paragraph 1 – point a

Text proposed by the CommissionAmendment
(a) the net-zero technology manufacturing project contributes to the technological and industrial resilience of the Union’s energy system by increasing the manufacturing capacity of a component or part in the net-zero technology value chain for which the Union heavily depends on imports coming from a single third country ;(a) the net-zero technology manufacturing project contributes to the technological and industrial resilience of the Union’s energy system by increasing the manufacturing capacity of a component or part in the net-zero technology value chain for which the Union heavily depends on imports coming from a single or more third countries;

Or. en

Amendment 14

Proposal for a regulation

Article 10 – paragraph 1 – point b – introductory part

Text proposed by the CommissionAmendment
(b) the net-zero technology manufacturing project has positive impact on the Union’s net-zero industry supply chain or downstream sectors, beyond the project promoter and the Member States concerned, contributing to the competitiveness and quality job creation of the Union’s net-zero industry supply chain, according to at least three of the following criteria:(b) the net-zero technology manufacturing project has positive impact on the Union’s net-zero industry supply chain or downstream sectors, beyond the project promoter and the Member States concerned, contributing to the competitiveness and quality job creation of the Union’s net-zero industry supply chain, according to at least two of the following criteria:

Or. en

Amendment 15

Proposal for a regulation

Article 10 – paragraph 1 – point b – point i

Text proposed by the CommissionAmendment
(i) it adds significant manufacturing capacity in the Union for net-zero technologies;(i) it adds significant manufacturing capacity in the Union for net-zero technologies without creating new strategic dependencies from third countries;

Or. en

Amendment 16

Proposal for a regulation

Article 10 – paragraph 1 – point b – point ii

Text proposed by the CommissionAmendment
(ii) it manufactures technologies with improved sustainability and performance;deleted

Or. en

Amendment 17

Proposal for a regulation

Chapter IV – title

Text proposed by the CommissionAmendment
IV Access to marketsIV Access to markets and global level playing field

Or. en

Amendment 18

Proposal for a regulation

Article 22 a (new)

Text proposed by the CommissionAmendment
Article 22 a
Strengthening global value chains for net-zero technologies
1. The Commission and the Member States shall implement a global commercial and investment strategy, both multilaterally in the framework of the WTO and bilaterally, to strengthen global value chains for net-zero technology in a way that rebalances trade relations, fosters the protection of Human Rights along supply chains, secures responsible and reliable imports, addresses overcapacity and trade distortions, and develops net-zero technologies while promoting high social, labour and environmental standards. The Commission, where appropriate, shall make full use of trade defence instruments to defend a fair, reciprocal and open trade, proceeding cautiously, transparently, efficiently and in a way that it is comprehensible and understandable to third parties.

Or. en

Amendment 19

Proposal for a regulation

Article 22 b (new)

Text proposed by the CommissionAmendment
Article 22 b
Net-Zero Industrial Partnerships
1. Without prejudice to existing trade and investment agreements between the Union and the third countries, the Commission shall enter into Net-Zero Industrial Partnerships with third countries.
2. Net-Zero Industrial Partnerships shall have the following objectives:
(a) safeguarding the availability of necessary resources and raw materials for the production of net-zero technologies, avoid overdependence on single suppliers and diversify the sources;
(b) ensuring a level playing field between European and third country undertakings including for public procurement procedures and access of European undertakings to third country tenders; reducing the administrative burden and simplifying permitting procedures;
(c) stimulating global public and private investments in net-zero technologies and to support clean tech manufacturing in third countries;
(d) contributing to the industrial transformation across the whole value chain of European and third country undertakings in an balanced way.
(e) stimulating innovation and knowledge transfer in line with Chapters V. and VI. of this regulation;
3. The Commission shall review Net-Zero Industrial Partnerships on a regular basis or upon request of the European Parliament and report on the progress to the relevant Parliamentary committees.
4. Member States shall support the Commission in the implementation of the cooperation measures set out in the Net-Zero Industrial Partnership.

Or. en

Amendment 20

Proposal for a regulation

Article 28 – paragraph 4 – introductory part

Text proposed by the CommissionAmendment
4. The Commission and Member States may coordinate within the Platform on the Net-Zero Industrial Partnerships and also with relevant third countries to help promote the adoption of net-zero technologies globally and to support the role of Union industrial capabilities in paving the way for the global clean energy transition, in line with the overall objectives of this Regulation stemming from Article 1 of this Regulation. The Platform may periodically discuss:4. The Commission and Member States shall coordinate within the Platform on the Net-Zero Industrial Partnerships and also with relevant third countries to help promote the adoption of net-zero technologies globally and to support the role of Union industrial capabilities in paving the way for the global clean energy transition, in line with the overall objectives of this Regulation stemming from Article 1 of this Regulation. The Platform shall periodically discuss:

Or. en

Amendment 21

Proposal for a regulation

Article 28 – paragraph 4 – point b a (new)

Text proposed by the CommissionAmendment
(b a) how to ensure market access for European undertakings to public procurements of third countries falling under the scope of Regulation (EU) 2022/1031;

Or. en

Amendment 22

Proposal for a regulation

Article 28 – paragraph 5

Text proposed by the CommissionAmendment
5. Member States shall support the Commission in the implementation of the cooperation measures set out in the Net-Zero Industrial Partnership. Net-Zero Industrial Partnerships will have the objective of facilitating trade among participants, including by favouring necessary investments within the Union and in third countries, enhancing resilience and sustainability of the supportive value chains, and guaranteeing a level playing field.deleted

Or. en

Justification

Deleted because it was integrated in art. 22b.

Amendment 23

Proposal for a regulation

Article 29 – paragraph 1

Text proposed by the CommissionAmendment
1. The Platform shall be composed Member States and of the Commission. It shall be chaired by a representative of the Commission.1. The Platform shall be composed by Member States and of the Commission. It shall be chaired by a representative of the Commission. The European Parliament shall be an observer of the Platform. Members of the European Parliament will be invited to attend its meetings, including of the standing or temporary sub-groups referred to in paragraph 6.

Or. en