Changes from report parliamentary committee draft to plenary report

RemovedA greater change can be achieved through further innovation, not regulation. A realistic EU climate policy must be compatible with global competitiveness and must not represent another round of drastic tightening.

AddedArticle 1 – paragraph 1 – point 2, Article 4 – paragraph 5 – point h: (h) the need to ensure and support a fair and just, pragmatic, cost-effective and socially balanced transition for all, taking into account different national circumstances and paying particular attention to impacts on consumer prices, energy and transport poverty and to regions and sectors, including their investment capacity, small and medium-sized enterprises, farmers and vulnerable households affected by the transition to climate neutrality;

RemovedPeace and security are unlikely to be climate neutral in the next decades. The EU and its Member States also have other priorities. Putting all eggs into one basket is not a solution for our continent.

AddedRegulation (EU) 2021/1119

RemovedThe introduction of a new binding emission target for 2040 is therefore completely unnecessary and will not be replicated by a large majority of global players. We therefore recommend rejecting the European Commission´s proposal.

AddedArticle 1 – paragraph 1 – point 2, Article 4 – paragraph 5 – point i: (i) simplification and reduction of administrative burden, technology neutrality, cost-effectiveness, economic efficiency, and economic security;

RemovedWe also recommend an urgent recalibration of existing EU climate policy, taking into account the EU´s competitiveness, cost effectiveness and the different needs of individual Member States, regions and economic sectors.

AddedRegulation (EU) 2021/1119

RemovedIt is crucial, that no new binding EU climate targets are proposed before the assessment of the achievement of the 2030 climate targets has been completed.

AddedArticle 1 – paragraph 1 – point 2, Article 4 – paragraph 5 – point j: (j) climate action as a driver for investment, innovation and increased competitiveness;

RemovedConclusion

AddedRegulation (EU) 2021/1119

RemovedIn summary, Europe is currently facing internal and external security challenges, economic challenges and a generally tense and uncertain geopolitical situation. Therefore, under these circumstances, the proposal to set a new, additional binding climate target for 2040 appears to be more of an ideological experiment without solid reasons and definitely not a realistic plan. The Commission´s proposal seems even more inappropriate given that other major economies around the world have not implemented comparable targets for 2040. The EU wants to be a leader once again but we cannot see ourselves as a leader, if we are going alone in the wrong direction.

AddedArticle 1 – paragraph 1 – point 2, Article 4 – paragraph 5 – point k: (k) the need to strengthen the resilience and global competitiveness of the Union’s economy and reduce risk of carbon leakage, in particular for small and medium-sized enterprises and industrial sectors that are most exposed to carbon leakage, including in relation to exports, so as to ensure fair competition;

RemovedAs rapporteur, I therefore call for this legislative proposal on the new, additional legally binding climate target for 2040 to be rejected in order to free up capacity for a clear change of course towards market-based, socially just and environmentally sound policies.

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 2, Article 4 – paragraph 5 – point m: (m) energy availability and affordability, security of supply, energy security, energy efficiency including the ‘energy efficiency first’ principle, as well as strengthening of electricity grids and interconnections with a view to building a genuine Energy Union and promoting domestically produced energy;

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 2, Article 4 – paragraph 5 – point m a (new): (m a) the role of zero-, low carbon and renewable fuels in the decarbonisation of transport, including road transport beyond 2030 and concrete measures to assist heavy duty vehicles manufacturers to reach their targets, taking into account European content;

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 2, Article 4 – paragraph 5 – point o: (o) the need to ensure environmental effectiveness and progression over time, while also safeguarding social cohesion as well as ensuring food security and a just transition;

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 2, Article 4 – paragraph 5 – point p: deleted

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 2, Article 4 – paragraph 5 – point q: (q) investment needs and opportunities, including access to public and private finance as well as support for innovation and access to innovative technologies across all Member States, taking into account geographical balance;

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 2, Article 4 – paragraph 5 – point r: (r) international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement and the ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC), as well as the support of the Union to its partners in addressing climate change and its impacts.

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 2 a (new), Article 4 – paragraph 8 (new): (2a) in Article 4, the following paragraph is added: / '8. Starting from one year after the adoption of this Regulation, the Commission shall biennially assess and report on the implementation of the intermediate targets and decarbonisation trajectories set out in this Regulation, taking into account the latest scientific evidence, technological advances and evolving challenges to and opportunities for the EU’s global competitiveness. The assessment may be accompanied, where appropriate, by legislative proposals.';

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 3 (new), Article 11 – paragraph 1 – point c (new): (3) in Article 11, first paragraph, the following points are added: / '(c) the evolving challenges to and opportunities for global competitiveness of European industries across Member States, in particular of energy-intensive industries and of small and medium-sized enterprises;';

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 3 (new), Article 11 – paragraph 1 – point c a (new): (ca) the evolution of energy prices and its impact on European industries and households;

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 3 (new), Article 11 – paragraph 1 – point c b (new): (cb) the socioeconomic impacts including the effects on employment;

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 3 (new), Article 11 – paragraph 1 – point d (new): (d) technological advances and deployment across Member States and sectors of innovative technologies;

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 3 (new), Article 11 – paragraph 1 – point e (new): (e) the estimated level of net removals at Union level in relation to the targets of this Regulation. If the Commission finds that the estimated level of net natural removals for 2040 is significantly diverging from what would be required to achieve the 2040 intermediate target, including where due to natural disturbances, the Commission shall propose, where appropriate, measures at Union level, including if necessary an adjustment of the 2040 intermediate target corresponding to and within the limits of the possible shortfalls, and ensure that possible shortfalls will not be at the expense of other economic sectors;

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 3 (new), Article 11 – paragraph 1 – point f (new): (f) the progress towards the intermediate targets set out in this Regulation.

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 3 (new), Article 11 – paragraph 1 – point g (new): (g) the flexibility for Member States to use high-quality international credits to fulfil up to 5% of their post-2030 targets and efforts in sectors that are not regulated in the EU ETS.

AddedRegulation (EU) 2021/1119

AddedArticle 1 – paragraph 1 – point 4 (new), Article 11 – paragraph 2: (4) In Article 11, the second paragraph is replaced by the following: / "The Commission’s report shall be accompanied, where appropriate, by legislative proposals to revise this Regulation, including the intermediate 2040 target, and by additional measures to strengthen the initiatives concerning the enabling framework supporting the continued effective implementation of this Regulation, in line with Article 4(5), and securing EU competitiveness, prosperity and social cohesion."

Added(32021R1119)

AddedArticle 1 a (new): Article 1a / Postponement of the operation of emissions trading for buildings, road transport and additional sectors / The operation of emissions trading for buildings, road transport and additional sectors set out in Chapter IVa of Directive 2003/87 is postponed until 2028. The rules set out in Article 30(k)(2) letters (a) to (e) of Directive 2003/87 shall apply. The provisions of Article 10a(8b) of Directive 2003/87 shall apply also in 2026.