Changes from report parliamentary committee draft to plenary report

Change 12

RemovedArticle 1 – paragraph 1 – point 1 – point e, Article 2 – paragraph 12: 12. The Union may conclude agreements with third countries or territories with a view to taking into account carbon pricing mechanisms in such countries or territories for the purposes of the application of Article 9 as well as the mutual recognition of third-country accreditation bodies for the accreditation of a legal person to be a verifier pursuant to Article 18. The Commission shall actively engage with third countries on the interoperability of carbon pricing systems and the alignment of monitoring, reporting and verification (MRV) systems;

AddedArticle 1 – paragraph 1 – point 1 – point d a (new), Article 2 – paragraph 9 – point c a (new): (da) in paragraph 9, the following point is added: / '(ca) the Commission has evidence that the exemption has resulted in the indirect importation into the Union of energy from sources subject to Union restrictive measures.';

Regulation (EU) 2023/956

Change 13

RemovedArticle 1 – paragraph 1 – point 3, Article 3 – paragraph 1 – point 35: (35) ‘abusive practices’ are practices pursued by an actor reporting actual emission values for the purpose of gaining a benefit by unduly avoiding, wholly or partially, the CBAM financial liability and thereby undermining the effectiveness of the CBAM to address the risk of carbon leakage in the EU.;

AddedArticle 1 – paragraph 1 – point 1 – point d b (new), Article 2 – paragraph 9 a (new): (db) the following paragraph is inserted: / '9a. The Commission shall make available on their website and update, as relevant, at least on an annual basis, all agreements, Memoranda of Understanding, roadmaps, commitments, and strategies referred to in paragraphs 7 and 7a, the full list of Union law covered by such documents, and the Commission’s assessments of the progress towards or the fulfilment of the conditions set out in paragraph 7 prior to the signing of the Memoranda of Understanding referred to in paragraph 7a and prior to the listing of the third countries in point 2 of Annex III referred to in paragraph 8.';

Regulation (EU) 2023/956

Change 14

RemovedArticle 1 – paragraph 1 – point 3, Article 3 – paragraph 1 – point 35 a (new): (35a) 'pre-consumer scrap’ means materials or objects generated unintentionally during the manufacturing process of a product, which are suitable for immediate reuse in another production process, and are not discarded or classified as waste under Directive 2008/98/EC.

AddedArticle 1 – paragraph 1 – point 1 – point e, Article 2 – paragraph 11: The Commission is empowered to adopt delegated acts in accordance with Article 28 in order to amend the lists of third countries or territories listed in point 1 or 2 of Annex III by adding or removing a third country or territory, depending on whether the conditions set out in paragraph 6, 7 or 9 of this Article are fulfilled in respect of that third country or territory, or as a consequence of the incorporation of the CBAM into the EEA Agreement.

Regulation (EU) 2023/956

Change 15

RemovedArticle 1 – paragraph 1 – point 5 – point c, Article 6 – paragraph 7 – subparagraph 1: The Commission shall monitor at Union level the impact of the CBAM on the Union internal market. Where the Commission, taking into account relevant information, including from customs import declarations and CBAM declarations, finds that there is sufficient evidence pointing towards a high risk of abusive practices for a combination of goods and origins, it may inform importers and authorised CBAM declarants about these risks, it may inform competent authorities and customs authorities about these risks with a view of increasing their level of control, and it is empowered to adopt delegated acts in accordance with Article 28 to supplement this Regulation by laying down the methods for the identification of the combination of goods and origins, the information to be declared for the use of actual emissions for those combinations of goods and origins as well as the evidence to be provided to demonstrate that no abuse has taken place. Measures for additional reporting obligations for those goods and origins identified as a high risk for abusive practices, shall be designed in a proportionate manner, time-limited and supported by regulatory guidance.

AddedArticle 1 – paragraph 1 – point 1 – point e, Article 2 – paragraph 12: The Union may conclude agreements with third countries or territories with a view to taking into account carbon pricing mechanisms in such countries or territories for the purposes of the application of Article 9 as well as the mutual recognition of third-country accreditation bodies for the accreditation of a legal person to be a verifier pursuant to Article 18. The Commission shall actively engage with third countries on the interoperability of carbon pricing systems and the alignment of monitoring, reporting and verification (MRV) systems;

Regulation (EU) 2023/956

Change 16

AddedArticle 1 – paragraph 1 – point 1 – point e a (new), Article 2 – paragraph 12 a (new): (ea) the following paragraph is added: / '12a. A Member State may request the Commission to authorise a temporary derogation of the application of this Regulation for goods listed in Annex I imported into such outermost regions referred to in Article 349 TFEU and destined exclusively for local consumption or local processing. / The temporary derogation referred to in the first paragraph (the ‘request’) shall be granted only where the Member State demonstrates, on the basis of verifiable evidence, that: / (a) application of this Regulation would entail disproportionate socio-economic impacts in the outermost region concerned; / (b) no viable alternative supply from within the customs territory of the Union or domestic sources is available in the short term; and / (c) neither the goods nor the products concerned can subsequently be introduced into the customs territory of the Union. / The request shall be accompanied by a binding transition plan setting out a phased timetable for progressively reducing dependence on the imports concerned, with measurable indicators, in line with the environmental objectives of this Regulation. / The Member State shall notify the Commission and the other Member States of the request sufficiently in advance specifying the products, territories, justification, and measures aimed at preserving the integrity of the CBAM and preventing any form of circumvention. / The Commission shall adopt a decision authorising or refusing the request within two mo…

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 1 a (new), Article 2a – paragraph 1 a (new): (1a) in Article 2a, the following paragraph is inserted: / '1a. For importers for distance sales, the single mass-based threshold laid down in point A of Annex VII shall apply to the aggregated net mass of all goods covered by Annex I imported during the relevant calendar year, irrespective of the number of individual consignments imported by the final consumers.';

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 2 a (new), Article 2a – paragraph 3 a (new): (2a) in Article 2a, the following paragraph is inserted: / '3a. By 30 April of each calendar year, the Commission shall assess, on the basis of import data and embedded emissions data disaggregated by CN code for the preceding 12 calendar months, whether the application of the single mass-based threshold leads to the exclusion of goods representing more than (2%) of the embedded emissions associated with the goods covered under a given CN code. Where such threshold is found to undermine the effectiveness of the mechanism, creates incentives for circumvention or carbon leakage, or distort the level playing field within the internal market, the Commission shall present a report to the Parliament and the Council accompanied by a legislative proposal where appropriate.’;

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 2 b (new), Article 2 b (new): (2b) the following Article is inserted: / ‘Article 2b / The Commission shall adopt implementing acts specifying conditions under which simplified reporting obligations are to be applied to LDCs. Those simplified reporting obligations shall aim in particular to facilitate the market participation of small and medium operators in LDCs, while maintaining reliable reporting, upholding climate integrity, and paying particular attention to avoiding circumvention. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).’;

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 2 c (new), Article 3 – point 15: (2c) in Article 3, point 15 is replaced by the following: / "(15) ‘importer’ means / a) the person lodging a customs declaration for release for free circulation of goods or a bill of discharge in accordance with Article 175(5) of Delegated Regulation (EU) 2015/2446 in its own name and on its own behalf or, / b) where the customs declaration is lodged by an indirect customs representative in accordance with Article 18 of Regulation (EU) No 952/2013, the person on whose behalf such a declaration is lodged, or / c) in the case of distance sales, the importer for distance sales as defined in Article 5(14) of Regulation (EU) …/… [reference to be added after adoption cf. COM(2023) 258 final]; / " ;

Added(32023R0956)

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 2 d (new), Article 3 – point 15a (new): (3a) in Article 3, the following point is added: / ‘(15a) distance sales’ means distance sales of goods imported from third countries or third territories as defined in Article 14(4), point (2), of Directive 2006/112/EC.’;

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 2 e (new), Article 3 – point 34 a (new): (2e) in Article 3, the following point is added: / '(34a) resource shuffling' means any reorganisation of production, sales or supply chain patterns that redirects existing lower-emission goods to the Union market while shifting higher-emission goods elsewhere, without creating new and verifiable low-carbon capacity and without any net reduction in greenhouse gas emissions at producer level in the country of origin;’;

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 3, Article 3 – point 35: (35) ‘abusive practices’ are practices pursued by an actor for the purpose of gaining a benefit by unduly avoiding, wholly or partially, the CBAM financial liability and thereby undermining the effectiveness of the CBAM to address the risk of carbon leakage in the EU. It includes, but is not limited to, resource shuffling.

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 3 a (new), Article 3 – paragraph 1 – point 35 a (new): (3a) in Article 3, the following point is added: / ‘(35a) pre-consumer aluminium scrap’ means an aluminium co-product generated in the production process of metal goods and immediately reusable in a production process, and not discarded or classified as waste under Directive 2008/98/EC.’;

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 3 b (new), Article 5 – paragraph 1: (3b) in Article 5, paragraph 1 is replaced by the following: / "1. Any importer established in a Member State and any importer for distance sales shall, prior to importing goods into the customs territory of the Union, apply for the status of authorised CBAM declarant (“application for an authorisation”). / " ;

Added(32023R0956)

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 3 c (new), Article 5 – paragraph 2: (3c) in Article 5, paragraph 2 is replaced by the following: / "2. Where an importer is not established in a Member State, and is not an importer for distance sales, the indirect customs representative shall obtain the status of authorised CBAM declarant, irrespective of whether the importer is exempted from the obligations under this Regulation pursuant to Article 2a. / " ;

Added(32023R0956)

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 5 – point a – point 1 a (new), Article 6 – paragraph 2 – point d a (new): (1a) the following point is added: / '(da) where the good is produced using post-consumer aluminium scrap, copies of verification reports, confirming that on-site inspections have concluded that the material used is post-consumer scrap;' ;

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 5 – point a – point 1 b (new), Article 6 – paragraph 2 – point d b (new): (1b) the following point is added: / '(db) where the good contains steel or aluminium scrap, whether from pre- or post-consumer scrap, details of the quantity of scrap contained in the good and whether this consists of pre-consumer scrap, post-consumer scrap, or a mix of both.’;

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 5 – point a – point 2, Article 6 – paragraph 2 – point e: (e) where applicable for the purpose of addressing the risk of misdeclaration resulting from the lack of supply chain traceability, evidence that the goods imported during the preceding calendar year were produced at the declared installation and at the actual time of production referred to in the CBAM declaration, and where relevant, information on the installation of where "melt and pour" took place;

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 5 – point a – point 2, Article 6 – paragraph 2 – point f: (f) for a combination of good and origin identified to be at a high risk of abusive practices in the delegated acts adopted in accordance with paragraph 7, evidence demonstrating that no abusive practices have occurred, where CBAM declarants want to determine embedded emissions are determined on the basis of actual emissions;

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 5 – point b, Article 6 – paragraph 6: The Commission is empowered to adopt implementing acts concerning the standard format of the CBAM declaration, including detailed information for each step of the production chain, installation, including the production technology used, and country of origin or other third country and type of goods to be reported, which supports the totals referred to in paragraph 2 of this Article, in particular as regards embedded emissions, the carbon price paid, the default carbon price for the purpose of Article 9(4), the procedure for submitting the CBAM declaration via the CBAM registry, including procedures for the review of CBAM declarations in accordance with Article 19, and the arrangements for surrendering the CBAM certificates referred to in paragraph 2, point (c), of this Article, in accordance with Article 22(1), in particular as regards the process and the selection by the authorised CBAM declarant of certificates to be surrendered.;

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 5 – point c, Article 6 – paragraph 6 a: 6a. The Commission is empowered to adopt delegated acts listing the goods or combinations of goods and origins at high risk of abusive practices for which evidence is to be included in the CBAM declaration as laid down in paragraph 2, point (e), as well as the specific type of evidence to be provided. Those delegated acts shall be adopted in accordance with the examination procedure referred to in Article 28(2).

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 5 – point c, Article 6 – paragraph 7 – subparagraph 1: The Commission shall monitor at Union level the impact of the CBAM on the Union internal market with a view to assessing the risk of abusive practices undermining the effectiveness of the CBAM using, inter alia, relevant information, including from customs import declarations and CBAM declarations. / The Commission shall, for the purpose of identifying combinations of goods and origins at high risk of abusive practices, conduct an objective assessment that considers, at least, the following criteria: / (a) the low-carbon production capacity compared to the volumes exported to the Union and by examining the breakdown of production processes; / (b) progress in greenhouse gas reduction and the level of climate ambition, in particular where the country of origin applies a carbon pricing mechanism covering the relevant sector, and whether relevant climate policy measures are in place; / (c) the compliance with market economy rules, in particular as assessed through recognised indicators such as the OECD Product Market Regulation (PMR) indicator, the existence of EU anti-dumping or anti-subsidy measures in force against the country in the relevant sector pursuant to Regulations (EU) 2016/1036 and (EU) 2016/1037 / (d) a higher heterogeneity of emission intensities. / The Commission shall regularly review the combinations of goods and origins referred to in the second subparagraph. / For the combination of goods and countries of origin defined at high risk of abusive practices defaul…

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 6 – point c, Article 7 – paragraph 7 – subparagraph 2 a (new): The implementing acts referred to in the first subparagraph may provide a list of downstream goods for which, due to the complexity of the supply chain and without prejudice to the environmental integrity of the CBAM, no mark-up is to apply, on the basis of transparent and pre-defined criteria.

AddedRegulation (EU) 2023/956

AddedArticle 1 – paragraph 1 – point 6 a (new), Article 8: (6a) Article 8 is replaced by the following: / "Where it adopts the implementing acts referred to in the first subparagraph, the Commission shall seek equivalence and coherence with the procedures set out in Implementing Regulation (EU) 2018/2067. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2) of this Regulation. / Where on-site verification in a candidate country facing an exceptional and immediate security situation in line with Article 30(7) is not feasible due to safety or access constraints, the Commission shall allow for the application of default values without mark-up. / Moreover, the Commission shall provide technical assistance to competent authorities and operators in those countries, with a view to strengthening domestic emissions monitoring and verification systems and facilitating compliance with the monitoring, reporting and verification requirements of this Regulation. Such assistance may include capacity-building programmes, methodological guidance, digital tools and structured technical cooperation, including through the Technical Assistance and Information Exchange (TAIEX) instrument. / " ;

Added(32023R0956)

AddedRegulation (EU) 2023/956

Article 1 – paragraph 1 – point 7 – point b – point 1, Article 9 – paragraph 5 – subparagraph 1: The Commission is empowered to adopt implementing acts, based on the principle of equivalence, concerning the conversion of the yearly average carbon price effectively paid in accordance with paragraph 1 of this Article and of the yearly default carbon prices determined in accordance with paragraph 4 of this Article into a corresponding reduction of the number of CBAM certificates to be surrendered. Those acts shall also govern the conversion of the carbon price expressed in foreign currency into euro at the yearly average exchange rate, the evidence required of the actual payment of the carbon price, examples of any relevant rebate or other form of compensation referred to in paragraph 1 of this Article, the qualifications of the independent person referred to in paragraph 2 of this Article and the conditions to ascertain that person’s qualifications and independence. The qualifications mentioned in the previous paragraph shall include the granting of accreditation by a national accreditation body, the specification of the certification procedures, and the appropriate exchanges of information between the independent person, national accreditation bodies, the European Commission and competent authorities. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

Regulation (EU) 2023/956

Change 17

RemovedArticle 1 – paragraph 1 – point 17, Article 27a: deleted / (deleted) / (deleted) / (deleted)

AddedArticle 1 – paragraph 1 – point 7 a (new), Article 9 a (new): (7a) the following Article is inserted: / ‘Article 9a Trade, cooperation or other agreements concluded by the Union with third countries, unless specifically providing for linking with the EU ETS, shall not directly or indirectly exempt authorised CBAM declarants from obligations under this Regulation, lower the level of obligations applicable to goods covered by this Regulation, or contain provisions that could undermine the effective implementation of the CBAM or give rise to trade remedies in response to its application.’;