### 3. the mechanism will progressively become an alternative to the mechanisms established under directive 2003/87/ec to prevent the risk of carbon leakage , notably the allocation of allowances free of charge in accordance with article 10a of that directive. ### 3. the mechanism should progressively become an alternative to the mechanisms established under directive 2003/87/ec to prevent the risk of carbon leakage , notably the allocation of allowances free of charge in accordance with article 10a of that directive , if it proves effective at preventing the risk of carbon leakage both during imports into the eu customs area , and during exports from this area; until the test period shows such efficacy , the mechanism will not affect the issue of free allowances under the eu ets , which will remain at the same level during this period.


### 3. the mechanism will progressively become an alternative to the mechanisms established under directive 2003/87/ec to prevent the risk of carbon leakage , notably the allocation of allowances free of charge in accordance with article 10a of that directive. ### deleted


### 11. the commission is empowered to adopt delegated acts in accordance with article 28 to amend the lists in annex ii , sections a or b , depending on whether the conditions in paragraphs 5 , 7 or 9 are satisfied. ### deleted


### 11. the commission is empowered to adopt delegated acts in accordance with article 28 to amend the lists in annex ii , sections a or b , depending on whether the conditions in paragraphs 5 , 7 or 9 are satisfied. ### 11. if a third country is committed to decarbonisation processes that should result in the adoption of emission trading system similar to the eu ets , the importation of goods originating in that country shall be exempt from the application of the cbam , provided all of the following conditions are satisfied:


### 11. the commission is empowered to adopt delegated acts in accordance with article 28 to amend the lists in annex ii , sections a or b , depending on whether the conditions in paragraphs 5 , 7 or 9 are satisfied. ### 11. the commission is empowered to adopt delegated acts in accordance with article 28 to amend the lists in annex ii , sections a or b , depending on whether the conditions in paragraphs 5 , 7 or 9 are satisfied.


### 1. any declarant shall , prior to importing goods as referred to in article 2 , apply to the competent authority at the place where it is established , for an authorisation to import those goods into the customs territory of the union. ### 1. any declarant shall , prior to importing goods as referred to in article 2 , apply to the commission at the place where it is established , for an authorisation to import those goods into the customs territory of the union.


### 1. the competent authority may review the cbam declaration within the period ending with the fourth year after the year in which the declaration should have been submitted. the review may consist in verifying the information provided in the cbam declaration on the basis of the information communicated by the customs authorities in accordance with article 25(2) and any other relevant evidence , and on the basis of any audit deemed necessary , including at the premises of the authorised declarant. ### 1. the commission may review the cbam declaration within the period ending with the fourth year after the year in which the declaration should have been submitted. the review may consist in verifying the information provided in the cbam declaration on the basis of the information communicated by the customs authorities in accordance with article 25(2) and any other relevant evidence , and on the basis of any audit deemed necessary , including at the premises of the authorised declarant.


### 1. the commission shall collect the information necessary with a view to extending the scope of this regulation to indirect emissions and goods other than those listed in annex i , and develop methods of calculating embedded emissions based on environmental footprint methods. ### 1. the commission shall collect the information necessary with a view to monitoring the impact of the cbam mechanism on climate and environmental protection , on the competitiveness of the union economy , especially with regard to smes , on the viability of production facilities in the sectors covered by the regulation , on the structure and volume of union imports and on the costs incurred by the end customers. based on the results of monitoring this data , the commission shall study the feasibility and suitability of extending the scope of this regulation to indirect emissions and goods other than those listed in annex i , and develop methods of calculating embedded emissions based on environmental footprint methods.


### 2. before the end of the transitional period , the commission shall present a report to the european parliament and the council on the application of this regulation. the report shall contain , in particular , the assessment of the possibilities to further extend the scope of embedded emissions to indirect emissions and to other goods at risk of carbon leakage than those already covered by this regulation , as well as an assessment of the governance system. it shall also contain the assessment of the possibility to further extend the scope to embedded emissions of transportation services as well as to goods further down the value chain and services that may be subject to the risk of carbon leakage in the future. ### 2. before the end of the transitional period , the commission shall present a report to the european parliament and the council on the application of this regulation. the report shall contain , in particular , a thorough in-depth assessment of the impact on competitiveness of eu industry , including smes , and the possibilities to further extend the scope of embedded emissions to indirect emissions and to other goods at risk of carbon leakage than those already covered by this regulation , as well as an assessment of the governance system. it shall also contain the assessment of the possibility to further extend the scope to embedded emissions of transportation services as well as to goods further down the value chain and services that may be subject to the risk of carbon leakage in the future. the report should also analyse whether the obligations set out in this regulation have led to changes in the prices of individual products in the union.


### 2. before the end of the transitional period , the commission shall present a report to the european parliament and the council on the application of this regulation. the report shall contain , in particular , the assessment of the possibilities to further extend the scope of embedded emissions to indirect emissions and to other goods at risk of carbon leakage than those already covered by this regulation , as well as an assessment of the governance system. it shall also contain the assessment of the possibility to further extend the scope to embedded emissions of transportation services as well as to goods further down the value chain and services that may be subject to the risk of carbon leakage in the future. ### 2. before the end of the transitional period , the commission shall present a report to the european parliament and the council on the application of this regulation. the report shall contain , in particular , an in-depth assessment of the impact on competitiveness of the eu industry and the possibilities to further extend the scope of embedded emissions to indirect emissions and to other goods at risk of carbon leakage than those already covered by this regulation , as well as an assessment of the governance system. it shall also contain the assessment of the possibility to further extend the scope to embedded emissions of transportation services as well as to goods further down the value chain and services that may be subject to the risk of carbon leakage in the future.


### fertilisers ### deleted


### accounts in the national registries ### accounts in the central eu registry


### 1. the competent authority shall assign to each authorised declarant a unique cbam account number. ### 1. the commission shall assign to each authorised declarant a unique cbam account number. the commission shall determine the fee for opening and managing a cbam account in the registry , as envisaged in the eu ets.


### 3. the competent authority shall set up the account as soon as the authorisation referred to in article 17(1) is granted and notify the authorised declarant thereof. ### 3. the commission shall set up the account as soon as the authorisation referred to in article 17(1) is granted and notify the authorised declarant thereof.


### 4. if the authorised declarant has ceased its economic activity or its authorisation was revoked , the competent authority shall close the account of that declarant. ### 4. if the authorised declarant has ceased its economic activity or its authorisation was revoked , the commission shall close the account of that declarant.


### 1. the competent authority shall authorise a declarant who submits an application for authorisation in accordance with article 5(1) , if the following conditions are fulfilled: ### 1. the commission shall authorise a declarant who submits an application for authorisation in accordance with article 5(1) , if the following conditions are fulfilled:


### a) the declarant has not been involved in a serious infringement or repeated infringements of customs legislation , taxation rules and market abuse rules and has no record of serious criminal offences relating to its economic activity during the five years preceding the application; ### the declarant has not been involved in a serious infringement or repeated infringements of customs legislation , circumvention of antidumping or antisubsidy duties , taxation rules and market abuse rules and has no record of serious criminal offences relating to its economic activity during the five years preceding the application;


### 2. where the competent authority finds that the conditions listed in paragraph 1 are not fulfilled , or where the applicant has failed to provide the information listed in article 5(3) , the authorisation of the declarant shall be refused. ### 2. where the commission finds that the conditions listed in paragraph 1 are not fulfilled , or where the applicant has failed to provide the information listed in article 5(3) , the authorisation of the declarant shall be refused.


### 3. if the competent authority refuses to authorise a declarant , the declarant requesting the authorisation may , prior to an appeal , object to the relevant authority under national law , who shall either instruct the national administrator to open the account or uphold the refusal in a reasoned decision , subject to requirements of national law that pursue a legitimate objective compatible with this regulation and are proportionate. ### 3. if the commission refuses to authorise a declarant , the declarant requesting the authorisation may object to the commission. after reconsideration , the commission shall open the account or uphold the refusal in a reasoned decision.


### 4. a decision of the competent authority authorising a declarant shall contain the following information ### 4. a decision of the commission authorising a declarant shall contain the following information


### 6. the competent authority shall require the provision of a guarantee in order to authorise a declarant in accordance with paragraph 1 , if the declarant was not established throughout the two financial years that precede the year when the application in accordance with article 5(1) was submitted. ### 6. the commission shall require the provision of a guarantee in order to authorise a declarant in accordance with paragraph 1 , if the declarant was not established throughout the two financial years that precede the year when the application in accordance with article 5(1) was submitted.


### the competent authority shall fix the amount of such guarantee at the maximum amount , as estimated by the competent authority , of the value of the cbam certificates that the authorised declarant have to surrender , in accordance with article 22. ### the commission shall fix the amount of such guarantee at the maximum amount , as estimated by the competent authority , of the value of the cbam certificates that the authorised declarant have to surrender , in accordance with article 22.


### 7. the guarantee shall be provided as a bank guarantee , payable at first demand , by a financial institution operating in the union or by another form of guarantee which provides equivalent assurance. where the competent authority establishes that the guarantee provided does not ensure , or is no longer certain or sufficient to ensure the amount of cbam obligations , it shall require the authorised declarant either to provide an additional guarantee or to replace the initial guarantee with a new guarantee , according to its choice. ### 7. the guarantee shall be provided as a bank guarantee , payable at first demand , by a financial institution operating in the union or by another form of guarantee which provides equivalent assurance. where the commission establishes that the guarantee provided does not ensure , or is no longer certain or sufficient to ensure the amount of cbam obligations , it shall require the authorised declarant either to provide an additional guarantee or to replace the initial guarantee with a new guarantee , according to its choice.


### 8. the competent authority shall release the guarantee immediately after 31 may of the second year in which the authorised declarant has surrendered cbam certificates in accordance with article 22. ### 8. the commission shall release the guarantee immediately after 31 may of the second year in which the authorised declarant has surrendered cbam certificates in accordance with article 22.


### 9. the competent authority shall revoke the authorisation for a declarant who no longer meets the conditions laid down in paragraph 1 , or who fails to cooperate with that authority. ### 9. the commission shall revoke the authorisation for a declarant who no longer meets the conditions laid down in paragraph 1 , or who fails to cooperate with that authority.


### 2. where a cbam declaration in accordance with article 6 has not been submitted , the competent authority of the member state of establishment of the authorised declarant shall assess the cbam obligations of that declarant on the basis of the information at its disposal and calculate the total number of cbam certificates due at the latest by the 31 december of the fourth year following that when the cbam declaration should have been submitted. ### 2. where a cbam declaration in accordance with article 6 has not been submitted , the commission shall assess the cbam obligations of that declarant on the basis of the information at its disposal and calculate the total number of cbam certificates due at the latest by the 31 december of the fourth year following that when the cbam declaration should have been submitted.


### 3. where the competent authority has established that the declared number of cbam certificates to be surrendered is incorrect , or that no cbam declaration has been submitted pursuant to paragraph 2 , it shall adjust the number of cbam certificates due by the authorised declarant. the competent authority shall notify the authorised declarant of the adjustment and request that the authorised declarant shall surrender the additional cbam certificates within one month. ### 3. where the commission has established that the declared number of cbam certificates to be surrendered is incorrect , or that no cbam declaration has been submitted pursuant to paragraph 2 , it shall adjust the number of cbam certificates due by the authorised declarant. the commission shall notify the authorised declarant of the adjustment and request that the authorised declarant shall surrender the additional cbam certificates and pay the correction fee within one month.


### 5. where cbam certificates have been surrendered in excess of the number due , the competent authority shall , without delay , reimburse the authorised declarant the value of cbam certificates surrendered in excess , calculated at the average price paid for cbam certificates by the authorised declarant during the year of import. ### 5. where cbam certificates have been surrendered in excess of the number due , the commission shall , without delay , reimburse the authorised declarant the value of cbam certificates surrendered in excess , calculated at the average price paid for cbam certificates by the authorised declarant during the year of import.


### 1. the competent authority of each member state shall sell cbam certificates to declarants authorised in that member state at the price calculated in accordance with article 21. ### 1. the commission shall sell cbam certificates to authorised declarants at the price calculated in accordance with article 21.


### 2. the competent authority shall ensure that each cbam certificate is assigned a unique unit identification code upon its creation and shall register the unique unit identification number , the price and date of sale of the certificate in the national registry in the account of the authorised declarant purchasing it. ### 2. the commission shall ensure that each cbam certificate is assigned a unique unit identification code upon its creation and shall register the unique unit identification number , the price and date of sale of the certificate in the central eu registry in the account of the authorised declarant purchasing it.


### 1. the commission shall calculate the price of cbam certificates as the average price of the closing prices of eu ets allowances on the common auction platform in accordance with the procedures laid down in commission regulation (eu) no 1031/201054 for each calendar week. ### 1. the commission shall calculate the price of cbam certificates as the average eu ets settlement price on the common auction platform in accordance with the procedures laid down in commission regulation (eu) no 1031/201054 for each calendar week.


### 1. by 31 may of each year , the authorised declarant shall surrender a number of cbam certificates to the competent authority that corresponds to the embedded emissions declared in accordance with article 6(2)(c) and verified in accordance with article 8 for the calendar year preceding the surrender. ### 1. by 31 may of each year , the authorised declarant shall surrender a number of cbam certificates to the commission that corresponds to the embedded emissions declared in accordance with article 6(2)(c) and verified in accordance with article 8 for the calendar year preceding the surrender.


### 3. where the competent authority finds that the number of cbam certificates in the account of an authorised declarant is not in compliance with the obligations pursuant to paragraph 2 , second sentence , that authority shall notify the adjustment and request that the authorised declarant surrenders the additional cbam certificates within one month. ### 3. where the commission finds that the number of cbam certificates in the account of an authorised declarant is not in compliance with the obligations pursuant to paragraph 2 , second sentence , that authority shall notify the adjustment and request that the authorised declarant surrenders the additional cbam certificates within one month.


### 1. the competent authority of each member state shall , on request by a declarant authorised in that member state , re-purchase the excess of cbam certificates remaining on the account of the declarant in the national registry after the certificates have been surrendered in accordance with article 22. the request to re-purchase shall be submitted by 30 june of each year when cbam certificates were surrendered. ### 1. the commission shall , on request by an authorised declarant , re-purchase the excess of cbam certificates remaining on the account of the declarant in the central eu registry after the certificates have been surrendered in accordance with article 22. the request to re-purchase shall be submitted by 30 june of each year when cbam certificates were surrendered.


### by 30 june of each year , the competent authority of each member state shall cancel any cbam certificates that were purchased during the year before the previous calendar year and that remained in the accounts in the national registry of the declarants authorised in that member state. ### by 30 june of each year , the commission shall cancel any cbam certificates that were purchased during the year before the previous calendar year and that remained in the accounts in the national registry of the authorised declarants.


### 1. the customs authorities shall not allow the importation of goods unless the declarant is authorised by a competent authority at the latest at the release for free circulation of the goods. ### 1. the customs authorities shall not allow the importation of goods unless the declarant is authorised by the commission at the latest at the release for free circulation of the goods.


### 2. the customs authorities shall periodically communicate information on the goods declared for importation , which shall include the eori number and the cbam account number of the declarant , the 8-digit cn code of the goods , the quantity , the country of origin , the date of declaration and the customs procedure , to the competent authority of the member state where the declarant has been authorised. ### 2. the customs authorities shall periodically communicate information on the goods declared for importation , which shall include the eori number and the cbam account number of the declarant , the 8-digit cn code of the goods , the quantity , the country of origin , the date of declaration and the customs procedure , to the commission.


### 4. the customs authorities may communicate in accordance with article 12(1) of regulation (eu) no 952/2013 , confidential information acquired by the customs authorities in the course of performing their duty or provided on a confidential basis , to the competent authority of the member state where the declarant has been authorised. the competent authorities of the member states shall treat and exchange this information in accordance with council regulation (ec) no 515/97. ### 4. the customs authorities may communicate in accordance with article 12(1) of regulation (eu) no 952/2013 , confidential information acquired by the customs authorities in the course of performing their duty or provided on a confidential basis , to the commission. the commission shall treat and exchange this information in accordance with council regulation (ec) no 515/97.


### 3. payment of the penalty shall in no case release the authorised declarant from the obligation to surrender the outstanding number of cbam certificates in a given year to the competent authority of the member state where the declarant has been authorised. ### 3. payment of the penalty shall in no case release the authorised declarant from the obligation to surrender the outstanding number of cbam certificates in a given year to the commission.


### 4. if the competent authority determines that an authorised declarant has failed to comply with the obligation to surrender cbam certificates as specified in paragraph 1 , or that a person has introduced goods into the customs territory of the union as specified in paragraph 2 , the competent authority shall impose the penalty and notify the authorised declarant or , in the situation under paragraph 2 , the person: ### 4. if the competent authority determines that an authorised declarant has failed to comply with the obligation to surrender cbam certificates as specified in paragraph 1 or 1a , or that a person has introduced goods into the customs territory of the union as specified in paragraph 2 , the competent authority shall impose the penalty and notify the authorised declarant or , in the situation under paragraph 2 , the person:


### 1. the commission shall take action , based on relevant and objective data , in accordance with this article , to address practices of circumvention of this regulation. ### 1. the commission shall take action on its own initiative or at the request of the member state , based on relevant and objective data , in accordance with this article , to address practices of circumvention of this regulation.


### 4. the notification referred to in paragraph 3 shall state the reasons on which it is based and shall include relevant data and statistics regarding the goods and products referred to in paragraph 2. ### 4. the notification referred to in paragraph 3 shall state the reasons on which it is based and , if possible , shall include relevant data and statistics regarding the goods and products referred to in paragraph 2.


### 2. the power to adopt delegated acts referred to in articles 2(10) , 2(11) , 18(3) and 27(5) shall be conferred on the commission for an indeterminate period of time. ### 2. the power to adopt delegated acts referred to in articles 2(10) , 2(14) , 18(3) and 27(5) shall be conferred on the commission for an indeterminate period of time.


### 3. the delegation of power referred to in articles 2(10) , 2(11) , 18(3) and 27(5) may be revoked at any time by the european parliament or by the council. ### 3. the delegation of power referred to in articles 2(10) , 2(14) , 18(3) and 27(5) may be revoked at any time by the european parliament or by the council.


### 7. a delegated act adopted pursuant to articles 2(10) , 2(11) , 18(3) and 27(5) shall enter into force only if no objection has been expressed either by the european parliament or by the council within a period of two months of notification of that act to the european parliament and to 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. ### 7. a delegated act adopted pursuant to articles 2(10) , 2(14) , 18(3) and 27(5) shall enter into force only if no objection has been expressed either by the european parliament or by the council within a period of two months of notification of that act to the european parliament and to 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.


### (39) the cbam should be based on a declarative system where an authorised declarant , who may represent more than one importer , submits annually a declaration of the embedded emissions in the goods imported to the customs territory of the union and surrenders a number of cbam certificates corresponding to those declared emissions. ### (39) the cbam should be based on a declarative system where a declarant submits annually a declaration of the embedded emissions in the goods imported to the customs territory of the union and surrenders a number of cbam certificates corresponding to those declared emissions.


### 12. the union , may conclude agreements with third countries with a view to take account of carbon pricing mechanisms in these countries in the application of article 9. ### 12. a third country satisfying the conditions set out in paragraph 11 , points (a) to (f) , shall be listed in annex ii , section c , of this regulation , and shall submit two reports on the fulfilment of the conditions pursuant to paragraph 7 , points (a) to (f) , one before 1 july 2025 and another before 1 july 2029. by 31 december2025 and by 31 december 2029 , the commission shall assess , notably on the basis of the roadmap pursuant to paragraph 11 , point (c) , and the reports received from the third country , whether that third country continues to respect the conditions set out in paragraph 11.


### f) information necessary to demonstrate the declarant’s financial and operational capacity to fulfil its obligations under this regulation and , if decided by the competent authority on the basis of a risk assessment , supporting documents confirming that information , such as the profit and loss account and the balance sheet for up to the three last financial years for which the accounts were closed; ### information necessary to demonstrate the declarant’s financial and operational capacity to fulfil its obligations under this regulation and , if decided by the commission on the basis of a risk assessment , supporting documents confirming that information , such as the profit and loss account and the balance sheet for up to the three last financial years for which the accounts were closed;


### 5. the authorised declarant shall inform the competent authority without delay of any changes of the information provided under paragraph 3 , arising after the decision was taken , which may influence the decision taken pursuant to article 17 or content of the authorisation in accordance with article 17. ### 5. the authorised declarant shall inform the commission without delay of any changes of the information provided under paragraph 3 , arising after the decision was taken , which may influence the decision taken pursuant to article 17 or content of the authorisation in accordance with article 17.


### 6. the commission is empowered to adopt implementing acts , concerning the standard format of the application and the delays and procedure to be followed by the competent authority when processing applications for authorisation in accordance with paragraph 1 and the rules for identification by the competent authority of the declarants for the importation of electricity. those implementing acts shall be adopted in accordance with the examination procedure referred to in article 29(2). ### 6. the commission is empowered to adopt implementing acts , concerning the standard format of the application and the delays and procedure to be followed when processing applications for authorisation in accordance with paragraph 1 and the rules for identification of the declarants for the importation of electricity. those implementing acts shall be adopted in accordance with the examination procedure referred to in article 29(2).


### 1. by 31 may of each year , each authorised declarant shall submit a declaration (‘cbam declaration’) , for the calendar year preceding the declaration , to the competent authority. ### 1. by 31 may of each year , each authorised declarant shall submit a declaration (‘cbam declaration’) , for the calendar year preceding the declaration , to the commission.


### 2. the authorised declarant shall keep records of the documentation , certified by an independent person , required to demonstrate that the declared embedded emissions were subject to a carbon price in the country of origin of the goods and keep evidence of the proof of the actual payment for that carbon price which should not have been subject to an export rebate or any other form of compensation on exportation. ### 2. the authorised declarant shall keep records of the documentation , certified by a ‘verifier’ , as referred to in the regulations issued pursuant to article 15 of directive 2003/87/ec , required to demonstrate that the declared embedded emissions were subject to a carbon price in the country of origin of the goods and keep evidence of the proof of the actual payment for that carbon price which should not have been subject to an export rebate or any other form of compensation on exportation.


### 4. the commission is empowered to adopt implementing acts establishing the methodology for calculating the reduction in the number of cbam certificates to be surrendered , regarding the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate in accordance with paragraph 1 , and regarding the qualifications of the independent person certifying the information as well as elements of proof of the carbon price paid and the absence of export rebates or other forms of compensation on exportation being applied as referred to in paragraph 2. those implementing acts shall be adopted in accordance with the examination procedure referred to in article 29(2). ### 4. the commission is empowered to adopt implementing acts establishing the methodology for calculating the reduction in the number of cbam certificates to be surrendered , regarding the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate in accordance with paragraph 1 , and elements of proof of the carbon price paid and the absence of export rebates or other forms of compensation on exportation being applied as referred to in paragraph 2. those implementing acts shall be adopted in accordance with the examination procedure referred to in article 29(2).


### 1. the commission shall , upon request by an operator of an installation located in a third country , register the information on that operator and on its installation in a central database referred to in article 14(4). ### 1. the commission shall register the information on operators of installations located in third countries and on those installations in a central database referred to in article 14(4).


### 6. the records referred to in paragraph 5 , point (c) , shall be sufficiently detailed to enable the verification in accordance with paragraph 5 , point (b) , and to enable any competent authority to review , in accordance with article 19(1) , the cbam declaration made by an authorised declarant to whom the relevant information was disclosed in accordance with paragraph 8. ### 6. the records referred to in paragraph 5 , point (c) , shall be sufficiently detailed to enable the verification in accordance with paragraph 5 , point (b) , and to enable any competent authority to review and verify , in accordance with article 19(1) , the cbam declaration made by an authorised declarant to whom the relevant information was disclosed in accordance with paragraph 8.


### 14 national registries and central database ### 14 central eu registry and central database


### 1. the competent authority of each member state shall establish a national registry of declarants authorised in that member state in the form of a standardised electronic database containing the data regarding the cbam certificates of those declarants , and to provide for confidentiality in accordance with the conditions set out in article 13. ### 1. a central eu registry of authorised declarants will be established in the form of a standardised electronic database containing the data regarding the cbam certificates of those declarants , and to provide for confidentiality in accordance with the conditions set out in article 13.


### 2. the database referred to in paragraph 1 shall contain accounts with information about each authorised declarant , in particular: ### 2. the database referred to in paragraph 1 shall contain accounts with information about each declarant , in particular:


### d) the number , the price of sale , the date of purchase , the date of surrender , or the date of re-purchase , or that of the cancellation by the competent authority , of cbam certificates for each authorised declarant. ### the number , the price of sale , the date of purchase , the date of surrender , or the date of re-purchase , or that of the cancellation by the commission , of cbam certificates for each authorised declarant.


### (47) contracting parties to the treaty establishing the energy community45 or parties to association agreements including deep and comprehensive free trade areas are committed to decarbonisation processes that should eventually result in the adoption of carbon pricing mechanisms similar or equivalent to the eu ets or in their participation in the eu ets. ### (47) contracting parties to the treaty establishing the energy community45 or parties to association agreements including deep and comprehensive free trade areas are committed to decarbonisation processes that should eventually result in the adoption of carbon pricing mechanisms similar to the eu ets should benefit from cbam exemption with regard to the goods originating in those countries provided that certain conditions are satisfied.


### 1. highlights the fact that the pandemic has demonstrated the need to accelerate the green and digital transitions of eu industry towards a more resilient economic and industrial model; stresses also that the eu’s dependence on hydrocarbons limits its capacity for political action; calls for the diversification of energy supply sources; ### 1. highlights the fact that recent pandemic and current yet another global crisis has clearly demonstrated that the continuous irrational process of forcing to raise up ambitions for the green transition is harmful for eu citizens and its industry; calls for a further diversification of energy supply sources , encompassing not only zero- but also low-carbon technologies (renewables , nuclear and ccus) in order achieve a more crisis and climate resilient economic and industrial model; stresses in this sense that the eu’s projected main dependence on hydrocarbons and inconsiderate pursue for climate neutrality limits its capacity for appropriate political action;


### 2. underlines that the eu cannot be dependent on non-eu countries for products and technologies that are essential to our economy and for our society of the future; stresses that the eu needs to regain a strong position in crucial global value chains and secure the supply of critical materials in times of crisis; ### 2. underlines that the eu cannot be dependent on non-eu countries for products and technologies that are essential to our economy and for our society of the future; stresses that the eu needs to regain a strong position in crucial global value chains and secure the supply of critical raw materials necessary for boosting investments in times of crisis;


### 6. calls for consideration to be given to a better sharing of added value in order to make work pay. ### 6. calls for consideration to be given to a better sharing of added value in order to make work pay , giving particular attention to the critical sectors , like energy , transport , industry , health and administration amongst others - which in fact maintain stability and safety of entire europe and each member states' economies and societies;


### 6. calls for consideration to be given to a better sharing of added value in order to make work pay. ### 6. calls on the commission and members states to considerate greater recognition and further redistribution of added value in order to make work really pay for citizens across european union;


### 7. welcomes the commission’s announcement issuing guidance on public procurement; stresses that public procurement is an essential instrument for national and economic security and for supporting the uptake of and demand for clean products; calls , in this regard , on the commission to review public procurement and competition rules where needed; ### 7. welcomes the commission’s announcement issuing guidance on public procurement; stresses that public procurement is an essential instrument for national and economic security and for supporting the uptake of and demand for clean products; calls , in this regard , on the commission to review public procurement and competition rules where needed; calls for an increase in the share of smes in public procurement contracts , by guaranteeing sme access and combating procurement criteria that set requirements or qualifications beyond the core elements of the service or goods purchased;


### 8. highlights the importance of including education , upskilling and reskilling in the transition pathways; calls on the commission to develop a strategy for vocational education and business-education partnerships within regional industrial clusters to boost skills and enhance the uptake of ready-for-market innovations by smes; ### 8. highlights the importance of including education , upskilling and reskilling in alignment with the needs of the labour market of the affected region in the process of its economic revitalisation in order to prevent the process of impoverishment of the region , in the transition pathways; calls on the commission to develop a strategy for vocational education and business-education partnerships within regional industrial clusters to boost skills and enhance the uptake of ready-for-market innovations by smes;


### 9. underlines that smes and start-ups are playing a central role in the digitalisation of the eu and are a critical source of innovation; stresses the need to improve their access to financing; ### 9. underlines that smes and start-ups are playing an important role in the digitalisation of the eu and are a critical source of innovation; stresses the need to improve their access to financing;


### 14. calls on the member states and the commission to accelerate the implementation of instruments , including important projects of common european interest , and industrial alliances that develop innovative breakthrough technologies needed for the energy transition , such as clean steel , clean aviation , e-fuels , clean fertilisers , e-cracking and small modular reactors; ### 14. calls on the member states and the commission to accelerate the implementation of instruments , including important projects of common european interest , and industrial alliances that develop innovative breakthrough technologies needed for the energy transition , such as clean steel , clean aviation , e-fuels , clean fertilisers , e-cracking and small modular reactors , renewables , storage technologies , nuclear technologies , ccus and any other technology that contributes to the emissions reduction in the spirit of technological neutrality;


### 17. is strongly concerned about unfair competition , investments and takeovers by non-eu state-financed companies on the single market , especially in strategic sectors; calls on the commission to analyse and prevent this interference; ### 17. is strongly concerned about unfair competition , investments and takeovers by non-eu state-financed companies on the single market , especially in strategic sectors , such as energy supply needed to ensure union's independence and energy security; calls on the commission to analyse and prevent this interference;


### following an examination carried out in accordance with article 3 , the commission shall adopt a decision determining whether the measure of the third country concerned meets the conditions set out in article 2(1). the commission shall act expeditiously. ### following an examination carried out in accordance with article 3 , the commission shall adopt a decision after consulting the european parliament and the council determining whether the measure of the third country concerned meets the conditions set out in article 2(1). the commission shall act expeditiously.


### (3) in its communication on a strong social europe for just transition75 , the commission committed to upgrading europe’s social market economy to achieve a just transition to sustainability. this directive will also contribute to the european pillar of social rights , which promotes rights ensuring fair working conditions. it forms part of the eu policies and strategies relating to the promotion of decent work worldwide , including in global value chains , as referred to in the commission communication on decent work worldwide76 . ### (3) in its communication on a strong social europe for just transition75 , the commission committed to upgrading europe’s social market economy to achieve a just transition to sustainability. this directive will also contribute to the european pillar of social rights , which promotes rights ensuring fair working conditions. it forms part of the eu policies and strategies relating to the promotion of decent work worldwide , including in global supply chains , as referred to in the commission communication on decent work worldwide76 .


### (4) the behaviour of companies across all sectors of the economy is key to success in the union’s sustainability objectives as union companies , especially large ones , rely on global value chains. it is also in the interest of companies to protect human rights and the environment , in particular given the rising concern of consumers and investors regarding these topics. several initiatives fostering enterprises which support value-oriented transformation already exist on union77 , as well as national78level. ### (4) the behaviour of companies across all sectors of the economy is key to success in the union’s sustainability objectives as union companies , especially large ones , rely on global value chains. it is also in the interest of companies to protect human rights and the environment , in particular given the rising concern of consumers and investors regarding these topics. it is important to promote initiatives fostering enterprises which contribute to the common good at union77 as well as national78 level.


### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships. ### (5) existing national standards on responsible business conduct specify how companies should protect human rights and address the protection of the environment across their operations , without prejudice to the freedom to conduct a business. the united nations guiding principles on business and human rights79 , although non-binding , recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused.


### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships. ### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused to the extent possible.


### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships. ### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 which are not binding for eu businesses , recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships.


### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships. ### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and supply chains. the united nations guiding principles on business and human rights79recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships.


### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships. ### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct business relationships.


### (6) the concept of human rights due diligence was specified and further developed in the oecd guidelines for multinational enterprises80 which extended the application of due diligence to environmental and governance topics. the oecd guidance on responsible business conduct and sectoral guidance81 are internationally recognised frameworks setting out practical due diligence steps to help companies identify , prevent , mitigate and account for how they address actual and potential impacts in their operations , value chains and other business relationships. the concept of due diligence is also embedded in the recommendations of the international labour organisation (ilo) tripartite declaration of principles concerning multinational enterprises and social policy82. ### deleted


### (8) international agreements under the united nations framework convention on climate change , to which the union and the member states are parties , such as the paris agreement84and the recent glasgow climate pact85 , set out precise avenues to address climate change and keep global warming within 1.5 c degrees. besides specific actions being expected from all signatory parties , the role of the private sector , in particular its investment strategies , is considered central to achieve these objectives. ### (8) international agreements under the united nations framework convention on climate change , to which the union and the member states are parties , such as the paris agreement84 and the recent glasgow climate pact85 , which is non-binding , set out specific measures that the signatory parties are expected to take. the private sector does not have any legal obligation in this regard , although its investment strategies and activities are relevant to these international agreements.


### (8) international agreements under the united nations framework convention on climate change , to which the union and the member states are parties , such as the paris agreement84 and the recent glasgow climate pact85 , set out precise avenues to address climate change and keep global warming within 1.5 c degrees. besides specific actions being expected from all signatory parties , the role of the private sector , in particular its investment strategies , is considered central to achieve these objectives. ### (8) international agreements under the united nations framework convention on climate change , to which the union and the member states are parties , such as the paris agreement84 and the recent glasgow climate pact85 , set out a temperature goal of holding the increase in the global average temperature to well below 2 °c above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5 °c above pre-industrial levels; besides specific actions being expected from all signatory parties , the role of the private sector , in particular its investment strategies , is considered central to achieve these objectives.


### (8) international agreements under the united nations framework convention on climate change , to which the union and the member states are parties , such as the paris agreement84 and the recent glasgow climate pact85 , set out precise avenues to address climate change and keep global warming within 1.5 c degrees. besides specific actions being expected from all signatory parties , the role of the private sector , in particular its investment strategies , is considered central to achieve these objectives. ### deleted


### (12) this directive is in coherence with the eu action plan on human rights and democracy 2020-202499. this action plan defines as a priority to strengthen the union’s engagement to actively promote the global implementation of the united nations guiding principles on business and human rights and other relevant international guidelines such as the oecd guidelines for multinational enterprises , including by advancing relevant due diligence standards. ### (12) this directive is in coherence with the eu action plan on human rights and democracy 2020-202499. this action plan defines as a priority to strengthen the union’s engagement to actively promote the global implementation of the united nations guiding principles on business and human rights and other relevant international guidelines such as the oecd guidelines for multinational enterprises , including by advancing relevant due diligence standards. the united nations guiding principles on business and human rights , which are non-binding , require a change to the principle of legal liability in our legal tradition as they seek to require companies to 'address adverse human rights impacts with which they are involved' , whether or not they cause those impacts.


### (14) this directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification , prevention and mitigation , bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations , subsidiaries and value chains. ### (14) this directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification , prevention and mitigation , bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations.


### (14) this directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification , prevention and mitigation , bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations , subsidiaries and value chains. ### (14) this directive aims to ensure that companies active in the market contribute to the identification , prevention and mitigation , bringing to an end and minimisation of foreseeable , based on the state of knowledge , or actual adverse human rights and environmental impacts connected with companies’ own operations , subsidiaries and supply chains.


### (14) this directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification , prevention and mitigation , bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations , subsidiaries and value chains. ### (14) this directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification , prevention and mitigation , bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations , subsidiaries and supply chains. (this amendment applies throughout the text and is related to the amendment of the definition in article 3(1) , point (g). adopting it will necessitate corresponding changes throughout.)


### (14) this directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification , prevention and mitigation , bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations , subsidiaries and value chains. ### (14) this directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification , prevention and mitigation , bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations , subsidiaries and supply chains.


### (15) companies should take appropriate steps to set up and carry out due diligence measures , with respect to their own operations , their subsidiaries , as well as their established direct and indirect business relationships throughout their value chains in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. account should be taken of the specificities of the company’s value chain , sector or geographical area in which its value chain partners operate , the company’s power to influence its direct and indirect business relationships , and whether the company could increase its power of influence. ### (15) companies should take appropriate steps to set up and carry out due diligence measures , with respect to their own operations , their subsidiaries , as well as their established direct business relationships in the first link of their supply chain in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. account should be taken of the specificities of the company , the sector or the geographical area in which its partners operate , the company’s power to influence its direct business relationships in the first link , and whether the company could increase its power of influence. in addition , this directive adopts a risk-based approach , which means that companies can set priorities in their diligence activities based on a previous analysis , taking account in particular of the nature and extent of adverse impacts and the urgency and likelihood with which these effects arise.


### (15) companies should take appropriate steps to set up and carry out due diligence measures , with respect to their own operations , their subsidiaries , as well as their established direct and indirect business relationships throughout their value chains in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. account should be taken of the specificities of the company’s value chain , sector or geographical area in which its value chain partners operate , the company’s power to influence its direct and indirect business relationships , and whether the company could increase its power of influence. ### (15) companies should take appropriate steps to set up and carry out due diligence measures , with respect to their own operations , in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. among other things , account must be taken of the specificities of the company’s value chain , sector or geographical area in which the company operates.


### (15) companies should take appropriate steps to set up and carry out due diligence measures , with respect to their own operations , their subsidiaries , as well as their established direct and indirect business relationships throughout their value chains in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. account should be taken of the specificities of the company’s value chain , sector or geographical area in which its value chain partners operate , the company’s power to influence its direct and indirect business relationships , and whether the company could increase its power of influence. ### (15) companies should take appropriate steps to set up and carry out due diligence measures , with respect to their own operations , their subsidiaries , as well as their established direct and indirect business relationships throughout their supply chains in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. account should be taken of the specificities of the company’s value chain , sector or geographical area in which its value chain partners operate , the company’s power to influence its direct and indirect business relationships , and whether the company could increase its power of influence.


### (15) companies should take appropriate steps to set up and carry out due diligence measures , with respect to their own operations , their subsidiaries , as well as their established direct and indirect business relationships throughout their value chains in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. account should be taken of the specificities of the company’s value chain , sector or geographical area in which its value chain partners operate , the company’s power to influence its direct and indirect business relationships , and whether the company could increase its power of influence. ### (15) companies should take appropriate steps to set up and carry out due diligence measures , with respect to their own operations , their subsidiaries , as well as their established direct business relationships throughout their supply chains in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. account should be taken of the specificities of the company’s supply chain , sector or geographical area in which its supply chain partners operate , the company’s power to influence its direct business relationships , and whether the company could increase its power of influence.


### (15) companies should take appropriate steps to set up and carry out due diligence measures , with respect to their own operations , their subsidiaries , as well as their established direct and indirect business relationships throughout their value chains in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. account should be taken of the specificities of the company’s value chain , sector or geographical area in which its value chain partners operate , the company’s power to influence its direct and indirect business relationships , and whether the company could increase its power of influence. ### (15) companies should take appropriate steps to set up and carry out due diligence measures , with respect to their own operations , their subsidiaries , as well as their direct business relationships throughout their supply chains in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company is not in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. account should be taken of the specificities of the company’s supply chain , sector or geographical area in which its supply chain partners operate , the company’s power to influence its direct and indirect business relationships , and whether the company could increase its power of influence.


### (17) adverse human rights and environmental impact occur in companies’ own operations , subsidiaries , products , and in their value chains , in particular at the level of raw material sourcing , manufacturing , or at the level of product or waste disposal. in order for the due diligence to have a meaningful impact , it should cover human rights and environmental adverse impacts generated throughout the life-cycle of production and use and disposal of product or provision of services , at the level of own operations , subsidiaries and in value chains. ### (17) adverse human rights and environmental impact occur in companies’ own operations , subsidiaries , products , and in their value chains , in particular at the level of raw material sourcing , manufacturing , or at the level of product or waste disposal. in order to achieve effective and workable due diligence , in a first phase it should cover only human rights and environmental adverse impacts generated by the first link in the supply chain. following evaluation of the impact of this directive , taking account in particular of the consequences for smes , the economy , human rights and the environment , it may be appropriate to broaden the due diligence requirements to further links in the supply chain.


### (17) adverse human rights and environmental impact occur in companies’ own operations , subsidiaries , products , and in their value chains , in particular at the level of raw material sourcing , manufacturing , or at the level of product or waste disposal. in order for the due diligence to have a meaningful impact , it should cover human rights and environmental adverse impacts generated throughout the life-cycle of production and use and disposal of product or provision of services , at the level of own operations , subsidiaries and in value chains. ### (17) adverse human rights and environmental impact may occur in companies’ own operations , subsidiaries , products , and in their value chains , in particular at the level of raw material sourcing , manufacturing , or at the level of product or waste disposal. in order for the due diligence to have a meaningful impact , it should cover human rights and environmental adverse impacts generated throughout the life-cycle of production and use and disposal of product or provision of services , at the level of own operations , subsidiaries and in value chains. nevertheless , the principles of proportionality and liability require due diligence to be carried out for each company in relation to its own operations.


### (17) adverse human rights and environmental impact occur in companies’ own operations , subsidiaries , products , and in their value chains , in particular at the level of raw material sourcing , manufacturing , or at the level of product or waste disposal. in order for the due diligence to have a meaningful impact , it should cover human rights and environmental adverse impacts generated throughout the life-cycle of production and use and disposal of product or provision of services , at the level of own operations , subsidiaries and in value chains. ### (17) adverse human rights and environmental impact occur in companies’ own operations , subsidiaries , products , and in their supply chains , in particular outside of the eu at the level of raw material sourcing , manufacturing , or at the level of product or waste disposal.


### (17) adverse human rights and environmental impact occur in companies’ own operations , subsidiaries , products , and in their value chains , in particular at the level of raw material sourcing , manufacturing , or at the level of product or waste disposal. in order for the due diligence to have a meaningful impact , it should cover human rights and environmental adverse impacts generated throughout the life-cycle of production and use and disposal of product or provision of services , at the level of own operations , subsidiaries and in value chains. ### (17) adverse human rights and environmental impact occur in companies’ own operations , subsidiaries , products , and in their value chains , in particular at the level of raw material sourcing , manufacturing , or at the level of product or waste disposal. in order for the due diligence to have a meaningful impact , it should cover human rights and environmental adverse impacts generated throughout the life-cycle of production and use and disposal of product or provision of services , at the level of own operations , subsidiaries and in supply chains.


### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling. ### deleted


### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling. ### (18) the value chain covers activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it encompasses upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling.


### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling. ### (18) the supply chain should cover those operations or services with third parties following the conclusion of a binding legal contract by which the company obtains the material , capital or service necessary to commercialise its corporate purpose.


### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling. ### (18) the supply chain should cover activities related to the production of a good by a company , including the development of the product as well as the related activities of business relationships of the company. it should encompass upstream direct relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products.


### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling. ### (18) the supply chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service as well as the related activities of established business relationships of the company. it should encompass upstream established direct business relationships that extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities.


### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling. ### (18) the supply chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling.


### (19) as regards regulated financial undertakings providing loan , credit , or other financial services , “value chain” with respect to the provision of such services should be limited to the activities of the clients receiving such services , and the subsidiaries thereof whose activities are linked to the contract in question. clients that are households and natural persons not acting in a professional or business capacity , as well as small and medium sized undertakings , should not be considered to be part of the value chain. the activities of the companies or other legal entities that are included in the value chain of that client should not be covered. ### (19) regulated financial undertakings providing loan , credit , or other financial services should be excluded from the scope of this directive , as they are already subject to strict regulation in the field of sustainability.


### (19) as regards regulated financial undertakings providing loan , credit , or other financial services , “value chain” with respect to the provision of such services should be limited to the activities of the clients receiving such services , and the subsidiaries thereof whose activities are linked to the contract in question. clients that are households and natural persons not acting in a professional or business capacity , as well as small and medium sized undertakings , should not be considered to be part of the value chain. the activities of the companies or other legal entities that are included in the value chain of that client should not be covered. ### (19) as regards regulated financial undertakings providing loan , credit , or other financial services , “supply chain” with respect to the provision of such services should be limited to the activities of the clients falling within the by the scope of this directive.


### (19) as regards regulated financial undertakings providing loan , credit , or other financial services , “value chain” with respect to the provision of such services should be limited to the activities of the clients receiving such services , and the subsidiaries thereof whose activities are linked to the contract in question. clients that are households and natural persons not acting in a professional or business capacity , as well as small and medium sized undertakings , should not be considered to be part of the value chain. the activities of the companies or other legal entities that are included in the value chain of that client should not be covered. ### (19) as regards regulated financial undertakings providing loan , credit , or other financial services , “supply chain” with respect to the provision of such services should be limited to the activities of the clients receiving such services , and the subsidiaries thereof whose activities are linked to the contract in question. clients that are households and natural persons not acting in a professional or business capacity , as well as small and medium sized undertakings , should not be considered to be part of the supply chain. the activities of the companies or other legal entities that are included in the supply chain of that client should not be covered.


### (20) in order to allow companies to properly identify the adverse impacts in their value chain and to make it possible for them to exercise appropriate leverage , the due diligence obligations should be limited in this directive to established business relationships. for the purpose of this directive , established business relationships should mean such direct and indirect business relationships which are , or which are expected to be lasting , in view of their intensity and duration and which do not represent a negligible or ancillary part of the value chain. the nature of business relationships as “established” should be reassessed periodically , and at least every 12 months. if the direct business relationship of a company is established , then all linked indirect business relationships should also be considered as established regarding that company. ### (20) in order to allow companies to properly identify the adverse impacts in their value chain and to make it possible for them to exercise appropriate leverage , the due diligence obligations should be limited in this directive to established business relationships. for the purpose of this directive , established business relationships should mean such direct business relationships which are , or which are expected to be lasting , in view of their intensity and duration and which do not represent a negligible or ancillary part of the value chain. the nature of business relationships as “established” should be reassessed periodically , and at least every 12 months. if the direct business relationship of a company is established , then all linked indirect business relationships should also be considered as established regarding that company.


### (20) in order to allow companies to properly identify the adverse impacts in their value chain and to make it possible for them to exercise appropriate leverage , the due diligence obligations should be limited in this directive to established business relationships. for the purpose of this directive , established business relationships should mean such direct and indirect business relationships which are , or which are expected to be lasting , in view of their intensity and duration and which do not represent a negligible or ancillary part of the value chain. the nature of business relationships as “established” should be reassessed periodically , and at least every 12 months. if the direct business relationship of a company is established , then all linked indirect business relationships should also be considered as established regarding that company. ### (20) in order to allow companies to properly identify the adverse impacts of their operations , the due diligence obligations should be limited in this directive to direct business relationships between companies and third parties. for the purpose of this directive , direct business relationships should mean business relationships established with a company's customers and suppliers which are lasting , in view of their intensity and duration , and which do not represent a negligible or ancillary part of the value chain. the nature of business relationships as 'established' should be reassessed periodically , and at least every 12 months.


### (20) in order to allow companies to properly identify the adverse impacts in their value chain and to make it possible for them to exercise appropriate leverage , the due diligence obligations should be limited in this directive to established business relationships. for the purpose of this directive , established business relationships should mean such direct and indirect business relationships which are , or which are expected to be lasting , in view of their intensity and duration and which do not represent a negligible or ancillary part of the value chain. the nature of business relationships as “established” should be reassessed periodically , and at least every 12 months. if the direct business relationship of a company is established , then all linked indirect business relationships should also be considered as established regarding that company. ### (20) in order to allow companies to properly identify the adverse impacts in their supply chain and to make it possible for them to exercise appropriate leverage , the due diligence obligations in this directive should cover business relationships. for the purpose of this directive , business relationships should mean relationships which are relevant , based on the risk and severity of adverse impacts associated therewith.


### (20) in order to allow companies to properly identify the adverse impacts in their value chain and to make it possible for them to exercise appropriate leverage , the due diligence obligations should be limited in this directive to established business relationships. for the purpose of this directive , established business relationships should mean such direct and indirect business relationships which are , or which are expected to be lasting , in view of their intensity and duration and which do not represent a negligible or ancillary part of the value chain. the nature of business relationships as “established” should be reassessed periodically , and at least every 12 months. if the direct business relationship of a company is established , then all linked indirect business relationships should also be considered as established regarding that company. ### (20) in order to allow companies to properly identify the adverse impacts in their supply chain and to make it possible for them to exercise appropriate leverage , the due diligence obligations should be limited in this directive to direct contractual business relationships. for the purpose of this directive , direct business relationships should mean such direct and indirect business relationships which are , or which are expected to be lasting , in view of their intensity and duration and which do not represent a negligible or ancillary part of the supply chain and which link both parties through a legal contract.


### (20) in order to allow companies to properly identify the adverse impacts in their value chain and to make it possible for them to exercise appropriate leverage , the due diligence obligations should be limited in this directive to established business relationships. for the purpose of this directive , established business relationships should mean such direct and indirect business relationships which are , or which are expected to be lasting , in view of their intensity and duration and which do not represent a negligible or ancillary part of the value chain. the nature of business relationships as “established” should be reassessed periodically , and at least every 12 months. if the direct business relationship of a company is established , then all linked indirect business relationships should also be considered as established regarding that company. ### (20) in order to allow companies to properly identify the adverse impacts in their value chain and to make it possible for them to exercise appropriate leverage , the due diligence obligations should be limited in this directive to established business relationships. for the purpose of this directive , established business relationships should mean such direct business relationships which are in view of their intensity and duration and which do not represent a negligible or ancillary part of the supply chain. the nature of business relationships as “established” should be reassessed periodically , and at least every 12 months.


### (20) in order to allow companies to properly identify the adverse impacts in their value chain and to make it possible for them to exercise appropriate leverage , the due diligence obligations should be limited in this directive to established business relationships. for the purpose of this directive , established business relationships should mean such direct and indirect business relationships which are , or which are expected to be lasting , in view of their intensity and duration and which do not represent a negligible or ancillary part of the value chain. the nature of business relationships as “established” should be reassessed periodically , and at least every 12 months. if the direct business relationship of a company is established , then all linked indirect business relationships should also be considered as established regarding that company. ### (20) in order to allow companies to properly identify the adverse impacts in their supply chain and to make it possible for them to exercise appropriate leverage , the due diligence obligations should be limited in this directive to established business relationships. for the purpose of this directive , established business relationships should mean such direct business relationships which are , or which are expected to be lasting , in view of their intensity and duration and which do not represent a negligible or ancillary part of the supply chain. the nature of business relationships as “established” should be reassessed periodically , and at least every 12 months.