### 74. recalls that at present , eib group operations that are not financed by the union budget but which serve the same union objectives do not come under the eca audit mandate; points out that this means that the court is unable to provide a full picture of the links between eib group operations and the union budget; ### 74. recalls that at present , eib group operations that are not financed by the union budget but which serve the same union objectives do not come under the eca audit mandate; points out that this means that the court is unable to provide a full picture of the links between eib group operations and the union budget; calls for the renewal of the tripartite agreement between the commission , eib and the court; due in 2020; to include provisions allowing the court to have greater access to eib operations’ auditing; further calls on the eib group to be more transparent and accountable on its economic operations , its use of the eu budget guarantee , the additionality of eib operations and on possible future plans for a development subsidiary at the eib; calls for a memorandum of understanding between the eib and the european parliament to improve parliament's access to eib documents and data related to strategic orientation and financing policies in order to strengthen the bank’s accountability;


### 92. calls on the commission to document the targets proposed so that the budgetary authority can assess their level of ambition; ### 92. calls on the commission to document the targets proposed in measurable form so that the budgetary authority can assess their level of ambition and the results in achieving the targets;


### 125. remains concerned that the share of union contribution to climate actions have remained stagnant at 30 % since 2014; ### 125. deplores that the share of union contribution to climate actions under h2020 fails to reach its set climate and sustainability spending targets and hence for the entire 2014-2020 mff; stresses that , following the union’s commitment under the paris agreement and in view of the european green deal climate-related spending should be significantly increased with no further delays;


### 130. was surprised to learn that ex-ante verifications for large research infrastructure programmes were not only time consuming and costly (i.e. manpower , travel) but had often little impact on error prevention; ### 130. was surprised to learn that ex-ante verifications of the union contribution for large research infrastructure programmes were not only time consuming and costly (i.e. manpower , travel) but had often little impact on error prevention;


### 148. takes note of the fact that the european anti-fraud office , in this context , analysed information on alleged transgressions but decided not to open an investigation as there was insufficient suspicion of fraud; ### 148. 148. takes note of the fact that the european anti-fraud office , in this context , analysed information on alleged transgressions and has decided to open a new preliminary proceeding;


### 177. is afraid that the backlog of commitments at the end of the programming period may be higher than at the end of the previous exercise , thereby triggering another payment crisis; ### 177. is seriously concerned that the backlog of commitments at the end of the programming period will be considerably higher than at the end of the previous exercise , thereby possibly triggering another payment crisis;


### 181. was informed that the commission carried out comprehensive audits regarding the application of union and national law; expects that the commission will inform parliament’s responsible committee about the findings of the audits the moment they become available; ### 181. was informed that the commission carried out comprehensive audits regarding the application of union and national law , thoroughly checking not just the regularity of operations but also the compliance with the union and national legislation on the conflict of interests; expects that the commission will inform parliament’s responsible committee about the findings of the audits the moment they become available;


### 182. deplores the fact that the auditors detected , in the area of regional and cohesion funds , serious deficiencies in the functioning of the management and control systems and therefore suggested a financial correction of almost 20 %; ### 182. deplores the fact that the auditors detected , in the area of regional and cohesion funds , serious deficiencies in the functioning of the management and control systems and therefore suggested a financial correction of almost 20 %; calls on the commission to critically assess if these cases represent cases of systemic misuse of union funds;


### 183. also deplores the fact that the commission auditors detected cases of conflict of interests; understands , however , that the czech national law on conflicts of interests does not prohibit granting public funds and that the auditors therefore suggested cancelling public contribution to the projects , as no expenditures were declared so far; ### 183. also deplores the fact that the commission auditors detected cases of very serious conflict of interests , including the position of the prime minister; expects the commission to do its utmost to complete the process efficiently and in timely manner and fully carries out all the necessary corrective measures;


### 187. asks the commission how these recoveries will be budgeted as they affect programmes of the previous programming period 2007 to 2013; ### 187. asks the commission how these recoveries will be budgeted as they affect programmes of the previous programming period 2007 to 2013;


### - reduce the programming period 2021 to 2027 from n+3 to n+2 to offer member states an additional incentive to swiftly implement the programmes; ### - reduce the programming period 2021 to 2027 from n+3 to n+2 to offer member states an additional incentive to swiftly implement the programmes; points out , however , that in certain interreg programmes the n+3 solution can be acceptable because of the complexity of the programmes.


### - specify in the aars how ex-post financial corrections imposed by member states and by the commission were reused; ### - specify in the aars if and in what way were the ex-post financial corrections imposed by member states and by the commission re-used by member states concerned;


### 190. calls on the commission and the co-legislators to ensure that the 10 % retention on interim payments is preserved during the programming period 2021 to 2027 and that in cases where programmes are considered to represent a high risk for the financial interests of the union the amounts retained should be released only once all verifications are completed and the competent management authority should be alerted in time to the situation; ### 190. calls on the commission and the co-legislators to ensure that the 10 % retention on interim payments is preserved during the programming period 2021 to 2027 and the amounts retained should be released only once all verifications are completed and necessary improvements or corrective measures implemented;


### 191. calls on the court to extend the performance coverage in its annual report , for which the court’s special reports are a valuable source of information; in this context welcomes the proposals made on 19 november 2019 in luxembourg during the visit of the committee on budgetary control; ### 191. calls on the court to extend the performance coverage in its annual report , for which the court’s special reports are a valuable source of information; in this context welcomes the proposals made by the court during november 2019 visit of the committee on budgetary control;


### 206. recalls that one of the main objective of the cap is to provide income stability to the farmers and support for the maintenance and creation of the jobs and to stimulate growth and investments across the union territory; ### 206. recalls that one of the main objective of the cap is to provide income stability to the farmers and support for the maintenance and creation of the jobs and to stimulate growth and investments across the union territory; finds that in practice the cap has evolved in primarily supporting the big land owners and less so to help the farmers working the land , especially in less developed rural areas;


### 207. notes with deep concern that according to the dg agri’s aar for 2018 , “the agricultural factor income per full time work unit has recovered in real terms but income generally lagging behind salaries in the whole economy”; ### 207. notes with deep concern that as in previous years , according to the dg agri’s aar for 2018 , “the agricultural factor income per full time work unit has recovered in real terms but income generally lagging behind salaries in the whole economy”; calls on the commission to approach this situation with utmost seriousness , having in mind the consequences of farmers salaries generally lagging behind , especially in less developed rural areas;


### 223. calls on the commission to inform parliament’s responsible committee about the findings of the audits immediately in full respect with the principles of transparency and legal certainty which are part of the rule of law principles; ### 223. calls on the commission to inform parliament’s responsible committee and the general public about the findings of the audits immediately in full respect with the principles of transparency and legal certainty which are part of the rule of law principles; calls the commission to consult the parliament’s responsible committee in case of the continuation of the conflict of interests of the prime minister even after the audits are officially completed or in case the czech authorities will object to implement the corrective measures on political and not legal basis;


### 233. calls on the commission to set up a mechanism ensuring that the farmers will be given the opportunity to lodge a complaint with the commission in case of land grabbing; ### 233. calls on the commission to set up a mechanism ensuring that the affected farmers will be given the opportunity to lodge a complaint with the commission in case of land grabbing;


### 234. calls on the commission to thoroughly ensure that the rule of law is applied in all member states and to ensure that the juridical system is able to work independently to guarantee independent investigations of legal cases; ### 234. calls on the commission to thoroughly ensure that the rule of law is applied in all member states and to ensure that the juridical system is able to work independently to guarantee independent investigations of legal cases; welcomes the application of possible stricter conditionalities in cap funding;


### 252. is concerned by the fact that , due to security risks , auditors are often not able to verify in many countries , as for instance in libya , whether the receivers of union funds are respecting high standards of human rights; ### 252. is concerned by the fact that , due to security risks , auditors are often not able to verify in many countries , as for instance in libya , whether the receivers of union funds are respecting high standards of human rights; calls on the commission to ensure that the edf and the union budget do not finance projects through the eutf implemented by the governmental and local forces (militias) that are involved in serious human right violations , especially in countries such as libya and sudan. call on the commission to consider to stop the eu aid in case its independent auditors cannot double-check the effective use of the eu money in these countries;


### - consider to put an end to trust funds that are unable to attract a significant contributions from other donors; ### - to put an end to trust funds that do not deliver on their objectives and targets;


### 259. stresses that the court identified five major problems hampering transparency: ### 259. stresses that the court identified problems that could hamper transparency:


### - the inadequacy of the information provided by united nations bodies on the contracts awarded to ngos. ### deleted


### 262. calls on the commission to exclude ngos applicants that present wrongful declarations of previous experience errors and to check them more thoroughly; ### deleted


### 265. regrets that the commission did not check whether united nations bodies disclose information on the grants awarded with union funding; demands the commission to perform those checks consistently; ### deleted


### 268. points out that the public and political interest in this area is far much higher than its financial share; ### deleted


### 277. regrets the fact that dg home did not establish any kpis regarding the situation of the most vulnerable migrants and , in particular , child migrants and refugee women and girls in order to prevent and avoid abuse and trafficking; ### 277. regrets the fact that dg home did not establish any kpis regarding the situation of the most vulnerable migrants and , in particular , child migrants and migrant women and girls in order to prevent and avoid abuse and trafficking; deplores the systematic use of detention;


### - the court continue to provide a separate chapter for security and citizenship in its annual report and to deepen its analysis in this regard as the public and political interest in the security and migration part of the union budget is much higher than its financial share; ### - the court continue to provide a separate chapter for security and citizenship in its annual report


### - dg home introduce a kpi relating to situation of the most vulnerable migrants and in particular child migrants and refugee women and girls in order to prevent and avoid abuse and trafficking; ### - dg home introduce a kpi relating to situation of the most vulnerable migrants and in particular child migrants and migrant women and girls in order to prevent and avoid abuse and trafficking;


### - far fewer actual migrants are returned than return decisions made in both greece and italy , as in the union as a whole; this is due , for instance , to the length of time it takes to process asylum cases , insufficient capacity in detention centres , difficult cooperation with the migrants’ country of origin or migrants simply absconding once the decision is taken to return them; ### - far fewer actual migrants are returned than return decisions made in both greece and italy , as in the union as a whole;


### - use lessons learned to build on experience for any possible voluntary relocation mechanism in the future and to propose new measures to tackle effectively any emergency situation like the migration crisis of 2015 , which are acceptable for the member states; ### - use lessons learned to build on experience for any possible relocation mechanism in the future and to propose new , long term measures to manage arrivals and ensure dignified asylum procedures;


### - enhance easo’s operational support to asylum procedures; ### - enhance easo’s operational support to member states for asylum procedures;


### - adjust frontex’s return support and experts’ deployment in the hotspots; ### - adjust frontex’s return support and experts’ deployment in the hotspots , including fundamental rights monitors


### - support further national return procedures; ### - support further national return procedures; and the collection of performance data on the return procedures to facilitate policymaking , performance evaluation and research;


### - improve the functioning of the hotspot system in order to make it more efficient in situation of emergency; ### - improve the functioning of the hotspot system in order to ensure dignified reception conditions and efficiency in the management of arrivals;


### - carefully monitor the efficiency of the actions led by frontex in order to better protect the external borders of the european union; ### - carefully monitor the efficiency and human rights-compliance of the actions led by frontex in order to better manage the external borders of the european union;


### 295. calls on the commission to foresee that after the cooling off period , the former commissioners will not benefit any more from the facilities offered by its decision of 30 october 2019; ### 295. calls on the commission to foresee that after the cooling off period , the former commissioners will not benefit any more from the facilities offered by its decision of 30 october2019; nor will benefit any more from the facilities in case of taking up a different role;


### 313. points out that further simplification can be ensured both at the level of programming , through limiting the number of regulations and avoiding unnecessary changes which can cause uncertainty , backlogs and errors; and at the level of effective implementation , in order to reduce the administrative burden for authorities and beneficiaries and to increase the accessibility of funds; ### 313. points out that further simplification can be ensured both at the level of programming , and avoiding unnecessary changes which can cause uncertainty , backlogs and errors; and at the level of effective implementation , in order to reduce the administrative burden for authorities and beneficiaries and to increase the accessibility of funds;


### 326. calls for improving the funds’ administration while en hancing the effectiveness of controls; ### 326. calls for improving the funds’ administration while enhancing the effectiveness of controls - these should include the measures taken in cases of systematic misuse of union funds;


### 7. stresses that support to young farmers from the cap is essential; encourages the commission to move towards a greener cap in line with the paris agreement. ### 7. stresses that support to young farmers from the cap is essential; encourages the commission to move towards a greener cap in line with the paris agreement , which would increase efficiency in the use of public money , by limiting the negative externalities linked to agricultural practices and shifting focus to prevention rather than cure.


### 8. welcomes the adoption of the guidelines on whistleblowing by the management board of the agency and calls on the agency to ensure their implementation; notes that the internal audit services performed a review of ethics in 2018 , covering areas of the code of conduct , ethics and fraud , with draft audit report expected in the beginning of 2019; ### 8. welcomes the adoption of the guidelines on whistleblowing by the management board of the agency and calls on the agency to ensure their implementation; notes that the internal audit services performed a review of ethics in 2018 , covering areas of the code of conduct , ethics and fraud , with draft audit report expected in the beginning of 2019; reiterates , in this context , the need to have in place safeguards against conflicts of interest;


### (29) further incentives to reduce greenhouse gas emissions by using cost-efficient techniques should be provided. to that end , the free allocation of emission allowances to stationary installations from 2026 onwards should be conditional on investments in techniques to increase energy efficiency and reduce emissions. ensuring that this is focused on larger energy users would result in a substantial reduction in burden for businesses with lower energy use , which may be owned by small and medium sized enterprises or micro-enterprises. [reference to be confirmed with the revised eed]. the relevant delegated acts should be adjusted accordingly. ### (29) further incentives to reduce greenhouse gas emissions by using cost-efficient techniques should be provided. to that end , the free allocation of emission allowances to stationary installations from [year of entry into force of the directive] onwards should be discontinued , switching to full auctioning of emission allowances.


### (30) the carbon border adjustment mechanism (cbam) , established under regulation (eu) […./..] of the european parliament and of the council51 , is an alternative to free allocation to address the risk of carbon leakage. to the extent that sectors and subsectors are covered by that measure , they should not receive free allocation. however , a transitional phasing-out of free allowances is needed to allow producers , importers and traders to adjust to the new regime. the reduction of free allocation should be implemented by applying a factor to free allocation for cbam sectors , while the cbam is phased in. this percentage (cbam factor) should be equal to 100 % during the transitional period between the entry into force of [cbam regulation] and 2025 , 90 % in 2026 and should be reduced by 10 percentage points each year to reach 0 % and thereby eliminate free allocation by the tenth year. the relevant delegated acts on free allocation should be adjusted accordingly for the sectors and subsectors covered by the cbam. the free allocation no longer provided to the cbam sectors based on this calculation (cbam demand) must be auctioned and the revenues will accrue to the innovation fund , so as to support innovation in low carbon technologies , carbon capture and utilisation (‘ccu’) , carbon capture and geological storage (‘ccs’) , renewable energy and energy storage , in a way that contributes to mitigating climate change. special attention should be given to projects in cbam sectors. to respect the proportion of the free allocation available for the non-cbam sectors , the final amount to deduct from the free allocation and to be auctioned should be calculated based on the proportion that the cbam demand represents in respect of the free allocation needs of all sectors receiving free allocation. ### (30) the carbon borderadjustment mechanism (cbam) , established under regulation (eu) […./..] of the european parliament and of the council , is an alternative to free allocation to address the risk of carbon leakage. to the extent that sectors and subsectors are covered by that measure , they should not receive free allocation. the free allocation no longer provided to the cbam sectors cbam demand) must be auctioned and the revenues will accrue to the innovation fund , so as to support innovation in zero emissions technologies , prioritising solutions that address the root causes of high ghg , including the resources or materials used and the volumes used. renewable energy and energy storage , in a way that contributes to mitigating climate change. special attention should begiven to projects in cbam sectors.


### (47) the regulated entities falling within the scope of the emissions trading in the sectors of buildings and road transport should be subject to similar greenhouse gas emissions permit requirements as the operators of stationary installations. it is necessary to establish rules on permit applications , conditions for permit issuance , content , and review , and any changes related to the regulated entity. in order for the new system to start in an orderly manner , member states should ensure that regulated entities falling within the scope of the new emissions trading have a valid permit as of the start of the system in 2025. ### deleted


### (48) the total quantity of allowances for the new emissions trading should follow a linear trajectory to reach the 2030 emissions reduction target , taking into account the cost-efficient contribution of buildings and road transport of 43 % emission reductions by 2030 compared to 2005. the total quantity of allowances should be established for the first time in 2026 , to follow a trajectory starting in 2024 from the value of the 2024 emissions limits (1 109 304 000 co2t) , calculated in accordance with article 4(2) of regulation (eu) 2018/842 of the european parliament and of the council59 on the basis of the reference emissions for these sectors for the period from 2016 to 2018. accordingly , the linear reduction factor should be set at 5 ,15 %. from 2028 , the total quantity of allowances should be set on the basis of the average reported emissions for the years 2024 , 2025 and 2026 , and should decrease by the same absolute annual reduction as set from 2024 , which corresponds to a 5 ,43 % linear reduction factor compared to the comparable 2025 value of the above defined trajectory. if those emissions are significantly higher than this trajectory value and if this divergence is not due to small-scale differences in emission measurement methodologies , the linear reduction factor should be adjusted to reach the required emissions reduction in 2030. ### deleted


### (49) the auctioning of allowances is the simplest and the most economically efficient method for allocating emission allowances , which also avoids windfall profits. both the buildings and road transport sectors are under relatively small or non-existent competitive pressure from outside the union and are not exposed to a risk of carbon leakage. therefore , allowances for buildings and road transport should only be allocated via auctioning without there being any free allocation. ### deleted


### (50) in order to ensure a smooth start to emissions trading in the buildings and road transport sectors and taking into account the need of the regulated entities to hedge or buy ahead allowances to mitigate their price and liquidity risk , a higher amount of allowances should be auctioned early on. in 2026 , the auction volumes should therefore be 30 % higher than the total quantity of allowances for 2026. this amount would be sufficient to provide liquidity , both if emissions decrease in line with reduction needs , and in the event emission reductions only materialise progressively. the detailed rules for this front-loading of auction volume are to be established in a delegated act related to auctioning , adopted pursuant to article 10(4) of directive 2003/87/ec. ### deleted


### (51) the distribution rules on auction shares are highly relevant for any auction revenues that would accrue to the member states , especially in view of the need to strengthen the ability of the member states to address the social impacts of a carbon price signal in the buildings and road transport sectors. notwithstanding the fact that the two sectors have very different characteristics , it is appropriate to set a common distribution rule similar to the one applicable to stationary installations. the main part of allowances should be distributed among all member states on the basis of the average distribution of the emissions in the sectors covered during the period from 2016 to 2018. ### deleted


### (52) the introduction of the carbon price in road transport and buildings should be accompanied by effective social compensation , especially in view of the already existing levels of energy poverty. about 34 million europeans reported an inability to keep their homes adequately warm in 2018 , and 6 ,9 % of the union population have said that they cannot afford to heat their home sufficiently in a 2019 eu-wide survey60 . to achieve an effective social and distributional compensation , member states should be required to spend the auction revenues on the climate and energy-related purposes already specified for the existing emissions trading , but also for measures added specifically to address related concerns for the new sectors of road transport and buildings , including related policy measures under directive 2012/27/eu of the european parliament and of the council61 . auction revenues should be used to address social aspects of the emission trading for the new sectors with a specific emphasis in vulnerable households , micro-enterprises and transport users. in this spirit , a new social climate fund will provide dedicated funding to member states to support the european citizens most affected or at risk of energy or mobility poverty. this fund will promote fairness and solidarity between and within member states while mitigating the risk of energy and mobility poverty during the transition. it will build on and complement existing solidarity mechanisms. the resources of the new fund will in principle correspond to 25 % of the expected revenues from new emission trading in the period 2026-2032 , and will be implemented on the basis of the social climate plans that member states should put forward under regulation (eu) 20…/nn of the european parliament and the council62 . in addition , each member state should use their auction revenues inter alia to finance a part of the costs of their social climate plans. ### (52) the introduction of the carbon price in road transport and buildings should be accompanied by effective social compensation , especially in view of the already existing levels of energy poverty. about 34 million europeans reported an inability to keep their homes adequately warm in 2018 , and 6 ,9 % of the union population have said that they cannot afford to heat their home sufficiently in a 2019 eu-wide survey60 . to achieve an effective social and distributional compensation , member states should be required to spend the auction revenues on the climate and energy-related purposes already specified for the existing emissions trading , but also for measures added specifically to address related concerns for the new sectors of road transport and buildings , including related policy measures under directive 2012/27/eu of the european parliament and of the council61 . auction revenues should be used to address social aspects of the emission trading for the new sectors with a specific emphasis in vulnerable households , micro-enterprises and transport users. in this spirit , a new social climate fund will provide dedicated funding to member states to support the european citizens most affected or at risk of energy or mobility poverty. the social climate fund should be an integral part of the union budget in order to preserve the unity of the budget and the coherence with union policies , and to ensure that there is effective control by the budgetary authority , composed of the parliament and the council. this fund will promote fairness and solidarity between and within member states while mitigating the risk of energy and mobility poverty during the transition. it will build on and complement existing solidarity mechanisms. the resources of the new fund will in principle correspond to 25 % of the expected revenues from new emission trading in the period 2026-2032 , and will be implemented on the basis of the social climate plans that member states should put forward under regulation (eu) 20…/nn of the european parliament and the council62 . the social climate fund should be frontloaded for the period of mff 2021-2027 and use 100% of the ets revenues for its financing. in addition , each member state should use their auction revenues inter alia to finance a part of the costs of their social climate plans.


### (52) the introduction of the carbon price in road transport and buildings should be accompanied by effective social compensation , especially in view of the already existing levels of energy poverty. about 34 million europeans reported an inability to keep their homes adequately warm in 2018 , and 6 ,9 % of the union population have said that they cannot afford to heat their home sufficiently in a 2019 eu-wide survey60 . to achieve an effective social and distributional compensation , member states should be required to spend the auction revenues on the climate and energy-related purposes already specified for the existing emissions trading , but also for measures added specifically to address related concerns for the new sectors of road transport and buildings , including related policy measures under directive 2012/27/eu of the european parliament and of the council61 . auction revenues should be used to address social aspects of the emission trading for the new sectors with a specific emphasis in vulnerable households , micro-enterprises and transport users. in this spirit , a new social climate fund will provide dedicated funding to member states to support the european citizens most affected or at risk of energy or mobility poverty. this fund will promote fairness and solidarity between and within member states while mitigating the risk of energy and mobility poverty during the transition. it will build on and complement existing solidarity mechanisms. the resources of the new fund will in principle correspond to 25 % of the expected revenues from new emission trading in the period 2026-2032 , and will be implemented on the basis of the social climate plans that member states should put forward under regulation (eu) 20…/nn of the european parliament and the council62 . in addition , each member state should use their auction revenues inter alia to finance a part of the costs of their social climate plans. ### deleted


### (53) reporting on the use of auctioning revenues should be aligned with the current reporting established by regulation (eu) 2018/1999 of the european parliament and of the council63 . ### deleted


### (54) innovation and development of new low-carbon technologies in the sectors of buildings and road transport are crucial for ensuring the cost-efficient contribution of these sectors to the expected emission reductions. therefore , 150 million allowances from emissions trading in the buildings and road transport sectors should also be made available to the innovation fund to stimulate the cost-efficient emission reductions. ### deleted


### (55) regulated entities covered by the buildings and road transport emissions trading should surrender allowances for their verified emissions corresponding to the quantities of fuels they have released for consumption. they should surrender allowances for the first time for their verified emissions in 2026. in order to minimise the administrative burden , a number of rules applicable to the existing emissions trading system for stationary installations and aviation should be made applicable to emissions trading for buildings and road transport , with the necessary adaptations. this includes , in particular , rules on transfer , surrender and cancellation of allowances , as well as the rules on the validity of allowances , penalties , competent authorities and reporting obligations of member states. ### deleted


### (56) for emissions trading in the buildings and road transport sectors to be effective , it should be possible to monitor emissions with high certainty and at reasonable cost. emissions should be attributed to regulated entities on the basis of fuel quantities released for consumption and combined with an emission factor. regulated entities should be able to reliably and accurately identify and differentiate the sectors in which the fuels are released for consumption , as well as the final users of the fuels , in order to avoid undesirable effects , such as double burden. to have sufficient data to establish the total number of allowances for the period from 2028 to 2030 , the regulated entities holding a permit at the start of the system in 2025 should report their associated historical emissions for 2024. ### deleted


### (57) it is appropriate to introduce measures to address the potential risk of excessive price increases , which , if particularly high at the start of the buildings and road transport emissions trading , may undermine the readiness of households and individuals to invest in reducing their greenhouse gas emissions. these measures should complement the safeguards provided by the market stability reserve established by decision (eu) 2015/1814 of the european parliament and of the council64 and that became operational in 2019. while the market will continue to determine the carbon price , safeguard measures will be triggered by rules-based automatism , whereby allowances will be released from the market stability reserve only if concrete triggering conditions based on the increase in the average allowance price are met. this additional mechanism should also be highly reactive , in order to address excessive volatility due to factors other than changed market fundamentals. the measures should be adapted to different levels of excessive price increase , which will result in different degrees of the intervention. the triggering conditions should be closely monitored by the commission and the measures should be adopted by the commission as a matter of urgency when the conditions are met. this is without prejudice to any accompanying measures that member states may adopt to address adverse social impacts. ### deleted


### (58) the application of emissions trading in the buildings and road transport sectors should be monitored by the commission , including the degree of price convergence with the existing ets , and , if necessary , a review should be proposed to the european parliament and the council to improve the effectiveness , administration and practical application of emissions trading for those sectors on the basis of acquired knowledge as well as increased price convergence. the commission should be required to submit the first report on those matters by 1 january 2028. ### deleted


### (59) in order to ensure uniform conditions for the implementation of articles 3gd(3) , 12(3b) and 14(1) of directive 2003/87/ec , implementing powers should be conferred on the commission. to ensure synergies with the existing regulatory framework , the conferral of implementing powers in articles 14 and 15 of that directive should be extended to cover the sectors of road transport and buildings. those implementing powers should be exercised in accordance with regulation (eu) no 182/2011 of the european parliament and of the council65 . ### deleted


### (60) in order to adopt non-legislative acts of general application to supplement or amend certain non-essential elements of a legislative act , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of articles 10(4) and 10a(8) of that directive. moreover , to ensure synergies with the existing regulatory framework , the delegation in articles 10(4) and 10a(8) of directive 2003/87/ec should be extended to cover the sectors of road transport and buildings. it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law-making of 13 april 2016. in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council receive all documents at the same time as member states' experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts. in accordance with the joint political declaration of 28 september 2011 of member states and the commission on explanatory documents66 , member states have undertaken to accompany , in justified cases , the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. with regard to this directive , the legislator considers the transmission of such documents to be justified ### deleted


### (66) in order to mitigate the risk of supply and demand imbalances associated with the start of emissions trading for the buildings and road transport sectors , as well as to render it more resistant to market shocks , the rule-based mechanism of the market stability reserve should be applied to those new sectors. for that reserve to be operational from the start of the system , it should be established with an initial endowment of 600 million allowances for emissions trading in the road transport and buildings sectors. the initial lower and upper thresholds , which trigger the release or intake of allowances from the reserve , should be subject to a general review clause. other elements such as the publication of the total number of allowances in circulation or the quantity of allowances released or placed in the reserve should follow the rules of the reserve for other sectors. ### deleted


### 1. this directive shall apply to the activities listed in annexes i and iii , and to the of greenhouse gases listed in annex ii. where an installation that is included in the scope of the eu ets due to the operation of combustion units with a total rated thermal input exceeding 20 mw changes its production processes to reduce its greenhouse gas emissions and no longer meets that threshold , it shall remain in the scope of the eu ets until the end of the relevant five year period referred to in article 11(1) , second subparagraph , following the change to its production process. ### 1. this directive shall apply to emission from the activities listed in annex i , and to the greenhouse gases listed in annex ii. where an installation that is included in the scope of the eu ets due to the operation of combustion units with a total rated thermal input exceeding 10 mw changes its production processes to reduce its greenhouse gas emissions and no longer meets that threshold , it shall remain in the scope of the eu ets until the end of the relevant five year period referred to in article 11(1) , second subparagraph , following the change to its production process.


### in addition , 2 ,5 % of the total quantity of allowances between [year following the entry into force of the directive] and 2030 shall be auctioned for the modernisation fund. the beneficiary member states for this amount of allowances shall be the member states with a gdp per capita at market prices below 65 % of the union average during the period 2016 to 2018. the funds corresponding to this quantity of allowances shall be distributed in accordance with part b of annex iib. ### deleted


### in addition , 2 ,5 % of the total quantity of allowances between [year following the entry into force of the directive] and 2030 shall be auctioned for the modernisation fund. the beneficiary member states for this amount of allowances shall be the member states with a gdp per capita at market prices below 65 % of the union average during the period 2016 to 2018. the funds corresponding to this quantity of allowances shall be distributed in accordance with part b of annex iib. ### in addition , 3% of the total quantity of allowances between [year following the entry into force of the directive] and 2030 shall be auctioned for the modernisation fund. the beneficiary member states for this amount of allowances shall be the member states with a gdp per capita at market prices below 65 % of the union average during the period 2016 to 2018. the funds corresponding to this quantity of allowances shall be distributed in accordance with part b of annex iib.


### 3. member states shall determine the use of revenues generated from the auctioning of allowances , except for the revenues established as own resources in accordance with article 311(3) tfeu and entered in the union budget. member states shall use their revenues generated from the auctioning of allowances referred to in paragraph 2 , with the exception of the revenues used for the compensation of indirect carbon costs referred to in article 10a(6) , for one or more of the following:; ### 3. member states shall submit to the commission a plan together with the update of the integrated national energy and climate plan referred to in article 14(1) and (2) of regulation (eu) 2018/1999 detailing how they intend to use of revenues generated from the auctioning of allowances , except for the revenues established as own resources in accordance with article 311(3) tfeu and entered in the union budget in order to support the social climate fund under regulation (eu) …/… [social climate fund regulation]. articles 9 and 10 of regulation (eu) 2018/1999 shall apply to the preparation and assessment of the updated integrated national energy and climate plans. member states shall explain in the plan how the use of eu ets revenues would contribute to close the investment gap associated with the member states' climate and energy targets , while ensuring a just transition in line with the council recommendation on ensuring a fair transition towards climate neutrality and with the objectives and targets of the eu pillar of social rights. priority shall be given to investments that also contribute to eradicate energy and mobility poverty as defined under regulation (eu) …/… [social climate fund regulation].


### paragraph 1 is amended as follows: ### paragraph 1 is amended as follows:


### in the case of installations covered by the obligation to conduct an energy audit under article 8(4) of directive 2012/27/eu of the european parliament and of the council(*) [article reference to be updated with the revised directive] , free allocation shall only be granted fully if the recommendations of the audit report are implemented , to the extent that the pay-back time for the relevant investments does not exceed five years and that the costs of those investments are proportionate. otherwise , the amount of free allocation shall be reduced by 25 %. the amount of free allocation shall not be reduced if an operator demonstrates that it has implemented other measures which lead to greenhouse gas emission reductions equivalent to those recommended by the audit report. the measures referred to in the first subparagraph shall be adjusted accordingly. ### during the transitional period referred to in chapter x of regulation (eu) …/…[cbam regulation] , free allocation shall only be granted to those installations that are subject to a decarbonisation and zero pollution action plan in accordance with article 10aa.


### by way of derogation from the previous subparagraph , for the first years of operation of regulation [cbam] , the production of these products shall benefit from free allocation in reduced amounts. a factor reducing the free allocation for the production of these products shall be applied (cbam factor). the cbam factor shall be equal to 100 % for the period during the entry into force of [cbam regulation] and the end of 2025 , 90 % in 2026 and shall be reduced by 10 percentage points each year to reach 0 % by the tenth year. ### deleted


### the reduction of free allocation shall be calculated annually as the average share of the demand for free allocation for the production of products listed in annex i of regulation [cbam] compared to the calculated total free allocation demand for all installations , for the relevant period referred to in article 11 , paragraph 1. the cbam factor shall be applied. ### deleted


### no free allocation shall be given in relation to the production of products listed in annex i of regulation [cbam] as from the date of application of the carbon border adjustment mechanism. ### no free allocation shall be given in relation to the production of products listed in annex i of regulation [cbam] as from the date of application of the carbon border adjustment mechanism. seventy-five percent (75 %) of the allowances resulting from that reduction shall be made available to the innovation fund referred to in paragraph 8. the revenues from the auctioning of the remaining allowances that would have otherwise be allocated for free shall be used to finance climate mitigation and adaptation in vulnerable developing countries , in particular least developed countries and small island developing states.


### by way of derogation from the previous subparagraph , for the first years of operation of regulation [cbam] , the production of these products shall benefit from free allocation in reduced amounts. a factor reducing the free allocation for the production of these products shall be applied (cbam factor). the cbam factor shall be equal to 100 % for the period during the entry into force of [cbam regulation] and the end of 2025 , 90 % in 2026 and shall be reduced by 10 percentage points each year to reach 0 % by the tenth year. ### by way of derogation from the previous subparagraph , for the first years of operation of regulation [cbam] , the production of these products shall benefit from free allocation in reduced amounts. a factor reducing the free allocation for the production of these products shall be applied (cbam factor). the cbam factor shall be equal to 100 % for the period from the entry into force of [cbam regulation] until 31 december 2024 , 90 % in 2025 , 80 % in 2026 , 70 % in 2027 , 50 % in 2028 , 25 % in 2029 and reach 0 % in 2030.


### 365 million allowances from the quantity which could otherwise be allocated for free pursuant to this article , and 85 million allowances from the quantity which could otherwise be auctioned pursuant to article 10 , as well as the allowances resulting from the reduction of free allocation referred to in article 10a(1a) , shall be made available to a fund with the objective of supporting innovation in low-carbon technologies and processes , and contribute to zero pollution objectives (the ‘innovation fund’). allowances that are not issued to aircraft operators due to the closure of aircraft operators and which are not necessary to cover any shortfall in surrenders by those operators , shall also be used for innovation support as referred to in the first subparagraph. ### 375 million allowances that were set to be allocated for free pursuant to this article , and 75 million allowances from the quantity which could otherwise be auctioned pursuant to article 10 , as well as seventy -five percent (75 %) of the allowances resulting from the reduction of free allocation referred to in article 10a(1a) , shall be made available to a fund with the objective of supporting innovation in zero-emission technologies and processes and contributing to zero pollution and circularity objectives , prioritising technologies and processes addressing multiple environmental impacts (the ‘innovation fund’). the investments supported by the fund shall comply with the ´do no significant harm ´principle and ´minimum safeguards´ referred to respectively in articles 17 and 18 of regulation (eu) 2020/852. allowances that are not issued to aircraft operators due to the closure of aircraft operators and which are not necessary to cover any shortfall in surrenders by those operators , shall also be cancelled.


### the innovation fund shall cover the sectors listed in annex i and annex iii , including environmentally safe carbon capture and utilisation (“ccu”) that contributes substantially to mitigating climate change , as well as products substituting carbon intensive ones produced in sectors listed in annex i , and to help stimulate the construction and operation of projects aimed at the environmentally safe capture and geological storage (“ccs”) of co2 , as well as of innovative renewable energy and energy storage technologies; in geographically balanced locations. the innovation fund may also support break-through innovative technologies and infrastructure to decarbonise the maritime sector and for the production of low- and zero-carbon fuels in aviation , rail and road transport. special attention shall be given to projects in sectors covered by the [cbam regulation] to support innovation in low carbon technologies , ccu , ccs , renewable energy and energy storage , in a way that contributes to mitigating climate change. ### the innovation fund shall cover the sectors listed in annex i , prioritising solutions that have the greatest potential in terms of ghg emissions reduction , as well as products substituting carbon intensive ones produced in sectors listed in annex i , project and measures supporting circularity , as well as of innovative renewable energy and energy storage technologies; in geographically balanced locations. the innovation fund may also support zero-emission technologies and infrastructure to decarbonise the maritime sector and for the production of zero-emission fuels in aviation , rail and road transport. special attention shall be given to projects in sectors covered by the [cbam regulation] to support circularity measures , innovation in zero-emission technologies , renewable energy and energy storage , in a way that contributes to mitigating climate change.


### projects in the territory of all member states , including small-scale projects , shall be eligible. technologies receiving support shall be innovative and not yet commercially viable at a similar scale without support but shall represent breakthrough solutions or be sufficiently mature for application at pre-commercial scale. ### projects in the territory of all member states , including small-scale projects , shall be eligible. technologies receiving support shall be innovative and not yet commercially viable at a similar scale without support but shall be sufficiently mature for application at pre-commercial scale. the innovation fund shall also support the deployment of zero-emission technologies that may no longer be considered as innovative , but nevertheless hold a significant abatement potential necessary to reach the union´s energy and climate targets for 2030.


### the commission shall ensure that the allowances destined for the innovation fund are auctioned in accordance with the principles and modalities laid down in article 10(4). proceeds from the auctioning shall constitute external assigned revenue in accordance with article 21(5) of the financial regulation. budgetary commitments for actions extending over more than one financial year may be broken down over several years into annual instalments. ### the commission shall ensure that the allowances destined for the net-zero fund are auctioned in accordance with the principles and modalities laid down in article 10(4). proceeds from the auctioning shall constitute external assigned revenue in accordance with article 21(5) of the financial regulation. budgetary commitments for actions extending over more than one financial year may be broken down over several years into annual instalments.


### projects shall be selected on the basis of objective and transparent criteria , taking into account , where relevant , the extent to which projects contribute to achieving emission reductions well below the benchmarks referred to in paragraph 2. projects shall have the potential for widespread application or to significantly lower the costs of transitioning towards a low-carbon economy in the sectors concerned. projects involving ccu shall deliver a net reduction in emissions and ensure avoidance or permanent storage of co2. in the case of grants provided through calls for proposals , up to 60 % of the relevant costs of projects may be supported , out of which up to 40 % need not be dependent on verified avoidance of greenhouse gas emissions , provided that pre-determined milestones , taking into account the technology deployed , are attained. in the case of support provided through competitive bidding and in the case of technical assistance support , up to 100 % of the relevant costs of projects may be supported. ### projects shall be selected on the basis of objective and transparent criteria , taking into account the extent to which projects contribute to achieving emission reductions in line with the union 2030 climate target set out in regulation (eu) 2021/1119. projects shall have the potential for widespread application or to significantly lower the costs of transitioning towards a climate-neutral , sustainable , non-toxic , resource-efficient , renewable energy-based , resilient and competitive circular economy in the sectors concerned. in the case of grants provided through calls for proposals , up to 60 % of the relevant costs of projects may be supported , out of which up to 40 % need not be dependent on verified avoidance of greenhouse gas emissions , provided that pre-determined milestones , taking into account the technology deployed , are attained. in the case of support provided through competitive bidding and in the case of technical assistance support , up to 100 % of the relevant costs of projects may be supported.


### the commission is empowered to adopt delegated acts in accordance with article 23 to supplement this directive concerning rules on the operation of the innovation fund , including the selection procedure and criteria , and the eligible sectors and technological requirements for the different types of support. ### at least fifty percent (50 %) of the innovation fund shall be allocated through competitive bidding in the form of carbon contracts for differences. support provided through competitive bidding for carbon contract for difference shall aim at accelerating the transition towards zero-emission energy intensive industries , in particular those covered by the cbam regulation , and shall only be granted to projects implementing technologies that are fully compatible with the objective of limiting global warming to 1 ,5 c above pre-industrial levels and exclude the direct or indirect use of fossil fuels and nuclear energy.


### a fund to support investments proposed by the beneficiary member states , including the financing of small-scale investment projects , to modernise energy systems and improve energy efficiency shall be established for the period from 2021 to 2030 (the ‘modernisation fund’). the modernisation fund shall be financed through the auctioning of allowances as set out in article 10 , for the beneficiary member states set out therein. ### a fund to support investments proposed by the beneficiary member states , including the financing of small-scale investment projects , to modernise energy systems and improve energy efficiency , in member states with a gdp per capita at market prices below 60 % of the union average in 2013 , shall be established for the period from 2021 to 2030 (the ‘modernisation fund’). the modernisation fund shall be financed through the auctioning of allowances as set out in article 10 , for the beneficiary member states set out therein.


### a fund to support investments proposed by the beneficiary member states , including the financing of small-scale investment projects , to modernise energy systems and improve energy efficiency shall be established for the period from 2021 to 2030 (the ‘modernisation fund’). the modernisation fund shall be financed through the auctioning of allowances as set out in article 10 , for the beneficiary member states set out therein. ### a fund to support investments proposed by the beneficiary member states , including the financing of small-scale investment projects , to modernise energy systems and improve energy efficiency shall be established for the period from 2021 to 2030 (the ‘modernisation fund’). the modernisation fund shall be financed through the auctioning of allowances as set out in article 10 , for the beneficiary member states set out therein.


### the investments supported shall be consistent with the aims of this directive , as well as the objectives of the communication from the commission of 11 december 2019 on the european green deal (*) and regulation (eu) 2021/1119 of the european parliament and of the council (**) and the long-term objectives as expressed in the paris agreement. no support from the modernisation fund shall be provided to energy generation facilities that use fossil fuels.”; ### the investments supported shall be consistent with the aims of this directive , as well as the priority objectives set out in article 2 of regulation (eu) …/… [8th environmental action programme] and with regulation (eu) 2021/1119 of the european parliament and of the council (**) and the long-term objectives as expressed in the paris agreement. no support from the modernisation fund shall be provided to energy generation facilities that use fossil fuels or to nuclear-energy related activities.”;


### 2. at least 80 % of the financial resources from the modernisation fund shall be used to support investments in the following: ### 2. all the financial resources from the modernisation fund shall be used to support investments in the following:


### the improvement of demand side energy efficiency , including in transport , buildings , agriculture and waste; ### the reduction of overall energy use through demand side management and energy efficiency , including in transport , buildings , agriculture and waste;


### the support of low-income households , including in rural and remote areas , to address energy poverty and to modernise their heating systems; and ### the support of low-income households , including in rural and remote areas , to address energy poverty , in particular by investing in deep or staged deep renovation of building and by replacing their heating systems by renewables-based ones , ensuring synergies and complementarity with the social climate fund; and


### a just transition in carbon-dependent regions in the beneficiary member states , so as to support the redeployment , re-skilling and up-skilling of workers , education , job-seeking initiatives and start-ups , in dialogue with the social partners.; ### a just transition in carbon-dependent regions in the beneficiary member states in line with the territorial just transition plans and in compliance with the eligibility criteria for activities set out in articles 8 and 9 of regulation (eu) 2021/1056 , so as to support the redeployment , re-skilling and up-skilling of workers , education , job-seeking initiatives and start-ups , in dialogue with civil society and social partners.;


### a just transition in carbon-dependent regions in the beneficiary member states , so as to support the redeployment , re-skilling and up-skilling of workers , education , job-seeking initiatives and start-ups , in dialogue with the social partners.; ### a just transition in carbon-dependent regions in the beneficiary member states , so as to support the mitigation of the economic impact of the transition impact on citizens , redeployment , re-skilling and up-skilling of workers , education , job-seeking initiatives and start-ups , in dialogue with the social partners.;


### in order to provide further incentives for reducing greenhouse gas emissions and improving energy efficiency , the determined union-wide ex-ante benchmarks shall be reviewed before the period from 2026 to 2030 in view of potentially modifying the definitions and system boundaries of existing product benchmarks.; ### in order to provide further incentives for reducing greenhouse gas emissions and improving energy efficiency , the determined union-wide ex-ante benchmarks shall be reviewed within 6 months of the entry into force of this directive in view of potentially modifying the definitions , scope and system boundaries of existing product benchmarks to ensure that a product benchmark is independent of the feedstock or the type of production process , to account for the full potential of product substitution and the circular use of materials , while ensuring that installations with partially or fully decarbonised processes are not excluded.;


### for the period from 2026 to 2030 , the benchmark values shall be determined in the same manner as set out in points (a) and (d) on the basis of information submitted pursuant to article 11 for the years 2021 and 2022 and on the basis of applying the annual reduction rate in respect of each year between 2008 and 2028.; ### for the period until the end of the transitional period referred to in chapter x of regulation (eu) …/… [cbam regulation] , the benchmark values shall be determined in the same manner as set out in points (a) and (d) on the basis of information submitted pursuant to article 11 for the years 2021 and 2022 and on the basis of applying the annual reduction rate in respect of each year between 2008 and 2028.;


### where the annual reduction rate exceeds 2 ,5 % or is below 0 ,2 % , the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant , in respect of each year between 2008 and 2028.; ### where the annual reduction rate exceeds 2 ,5 % or is below 1 % , the benchmark values for the period until the end of the transitional period referred to in chapter x of regulation (eu) …/… [cbam regulation] shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant , in respect of each year between 2008 and 2028.;


### paragraphs 3 and 4 are deleted; ### paragraphs 3 , 4 , 5a and 6 are deleted;


### in paragraph 6 , the first subparagraph is replaced by the following: ### deleted


### (13) in article 10c , paragraph 7 is replaced by the following: ### (13) article 10c is deleted;


### in [the year following entry into force of this amendment] , the union-wide quantity of allowances shall be decreased by [-- million allowances (to be determined depending on year of entry into force)]. in the same year , the union-wide quantity of allowances shall be increased by 79 million allowances for maritime transport. starting in [the year following entry into force of this amendment] , the linear factor shall be 4 ,2 %. the commission shall publish the union-wide quantity of allowances within 3 months of [date of entry into force of the amendment to be inserted].; ### in [the year following entry into force of this amendment] , the union-wide quantity of allowances shall be decreased by 450 million allowances. in the same year , the union-wide quantity of allowances shall be increased by 79 million allowances for maritime transport. starting in [the year following entry into force of this amendment] , the linear factor shall be 5 ,2 %. the commission shall publish the union-wide quantity of allowances within 3 months of [date of entry into force of the amendment to be inserted].;


### measures intended to improve energy efficiency , district heating systems and insulation , or to provide financial support in order to address social aspects in lower- and middle-income households , including by reducing distortive taxes;; ### measures intended to improve energy efficiency , efficient and renewable heating and cooling systems , and the uptake of renewable energies in district heating systems , insulation , or to provide financial support in order to address social aspects in lower- and middle-income households , including by removing distortive taxes;;


### present text ### amendment


### (62) considering the need to deliver a stronger investment signal to reduce emissions in a cost-efficient manner and with a view to strengthening the eu ets , decision (eu) 2015/1814 should be amended so as to increase the percentage rate for determining the number of allowances to be placed each year in the market stability reserve. in addition , for lower levels of the tnac , the intake should be equal to the difference between the tnac and the threshold that determines the intake of allowances. this would prevent the considerable uncertainty in the auction volumes that results when the tnac is close to the threshold , and at the same time ensure that the surplus reaches the volume bandwidth within which the carbon market is deemed to operate in a balanced manner. ### (62) considering the need to deliver a stronger investment signal to reduce emissions in a cost-efficient manner and with a view to strengthening the eu ets , decision (eu) 2015/1814 should be amended so as to increase the percentage rate for determining the number of allowances to be placed each year in the market stability reserve to 36 %. the upper and lower thresholds should also be gradually reduced to zero by 2030 so that the reserve is kept fit for purpose despite unforeseeable external shocks.


### (64) the analysis of the impact assessment accompanying the proposal for this directive has also shown that net demand from aviation should be included in the total number of allowances in circulation. in addition , since aviation allowances can be used in the same way as general allowances , including aviation in the reserve would make it a more accurate , and thus a better tool to ensure the stability of the market. the calculation of the total number of allowances in circulation should include aviation emissions and allowances issued in respect of aviation as of the year following the entry into force of this directive. ### deleted


### (67) it is necessary to amend regulation (eu) 2015/757 to take into account the inclusion of the maritime transport sector in the eu ets. regulation (eu) 2015/757 should be amended to oblige companies to report aggregated emissions data at company level and to submit for approval their verified monitoring plans and aggregated emissions data at company level to the responsible administering authority. in addition , the commission should be empowered to adopt delegated acts to amend the methods for monitoring co2 emissions and the rules on monitoring , as well as any other relevant information set out in regulation (eu) 2015/757 , to ensure the effective functioning of the eu ets at administrative level and to supplement regulation (eu) 2015/757 with the rules for the approval of monitoring plans and changes thereof by administering authorities , with the rules for the monitoring , reporting and submission of the aggregated emissions data at company level and with the rules for the verification of the aggregated emissions data at company level and for the issuance of a verification report in respect of the aggregated emissions data at company level. the data monitored , reported and verified under regulation (eu) 2015/757 might also be used for the purpose of compliance with other union law requiring the monitoring , reporting and verification of the same ship information. ### (67) it is necessary to amend regulation (eu) 2015/757 to take into account the inclusion of the maritime transport sector in the eu ets. regulation (eu) 2015/757 should be amended to oblige companies to report aggregated emissions data at company level and to submit for approval their verified monitoring plans and aggregated emissions data at company level to the responsible administering authority. in addition , the commission should be empowered to adopt delegated acts to amend the methods for monitoring co2 , ch4 , n2o and black carbon emissions and the rules on monitoring , as well as any other relevant information set out in regulation (eu) 2015/757 , to ensure the effective functioning of the eu ets at administrative level and to supplement regulation (eu) 2015/757 with the rules for the approval of monitoring plans and changes thereof by administering authorities , with the rules for the monitoring , reporting and submission of the aggregated emissions data at company level and with the rules for the verification of the aggregated emissions data at company level and for the issuance of a verification report in respect of the aggregated emissions data at company level. the data monitored , reported and verified under regulation (eu) 2015/757 might also be used for the purpose of compliance with other union law requiring the monitoring , reporting and verification of the same ship information.


### ‘emissions’ means the release of greenhouse gases from sources in an installation or the release from an aircraft performing an aviation activity listed in annex i or from ships performing a maritime transport activity listed in annex i of the gases specified in respect of that activity , or the release of greenhouse gases corresponding to the activity referred to in annex iii;; ### ‘emissions’ means the release of greenhouse gases into the atmosphere from sources in an installation or the release from an aircraft performing an aviation activity listed in annex i or from ships performing a maritime transport activity listed in annex i of the gases specified in respect of that activity;


### ‘greenhouse gas emissions permit’ means the permit issued in accordance with articles 5 , 6 and 30b;; ### ‘greenhouse gas emissions permit’ means the permit issued in accordance with articles 5 and 6;


### ‘regulated entity’ for the purposes of chapter iva shall mean any natural or legal person , except for any final consumer of the fuels , that engages in the activity referred to in annex iii and that falls within one of the following categories: ### deleted


### (11) article 10 is amended as follows: ### (11) article 10 is amended as follows:


### 5. welcomes that , following the full transposition of the technical pillar of the fourth railway package in october 2020 , the agency has successfully and in a timely manner delivered authorisations for placing 1260 railway vehicles on the market , 41 single safety certificates for railway undertakings and 2 ertms trackside approvals despite the significant increase in the number of applications received in 2021; recalls the importance of completion of ertms by 2030 as a matter of urgency; ### 5. welcomes that , following the full transposition of the technical pillar of the fourth railway package in october 2020 , the agency has successfully and in a timely manner delivered authorisations for placing 1260 railway vehicles on the market , 41 single safety certificates for railway undertakings and 2 ertms trackside approvals despite the significant increase in the number of applications received in 2021; recalls that the ertms is a horizontal priority within the trans-european transport network and the importance of completion of ertms by 2030 as a matter of urgency;


### 6. salutes that the agency has continued to successfully deliver its tasks in the field of eu rail interoperability , safety and harmonisation; welcomes the continuous commitment from the agency to the objective of creating a single european railway area; ### 6. salutes that the agency has continued to successfully deliver its tasks in the field of eu rail interoperability , safety and harmonisation; welcomes the continuous commitment from the agency to the objective of creating a single european railway area; recalls the important role of rail in ensuring sustainable travel and freight throughout the union for decades to come , and the primary importance that should thus be attached to the agency's work;


### 7. commends the agency continuous effort to improve its efficiency and budget execution through its strengthening plan drafted in 2021; notes however that these efforts cannot compensate the insufficient budget of the agency; ### 7. commends the agency continuous effort to improve its efficiency and budget execution through its strengthening plan drafted in 2021; notes however that these efforts cannot compensate the insufficient budget of the agency; notes the systematic budget outruns reported by the agency;


### 8. recalls that the agency has the smallest budget among the transport agencies despite the outstanding environmental performance and other benefits of rail transport which the commission established as one of its priorities with the action plan to boost long distance and cross-border passenger rail; calls for an increase of the budget of the agency in order to provide it with the necessary means to enable it to act as an efficient authority and to fulfil its tasks , particularly those with regard to increasing competitiveness , improving safety and cross-border interoperability; ### 8. recalls that the agency has the smallest budget among the transport agencies and that this trend continued even throughout the european year of rail , despite the outstanding environmental performance and other benefits of rail transport , which the commission established as one of its priorities with the action plan to boost long distance and cross-border passenger rail , as part of the sustainable and smart mobility strategy; calls for an increase of the budget of the agency in order to provide it with the necessary means to enable it to act as an efficient authority and to fulfil its tasks , particularly those with regard to increasing competitiveness , improving safety and cross-border interoperability; demands that the agency's budget progressively matches the level of other transport sector agencies , and that , at the very least , for the next union budget it is above that of joint undertakings in other transport modes , such as sesar and clean sky 2;


### 6. salutes the launch , in december 2021 of the clean aviation joint undertaking that will run the clean aviation programme from 2022 to the end 2031 with projected funding of eur 4.1 billion (including eur 1.7 billion from the european union); commends the preparatory work of the undertaking in that regard; ### 6. salutes the launch , in december 2021 of the clean aviation joint undertaking that will run the clean aviation programme from 2022 to the end 2031 with projected funding of eur 4.1 billion (including eur 1.7 billion from the european union); commends the preparatory work of the undertaking in that regard and emphasises that its activities should be strictly geared towards the development of zero-emission technologies and their respective fuels;


### 8. salutes the progress of the undertaking in r&d related to technologies for engine manufacturing and saf and calls to further intensify the research in order to contribute to the greening of aviation by technological advancements; calls on the commission to provide sufficient funding to implement those new technologies via retrofitting and renewal schemes. ### 8. salutes the progress of the undertaking in r&d related to technologies for engine manufacturing and saf and calls to further intensify the research in order to contribute to the greening of aviation by technological advancements; recalls that the only way to efficiently and structurally green aviation and to avoid demand management measures is to invest massively in the production of currently available zero-emission fuels , particularly synthetic fuels with direct air capture , and considers that sufficient funding by the commission should be provided to such production;


### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. in particular , the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec of the european parliament and the council31 should provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. combined with other measures , this should , in the medium to long term , reduce the costs for buildings and road transport , and provide new opportunities for job creation and investment. ### (8) eradicating energy and mobility poverty across the union is an essential part of the eu green deal’s objective of ensuring a just transition where no one is left behind. a wide range of eu funding instruments , including the cohesion funds , the recovery and resilience facility , and revenues currently generated by the eu ets , are available for member states to invest in the deep renovation of buildings , the creation of quality green jobs as well as the development of the necessary skills for the green and digital transition , the decarbonisation of the transport sector and in greater access to public , shared soft mobility. a particular attention is required for the most disadvantaged groups as well as the households in situation of mobility and energy poverty to ensure that they actually benefit from the implementation of those funding instruments.


### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. in particular , the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec of the european parliament and the council31 should provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. combined with other measures , this should , in the medium to long term , reduce the costs for buildings and road transport , and provide new opportunities for job creation and investment. ### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. there should be an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. combined with direct measures , this should , in the medium to long term , reduce the costs for sustainable , efficient and affordable housing , as well for a zero-emission mobility , eradicate energy and mobility poverty and provide new opportunities for job creation and investment.


### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. in particular , the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec of the european parliament and the council31 should provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. combined with other measures , this should , in the medium to long term , reduce the costs for buildings and road transport , and provide new opportunities for job creation and investment. ### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. there should be an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. combined with direct measures , this should , in the medium to long term , reduce the costs for sustainable , efficient and affordable housing , as well as and zero and low emission mobility , eradicate energy and transport poverty and provide new opportunities for job creation and investment.


### (9) however , resources are needed to finance those investments. in addition , before they have taken place , the cost supported by households and transport users for heating , cooling and cooking , as well as for road transport , is likely to increase as fuel suppliers subject to the obligations under the emission trading for buildings and road transport pass on costs on carbon to the consumers. ### (9) high fossil gas prices causing extreme price spikes in certain member states in the 2021/2022 heating season , aggravated by import dependencies and war , have exposed once more the eu dependence on imported fossil gas for its industries and households , especially felt by the poorest of society. investments in energy efficiency measures , as well as renewable energy based heating systems , including with electric heat pumps , heating and cooling at district level and participation in renewable energy communities , are hence the most cost-effective method of reducing import dependency and emissions while increasing eu resilience. notably in the group of poorest households explicit funding schemes are necessary to ensure compliances with the afore-mentioned principles


### (9) however , resources are needed to finance those investments. in addition , before they have taken place , the cost supported by households and transport users for heating , cooling and cooking , as well as for road transport , is likely to increase as fuel suppliers subject to the obligations under the emission trading for buildings and road transport pass on costs on carbon to the consumers. ### (9) however , resources are needed to finance those investments. in addition , before they have taken place , the cost supported by households and transport users for heating , cooling and cooking , as well as for road transport , is likely to increase. an annual indexation should increase the volume of this fund over time , so as to ensure continued investments.


### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , vulnerable micro-enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption. ### (10) the increase and global fluctuations in the price for fossil fuels disproportionally affects vulnerable households , and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption. ambitious climate action and a faster transition to a 100% renewables based and highly energy efficient system would allow the union to reduce its more than 60 % dependency rate on fossil fuel imports1a and thus protect eu citizens from skyrocketing fossil energy prices.


### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , vulnerable micro-enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption. ### (10) the increase and global fluctuations in the price for fossil fuels disproportionally affects vulnerable households , vulnerable micro-enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption. ambitious climate action and a faster transition to a 100% renewables based and highly energy efficient system would allow the union to reduce its more than 60 % dependency rate on fossil fuel imports 2a and thus protect eu citizens from skyrocketing fossil energy prices.


### (11) therefore , a part of the revenues generated by the inclusion of building and road transport into the scope of directive 2003/87/ec should be used to address the social impacts arising from that inclusion , for the transition to be just and inclusive , leaving no one behind. ### deleted


### (11) therefore , a part of the revenues generated by the inclusion of building and road transport into the scope of directive 2003/87/ec should be used to address the social impacts arising from that inclusion , for the transition to be just and inclusive , leaving no one behind. ### (11) in order to maximise the effectiveness , it should be possible to combine this fund with other sources of eu financing , notably the recovery and resilience facility. thus different funding streams can be used to address the social impacts and ensure that the transition to be just and inclusive , leaving no one behind.


### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users. ### (13) the union and its member states will not be able to meet their climate and environmental objectives without properly addressing energy and mobility poverty. yet there is currently no standard union-level definitions of energy and mobility poverty across the union , and only one third of member states have adopted a national definition of energy poverty. as a result , no transparent and comparable data on energy and mobility poverty in the union is currently available , hindering the possibility to effectively monitor progress at national level to eradicate energy and mobility poverty. a social climate fund (‘the fund’) should therefore be established to support member states in their efforts to eradicate energy and mobility poverty. this should be achieved notably through adaptive measures and investments with lasting impact intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , focusing particularly on those living in the worst performing buildings and in social housing , increased access to renewable energy for heating and cooling , as well as measures granting improved access to zero-emission sustainable mobility and public transport in particular for those living in rural , insular and less accessible areas for the less developed regions and territories , including less developed peri-urban areas.


### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users. ### (13) a social climate fund (‘the fund’) should therefore be established to address the social impacts of energy and mobility poverty , by targeted actions contributing to meet the union climate and environmental objectives at the same time. this should be achieved notably through adaptive measures and investments with lasting impact intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , in particular for those living in the worst performing buildings and in social housing , increased access to renewable energy for heating and cooling , as well as measures granting improved access to zero- emission sustainable mobility and public transport , in particular for those living in rural , insular and less accessible areas and in the less developed regions and territories , including less developed peri-urban areas.


### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users. ### (13) a social climate fund (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address social impacts especially in buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably through measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and transport users in transport poverty.


### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable micro-enterprises and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including temporary direct income support to mitigate adverse income effects in the shorter term. ### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should identify and map households in situation of energy and mobility poverty , and provide a detailed analysis , conducted together with the local and regional authorities , social partners and civil society , on the main causes of energy and mobility poverty in their respective territories. the plans should also set targets for the progressive and effective eradication of energy and mobility poverty. secondly , they should provide households in energy poverty and people facing mobility poverty the necessary resources to finance and carry out investments in the deep renovation of buildings , in particular worst performing buildings and social housing , in powering any residual demand for heating and cooling with renewable energy , and in zero-emission mobility. the plans should mainly have an investment component promoting the long-term solutions of phasing out fossil fuels reliance. other measures such as direct support can be envisaged to mitigate adverse income effects but should be limited in time and conditioned to long-term investments with long lasting impacts.


### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable micro-enterprises and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including temporary direct income support to mitigate adverse income effects in the shorter term. ### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable micro-enterprises and transport users in transport poverty the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should focus on an investment component promoting the long-term solution of reduced fossil fuels reliance.


### (15) member states , in consultation with regional level authorities , are best placed to design and to implement plans that are adapted and targeted to their local , regional and national circumstances as their existing policies in the relevant areas and planned use of other relevant eu funds. in that manner , the broad diversity of situations , the specific knowledge of local and regional governments , research and innovation and industrial relations and social dialogue structures , as well as national traditions , can best be respected and contribute to the effectiveness and efficiency of the overall support to the vulnerable. ### (15) member states , in consultation with regional and local authorities , civil society , economic and social partners , are best placed to design and to implement plans that are adapted and targeted to their local , regional and national circumstances as their existing policies in the relevant areas and planned use of other relevant eu funds. in that manner , the broad diversity of situations , the specific knowledge of local and regional governments , of social and economic partners and the civil society , research and innovation and industrial relations and social dialogue structures , as well as national traditions , can best be respected and contribute to the effectiveness and efficiency of the overall support to the vulnerable.


### (16) ensuring that the measures and investments are particularly targeted towards energy poor or vulnerable households , vulnerable micro-enterprises and vulnerable transport users is key for a just transition towards climate neutrality. support measures to promote reductions in greenhouse gas emissions should help member states to address the social impacts arising from the emissions trading for the sectors of buildings and road transport. ### (16) ensuring that the measures and investments are particularly targeted towards energy poor or vulnerable individuals , households and vulnerable transport users is key for a just transition towards climate neutrality.