P9_TA(2020)0253

European Climate Law ***I

Amendments adopted by the European Parliament on 8 October 2020 on the proposal for a regulation of the European Parliament and of the Council establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (European Climate Law) (COM(2020)0080 — COM(2020)0563 — C9-0077/2020 — 2020/0036(COD)) (1)

(Ordinary legislative procedure: first reading)

(2021/C 395/22)

Amendment 1

Draft legislative resolution

Citation 5 a (new)

Draft legislative resolution Amendment — having regard to the United Nations 2030 Agenda for Sustainable Development and to the Sustainable Development Goals (SDGs), including SDG 3 ‘Global Health and Well-Being’,

Amendment 2

Draft legislative resolution

Citation 5 b (new)

Draft legislative resolution Amendment — having regard to the dramatic consequences of air pollution on human health that causes, according to the European Environment Agency, 400 000 premature deaths per year,

Amendment 3

Proposal for a regulation

Recital - 1 (new)

Text proposed by the Commission Amendment (-1) The existential threat posed by climate change requires enhanced ambition and increased climate action by the Union and Member States. The Union is committed to stepping up efforts to tackle climate change and to delivering on the implementation of the 2015 Paris Agreement on climate change following the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’) (1a) on the basis of equity and best available science, taking its fair share of the global effort to limiting the global temperature increase to 1,5 oC above pre-industrial levels.

Amendment 4

Proposal for a regulation

Recital 1

Text proposed by the Commission Amendment (1) The Commission has, in its Communication of 11 December 2019 entitled ‘The European Green Deal’ (19), set out a new growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient and competitive economy, where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use. It also aims to protect, conserve and enhance the Union’s natural capital, and protect the health and well-being of citizens from environment-related risks and impacts. At the same time, this transition must be just and inclusive, leaving no one behind. (1) The Commission has, in its Communication of 11 December 2019 entitled ‘The European Green Deal’ (19) , set out a new sustainable growth strategy that aims to transform the Union into a healthier, fair and prosperous society, with a modern, sustainable, resource-efficient and internationally competitive economy , and high-quality jobs , where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use. It also aims to protect, conserve , restore and enhance the Union’s natural capital, marine and terrestrial ecosystems and biodiversity, and protect the health and well-being of citizens from environment-related risks and impacts. That transition must be based on the latest independent scientific evidence. At the same time, it must be socially just and inclusive, and be based on solidarity and collaborative effort at the Union level, ensuring that no one is left behind , while also aiming at creating economic growth, high-quality jobs, and a predictable environment for investment, and follow the ‘do no harm’ principle .

Amendment 5

Proposal for a regulation

Recital 2

Text proposed by the Commission Amendment (2) The Intergovernmental Panel on Climate Change’s (IPCC) Special Report on the impacts of global warming of 1,5 oC above pre-industrial levels and related global greenhouse gas emission pathways (20) provides a strong scientific basis for tackling climate change and illustrates the need to step up climate action . It confirms that greenhouse gas emissions need to be urgently reduced, and that climate change needs to be limited to 1,5 oC, in particular to reduce the likelihood of extreme weather events. The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services’ (IPBES) 2019 Global Assessment Report (21) showed worldwide erosion of biodiversity, with climate change as the third most important driver of biodiversity loss (22). (2) The Intergovernmental Panel on Climate Change’s (IPCC) Special Report on the impacts of global warming of 1,5 oC above pre-industrial levels and related global greenhouse gas emission pathways (20) provides a strong scientific basis for tackling climate change and illustrates the need to rapidly step up climate action and for a transition to a climate-neutral economy . It confirms that greenhouse gas emissions need to be urgently reduced, and that climate change needs to be limited to 1,5 oC, in particular to reduce the likelihood of extreme weather events and of reaching tipping points . The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services’ (IPBES) 2019 Global Assessment Report (21) showed worldwide erosion of biodiversity, with climate change as the third most important driver of biodiversity loss (22). It also showed that nature-based solutions are estimated to provide 37 % of climate change mitigation up to 2030. Climate change has a severe impact on marine and terrestrial ecosystems which act as essential sinks for anthropogenic carbon emissions with a gross absorption of about 60 % of global anthropogenic emissions per year.

Amendment 6

Proposal for a regulation

Recital 3

Text proposed by the Commission Amendment (3) A fixed long-term objective is crucial to contribute to economic and societal transformation, jobs, growth, and the achievement of the United Nations Sustainable Development Goals, as well as to move in a fair and cost-effective manner towards the temperature goal of the 2015 Paris Agreement on climate change following the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’). (3) A fixed long-term objective is crucial to contribute to a just economic and societal transformation, high-quality jobs, social welfare, sustainable growth, and the achievement of the United Nations Sustainable Development Goals, as well as to reach in a swift, fair , efficient, cost-effective , and socially just manner without leaving anyone behind the temperature goal of the 2015 Paris Agreement on climate change following the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’).

Amendment 7

Proposal for a regulation

Recital 3 a (new)

Text proposed by the Commission Amendment (3a) Science has proved the interlinkage between health, environmental and climate crisis, notably linked to the consequences of climate change and the loss of biodiversity and ecosystems. Health and sanitary crises such as COVID-19 might multiply in the decades to come and require the Union, as a global player, to implement a global strategy aimed at preventing the development of such episodes, by addressing issues at their root, and promoting an integrated approach based on the sustainable development goals.

Amendment 8

Proposal for a regulation

Recital 3 b (new)

Text proposed by the Commission Amendment (3b) According to the WHO, climate change affects the social and environmental determinants of health — clean air, safe drinking water, sufficient food and secure shelter — and 250 000 additional deaths, from malnutrition, malaria, diarrhoea and heat stress, are expected every year between 2030 and 2050, with extremely high air temperatures contributing directly to deaths, particularly amongst the elderly and vulnerable individuals. Through flood, heatwaves, drought and fires, climate change has a considerable impact on human health, including undernutrition, cardiovascular and respiratory diseases, and vector-borne infections.

Amendment 9

Proposal for a regulation

Recital 3 c (new)

Text proposed by the Commission Amendment (3c) The preamble to the Paris Agreement acknowledges the right to health as a key right. According to the United Nations Framework Convention on Climate Change, all Parties thereto are to employ appropriate methods, for example impacts assessments, formulated and determined nationally with a view to minimising adverse effects on the economy, on public health and on the quality of the environment, of projects or measures undertaken by them to mitigate or adapt climate change.

Amendment 10

Proposal for a regulation

Recital 3 d (new)

Text proposed by the Commission Amendment (3d) This Regulation contributes to protecting Union citizens’ inalienable rights to life and a safe environment, as recognised in the European Convention on Human Rights and the Charter of Fundamental Rights of the European Union, and requires the relevant Union institutions and Member States to take the measures necessary at Union or national level respectively to address the real and immediate risks, both to people’s lives and welfare and to the natural world on which they depend, posed by the global climate emergency. This Regulation should be people centred and should aim to protect the health and well-being of citizens from environment-related risks and impacts.

Amendment 153

Proposal for a regulation

Recital 3 e (new)

Text proposed by the Commission Amendment (3e) Climate protection should be an opportunity for the European economy and should help securing its industry leadership in global innovation. Sustainable production innovations can promote European industrial strength in key market segments and thus protect and create jobs. In order to achieve the legally binding 2030 target for climate and the 2050 climate-neutrality objective by reducing these emissions to net zero by 2050 at the latest, the Commission should facilitate sector-specific ‘Climate Partnerships’ at Union level by bringing together key stakeholders (e.g. from the industry, NGOs, research institutes, SMEs, trade unions and employers' organisations). The Climate Partnerships should work as a sector-specific dialogue and facilitate a sharing of best practices by European ‘decarbonising first movers’ and work as the central consulting body to the Commission when adopting its future climate-related legislative proposals.

Amendment 11

Proposal for a regulation

Recital 4

Text proposed by the Commission Amendment (4) The Paris Agreement sets out a long-term goal to keep the global temperature increase to well below 2 oC above pre-industrial levels and to pursue efforts to keep it to 1,5 oC above pre-industrial levels (23), and stresses the importance of adapting to the adverse impacts of climate change (24) and making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development (25). (4) The Paris Agreement sets out a long-term goal to pursue efforts to limit the global temperature increase to 1,5 oC above pre-industrial levels (23), to increase the ability to adapt to the adverse impacts of climate change (24) and to make finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development (25). As the overall framework for the Union’s contribution to the Paris Agreement, this Regulation should ensure that both the Union and Member States fully contribute to the achievement of those three goals of the Paris Agreement.

Amendment 12

Proposal for a regulation

Recital 5

Text proposed by the Commission Amendment (5) The Union’s and the Member States’ climate action aims to protect people and the planet, welfare, prosperity, health, food systems, the integrity of eco-systems and biodiversity against the threat of climate change, in the context of the 2030 agenda for sustainable development and in pursuit of the objectives of the Paris Agreement, and to maximize prosperity within the planetary boundaries and to increase resilience and reduce vulnerability of society to climate change. (5) The Union’s and the Member States’ climate action aims to protect people and the planet, welfare, prosperity , the economy , health, food systems, the integrity of eco-systems and biodiversity against the threat of climate change, in the context of the 2030 agenda for sustainable development and in pursuit of the objectives of the Paris Agreement, and to maximize prosperity within the planetary boundaries and to increase resilience and reduce vulnerability of society to climate change. In this light, the Union and Member States’ actions should be guided by the precautionary principle, the polluter pays principle, the energy efficiency first principle and the ‘do no harm’ principle.

Amendment 13

Proposal for a regulation

Recital 5 a (new)

Text proposed by the Commission Amendment (5a) Driven by the regulatory framework put in place by the Union and efforts taken by the European industries, Union greenhouse gas emissions were reduced by 23 % between 1990 and 2018, while the economy grew by 61 % over the same period, showing that it is possible to decouple economic growth from greenhouse gas emissions.

Amendment 14

Proposal for a regulation

Recital 6

Text proposed by the Commission Amendment (6) Achieving climate neutrality should require a contribution from all economic sectors. In light of the importance of energy production and consumption on greenhouse gas emissions, the transition to a sustainable, affordable and secure energy system relying on a well-functioning internal energy market is essential. The digital transformation, technological innovation, and research and development are also important drivers for achieving the climate-neutrality objective. (6) Achieving climate neutrality requires all economic sectors , including aviation and maritime transport, to swiftly reduce their emissions to close to zero. The polluter pays principle should be a key factor in that regard . In light of the importance of energy production and consumption on greenhouse gas emissions, the transition to a highly energy efficient and renewables-based sustainable, affordable and secure energy system, while reducing energy poverty , relying on a well-functioning internal energy market is essential. The contribution of the circular economy to climate neutrality should be expanded by improving resource efficiency and increasing the use of low-carbon materials while promoting waste prevention and recycling. The digital transformation, technological innovation and research and development, which will require additional funding, are also important drivers for achieving the climate-neutrality objective . The Union and Member States will need to adopt ambitious and coherent regulatory frameworks to ensure the contribution of all sectors of the economy to the Union climate objectives.

Amendment 15

Proposal for a regulation

Recital 6 a (new)

Text proposed by the Commission Amendment (6a) Cumulative total anthropogenic greenhouse gas emissions over time and the corresponding concentration of greenhouse gases in the atmosphere are in particular relevant for the climate system and temperature increases. The IPCC Special report on Global Warming of 1,5 oC and its underlying scenario database provide the best available and most recent scientific evidence on the remaining global greenhouse gas budget to limit the global temperature increase in the 21st century to 1,5 oC above pre-industrial levels. In order to be consistent with Union commitments of pursuing efforts to limit the temperature increase to 1,5 oC above pre-industrial levels, it is necessary to establish a Union fair share of the remaining global greenhouse gas budget. The greenhouse gas budget is also an important tool to increase transparency and accountability of the Union’s climate policies. In its in-depth analysis in support of the Commission Communication of 28 November 2018 entitled ‘A Clean Planet for all — A European long-term strategic vision for a prosperous, modern, competitive and climate neutral economy’, the Commission indicates that a 1,5 oC compatible EU-28 carbon budget for 2018-2050 would amount to 48 Gt CO2. The Commission should establish an EU-27 net greenhouse gas budget, expressed in CO2 equivalent based on the latest scientific calculations used by the IPCC, which represents the Union’s fair share of the remaining global emissions, in line with the Paris Agreement objectives. The Union’s greenhouse gas budget should guide the establishment of the Union trajectory towards net-zero greenhouse gas emissions by 2050, in particular its future 2030 and 2040 greenhouse gas targets.

Amendment 16

Proposal for a regulation

Recital 7

Text proposed by the Commission Amendment (7) The Union has been pursuing an ambitious policy on climate action and has put in place a regulatory framework to achieve its 2030 greenhouse gas emission reduction target. The legislation implementing this target consists, inter alia, of Directive 2003/87/EC of the European Parliament and of the Council (26), which establishes a system for greenhouse gas emission allowance trading within the Union, Regulation (EU) 2018/842 of the European Parliament and of the Council (27), which introduced national targets for reduction of greenhouse gas emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council (28), which requires Member States to balance greenhouse gas emissions and removals from land use, land use change and forestry. (7) The Union has put in place a regulatory framework to achieve its current 2030 greenhouse gas emission reduction target adopted before the entry into force of the Paris Agreement . The legislation implementing this target consists, inter alia, of Directive 2003/87/EC of the European Parliament and of the Council (26), which establishes a system for greenhouse gas emission allowance trading within the Union, Regulation (EU) 2018/842 of the European Parliament and of the Council (27), which introduced national targets for reduction of greenhouse gas emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council (28), which requires Member States to balance greenhouse gas emissions and removals from land use, land use change and forestry.

Amendment 17

Proposal for a regulation

Recital 7 a (new)

Text proposed by the Commission Amendment (7a) The Emissions Trading System is a cornerstone of the Union’s climate policy and its key tool for reducing emissions in a cost effective way.

Amendment 18

Proposal for a regulation

Recital 9

Text proposed by the Commission Amendment (9) The Union has, through the ‘Clean Energy for All Europeans’ package (29) been pursuing an ambitious decarbonisation agenda notably by constructing a robust Energy Union, which includes 2030 goals for energy efficiency and deployment of renewable energy in Directives 2012/27/EU (30) and (EU) 2018/2001 (31) of the European Parliament and of the Council, and by reinforcing relevant legislation, including Directive 2010/31/EU of the European Parliament and of the Council (32). (9) The Union has, through the ‘Clean Energy for All Europeans’ package (29) been pursuing a decarbonisation agenda notably by constructing a robust Energy Union, which includes 2030 goals for energy efficiency and deployment of renewable energy in Directives 2012/27/EU (30) and (EU) 2018/2001 (31) of the European Parliament and of the Council, and by reinforcing relevant legislation, including Directive 2010/31/EU of the European Parliament and of the Council (32).

Amendment 19

Proposal for a regulation

Recital 9 a (new)

Text proposed by the Commission Amendment (9a) The Commission has developed and adopted several legislative initiatives in the energy sector, in particular with regard to renewable energy, energy efficiency, including on the energy performance of buildings. Those initiatives form a package under the overarching theme of energy efficiency first and the Union's global leadership in renewables. Those initiatives should be taken into account in the national long-term progress in the work towards the 2050 climate neutrality target to ensure a highly energy efficient, renewables-based energy system and development of renewables within the Union.

Amendment 20

Proposal for a regulation

Recital 9 b (new)

Text proposed by the Commission Amendment (9b) The clean energy transition will result in an energy system in which the primary energy supply will mostly come from renewable energy sources, which will significantly improve security of supply, reduce energy dependency and promote domestic jobs.

Amendment 21

Proposal for a regulation

Recital 9 c (new)

Text proposed by the Commission Amendment (9c) The energy transition improves the energy efficiency and reduces the energy dependency of the Union and Member States. That structural change towards a more efficient economy based on renewable energy in all sectors will not only benefit the trade balance but also strengthen energy security and fight energy poverty.

Amendment 22

Proposal for a regulation

Recital 9 d (new)

Text proposed by the Commission Amendment (9d) In order to ensure solidarity and enable an effective energy transition, Union climate policy has to design a clear pathway to reach climate neutrality by 2050. The Union should remain realistic about cost-efficiency and technical challenges and ensure that dispatchable sources of energy to balance peak and minimal demand points in energy system, such as hydrogen technologies, are available and affordable.

Amendment 23

Proposal for a regulation

Recital 9 e (new)

Text proposed by the Commission Amendment (9e) Climate protection provides an opportunity for the Union economy to step up its action and reap the benefits of the first-mover advantage by leading in clean technologies. It could help securing its industry leadership in global innovation. Sustainable production innovations can promote industrial strength of the Union in key market segments and thus protect and create jobs.

Amendment 24

Proposal for a regulation

Recital 9 f (new)

Text proposed by the Commission Amendment (9f) There is a need to set support for the necessary investments in new sustainable technologies that are essential to achieve the climate-neutrality objective. In that regard, it is important to respect technological neutrality while avoiding any lock-in effect. As stated in the Commission communication of 8 July 2020 entitled ‘A hydrogen strategy for a climate-neutral Europe’, hydrogen can also play a role in supporting the Union’s commitment to reach carbon neutrality by 2050 at the latest, especially in energy-intensive sectors.

Amendment 154

Proposal for a regulation

Recital 9 g (new)

Text proposed by the Commission Amendment (9 g) The Commission should intensify its efforts to build European Alliances, especially in the battery and hydrogen sectors, as they are of utmost importance. Coordinated at European level, they offer great opportunities for post-COVID-19 regional recovery processes and successful structural change. Statutory requirements should create a framework for innovations in climate-friendly mobility and energy generation. Those alliances should receive adequate support and funding should also be part of the future foreign and neighbourhood policy as well as of trade agreements.

Amendment 25

Proposal for a regulation

Recital 10

Text proposed by the Commission Amendment (10) The Union is a global leader in the transition towards climate neutrality, and is determined to help raise global ambition and to strengthen the global response to climate change, using all tools at its disposal, including climate diplomacy. (10) The Union has both the responsibility and the means to continue being a global leader in the transition towards climate neutrality, and is determined to achieve it in a just, socially fair and inclusive way as well as help raise global ambition and to strengthen the global response to climate change, using all tools at its disposal, including climate diplomacy, trade, investment and industrial policies . The Union should reinforce its environmental diplomacy in all international fora relevant for reaching international climate goals, in line with the Paris Agreement.

Amendment 26

Proposal for a regulation

Recital 11

Text proposed by the Commission Amendment (11) The European Parliament called for the necessary transition to a climate-neutral society by 2050 at the latest and for this to be made into a European success story (33) and has declared a climate and environment emergency (34). The European Council, in its Conclusions of 12 December 2019 (35), has agreed on the objective of achieving a climate-neutral Union by 2050, in line with the objectives of the Paris Agreement, while also recognising that it is necessary to put in place an enabling framework and that the transition will require significant public and private investment. The European Council also invited the Commission to prepare a proposal for the Union’s long-term strategy as early as possible in 2020 with a view to its adoption by the Council and its submission to the United Nations Framework Convention on Climate Change. (11) The European Parliament called on the Commission and Member States to increase climate action to facilitate the necessary transition to a climate-neutral society as soon as possible and by 2050 at the latest and for this to be made into a European success story (33) and has declared a climate and environment emergency (34). It also repeatedly called on the Union to increase its 2030 climate target, and for that increased target to be part of the European Climate Law (34a). The European Council, in its Conclusions of 12 December 2019 (35), has agreed on the objective of achieving a climate-neutral Union by 2050, in line with the objectives of the Paris Agreement, whilst being based on fairness, a just transition, and taking into consideration the different starting points of Member States, as well as recognising that it is necessary to put in place an enabling framework and that the transition will require significant public and private investment. The European Council also invited the Commission to prepare a proposal for the Union’s long-term strategy as early as possible in 2020 with a view to its adoption by the Council and its submission to the United Nations Framework Convention on Climate Change.

Amendment 27

Proposal for a regulation

Recital 12

Text proposed by the Commission Amendment (12) The Union should aim to achieve a balance between anthropogenic economy-wide emissions and removals, through natural and technological solutions, of greenhouse gases domestically within the Union by 2050. The Union-wide 2050 climate-neutrality objective should be pursued by all Member States collectively, and the Member States, the European Parliament, the Council and the Commission should take the necessary measures to enable its achievement. Measures at Union level will constitute an important part of the measures needed to achieve the objective. (12) The Union and Member States should aim to achieve a balance between anthropogenic economy-wide emissions and removals, through natural and technological solutions, of greenhouse gases domestically within the Union and at Member State level by 2050 at the latest . The Union-wide 2050 climate-neutrality objective should be achieved by all Member States, and the Member States, the European Parliament, the Council and the Commission should take the necessary measures to enable its achievement. Measures at Union level will constitute an important part of the measures needed to achieve the objective. After 2050, the Union and all Member States should continue to reduce emissions to ensure that removals of greenhouse gases exceed anthropogenic emissions.

Amendment 28

Proposal for a regulation

Recital 12 a (new)

Text proposed by the Commission Amendment (12a) Each Member State has the responsibility to individually achieve climate neutrality by 2050 at the latest. As a matter of justice and solidarity, and in order to assist the energy transformation of Member States with different starting points, sufficient Union support mechanisms and funding such as the Just Transition Fund provided for in Regulation (EU) …/… of the European Parliament and of the Council (1a) and other relevant funding mechanisms are needed.

Amendment 29

Proposal for a regulation

Recital 12 b (new)

Text proposed by the Commission Amendment (12b) The preamble to the Paris Agreement recognises the importance of ensuring the integrity of all ecosystems, including oceans. The United Nations Framework Convention on Climate Change stresses that the Parties thereto shall promote sustainable management, and the conservation and enhancement of sinks and reservoirs of all greenhouse gases, including biomass, forests and oceans as well as other terrestrial, coastal and marine ecosystems. If the Paris agreement goals were to fail, the temperature could exceed the tipping point beyond which the ocean will no longer be able to absorb as much carbon and participate in climate mitigation.

Amendment 30

Proposal for a regulation

Recital 12 c (new)

Text proposed by the Commission Amendment (12c) Natural carbon sinks play an important role in the transition to a climate-neutral society. The Commission is exploring the development of a regulatory framework for the certification of carbon removals in accordance with its Circular Economy Action Plan and the Farm to Fork Strategy. The EU Biodiversity Strategy for 2030 and initiatives therein will play an important role in restoring degraded ecosystems, in particular those with the most potential to capture and store carbon and to prevent and reduce the impact of natural disasters. The restoration of ecosystems would assist in maintaining, managing and enhancing natural sinks and promote biodiversity while fighting climate change.

Amendment 144

Proposal for a regulation

Recital 12 d (new)

Text proposed by the Commission Amendment (12d) The Commission should explore the feasibility of introducing carbon-crediting schemes, including the certification of greenhouse gas removals through carbon sequestration in land use, soil and biomass in agriculture with a view to achieving the Union's climate neutrality target, as well as the feasibility of developing of a separate carbon removals market for land-based greenhouse gas sequestration. Such a framework should be based on best available science and on a system of assessment and approval by the Commission, while ensuring no negative impacts on the environment, in particular biodiversity, on public health or on social or economic objectives. The Commission should present the results of this assessment by 30 June 2021.

Amendment 31

Proposal for a regulation

Recital 12 e (new)

Text proposed by the Commission Amendment (12e) In order to provide more clarity, a definition of natural and other carbon sinks should be presented by the Commission.

Amendment 156

Proposal for a regulation

Recital 12 f (new)

Text proposed by the Commission Amendment (12f) In its transition to climate neutrality, the Union should preserve the competitiveness of its industry, particularly its energy intensive industry, including by developing effective measures to tackle carbon leakage in a way compatible with WTO rules and to level the playing field between the Union and third countries to avoid unfair competition due to the non-implementation of climate policies consistent with the Paris Agreement.

Amendment 33

Proposal for a regulation

Recital 13

Text proposed by the Commission Amendment (13) The Union should continue its climate action and international climate leadership after 2050, in order to protect people and the planet against the threat of dangerous climate change, in pursuit of the temperature goals set out in the Paris Agreement and following the scientific recommendations of the IPCC. (13) The Union should continue its climate action and international climate leadership after 2050 , in particular by helping the most vulnerable populations, through its external action and development policy , in order to protect people and the planet against the threat of dangerous climate change, in pursuit of the temperature goals set out in the Paris Agreement and following the scientific recommendations of the IPCC, the United Nations Environment Programme (UNEP), IPBES and the European Climate Change Council (ECCC) .

Amendment 34

Proposal for a regulation

Recital 13 a (new)

Text proposed by the Commission Amendment (13a) Ecosystems, people and economies in the Union will face major impacts from climate change if greenhouse gas emissions are not urgently mitigated or there is no adaptation to climate change. Adaptation to climate change would further minimise unavoidable impacts in a cost-effective manner, with considerable co-benefits from the use of nature-based solutions.

Amendment 35

Proposal for a regulation

Recital 13 b (new)

Text proposed by the Commission Amendment (13b) The adverse effects of climate change can potentially exceed the adaptive capacities of Member States. Therefore, Member States and the Union should work together to avert, minimise and address loss and damage, as provided for in Article 8 of the Paris Agreement, including through the Warsaw International Mechanism.

Amendment 36

Proposal for a regulation

Recital 14

Text proposed by the Commission Amendment (14) Adaptation is a key component of the long-term global response to climate change. Therefore, Member States and the Union should enhance their adaptive capacity, strengthen resilience and reduce vulnerability to climate change, as provided for in Article 7 of the Paris Agreement, as well as maximise the co-benefits with other environmental policies and legislation. Member States should adopt comprehensive national adaptation strategies and plans. (14) Adaptation is a key component of the long-term global response to climate change. Therefore, Member States and the Union should enhance their adaptive capacity, strengthen resilience and reduce vulnerability to climate change, as provided for in Article 7 of the Paris Agreement, as well as maximise the co-benefits with other environmental policies and legislation. Member States should adopt comprehensive national adaptation strategies and plans and the Commission should help in the monitoring of progress on adaptation by developing indicators.

Amendment 37

Proposal for a regulation

Recital 14 a (new)

Text proposed by the Commission Amendment (14a) When adopting their adaptation strategies and plans, Member States should pay special attention to the most impacted areas. In addition, it is essential to promote, conserve and restore biodiversity in order to tap its full potential for climate regulation and adaptation. Adaptation strategies and plans should therefore encourage nature-based solutions and ecosystem-based adaptation that contributes to restoring and preserving biodiversity, and take due account of the territorial specificities and local knowledge, as well as establish concrete measures to protect marine and coastal ecosystems. Furthermore, activities hindering ecosystem ability to adapt to climate change should be removed to ensure the resilience of biodiversity and ecosystem services.

Amendment 38

Proposal for a regulation

Recital 14 b (new)

Text proposed by the Commission Amendment (14b) Adaptation strategies should also encourage a change of model in impacted areas, based on environmentally friendly and nature-based solutions. They should ensure sustainable livelihoods to ensure better living conditions, including sustainable and local agriculture, sustainable management of water, renewable energies, in line with the Sustainable Development Goals, in order to foster their resilience and the protection of their ecosystems.

Amendment 39

Proposal for a regulation

Recital 15

Text proposed by the Commission Amendment (15) In taking the relevant measures at Union and national level to achieve the climate-neutrality objective, Member States and the European Parliament, the Council and the Commission should take into account the contribution of the transition to climate neutrality to the well-being of citizens, the prosperity of society and the competitiveness of the economy; energy and food security and affordability; fairness and solidarity across and within Member States considering their economic capability, national circumstances and the need for convergence over time; the need to make the transition just and socially fair; best available scientific evidence, in particular the findings reported by the IPCC; the need to integrate climate change related risks into investment and planning decisions; cost-effectiveness and technological neutrality in achieving greenhouse gas emissions reductions and removals and increasing resilience; progression over time in environmental integrity and level of ambition. (15) In taking the relevant measures at Union and national level to achieve the climate-neutrality objective, Member States and the European Parliament, the Council and the Commission should take into account the contribution of the transition to climate neutrality to the health, quality of life and well-being of citizens, social fairness, the prosperity of society and the competitiveness of the economy , including fair competition and a level playing field on a global level. Member States and the European Parliament, the Council and the Commission should also take into account any red tape or other legislative barriers that possibly hinder economic actors or the sectors from fulfilling the climate goals; the social, economic and environmental costs of inaction or insufficient action; the fact that women are disproportionately impacted by climate change and the need to strengthen gender equality; the need to promote sustainable ways of living; maximising energy and resource efficiency, energy and food security and affordability whilst particularly taking into account the need to combat energy poverty ; fairness and solidarity and a level playing field across and within Member States considering their economic capability and national circumstances and different starting points, and the need for convergence over time; the need to make the transition just and socially fair in accordance with 2015 International Labour Organization's guidelines for a just transition towards environmentally sustainable economies and societies for all ; best available scientific evidence, in particular the findings reported by the IPCC and the IPBES ; the need to integrate climate-change-related risks and climate change vulnerability and adaptation assessments into investment and planning decisions while ensuring that Union policies are climate proof ; cost-effectiveness and technological neutrality in achieving greenhouse gas emissions reductions and removals and increasing resilience on the basis of equity ; the need to manage, preserve and restore marine and terrestrial ecosystems and biodiversity; the current infrastructure status and possible needs for updating of and investments in Union infrastructure; progression over time in environmental integrity and level of ambition ; the capacity of the various stakeholders to invest in the transition in a socially viable manner; and the potential risk of carbon leakage and measures to prevent it.

Amendment 40

Proposal for a regulation

Recital 16

Text proposed by the Commission Amendment (16) The transition to climate neutrality requires changes across the entire policy spectrum and a collective effort of all sectors of the economy and society, as illustrated by the Commission in its Communication ‘The European Green Deal’. The European Council, in its Conclusions of 12 December 2019, stated that all relevant Union legislation and policies need to be consistent with, and contribute to, the fulfilment of the climate-neutrality objective while respecting a level playing field, and invited the Commission to examine whether this requires an adjustment of the existing rules. (16) The transition to climate neutrality requires a transformative change across the entire policy spectrum, ambitious and sustained financing and a collective effort of all sectors of the economy and society, including aviation and maritime transport , as illustrated by the Commission in its Communication ‘The European Green Deal’. The European Council, in its Conclusions of 12 December 2019, stated that all relevant Union legislation and policies need to be consistent with, and contribute to, the fulfilment of the climate-neutrality objective while respecting a level playing field, and invited the Commission to examine whether this requires an adjustment of the existing rules.

Amendment 41

Proposal for a regulation

Recital 16 a (new)

Text proposed by the Commission Amendment (16a) All key sectors of the economy will have to work together to deliver on climate neutrality, namely energy, industry, transport, the heating and cooling and building sector, agriculture, waste and land use, land-use change and forestry. All sectors, whether or not covered by the system for greenhouse gas emission allowance trading within the Union (EU ETS) should undertake comparable efforts to deliver on the Union’s climate-neutrality objective. In order to provide predictability, confidence and involvement of all economic actors, including businesses, workers, investors and consumers, the Commission should establish guidance for the sectors of the economy that could contribute most to achieve the climate-neutrality objective. The guidance should contain indicative trajectories for greenhouse gases reduction in those sectors at Union level. That would provide them with the certainty to take the appropriate measures, to plan the necessary investments and therefore would assist in staying on the path of the transition. At the same time, it would also serve as a mechanism of sectors’ engagement into the pursuit of climate-neutrality solutions.

Amendment 42

Proposal for a regulation

Recital 16 b (new)

Text proposed by the Commission Amendment (16b) The transition to climate neutrality requires all sectors to do their part. The Union should continue its efforts to strengthen and promote the circular economy and further support renewable solutions and alternatives that can substitute fossil-fuel based products and materials. Further use of renewable products and material will have a large climate mitigation benefit and benefits many different sectors.

Amendment 43

Proposal for a regulation

Recital 16 c (new)

Text proposed by the Commission Amendment (16c) Taking into account the risk of carbon leakage, the transition to and the continued work to maintain climate neutrality should be a true, green transition, lead to an actual decrease in emissions, and not create a false Union-based result, given that production and emissions have relocated outside the Union. To achieve that, Union policies should be designed to minimise the risk of carbon leakage and explore technological solutions.

Amendment 44

Proposal for a regulation

Recital 16 d (new)

Text proposed by the Commission Amendment (16d) The transition towards climate neutrality must not exclude the agricultural sector, the only productive sector capable of storing carbon dioxide. Long-term storage is guaranteed in particular by forestry, long-duration pastures and multiannual crops in general.

Amendment 45

Proposal for a regulation

Recital 16 e (new)

Text proposed by the Commission Amendment (16e) In order to achieve climate neutrality, the special role of agriculture and forestry has to be taken into account, as only a vital and productive agriculture and forestry is able to supply the population with high-quality and safe food in sufficient quantities and at affordable prices, as well as with renewable raw materials for all purposes of the bio-economy.

Amendment 46

Proposal for a regulation

Recital 16 f (new)

Text proposed by the Commission Amendment (16f) Forests play a crucial role in the transition to climate neutrality. Sustainable and close-to-nature forest management is crucial for continuous greenhouse gas absorption from the atmosphere and also allows to provide renewable and climate-friendly raw materials for wood products, which store carbon and can act as a substitute to fossil-based materials and fuels. The ‘triple role’ of forests (sink, storage and substitution) contributes to the reduction of carbon emissions release to the atmosphere, while ensuring that forests continue to grow and provide many other services.

Amendment 47

Proposal for a regulation

Recital 16 g (new)

Text proposed by the Commission Amendment (16 g) Union law should promote afforestation and sustainable forest management in Member States that do not have significant forest resources, by means of sharing best practice and industrial know-how.

Amendment 48

Proposal for a regulation

Recital 17

Text proposed by the Commission Amendment (17) As announced in its Communication ‘The European Green Deal’, the Commission assessed the Union’s 2030 target for greenhouse gas emission reduction, in its Communication ‘Stepping up Europe’s 2030 climate ambition — Investing in a climate-neutral future for the benefit of our people’ (9) , on the basis of a comprehensive impact assessment and taking into account its analysis of the integrated national energy and climate plans submitted to the Commission in accordance with Regulation (EU) 2018/1999 of the European Parliament and of the Council (10) . In light of the 2050 climate-neutrality objective, by 2030 greenhouse gas emissions should be reduced and removals enhanced, so that net greenhouse gas emissions, that is emissions after deduction of removals, are reduced economy-wide and domestically by at least 55 % by 2030 compared to 1990 levels. This new 2030 Union climate target is a subsequent target for the purposes of point (11) of Article 2 of Regulation (EU) 2018/1999, and therefore replaces the 2030 Union-wide target for greenhouse gas emissions set out in that point. In addition , the Commission should, by 30 June 2021, assess how the relevant Union legislation implementing the 2030 climate target would need to be amended in order to achieve such net emission reductions . (17) The Commission, in its Communication ‘The European Green Deal’, announced its intention to assess and make proposals for increasing the Union’s greenhouse gas emission reduction target for 2030 to ensure its consistency with the climate-neutrality objective for 2050. In that Communication, the Commission underlined that all Union policies should contribute to the climate-neutrality objective and that all sectors should play their part. Given the Union goal of reaching climate neutrality by 2050 at the latest, it is essential that climate action is further strengthened and particularly that the Union 2030 climate target is raised to a reduction in emissions of 60 % compared with 1990 levels. Consequently , the Commission should, by 30 June 2021, assess how the Union legislation implementing that higher target and other relevant Union legislation contributing to reducing greenhouse gas emissions and promoting the circular economy would need to be amended accordingly.

Amendment 49

Proposal for a regulation

Recital 17 a (new)

Text proposed by the Commission Amendment (17a) To ensure that the Union and all Member States remain on track to reach the climate-neutrality objective, and to ensure the predictability and confidence for all economic actors, including businesses, workers and trade unions, investors and consumers, the Commission should explore options for setting a Union 2040 climate target and make legislative proposals to the European Parliament and the Council where appropriate.

Amendment 50

Proposal for a regulation

Recital 17 b (new)

Text proposed by the Commission Amendment (17b) By 30 June 2021, the Commission should review and propose to revise where necessary all policy and instruments relevant to the achievement of the Union's 2030 climate target and to achieve the climate neutrality objective set out in Article 2(1). In that regard, the Union’s increased targets require the EU ETS to be fit for purpose. The Commission should therefore rapidly review Directive 2003/87/EC of the European Parliament and of the Council (1a) and strengthen the Innovation Fund thereunder to further create financial incentives for new technology, boosting growth, competitiveness, support for clean technologies, while ensuring that the strengthening of the Innovation Fund contributes to the process of a Just Transition.

Amendment 51

Proposal for a regulation

Recital 17 c (new)

Text proposed by the Commission Amendment (17c) To signal the importance and weight of climate policy and to give political actors the necessary information in the legislative process, the Commission should assess all future legislation through a new lens, in which climate and the consequences on climate are included, and determine the effect any proposed legislation will have on the climate and environment at the same level that it assesses legal basis, subsidiarity and proportionality.

Amendment 52

Proposal for a regulation

Recital 17 d (new)

Text proposed by the Commission Amendment (17d) The Commission should further make sure that the industry is sufficiently enabled to undergo the significant transition towards climate neutrality and the highly ambitious targets for 2030 and 2040 through a thorough regulatory framework and financial resources commensurate with the challenges. That regulatory and financial framework should be regularly assessed, and adapted if needed, to prevent carbon leakage, industrial closures, job losses and unfair international competition.

Amendment 53

Proposal for a regulation

Recital 17 e (new)

Text proposed by the Commission Amendment (17e) The Commission should assess employment needs, including education and training requirements, the development of the economy and the establishment of a fair and just transition.

Amendment 157

Proposal for a regulation

Recital 17 f (new)

Text proposed by the Commission Amendment (17f) In order for the Union to reach the climate-neutrality objective by 2050 at the latest and the intermediate climate targets for 2030 and 2040, the Union institutions and all Member States should, as early as possible and by 2025 at the latest, have phased out all direct and indirect fossil subsidies. The phasing out of those subsidies should not impact on efforts to combat energy poverty and should take into account the bridging role of natural gas in the transition to a carbon-neutral economy.

Amendment 55

Proposal for a regulation

Recital 18

Text proposed by the Commission Amendment (18) To ensure the Union and the Member States remain on track to achieve the climate-neutrality objective and progress on adaptation, the Commission should regularly assess progress. Should the collective progress made by Member States towards the achievement of the climate-neutrality objective or on adaptation be insufficient or Union measures inconsistent with the climate-neutrality objective or inadequate to enhance adaptive capacity, strengthen resilience or reduce vulnerability, the Commission should take the necessary measures in accordance with the Treaties. The Commission should also regularly assess relevant national measures, and issue recommendations where it finds that a Member State’s measures are inconsistent with the climate-neutrality objective or inadequate to enhance adaptive capacity, strengthen resilience and reduce vulnerability to climate change. (18) To ensure the Union and all Member States remain on track to achieve the Union climate objectives and progress on adaptation, the Commission should regularly assess progress. Should the progress made by each Member State and the collective progress made by Member States towards the achievement of the Union climate objectives or on adaptation be insufficient or any Union measures inconsistent with the Union climate objectives or inadequate to enhance adaptive capacity, strengthen resilience or reduce vulnerability, the Commission should take the necessary measures in accordance with the Treaties. The Commission should also regularly assess relevant national measures, and issue recommendations where it finds that a Member State’s measures are inconsistent with the Union climate objectives or inadequate to enhance adaptive capacity, strengthen resilience and reduce vulnerability to climate change. The Commission should make public that assessment and its results at the time of its adoption.

Amendment 56

Proposal for a regulation

Recital 18 a (new)

Text proposed by the Commission Amendment (18a) Reaching climate neutrality is only possible if all Member States share the burden and commit fully to transitioning to climate neutrality. Each Member State has an obligation to meet the interim and end targets and if the Commission considers that these obligations have not been met, the Commission should be empowered to take measures against Member States. The measures should be proportionate, appropriate and in accordance with the Treaties.

Amendment 57

Proposal for a regulation

Recital 18 b (new)

Text proposed by the Commission Amendment (18b) Scientific expertise and the best available, up-to-date evidence, together with information on climate change that is both factual and transparent is imperative and needs to underpin the Union's climate action and efforts to reach climate neutrality by 2050 at the latest. National independent climate advisory bodies play an important role in informing the public and contributing to the policy debate around climate change in those Member States where they exist. Therefore, Member States that have not already done so, are encouraged to establish a national climate advisory body, consisting of scientists selected on the basis of their expertise in the climate change field and other disciplines relevant for the achievement of the objectives of this Regulation. In cooperation with these national climate advisory bodies, the Commission should set up an independent scientific advisory panel on climate change, the European Climate Change Council (ECCC), which should complement the work of the European Environment Agency (EEA), and the Union's existing research institutions and agencies. Its missions should avoid any overlapping with the mission of the IPCC at international level. The ECCC should be composed of a scientific committee, consisting of selected senior experts, and supported by a management board that meets twice a year. The purpose of the ECCC is to provide Union institutions annually with assessments of the consistency of the Union measures to reduce greenhouse gas emissions with the Union’s climate objectives and its international climate commitments. The ECCC should also assess actions and pathways to reduce greenhouse gas emissions and to identify carbon sequestration potential.

Amendment 58

Proposal for a regulation

Recital 19

Text proposed by the Commission Amendment (19) The Commission should ensure a robust and objective assessment based on the most up to date scientific, technical and socio-economic findings, and representative of a broad range of independent expertise, and base its assessment on relevant information including information submitted and reported by Member States, reports of the European Environment Agency, best available scientific evidence, including the reports of the IPCC. Given that the Commission has committed to exploring how the EU taxonomy can be used in the context of the European Green Deal by the public sector, this should include information on environmentally sustainable investment, by the Union and Member States, consistent with Regulation (EU) 2020/… [Taxonomy Regulation] when such information becomes available. The Commission should use European statistics and data where available and seek expert scrutiny. The European Environment Agency should assist the Commission, as appropriate and in accordance with its annual work programme. (19) The Commission should ensure a robust and objective assessment based on the most up to date scientific, technical and socio-economic findings, and representative of a broad range of independent expertise, and base its assessment on relevant information including information submitted and reported by Member States, reports of the European Environment Agency, best available scientific evidence, including the reports of the IPCC , UNEP, IPBES, ECCC and, where possible, Member States national independent climate advisory bodies . Given that the Commission has committed to exploring how the EU taxonomy can be used in the context of the European Green Deal by the public sector, this should include information on environmentally sustainable investment, by the Union and Member States, consistent with Regulation (EU) 2020/… [Taxonomy Regulation] when such information becomes available. The Commission should use European statistics and data where available and seek expert scrutiny. The European Environment Agency should assist the Commission, as appropriate and in accordance with its annual work programme.

Amendment 59

Proposal for a regulation

Recital 20

Text proposed by the Commission Amendment (20) As citizens and communities have a powerful role to play in driving the transformation towards climate neutrality forward, strong public and social engagement on climate action should be facilitated. The Commission should therefore engage with all parts of society to enable and empower them to take action towards a climate-neutral and climate-resilient society, including through launching a European Climate Pact. (20) As citizens, communities and regions have a powerful role to play in driving the transformation towards climate neutrality forward, strong public and social engagement on climate action should be both encouraged and facilitated at local, regional and national level . The Commission and Member States should therefore engage with all parts of society in a fully transparent manner to enable and empower them to take action towards a socially just, gender-balanced , climate-neutral and climate-resilient society, including through launching a European Climate Pact.

Amendment 60

Proposal for a regulation

Recital 21

Text proposed by the Commission Amendment (21) In order to provide predictability and confidence for all economic actors, including businesses, workers, investors and consumers, to ensure that the transition towards climate neutrality is irreversible, to ensure gradual reduction over time and to assist in the assessment of the consistency of measures and progress with the climate-neutrality objective, 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 to set out a trajectory for achieving net zero greenhouse gas emissions in the Union by 2050 . It is of particular importance that the Commission carries 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 of 13 April 2016 on Better Law-Making37 . 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 . (21) In order to provide predictability and confidence for all economic actors, including businesses, SMEs , workers and trade unions , investors and consumers, to ensure that the transition towards climate neutrality is irreversible, to ensure gradual reduction over time and to assist in the assessment of the consistency of measures and progress with the climate-neutrality objective, the Commission should assess the options for establishing a trajectory for achieving net zero greenhouse gas emissions in the Union by 2050 and should make legislative proposals to the European Parliament and to the Council if appropriate.

Amendment 61

Proposal for a regulation

Recital 22

Text proposed by the Commission Amendment (22) In line with the Commission’s commitment to the principles on Better Law-Making, coherence of the Union instruments as regards greenhouse gas emissions reductions should be sought. The system of measuring the progress towards the achievement of the climate-neutrality objective as well as the consistency of measures taken with that objective should build upon and be consistent with the governance framework laid down in Regulation (EU) 2018/1999. In particular, the system of reporting on a regular basis and the sequencing of the Commission’s assessment and actions on the basis of the reporting should be aligned to the requirements to submit information and provide reports by Member States laid down in Regulation (EU) 2018/1999. Regulation (EU) 2018/1999 should therefore be amended in order to include the climate-neutrality objective in the relevant provisions. (22) In line with the Commission’s commitment to the principles on Better Law-Making, coherence of the Union instruments as regards greenhouse gas emissions reductions should be sought. The system of measuring the progress towards the achievement of the Union climate objectives as well as the consistency of measures taken with that objective should build upon and be consistent with the governance framework laid down in Regulation (EU) 2018/1999. In particular, the system of reporting on a regular basis and the sequencing of the Commission’s assessment and actions on the basis of the reporting should be aligned to the requirements to submit information and provide reports by Member States laid down in Regulation (EU) 2018/1999. Regulation (EU) 2018/1999 should therefore be amended in order to include the climate-neutrality objective in the relevant provisions.

Amendment 62

Proposal for a regulation

Recital 23

Text proposed by the Commission Amendment (23) Climate change is by definition a trans-boundary challenge and a coordinated action at Union level is needed to effectively supplement and reinforce national policies. Since the objectives of this Regulation, namely to achieve climate neutrality in the Union by 2050, cannot be sufficiently achieved by the Member States alone, but can rather, by reason of the scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary to achieve those objectives, (23) Climate change is by definition a trans-boundary challenge and a coordinated action at Union level is needed to effectively supplement and reinforce national policies. Since the objectives of this Regulation, namely to achieve climate neutrality in the Union and in all Member States by 2050 at the latest , cannot be sufficiently achieved by the Member States alone, but can rather, by reason of the scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary to achieve those objectives.

Amendment 63

Proposal for a regulation

Recital 23 a (new)

Text proposed by the Commission Amendment (23a) The Union is currently responsible for 10 % of the world’s emission of greenhouse gases. The climate-neutrality objective is limited to emissions from Union production. A coherent climate policy also involves controlling emissions from consumption and energy and resource imports.

Amendment 64

Proposal for a regulation

Recital 23 b (new)

Text proposed by the Commission Amendment (23b) The climate footprint of the Union’s consumption is an essential tool to develop in order to improve the overall consistency of the Union’s climate objectives.

Amendment 65

Proposal for a regulation

Recital 23 c (new)

Text proposed by the Commission Amendment (23c) A Union climate policy that is fully efficient should address carbon leakage and develop the appropriate tools, such as a carbon border adjustment mechanism, to cope with it and protect Union standards and the frontrunners of Union industries.

Amendment 66

Proposal for a regulation

Recital 23 d (new)

Text proposed by the Commission Amendment (23d) Imports of agricultural products and foodstuffs from third countries have risen continuously in recent years. That trend dictates that an assessment should be made as to which products imported from third countries are to be subject to requirements comparable to those applicable to Union farmers where the origins of these requirements lie within the objectives of Union policies to reduce the impact of climate change. The Commission should submit a report and communication on that topic to the European Parliament and the Council by 30 June 2021.

Amendment 67

Proposal for a regulation

Recital 23 e (new)

Text proposed by the Commission Amendment (23e) In its Communication ‘The European Green Deal’, the Commission highlighted the need to accelerate the shift to sustainable and smart mobility as a priority policy towards climate neutrality. To ensure the transition towards sustainable and smart mobility, the Commission has indicated that it will adopt a comprehensive strategy on sustainable and smart mobility in 2020 with ambitious measures aimed at significantly reducing CO2 and pollutant emissions across all modes of transport, including by boosting the uptake of clean vehicles and alternative fuels for road, maritime and aviation, increasing the share of more sustainable transport modes such as rail and inland waterways, and improving efficiency across the whole transport system, incentivising more sustainable consumer choices and low-emission practices, and investing in low- and zero-emissions solutions, including infrastructure.

Amendment 68

Proposal for a regulation

Recital 23 f (new)

Text proposed by the Commission Amendment (23f) Transport infrastructure could play a key role in accelerating the transformation to sustainable and smart mobility by catering for a modal shift to more sustainable transport modes, in particular for freight transport. At the same time, climate-change events, such as rising water levels, extreme weather conditions, drought and rising temperatures, can result in infrastructure damages, operational disruptions, pressures on supply chain capacity and efficiency, and consequently have negative implication for European mobility. Therefore, the completion of the Trans European Transport Networks (TEN-T) core network by 2030 and the completion of the complementary TEN-T network by 2040 is of the utmost importance, while taking into account the obligations set out in Union law on addressing the greenhouse gas emissions of projects during their whole life cycle. Furthermore, the Commission should consider proposing a legislative framework to increase the risk-management, resilience and climate adaptation of transport infrastructure.

Amendment 69

Proposal for a regulation

Recital 23 g (new)

Text proposed by the Commission Amendment (23 g) The connectivity of the European railway network, in particular international connections, to make passenger transport by rail more attractive for medium- and long-distance travels and improvements to the capacity of railways and inland waterways for freight, should be at the core of the Union’s legislative action.

Amendment 70

Proposal for a regulation

Recital 23 h (new)

Text proposed by the Commission Amendment (23h) It is important to ensure that there are sufficient investments in developing appropriate infrastructure for zero-emission mobility, including intermodal platforms and reinforcing the role of the Connecting Europe Facility (CEF) in supporting the transition towards smart, sustainable and safe mobility in the Union.

Amendment 71

Proposal for a regulation

Recital 23 i (new)

Text proposed by the Commission Amendment (23i) In line with the Union's effort to shift road transport to rail in order to put the most CO2-efficient mode of transport in the lead while considering the upcoming European Year of rail in 2021, a particular legislative emphasis should be put on creating a true Single European Railway Area by removing all administrative burdens and protectionist national laws by 2024.

Amendment 72

Proposal for a regulation

Recital 23 j (new)

Text proposed by the Commission Amendment (23j) In order to the achieve the objective of climate neutrality by 2050, the Commission should also strengthen the specific legislation on CO2 emissions performance standards for cars, vans and trucks, provide specific measures to pave the way for the electrification of road transport, and take initiatives to ramp up the production and deployment of sustainable alternative fuels.

Amendment 73

Proposal for a regulation

Recital 23 k (new)

Text proposed by the Commission Amendment (23k) In its resolution of 28 November 2019 on the 2019 UN Climate Change Conference in Madrid, Spain (COP 25), the European Parliament noted that the current global targets and measures envisaged by the International Maritime Organisation and the International Civil Aviation Organisation, even if implemented in full, would fall short of the necessary emission reductions, and that significant further action at European and global level consistent with the economy-wide objective of net-zero greenhouse gas emissions is needed.

Amendment 158

Proposal for a regulation

Recital 23 l (new)

Text proposed by the Commission Amendment (23l) The Commission should intensify its efforts towards a well-functioning internal energy market as it is an important component of the energy transition and will help to make it financially viable. The development of smart and digital electricity and gas networks should therefore be given top priority in the multiannual financial framework MFF. COVID-19 recovery programmes should also support the development of transnational energy grids. Effective and swift decision-making procedures are needed to support transnational grid developments, notably in future-oriented and hydrogen-compatible gas infrastructure.

Amendment 74

Proposal for a regulation

Article 1

Text proposed by the Commission Amendment Article 1 Article 1 Subject matter and scope Subject matter and scope This Regulation establishes a framework for the irreversible and gradual reduction of greenhouse gas emissions and enhancement of removals by natural or other sinks in the Union. This Regulation establishes a framework for the irreversible, predictable and swift reduction of greenhouse gas emissions and enhancement of removals by natural or other sinks in the Union in line with the Union’s climate and environmental objectives . This Regulation sets out a binding objective of climate neutrality in the Union by 2050 in pursuit of the long-term temperature goal set out in Article 2 of the Paris Agreement, and provides a framework for achieving progress in pursuit of the global adaptation goal established in Article 7 of the Paris Agreement. It also sets out a binding Union net greenhouse gas emission reduction target for 2030. This Regulation sets out a binding objective of climate neutrality in the Union by 2050 at the latest in pursuit of the long-term temperature goal set out in Article 2 of the Paris Agreement, and provides a framework for achieving progress in pursuit of the global adaptation goal established in Article 7 of the Paris Agreement. This Regulation applies to anthropogenic emissions and removals by natural or other sinks of the greenhouse gases listed in Part 2 of Annex V to Regulation (EU) 2018/1999. This Regulation applies to anthropogenic emissions and removals by natural or other sinks of the greenhouse gases listed in Part 2 of Annex V to Regulation (EU) 2018/1999.

Amendments 75 and 159

Proposal for a regulation

Article 2

Text proposed by the Commission Amendment Article 2 Article 2 Climate-neutrality objective Climate-neutrality objective 1. Union-wide emissions and removals of greenhouse gases regulated in Union law shall be balanced at the latest by 2050, thus reducing emissions to net zero by that date. 1. Union-wide anthropogenic emissions by sources and removals by sinks of greenhouse gases regulated in Union law shall be balanced in the Union at the latest by 2050, thus achieving net zero greenhouse gas emissions by that date. Each Member State shall achieve net zero greenhouse gas emissions by 2050 at the latest. 2. The relevant Union institutions and the Member States shall take the necessary measures at Union and national level respectively, to enable the collective achievement of the climate-neutrality objective set out in paragraph 1, taking into account the importance of promoting fairness and solidarity among Member States. 2. The relevant Union institutions and the Member States shall take the necessary measures based on the best available, up-to-date science and provide support at Union and at national , regional and local level respectively, to enable the achievement of the climate-neutrality objective in the Union and in all Member States as set out in paragraph 1, taking into account the importance of promoting fairness and solidarity and a just transition among Member States , social and economic cohesion, the protection of vulnerable Union citizens and the importance of managing, restoring, protecting and enhancing marine and terrestrial biodiversity, ecosystems and carbon sinks . 2a. As from 1 January 2051, removals of greenhouse gases by sinks shall exceed anthropogenic emissions in the Union and all Member States. 2b. By 31 May 2023, the Commission shall, following a detailed impact assessment and taking into account the greenhouse gas budget referred to in Article 3(2a), explore options for setting a Union 2040 target for greenhouse gas emissions reductions compared to 1990, and shall present legislative proposals, where appropriate, to the European Parliament and to the Council. When exploring options for the 2040 target for climate, the Commission shall consult with the ECCC and take into account the criteria set out in Article 3(3). 2c. No later than 12 months after the adoption of the 2040 target for climate, the Commission shall assess how all of the Union legislation relevant for the fulfilment of that target would need to be amended and shall consider taking the necessary measures, including the adoption of legislative proposals, in accordance with the Treaties. 2d. By December 2020, the Commission shall prepare a plan setting out the measures to be taken at Union level in order to ensure that the appropriate resources are mobilised to enable the necessary investments to achieve a climate-neutral Union economy. The plan shall review current compensation mechanisms for lower income Member States, taking into account increased burden associated with elevated climate ambitions, support from Recovery and Resilience facility, InvestEU programmes and the Just Transition Fund.

Amendments 100, 148 and 150

Proposal for a regulation

Article 2 a

Text proposed by the Commission Amendment Article 2a Article 2a 2030 climate target 1. In order to reach the climate-neutrality objective set out in Article 2(1), the binding Union 2030 climate target shall be a reduction of net greenhouse gas emissions (emissions after deduction of removals) by at least 55 % compared to 1990 levels by 2030 . 2030 climate target 1. The Union’s 2030 target for climate shall be an emissions reduction of 60 % compared to 1990. 2. By 30 June 2021, the Commission shall review relevant Union legislation in order to enable the achievement of the target set out in paragraph 1 of this Article and the climate-neutrality objective set out in Article 2(1) and consider taking the necessary measures, including the adoption of legislative proposals, in accordance with the Treaties. 2. By 30 June 2021, the Commission shall assess how all of the Union legislation relevant for the fulfilment of the Union’s 2030 target for climate and other relevant Union legislation promoting the circular economy and contributing to reduce greenhouse gas emissions would need to be amended in order to enable the achievement of the emission reductions target referred to in paragraph 1 of this Article and to achieve the climate-neutrality-objective set out in Article 2(1), and take the necessary measures, including the adoption of legislative proposals, in accordance with the Treaties. The Commission shall in particular evaluate the options for aligning emissions from all sectors, including aviation and maritime transport, with the 2030 target for climate and the 2050 climate-neutrality objective in order to reduce these emissions to net zero by 2050 at the latest and shall present legislative proposals, where appropriate, to the European Parliament and to the Council. The Commission shall mobilise adequate resources for all investments necessary to reach the targets referred to in this paragraph. 2a. The Commission shall base its proposals referred to in paragraph 2 on a comprehensive impact assessment covering environmental, economic and social effects, reflecting the post-COVID-19 economic situation and paying special attention to the sectoral reduction and removal potentials, and the impact of Brexit on Union emissions. The Commission shall assess the cumulative impact of amending the Union legislation implementing the Union’s 2030 target, as set out in paragraph 1, on different industry sectors. 2b. When making its proposals referred to in paragraph 2 for the revision of relevant 2030 climate and energy legislation, the Commission shall ensure a cost-efficient and fair balance between the ETS and the effort sharing sector, and between national targets in the effort sharing sector, and shall in any case not simply assume an additional effort for each Member State that corresponds to 15 % more ambition. The Commission shall assess the impacts of the introduction of more European measures that could complement existing measures, such as market-based measures that include a strong solidarity mechanism.

Amendment 76

Proposal for a regulation

Article 2 b (new)

Text proposed by the Commission Amendment Article 2b Member State climate advisory bodies and European Climate Change Council 1. By 30 June 2021, all Member States shall notify the Commission of their national independent climate advisory body, responsible for, but not limited to, providing scientific expert advice on national climate policy. If no such body exists, Member States shall be encouraged to establish such a body. To support the scientific independence and autonomy of the national independent climate advisory body, Member States shall be encouraged to take appropriate measures enabling the body to operate in a fully transparent manner with its findings being made publicly available and notify these measures to the Commission. 2. By 30 June 2022, the Commission shall, in cooperation with these national climate advisory bodies, set up the European Climate Change Council (ECCC), as a permanent, independent, inter-disciplinary scientific advisory panel on climate change, which shall be guided by the latest scientific findings as expressed by the IPCC. The ECCC shall complement the work of the European Environment Agency (EEA), and the Union's existing research institutions and agencies. In order to avoid any duplication of work, the EEA shall serve as secretariat of the ECCC, while preserving the budgetary and administrative independence of the ECCC. 3. Members of the ECCC shall serve for a term of five years, renewable once. The ECCC shall be composed of a scientific committee of maximum of 15 senior experts ensuring a full range of expertise required for the activities listed in paragraph 4. The scientific committee shall be independently responsible for drawing up the scientific advice of the ECCC. 4. The activities of the scientific committee shall include: (a) assessing the consistency of existing and proposed Union trajectories, greenhouse gas budget and climate targets against the Union’s and international climate commitments; (b) assessing the likelihood of staying within the Union greenhouse gas budget and achieving climate neutrality under existing and planned measures; (c) assessing the consistency of Union measures to reduce greenhouse gas emissions with the objectives set out in Article 2; (d) identifying actions and opportunities to reduce greenhouse gas emissions and increase the carbon sequestration potential; and (e) identifying consequences of inaction or insufficient action. 5. In carrying out the activities referred to in paragraph 4, the ECCC shall ensure the proper consultation of the national independent climate advisory bodies. 6. A management board shall support the work of the scientific committee. The management board shall consist of one member from each national independent climate advisory body notified to the Commission as set out in paragraph 1, two representatives selected by the Commission, two representatives selected by the European Parliament, and the chair of the secretariat who shall be appointed by the EEA. The management board shall meet two times a year and is responsible for the set-up and monitoring of the activities of the ECCC. The European Parliament and the Council shall appoint the management board by common accord, on the basis of a proposal by the Commission. The chair of the management board is elected among its members. The responsibilities of the management board are: (a) adoption of the annual work programme on a proposal by the scientific committee, and ensuring its consistency with the mandate of the ECCC; (b) appointment of the members of the scientific committee, ensuring the composition of the scientific committee provides the range of expertise required for the activities of the work programme; (c) approval of the ECCC’s budget; and (d) coordination with national climate advisory bodies. 7. Members of the scientific committee shall be designated on a personal basis by the management board. The chair of the scientific committee is elected amongst its members. The scientific committee shall adopt by a two-thirds majority its rules for procedure which shall ensure its full scientific independence and autonomy. Candidates for membership of the scientific committee shall be identified through an open evaluation process. The professional experience of applicants for the scientific committee meeting the eligibility requirements set out in the call shall be subject to a comparative evaluation based on the following selection criteria: (a) scientific excellence; (b) experience in carrying out scientific assessments and/or providing scientific advice in the fields of expertise; (c) broad expertise in the field of climate and environment sciences or other scientific fields relevant for the achievement of the Union's climate objectives; (d) experience in peer reviewing scientific work; (e) professional experience in an inter-disciplinary environment in an international context. The composition of the scientific committee shall ensure a balance of gender, disciplinary and sectoral expertise as well as regional distribution. 8. The ECCC shall, on an annual basis, report its findings under paragraph 4 to the Commission, the European Parliament and the Council. Where necessary the ECCC shall make recommendations to the Commission to ensure the achievement of the objectives of this Regulation. The ECCC shall ensure that it follows a fully transparent process and that its reports are made available to the public. The Commission shall consider the reports and any recommendations and issue a formal response to the ECCC three months after their reception, at the latest. The response to these reports and recommendations shall be made available to the public.

Amendments 77, 123 and 145

Proposal for a regulation

Article 3

Text proposed by the Commission Amendment Article 3 Article 3 Trajectory for achieving climate neutrality Trajectory for achieving climate neutrality 1. The Commission is empowered to adopt delegated acts in accordance with Article 9 to supplement this Regulation by setting out a trajectory at Union level to achieve the climate-neutrality objective set out in Article 2(1) until 2050 . At the latest within six months after each global stocktake referred to in Article 14 of the Paris Agreement, the Commission shall review the trajectory. 1. By 31 May 2023, the Commission shall assess the options for establishing an indicative trajectory at Union level to achieve the objective set out in Article 2(1) starting from the Union 2030 target for climate referred to in Article 2a(1) and taking into account the intermediate binding 2040 target for climate referred to in Article 2(2b) and shall make, if appropriate, a legislative proposal to this effect . 1a. Once the trajectory referred to in paragraph 1 is established, the Commission shall review the trajectory no later than six months after each global stocktake referred to in Article 14 of the Paris Agreement , starting with the global stocktake in 2028 . The Commission shall make a legislative proposal to adjust the trajectory where it considers such an adjustment appropriate as a result of the review. 2. The trajectory shall start from the Union’s 2030 climate target set out in Article 2a(1). 2. When making legislative proposals for setting a trajectory in accordance with paragraph 1, the Commission shall take into account the Union greenhouse gas budget setting out the total remaining quantity of greenhouse gas emissions as CO2 equivalent that could be emitted until 2050 at the latest without putting at risk the Union’s commitments under the Paris Agreement.. 2a. The Commission shall set out the Union greenhouse gas budget in a report and shall submit this report to the Parliament and the Council by 31 December 2021. The Commission shall make that report and its underpinning methodology publicly available 3. When setting a trajectory in accordance with paragraph 1, the Commission shall consider the following: 3. When making legislative proposals for setting or adjusting the trajectory in accordance with paragraphs 1 and 1a respectively , the Commission shall take into account the following criteria : (-a) the best available and most recent scientific evidence, including the latest reports of the IPCC, IPBES, ECCC and, where possible, Member State independent climate advisory bodies; (-aa) the social, economic and environmental costs of inaction or insufficient action; (-ab) the need to ensure a just and socially fair transition for all; (a) cost-effectiveness and economic efficiency; (b) competiveness of the Union’s economy; (b) competitiveness of the Union’s economy , in particular SMEs and sectors most exposed to carbon leakage ; (ba) the carbon footprint of end products and consumption in the Union; (c) best available technology (c) best available, cost effective, safe and scalable technologies, respecting the concept of technological neutrality and avoiding possible lock in effects; (d) energy efficiency, energy affordability and security of supply; (d) energy efficiency and the energy efficiency first principle, energy affordability, reduction of energy poverty and security of supply; (da) the need to phase out fossil fuels and ensure their substitution by sustainably produced renewable energy, materials and products; (e) fairness and solidarity between and within Member States; (e) fairness and solidarity between and within Member States and regions ; (f) the need to ensure environmental effectiveness and progression over time; (f) the need to ensure environmental effectiveness and progression over time; (fa) the need to ensure environmental sustainability, including the need to tackle the biodiversity crisis while restoring degraded ecosystems and prevent irreversible damage to ecosystems to achieve the Union biodiversity targets ; (fb) ensuring stable, long lasting and climate effective natural sinks over time; (g) investment needs and opportunities. (g) investment needs and opportunities for innovation consistent with Regulation (EU) 2020/… [Taxonomy Regulation] while taking into account the risk of stranded assets . (h) the need to ensure a just and socially fair transition; (i) international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement and the ultimate objective of the United Nations Framework Convention on Climate Change; (j) the best available and most recent scientific evidence, including the latest reports of the IPCC. 3a. By … [1 year after the entry into force of this Regulation] the Commission shall issue, following an in-depth dialogue with all relevant stakeholders within a relevant sector, a sectorial decarbonisation roadmap towards climate neutrality by 2050 at the latest for the sector concerned.

Amendments 78 and 146

Proposal for a regulation

Article 4

Text proposed by the Commission Amendment Article 4 Article 4 Adaptation to climate change Adaptation to climate change -1a. By 31 January 2021 and every 5 years thereafter, the Commission shall adopt an updated EU Strategy on adaptation to climate change. The updated EU Strategy shall aim to ensure that adaptation policies are prioritised, integrated and implemented in a consistent way across Union policies, international commitments, trade agreements and international partnerships. 1. The relevant Union institutions and the Member States shall ensure continuous progress in enhancing adaptive capacity, strengthening resilience and reducing vulnerability to climate change in accordance with Article 7 of the Paris Agreement. 1. The relevant Union institutions and the Member States shall endeavour to meet national and Union objectives for climate adaptation as set out in the EU Strategy on adaptation to climate change, and shall ensure continuous progress in enhancing adaptive capacity, strengthening resilience and reducing vulnerability to climate change , including for both marine and terrestrial ecosystems, in accordance with Article 7 of the Paris Agreement , and integrate adaptation into relevant socioeconomic and environmental policies and actions . They shall focus, in particular, on the most vulnerable and impacted populations and economic sectors, identify shortcomings in this regard in consultation with civil society, and implement remedies . 2. Member States shall develop and implement adaptation strategies and plans that include comprehensive risk management frameworks, based on robust climate and vulnerability baselines and progress assessments. 2. By 31 December 2021 and every 5 years thereafter, Member States shall adopt and implement adaptation strategies and plans at national and regional level that include comprehensive local risk management frameworks , taking into account local needs and specificities , based on robust climate and vulnerability baselines and indicators, and progress assessments , guided by the best available and up-to-date scientific evidence. Those strategies and plans shall include measures in line with the national and Union objectives on climate adaptation. In particular, those strategies shall take into consideration vulnerable and impacted groups, communities and ecosystems , and shall include measures for the management, restoration and protection of marine and terrestrial ecosystems to enhance their resilience . In their strategies, Member States shall take into account the particular vulnerability of agriculture and food systems, food security, and promote nature-based solutions and ecosystem-based adaptation. 2a. The Commission shall ask beneficiaries of Union financial instruments, including projects supported by the European Investment Bank, to carry out a climate adaptation stress test for projects that are deemed particularly vulnerable to climate change impacts. By … [six months after entry into force of this Regulation] the Commission shall adopt delegated acts to supplement this Regulation which set out the detailed criteria for the stress test, including the list of the sectors, projects and regions concerned, and the turnover threshold of the beneficiaries, while ensuring no excessive administrative burden. The Commission shall provide guidance to beneficiaries, based on the EU Strategy on adaptation to climate change and on data from the European Environment Agency on how to align an investment project with climate adaptation requirements.

Amendment 161

Proposal for a regulation

Article 4 a (new)

Text proposed by the Commission Amendment Article 4a Consistency of finance flows with a pathway towards a climate-neutral and resilient society 1. The relevant Union institutions and Member States shall ensure continuous progress on making public and private finance flows consistent with a pathway towards a climate-neutral and resilient society in accordance with point c of Article 2(1) of the Paris Agreement, taking account of the Union climate objectives set out in Article 2 of this Regulation. 2. By 1 June 2021 and in regular intervals thereafter the Commission shall, as part of the assessments referred to in Article 5, present a report to the European Parliament and the Council assessing how all relevant Union legislation, including the multiannual financial frameworks of the Union and all specific regulations relating to funds and instruments under the Union budget, would need to be amended, to include binding and enforceable provisions, to ensure the consistency of public and private finance flows with the Union climate objectives set out in Article 2 of this Regulation. That assessment shall be accompanied by legislative proposals, where appropriate. 3. The Commission shall disclose annually which part of the Union’s expenditure complies with the taxonomy categories as set out in Regulation (EU) 2020/… [Taxonomy Regulation]. 4. In light of reaching the Union climate objectives set out in Article 2, the Union institutions and all Member States shall phase out all direct and indirect fossil fuel subsidies, and mobilise sustainable investment accordingly. The phasing out of these subsidies shall not impact on efforts to combat energy poverty .

Amendment 80

Proposal for a regulation

Article 5

Text proposed by the Commission Amendment Article 5 Article 5 Assessment of Union progress and measures Assessment of Union progress and measures 1. By 30 September 2023, and every 5 years thereafter, the Commission shall assess, together with the assessment foreseen under Article 29(5) of Regulation (EU) 2018/1999: 1. By 30 September 2023, and every 2 years thereafter, the Commission shall assess, together with the assessment foreseen under Article 29(5) of Regulation (EU) 2018/1999: (a) the collective progress made by all Member States towards the achievement of the climate-neutrality objective set out in Article 2(1) as expressed by the trajectory referred to in Article 3(1); (a) the progress made by each Member State and the collective progress made by all Member States towards the achievement of the Union climate objectives set out in Article 2 as expressed by the trajectory to be established as referred to in Article 3(1) ; where the trajectory is not available, the assessment shall be made on the basis of the criteria set out in Article 3(3) and the 2030 climate target; (b) the collective progress made by all Member States on adaptation as referred to in Article 4. (b) the progress made by each Member State and the collective progress made by all Member States on adaptation as referred to in Article 4. The Commission shall submit the conclusions of that assessment , together with the State of the Energy Union Report prepared in the respective calendar year in accordance with Article 35 of Regulation (EU) 2018/1999, to the European Parliament and to the Council. The Commission shall submit those assessments and their conclusions, together with the State of the Energy Union Report prepared in the respective calendar year in accordance with Article 35 of Regulation (EU) 2018/1999, to the European Parliament and to the Council, and shall make them publicly available. 2. By 30 September 2023, and every 5 years thereafter, the Commission shall review: 2. By 30 September 2023, and every 2 years thereafter, the Commission shall review: (a) the consistency of Union measures with the climate-neutrality objective set out in Article 2(1) as expressed by the trajectory referred to in Article 3(1); (a) the consistency of Union measures and policies, including sectoral legislation, the Union's external action and the Union's budget, with the Union climate objectives set out in Article 2 as expressed by the trajectory to be established as referred to in Article 3(1) ; where the trajectory is not available, the assessment shall be made on the basis of the criteria set out in Article 3(3) and the 2030 climate target ; (b) the adequacy of Union measures to ensure progress on adaptation as referred to in Article 4. (b) the adequacy of Union measures and policies, including sectoral legislation, the Union's external action and the Union's budget, to ensure progress on adaptation as referred to in Article 4. 3. Where, based on the assessment referred to in paragraphs 1 and 2, the Commission finds that Union measures are inconsistent with the climate-neutrality objective set out in Article 2(1) or inadequate to ensure progress on adaptation as referred to in Article 4, or that the progress towards either the climate-neutrality objective or on adaptation as referred to in Article 4 is insufficient, it shall take the necessary measures in accordance with the Treaties, at the same time as the review of the trajectory referred to in Article 3( 1 ). 3. Where, based on the assessment referred to in paragraphs 1 and 2, the Commission finds that Union measures and policies are inconsistent with the Union climate objectives set out in Article 2 or inadequate to ensure progress on adaptation as referred to in Article 4, or that the progress towards either the Union climate objectives set out in Article 2 or on adaptation as referred to in Article 4 is insufficient, it shall as soon as possible take the necessary measures in accordance with the Treaties for remedying this inconsistency, or at the latest at the same time as the review of the trajectory referred to in Article 3( 1a ). 4. The Commission shall assess any draft measure or legislative proposal in light of the climate-neutrality objective set out in Article 2(1) as expressed by the trajectory referred to in Article 3(1) before adoption, and include this analysis in any impact assessment accompanying these measures or proposals, and make the result of that assessment public at the time of adoption. 4. The Commission shall assess the consiste