P9_TA(2022)0248

Carbon border adjustment mechanism ***I

Amendments adopted by the European Parliament on 22 June 2022 on the proposal for a regulation of the European Parliament and of the Council establishing a carbon border adjustment mechanism (COM(2021)0564 — C9-0328/2021 — 2021/0214(COD)) (1)

(Ordinary legislative procedure: first reading)

(2023/C 32/13)

Amendment 1

Proposal for a regulation

Recital 1

Text proposed by the Commission Amendment (1) The Commission has, in its communication on the European Green Deal (31), 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 (emissions after deduction of removals) of greenhouse gases (‘GHG emissions’) in 2050 and where economic growth is decoupled from resource use. The European Green Deal also aims to protect, conserve and enhance the EU’s natural capital, and protect the health and well-being of citizens from environment-related risks and impacts. At the same time, that transformation must be just and inclusive, leaving no one behind. The Commission also announced in its EU Action Plan: Towards Zero Pollution for Air, Water and Soil (32) the promotion of relevant instruments and incentives to better implement the polluter pays principle as set out in Article 191(2) of the Treaty on the Functioning of the European Union (‘TFEU’) and thus complete the phasing out of ‘pollution for free’ with a view to maximising synergies between decarbonisation and the zero pollution ambition. (1) The Commission has, in its communication on the European Green Deal (31), 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 (emissions after deduction of removals) of greenhouse gases (‘GHG emissions’) in 2050 at the latest and where economic growth is decoupled from resource use. The European Green Deal also aims to protect, conserve and enhance the EU’s natural capital, and protect the health and well-being of citizens from environment-related risks and impacts. At the same time, that transformation must be just and inclusive, leaving no one behind. The Commission also announced in its EU Action Plan: Towards Zero Pollution for Air, Water and Soil (32) the promotion of relevant instruments and incentives to better implement the polluter pays principle as set out in Article 191(2) of the Treaty on the Functioning of the European Union (‘TFEU’) and thus complete the phasing out of ‘pollution for free’ with a view to maximising synergies between decarbonisation and the zero pollution ambition.

Amendment 2

Proposal for a regulation

Recital 2

Text proposed by the Commission Amendment (2) The Paris Agreement (33), adopted in December 2015 under the United Nations Framework Convention on Climate Change (‘UNFCCC’) entered into force in November 2016. The Parties to the Paris Agreement, in its Article 2, have agreed to hold the increase in the global average temperature well below 2 oC above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 oC above pre-industrial levels. (2) The Paris Agreement (33), adopted in December 2015 under the United Nations Framework Convention on Climate Change (‘UNFCCC’), entered into force in November 2016. The Parties to the Paris Agreement, in its Article 2, have agreed to hold the increase in the global average temperature well below 2 oC above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 oC above pre-industrial levels. Under the Glasgow Climate Pact, adopted on 13 November 2021, the Parties also recognised that limiting the increase in the global average temperature 1,5 oC above pre-industrial levels would significantly reduce the risks and impacts of climate change, and committed to strengthen the 2030 targets by the end of 2022 to close the ambition gap.

Amendment 3

Proposal for a regulation

Recital 5

Text proposed by the Commission Amendment (5) Regulation (EU) 2021/1119 of the European Parliament and of the Council (35) has enshrined in legislation the target of economy-wide climate neutrality by 2050. That Regulation also establishes a binding Union reduction commitment of GHG emissions of at least 55 per cent below 1990 levels by 2030. (5) Regulation (EU) 2021/1119 of the European Parliament and of the Council (35) has enshrined in legislation the target of economy-wide climate neutrality by 2050 at the latest . That Regulation also establishes a binding Union reduction commitment of GHG emissions of at least 55 per cent below 1990 levels by 2030.

Amendment 4

Proposal for a regulation

Recital 6

Text proposed by the Commission Amendment (6) The Special Report of the Intergovernmental Panel on Climate Change (IPCC) on the impacts of global temperature increases of 1,5 oC above pre-industrial levels and related global GHG emission pathways (36) provides a strong scientific basis for tackling climate change and illustrates the need to step up climate action. That report confirms that in order to reduce the likelihood of extreme weather events, GHG emissions need to be urgently reduced , and that climate change needs to be limited to a global temperature increase of 1,5 oC. (6) The Special Report of the Intergovernmental Panel on Climate Change (IPCC) on the impacts of global temperature increases of 1,5 oC above pre-industrial levels and related global GHG emission pathways (36) provides a strong scientific basis for tackling climate change and illustrates the need to step up climate action. That report confirms that the negative impacts of climate change and the need for adaptation measures will be significantly higher if the increase in global average temperature is above 1,5 oC, and that in order to reduce the likelihood of extreme weather events, GHG emissions need to be urgently reduced.

Amendment 5

Proposal for a regulation

Recital 7 a (new)

Text proposed by the Commission Amendment (7a) Around 27 % of global CO2 emissions from fuel combustion currently relate to internationally traded goods and, while the Union has substantially reduced its domestic GHG emissions, the GHG emissions embedded in imports to the Union have been constantly increasing, thereby undermining the Union’s efforts to reduce its global GHG footprint. The Union has a responsibility to continue playing a leading role in global climate action, in cooperation with all of the world’s other economies, as it is only through actions by all Parties that it will be possible to achieve the objectives set out in the Paris Agreement.

Amendment 6

Proposal for a regulation

Recital 8

Text proposed by the Commission Amendment (8) As long as a significant number of the Union’s international partners have policy approaches that do not result in the same level of climate ambition, there is a risk of carbon leakage. Carbon leakage occurs if, for reasons of costs related to climate policies, businesses in certain industry sectors or subsectors were to transfer production to other countries or imports from those countries would replace equivalent but less GHG emissions intensive products. That could lead to an increase in their total emissions globally, thus jeopardising the reduction of GHG emissions that is urgently needed if the world is to keep the global average temperature to well below 2 oC above pre-industrial levels. (8) As long as a significant number of the Union’s international partners do not achieve the same level of climate ambition, and as the Union increases its climate ambition, there could be a risk of carbon leakage. Carbon leakage occurs if, for reasons of costs related to climate policies, businesses in certain industry sectors or subsectors were to transfer production to other countries or imports from those countries would replace equivalent but less GHG emissions intensive products. That could lead to an increase in their total emissions globally while undermining the effectiveness of Union emission reduction policies , thus jeopardising the reduction of GHG emissions that is urgently needed if the world is to keep the global average temperature to well below 2 oC above pre-industrial levels.

Amendment 7

Proposal for a regulation

Recital 9

Text proposed by the Commission Amendment (9) The initiative for a carbon border adjustment mechanism (‘CBAM’) is a part of the ‘Fit for 55 Package’. That mechanism is to serve as an essential element of the EU toolbox to meet the objective of a climate-neutral Union by 2050 in line with the Paris Agreement by addressing risks of carbon leakage resulting from the increased Union climate ambition. (9) The initiative for a carbon border adjustment mechanism (‘CBAM’) is a part of the ‘Fit for 55 Package’. That mechanism is to serve as an essential element of the EU toolbox to meet the objective of a climate-neutral Union by 2050 at the latest in line with the Paris Agreement by preventing carbon leakage resulting from the increased Union climate ambition. It can also contribute to establishing a level playing field for decarbonisation costs, to increasing the demand for low-carbon products and processes, as well as to avoiding distortions of competition and promoting fair trade.

Amendment 8

Proposal for a regulation

Recital 10

Text proposed by the Commission Amendment (10) Existing mechanisms to address the risk of carbon leakage in sectors or sub-sectors at risk of carbon leakage are the transitional free allocation of EU ETS allowances and financial measures to compensate for indirect emission costs incurred from GHG emission costs passed on in electricity prices respectively laid down in Articles 10a(6) and 10b of Directive 2003/87/EC. However, free allocation under the EU ETS weakens the price signal that the system provides for the installations receiving it compared to full auctioning and thus affects the incentives for investment into further abatement of emissions. (10) Existing mechanisms to address the risk of carbon leakage in sectors or sub-sectors at risk of carbon leakage are the transitional free allocation of EU ETS allowances and financial measures to compensate for indirect emission costs incurred from GHG emission costs passed on in electricity prices respectively laid down in Articles 10a(6) and 10b of Directive 2003/87/EC. Free allocation at the level of best performers has been a policy instrument for certain industrial sectors to address the risk of carbon leakage in the absence of a fair level playing field. However, both free allocation under the EU ETS and compensation for indirect emission costs weaken the price signal that the system provides for the installations receiving them, compared to full auctioning, and thus reduce the incentives for investment into further abatement of emissions.

Amendment 9

Proposal for a regulation

Recital 11 a (new)

Text proposed by the Commission Amendment (11a) Installations under the EU ETS are facing a rising carbon price and companies need long-term visibility, predictability and legal certainty to make their investment decisions. A clear pathway for the gradual inclusion of the remaining sectors and subsectors at risk of carbon leakage should therefore be established. This will strengthen the new legal framework to fight carbon leakage, provide the necessary time to ensure a smooth implementation of the CBAM and allow installations and companies make the necessary investments in the decarbonisation of industrial processes in a stable and predictable legal context.

Amendment 10

Proposal for a regulation

Recital 12

Text proposed by the Commission Amendment (12) While the objective of the CBAM is to prevent the risk of carbon leakage, this Regulation would also encourage the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated. (12) While the objective of the CBAM is to prevent the risk of carbon leakage, this Regulation would also encourage the use of more GHG emissions-efficient technologies by producers from third countries, so that less emissions per unit of output are generated. For that reason the CBAM could be an effective measure to lower emissions in third countries while ensuring a level playing field for Union industry.

Amendment 11

Proposal for a regulation

Recital 13

Text proposed by the Commission Amendment (13) As an instrument to prevent carbon leakage and reduce GHG emissions the CBAM should ensure that imported products are subject to a regulatory system that applies carbon costs equivalent to the ones that otherwise would have been borne under the EU ETS. The CBAM is a climate measure which should prevent the risk of carbon leakage and support the Union’s increased ambition on climate mitigation , while ensuring WTO compatibility. (13) As an instrument to prevent carbon leakage and reduce GHG emissions the CBAM should ensure that imported products are subject to a regulatory system that applies carbon costs equivalent to the ones that otherwise would have been borne under the EU ETS , resulting in an equivalent carbon pricing for imports and domestic products and a level playing field . The CBAM is a climate measure which should support the reduction of emissions in the Union in line with the European Green Deal and Regulation (EU) 2021/1119 and prevent the risk of carbon leakage, while ensuring compatibility with WTO rules .

Amendment 12

Proposal for a regulation

Recital 13 a (new)

Text proposed by the Commission Amendment (13a) The Commission should analyse the administrative costs incurred by the CBAM, while ensuring that staff receive adequate training to perform their duties.

Amendment 13

Proposal for a regulation

Recital 15

Text proposed by the Commission Amendment (15) In order to exclude from the CBAM third countries or territories fully integrated into, or linked, to the EU ETS in the event of future agreements, the power to adopt acts in accordance with Article 290 of TFEU should be delegated to the Commission in respect of amending the list of countries in Annex II. Conversely, those third countries or territories should be excluded from the list in Annex II and be subject to CBAM whereby they do not effectively charge the ETS price on goods exported to the Union. (15) In order to exclude from the CBAM third countries or territories fully integrated into, or linked, to the EU ETS in the event of future agreements, the power to adopt acts in accordance with Article 290 of TFEU should be delegated to the Commission in respect of amending the list of countries in Annex II. Conversely, those third countries or territories should be excluded from the list in Annex II and be subject to CBAM whereby they do not effectively charge the ETS price on goods exported to the Union. The Commission will monitor and address the possible practices of circumvention in third countries.

Amendment 14

Proposal for a regulation

Recital 15 a (new)

Text proposed by the Commission Amendment (15a) With a view to ensuring that the ecological transition in the outermost regions is accompanied by economic and social cohesion, an impact assessment should be carried out before the end of the transition period on the potential economic and social impacts specific to those regions. The Commission should ensure compliance with Article 349 TFEU and propose appropriate measures for the outermost regions in implementing the CBAM, in particular because of the specific customs and tax arrangements that apply to the outermost regions.

Amendment 15

Proposal for a regulation

Recital 17

Text proposed by the Commission Amendment (17) The GHG emissions to be regulated by the CBAM should correspond to those GHG emissions covered by Annex I to the EU ETS in Directive 2003/87/EC, namely carbon dioxide (‘CO2’) as well as, where relevant, nitrous oxide (‘N2O’) and perfluorocarbons (‘PFCs’). The CBAM should initially apply to direct emissions of those GHG from the production of goods up to the time of import into the customs territory of the Union , and after the end of a transition period and upon further assessment, as well to indirect emissions, mirroring the scope of the EU ETS. (17) The GHG emissions to be regulated by the CBAM should correspond to those GHG emissions covered by Annex I to the EU ETS in Directive 2003/87/EC, namely carbon dioxide (‘CO2’) as well as, where relevant, nitrous oxide (‘N2O’) and perfluorocarbons (‘PFCs’). The CBAM should reflect future revisions of the EU ETS in terms of regulated GHG emissions. The CBAM should apply to direct emissions of those GHG from the production of goods up to the time of import into the customs territory of the Union as well to indirect emissions, mirroring the scope of the EU ETS. Coherence between the CBAM and the EU ETS is essential to respect the principles of the WTO.

Amendment 16

Proposal for a regulation

Recital 19

Text proposed by the Commission Amendment (19) However, while the EU ETS sets an absolute cap on the GHG emissions from the activities under its scope and allows tradability of allowances (so called ‘cap and trade system’), the CBAM should not establish quantitative limits to import, so as to ensure that trade flows are not restricted. Moreover, while the EU ETS applies to installations based in the Union, the CBAM should be applied to certain goods imported into the customs territory of the Union. (19) However, while the EU ETS sets an absolute cap on the GHG emissions from the activities under its scope and allows tradability of allowances (so called ‘cap and trade system’), the CBAM should not establish quantitative limits to import, so as to ensure that trade flows are not restricted or disrupted . Moreover, while the EU ETS applies to installations based in the Union, the CBAM should be applied to certain goods imported into the customs territory of the Union to ensure a level playing field and prevent the risk of carbon leakage while ensuring compatibility with WTO rules .

Amendment 17

Proposal for a regulation

Recital 20

Text proposed by the Commission Amendment (20) The CBAM system has some specific features compared with the EU ETS, including on the calculation of the price of CBAM certificates, on the possibilities to trade certificates and on their validity over time. These are due to the need to preserve the effectiveness of the CBAM as a measure preventing carbon leakage over time and to ensure that the management of the system is not excessively burdensome in terms of obligations imposed on the operators and of resources for the administration, while at the same time preserving an equivalent level of flexibility available to operators under the EU ETS. (20) The CBAM system has some specific features compared with the EU ETS, including on the calculation of the price of CBAM certificates, on the possibilities to trade certificates and on their validity over time. These are due to the need to preserve the effectiveness of the CBAM as a measure preventing carbon leakage over time and to ensure that the management of the system is not excessively burdensome in terms of obligations imposed on the operators , in particular small and medium-sized enterprises (SMEs), and of resources for the administration, while at the same time preserving an equivalent level of flexibility available to operators under the EU ETS.

Amendment 18

Proposal for a regulation

Recital 21

Text proposed by the Commission Amendment (21) In order to preserve its effectiveness as a carbon leakage measure, the CBAM needs to reflect closely the EU ETS price. While on the EU ETS market the price of allowances is determined through auctions, the price of CBAM certificates should reasonably reflect the price of such auctions through averages calculated on a weekly basis. Such weekly average prices reflect closely the price fluctuations of the EU ETS and allow a reasonable margin for importers to take advantage of the price changes of the EU ETS while at the same ensuring that the system remains manageable for the administrative authorities. (21) In order to preserve its effectiveness as a carbon leakage measure and to ensure compatibility with WTO rules , the CBAM needs to reflect closely the EU ETS price. While on the EU ETS market the price of allowances is determined through auctions, the price of CBAM certificates should reasonably reflect the price of such auctions through averages calculated on a weekly basis. Such weekly average prices reflect closely the price fluctuations of the EU ETS and allow a reasonable margin for importers to take advantage of the price changes of the EU ETS while at the same ensuring that the system remains manageable for the administrative authorities.

Amendment 19

Proposal for a regulation

Recital 23

Text proposed by the Commission Amendment (23) Given that the CBAM applies to imports of goods into the customs territory of the Union rather than to installations, certain adaptations and simplifications would also need to apply in the CBAM regime. One of those simplifications should consist in a declarative system where importers should report the total verified GHG emissions embedded in goods imported in a given calendar year. A different timing compared to the compliance cycle of the EU ETS should also be applied to avoid any potential bottleneck resulting from obligations for accredited verifiers under this Regulation and the EU ETS. (23) Given that the CBAM applies to imports of goods into the customs territory of the Union rather than to installations, certain adaptations and simplifications would also need to apply in the CBAM regime. One of those simplifications should consist in a simple and accessible declarative system where importers should report the total verified GHG emissions embedded in goods imported in a given calendar year. A different timing compared to the compliance cycle of the EU ETS should also be applied to avoid any potential bottleneck resulting from obligations for accredited verifiers under this Regulation and the EU ETS.

Amendment 20

Proposal for a regulation

Recital 23 a (new)

Text proposed by the Commission Amendment (23a) Given the unique nature of the CBAM and the need for close coordination at Union level, a CBAM authority should be established to properly implement and monitor this Regulation.

Amendment 21

Proposal for a regulation

Recital 24

Text proposed by the Commission Amendment (24) In terms of sanctions, Member States should apply penalties to infringements of this Regulation and ensure that they are implemented. The amount of those penalties should be identical to penalties currently applied within the Union in case of infringement of EU ETS according to Article 16(3) and (4) of Directive 2003/87/EC . (24) The CBAM should be carefully designed and supervised by the CBAM authority and customs authorities, inter alia, to prevent, identify and penalise any type of practice of circumvention, including abuse or fraud. The CBAM authority and Member States , in accordance with their national law, should apply administrative or criminal penalties to infringements of this Regulation and ensure that they are implemented. The amount of the penalties for authorised declarants who fail to surrender, by 31 May each year, a number of CBAM certificates corresponding to the emissions embedded in goods imported during the previous year or who submit false information related to embedded emissions to the CBAM authority with a view to obtaining a favourable individual treatment should be equivalent to three times the average price of CBAM certificates in the previous year for each CBAM certificate that the authorised declarant did not surrender in accordance with Article 22. Payment of the penalty should not release the authorised declarant from the obligation to surrender the outstanding number of CBAM certificates to the CBAM authority .

Amendment 22

Proposal for a regulation

Recital 26

Text proposed by the Commission Amendment (26) The product coverage of the CBAM should reflect the activities covered by the EU ETS as that scheme is based on quantitative and qualitative criteria linked to the environmental objective of Directive 2003/87/EC and is the most comprehensive GHG emissions regulatory system in the Union. (26) The product coverage of the CBAM should reflect the activities covered by the EU ETS as that scheme is based on quantitative and qualitative criteria linked to the environmental objective of Directive 2003/87/EC and is the most comprehensive GHG emissions regulatory system in the Union. The Commission should establish a timeline for the gradual inclusion of all goods under the sectors covered by Directive 2003/87/EC by 1 January 2030. Priority should be given to goods that are most exposed to carbon leakage and are most carbon intensive.

Amendment 23

Proposal for a regulation

Recital 29

Text proposed by the Commission Amendment (29) The goods under this Regulation should be selected after a careful analysis of their relevance in terms of cumulated GHG emissions and risk of carbon leakage in the corresponding EU ETS sectors while limiting complexity and administrative burden. In particular, the actual selection should take into account basic materials and basic products covered by the EU ETS with the objective of ensuring that imports of energy intensive products into the Union are on equal footing with EU products in terms of EU ETS carbon pricing, and to mitigate risks of carbon leakage. Other relevant criteria to narrow the selection should be: firstly, relevance of sectors in terms of emissions, namely whether the sector is one of the largest aggregate emitters of GHG emissions; secondly, sector’s exposure to significant risk of carbon leakage, as defined pursuant to Directive 2003/87/EC; thirdly, the need to balance broad coverage in terms of GHG emissions while limiting complexity and administrative effort. (29) The goods under this Regulation should be selected after a careful analysis of their relevance in terms of cumulated GHG emissions and risk of carbon leakage in the corresponding EU ETS sectors while limiting complexity and administrative burden for Union industry, companies and SMEs . In particular, the actual selection should take into account basic materials and basic products covered by the EU ETS with the objective of ensuring that imports of energy intensive products into the Union are on equal footing with EU products in terms of EU ETS carbon pricing, and to mitigate risks of carbon leakage. Other relevant criteria to narrow the selection should be: firstly, relevance of sectors in terms of emissions, namely whether the sector is one of the largest aggregate emitters of GHG emissions; secondly, sector’s exposure to significant risk of carbon leakage, as defined pursuant to Directive 2003/87/EC; thirdly, the need to balance broad coverage in terms of GHG emissions while limiting complexity and administrative effort. Specific attention should also be paid to avoid any risk of market distortions between the different sectors covered by the CBAM.

Amendment 24

Proposal for a regulation

Recital 30

Text proposed by the Commission Amendment (30) The use of the first criterion allows listing the following industrial sector in terms of cumulated emissions: iron and steel, refineries, cement, organic basic chemicals, and fertilisers. (30) The use of the first criterion allows listing the following industrial sector in terms of cumulated emissions: iron and steel, refineries, cement, aluminium, organic basic chemicals, hydrogen, polymers, and fertilisers.

Amendment 25

Proposal for a regulation

Recital 32

Text proposed by the Commission Amendment (32) In particular, organic chemicals are not included in the scope of this Regulation due to technical limitations that do not allow to clearly define the embedded emissions of imported goods. For these goods the applicable benchmark under the EU ETS is a basic parameter, which does not allow for an unambiguous allocation of emissions embedded in individual imported goods. A more targeted allocation to organic chemicals will require more data and analysis. deleted

Amendment 26

Proposal for a regulation

Recital 33

Text proposed by the Commission Amendment (33) Similar technical constraints apply to refinery products, for which it is not possible to unambiguously assign GHG emissions to individual output products. At the same time, the relevant benchmark in the EU ETS does not directly relate to specific products, such as gasoline, diesel or kerosene, but to all refinery output. (33) Some technical constraints apply to refinery products, for which it is not possible to unambiguously assign GHG emissions to individual output products. At the same time, the relevant benchmark in the EU ETS does not directly relate to specific products, such as gasoline, diesel or kerosene, but to all refinery output. In order to extend the scope of this Regulation in a timely manner, the Commission should develop a fair methodology to calculate embedded emissions from refinery products before the end of the transition phase.

Amendment 27

Proposal for a regulation

Recital 34

Text proposed by the Commission Amendment (34) However, aluminium products should be included in the CBAM as they are highly exposed to carbon leakage. Moreover, in several industrial applications they are in direct competition with steel products because of characteristics closely resembling those of steel products. Inclusion of aluminium is also relevant as the scope of the CBAM may be extended to cover also indirect emissions in the future. (34) Aluminium products should be included in the CBAM as they are highly exposed to carbon leakage. Moreover, in several industrial applications they are in direct competition with steel products because of characteristics closely resembling those of steel products. Inclusion of aluminium is also relevant as the scope of the CBAM also covers indirect emissions.

Amendment 28

Proposal for a regulation

Recital 36

Text proposed by the Commission Amendment (36) Conversely, this Regulation should not apply to certain products whose production does not entail meaningful emissions like ferrous scrap (under CN code 7204), ferro-alloys (CN code 7202) and certain fertilisers (under CN code 3105 60 00). (36) Conversely, this Regulation should not apply at a first stage to certain products whose production does not entail meaningful emissions like ferrous scrap (under CN code 7204), ferro-alloys (CN code 7202) and certain fertilisers (under CN code 3105 60 00).

Amendment 29

Proposal for a regulation

Recital 40

Text proposed by the Commission Amendment (40) An authorised declarant should be allowed to claim a reduction in the number of CBAM certificates to be surrendered corresponding to the carbon price already paid for those emissions in other jurisdictions. (40) An authorised declarant should be allowed to claim a reduction in the number of CBAM certificates to be surrendered corresponding to the explicit carbon price already paid for those emissions in other jurisdictions.

Amendment 30

Proposal for a regulation

Recital 45

Text proposed by the Commission Amendment (45) The physical characteristics of electricity as a product, in particular the impossibility to follow the actual flow of electrons, justifies a slightly different design for the CBAM. Default values should be used as a standard approach and it should be possible for authorised declarants to claim the calculation of their CBAM obligations based on actual emissions. Electricity trade is different from trade in other goods, notably because it is traded via interconnected electricity grids, using power exchanges and specific forms of trading. Market coupling is a densely regulated form of electricity trade which allows to aggregate bids and offers across the Union. (45) The physical characteristics of electricity as a product, in particular the impossibility to follow the actual flow of electrons, justifies a slightly different design for the CBAM. It should be possible for authorised declarants to claim the calculation of their CBAM obligations based on actual verified emissions . Default values should only be used if data on actual emissions is unavailable . Electricity trade is different from trade in other goods, notably because it is traded via interconnected electricity grids, using power exchanges and specific forms of trading. Market coupling is a densely regulated form of electricity trade which allows to aggregate bids and offers across the Union.

Amendment 31

Proposal for a regulation

Recital 46 a (new)

Text proposed by the Commission Amendment (46a) To reduce the risk of carbon leakage as well as to ensure a level playing field for Union industry, all practices of circumvention should be prohibited. The Commission should evaluate the risk of practices of circumvention in all sectors included in Annex I, especially the likelihood of transshipment, modified trade patterns towards downstream products, as well as resource shuffling, cost absorption, manipulation of emissions data, wrongful labelling of goods and slight modifications of the product so as to import a product under a different combined nomenclature (‘CN’) code. The Commission should be empowered to adopt, where appropriate, delegated acts to strengthen anti-circumvention measures.

Amendment 32

Proposal for a regulation

Recital 49

Text proposed by the Commission Amendment (49) Once third countries will be closely integrated into the Union electricity market via market coupling, technical solutions should be found to ensure the application of the CBAM to electricity exported from such countries into the customs territory of the Union. If technical solutions cannot be found, third countries that are market coupled should benefit from a time limited exemption from the CBAM until at the latest 2030 with regard solely to the export of electricity, provided that certain conditions are satisfied. However, those third countries should develop a roadmap and commit to implement a carbon pricing mechanism providing for an equivalent price as the EU ETS, and should commit to achieving carbon neutrality by 2050 [as well as?] to align with Union legislation in the areas of environment, climate, competition and energy. That exemption should be withdrawn at any time if there are reasons to believe that the country in question does not fulfil its commitments or it has not adopted by 2030 an ETS equivalent to the EU ETS. (49) Once third countries will be closely integrated into the Union electricity market via market coupling, technical solutions should be found to ensure the application of the CBAM to electricity exported from such countries into the customs territory of the Union. If technical solutions cannot be found, third countries that are market coupled should benefit from a time limited exemption from the CBAM until at the latest 2030 with regard solely to the export of electricity, provided that certain conditions are satisfied. However, those third countries should develop a roadmap and commit to implement an explicit carbon pricing mechanism providing for an equivalent price as the EU ETS, and should commit to achieving carbon neutrality by 2050 at the latest to align with Union legislation in the areas of environment, climate, competition and energy. That exemption should be withdrawn at any time if there are reasons to believe that the country in question does not fulfil its commitments or it has not adopted by 2030 an ETS equivalent to the EU ETS.

Amendment 34

Proposal for a regulation

Recital 51

Text proposed by the Commission Amendment (51) To facilitate and ensure a proper functioning of the CBAM, the Commission should provide support to the competent authorities responsible for the application of this Regulation in carrying out their obligations. deleted

Amendment 35

Proposal for a regulation

Recital 51 a (new)

Text proposed by the Commission Amendment (51a) It is necessary to ensure that parties affected by decisions made by the CBAM authority have access to the necessary remedies. An appropriate appeal mechanism should therefore be set up so that decisions of the CBAM authority can be subject to appeal to a Board of Appeal, the decisions of which can be subject to action before the Court of Justice of the European Union in accordance with the TFEU.

Amendment 36

Proposal for a regulation

Recital 52

Text proposed by the Commission Amendment (52) The Commission should evaluate the application of this Regulation before the end of the transitional period and report to the European Parliament and the Council. The report of the Commission should in particular focus on possibilities to enhance climate actions towards the objective of a climate neutral Union by 2050. The Commission should, as part of that evaluation, initiate collection of information necessary to possibly extend the scope to indirect emissions, as well as to other goods and services at risk of carbon leakage, and to develop methods of calculating embedded emissions based on the environmental footprint methods (47). (52) The Commission should regularly evaluate the application of this Regulation and report to the European Parliament and the Council. The reports of the Commission should in particular focus on possibilities to enhance climate actions towards the objective of a climate neutral Union by 2050. The Commission should, as part of the first evaluation, initiate collection of information necessary to possibly further extend the scope of Annex I , to other goods and services at risk of carbon leakage , such as downstream products , and to develop methods of calculating embedded emissions based on the environmental footprint methods (47). The Commission should focus its subsequent evaluations on the impact on competitiveness of Union industry and downstream industry, impact on SMEs, possible disproportionate administrative burden, possible practices of circumvention, distortion in trade patterns and possibilities to enhance climate actions towards a climate neutral Union by 2050 and accompanying those evaluations, where appropriate, with legislative proposals.

Amendment 37

Proposal for a regulation

Recital 52 a (new)

Text proposed by the Commission Amendment (52a) In order to allow for a rapid and effective response to unforeseeable, exceptional and unprovoked circumstances that have destructive consequences for the economic and industrial infrastructure of one or more third countries subject to the CBAM, the Commission should put forward a legislative proposal, as appropriate, amending this Regulation. Such a legislative proposal should set out the measures that are most appropriate in light of the circumstances that the third country or countries are facing, while preserving the objectives of this Regulation. Those measures should be limited in time.

Amendment 38

Proposal for a regulation

Recital 53 a (new)

Text proposed by the Commission Amendment (53a) Alongside dialogue with third countries, the Commission should, at each stage after the entry into force of this Regulation, engage with all interested parties of the sectors covered by this Regulation, including industry representatives, trade unions and civil society.

Amendment 39

Proposal for a regulation

Recital 54 a (new)

Text proposed by the Commission Amendment (54a) The Commission should actively pursue the establishment of an international ‘Carbon club’ in order to ensure continuous exchange in good faith with the Union’s trade partners. This should be an open non-exclusive international forum, which could be located under an appropriate multilateral organisation such as the WTO or the relevant and open body of the OECD for instance. Its objective should be to allow for the comparison and coordination of carbon pricing measures as well as non-carbon pricing measures with an impact on emission reduction. The Carbon club should also support the comparability of climate measures by ensuring the quality of climate monitoring, reporting and verification among its members. Membership of the club should be informal, open and on a voluntary basis for countries aiming at high climate ambition in line with the Paris Agreement. Given that the CBAM is a first-of-a-kind measure, which is meant to be a cooperative tool designed to fight carbon leakage, such a Carbon club will provide the means for engagement and transparency between the Union and its trade partners.

Amendment 40

Proposal for a regulation

Recital 55

Text proposed by the Commission Amendment (55) As the CBAM aims to encourage cleaner production processes, the EU stands ready to work with low and middle-income countries towards the de-carbonisation of their manufacturing industries. Moreover, the Union should support less developed countries with the necessary technical assistance in order to facilitate their adaptation to the new obligations established by this regulation. (55) As the CBAM aims to encourage cleaner production processes, the EU stands ready to work with low and middle-income countries towards the de-carbonisation of their manufacturing industries. Moreover, the Union should support less developed countries with the necessary technical assistance in order to facilitate their adaptation to the new obligations established by this regulation. While the revenues generated by the sale of CBAM certificates will enter the Union budget as general income and should not be assigned to any specific Union budget expenditure, in light of the universality principle governing the Union budget, the Union should finance least developed countries' efforts towards the de-carbonisation of their manufacturing industries with an annual amount corresponding at least to the level of revenues generated by the sale of CBAM certificates. Such funding should be provided through the financial support provided by the Union to international climate finance and the relevant geographic programmes and the thematic programme Global Challenges of the Neighbourhood, Development and International Cooperation Instrument established by Regulation (EU) 2021/947 of the European Parliament and of the Council (1a) . The necessary adjustments to the budgetary appropriation of that instrument should be made through the Union annual budgetary procedure until 2027 and then included in the next multiannual financial framework.

Amendment 41

Proposal for a regulation

Recital 57 a (new)

Text proposed by the Commission Amendment (57a) The Commission should regularly monitor any changes in trade flows from least developed countries attributable to the CBAM in order to evaluate the efficiency of this Regulation, including its contribution to the prevention of carbon leakage and its impact on trade flows between the Union and least developed countries. The Commission should also regularly monitor the technical assistance provided to least developed countries in order to evaluate its effectiveness in contributing to the decarbonisation process in those countries.

Amendment 42

Proposal for a regulation

Recital 59

Text proposed by the Commission Amendment (59) It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016 (51). 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. (59) It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at the level of the relevant experts and industrial sectors , and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016 (51). 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.

Amendment 43

Proposal for a regulation

Recital 61

Text proposed by the Commission Amendment (61) The financial interests of the Union should be protected through proportionate measures throughout the expenditure cycle, including the prevention, detection and investigation of irregularities, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, administrative and financial penalties. (61) The financial interests of the Union should be protected through proportionate measures throughout the expenditure cycle, including the prevention, detection and investigation of irregularities, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, administrative and financial penalties. According to Europol, carbon credit fraud has cost more than EUR 5 billion in lost government revenues. The CBAM should therefore introduce appropriate and effective mechanisms for avoiding losses of government revenues.

Amendment 44

Proposal for a regulation

Recital 61 a (new)

Text proposed by the Commission Amendment (61a) The CBAM authority should be funded in a way to guarantee its viable functioning, and enable sound financial management. Any costs of the establishment and operation of the authority should be borne by the general income of the Union budget.

Amendment 45

Proposal for a regulation

Article 1 — paragraph 1

Text proposed by the Commission Amendment 1. This Regulation establishes a carbon border adjustment mechanism (the ‘CBAM’) for addressing greenhouse gas emissions embedded in the goods referred to in Annex I, upon their importation into the customs territory of the Union, in order to prevent the risk of carbon leakage. 1. This Regulation establishes a carbon border adjustment mechanism (the ‘CBAM’) for addressing greenhouse gas emissions embedded in the goods referred to in Annex I, upon their importation into the customs territory of the Union, in order to reduce global carbon emissions and support the implementation of the goals of the Paris Agreement by preventing any potential risk of carbon leakage from the Union and incentivise the reduction of emissions in third countries . For that purpose, the CBAM aims to equalise carbon pricing for imports and domestic products that are within the scope of this Regulation.

Amendment 46

Proposal for a regulation

Article 1 — paragraph 3

Text proposed by the Commission Amendment 3. The mechanism will progressively become an alternative to the mechanisms established under Directive 2003/87/EC to prevent the risk of carbon leakage, notably the allocation of allowances free of charge in accordance with Article 10a of that Directive. 3. The mechanism is set to progressively replace the mechanisms established under Directive 2003/87/EC to prevent the risk of carbon leakage, notably the allocation of allowances free of charge in accordance with Article 10a of that Directive.

Amendment 47

Proposal for a regulation

Article 2 — paragraph 1 a (new)

Text proposed by the Commission Amendment 1a. By 1 January 2030 this Regulation shall apply to all sectors covered by Directive 2003/87/EC. The Commission is empowered to adopt a delegated act in accordance with Article 28 supplementing this Regulation by establishing a timeline for the gradual inclusion of all goods under the sectors covered by Directive 2003/87/EC. The Commission shall give priority in that delegated act to goods that are most exposed to carbon leakage and are most carbon intensive. That delegated act shall be adopted by 30 June 2025. The Commission is empowered to adopt a delegated act in accordance with Article 28 supplementing Annex I by adding all goods under the sectors covered in the EU ETS. By… [three years after the date of entry into force of this Regulation] the Commission shall adopt a delegated act in accordance with Article 28 supplementing Annex I by adding downstream products of the goods listed in Annex I. Those downstream products shall contain a significant share of at least one of the goods listed in Annex I.

Amendment 48

Proposal for a regulation

Article 2 — paragraph 6

Text proposed by the Commission Amendment 6. The Commission is empowered to adopt implementing acts in order to determine the conditions for applying the CBAM to goods referred to in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2). 6. The Commission is empowered to adopt delegated acts in accordance with Article 28 in order to supplement this Regulation by setting out the conditions for applying the CBAM to goods referred to in paragraph 2.

Amendment 49

Proposal for a regulation

Article 2 — paragraph 7 — point b

Text proposed by the Commission Amendment (b) the national law in that third country or territory implements the main provisions of the Union electricity market legislation, including on the development of renewable energy sources and the coupling of electricity markets; (b) the national law in that third country or territory implements the main provisions of the Union electricity market legislation, including on the development of renewable energy sources, the coupling of electricity markets , and implements the Union climate, environment and competition acquis, fully respecting agreed deadlines ;

Amendment 50

Proposal for a regulation

Article 2 — paragraph 7 — point e

Text proposed by the Commission Amendment (e) the third country or territory has, when implementing the roadmap pursuant to point (c), demonstrated substantial progress towards the alignment of domestic legislation with Union law in the field of climate action on the basis of that roadmap, including towards carbon pricing at an equivalent level as the Union at least insofar as the generation of electricity is concerned. The implementation of an emission trading system for electricity, with a price equivalent to the EU ETS, shall be finalised by 1 January 2030 ; (e) the third country or territory has, when implementing the roadmap pursuant to point (c), demonstrated substantial progress towards the alignment of domestic legislation with Union law in the field of climate action on the basis of that roadmap, including towards carbon pricing at an equivalent level as the Union at least insofar as the generation of electricity is concerned. The implementation of an emission trading system for electricity, with a price equivalent to the EU ETS, shall be finalised by 1 January 2028 ;

Amendment 51

Proposal for a regulation

Article 2 — paragraph 8

Text proposed by the Commission Amendment 8. A third country or territory satisfying the conditions set out in paragraph 7, points (a) to (f), shall be listed in Annex II, Section B, of this Regulation, and shall submit two reports on the fulfilment of the conditions pursuant to paragraph 7, points (a) to (f), one before 1 July 2025 and another before 1 July 2029. By 31 December 2025 and by 31 December 2029, the Commission shall assess, notably on the basis of the roadmap pursuant to paragraph 7, point (c), and the reports received from the third country or territory, whether that third country or territory continues to respect the conditions set out in paragraph 7. 8. A third country or territory satisfying the conditions set out in paragraph 7, points (a) to (f), shall be listed in Annex II, Section B, of this Regulation, and shall submit three comprehensive reports on the fulfilment of the conditions pursuant to paragraph 7, points (a) to (f), one before 1 July 2024 , one before 1 July 2027 and another before 1 July 2029. By 31 December 2024 , by 31 December 2027 and by 31 December 2029, the Commission shall assess, notably on the basis of the roadmap pursuant to paragraph 7, point (c), and the reports received from the third country or territory, whether that third country or territory continues to respect the conditions set out in paragraph 7.

Amendment 52

Proposal for a regulation

Article 2 — paragraph 9 — point b a (new)

Text proposed by the Commission Amendment (ba) if the Commission has evidence that, as a result of increased exports of electricity to the Union, the emissions from electricity production in the country or territory have increased.

Amendment 53

Proposal for a regulation

Article 2 — paragraph 12

Text proposed by the Commission Amendment 12. The Union, may conclude agreements with third countries with a view to take account of carbon pricing mechanisms in these countries in the application of Article 9. 12. The Union, may conclude agreements with third countries with a view to take account of carbon pricing mechanisms in these countries in the application of Article 9. Such agreements shall not lead to undue preferential treatment of imports from the third countries as regards the CBAM certificates to be surrendered and shall take into account any carbon pricing mechanisms that are considered to be practices of circumvention within the meaning of Article 27(2).

Amendment 54

Proposal for a regulation

Article 3 — paragraph 1 — point 11

Text proposed by the Commission Amendment (11) ‘ competent authority’ means the authority , designated by each Member State in accordance with Article 11 of this Regulation; (11) ‘ CBAM authority’ means the authority established in accordance with Article 11 of this Regulation;

Amendment 55

Proposal for a regulation

Article 3 — paragraph 1 — point 15

Text proposed by the Commission Amendment (15) ‘direct emissions’ mean emissions from the production processes of goods over which the producer has direct control; (15) ‘direct emissions’ mean emissions from the production processes of goods over which the producer has direct control , including emissions from the production of heating and cooling consumed during the production processes ;

Amendment 56

Proposal for a regulation

Article 3 — paragraph 1 — point 16

Text proposed by the Commission Amendment (16) ‘embedded emissions’ mean direct emissions released during the production of goods, calculated pursuant to the methods set out in Annex III; (16) ‘embedded emissions’ mean direct and indirect emissions released during the production of goods and the electricity consumed during the production processes of goods, calculated pursuant to the methods set out in Annex III;

Amendment 57

Proposal for a regulation

Article 3 — paragraph 1 — point 18

Text proposed by the Commission Amendment (18) ‘CBAM certificate’ means a certificate in electronic format corresponding to one tonne of embedded emissions in goods; (18) ‘CBAM certificate’ means a certificate , common to all Member States, in electronic format corresponding to one tonne of embedded emissions in goods;

Amendment 58

Proposal for a regulation

Article 3 — paragraph 1 — point 22

Text proposed by the Commission Amendment (22) ‘actual emissions’ mean the emissions calculated based on primary data from the production processes of goods; (22) ‘actual emissions’ mean the emissions calculated and verified based on primary data from the production processes of goods and from the production of electricity consumed during the production processes of goods ;

Amendment 59

Proposal for a regulation

Article 3 — paragraph 1 — point 23

Text proposed by the Commission Amendment (23) ‘carbon price’ means the monetary amount paid in a third country in the form of a tax or emission allowances under a greenhouse gas emissions trading system, calculated on greenhouse gases covered by such a measure and released during the production of goods; (23) ‘carbon price’ means the monetary amount paid in a third country in the form of a tax , fee or emission allowances under a greenhouse gas emissions trading system, calculated on greenhouse gases covered by such a measure and released during the production of goods;

Amendment 60

Proposal for a regulation

Article 3 — paragraph 1 — point 28

Text proposed by the Commission Amendment (28) ‘indirect emissions’ mean emissions from the production of electricity , heating and cooling, which is consumed during the production processes of goods. (28) ‘indirect emissions’ mean greenhouse gas emissions from the production processes of electricity which is consumed during the production processes of goods;

Amendment 61

Proposal for a regulation

Article 3 — paragraph 1 — point 28 a (new)

Text proposed by the Commission Amendment (28a) ‘least developed country’ means a country included in the list of such countries established by the United Nations Economic and Social Council;

Amendment 62

Proposal for a regulation

Article 3 — paragraph 1 — point 28 b (new)

Text proposed by the Commission Amendment (28b) ‘CBAM factor’ means a factor reducing the free allocation of allowances for the installations producing the goods covered in Annex I;

Amendment 63

Proposal for a regulation

Article 3 — paragraph 1 — point 28 c (new)

Text proposed by the Commission Amendment (28c) ‘downstream products’ means products produced by using goods as listed in Annex I.

Amendment 64

Proposal for a regulation

Article 4 — paragraph 1

Text proposed by the Commission Amendment Goods shall only be imported into the customs territory of the Union by a declarant that is authorised by the competent authority in accordance with Article 17 (‘authorised declarant’). Goods shall only be imported into the customs territory of the Union by a declarant that is authorised by the CBAM authority in accordance with Article 17 (‘authorised declarant’). (The designation ‘CBAM authority’ applies throughout the text. Adopting it will necessitate corresponding changes throughout)

Amendment 65

Proposal for a regulation

Article 5 — paragraph 1

Text proposed by the Commission Amendment 1. Any declarant shall, prior to importing goods as referred to in Article 2, apply to the competent authority at the place where it is established, for an authorisation to import those goods into the customs territory of the Union. 1. Any declarant shall, prior to importing goods as referred to in Article 2, apply to the CBAM authority at the place where it is established, for an authorisation to import those goods into the customs territory of the Union.

Amendment 66

Proposal for a regulation

Article 5 — paragraph 3 — point e

Text proposed by the Commission Amendment (e) declaration on honour that the declarant was not involved in any serious infringements or repeated infringements of customs legislation, taxation rules and market abuse rules during the five years preceding the year of the application, including that it has no record of serious criminal offences relating to its economic activity; (e) declaration on honour that the declarant or, where applicable, a board member of the declarant was not involved in any serious infringements or repeated infringements of customs legislation, taxation rules and market abuse rules during the five years preceding the year of the application, including that it has no record of criminal offences relating to the declarant’s economic activity;

Amendment 67

Proposal for a regulation

Article 5 — paragraph 3 — point f

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

Amendment 68

Proposal for a regulation

Article 5 — paragraph 4

Text proposed by the Commission Amendment 4. The applicant may at any time withdraw its application. 4. The applicant may at any time modify or withdraw its application.

Amendment 69

Proposal for a regulation

Article 5 — paragraph 5

Text proposed by the Commission Amendment 5. The authorised declarant shall inform the competent authority without delay of any changes of the information provided under paragraph 3, arising after the decision was taken, which may influence the decision taken pursuant to Article 17 or content of the authorisation in accordance with Article 17. 5. The authorised declarant shall inform the CBAM authority without delay of any changes of the information provided under paragraph 3, arising after the decision was taken, which may influence the decision taken pursuant to Article 17 or content of the authorisation in accordance with Article 17.

Amendment 70

Proposal for a regulation

Article 5 — paragraph 6

Text proposed by the Commission Amendment 6. The Commission is empowered to adopt implementing acts, concerning the standard format of the application and the delays and procedure to be followed by the competent authority when processing applications for authorisation in accordance with paragraph 1 and the rules for identification by the competent authority of the declarants for the importation of electricity. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2). 6. The Commission is empowered to adopt implementing acts, concerning the standard format of the application and the delays and procedure to be followed by the CBAM authority when processing applications for authorisation in accordance with paragraph 1 and the rules for identification by the CBAM authority of the declarants for the importation of electricity. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

Amendment 71

Proposal for a regulation

Article 6 — paragraph 1

Text proposed by the Commission Amendment 1. By 31 May of each year, each authorised declarant shall submit a declaration (‘CBAM declaration’), for the calendar year preceding the declaration, to the competent authority. 1. By 31 May of each year, each authorised declarant shall submit a declaration (‘CBAM declaration’), for the calendar year preceding the declaration, to the CBAM authority.

Amendment 72

Proposal for a regulation

Article 6 — paragraph 2 — point c a (new)

Text proposed by the Commission Amendment (ca) a copy of the verification report issued by the accredited verifier under Article 8 and Annex V.

Amendment 73

Proposal for a regulation

Article 7 — paragraph 5

Text proposed by the Commission Amendment 5. The authorised declarant shall keep those records of information referred to in paragraph 4, including the report of the verifier, until the end of the fourth year after the year in which the CBAM declaration has been or should have been submitted. 5. The authorised declarant shall keep those records of information referred to in paragraph 4, including the report of the verifier, until the end of the fourth year after the year in which the CBAM declaration has been or should have been submitted. Those records shall be sufficiently detailed to enable the accredited verifiers to verify the embedded emissions in accordance with Article 8 and to enable the CBAM authority to review the CBAM declaration in accordance with Article 19(1). The authorised declarant shall keep those records for the period referred to in Article 19(1) in which the CBAM authority may review the CBAM declaration.

Amendment 74

Proposal for a regulation

Article 7 — paragraph 6

Text proposed by the Commission Amendment 6. The Commission is empowered to adopt implementing acts concerning detailed rules regarding the elements of the calculation methods set out in Annex III, including determining system boundaries of production processes, emission factors, installation-specific values of actual emissions and default values and their respective application to individual goods as well as laying down methods to ensure the reliability of data on the basis of which the default values shall be determined, including the level of detail and the verification of the data. Where necessary, those acts shall provide that the default values can be adapted to particular areas, regions or countries to take into account specific objective factors such as geography, natural resources, market conditions, prevailing energy sources, or industrial processes. The implementing acts shall build upon existing legislation for the verification of emissions and activity data for installations covered by Directive 2003/87/EC, in particular Implementing Regulation (EU) 2018/2067. 6. The Commission is empowered to adopt implementing acts concerning the elements of the calculation methods set out in Annex III, including determining system boundaries of production processes, emission factors, installation-specific values of actual emissions and default values and their respective application to individual goods as well as laying down methods to ensure the reliability of data on the basis of which the default values shall be determined, including the level of detail and the verification of the data. Where necessary, those acts shall provide that the default values can be adapted to particular areas, regions or countries to take into account specific objective factors such as geography, natural resources, market conditions, prevailing energy sources, or industrial processes. The implementing acts shall build upon existing legislation for the verification of emissions and activity data for installations covered by Directive 2003/87/EC, in particular Implementing Regulation (EU) 2018/2067.

Amendment 75

Proposal for a regulation

Article 7 — paragraph 7 a (new)

Text proposed by the Commission Amendment 7a. The Commission is empowered to adopt delegated acts in accordance with Article 28 supplementing this Regulation regarding the definition of a method to calculate embedded indirect emissions for simple and complex products and relevant default values, as well as a method to determine the CBAM price of indirect embedded emissions.

Amendment 76

Proposal for a regulation

Article 8 — paragraph 1

Text proposed by the Commission Amendment 1. The authorised declarant shall ensure that the total embedded emissions declared in the CBAM declaration submitted pursuant to Article 6 are verified by a verifier accredited pursuant to Article 18, based on the verification principles set out in Annex V. 1. The authorised CBAM declarant shall ensure that the total embedded emissions declared in the CBAM declaration submitted pursuant to Articles 6 and 35, as well as the methodology and supporting data and documents, are verified by a verifier accredited pursuant to Article 18, based on the verification principles set out in Annex V.

Amendment 77

Proposal for a regulation

Article 8 — paragraph 1 a (new)

Text proposed by the Commission Amendment 1a. The CBAM authority is authorised to verify the accuracy of the information provided in the CBAM declaration pursuant to this Article.

Amendment 78

Proposal for a regulation

Article 8 — paragraph 3 — subparagraph 1

Text proposed by the Commission Amendment The Commission is empowered to adopt implementing acts concerning the principles of verification referred to in paragraph 1 as regards the possibility to waive the obligation for the verifier to visit the installation where relevant goods are produced and the obligation to set thresholds for deciding whether misstatements or non-conformities are material and concerning the supporting documentation needed for the verification report. The Commission is empowered to adopt delegated acts in accordance with Article 28 supplementing this Regulation concerning the principles of verification referred to in paragraph 1 as regards the possibility to waive the obligation for the verifier to visit the installation where relevant goods are produced and the obligation to set thresholds for deciding whether misstatements or non-conformities are material and concerning the supporting documentation needed for the verification report. The possibility to waive the obligation for the accredited verifier to visit the installation where relevant goods are produced may only be used in duly justified circumstances where the installation has a well-known standard profile regarding production and technology, allowing for a reliable estimation of embedded emissions. In any case, the CBAM authority shall remain authorised to verify the accuracy of the information provided in the CBAM declaration. The provisions laid down in such delegated acts shall be equivalent to those in Implementing Regulation (EU) 2018/2067.

Amendment 79

Proposal for a regulation

Article 8 — paragraph 3 — subparagraph 2

Text proposed by the Commission Amendment The implementing acts referred to in the first subparagraph shall be adopted in accordance with the examination procedure referred to in Article 29(2). deleted

Amendment 80

Proposal for a regulation

Article 9 — title

Text proposed by the Commission Amendment Carbon price paid in a country of origin Explicit carbon price paid in a country of origin

Amendment 81

Proposal for a regulation

Article 9 — paragraph 1

Text proposed by the Commission Amendment 1. An authorised declarant may claim in its CBAM declaration a reduction in the number of CBAM certificates to be surrendered in order for the carbon price paid in the country of origin for the declared embedded emissions to be taken into account. 1. An authorised declarant may claim in its CBAM declaration a reduction in the number of CBAM certificates to be surrendered in order for the explicit carbon price paid in the country of origin for the declared embedded emissions to be taken into account. That reduction may also be 100 % if the carbon price paid in the country of origin is equivalent to or higher than the Union carbon price.

Amendment 82

Proposal for a regulation

Article 9 — paragraph 2

Text proposed by the Commission Amendment 2. The authorised declarant shall keep records of the documentation, certified by an independent person , required to demonstrate that the declared embedded emissions were subject to a carbon price in the country of origin of the goods and keep evidence of the proof of the actual payment for that carbon price which should not have been subject to an export rebate or any other form of compensation on exportation. 2. The authorised declarant shall keep records of the documentation, certified by an accredited verifier , required to demonstrate that the declared embedded emissions were subject to an explicit carbon price in the country of origin of the goods and keep evidence of the proof of the actual payment for that carbon price which should not have been subject to an export rebate or any other form of direct or indirect compensation on exportation. The name and contact details of the accredited verifier shall appear on the documentation. The authorised declarant shall transmit such documentation to the CBAM authority.

Amendment 83

Proposal for a regulation

Article 9 — paragraph 4

Text proposed by the Commission Amendment 4. The Commission is empowered to adopt implementing acts establishing the methodology for calculating the reduction in the number of CBAM certificates to be surrendered, regarding the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate in accordance with paragraph 1, and regarding the qualifications of the independent person certifying the information as well as elements of proof of the carbon price paid and the absence of export rebates or other forms of compensation on exportation being applied as referred to in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2). 4. The Commission is empowered to adopt implementing acts establishing the methodology for calculating the reduction in the number of CBAM certificates to be surrendered, regarding the conversion of the carbon price paid in foreign currency into euro at yearly average exchange rate in accordance with paragraph 1, and regarding the qualifications of the accredited verifier certifying the information as well as elements of proof of the carbon price paid and the absence of export rebates or other forms of direct and indirect compensation on exportation being applied as referred to in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

Amendment 84

Proposal for a regulation

Article 10 — paragraph 1

Text proposed by the Commission Amendment 1. The Commission shall, upon request by an operator of an installation located in a third country, register the information on that operator and on its installation in a central database referred to in Article 14(4) . 1. The Commission shall, upon request by an operator of an installation located in a third country, register the information on that operator and on its installation in a CBAM registry referred to in Article 14 .

Amendment 85

Proposal for a regulation

Article 10 — paragraph 6

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

Amendment 86

Proposal for a regulation

Article 10 — paragraph 7

Text proposed by the Commission Amendment 7. An operator may disclose the information on the verification of embedded emissions referred to in paragraph 5 to an authorised declarant . The authorised declarant shall be entitled to avail itself of that disclosed information to fulfil the obligation referred to in Article 8. 7. The information on verified embedded emissions referred to in paragraph 5 shall be publicly accessible via the CBAM registry . The authorised declarant shall be entitled to avail itself of that information to fulfil the obligation referred to in Article 8.

Amendment 87

Proposal for a regulation

Chapter III — title

Text proposed by the Commission Amendment Competent authorities The CBAM authority

Amendment 88

Proposal for a regulation

Article 11 — title

Text proposed by the Commission Amendment Competent authorities The CBAM authority

Amendment 89

Proposal for a regulation

Article 11 — paragraph 1 — subparagraph 1

Text proposed by the Commission Amendment Each Member State shall designate the competent authority to carry out the obligations under this Regulation and inform the Commission thereof. The Commission shall establish the CBAM authority to perform the obligations under this Regulation.

Amendment 90

Proposal for a regulation

Article 11 — paragraph 1 — subparagraph 2

Text proposed by the Commission Amendment The Commission shall make available to the Member States a list of all competent authorities and publish this information in the Official Journal of the European Union. deleted

Amendment 91

Proposal for a regulation

Article 11 — paragraph 2

Text proposed by the Commission Amendment 2. Member States shall require that competent authorities exchange any information that is essential or relevant to the exercise of their functions and duties. deleted

Amendment 92

Proposal for a regulation

Article 12

Text proposed by the Commission Amendment Article 12 deleted Commission The Commission shall assist the competent authorities in carrying out their obligations under this Regulation and coordinate their activities.

Amendment 93

Proposal for a regulation

Article 12 a (new)

Text proposed by the Commission Amendment Article 12a Decisions of the CBAM authority 1. The CBAM authority shall, without delay, take decisions in order to implement this Regulation. 2. A decision of the CBAM authority shall take effect from the date of notification of that decision to the addressee. 3. If the CBAM authority considers that it does not have all the necessary information to take a decision, it shall contact the addressee of the decision and specify what additional information is required. In such a case, the addressee of the decision shall, without delay, submit the required additional information to the CBAM authority. 4. The addressee of the decision shall inform the CBAM authority without delay of any changes to the information provided that arise after the decision was taken. In such a case, the CBAM authority shall reassess its decision in light of that information and confirm or modify that decision. 5. Where the CBAM authority proposes to takes a decision which adversely affects the addressee of the decision, it shall set out the grounds on which the proposed decision is based and shall include in the decision a reference to the right of appeal provided for in Article 27a. Before such a decision is taken, the CBAM authority shall give the addressee of the proposed decision the opportunity to make its point of view known to the CBAM authority within a fixed period of time. Following the expiry of that period, the CBAM authority shall notify the addressee of the decision. 6. The CBAM authority may, at any time, annul, revoke or amend its decision following a reasoned request by the addressee of the decision or on its own initiative, if appropriate. 7. The Commission is empowered to adopt delegated acts to supplement this Regulation by specifying further detailed arrangements and procedural rules concerning this Article. Those delegated acts shall be adopted in accordance with Article 28.

Amendment 94

Proposal for a regulation

Article 13 — paragraph 1

Text proposed by the Commission Amendment All information acquired by the competent authority in the course of performing its duty which is by its nature confidential or which is provided on a confidential basis shall be covered by an obligation of professional secrecy. Such information shall not be disclosed by the competent authority without the express permission of the person or authority that provided it. It may be shared with customs authorities, the Commission and the European Public Prosecutors Office and shall be treated in accordance with Council Regulation (EC) No 515/97. All information acquired by the CBAM authority in the course of performing its duty which is by its nature confidential or which is provided on a confidential basis shall be covered by an obligation of professional secrecy. Such information shall not be disclosed by the CBAM authority without the express permission of the person or authority that provided it. It may be shared with customs authorities, the Commission and the European Public Prosecutors Office and shall be treated in accordance with Council Regulation (EC) No 515/97.

Amendment 95

Proposal for a regulation

Article 14

Text proposed by the Commission Amendment Article 14 deleted National registries and central database 1. The competent authority of each Member State shall establish a national registry of declarants authorised in that Member State in the form of a standardised electronic database containing the data regarding the CBAM certificates of those declarants, and to provide for confidentiality in accordance with the conditions set out in Article 13. 2. The database referred to in paragraph 1 shall contain accounts with information about each authorised declarant, in particular: (a) the name and contact details of the authorised declarant; (b) the EORI number of the authorised declarant; (c) the CBAM account number; (d) the number, the price of sale, the date of purchase, the date of surrender, or the date of re-purchase, or that of the cancellation by the competent authority, of CBAM certificates for each authorised declarant. 3. The information in the database referred to in paragraph 2 shall be confidential. 4. The Commission shall establish a central database accessible to the public containing the names, addresses and contact details of the operators and the location of installations in third countries in accordance with Article 10(2). An operator may choose not to have its name, address and contact details accessible to the public.

Amendment 96

Proposal for a regulation

Article 14 a (new)

Text proposed by the Commission Amendment Article 14a CBAM registry 1. The CBAM authority shall set up a CBAM registry to execute processes relating to CBAM certificates, in accordance with Articles 20, 21 and 22. 2. The CBAM registry shall contain an electronic database with information about each authorised declarant, in particular: (a) name and contact details; (b) EORI number; (c) CBAM account number; (d) number, price and date of purchase of CBAM certificates held. 3. The CBAM registry shall also contain, in a separate section of the database, the names and additional details of the operators and of the installations in third countries that are registered in accordance with Article 10. That section of the database shall in particular contain, where applicable, the verified emissions of the installations. 4. The information on the database shall be confidential except for the names of the authorised declarants and operators, the location and, where appropriate, the name of the installations in third countries and their verified emissions, which shall be accessible to the public in an interoperable format. 5. The Commission shall adopt implementing acts concerning the infrastructure and specific processes of the CBAM registry and the electronic databases containing the information referred to in paragraphs 2 and 3. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

Amendment 97

Proposal for a regulation

Article 15

Text proposed by the Commission Amendment Article 15 deleted Central administrator 1. The Commission shall act as central administrator to maintain an independent transaction log recording the purchase of CBAM certificates, their holding, surrender, re-purchase and cancellation and ensure coordination of national registries. 2. The central administrator shall carry out risk-based controls on transactions recorded in national registries through an independent transaction log to ensure that there are no irregularities in the purchase, holding, surrender, re-purchase and cancellation of CBAM certificates. 3. If irregularities are identified as a result of the controls carried out under paragraph 2, the Commission shall inform the Member State or Member States concerned for further investigation in order to correct the identified irregularities.

Amendment 98

Proposal for a regulation

Article 16 — title

Text proposed by the Commission Amendment Accounts in the national registries Accounts in the CBAM registry

Amendment 99

Proposal for a regulation

Article 16 — paragraph 1

Text proposed by the Commission Amendment 1. The competent authority shall assign to each authorised declarant a unique CBAM account number. 1. The CBAM authority shall assign to each authorised declarant a unique CBAM account number.

Amendment 100

Proposal for a regulation

Article 16 — paragraph 2

Text proposed by the Commission Amendment 2. Each authorised declarant shall be granted access to its account in the registry. 2. Each authorised declarant shall be granted access to its account in the CBAM registry.

Amendment 101

Proposal for a regulation

Article 16 — paragraph 3

Text proposed by the Commission Amendment 3. The competent authority shall set up the account as soon as the authorisation referred to in Article 17(1) is granted and notify the authorised declarant thereof. 3. The CBAM authority shall set up the account as soon as the authorisation referred to in Article 17(1) is granted and notify the authorised declarant thereof.

Amendment 102

Proposal for a regulation

Article 16 — paragraph 4

Text proposed by the Commission Amendment 4. If the authorised declarant has ceased its economic activity or its authorisation was revoked, the competent authority shall close the account of that declarant. 4. If the authorised declarant has ceased its economic activity or its authorisation was revoked, the CBAM authority shall close the account of that declarant.

Amendment 103

Proposal for a regulation

Article 17 — paragraph 1 — introductory part

Text proposed by the Commission Amendment 1. The competent authority shall authorise a declarant who submits an application for authorisation in accordance with Article 5(1), if the following conditions are fulfilled: 1. The CBAM authority shall authorise a declarant who submits an application for authorisation in accordance with Article 5(1), if the following conditions are fulfilled:

Amendment 104

Proposal for a regulation

Article 17 — paragraph 2

Text proposed by the Commission Amendment 2. Where the competent authority finds that the conditions listed in paragraph 1 are not fulfilled, or where the applicant has failed to provide the information listed in Article 5(3), the authorisation of the declarant shall be refused. 2. Where the CBAM authority finds that the conditions listed in paragraph 1 are not fulfilled, or where the applicant has failed to provide the information listed in Article 5(3), the authorisation of the declarant shall be refused.

Amendment 105

Proposal for a regulation

Article 17 — paragraph 3

Text proposed by the Commission Amendment 3. If the competent authority refuses to authorise a declarant, the declarant requesting the authorisation may, prior to an appeal, object to the relevant authority under national law, who shall either instruct the national administrator to open the account or uphold the refusal in a reasoned decision, subject to requirements of national law that pursue a legitimate objective compatible with this Regulation and are proportionate. deleted

Amendment 106

Proposal for a regulation

Article 17 — paragraph 4 — introductory part

Text proposed by the Commission Amendment 4. A decision of the competent authority authorising a declarant shall contain the following information 4. A decision of the CBAM authority authorising a declarant shall contain the following information

Amendment 107

Proposal for a regulation

Article 17 — paragraph 6 — subparagraph 1

Text proposed by the Commission Amendment The competent authority shall require the provision of a guarantee in order to authorise a declarant in accordance with paragraph 1, if the declarant was not established throughout the two financial years that precede the year when the application in accordance with Article 5(1) was submitted. The CBAM authority shall require the provision of a guarantee in order to authorise a declarant in accordance with paragraph 1, if the declarant was not established throughout the two financial years that precede the year when the application in accordance with Article 5(1) was submitted.

Amendment 108

Proposal for a regulation

Article 17 — paragraph 6 — subparagraph 2

Text proposed by the Commission Amendment The competent authority shall fix the amount of such guarantee at the maximum amount, as estimated by the competent authority, of the value of the CBAM certificates that the authorised declarant have to surrender, in accordance with Article 22. The CBAM authority shall fix the amount of such guarantee at the maximum amount, as estimated by the CBAM authority, of the value of the CBAM certificates that the authorised declarant have to surrender, in accordance with Article 22.

Amendment 109

Proposal for a regulation

Article 17 — paragraph 7

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

Amendment 110

Proposal for a regulation

Article 17 — paragraph 8

Text proposed by the Commission Amendment 8. The competent authority shall release the guarantee immediately after 31 May of the second year in which the authorised declarant has surrendered CBAM certificates in accordance with Article 22. 8. The CBAM authority shall release the guarantee immediately after 31 May of the second year in which the authorised declarant has surrendered CBAM certificates in accordance with Article 22.

Amendment 111

Proposal for a regulation

Article 17 — paragraph 8 a (new)

Text proposed by the Commission Amendment 8a. The CBAM authority may verify the accuracy and completeness of the information given by the applicant in accordance with Article 5(3) and the existence, authenticity, accuracy and validity of any supporting document. The CBAM authority may carry out such controls at the premises of the applicant.

Amendment 112

Proposal for a regulation

Article 17 — paragraph 9

Text proposed by the Commission Amendment 9. The competent authority shall revoke the authorisation for a declarant who no longer meets the conditions laid down in paragraph 1, or who fails to cooperate with that authority. 9. The CBAM authority shall revoke the authorisation for a declarant who no longer meets the conditions laid down in paragraph 1, or who fails to cooperate with that authority, or who has been found to repeatedly or seriously infringe this Regulation .

Amendment 113

Proposal for a regulation

Article 17 — paragraph 9 a (new)

Text proposed by the Commission Amendment 9a. The Commission shall, by means of implementing acts, adopt the practical arrangements for the application of the criteria referred to in paragraph 1 and for guarantees referred to in paragraph 6. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

Amendment 114

Proposal for a regulation

Article 18 — paragraph 1

Text proposed by the Commission Amendment 1. Any person accredited pursuant to Implementing Regulation (EU) 2018/2067 shall be regarded as an accredited verifier under this Regulation. 1. Any legal person accredited pursuant to Implementing Regulation (EU) 2018/2067 shall be regarded as an accredited verifier under this Regulation.

Amendment 115

Proposal for a regulation

Article 18 — paragraph 2

Text proposed by the Commission Amendment 2. In addition to paragraph 1, a national accreditation body may on request accredit a person as a verifier under this Regulation after checking the documentation attesting its capacity to apply the verification principles referred to Annex V to perform the obligations of control of the embedded emissions established in Articles 8, 10 and 38. deleted

Amendment 116

Proposal for a regulation

Article 18 — paragraph 3

Text proposed by the Commission Amendment 3. The Commission is empowered to adopt delegated acts in accordance with Article 28 for the accreditation referred to in paragraph 2 , specifying conditions for the control and oversight of accredited verifiers, for the withdrawal of accreditation and for mutual recognition and peer evaluation of the accreditation bodies. 3. The Commission is empowered to adopt delegated acts in accordance with Article 28 for the accreditation referred to in paragraph 1 , specifying conditions for the control and oversight of accredited verifiers, for the withdrawal of accreditation and for mutual recognition and peer evaluation of the accreditation bodies.

Amendment 117

Proposal for a regulation

Article 19 — paragraph 1

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

Amendment 118

Proposal for a regulation

Article 19 — paragraph 3

Text proposed by the Commission Amendment 3. Where the competent authority has established that the declared number of CBAM certificates to be surrendered is incorrect, or that no CBAM declaration has been submitted pursuant to paragraph 2, it shall adjust the number of CBAM certificates due by the authorised declarant. The competent authority shall notify the authorised declarant of the adjustment and request that the authorised declarant shall surrender the additional CBAM certificates within one month. 3. Where the CBAM authority has established that the declared number of CBAM certificates to be surrendered is incorrect, or that no CBAM declaration has been submitted pursuant to paragraph 2, it shall adjust the number of CBAM certificates due by the authorised declarant. The CBAM authority shall notify the authorised declarant of the adjustment and request that the authorised declarant shall surrender the additional CBAM certificates within one month.

Amendment 119

Proposal for a regulation

Article 19 — paragraph 4

Text proposed by the Commission Amendment 4. The recipient of the notification referred to in paragraph 3 may lodge an appeal of the notification. The recipient of the notification shall be provided with information regarding the procedure to be followed in the event of an appeal. deleted

Amendment 120

Proposal for a regulation

Article 19 — paragraph 5

Text proposed by the Commission Amendment 5. Where CBAM certificates have been surrendered in excess of the number due, the competent authority shall, without delay, reimburse the authorised declarant the value of CBAM certificates surrendered in excess, calculated at the average price paid for CBAM certificates by the authorised declarant during the year of import . 5. Where CBAM certificates have been surrendered in excess of the number due, the CBAM authority shall, without delay, reimburse the authorised declarant the value of CBAM certificates surrendered in excess, calculated at the average price paid for CBAM certificates by the authorised declarant for those certificates at the time of purchase .

Amendment 121

Proposal for a regulation

Article 20 — paragraph 1

Text proposed by the Commission Amendment 1. The competent authority of each Member State shall sell CBAM certificates to declarants authorised in that Member State at the price calculated in accordance with Article 21. 1. The CBAM authority shall sell CBAM certificates to authorised declarants at the price calculated in accordance with Article 21.

Amendment 122

Proposal for a regulation

Article 20 — paragraph 2

Text proposed by the Commission Amendment 2. The competent authority shall ensure that each CBAM certificate is assigned a unique unit identification code upon its creation and shall register the unique unit identification number, the price and date of sale of the certificate in the national registry in the account of the authorised declarant purchasing it. 2. The CBAM authority shall ensure that each CBAM certificate is assigned a unique unit identification code upon its creation and shall register the unique unit identification number, the price and date of sale of the certificate in the CBAM registry in the account of the authorised declarant purchasing it.

Amendment 123

Proposal for a regulation

Article 21 — paragraph 3

Text proposed by the Commission Amendment 3. The Commission is empowered to adopt implementing acts to further define the methodology to calculate the average price of CBAM certificates and practical arrangements for the publication of the price. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2). 3. The Commission is empowered to adopt implementing acts to implement the methodology , provided for in paragraph 1, to calculate the average price of CBAM certificates and the practical arrangements for the publication of the price. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

Amendment 124

Proposal for a regulation

Article 22 — paragraph 1

Text proposed by the Commission Amendment 1. By 31 May of each year, the authorised declarant shall surrender a number of CBAM certificates to the competent authority that corresponds to the embedded emissions declared in accordance with Article 6(2)(c) and verified in accordance with Article 8 for the calendar year preceding the surrender 1. By 31 May of each year, the authorised declarant shall surrender a number of CBAM certificates to the CBAM authority that corresponds to the embedded emissions calculated in accordance with Annex IIIa and declared in accordance with Article 6(2)(c) and verified in accordance with Article 8 for the calendar year preceding the surrender.

Amendment 125

Proposal for a regulation

Article 22 — paragraph 2

Text proposed by the Commission Amendment 2. For the purposes of parag