Proposal for a COUNCIL REGULATION amending Regulation (EU, Euratom) 2021/768 of 30 April 2021 as regards implementing measures for new own resources of the European Union
Date: 2022-03-14
Institutions: Directorate-General for Budget, European Commission
Subjects: EU Emissions Trading Scheme, EU budget, EU control, budgetary control, carbon neutrality, carry-over of appropriations, financial control, own resources

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   EUROPEAN COMMISSION  Brussels, 14.3.2022  COM(2022) 102 final 2022/0072 (APP)  Proposal for a COUNCIL REGULATION amending Regulation (EU, Euratom) 2021/768 of 30 April 2021 as regards implementing measures for new own resources of the European Union  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  proposal  for  a  Council  Decision  amending  the  Own  Resources  Decision  2020/2053 
adopted  on  22  December  20211  adds  a  three  new  own  resources  to  the  EU  budget.  These 
additional  new  own  resources  will  be  based  on  the  EU  Emissions  Trading  Scheme  for 
greenhouse gas emission allowances, the Carbon Border Adjustment Mechanism, and include 
a national contribution to the EU budget based on the share of residual profits of multinational 
enterprises  as  reallocated  to  Member  States  pursuant  to  the  Council  Directive  on 
implementation of the global agreement on re-allocation of taxing rights the Commission will 
table in the course of 2022.   

The purpose of this proposal is to amend the implementing measures for the system of own 
resources of the European Union provided by Council Regulation (EU, Euratom) 2021/7682. 
This  proposal  adds  the  practical  arrangements,  the  proportionate  and  necessary  control, 
supervison and review measures for the additional new own resources. 

This  proposal  is  complemented,  in  accordance  with  Article  322(2)  of  the  Treaty  on  the 
Functioning of the European Union, by regulations determining the methods and procedure by 
which  own  resources  revenue  is  be  made  available  or  paid  to  the  Commission,  including 
measures to meet cash requirements where necessary.  

The  proposal  includes  the  upgraded  provisions  and  arrangements  necessary  for  controlling 
and supervising the revenues stemming from the new own resources;  

• 

Consistency with existing policy provisions in the policy area 

This  proposal  is  connected  to  the  Making  Available  Regulations,  specifically:  (i)  Council 
Regulation  (EU,  Euratom)  No  609/2014  (for  Traditional  Own  Resources  and  the  Own 
Resources  based  on  Value  Added  Tax  and  Gross  National  Income)3;  and  (ii)  Council 
Regulation  (EU,  Euratom)  No  2021/770  (for  the  new  Own  Resources  based  on  the  Plastic 
packaging waste)4.  

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2 

3 

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Proposal for a Council Decision  amending  Decision (EU,  Euratom) 2020/2053 on the  system of own 
resources of the European Union, COM(2021) 570 final. 
Council Regulation (EU, Euratom) 2021/768 of 30 April 2021 laying down implementing measures for 
the  system  of  own  resources  of  the  European  Union  and  repealing  Regulation  (EU,  Euratom)  No 
608/2014, (OJ L 165, 11.5.2021, p. 1). 
Council  Regulation  (EU,  Euratom)  No  609/2014  of  26  May  2014  on  the  methods  and  procedure  for 
making available the traditional, VAT and GNI-based own resources and on the measures to meet cash 
requirements, OJ L 168, 7.6.2014, p. 39. 
Council Regulation  (EU, Euratom) 2021/770 of 30 April 2021 on the calculation of the own resource 
based  on  plastic  packaging  waste  that  is  not  recycled,  on  the  methods  and  procedure  for  making 
available that own resource, on the measures to meet cash requirements, and on  certain aspects of the 
own resource based on gross national income, (OJ L 165, 11.5.2021, p 15). 

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Finally, it is connected to the Regulation laying down implementing measures for the system 
of Own Resources (the current Regulation (EU, Euratom) No 2021/768 as amended5. 

• 

Consistency with other Union policies 

Given the nature of own resources, their management relies on the correct application of other 
Union policies:  

(1) 

(2) 

(3) 

(4) 

2. 

• 

Traditional Own Resources are linked to the customs union; 

Own resource based on Value Added Tax are linked to the internal market;  

Own resources based on the European Union Emissions Trading System and Carbon 
Border Adjustmenton Mechanism and Plastic packaging waste are linked to policies 
on the environment and climate action; 

Own resource based on reallocated profits will be linked to the internal market once 
transposed into Union law.  

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis of this proposal is the fourth paragraph of Article 311 TFEU; 

• 

Subsidiarity (for non-exclusive competence)  

Not applicable. 

• 

Proportionality 

This  proposal  for  an  amending  Regulation  (EU,  Euratom)  2021/768  adds  the  required 
measures  for  the  new  own  resources.  The  inclusion  of  new  own  resources  in  the  Own 
Resources  Decision  calls  for  updated  legislation  that  includes  implementing  measures  for 
these new own resources and that improves the existing measures. 

• 

Choice of the instrument 

The choice of a Council Regulation is based directly on the fourth paragraph of Article 311 of 
the TFEU that specifically states ‘The Council, acting by means of regulations (…) shall lay 
down implementing measures for the Union’s own resources system’. 

3. 

CONTENT OF THE AMENDMENT 

The Commission  proposal  to  amend the Council Regulation  (EU, Euratom) 2021/768  of 30 
April  2021  laying  down  implementing  measures  for  the  system  of  own  resources  of  the 
European Union may be summarised as follows: 

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Council Regulation (EU, Euratom) 2021/768 of 30 April 2021 laying down implementing measures for 
the system of own resources of the European Union. 

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Chapter  II  'Provisions  concerning  control  and  supervision  and  relevant  reporting 
requirements' 

– 

– 

– 

– 

– 

The  provision  of  Article  2  of  Regulation  (EU,  Euratom)  2021/768  'Control  and 
supervision  measures'  are  updated  in  relation  to  the  new  own  resources  set  up  in 
Article 2(1)(e), (f) and (g) of proposal COM(2021) 570 final.  

As  regards  the  Emissions  Trading  System  own  resources  the  Commission  shall 
undertake a review of data and documents related to the auctioning process in order 
to  verify  the  accuracy  and  completeness  of  the  statement  of  the  Emission  Trading 
System  own resource made  available to  the EU budget.  The Commission may also 
undertake on-the spot-inspection to Member States. 

As  regards  the  Carbon  Border  Adjustment  Mechanism  own  resources  the 
Commission  shall  undertake  checks  and  enquiries  concerning  the  calculation,  the 
making  available  of  the  own  resource,  including  the  controls  on  the  underlying 
processes put in place by the Member States. The Commission may undertake on-the 
spot-inspections to Member States.  

As  regards  the  own  resources  based  on  reallocated  profits,  the  Commisson  shall 
undertake  verifications  to  ensure  that  the  calculations  for  the  own  resource  were 
performed correctly, including check of compliance of the underlying data with the 
reallocation  of  a  share  of  residual  profit  of  multinational  enterprises  allocated  to 
Member States.  

The provision of Article 4 of Regulation (EU, Euratom) 2021/768  ‘Preparation and 
management  of  inspection'  is  extended  and  updated  with  regard  to  the  entities  that 
should provide access to data and assistance to the authorised agent in performing the 
controls  foreseen  for  Emission  Trading  System,  Carbon  Border  Adjustment 
Mechanism  and  the  reallocated  profit-based  own  resource    that  is  applicable  to  all 
own resources. 

– 

The recitals are also amended accordingly  

Final provisions'and entry into force   

The proposal states that the amended Regulation will enter into force at the same time as the 
amended Own Resources Decision, once amended.  

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2022/0072 (APP) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EU, Euratom) 2021/768 of 30 April 2021 as regards implementing 
measures for new own resources of the European Union 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 311, fourth paragraph, thereof, 

Having  regard  to  the  Treaty  establishing  the  European  Atomic  Energy  Community,  and  in 
particular Article 106a thereof, 

Having  regard  to  Council  Decision  (EU,  Euratom)  2020/2053  of  14  December  2020  on  the 
system  of  own  resources  of  the  European  Union  and  repealing  Decision  2014/335/EU, 
Euratom6, and in particular Article 10 thereof,  

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments,  
Having regard to the consent of the European Parliament7, 

Acting in accordance with a special legislative procedure, 

Whereas: 

(1) 

Council  Decision  (EU,  Euratom)  2020/2053,  as  amended  by  Council  Decision 
XX/XX, introduces as new own resources the Emissions Trading System, established 
by Directive 2003/87/EC of the European Parliament and of the Council8, the Carbon 
Border  Adjustment  Mechanism  established  by  Regulation  (EU)  [XXX]  of  the 
European  Parliament  and  of  the  Council9  and  a  share  of  residual  profit  of 
multinational  enterprises  reallocated  to  Member  States  as  set  out  in  [Directive  on 
implementation of the global agreement on re-allocation of taxing rights10]. 

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OJ L 424, 15.12.2020, p.1. 
OJ C , , p. . 
Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a 
scheme  for greenhouse  gas emission allowance trading  within the  Community and amending Council 
Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32). 
Regulation  (EU)  [XXX]  of  the  European  Parliament  and  of  the  Council  establishing  a  carbon  border 
adjustment mechanism (OJ L […], […], p. […]). 
[Directive (EU) XXX on implementation of the global agreement on re-allocation of taxing rights] 

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(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

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12 

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For  the  sake  of  consistency,  it  is  necessary  to  lay  down  implementing  measures 
concerning  control  and  supervision  together  with  relevant  reporting  requirements 
taking  in  consideration  the  controls  and  verifications  performed  by  the  Member 
States also for new own resources. 

As  a  matter  of  efficiency  and  effectiveness,  the  implementing  measures  for  control 
and supervision related to the own resource based on emissions trading should take 
in account the control framework established by the sectorial legislation in particular 
concerning  the  obligations  related  to  the  Emissions  Trading  System  laid  down  in 
Directive 2014/65/EU of the European Parliament and of the Council 11, Regulation 
(EU)  No  600/2014/EU  of  the  European  Parliament  and  of  the  Council12  and 
Commission Regulation (EU) No 1031/201013. 

To  enable  the  implementation  of  control  and  supervision  measures  for  new  own 
resources,  the  Member  States  should  ensure  that  all  entities  involved  in  the  own 
resources processes provide access to the pertinent data and the necessary assistance 
to the authorised agents for carrying out their duties. 

As  a  matter  of  effectiveness,  the  implementing  measures  for  the  control  of  the 
Carbon  Border  Adjustment  Mechanism  should  apply  without  prejudice  to  the 
implementing measures for the verification of traditional own resources referred to in 
Decision (EU, Euratom) 2020/2053.  

The  checks  and  enquiries  conducted  by  Member  States  relating  to  calculating, 
establishing  and  making  available  the  Union’s  own  resources,  and  rules  ensuring 
collaboration between the Member States and the Commission should be extended to 
the new own resources. 

Article 325 of the Treaty on the Functioning of the European Union (TFEU) requires 
the  Union  and  the  Member  States  to  counter  fraud  and  any  other  illegal  activities 
affecting the financial interests of the Union. The transparency of the system of own 
resources of the Union should be ensured by the provision of adequate information 
also on new own resources to the European Parliament and to the Council. 

Reporting arrangements should be extended to new own resources in order to make it 
possible for the Commission to monitor the actions of Member States to recover own 
resources, in particular in cases of fraud and irregularities. 

Directive  2014/65/EU  of  the  European  Parliament  and  of  the  Council  of  15  May  2014 on  markets  in 
financial  instruments  and  amending  Directive  2002/92/EC  and  Directive  2011/61/EU  Text  with  EEA 
relevance, (OJ L 173, 12.6.2014, p. 349). 
Regulation  (EU)  No  600/2014  of  the  European  Parliament  and  of  the  Council  of  15  May  2014  on 
markets in financial instruments and amending Regulation (EU) No 648/2012 (OJ L 173, 12.6.2014, p. 
84). 
Commission  Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and 
other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of 
the  European  Parliament  and  of  the  Council  establishing  a  system  for  greenhouse  gas  emission 
allowances trading within the Union (OJ L 302, 18.11.2010, p. 1). 

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(9) 

Council  Regulation  (EU, Euratom)  2021/76814  should  therefore  be  amended 
accordingly.  For  reasons  of  consistency,  this  Regulation  should  enter  into  force  on 
the same day as Council Decision 20xx/xxxx/EU, Euratom amending Decision (EU, 
Euratom) 2020/2053 and should apply from 1 January 2023. Article 6c should apply 
from  the  date  of  application  of  the  [Directive  on  implementation  of  the  global 
agreement  on  re-allocation  of  taxing  rights]  or  the  day  of  the  entry  into  force  and 
effect of the Multilateral Convention, whichever is the later,  

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EU, Euratom) 2021/768 is amended as follows: 

(1) 

(a) 

Article 2 is amended as follows: 

paragraph 1 is replaced by the following:     

“1. 
The own  resources  referred to  in  Article 2(1) of  Decision (EU, Euratom) 2020/2053 
shall  be  inspected  as  specified  in  this  Regulation,  without  prejudice  to  Regulation  (EEC, 
Euratom)  No  1553/89,  Regulation  (EU)  2019/516  of  the  European  Parliament  and  of  the 
Council*,  Regulation  (EU)  No  600/2014  of  the  European  Parliament  and  of  the  Council** 
and Directive 2014/65/EU of the European Parliament and of the Council***. 

______________________ 

* 

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*** 

Regulation  (EU)  2019/516  of  the  European  Parliament  and  of  the  Council  of  19  March  2019  on  the 
harmonisation of gross national income at market prices and repealing Council Directive 89/130/EEC, 
Euratom and Council Regulation (EC, Euratom) No 1287/2003 (GNI Regulation) (OJ L 91, 29.3.2019, 
p. 19). 
Regulation  (EU)  No  600/2014  of  the  European  Parliament  and  of  the  Council  of  15  May  2014  on 
markets in financial instruments and amending Regulation (EU) No 648/2012 (OJ L 173 12.6.2014, p. 
84). 

Directive  2014/65/EU  of  the  European  Parliament  and  of  the  Council  of  15  May  2014 on  markets  in 
financial  instruments  and  amending  Directive  2002/92/EC  and  Directive  2011/61/EU  (OJ  L  173, 
12.6.2014, p. 349).”; 

(b) 

the following paragraphs 6a, 6b and 6c are inserted: 

“6a.  Where  control  and  supervision  measures  concern  the  own  resource  based  on  the 
Emissions  Trading  System  referred  to  in  Article  2(1)  point  (e),  of  Decision  (EU,  Euratom) 
2020/2053: 

(a) 

the Commission shall have access to all data of the auctioning process required 
to  calculate  the  Emission  Trading  System  based  own  resource,  including  the 
data referred to the Commission Regulation (EU) No 1031/2010*; 

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Council Regulation (EU, Euratom) 2021/768 of 30 April 2021 laying down implementing measures for 
the  system  of  own  resources  of  the  European  Union  and  repealing  Regulation  (EU,  Euratom)  No 
608/2014 (OJ L 165, 11.5.2021, p. 1). 

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(b) 

the  Commission  shall  have  access  to  the  documentation  related  to  the  annual 
amount  of  allowances,  in  respect  of  which  the  relevant  Member  State  makes 
use  of  any  of  the  following  options,  with  the  average  weighted  price  of 
allowances  auctioned  on  the  common  auction  platform  in  the  year  in  which 
those allowances would have been auctioned: 

– 

– 

– 

for  transitional  free  allocation  referred  to  in  Article  10c  of  Directive 
2003/87/EC of the European Parliament and of the Council**; 

the  possibility  of  limited  cancellation  referred  to  in  Article  6(1)  of 
Regulation  (EU)  2018/842  of  the  European  Parliament  and  of  the 
Council***; 

the  use  of  allowances  referred  to  in  Article  10d(4)  of  Directive 
2003/87/EC  to  auctioning  for  the  Modernisation  Fund  referred  to  in 
Article 10d(3) of that Directive. 

(c) 

the  Commission  may  itself  carry  out  on-the-spot  inspections.  Member  States 
shall facilitate those inspections. 

As  a  review  measure,  the  Commission  shall  make  sure  that  the  calculations  referred  to  in 
Article 2(1), point (e) of Decision (EU, Euratom) 2020/2053 are based on correct data. That 
shall  include  a  check  of  compliance  of  the  underlying  data  with  Regulation  (EU)  No 
1031/2010. 

6b.  Where  control  and  supervision  measures  concern  the  own  resource  based  on  Carbon 
Border  Adjustment  Mechanism  referred  to  in  Article  2(1),  point  (f),  of  Decision  (EU, 
Euratom) 2020/2053: 

(a)  Member  States  shall  conduct  the  checks  and  enquiries  concerning  the 
calculation  and  the  making  available  of  the  own  resource  in  accordance  with 
Regulation (EU) [XXX] of the European Parliament and of the Council****; 

(b) 

the  Commission  may  itself  carry  out  on-the-spot  inspections.  The  agents 
authorised  by  the  Commission  for  the  purpose  of  such  inspections  shall  have 
access to documents as set out for the reviews referred to in paragraph 6a, point 
(b). Member States shall facilitate those inspections; 

The Commission shall have access, in so far as the application of  Regulation  [XXX] of the 
European  Parliament  and  of  the  Council  establishing  a  Carbon  Border  Adjustment 
Mechanism so requires, to the supporting documents concerning the making available of the 
own resources. 

During  the  inspection  referred  to  in  the  first  subparagraph,  point  (b),  of  this  paragraph,  the 
Commission shall make sure in particular, that the processes and controls put in place by the 
Member  States  to  verify,  and  aggregate  the  amounts  are  adequate  and  compliant  with 
Regulation  [XXX]  of  the  European  Parliament  and  of  the  Council  establishing  a  carbon 
border adjustment mechanism.  

The Commission shall make sure that the calculations made to determine the amount of the 
own resource referred to in Article 2(1), point (f) of Decision (EU, Euratom) 2020/2053 were 
made  correctly.  That  shall  include  a  check  of  compliance  of  the  underlying  data  with 
Regulation  [XXX]  of  the  European  Parliament  and  of  the  Council  establishing  a  carbon 
border adjustment mechanism. 

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6c. Where control and supervision measures concern the own resource based on the share of 
residual profit of multinational enterprises reallocated to Member States referred to in Article 
2(1), point (g), of Decision (EU, Euratom) 2020/2053: 

(a) 

the Commission shall have access to the supporting documentation used by the 
Member  States  concerning  the  establishment  and  the  making  available  of  the 
own resource;  

(b) 

the Commission’s verifications shall be carried out together with the competent 
authorities of the Member State concerned.  

During those verifications, the Commission shall make sure that the calculations for the own 
resource  referred  to  in  Article  2(1),  point  (g)  of  Decision  (EU,  Euratom)  2020/2053  were 
performed correctly. That shall include a check of compliance of the underlying data with the 
reallocation  of  a  share  of  residual  profit  of  multinational  enterprises  allocated  to  Member 
States. 

______________________ 

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*** 

**** 

Commission  Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and 
other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of 
the  European  Parliament  and  of  the  Council  establishing  a  system  for  greenhouse  gas  emission 
allowances trading within the Union (OJ L 302 18.11.2010, p. 1). 
Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a 
scheme  for greenhouse  gas emission allowance trading  within the  Community and amending Council 
Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32). 
Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding 
annual  greenhouse  gas  emission  reductions  by  Member  States  from  2021  to  2030  contributing  to 
climate  action  to  meet  commitments  under  the  Paris  Agreement  and  amending  Regulation  (EU)  No 
525/2013 (OJ L 156, 19.6.2018, p. 26). 
Regulation  (EU)  [XXX]  of  the  European  Parliament  and  of  the  Council  on  the  carbon  border 
adjustment mechanism.”; 

(c) 

paragraph 7 is replaced by the following:  

“7. The control, supervision and review measures referred to in this Article shall be without 
prejudice to the following: 

(a) 

(b) 

(c) 

the inspections carried out by Member States in accordance with their national 
laws, regulations or administrative provisions; 

the  measures  provided  for  in  Articles  287  and  319  of  the  Treaty  on  the 
Functioning of the European Union (TFEU); 

the  measures  provided  for  in  Article  325  TFEU  and  as  further  specified  in 
relevant Union measures; 

(d) 

the inspection arrangements made pursuant to Article 322(1),point (b), TFEU; 

(e)  Articles 53 and 79 of Directive 2014/65/EU; 

(f) 

the  obligations  in  Regulation  (EU)  No  600/2014  with  regard  to  regulatory 
technical  standards  on  transparency  requirements  for  trading  venues  and 
investment  firms  in  respect  of  bonds,  structured  finance  products,  emission 
allowances and derivatives; 

(g)  Articles 14 and  15 of Directive 2003/87/EC;  

(h)  Regulation (EU) No 596/2014 of the European Parliament and of the Council*;  

(i)  Regulation  (EU)  No  648/2012  of  the  European  Parliament  and  of  the 

Council**;  

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(j)  Regulation  (EU)  No  909/2014  of  the  European  Parliament  and  of  the 

Council***.  

_________________________ 

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** 

*** 

Regulation  (EU)  No 596/2014  of  the  European  Parliament  and  of  the  Council  of  16 April  2014  on 
market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament 
and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ L 173 
12.6.2014, p. 1). 
Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC 
derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p. 1). 
Regulation  (EU)  No  909/2014  of  the  European  Parliament  and  of  the  Council  of  23  July  2014  on 
improving  securities  settlement  in  the  European  Union  and  on  central  securities  depositories  and 
amending  Directives  98/26/EC  and  2014/65/EU  and  Regulation  (EU)  No  236/2012  (OJ  L  257, 
28.8.2014, p. 1).”; 

(d) 

paragraph 8 is replaced by the following:  

“8.  For  the  purposes  of  the  control  and  supervision  measures  under  paragraphs  3  to  6c,  the 
Commission may request the Member States to send relevant documents or reports relating to 
the systems used to collect own resources or to make such documents or reports available to 
the Commission.”; 

(2) 

in Article 4(6), the second subparagraph is replaced by the following:   

“The results and observations referred to in the first subparagraph, together with the summary 
report prepared in connection with controls on the own resources referred  to in Article 2(1), 
points  (b),  (c)  (f)  and  (g)  of  Decision  (EU,  Euratom  2020/2053),  shall  be  brought  to  the 
attention of all Member States.”. 

Article 2  

This  Regulation  shall  enter  into  force  on  the  day  of  entry  into  force  of  Decision 
20xx/xxxx/EU, Euratom amending Decision (EU, Euratom) 2020/2053. It shall apply from 1 
January 2023.  

However,  Article  6c  shall  apply  from  the  date  of  application  of  the  [Directive  on 
implementation  of  the  global  agreement  on  re-allocation  of  taxing  rights]  or  the  day  of  the 
entry into force and effect of the Multilateral Convention, whichever is the later. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s)  

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management mode(s) planned  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

3.2.  Estimated impact on expenditure   

3.2.1. Estimated impact on operational appropriations  

3.2.2. Estimated impact on appropriations of an administrative nature 

3.2.3. Compatibility with the current multiannual financial framework  

3.3.  Estimated impact on revenue

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Council  Regulation  on  the  methods  and  procedure  for  making  available  the  own 
resources based on the emissions trading system, the carbon border adjustment and 
reallocated profits and on the measures to meet cash requirements 

Council  Regulation  amending  Regulation  (EU,  Euratom)  No  2021/768  of  30  April 
2021  as  regards  implementing  measures  for  new  own  resources  of  the  European 
Union 

1.2. 

Policy area(s) concerned  

EU budget revenue  

1.3. 

Nature of the proposal/initiative  

 a new action  

 a new action following a pilot project/preparatory action15  

 the extension of an existing action  

 a merger or redirection of one or more actions towards another/a new action  

1.4. 

Objective(s) 

1.4.1.  General objective(s) 

These proposals follows-up on the European Council Conclusions of July 2020 and 
the  interinstitutional  agreement  of  December  202016  on  a  roadmap  to  introduce 
sufficient  new  own  resources  with  a  view  to  covering  an  amount  corresponding  to 
the expected expenditure related to the repayment of the European Union Recovery 
Instrument.  The proposal  is  linked to  the  proposal  COM(2021) 570 final  amending 
the Own Resources Decision, adopted on 22 December 2021. 

The proposal will also further embed EU policy priorities in the revenue side of the 
EU budget. 

1.4.2. 

Specific objective(s)  

The proposal COM(2021) 570 final seeks to introduce three new own resources:  

(1)  A  new  own  resource  based  on  the  Emissions  Trading  System  covering  its 
extension maritime and an increased auctioning of allowances in aviation and on the 
new Emissions Trading System covering road transport and building; 

15 
16 

As referred to in Article 58(2)(a) or (b) of the Financial Regulation. 
Interinstitutional  agreement  of  16  December  2020  between  the  European  Parliament,  the  Council  and  the 
Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as 
well  as  on  new  own  resources,  including  a  roadmap  for  the  introduction  of  new  own  resources,  OJ  L  433I, 
22.12.2020, p. 28. 

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(2)  A new own resource based on a carbon border adjustment mechanism; 

(3)  A  new  own  resource  based  on  a  share  of  profits  of  multinational  enterprises 
that are reallocated to EU Member States in the context of the global agreement on 
international taxation (‘OECD/G20 IF Pillar 1’). 

New  own  resources  will  further  align  the  revenue  side  of  the  EU  budget  with  the 
Union’s  policy  priorities.  Firstly,  emissions  know  no  borders,  hence  warranting 
Union  action,  and  therefore  an  appropriate  base  for  EU  own  resources.  Emissions 
trading  and  a  Carbon  Border  Adjustment  Mechanism  are  EU-wide  instruments 
serving the common objective to reduce greenhouse gas emissions at the least cost, 
by  capping  emissions  and  providing  a  carbon  price  signal.  Secondly,  the  global 
agreement  on  the  reallocation  of  taxing  rights  will  be  implemented  in  the  EU 
respecting the specificities of the Single Market. As a result, this too will constitute a 
European base for an own resource. 

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1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

New own resources should ensure that the expenditure from the Union budget related 
to  the  repayment  of  the  European  Union  Recovery  Instrument  will  not  lead  to  an 
undue  reduction  in  programme  expenditure  or  investment  instruments  under  the 
multiannual  financial  framework.  At  the  same  time,  they  will  also  mitigate  the 
increases in the gross national income-based own resource for the Member States.  

1.4.4. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

This  proposal  should  provide  the  framework  for  a  timely  and  correct  making 
available to the EU budget of revenues from emissions trading and the carbon border 
adjustment mechanism. It will also include the making available of the own resource 
based on the share of residual profits of the largest and most profitable multinational 
enterprises, reallocated to EU Member States. 

1.5. 

Grounds for the proposal/initiative  

1.5.1. 

1.5.1. Requirement(s)  to  be  met  in  the  short  or  long  term  including  a  detailed 
timeline for roll-out of the implementation of the initiative 

The rules for making  available to  the EU budget should be  agreed upon  in  time in 
order to ensure the timely implementation of the new Own Resources basket. 

The  interinsitutional  agreement  included  a  detailed  timeline  for  the  introduction  of 
new  own  resources.  The  Commission  committed  to  make  proposals  on  new  own 
resource by 2021 with a view of their introduction in 2023.  

1.5.2.  Added value of EU involvement 

At the outset of the unprecedented COVID-19 crisis,  the Commission presented an 
ambitious, innovative and exceptional recovery plan to set the Union on the path to a 
sustainable  and  resilient  recovery.  The  European  Union  Recovery  Instrument 
(NextGenerationEU), which was formally approved by the European Parliament and 
the Council on 14 December 2020, mobilises up to EUR 750 billion  to address the 
economic and social damage brought about by the pandemic. Together with the EU’s 
long-term  budget,  the  multiannual  financial  framework,  a  total  of  EUR  1.8  trillion 
are  helping  rebuild  a  post-COVID-19  Europe.  New  own  resources  will  ensure  the 
credibility and sustainability of the European Union Recovery Instrument repayment 
plan. 

1.5.3.  Lessons learned from similar experiences in the past 

These  proposals  are  connected  to  the  amendment  of  the  Own  Resources  Decision. 
Together they clarify the interaction between the Own Resources provisions and the 
legislative acts on emissions trading and the Carbon Border Adjustment Mechanism 
and  the  future  legislative  act  on  implementation  of  the  global  agreement  on  re-
allocation of taxing rights.  

1.5.4.  Compatibility  with  the  Multiannual  Financial  Framework  and  possible  synergies 

with other appropriate instruments 

These  proposals  are  connected  to  the  revision  of  the  Multiannual  Financial 
Framework  Regulation  with  the  aim  of  increasing  the  MFF  ceilings  for  the 

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expenditure of the Social Climate Fund and creating an automatic annual adjustment 
repayment  of 
mechanism 
NextGenerationEU under the current Multiannual Financial Framework. 

for  new  own 

to  support 

to  allow 

resources 

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

Not applicable. 

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1.6. 

Duration and financial impact  

 Proposal/initiative of limited duration  

–    Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–    Financial impact from YYYY to YYYY  

 Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from 1/1/2021 to 31/12/2022, 

–  followed by full-scale operation from 1/1/2023. 

1.7.  Management mode(s) planned  

 Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated; 

–   international organisations and their agencies (to be specified); 

–  the EIB and the European Investment Fund; 

–   bodies referred to in Articles 208 and 209 of the Financial Regulation; 

–   public law bodies; 

–   bodies governed by private law with a public service mission to the extent that 

they provide adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  provide  adequate 
financial guarantees; 

–    persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

– 

If more than one management mode is indicated, please provide details in the ‘Comments’ section. 

Comments  

Not applicable

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

The provisions for the monitoring and reporting in relation to making available own 
resource as based on emissions trading, the carbon border adjustment mechanism and 
a  contribution  based  on  residual  profits  of  the  largest  and  most  profitable 
multinational  enterprises,  reallocated  to  EU  Member  States  can  be  found  in  the 
proposal  COM(2022)  …..  for  a  Council  Regulation  amending  Regulation  (EU, 
Euratom) No 2021/768 of 30 April 2021 as regards implementing measures for new 
own resources of the European Union. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

The  main  potential  risks  include:  the  incorrect  establishment  of  the  new  own 
resources,  the  incorrect  entry  in  the  accounts,  the  late  making  available  of  the 
resource, and accounting errors. 

2.2.2. 

Information concerning the internal control system set up 

Control  methods  are  envisaged  in  the  proposal  which  also  includes  specific 
provisions concerning control and supervision and relevant reporting requirements. 

2.2.3.  Estimate of the costs and benefits of the controls and assessment of the expected level 

of risk of error  

The  financial  interests  of  the  Union  should  be  protected  through  proportionate 
measures, 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 implemented by the national authorities and by 
the European Commission Services. 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

Provisions on control and supervision for the calculation on the new own resources 
are included in COM(2022) ….. for a Council Regulation amending Regulation (EU, 
Euratom) No 2021/768 of 30 April 2021 as regards implementing measures for new 
own  resources  of  the  European  Union  and  relevant  sectorial  legislation  for  each  of 
the new proposed own resources 

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3.  

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Heading of 
multiannual 
financial 
framework 

Number  

Type of  
expenditure 

Diff./Non-
diff.17 

Contribution  

from 
EFTA 
countries
18 

from 
candidate 
countries19 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
the Financial 
Regulation  

7 

20 01 02 01 

Non-diff. 

NO 

NO 

NO 

NO 

17 
18 
19 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

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3.2.  

Estimated financial impact of the proposal on appropriations  

3.2.1 

Summary of estimated impact on operational appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–    The proposal/initiative requires the use of operational appropriations, as explained below: 

Heading of multiannual financial  
framework  

7 

‘Administrative expenditure’ 

DG: BUDG 

 Human resources  
 Other administrative expenditure  

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

EUR million (to three decimal places) 

0,157 

0,471 

0,628 

0,785 

1,57 

3,611 

TOTAL DG BUDG 

Appropriations  

0,157 

0,471 

0,628 

0,785 

1,57 

3,611 

DG: CLIMA 

 Human resources  

 Other administrative expenditure  

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

0,157 

0,157 

0,157 

0,157 

0,157 

0,785 

TOTAL DG CLIMA 

Appropriations  

0,157 

0,157 

0,157 

0,157 

0,157 

0,785 

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DG: TAXUD 

 Human resources  
 Other administrative expenditure  

TOTAL DG TAXUD 

Appropriations  

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

0 

0 

0,043 

0,043 

0,043 

0,043 

0,043 

0,043 

0,043 

0,043 

0,17 

0,17 

TOTAL appropriations 
under HEADING 7 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

0,314 

0,672 

0,829 

0,986 

1,177 

4,572 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

EUR million (to three decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 7 
of the multiannual financial framework  

Commitments 

Payments 

0,314 

0,314 

0,672 

0,672 

0,829 

0,986 

0,829 

0,986 

1,177 

1,177 

4,572 

4,572 

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3.2.2 

Summary of estimated impact on administrative appropriations  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–    The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

HEADING 7 
of the multiannual 
financial framework 

Human resources  

0,314 

0,672 

0,829 

0,986 

1,177 

4,572 

0,314 

0,672 

0,829 

0,986 

1,177 

4,572 

Other administrative 
expenditure  

Subtotal HEADING 7 
of the multiannual 
financial framework  

Outside HEADING 720 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 7 
of the multiannual 
financial framework  

TOTAL 

0,314 

0,672 

0,829 

0,986 

1,177 

4,572 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 
appropriations from the DG that are already assigned to management of the action and/or have  been redeployed within the 
DG,  together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the  managing  DG  under  the  annual 
allocation procedure and in the light of budgetary constraints. 

20 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU programmes 
and/or actions (former ‘BA’ lines), indirect research, direct research. 

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3.2.2.1  Estimated requirements of human resources  

–    The proposal/initiative does not require the use of human resources.  

–    The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

 Establishment plan posts (officials and temporary staff) 

20 01 02 01 (Headquarters and Commission’s Representation 
Offices) 

20 01 02 03 (Delegations) 

01 01 01 01  (Indirect research) 

 01 01 01 11 (Direct research) 

Other budget lines (specify) 

 External staff (in Full Time Equivalent unit: FTE)21 

20 02 01 (AC, END, INT from the ‘global envelope’) 

20 02 03 (AC, AL, END, INT and JPD in the delegations) 

XX 01  xx yy zz  22 

- at Headquarters 

- in Delegations  

01 01 01 02 (AC, END, INT - Indirect research) 

 01 01 01 12 (AC, END, INT - Direct research) 

Other budget lines (specify) 

TOTAL 

Estimate to be expressed in full time equivalent units 

Year 
2023 

Year 
2024 

Year  
2025 

Year 
 2026 

Year  

2027 

2 

4 

5 

6 

11 

0,5 

0,5 

0,5 

0,5 

2 

4,5 

5,5 

6,5 

11,5 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to management of the 
action  and/or  have  been  redeployed  within  the  DG,  together  if  necessary  with  any  additional  allocation  which 
may  be  granted  to  the  managing  DG  under  the  annual  allocation  procedure  and  in  the  light  of  budgetary 
constraints. 

Description of tasks to be carried out: 

Officials and temporary staff 

The new own resources require additional staff for the purpose of forecast, inspection 
and budgeting in DG BUDG, and an additional post for DG CLIMA implementation 
and preparation. 

External staff 

For the purpose of control, additional staff is also needed in DG TAXUD. 

21 

22 

AC=  Contract  Staff;  AL  =  Local  Staff;  END=  Seconded  National  Expert;  INT  =  agency  staff; 
JPD= Junior Professionals in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

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3.2.3.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

–    can be fully financed through redeployment within the relevant heading of the 

Multiannual Financial Framework (MFF). 

–    requires use of the unallocated margin under the relevant heading of the MFF 

and/or use of the special instruments as defined in the MFF Regulation. 

–    requires a revision of the MFF. Third-party contributions  

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3.3. 

Estimated impact on revenue  

–    The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

 

 

 

on own resources  

on other revenue 

please indicate, if the revenue is assigned to expenditure lines 

     EUR billion (2018 prices) 

Appropriation
s available for 
the current 
financial year 

Impact of the proposal/initiative23 

Year 
2023 

4.2 

- 

- 

Year 
2024 

3.0 

- 

- 

Year 
2025 

3.6 

- 

Year 
2026 

13.1 

- 

Year 
2027 

14.4 

- 

2.5-4.0 

2.5-4.0 

Budget 
line: 

revenue 

ETS  based  Own 
Resource 

CBAM 
Own Resource 

based 

OECD/G20  Pillar 
One  based  Own 
Resource 

For assigned revenue, specify the budget expenditure line(s) affected. 

Not applicable. 

Other  remarks  (e.g.  method/formula  used  for  calculating  the  impact  on  revenue  or  any  other 
information). 

No  own  resources  might  have  an  impact  on  the  GNI  contribution.  Calculations  are 
consistent with the sectoral impact assessments, when applicable. 

23 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 20 % for collection costs. 

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