Amended proposal for a COUNCIL DECISION amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union
Date: 2023-06-20
Institutions: Directorate-General for Budget, European Commission
Subjects: EU Emissions Trading Scheme, EU budget, carbon neutrality, coronavirus disease, economic recovery, epidemic, own resources

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   EUROPEAN COMMISSION  Brussels, 23.6.2023  COM(2023) 331 final/2 2021/0430 (CNS)  This document corrects COM(2023) 331 final Concerns the EN version only Adjustment of the interinstitutional acronym Amended proposal for a COUNCIL DECISION amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union {SWD(2023) 331 final}  
 
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

In 2020, the European Parliament, the Council and the Commission agreed on a roadmap for 
the introduction of new own resources taking account NextGenerationEU1. According to this 
agreement, “the expenditure from the Union budget related to the repayment of the European 
Union Recovery Instrument should not lead to an undue reduction in programme expenditure 
or investment instruments under the MFF. It is also desirable to mitigate the increases in the 
GNI-based own resource for the Member States”. Hence “the Institutions will work towards 
introducing sufficient new own resources with a view to covering an amount corresponding to 
the  expected  expenditure  related  to  the  repayment.  In  accordance  with  the  principle  of 
universality,  this  would  not  imply  an  earmarking  or  assignment  of  any  particular  own 
resource to cover a specific type of expenditure”. 

In  December  2021,  the  Commission  proposed  three  new  sources  of  revenues  for  the  EU 
budget2 with  contributions  from  the Emissions Trading System  (ETS), from  the EU Carbon 
Border Adjustment Mechanism (CBAM) and from a share of the residual profits of the largest 
multinational  enterprises that would be reallocated to  the EU under the  OECD/G20 Pillar 1 
agreement.  This  basket  of  own  resources  was  consistent  with  the  proposed  sectorial 
legislation  on  both  the  revised  ETS  Directive  and  on  the  Carbon  Border  Adjustment 
Mechanism proposed earlier in the same year.  

In addition, the Commission committed to come forward with further proposals for new own 
resources by the end of 2023 that includes a contribution linked to the corporate sector. The 
package  aims  at  generating 
repayment  of 
NextGenerationEU  borrowing  amidst  uncertainties  related  to  the  development  of  funding 
costs,  in  line  with  the  Inter  Institutional  Agreement.  The  Commission  therefore  proposes  a 
new own resource based on statistics on company profits.  

sufficient 

revenues 

support 

the 

to 

2. 

2.1. 

CONTENT OF THE AMENDING PROPOSAL 

Emission Trading System-based own resource 

The agreement on sectorial legislation requires some adjustment to the own resource proposal. 
As  the  Social  Climate  Fund  will  initially  be  financed  with  external  assigned  revenues  as  of 
2026,  the  Commission  proposes  to  postpone  the  introduction  of  the  own  resource  from  the 
new emissions trading system covering buildings, road transport and additional sectors from 
2027 to 20283. Moreover, Member States applying a national carbon tax  may opt to exempt 
relevant  emissions  from  the  new  ETS.  The  Member  States  concerned  will  be  required  to 

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Interinstitutional  Agreement  between  the  European  Parliament,  the  Council  of  the  European  Union  and  the 
European  Commission  on  budgetary  discipline,  on  cooperation  in  budgetary  matters  and  on  sound  financial 
management, as well as on new own resources, including a roadmap towards the introduction of new own resources 
(OJ L 433I , 22.12.2020, p. 28–46). For the own ressourses see also Council Decision (EU, Euratom) 2020/2053 of 
14 December 2020 on the system of own resources of the European Union, OJ L 424, 15.12.2020, p.1. 
Council  Decision  (EU,  Euratom)  2020/2053  of  14  December  2020  on  the  system  of  own  resources  of  the 
European Union (OJ L 424, 15.12.2020, p.1). 
Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a 
system  for  greenhouse  gas  emission  allowance  trading  within  the  Union  and  amending  Council 
Directive 96/61/EC (OJ L 275 25.10.2003, p. 32). 

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cancel the relevant allowances. The Commission therefore proposes to include this option in 
the valuation mechanism allowing the valuation of allowances which are not auctioned.   

In contrast to expectations prevailing at the time of the Fit-For-55 proposals, the market value 
of  ETS  allowances  has  increased  significantly  in  the  months  following  those  proposals.  In 
2022, allowance auctions cleared on average close to EUR 80 by far exceeding the price level 
of EUR 55 used by the Commission in its Impact Assessment. The Commission proposes to 
apply  a  higher  call  rate  to  the  ETS-revenues  generated.  In  all  cases,  30%  of  the  revenues 
generated by EU emissions trading will accrue to the EU Budget. With such a call rate, the 
revenues for both Member States and the EU budget  will  still be higher as compared to the 
expectations of 2021 when the proposal for amending the ETS was tabled.  

2.2. 

Own resource based on the Carbon Border Adjustment Mechanism   

The  proposal  of  December  2021  remains  largely  unchanged,  with  the  exception  of  limited 
adaptations reflecting the recent entry into force of the CBAM Regulation.   

2.3. 

Statistical Own Resource based on company profits 

The implementation of the OECD/G20 Pillar 1 agreement remains an essential priority in the 
area of corporate taxation for the EU and its Member States. Substantive progress  has been 
made  following  the  October  2021  agreement  and  the  Commission  will  continue  to  promote 
efforts to help finalise the discussions. However, the multilateral convention has not yet been 
signed and ratified, which means that it cannot yet enter into force.  
As announced in the Commission Work Programme4, the Commission intends to propose its 
Business  in  Europe:  Framework  for  Income  Taxation  (BEFIT)  in  the  third  quarter  of  2023 
which will improve the functioning of the Single Market. Until the possible establishment of 
an own resource based on a underlying tax proposal, the Commission is proposing a statistical 
own  resource  based  on  national  accounts  statistics,  prepared  under  the  European  system  of 
accounts (ESA). This own resource will be defined by multiplying a call rate of 0.5% to the 
sum  of  gross  operating  surplus  recorded  for  the  sectors  of  non-financial  and  financial 
corporations  in  national  accounts.  ESA  is  already  a  harmonised  framework  of  statistics  and 
the statistical own resource on company profits will help to further improve the comparability 
of data.  

3. 

LEGAL BASIS  

3.1. 

 Own Resources Decision  

Pursuant to Article 311(3) of the Treaty on the Functioning of the European Union (TFEU), 
the Council, after consulting the European Parliament ‘may establish new categories of own 
resources or abolish an existing category’. This provision explicitly allows for amending the 
Own  Resources  Decision  to  add  new  own  resources  as  agreed  in  the  Interinstitutional 
Agreement.  In  accordance  with  the  special  legislative  procedure  set  out  in  Article  311(3) 
TFEU,  the  Council  adopts  the  revised  decision  by  unanimity  after  consulting  the  European 
Parliament.  The  decision  will  enter  into  force  once  it  is  approved  by  the  Member  States  in 
accordance with their constitutional requirements.  

3.2. 

Implementing legislation  

In  parallel,  the  Council  needs  to  amend  the  implementing  measures  related  to  the  own 
resources  system  adjusting  the  rules  to  reflect  the  recent  agreement  on  the  Carbon  Border 

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Commission Work Programme 2023. A Union standing firm and united. COM(2022)548. 

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Adjustment  Mechanism  and  to  add  provisions  covering  the  statistical  own  resource. 
Additionally, the Council needs to amend the making available provisions. The Commission 
submits two separate proposals to that effect.  

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2021/0430 (CNS) 

Amended proposal for a 

COUNCIL DECISION 

amending Decision (EU, Euratom) 2020/2053 on the system of 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, third paragraph thereof, 

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

Acting in accordance with a special legislative procedure,  

Whereas: 

(1) 

(2) 

NextGenerationEU, established by Council Regulation (EU) 2020/20945, will deploy 
EUR 750 billion in 2018 prices, raised on financial markets as a temporary recovery 
instrument  to  ensure  a  sustainable  and  resilient  recovery  throughout  the  Union  and 
facilitate the implementation of economic support in the exceptional situation caused 
the COVID-19 pandemic, and promote the green and digital transition.  

The  repayment  of  the  principal  of  such  funds  to  be  used  for  expenditure  under  the 
European  Union  Recovery  Instrument  and  the  related  interest  due  will  have  to  be 
financed  by  the  general  budget  of  the  Union,  including  by  sufficient  proceeds  from 
new  own  resources  introduced  after  2021.  In  the  framework  of  the  Interinstitutional 
Agreement  of  16  December  20206,  the  European  Parliament,  the  Council  and  the 
Commission  recognised  the  importance  of  the  context  of  the  European  Union 
Recovery  Instrument  and  acknolwedged  that  ‘expenditure  from  the  Union  budget 
related to the repayment of the European Union Recovery Instrument should not lead 
to an undue reduction in programme expenditure or investment instruments under the 
MFF’. The Interinstitutional Agreement also stated that ‘it is also desirable to mitigate 
the increases in the GNI-based own resource for the Member States’.  

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Council  Regulation  (EU)  2020/2094  of  14  December  2020  establishing  a  European  Union  Recovery 
Instrument to support the recovery in the aftermath of the COVID-19 crisis (OJ L 433I, 22.12.2020, p. 
23). 
Interinstitutional  Agreement  between  the  European  Parliament,  the  Council  and  the  European 
Commission of 16 December 2020 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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(3) 

(4) 

(5) 

(6) 

(7) 

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The  EU  Emissions  Trading  System,  established  by  Directive  2003/87/EC  of  the 
European Parliament and of the Council7, is a central part of the climate policy of the 
Union. Considering the close link of emissions trading to the climate policy objectives 
of  the  Union,  it  is  appropriate  to  allocate  a  share  of  the  revenues  concerned  to  the 
Union  budget.  30%  of  the  auction  revenues  should  be  transferred  to  the  Union 
budget.  

The emissions trading own resources includes a share of revenues generated from the 
auctioning  of  allowances  in  all  sectors  falling  under  the  scope  of  Directive 
2003/87/EC.  Under  Directive  2003/87/EC  and  Regulation  (EU)  2018/842  of  the 
European  Parliament  and  of  the  Council8,  Member  States  may  decide  not  to  auction 
some  of  the  total  quantity  of  allowances  specified  under  Directive  2003/87/EC  or  to 
have  it  transferred  and  auctioned  for  the  Modernisation  Fund  established  by  that 
Directive.  Those  allowances  should  also  be  used  to  calculate  the  amount  of  own 
resources  based  on  emission  tradingIt  is  appropriate  to  exclude  allowances  for 
RePower EU, the initial endowment of the Modernisation Fund as well as allowances 
for  the  Innovation  Fund.  The  50  million  of  allowances  that  will  be  auctioned  in 
2025 for the purposes of the Social Climate Fund are not covered by the scope of 
the emission trading own resource. 

To  avoid  an  excessively  regressive  impact  on  contributions  from  the  emissions 
trading,  a  maximum  contribution  should  be  established  for  eligible  Member  States. 
For  the  period  from  2023  to  2027,  Member  States  are  eligible  if  the  gross  national 
income per capita, measured in purchasing power standard and calculated on the basis 
of Union figures for 2020 is below 90% of the EU average. For the period from 2028 
to 2030, the gross national income per capita in 2025 should be used. The maximum 
contribution  should  be  established  by  comparing  Member  States’  shares  in  the  total 
emission  trading  based  own  resource  with  the  shares  of  those  Member  States  in  the 
Union  gross  national  income.  A  minimum  contribution  should  be  established  for  all 
Member States if their share of the total amount of ETS-based own resources is lower 
than 75% of their share in the Union gross national income. 
Regulation (EU) 2023/956 of the European Parliament and of the Council9 establishes 
a  carbon  border  adjustment  mechanism  to  complement  the  EU  Emissions  Trading 
System and to ensure the effectiveness of the climate policy of the Union. Considering 
the  close  link  of  the  carbon  border  adjustment  mechanism  to  the  Union’s  climate 
policy, a share of the revenues from the sale of certificates should be transferred to the 
Union budget as an own resource.  

In  line  with  the  Interinstitutional  Agreement,  a  financial  contribution  linked  to 
the corporate sector should be introduced. Until the possible establishment of an 
own resource linked to the Business in Europe: Framework for Income Taxation 
(BEFIT)  initiative,  an  own  resource  proportional  to  a  statistical  indicator  that 

Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a 
system  for  greenhouse  gas  emission  allowance  trading  within  the  Union  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, 19.06.2018, p. 26) 
Regulation  (EU)  2023/956/EC  of  the  European  Parliament  and  of  the  Council  establishing  a  carbon 
border adjustment mechanism (OJ L 130,  16.05.2023, p. 52). 

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may  be  used  as  an  approximation  of  company  profits  should  be  provisionally 
established.  This  own  resource  should  be  calculated  based  on  national  accounts 
statistics prepared under the European  System  of  Accounts  2010 (ESA 2010)  in 
application of Regulation EU) No 549/201310 of the European Parliament and of 
the  Council.  This  statistical  system  is  applied  in  a  harmonised  manner  across 
Member States. This own resource should therefore be calculated by multiplying 
a call rate to the sum of gross operating surplus provided for the sectors of non-
financial  and  financial  corporations  (ESA  sectors  S12  and  S11),  as  defined  in 
Regulation (EU) No 549/201311.  

In October 2021, the Organisation for Economic Co-operation and Development and 
the  G20  Inclusive  Framework  on  Base  Erosion  and  Profit  Shifting  reached  an 
agreement  on  the  allocation  to  participating  market  jurisdictions  of  25%  of  residual 
profits  of  large  multinational  enterprises  above  the  profitability  threshold  of  10% 
(‘OECD/G20 IF Pillar 1 Agreement’). The own resource should consist in applying a 
uniform  call  rate  to  the  share  of  residual  profits  of  the  multinational  enterprises,  re-
allocated to Member States [pursuant to the Directive on implementation of the global 
agreement on re-allocation of taxing rights.]  

(87) 

(98)  The  provisions  concerning  the  contribution  from  the  auctioning  of  allowances  under 
the  current  Emissions  Trading  System  and  from  the  statistics  on  company  profits 
should apply from 1 January 2024as of 1 January 2023. Once Directive 2003/87/EC 
has been amended, t. The provisions concerning the contribution from the auctioning 
of  allowances  under  the  newrevised  Emissions  Trading  System  covering  buildings 
road transport and additional  sectors should apply  from  1 January 2028 the first 
day  following  the  last  day  of  the  period  for  transposing  that  amendment.  The 
provisions concerning the contribution from the carbon border adjustment mechanism 
should  apply  from  1  January  2026the  date  of  application  of  the  Regulation.  [The 
provisions  on  the  OECD/G20  IF  Pillar  1  Agreement  shall  enter  into  force  once  the 
Directive on implementation of the global agreement on re-allocation of taxing rights 
applies and the Multilateral Convention entered into effect.]  

HAS ADOPTED THIS DECISION:  

Article 1 

Amendments to Decision (EU, Euratom) 2020/2053 

Decision (EU, Euratom) 2020/2053 is amended as follows:  

(1) 

(a) 

Article 2 is amended as follows: 

in paragraph 1, the following point (e) is added: 

“(e) the application of a uniform rate of 30% to:  

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Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the 
European system of national and regional accounts in the European Union (OJ L 174, 26.6.2013, p. 1) 
Gross  operating  surplus  (ESA  balancing  item  B.2g)  equals  the  sector’s  ‘Gross  value  added’  (ESA 
balancing item B.1g) plus  ‘Other subsidies on production’ (ESA item D.39)  minus  ‘Compensation of 
employees’ (ESA item D.1) and Other taxes on production’ (ESA item D.29). 

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(1) 

the  revenues  generated  from  the  auctioning  of  allowances  by  the  Member 
States  pursuant  to  Articles  3d,  10  and  30d  of  Directive  2003/87/EC  of  the 
European Parliament and of the Council1;  

(2) 

the  amount  calculated  by  multiplying  the  annual  amount  of  allowances  in 
respect of which the relevant Member State applies any of the following:  

(a) 

(b) 

(c) 

the  option  for  transitional  free  allocation  referred    to  in  Article  10c  of 
Directive 2003/87/EC; 

the  possibility  of  limited  cancellation  referred  to  in  Article  6(1)  of 
Regulation  (EU)  2018/842  of  the  European  Parliament  and  of  the 
Council2; 

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;  

with the average weighted price of allowances auctioned on the common 
auction platform by Member States pursuant to Articles 3d and 10 of 
Directive 2003/87/EC in the year in which these allowances would have 
been auctioned. 

(3) 

the amount calculated by multiplying the amount of allowances cancelled 
in accordance with Article 30e(3) of Directive 2003/87/EC with the average 
weighted  price  of  allowances  auctioned  on  the  common  auction  platform 
by Member States pursuant to Article 30d of that Directive in the year in 
which these allowances would have been auctioned.” 

(b) 

in paragraph 1, the following point (f) is added: 

“(f)  the  application  of  a  uniform  call  rate  equal  to  75%  of  the  revenues  from  the  sale  of 
certificates  of  the  carbon  border  adjustment  mechanism  established  by  Regulation  (EU) 
[XXX] of the European Parliament and of the Council3.” 

(c) 

in paragraph 1, the following point (g) is added: 

“(g)  the  application  of  a  uniform  call  rate  of  15%  to  the  share  of  residual  profit  of 
multinational  enterprises  reallocated  to  Member  States  pursuant  to  [the  Directive  on 
implementation of the global agreement on re-allocation of taxing rights4.]” 

(d) 

"in paragraph 1, the following point (h) is added: 

“(h) the application of a uniform call rate equal to 0.5% to the sum of gross operating 
surplus  (B.2g)  of  the  sectors  of  non-financial  corporations  (S.11)  and  financial 
corporations  (S.12)  of  each  Member  State,  as  provided  by  the  Commission  in 

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4. 

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) 2023/956 of the European Parliament and of the Council establishing a carbon border 
adjustment mechanism (OJ L 130,  16.05.2023, p. 52). 
[Directive (EU) XXX giving effect to the OECD/G20 IF Pillar 1 Agreement]. 

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accordance with the definitions of the European System of Accounts 2010 (ESA 2010) set 
up by Regulation (EU) 549/2013.” 

(ed) 

the following paragraph 2a is inserted: 

“2a.  By way of derogation from paragraph 1, point (e), the following shall apply until the 
financial year 2030:  

(a)  where a Member State’s share in the total amount of revenue resulting from the 
application  of  paragraph  1,  point  (e),  is  lower  than  75%  of  its  share  in  the 
Union  gross  national  income,  that  Member  State  shall  make  available  an 
amount that is equal to 75% of that gross national income share, multiplied by 
the total amount of revenue resulting from the application of paragraph 1, point 
(e).  

(b) 

a  Member  State’s  share  in  the  total  amount  of  revenue  resulting  from  the 
application  of  paragraph  1,  point  (e),  shall  not  be  higher  than  150%  of  that 
Member  State’s  share  in  the  Union  gross  national  income  for  Member  States 
with  a  gross  national  income  per  capita  below  90%  of  the  Union’s  average, 
measured  in  purchasing  power  standard  and  calculated  on  the  basis  of  the 
figures  for  2020,  for  the  period  from  2023  to  2027,  and  on  the  basis  of  the 
figures for 2025, for the period from 2028 to 2030.  

Gross national income as referred to in points (a) and (b) shall mean the gross national income 
at market prices  as referred to in Article 1(1) of  Regulation (EU) 2019/516 of the European 
Parliament and of the Council5.” 

Article 2 

Entry into force and application 

The Secretary-General of the Council shall notify the Member States of this Decision. 

Member  States  shall  notify  the  Secretary-General  of  the  Council  without  delay  of  the 
completion  of  the  procedures  for  the  approval  of  this  Decision  in  accordance  with  their 
respective constitutional requirements. 

This Decision shall enter into force on the first day of the first month following receipt of the 
last of the notifications referred to in the second paragraph. 

Article  1(1),  point  (a),  shall  apply  from  1  January  20241  January  2023  for  the  revenues 
pursuant  to  Article  3d  and  10  of  Directive  2003/87/EC,  and  from  1  January  2028the  day 
following  the  last  day  of  the  period  for  transposing  Directive  (EU)  [XXX]  of  the  European 
Parliament and of the Council6 amending Directive 2003/87/EC for the revenues pursuant to 
Article 30d of Directive 2003/87/EC.   

Article 1(1), point (b), shall apply from 1 January 2026the date of application of Regulation 
(EU) [XXX] establishing a carbon border adjustment mechanism.  

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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). 
Directive (EU) XXX/XXXX of the European Parliament and of the Council of dd/mm/yy 

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Article 1(1), point (c), shall apply from the first day of 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. 

Article 1(1), point (d), shall apply from 1 January 2024.  

This Decision is addressed to the Member States. 

Done at Brussels, 

Addressees 

For the Council 
The President 

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