Annexes to COM(2021)551 - Amendment of 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union and 2015/1814 on the market stability reserve - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2021)551 - Amendment of 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union and 2015/1814 ... |
|---|---|
| document | COM(2021)551  |
| date | May 10, 2023 |
Specific objective No 5
Ensuring that the other sectors than those currently included in the EU ETS contribute cost-effectively to the emission reductions needed in line with EU targets and Paris Agreement commitments, also by including emissions trading for buildings and road transport while ensuring synergies with other complementary policies targeting those sectors.
Specific objective No 6
Reviewing the Market Stability Reserve (MSR) in line with the corresponding legal obligation and examining possible amendments to its design, to fulfil the legal objectives in the MSR decision and to address any issues that may be raised in the context of the increased ambition.
1.4.3.Expected result(s) and impact
Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.
The current ETS legislation was revised in 2018 to deliver a 43 % reduction in EU ETS emissions by 2030 compared to 2005, coherent with an EU economy-wide emissions reduction target of at least 40 % by 2030 compared to 1990. If the legislation remains unchanged, the economic sectors currently covered by the ETS would not provide a sufficient contribution to the revised overall EU greenhouse gas emission reduction target of at least -55 % in 2030 compared to 1990.
The present initiative establishes the framework necessary to achieve the expected emission reductions by:
- making the EU ETS fit for the increased climate ambition of at least 55 % net emission reduction, as enshrined in the European Climate Law 68 .
- strengthens the Innovation Fund as a stepped-up effort to rapidly scale-up low carbon technologies to the market enabling the EU to reach its emission reductions target.
- strengthens the Modernisation Fund to speed-up the modernisation of the energy systems in lower income Member States.
- ensuring that the maritime transport sector contributes cost-effectively to the emission reductions needed in line with EU targets and Paris Agreement commitments by notably covering at least intra-EEA maritime transport emissions.
- ensuring the relevant contribution of the sectors of road transport and buildings to the new greenhouse gas emissions reduction target.
The framework is revised in a manner that preserves the integrity of the current ETS and takes into account the need to address distributional concerns and energy poverty.
1.4.4.Indicators of performance
Specify the indicators for monitoring progress and achievements.
Indicator nr 1: level of reduction of greenhouse gas emissions in the EU in 2030 (55 % reduction target compared to 1990, as enshrined in the European Climate Law).
Indicator nr 2: level of reduction of greenhouse gas emissions for the sectors in the existing EU Emissions Trading System (ETS) in 2030 (61 % reduction target compared to 2005)
Indicator nr 3: level of reduction of greenhouse gas emissions for the road transport and buildings sectors in the new ETS in 2030 (43 % reduction target compared to 2005).
The levels of reduction of greenhouse gas emissions in the EU are reported under Regulation (EU) 2018/1999 and other secondary legislation related to monitoring and reporting in the ETS.
1.5.Grounds for the proposal/initiative
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
Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive and the Commission is to develop the relevant implementing measures.
Further measures to develop, starting after the adoption of the Directive, will include revising and adopting a number of secondary legislative acts. In particular, this will concern the secondary legislation setting out detailed rules on auctioning; Union Registry; monitoring and reporting of emissions and verification of emission reports and accreditation of verifiers; and free allocation. The implementation will also require elaborate IT developments in the Union Registry to deal with new type of allowances and new operators and launch a new procurement procedure for the common auction platform. IT development and procurement choices will be performed according to the Communication on the guidelines on financing of information technology and cybersecurity, of 10 September 2020 69 .
1.5.2.Added value of Union involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this point 'added value of Union involvement' is the value resulting from Union intervention which is additional to the value that would have been otherwise created by Member States alone.
Climate change is a transboundary problem and EU action can effectively complement and reinforce regional, national and local action. Increasing the 2030 target for EU greenhouse gas reductions will impact many sectors across the EU economy and coordinated action at the EU level is therefore indispensable and has a much bigger chance of leading to the necessary transformation, acting as a strong driver for cost-efficient change and upward convergence. Furthermore, many of the elements of this proposal have an important internal market dimension, in particular the options related to the carbon leakage protection and the low-carbon funding mechanisms.
As a carbon market, the EU ETS incentivises emission reductions to be made by the most cost-efficient solutions first across the activities it covers, achieving greater efficiency by virtue of its scale. Implementing a similar measure nationally would result in smaller, fragmented carbon markets, risking distortions of competition and likely lead to higher overall abatement costs. The same logic holds for the extension of carbon pricing to new sectors.
The cross-border dimension of the maritime transport sector calls for coordinated action at European level. EU action can also inspire and pave the way for the development of global action, e.g. as regards the maritime transport within International Maritime Organization.
1.5.3.Lessons learned from similar experiences in the past
The ETS Directive is an existing EU policy instrument adopted in 2003. The Commission has gained valuable experience during more than 15 years for which the EU ETS has been in operation.
This proposal builds upon experience gathered in the previous EU ETS revisions and initiatives, including the most recent revision concluded in 2018, the Communication on stepping up Europe’s 2030 climate ambition, the Long-Term Strategy for a prosperous, modern, competitive and climate-neutral economy and other relevant European Green Deal initiatives. The initiative also builds on the process based on integrated national energy and climate plans and the framework contained in the Governance Regulation.
1.5.4.Compatibility with the Multiannual Financial Framework and possible synergies with other appropriate instruments
Related operational expenditure can be covered by appropriations under the LIFE programme 70 as agreed under the current MFF.
This proposal is a part of the ‘Fit for 55’ climate and energy package. The overall objective of the package is to align Union legislation with the EU’s increased climate ambition. All initiatives in the package are closely interlinked, and each one depends on the design of the others. This legislative proposal is complementary to the proposals made in the package and maintains consistency with them.
Consistency with other Union policies is also ensured through the coherence of the impact assessments for the EU ETS with those for the remainder of the 2030 climate, energy and transport framework 71 , such as the complementarity of extending emission trading with the Energy Efficiency Directive 72 , and with other measures presented as part of the basket of measures to address greenhouse gas emissions from maritime transport. A common baseline and common core policy scenarios with other initiatives of the package are used. These scenarios take into account all relevant EU actions and policies.
Additional administrative costs could be limited by using, where possible, existing structures used for the Directive laying down the general arrangements for excise duty and the Energy Taxation Directive. In turn, additional energy savings would be enhanced by the new ETS, with its potential link to energy savings under Article 7 of the Energy Efficiency Directive.
1.5.5.Assessment of the different available financing options, including scope for redeployment
- Duration and financial impact of the proposal/initiative
◻ limited duration
◻ in effect from [DD/MM]YYYY to [DD/MM]YYYY
◻ Financial impact from YYYY to YYYY for commitment appropriations and from YYYY to YYYY for payment appropriations.
✓ unlimited duration
·Implementation with a start-up period from 2023 to 2024,
·followed by full-scale operation.
1.6.Management mode(s) planned 73
✓ 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 70 and 71 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
The management of EU ETS allowances is done through legislation for which the Commission departments are responsible.
The Innovation Fund is largely implemented by European Climate, Infrastructure and Environment Executive Agency (CINEA).
The Modernisation Fund operates under the responsibility of the beneficiary Member States, who work in close cooperation with the European Investment Bank (EIB), the Investment Committee set up for the fund and the European Commission.
2. MANAGEMENT MEASURES
2.1.Monitoring and reporting rules
Specify frequency and conditions.
The Commission will continue to monitor and evaluate the functioning of the ETS in its annual Carbon Market Report, as foreseen under Article 10(5) of the ETS Directive. This covers also the impacts of the current revision of the ETS. The Commission’s annual Carbon Market Report and Member States annual report shall also apply to the sectors to which emissions trading is extended. The MRV data obtained through the regulation of the new sectors will be a key source for information for the Commission to evaluate progress in the sectors concerned.
Furthermore, evaluation of progress on the application of the ETS Directive is regulated in the current Article 21, which requires Member States to submit to the Commission an annual report paying particular attention to issues including the allocation of allowances, operation of the Registry, application of monitoring and reporting, verification and accreditation and issues relating to compliance.
Finally, the Commission regularly carries out studies on various pertinent aspects of EU climate policy.
2.2.Management and control system(s)
2.2.1.Justification of the management mode(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed
Not applicable - The proposal is not implementing a new financial programme but designing a long-term policy. Management mode, funding implementation mechanisms, payment modalities and control strategy in relation to error rates are not applicable. The implementation of this proposal will require the redeployment of human resources within the Commission. Appropriate procedures are in place.
2.2.2.Information concerning the risks identified and the internal control system(s) set up to mitigate them
The EU ETS is the flagship policy mechanism to achieve the EU's emission reductions from around half the economy. Since 2013, the Commission is tasked to provide a Union Registry, an online database that provides an accurate accounting for all allowances transaction, a common auctioning platform for the auctioning of Member States allowances and the relevant support infrastructure for both. The Union Registry in which allowances are held under the EU ETS is threatened by a risk of fraudulent cyber-attacks that could result in theft or misappropriation of allowances leading to significant financial loss (up to several billion euros), legal litigation and considerable impact on Commission's reputation and credibility. The risk is cross-cutting and, alongside DG CLIMA, involves DG DIGIT, HR-DS, BUDG and LS. Mitigating measures have been put in place. The financial risk would increase in line with increases in the value of the carbon market. The distribution of free allowances at a very high total value also requires strict policies on how these allowances can be distributed, and assurance of respect of the rules in place. This involves management and control system at the level of the Member States and at the level of the Commission. Finally, adding the new sectors to the ETS will increase the overall coverage of the system and correspondingly the value of the market and associated risk.
A High-level Steering Committee involving the lead DG and associated DGs is in place since 2011. A fully-fledged risk assessment has been conducted in 2014 which has identified new IT security measures taken as from 2015. As a result of the recommendations put forward by the IAS in its audit report on the EU ETS Registry (IT security), measures to further improve the security of the registry system as well as measures on governance, quality assurance and testing have been implemented. Additional mitigating actions are being implemented since 2014.
In 2019, a new risk assessment has been carried out for the Union Registry. DG CLIMA drafted a new security plan containing twelve security measures to be implemented within two years in close collaboration with DIGIT.
The implementation is monitored at Senior Management level with regular Steering Committees between DG CLIMA and DIGIT.
2.2.3.Estimation and justification of the cost-effectiveness of the controls (ratio of "control costs ÷ value of the related funds managed"), and assessment of the expected levels of risk of error (at payment & at closure)
This initiative does not bring about new significant controls/risks that would not be covered be an existing internal control framework. No specific measures beyond the application of the Financial Regulation have been envisaged.
2.3.Measures to prevent fraud and irregularities
Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy.
In response to the specific fraud risks for the EU ETS, DG CLIMA reinforced the Commission-wide guidelines regarding professional ethics and integrity by a dedicated "Code of Ethics and Conduct in relation to insider trading, fraud and disclosure of sensitive information", specific trainings, awareness raising initiatives. It also developed the EU ETS Sensitive Information Classification Policy and the related handling instructions with 3 levels of sensitivity. The related three ETS markings are approved by DG HR-DS (as referenced in Security Notice 1 in its revision 10). In 2019, DG HR-DS published security notice C(2019) 1904 updating Sensitive Non-Classifed (SNC) information policy. DG CLIMA, in alignment with this new policy, published new handling instructions for DG CLIMA SNC information. Appropriate training sessions for newcomers are organised on a regular basis.
3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected
(2) Existing budget lines
In order of multiannual financial framework headings and budget lines.
| Heading of multiannual financial framework | Budget line | Type of | Contribution | |||
| Number | Diff./Non-diff.[1] | from EFTA countries[2] | from candidate countries[3] | from third countries | within the meaning of Article 21(2)(b) of the Financial Regulation | |
| 3 | 09 01 01 01 | Non-diff. | YES | NO | NO | NO |
| 3 | 09 02 03 | Diff. | YES | NO | NO | NO |
| 7 | 20 01 02 01 | Non-diff. | NO | NO | NO | NO |
| 7 | 20 02 06 01 | Non-diff. | NO | NO | NO | NO |
| 7 | 20 02 06 02 | Non-diff. | NO | NO | NO | NO |
| 7 | 20 02 06 03 | Non-diff. | NO | NO | NO | NO |
(3) New budget lines requested: Not applicable.
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:
EUR million (to three decimal places)
| Heading of multiannual financial framework | 3 | 'natural resources and environment' | ||||||
| DG: CLIMA | 2023 | 2024 | 2025 | 2026 | 2027 | TOTAL | ||
| Operational appropriations | ||||||||
| 09 02 03 | Commitments | (1) | 1,241 | 1,485 | 2,138 | 1,893 | 1,369 | 8,126 |
| Payments | (2) | 0,496 | 1,339 | 1,747 | 2,040 | 5,622 | ||
| Appropriations of an administrative nature financed from the envelope of specific programmes | ||||||||
| 09 01 01 01 | (3) | 1,029 | 1,632 | 1,476 | 1,184 | 0,952 | 6,273 | |
| TOTAL appropriations DG CLIMA | Commitments | = 1 + 3 | 2,270 | 3,118 | 3,615 | 3,077 | 2,320 | 14,400 |
| Payments | = 2 + 3 | 1,029 | 2,128 | 2,815 | 2,931 | 2,992 | 11,895 | |
| TOTAL operational appropriations | Commitments | (4) | 1,241 | 1,485 | 2,138 | 1,893 | 1,369 | 8,126 |
| Payments | (5) | - | 0,496 | 1,339 | 1,747 | 2,040 | 5,622 | |
| TOTAL appropriations of an administrative nature financed from the envelope for specific programmes | (6) | 1,029 | 1,632 | 1,476 | 1,184 | 0,952 | 6,273 | |
| TOTAL appropriations under HEADING 3 of the multiannual financial framework | Commitments | = 4 + 6 | 2,270 | 3,118 | 3,615 | 3,077 | 2,320 | 14,400 |
| Payments | = 5 + 6 | 1,029 | 2,128 | 2,815 | 2,931 | 2,992 | 11,895 | |
| TOTAL operational appropriations | Commitments | (4) | 1,241 | 1,485 | 2,138 | 1,893 | 1,369 | 8,126 |
| Payments | (5) | - | 0,496 | 1,339 | 1,747 | 2,040 | 5,622 | |
| TOTAL appropriations of an administrative nature financed from the envelope for specific programmes | (6) | 1,029 | 1,632 | 1,476 | 1,184 | 0,952 | 6,273 | |
| TOTAL appropriations under HEADINGS 1 to 6 of the multiannual financial framework (Reference amount) | Commitments | = 4 + 6 | 2,270 | 3,118 | 3,615 | 3,077 | 2,320 | 14,400 |
| Payments | = 5 + 6 | 1,029 | 2,128 | 2,815 | 2,931 | 2,992 | 11,895 |
| Heading of multiannual financial framework | 7 | ‘Administrative expenditure’ | ||||||
This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative Financial Statement (Annex V to the internal rules), which is uploaded to DECIDE for interservice consultation purposes. EUR million (to three decimal places) | ||||||||
| 2023 | 2024 | 2025 | 2026 | 2027 | TOTAL | |||
| DG: CLIMA | ||||||||
| Human resources | 3,344 | 3,648 | 3,648 | 3,648 | 3,648 | 17,936 | ||
| Other administrative expenditure | 0,210 | 0,404 | 0,176 | 0,060 | 0,060 | 0,910 | ||
| TOTAL DG CLIMA | 3,554 | 4,052 | 3,824 | 3,708 | 3,708 | 18,846 | ||
| TOTAL appropriations under HEADING 7 of the multiannual financial framework | (Total commitments = Total payments) | 3,554 | 4,052 | 3,824 | 3,708 | 3,708 | 18,846 |
EUR million (to three decimal places)
| 2023 | 2024 | 2025 | 2026 | 2027 | TOTAL | |||
| TOTAL appropriations under HEADINGS 1 to 7 of the multiannual financial framework | Commitments | 5,824 | 7,170 | 7,439 | 6,785 | 6,028 | 33,245 | |
| Payments | 4,583 | 6,180 | 6,639 | 6,639 | 6,700 | 30,741 |
3.2.2.Estimated output funded with operational appropriations
Commitment appropriations in EUR million (to three decimal places)
| Indicate objectives and outputs | budget line | OUTPUTS | 2023 | 2024 | 2025 | 2026 | 2027 | total | |||||||
| Type[1] | Average cost | No | Cost | No | Cost | No | Cost | No | Cost | No | Cost | No | Cost | ||
| specific objective 4 - maritime | |||||||||||||||
| - update the platform Thetis-MRV | 09 02 03 | cooperation agreement EMSA | 0,250 | 0,250 | |||||||||||
| - modifications Union Registry | 09 02 03 | Service Contracts | 0,260 | 0,304 | 0,133 | 0,127 | 0,126 | 0,949 | |||||||
| 09 01 01 01 | QTM, Extramuros, equipment | 0,626 | 0,730 | 0,330 | 0,316 | 0,313 | 2,314 | ||||||||
| - extension Service desk | 09 02 03 | Service Contracts | 0,000 | 0,013 | 0,099 | 0,088 | 0,080 | 0,280 | |||||||
| 09 01 01 01 | QTM, Extramuros, equipment | 0,000 | 0,053 | 0,116 | 0,083 | 0,055 | 0,306 | ||||||||
| - update ETS reporting system MRV | 09 02 03 | Service Contracts | 0,099 | 0,120 | 0,202 | 0,103 | 0,054 | 0,579 | |||||||
| Subtotal for specific objective No 4 | 1,234 | 1,220 | 0,880 | 0,715 | 0,628 | 4,677 | |||||||||
| specific objective 5 - buildings and transport | |||||||||||||||
| - modifications Union Registry | 09 02 03 | Service Contracts | 0,173 | 0,203 | 0,089 | 0,084 | 0,084 | 0,633 | |||||||
| 09 01 01 01 | QTM, Extramuros, equipment | 0,404 | 0,473 | 0,207 | 0,197 | 0,195 | 1,476 | ||||||||
| - extension Service desk | 09 02 03 | Service Contracts | 0,000 | 0,091 | 0,365 | 0,300 | 0,250 | 1,007 | |||||||
| 09 01 01 01 | QTM, Extramuros, equipment | 0,000 | 0,377 | 0,824 | 0,589 | 0,389 | 2,178 | ||||||||
| - update ETS reporting system MRV | 09 02 03 | Service Contracts | 0,459 | 0,754 | 1,250 | 1,191 | 0,774 | 4,429 | |||||||
| Subtotal for specific objective No 5 | 1,036 | 1,898 | 2,734 | 2,362 | 1,692 | 9,722 | |||||||||
| TOTALS | 2,270 | 3,118 | 3,615 | 3,077 | 2,320 | 14,400 |
3.2.3.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)
| 2023 | 2024 | 2025 | 2026 | 2027 | TOTAL | |
| HEADING 7 of the multiannual financial framework | ||||||
| Human resources | 3,344 | 3,648 | 3,648 | 3,648 | 3,648 | 17,936 |
| Other administrative expenditure | 0,210 | 0,404 | 0,176 | 0,060 | 0,060 | 0,910 |
| Subtotal HEADING 7 of the multiannual financial framework | 3,554 | 4,052 | 3,824 | 3,708 | 3,708 | 18,846 |
| Outside HEADING 7[1] of the multiannual financial framework | ||||||
| Human resources | ||||||
| Other expenditure of an administrative nature | 1,029 | 1,632 | 1,476 | 1,184 | 0,952 | 6,273 |
| Subtotal outside HEADING 7 of the multiannual financial framework | 1,029 | 1,632 | 1,476 | 1,184 | 0,952 | 6,273 |
| TOTAL | 4,583 | 5,684 | 5,300 | 4,892 | 4,660 | 25,119 |
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.
3.2.3.1.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:
Estimate to be expressed in full time equivalent units
| 2023 | 2024 | 2025 | 2026 | 2027 | ||
| Ÿ Establishment plan posts (officials and temporary staff) | ||||||
| 20 01 02 01 (Headquarters and Commission’s Representation Offices) | 22 | 24 | 24 | 24 | 24 | |
| 20 01 02 03 (Delegations) | ||||||
| 01 01 01 01 (Indirect research) | ||||||
| 01 01 01 11 (Direct research) | ||||||
| Other budget lines (specify) | ||||||
| Ÿ External staff (in Full Time Equivalent unit: FTE)[1] | ||||||
| 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 | - 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 | 22 | 24 | 24 | 24 | 24 |
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 | Additional HR resources are required for: - Legal drafting and approval of amendments of secondary legislation setting out detailed implementing rules on auctioning; Union Registry; monitoring and reporting; verification of emission reports and accreditation of verifiers; free allocation; - Implementation tasks related to the ETS extension to maritime transport (including the necessary amendments to the existing MRV system) and to the new emissions trading for buildings and road transport; - Procurement of the new auction platform(s) for auctioning of general allowances, as well as a new type of allowances for the sectors of buildings and road transport - Monitoring the implementation of monitoring, reporting and verification (MRV) obligations - Further implementation and oversight of low carbon funds - IT adaptations in the Union Registry. |
| External staff |
3.2.4.Compatibility with the current multiannual financial framework
The proposal/initiative:
·✓ can be fully financed within the relevant heading of the Multiannual Financial Framework (MFF).
The expenditure will be covered within the LIFE envelope.
·◻ 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.
-
3.2.5.Third-party contributions
The proposal/initiative:
·✓ does not provide for co-financing by third parties
·◻ provides for the co-financing by third parties estimated below:
Appropriations in EUR million (to three decimal places)
| 2023 | 2024 | 2025 | 2026 | 2027 | Total | |
| Specify the co-financing body | ||||||
| TOTAL appropriations co-financed |
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 million (to three decimal places)
| Budget revenue line: | Appropriations available for the current financial year | Impact of the proposal/initiative 74 | ||||
| 2023 | 2024 | 2025 | 2026 | 2027 | ||
| Article …………. |
For assigned revenue, specify the budget expenditure line(s) affected.
-
Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information).
This cannot be quantified
(1) COM(2019)640 final.
(2) COM(2018) 773 final.
(3) COM (2020) 562 final.
(4) European Council Conclusions 10-11 December 2020 EUCO 22/20 CO EUR 17 CONCL 8.
(5) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
(6) Per the EU Reference Scenario 2020 (REF) which serves as baseline for the impact assessment (see section 5.1 of the impact assessment).
(7) Source: https://ec.europa.eu/transport/themes/mobilitystrategy_en
(8) The choice of 2008 as a base year for the emissions reduction projections in maritime transport is made to allow consistency with the IMO objectives that are all expressed in relation to 2008.
(9) Regulation (EU) 2015/757 of the European Parliament and of the Council of 29 April 2015 on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and amending Directive 2009/16/EC (OJ L 123, 19.5.2015, p. 55–76).
(10) Decision (EU) 2015/1814 of the European Parliament and of the Council of 6 October 2015 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and amending Directive 2003/87/EC (OJ L 264, 9.10.2015, p. 1–5).
(11) 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. 26–42).
(12) Regulation (EU) 2015/757 on the monitoring, reporting and verification of CO2 emissions from maritime transport, OJ L 123, 19.5.2015, p. 55–76
(13) Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity (OJ L 283, 31.10.2003, p. 51–70).
(14) Notably the ESR; the Land Use, Land Use Change and Forestry (LULUCF) Regulation; CO2 Emissions Performance Standards for Cars and Vans; the Renewable Energy Directive (REDII); the Energy Efficiency Directive (EED); and, at a later stage, the Energy Performance of Buildings Directive. Other relevant initiatives include the revision of the Energy Taxation Directive; the Zero Pollution Action Plan and the revision of the Industrial Emissions Directive; initiatives on mobility, such as those on transport fuels (FuelEU maritime initiative and ReFuelEU aviation initiative) and a proposal for a Carbon Border Adjustment Mechanism (CBAM).
(15) Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1–56).
(16) Directive (EU) 2018/410 of the European Parliament and of the Council of 14 March 2018 amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments, and Decision (EU) 2015/1814 (OJ L 76, 19.3.2018, p. 3–27).
(17) The inception impact assessment was open for feedback from 29 October 2020 to 26 November 2020 and received about 250 contributions. The outcome can be found on the following website: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12660-Updating-the-EU-Emissions-Trading-System .
(18) This was open for 12 weeks from 13 November 2020 to 5 February 2021. The outcome can be found on the following website: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12660-Updating-the-EU-Emissions-Trading-System/public-consultation .
(19) The stakeholder survey run from December 2020 and February 2021, and the targeted interview programme from January 2021 to February 2021.
(20) https://ec.europa.eu/clima/events/expert-workshop-market-stability-reserve_en . https://ec.europa.eu/clima/events/2nd-expert-workshop-market-stability-reserve_en .
(21) SWD(2020)176.
(22) European Commission: In-depth analysis in support of the Commission Communication COM(2018) 773 A Clean Planet for all, A European long-term strategic vision for a prosperous, modern, competitive and climate neutral economy, Brussels 28 November 2018.
(23) Modelling-based projections of energy, transport and greenhouse gas emissions trends to 2050, building on consistent set of assumptions across EU, Member States and EU policies, Member States specific characteristics; and relying on the consultation of Member States experts.
(24) Vivid Economics, (2021) – “Review of the EU ETS’ Market Stability Reserve”, report prepared for DG CLIMA, publication upcoming.
(25) Ricardo, E3 Modelling and Trinomics, (2021) – “Study on EU ETS for maritime transport and possible alternative options or combinations to reduce greenhouse gas emissions”, publication upcoming.
(26) SWD (2020) 176.
(27) OJ C 326, 26.10.2012, p. 391.
(28) C(2020) 6126.
(29) This article requires Member States to submit to the Commission an annual report paying particular attention to issues including the allocation of allowances, operation of the Registry, application of monitoring and reporting, verification and accreditation and issues relating to compliance.
(30) Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1).
(31) Council Directive (EU) 2020/262 of 19 December 2019 laying down the general arrangements for excise duty (recast) (OJ L 58, 27.2.2020, p. 4-42).
(32) Regulation (EU) 2017/2392 of the European Parliament and of the Council of 13 December 2017 amending Directive 2003/87/EC to continue current limitations of scope for aviation activities and to prepare to implement a global market-based measure from 2021 (OJ L 350, 29.12.2017, p. 7–14) .
(33) In a similar manner to the accounting of the Member States’ flexibilities to access allowances from the EU ETS, which are taken into account for the calculation of the total number of allowances in circulation, as set out in Article 6(2) of 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. 26–42).
(34) OJ C , , p. .
(35) OJ C , , p. .
(36) Paris Agreement (OJ L 282, 19.10.2016, p. 4).
(37) COM(2019)640 final.
(38) Special Eurobarometer 513 on Climate Change, 2021 ( https://ec.europa.eu/clima/citizens/support_en ).
(39) https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/European%20Union%20First/EU_NDC_Submission_December%202020.pdf
(40) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
(41) 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).
(42) Council Directive 96/61/EC of 24 September 1996 concerning integrated pollution prevention and control (OJ L 257, 10.10.1996, p. 26).
(43) Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) OJ L 334, 17.12.2010, p. 17 .
(44) Communication from the Commission to the European Parliament, the Council, the European Economic And Social Committee and the Committee of the Regions Pathway to a Healthy Planet for All, EU Action Plan: 'Towards Zero Pollution for Air, Water and Soil' (COM/2021/400 final).
(45) Commission Delegated Regulation (EU) 2019/331 of 19 December 2018 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council (OJ L 59, 27.2.2019, p. 8).
(46) Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide and amending Council Directive 85/337/EEC, European Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006 (OJ L 140, 5.6.2009, p. 114).
(47) Regulation (EU) 2015/757 of the European Parliament and of the Council of 29 April 2015 on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and amending Directive 2009/16/EC (OJ L 123, 19.5.2015, p. 55).
(48) Directive (EU) 2018/410 of the European Parliament and of the Council of 14 March 2018 amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments, and Decision (EU) 2015/1814 (OJ L 76, 19.3.2018, p. 3).
(49) Paris Agreement, Article 4(4).
(50) Regulation (EU) 2017/2392 of the European Parliament and of the Council of 13 December 2017 amending Directive 2003/87/EC to continue current limitations of scope for aviation activities and to prepare to implement a global market-based measure from 2021 (OJ L 350, 29.12.2017, p. 7) .
(51) [please insert full OJ reference]
(52) [add ref to the FuelEU Maritime Regulation].
(53) Commission Delegated Regulation (EU) 2019/1122 of 12 March 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council as regards the functioning of the Union Registry (OJ L 177, 2.7.2019, p. 3).
(54) Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council and amending Commission Regulation (EU) No 601/2012 (OJ L 334, 31.12.2018, p. 1).
(55) Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).
(56) Commission Delegated Regulation (EU) 2019/331 of 19 December 2018 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council (OJ L 59, 27.2.2019, p. 8).
(57) COM(2020)562 final.
(58) Council Directive (EU) 2020/262 of 19 December 2019 laying down the general arrangements for excise duty (OJ L 58 27.2.2020, p. 4).
(59) 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).
(60) Data from 2018. Eurostat, SILC [ilc_mdes01].
(61) Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1–56).
(62) [Add ref to the Regulation establishing the Social Climate Fund].
(63) Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1–77).
(64) Decision (EU) 2015/1814 of the European Parliament and of the Council of 6 October 2015 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and amending Directive 2003/87/EC (OJ L 264, 9.10.2015, p. 1).
(65) Regulation (EU) No 182/2011 of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers (OJ L 55, 28.02.2011, p. 13).
(66) OJ C 369, 17.12.2011, p. 14.
(67) As referred to in Article 58(2)(a) or (b) of the Financial Regulation.
(68) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
(69) C(2020) 6126.
(70) Regulation (EU) 2021/783) of the European Parliament and of the Council of 29 April 2021 establishing a Programme for the Environment and Climate Action (LIFE) and repealing Regulation (EU) No 1293/2013 (OJ L 172, 17.5.2021, p. 53–78).
(71) Notably the ESR; the Land Use, Land Use Change and Forestry (LULUCF) Regulation; CO2 Emissions Performance Standards for Cars and Vans; the Renewable Energy Directive (REDII); the Energy Efficiency Directive (EED); and, at a later stage, the Energy Performance of Buildings Directive. Other relevant initiatives include the revision of the Energy Taxation Directive; the Zero Pollution Action Plan and the revision of the Industrial Emissions Directive; initiatives on mobility, such as those on transport fuels (FuelEU maritime initiative and ReFuelEU aviation initiative) and a proposal for a Carbon Border Adjustment Mechanism (CBAM).
(72) Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1–56).
(73) Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx
(74) 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.