Proposal:
Directive 2003/87/EC is amended as follows:
In Article 12 the following paragraph is inserted:
“(3)aa However, where a Member State is withdrawing from the Union, it shall ensure that each operator and aircraft operator surrenders the allowances specified in paragraphs 2a and 3 in advance of the date of withdrawal, if the date of withdrawal falls between 28 February and 30 April.”
Justification:
This amendment addresses concerns regarding non-compliance for EU ETS operators who are regulated by a Member State withdrawing from the European Union. It obliges any such Member State, in the year of withdrawal, to bring forward the deadline for compliance to before the withdrawal date – when Union law still applies to the Member State.
This provides assurance of compliance and protects the integrity of the EU ETS, even in the absence of any agreement between the Member State and the European Union. In practice, it would apply to UK EU ETS operators for compliance in 2019, for the 2018 calendar year, before the UK leaves the EU The amendment is proposed as an alternative to amendment 47 voted by the European Parliament in the EU ETS aviation vote. It addresses the same issue, but without the significant negative impacts on the smooth operation of the EU ETS carbon market that amendment 47 would have by going against the key principle that all allowances are equal. It is proposed without prejudice to future decisions on the UK’s future relationship with the EU on the EU ETS.
The restriction of the amendment to apply only where the date of withdrawal falls between 28 February and 30 April recognises that reporting and surrender deadlines cannot practically be brought forward beyond 28 February in any given year.
