Explanatory Memorandum to COM(2022)101 - Methods and procedure for making available own resources based on the Emissions Trading System, the Carbon Border Adjustment Mechanism and other measures - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2022)101 - Methods and procedure for making available own resources based on the Emissions Trading System, the Carbon Border Adjustment ... |
|---|---|
| source | COM(2022)101  |
| date | 14-03-2022 |
Contents
The proposal for the amendment of the Own Resources Decision 2020/2053 1 adopted on 22 December 2021 2 adds three new own resources to the EU budget. These proposed 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 (“reallocated profits”).
This proposal adds the practical arrangements, the proportionate and necessary control, supervision and review measures for the additional new own resources proposed in the amended Own Resources Decision. It is complemented, in accordance with Article 311 i of the Treaty on the Functioning of the European Union, by regulations determining the control and supervision of the own resources.
The making available provisions for all own resources should be merged once the agreement on this Regulation is reached in order to avoid the parallel existence of several making available regulations and to ensure legal coherence in line with the Union’s Better Regulation agenda.
This Regulation’s legal basis is Article 322 i of the Treaty on the Functioning of the European Union. It is furthered referred to in Article 9 of the Own Resources Decision (Decision (EU, Euratom) 2020/2053). It complements the Making Available Regulation (EU, Euratom) No 609/2014 for Traditional Own Resources, the Own Resources based on Value Added Tax and Gross National Income 3 and the Making Available Regulation for plastics, Regulation (EU, Euratom) 2021/770 4 . Finally, it is connected to the Regulation laying down implementing measures for the system of Own Resources, the current Regulation (EU, Euratom) No 768/2021 as amended 5 .
Given the nature of own resources, their management relies on the correct application of other Union policies:
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 Adjustment 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
The legal basis for this proposal is Article 322 i TFEU.
• Subsidiarity (for non-exclusive competence)
Not applicable.
• Proportionality
The scope of the proposal is to enhance predictability for Member States in the making available of own resources to the EU budget and to enact procedures for dispute resolution. The proposal is consistent with the principle of proportionality because it does not go beyond what is necessary and is proportionate to achieve this objective satisfactorily.
• Choice of the instrument
Article 322 i TFEU does not specify the instrument to be used 6 . However, Article 9 i of Council Decision (EU, Euratom) 2020/2053 requires Member States to make the resources available to the Commission ‘in accordance with regulations’ adopted under Article 322 i TFEU. Additionally, the Regulation (EU, Euratom) No 609/2014 for Traditional Own Resources and the Own Resources based on Value Added Tax and Gross National Income 7 ; and (ii) the Making Available Regulation for the new Own Resources based on the Plastic packaging waste 770/2021 8 took the form of regulations.
The Commission proposal may be summarised as follows:
Chapter I ‘General Provision’
Article 2 of the proposal, ‘conservation of supporting documents’: provisions replicate those under Article 3 of Regulation (EU, Euratom) No 609/2014, differentiating between provisions for the own resource based on the European Union Emissions Trading System, and provisions for the own resources based on the Carbon Border Adjustment Mechanism and the own resource based on reallocated profits.
Article 3 of the proposal, ‘administrative cooperation’ mirrors Article 4 of Regulation (EU, Euratom) No 609/2014.
Article 4 of the proposal, ‘effects on the own resource based on gross national income’, ensures the residual character of the own resource based on gross national income. It complements Article 5 of Regulation (EU, Euratom) No 609/2014 by stating that the amount of own resource based on gross national income will be calculated after the revenue stemming from all the other own resources, already existing and new, has been added. It also ensures that the gross reductions granted in the Own Resources Decision, as amended, are taken into account for the entry into the accounts and the making available of the own resource based on gross national income.
Chapter II ‘Accounts for Own Resources’
Article 5 of the proposal, ‘entry in the accounts and reporting’ mirrors Article 6 of Regulation (EU, Euratom) No 609/2014, adapting it to the needs of the new own resources.
Article 6 of the proposal, ‘accounting corrections for the own resource based on the European Union Emissions Trading System’, mirrors Article 7 of Regulation (EU, Euratom) No 609/2014, adapting this own resource to what is established there for Traditional Own Resources, since both own resources share a similar nature.
Chapter III ‘Calculation of Own Resources’
Articles 7, 8 and 9 cover the calculation methods of the own resources based on the emissions trading, Carbon Border Adjustment Mechanism and reallocated profits.
Chapter IV ‘Making available Own Resources’
Article 10 of the proposal ‘treasury and accounting arrangements’ refers to Article 9 of Regulation (EU, Euratom) No 609/2014.
Articles 11 and 12 address the making available of the EU Emissions Trading System own resource. Articles 13 and 14 cover the making available of the Carbon Border Adjutsment Mechanism own resource. Article 15 and 16 cover the making available of the reallocated profits–based own resource.
Article 17 refers to interest on amounts made available belatedly.
Chapter V ‘Payments under Reservation and Review Procedure’
Article 18 provides the possibility for Member States to make available under reservation amounts related to corrections and adjustments to the own resources based on the Carbon Border Adjustment Mechanism and the reallocated profits.
Article 19 introduces a review procedure in case of manifest disagreement between a Member State and the Commission concerning corrections and adjustments to the own resources based on the Carbon Border Adjustment Mechanism and on reallocated profits. This new procedure provides for clear deadlines and obligations for both the Member States and the Commission. It ensures a constructive dialogue on the disputed amounts in question and aims to facilitate reaching an agreement between both sides.
Chapter VI ‘Management of cash resources’
Article 20 ‘requirements on management of cash resources and execution of payment orders’ refers to Articles 14 and 15 of Regulation (EU, Euratom) No 609/2014.
Chapter VI ‘Final provisions’
Article 21 of the proposal, ‘Committee procedure’, provides for implementing powers to be conferred on the Commission in accordance with Regulation (EU) No 182/2011.
Article 22 of the proposal, ‘entry into force’, states that the Regulation will enter into force at the same time as the amended Own Resources Decision.
The Regulation will apply retroactively from 1 January 2023 for the own resources based on Article 10 and 3d of the European Union Emissions Trading System (stationary and aviation). As regards the new Emissions Trading System covering building and road transport, it shall apply from the first day following the last day of the period for transposing Directive (EU) [XXX] amending Directive 2003/87/EC.
As regards the Carbon Border Adjustment Mechanism, this regulation shall apply as from the day of the entry into application of this sectoral regulation.
As regards the reallocated profits-based own resource, it shall apply from the first day of the date of application of the period starting after the last day of the period for transposing the [Directive on the implementation of the global agreement on re-allocation of taxing rights] or to the day of the entry into force and effect of the Multilateral Convention, whichever is the later.