Explanatory Memorandum to COM(2020)233 - Amendment of Regulation (EU) 2016/1628 as regards its transitional provisions in order to address the impact of COVID-19 crisis - Main contents
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| dossier | COM(2020)233 - Amendment of Regulation (EU) 2016/1628 as regards its transitional provisions in order to address the impact of COVID-19 ... |
|---|---|
| source | COM(2020)233  |
| date | 02-06-2020 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The COVID-19 pandemic is causing major disruption of the supply chain which has had an impact on non-road mobile machinery (NRMM) manufacturers’ ability to meet some of the deadlines imposed by Regulation (EU) 2016/1628 of the European Parliament and of the Council of 14 September 2016 on requirements relating to gaseous and particulate pollutant emission limits and type-approval for internal combustion engines for non-road mobile machinery.
That Regulation sets out new emissions limits, referred to as ‘Stage V’, which are designed to reduce the current emissions of air pollutants from engines for non-road mobile machinery. Given the structural challenge for certain manufactures to shift towards Stage V emission limits, the Regulation provides some lead time to make this transition.
According to the transition periods provided in Article 58(5) and the dates laid down in Annex III to that Regulation, manufacturers have until 30 June 2020 to produce NRMM fitted with transition engines of the following categories: NRE in the power range <56kW and ≥130kW, NRG, NRSh, NRS, IWP and IWA in the power range 19 ≤ P < 300, SMB and ATS. They then have until 31 December 2020 to place these machines on the Union market.
However, the COVID-19 outbreak has caused complete interruptions in the supply of parts and components, leaving manufacturers with stocks of engines and unfinished products. The consequence of this disruption is that many engines and machinery manufacturers will not be able to meet the deadlines set out above without sustaining serious economic damage.
In the light of this disruption that could not have been foreseen, the dates for producing and placing of the market of NRMM and tractors fitted with transition engines is postponed by twelve months. This postponement does not apply to transition engines covered by the dates specified in the second, third and fourth subparagraphs of Article 58(5).
The extension of 12 months is warranted given the seasonality of the goods in which transition engines will be fitted. This is particularly the case for tractors and garden equipment. In addition, it is difficult to predict the exact duration of the delays that will be suffered for the completion of the impacted goods (e.g. inland waterways vessels). Finally, it should be noted that regardless of the duration of the extension, economic operators will have no interest to delay further the completion and placing on the market of machinery, vehicles and vessels for which they have already incurred costs.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
Article 114 of the Treaty on the Functioning of the European Union
• Subsidiarity (for non-exclusive competence)
The subsidiarity principle applies since the proposal does not fall under the exclusive competence of the Union.
As the proposal involves amendments to existing EU legislation, only the EU can effectively address the issues. Furthermore, the policy objectives cannot be sufficiently achieved by actions of the Member States.
European Union action is necessary to avoid the emergence of barriers to the single market notably in the field of NRMM engines, and because of the transnational nature of air pollution.
The proposal therefore complies with the subsidiarity principle
• Proportionality
The proposal complies with the proportionality principle because it does not go beyond what is necessary in order to achieve the objectives of ensuring the proper functioning of the internal market while at the same time providing for a high level of public safety and environmental protection. The length of the proposed extension is commensurate with the expected duration of the disruption due to the COVID-19 pandemic.
• Choice of the instrument
Regulation amending a Regulation
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
This proposal is not accompanied by a separate impact assessment, as an impact assessment for Regulation (EU) 2016/1628 has already been undertaken. This proposal does not alter that Regulation on substance and does not impose new obligations on the concerned parties. It primarily aims at providing, for exceptional reasons in the context of the current COVID-19 outbreak, an extension of twelve months for the manufacture and placing on the market of transition engines and the machinery equipped with them. This proposal has no environmental effects since the measures facilitate the placing in the market of goods fitted with engines produced before the pandemic. It also avoids the need to scrap otherwise non-compliant goods fitted with such engines.
4. BUDGETARY IMPLICATIONS
The proposal does not have a budgetary impact for the EU institutions.