Within six months of each global stocktake referred to in Article 14 of the Paris Agreement, the Commission shall submit a report to the European Parliament and to the Council, together with the conclusions of the assessments referred to in Articles 6 and 7 of this Regulation, on the operation of this Regulation, taking into account:
(a)
the best available and most recent scientific evidence, including the latest reports of the IPCC and the Advisory Board;
(b)
international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement;
(c)
the evolving challenges to, and opportunities for, global competitiveness of European industries across Member States, in particular of energy-intensive industries and of SMEs;
(d)
the evolution of energy prices and its impact on European industries and households;
(e)
the socioeconomic impacts, including the effects on employment;
(f)
technological advances and deployment across Member States and sectors of innovative technologies;
(g)
the estimated level of net removals at Union level in relation to the targets set out in this Regulation; if the Commission finds that the estimated level of net natural removals for 2040 is significantly diverging from what would be required to achieve the 2040 intermediate target, including where that divergence is due to natural disturbances, the Commission shall propose, where appropriate, measures at Union level, including, if necessary, an adjustment of the 2040 intermediate target corresponding to, and within the limits of, the possible shortfalls, and ensure that possible shortfalls will not be at the expense of other economic sectors;
(h)
the progress towards the intermediate targets set out in this Regulation;
(i)
the flexibility for Member States to use high-quality international credits to fulfil up to 5 % of their post-2030 targets and efforts.
The Commission’s report shall be accompanied, where appropriate, by legislative proposals to revise this Regulation, including the intermediate 2040 target, and by additional measures to strengthen the initiatives concerning the enabling framework supporting the continued effective implementation of this Regulation, in line with Article 4(5), and securing Union competitiveness, prosperity and social cohesion.