### (13) in order to provide flexibility for the programming of the jtf resources under the investment for jobs and growth goal , it should be possible to prepare a self-standing jtf programme or to programme jtf resources in one or more dedicated priorities within a programme supported by the european regional development fund (‘erdf’) , the european social fund plus (‘esf+’) or the cohesion fund. in accordance with article 21a of regulation (eu) [new cpr] , jtf resources should be reinforced with complementary funding from the erdf and the esf+. the respective amounts transferred from the erdf and the esf+ should be consistent with the type of operations set out in the territorial just transition plans. ### (13) in order to provide flexibility for the programming of the jtf resources under the investment for jobs and growth goal , it should be possible to prepare a self-standing jtf programme or to programme jtf resources in one or more dedicated priorities within a programme supported by the european regional development fund (‘erdf’) , the european social fund plus (‘esf+’) or the cohesion fund. in accordance with article 21a of regulation (eu) [new cpr] , jtf resources may be reinforced on a voluntary basis with complementary funding from the erdf and the esf+. the respective amounts transferred from the erdf and the esf+ should be consistent with the type of operations set out in the territorial just transition plans.


### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the green deal. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission. ### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a fully renewables-based , highly resource and energy-efficient climate-neutral and circular economy aimed at achieving net zero ghg emissions by 2040 , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges , the opportunities and needs of those territories , including the green , permanent and quality job creation potential required to achieve a socially just transition which leaves no one behind , and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to renewables-based , highly resource and energy-efficient climate-neutral and circular economy aimed at achieving net zero ghg emissions by 2040 and the objectives of the green deal. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission.


### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the green deal. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission. ### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the green deal. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission. the investment areas and priorities identified by the european commission in annex d to the country reports 2020 should be indicative and should not limit member states in proposing areas for jtf support.


### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the green deal. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission. ### (15) the territorial just transition plans should identify the territories most affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities , as well as a detailed plan on investments in new infrastructure , whilst maintaining and expanding employment opportunities in the affected territories in order to avoid social exclusion. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges and needs of those territories , including in terms of infrastructure and job creation , and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission.


### (16) in order to enhance the result orientation of the use of jtf resources , the commission , in line with the principle of proportionality , should be able to apply financial corrections in case of serious underachievement of targets established for the jtf specific objective. ### deleted


### in accordance with the second subparagraph of article [4(1)] of regulation (eu) [new cpr] , the jtf shall contribute to the single specific objective ‘enabling regions and people to address the social , economic and environmental impacts of the transition towards a climate-neutral economy’. ### in accordance with the second subparagraph of article [4(1)] of regulation (eu) [new cpr] , the jtf shall contribute to the single specific objective supporting the actions targeted at a fair and successful energy transition towards a climate-neutral economy and‘ enabling regions and people to address the social , economic and environmental impacts of that transition.


### the resources for the jtf under the investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be eur 7.5 billion in 2018 prices , which may be increased , as the case may be , by additional resources allocated in the union budget , and by other resources in accordance with the applicable basic act. ### the resources for the jtf under the investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be eur 7.5 billion in 2018 prices and may not come from other eu funds. the jtf may be increased , as the case may be , by additional resources allocated in the union budget , and by other resources in accordance with the applicable basic act.


### the resources for the jtf under the investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be eur 7.5 billion in 2018 prices , which may be increased , as the case may be , by additional resources allocated in the union budget , and by other resources in accordance with the applicable basic act. ### the resources for the jtf under the investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be eur x1a billion in 2018 prices , which may be increased , as the case may be , by additional resources allocated in the union budget , and by other resources in accordance with the applicable basic act.


### undertakings in difficulty , as defined in article 2(18) of commission regulation (eu) no 651/201416 ; ### deleted


### investment related to the production , processing , distribution , storage or combustion of fossil fuels; ### deleted


### the jtf resources shall be programmed for the categories of regions where the territories concerned are located , on the basis of the territorial just transition plans established in accordance with article 7 and approved by the commission as part of a programme or a programme amendment. the resources programmed shall take the form of one or more specific programmes or of one or more priorities within a programme. ### the jtf resources shall be programmed for the categories of regions where the territories concerned are located , on the basis of the territorial just transition plans established in accordance with article 7 and approved by the commission as part of a programme or a programme amendment , except for modifications regarding pillars 2 or 3 of the just transition mechanism. the resources programmed shall take the form of one or more specific programmes or of one or more priorities within a programme.


### the jtf resources shall be programmed for the categories of regions where the territories concerned are located , on the basis of the territorial just transition plans established in accordance with article 7 and approved by the commission as part of a programme or a programme amendment. the resources programmed shall take the form of one or more specific programmes or of one or more priorities within a programme. ### the jtf resources shall be programmed for the categories of regions where the territories concerned are located , on the basis of the territorial just transition plans established in accordance with article 7 and approved by the commission as part of a programme or a programme amendment. the resources programmed shall take the form of one or more specific programmes or of one or more priorities within a programme covered by regulation (eu) .../... [new cpr].


### article 9 ### deleted


### 1. grants the executive director of the european union agency for railways discharge in respect of the implementation of the agency’s budget for the financial year 2018/ postpones its decision on granting the executive director of the european union agency for railways discharge in respect of the implementation of the agency’s budget for the financial year 2018; ### 1. grants the executive director of the european union agency for railways discharge in respect of the implementation of the agency’s budget for the financial year 2018;


### 1. welcomes the conclusion of the european court of auditors’ special report on erasmus+ that the programme has a positive effect on participants’ attitudes towards the union and generates many forms of european added value; however , stresses also that further efforts should be taken to fully align indicators with objectives , and that there is a need to simplify the application and reporting process; ### 1. welcomes the conclusion of the european court of auditors’ special report on erasmus+ that the programme has a positive effect on participants’ attitudes towards the union and generates many forms of european added value; however , stresses also that insufficient progress has been made and that further efforts should be taken to fully align indicators with objectives;


### 1. calls on the integration of women’s rights and gender equality into all policy areas; reiterates therefore its call for the implementation of gender budgeting in the budgetary process , including the implementation of the budget and assessment of its implementation; ### 1. calls for the integration of women’s rights and gender equality into all relevant policy areas;


### 1. grants the commission discharge in respect of the implementation of the general budget of the european union for the financial year 2018 / postpones its decision on granting the commission discharge in respect of the implementation of the general budget of the european union for the financial year 2018; ### 1. postpones its decision on granting the commission discharge in respect of the implementation of the general budget of the european union for the financial year 2018;


### 1. welcomes the findings of the court of auditors concerning the financial year 2018; takes note of its remarks regarding the regularity of transactions under ‘natural resources’; highlights that transactions under the eagf were free from material errors and that most of the other errors were generated by complex eligibility rules; notes , furthermore , that the risk implied by errors is adequately covered under the corrective capacity of the commission; ### 1. welcomes the findings of the court of auditors concerning the financial year 2018; takes note of its remarks regarding the regularity of transactions under ‘natural resources’; highlights that transactions under the eagf were free from material errors and that most of the other errors were generated by complex eligibility rules , in particular with regard to rural development activities; notes , furthermore , that the risk implied by errors is adequately covered under the corrective capacity of the commission (1.9% of relevant expenditure under the cap);


### 3. acknowledges that , as the student loan guarantee facility has not produced the expected results , the commission decided to reallocate the relevant funds; ### 3. supports the commission decision to reallocate the funds of the student loan guarantee facility , knowing from the beginning that this facility was not going to produce any valuable results;


### 3. welcomes the launch of the first capacity building measures under the amended instrument contributing to stability and peace (icsp) in 2018; emphasises that these actions should take place in the context of an overall security sector reform process; encourages stronger follow-up of short-term stabilisation actions by longer-term actions funded by the icsp or other instruments; ### deleted


### 4. highlights the need to make a greater effort in the integration of the gender perspective in the fields of research and integration; in this sense it welcomes the fact that , up to january 2019 the share of women participants in horizon 2020 projects was 42% of the total workforce; by contrast , it regrets the fact that women only represented 28 % of projects coordinators and only 32.4 % of grants took into account the gender dimension in the research and innovation content2; ### 4. highlights the need to make a greater effort in the integration of the gender perspective in the fields of research and integration; in this sense it welcomes the fact that , up to january 2019 the share of women participants in horizon 2020 projects was 42% of the total workforce;


### 4. welcomes the eca's analytical review on european defence and supports its recommendations; calls on the commission as guardian of the treaties to ensure the coherence of all union defence efforts carried out for the implementation of a union activity under the csdp (pesco , edidp , edf , card etc.) and to ensure synergies with nato; considers that a competitive european defence technological and industrial base , enhancing member states’ military capabilities and framing a european defence union must be the key objectives of the union under the next mff; ### deleted


### 6. notes that the internal control system of eacea still needs major improvements , as identified by the reservations raised in the second phase of an audit on the erasmus+ and creative europe grant management; calls on eacea to adopt all the necessary corrective actions , in order to guarantee the highest quality implementation of the programmes. ### 6. notes that the internal control system of eacea still needs major improvements , as identified by the reservations raised in the second phase of an audit on the erasmus+ and creative europe grant management; calls on eacea to adopt all the necessary corrective actions , in order to guarantee the highest quality implementation of the programmes and undertakes to follow this implementation in the upcoming implementation reports of the programmes;


### 2. reiterates its concerns as regards the use of development funds for non-development objectives and underlines that funding which does not fulfil official development assistance criteria must be sourced from other instruments than the development cooperation instrument (dci); underlines the importance of ensuring human rights standards in all cooperation under the dci and insists that in order to successfully combat poverty in the long-term , the union must address the causes of poverty and inequalities; ### 2. reiterates its concerns as regards the use of development funds for non-development objectives and underlines that funding which does not fulfil official development assistance criteria must be sourced from other instruments than the development cooperation instrument (dci); underlines the importance of ensuring human rights standards in all cooperation under the dci and insists that in order to successfully promote wealth creation and combat poverty in the long-term , the union must address the causes of poverty and inequalities;


### b. whereas the european parliament has repeatedly asked the commission to promote and implement the use of gender mainstreaming , gender budgeting and gender impact assessment in the relevant union policy areas and the court of auditors to incorporate a gender perspective , including gender-disaggregated data , into its reports on the implementation of the union budget; ### deleted


### 57. calls on the commission , in accordance with article 247 of the financial regulation , to align its methodology to the one used by the court and to provide the budgetary control authority with only one error rate corresponding to the risk at payment; calls on the commission to disclose separately an estimate of the future corrections; ### 57. calls on the commission , in accordance with article 247 of the financial regulation , to align its methodology to the one used by the court and to provide the budgetary control authority with only one error rate corresponding to the risk at payment; calls on the commission to disclose separately an estimate of the future corrections; calls for the progress in the matter in question to be provided to the parliament until 30 june 2020;


### 301. urges the schools to improve recruitment , procurement and payment procedures; ### 301. urges the schools to improve recruitment , procurement and payment procedures and calls for the progress to be provided to the parliament until 30 june 2020;


### 7. stresses that support to young farmers from the cap is essential; encourages the commission to move towards a greener cap in line with the paris agreement. ### 7. stresses that support to young farmers from the cap is essential; calls for the allocation of appropriate budgetary resources to encourage the introduction of programmes geared towards a greener cap in line with the paris agreement and ensuring the profitability of agriculture in rural areas.


### 1. grants the executive director of the european maritime safety agency discharge in respect of the implementation of the agency’s budget for the financial year 2018/ postpones its decision on granting the executive director of the european maritime safety agency discharge in respect of the implementation of the agency’s budget for the financial year 2018; ### 1. grants the executive director of the european maritime safety agency discharge in respect of the implementation of the agency’s budget for the financial year 2018;


### 1. grants the executive director of the european union aviation safety agency discharge in respect of the implementation of the agency’s budget for the financial year 2018/ postpones its decision on granting the executive director of the european union aviation safety agency discharge in respect of the implementation of the agency’s budget for the financial year 2018; ### 1. grants the executive director of the european union aviation safety agency discharge in respect of the implementation of the agency’s budget for the financial year 2018


### 1. grants the executive director of the sesar joint undertaking discharge in respect of the implementation of the joint undertaking’s budget for the financial year 2018 / postpones its decision on discharge to the executive director of the sesar joint undertaking in respect of the implementation of the joint undertaking’s budget for the financial year 2018; ### 1. grants the executive director of the sesar joint undertaking discharge in respect of the implementation of the joint undertaking’s budget for the financial year 2018;


### other issues ### issues concerning the deployment phase of the sesar project


### 24. endorses the court’s recommendations aiming to address the issues , and notes that the commission has accepted all of the court’s recommendations; calls on the commission and the joint undertaking to follow up on the implementation of the courts recommendations; ### 24. endorses the court’s recommendations aiming to address the issues , and notes that the commission has accepted all of the court’s recommendations; calls on the commission to follow up on the implementation of the courts recommendations;


### 1. grants the executive director of the clean sky 2 joint undertaking discharge in respect of the implementation of the joint undertaking’s budget for the financial year 2018 / postpones its decision on granting the executive director of the clean sky 2 joint undertaking discharge in respect of the implementation of the joint undertaking’s budget for the financial year 2018; ### 1. grants the executive director of the clean sky 2 joint undertaking discharge in respect of the implementation of the joint undertaking’s budget for the financial year 2018


### 1. grants the executive director of the shift2rail joint undertaking discharge in respect of the implementation of the joint undertaking’s budget for the financial year 2018 / postpones its decision on discharge to the executive director of the shift2rail joint undertaking in respect of the implementation of the joint undertaking’s budget for the financial year 2018; ### 1. grants the executive director of the shift2rail joint undertaking discharge in respect of the implementation of the joint undertaking’s budget for the financial year 2018;


### (47) the regulated entities falling within the scope of the emissions trading in the sectors of buildings and road transport should be subject to similar greenhouse gas emissions permit requirements as the operators of stationary installations. it is necessary to establish rules on permit applications , conditions for permit issuance , content , and review , and any changes related to the regulated entity. in order for the new system to start in an orderly manner , member states should ensure that regulated entities falling within the scope of the new emissions trading have a valid permit as of the start of the system in 2025. ### deleted


### (48) the total quantity of allowances for the new emissions trading should follow a linear trajectory to reach the 2030 emissions reduction target , taking into account the cost-efficient contribution of buildings and road transport of 43 % emission reductions by 2030 compared to 2005. the total quantity of allowances should be established for the first time in 2026 , to follow a trajectory starting in 2024 from the value of the 2024 emissions limits (1 109 304 000 co2t) , calculated in accordance with article 4(2) of regulation (eu) 2018/842 of the european parliament and of the council59 on the basis of the reference emissions for these sectors for the period from 2016 to 2018. accordingly , the linear reduction factor should be set at 5 ,15 %. from 2028 , the total quantity of allowances should be set on the basis of the average reported emissions for the years 2024 , 2025 and 2026 , and should decrease by the same absolute annual reduction as set from 2024 , which corresponds to a 5 ,43 % linear reduction factor compared to the comparable 2025 value of the above defined trajectory. if those emissions are significantly higher than this trajectory value and if this divergence is not due to small-scale differences in emission measurement methodologies , the linear reduction factor should be adjusted to reach the required emissions reduction in 2030. ### deleted


### (49) the auctioning of allowances is the simplest and the most economically efficient method for allocating emission allowances , which also avoids windfall profits. both the buildings and road transport sectors are under relatively small or non-existent competitive pressure from outside the union and are not exposed to a risk of carbon leakage. therefore , allowances for buildings and road transport should only be allocated via auctioning without there being any free allocation. ### deleted


### (50) in order to ensure a smooth start to emissions trading in the buildings and road transport sectors and taking into account the need of the regulated entities to hedge or buy ahead allowances to mitigate their price and liquidity risk , a higher amount of allowances should be auctioned early on. in 2026 , the auction volumes should therefore be 30 % higher than the total quantity of allowances for 2026. this amount would be sufficient to provide liquidity , both if emissions decrease in line with reduction needs , and in the event emission reductions only materialise progressively. the detailed rules for this front-loading of auction volume are to be established in a delegated act related to auctioning , adopted pursuant to article 10(4) of directive 2003/87/ec. ### deleted


### (51) the distribution rules on auction shares are highly relevant for any auction revenues that would accrue to the member states , especially in view of the need to strengthen the ability of the member states to address the social impacts of a carbon price signal in the buildings and road transport sectors. notwithstanding the fact that the two sectors have very different characteristics , it is appropriate to set a common distribution rule similar to the one applicable to stationary installations. the main part of allowances should be distributed among all member states on the basis of the average distribution of the emissions in the sectors covered during the period from 2016 to 2018. ### deleted


### (52) the introduction of the carbon price in road transport and buildings should be accompanied by effective social compensation , especially in view of the already existing levels of energy poverty. about 34 million europeans reported an inability to keep their homes adequately warm in 2018 , and 6 ,9 % of the union population have said that they cannot afford to heat their home sufficiently in a 2019 eu-wide survey60. to achieve an effective social and distributional compensation , member states should be required to spend the auction revenues on the climate and energy-related purposes already specified for the existing emissions trading , but also for measures added specifically to address related concerns for the new sectors of road transport and buildings , including related policy measures under directive 2012/27/eu of the european parliament and of the council61. auction revenues should be used to address social aspects of the emission trading for the new sectors with a specific emphasis in vulnerable households , micro-enterprises and transport users. in this spirit , a new social climate fund will provide dedicated funding to member states to support the european citizens most affected or at risk of energy or mobility poverty. this fund will promote fairness and solidarity between and within member states while mitigating the risk of energy and mobility poverty during the transition. it will build on and complement existing solidarity mechanisms. the resources of the new fund will in principle correspond to 25 % of the expected revenues from new emission trading in the period 2026-2032 , and will be implemented on the basis of the social climate plans that member states should put forward under regulation (eu) 20…/nn of the european parliament and the council62. in addition , each member state should use their auction revenues inter alia to finance a part of the costs of their social climate plans. ### deleted


### (52) the introduction of the carbon price in road transport and buildings should be accompanied by effective social compensation , especially in view of the already existing levels of energy poverty. about 34 million europeans reported an inability to keep their homes adequately warm in 2018 , and 6 ,9 % of the union population have said that they cannot afford to heat their home sufficiently in a 2019 eu-wide survey60 . to achieve an effective social and distributional compensation , member states should be required to spend the auction revenues on the climate and energy-related purposes already specified for the existing emissions trading , but also for measures added specifically to address related concerns for the new sectors of road transport and buildings , including related policy measures under directive 2012/27/eu of the european parliament and of the council61 . auction revenues should be used to address social aspects of the emission trading for the new sectors with a specific emphasis in vulnerable households , micro-enterprises and transport users. in this spirit , a new social climate fund will provide dedicated funding to member states to support the european citizens most affected or at risk of energy or mobility poverty. this fund will promote fairness and solidarity between and within member states while mitigating the risk of energy and mobility poverty during the transition. it will build on and complement existing solidarity mechanisms. the resources of the new fund will in principle correspond to 25 % of the expected revenues from new emission trading in the period 2026-2032 , and will be implemented on the basis of the social climate plans that member states should put forward under regulation (eu) 20…/nn of the european parliament and the council62 . in addition , each member state should use their auction revenues inter alia to finance a part of the costs of their social climate plans. ### deleted


### (53) reporting on the use of auctioning revenues should be aligned with the current reporting established by regulation (eu) 2018/1999 of the european parliament and of the council63 . ### deleted


### (54) innovation and development of new low-carbon technologies in the sectors of buildings and road transport are crucial for ensuring the cost-efficient contribution of these sectors to the expected emission reductions. therefore , 150 million allowances from emissions trading in the buildings and road transport sectors should also be made available to the innovation fund to stimulate the cost-efficient emission reductions. ### deleted


### (55) regulated entities covered by the buildings and road transport emissions trading should surrender allowances for their verified emissions corresponding to the quantities of fuels they have released for consumption. they should surrender allowances for the first time for their verified emissions in 2026. in order to minimise the administrative burden , a number of rules applicable to the existing emissions trading system for stationary installations and aviation should be made applicable to emissions trading for buildings and road transport , with the necessary adaptations. this includes , in particular , rules on transfer , surrender and cancellation of allowances , as well as the rules on the validity of allowances , penalties , competent authorities and reporting obligations of member states. ### deleted


### (56) for emissions trading in the buildings and road transport sectors to be effective , it should be possible to monitor emissions with high certainty and at reasonable cost. emissions should be attributed to regulated entities on the basis of fuel quantities released for consumption and combined with an emission factor. regulated entities should be able to reliably and accurately identify and differentiate the sectors in which the fuels are released for consumption , as well as the final users of the fuels , in order to avoid undesirable effects , such as double burden. to have sufficient data to establish the total number of allowances for the period from 2028 to 2030 , the regulated entities holding a permit at the start of the system in 2025 should report their associated historical emissions for 2024. ### deleted


### (57) it is appropriate to introduce measures to address the potential risk of excessive price increases , which , if particularly high at the start of the buildings and road transport emissions trading , may undermine the readiness of households and individuals to invest in reducing their greenhouse gas emissions. these measures should complement the safeguards provided by the market stability reserve established by decision (eu) 2015/1814 of the european parliament and of the council64 and that became operational in 2019. while the market will continue to determine the carbon price , safeguard measures will be triggered by rules-based automatism , whereby allowances will be released from the market stability reserve only if concrete triggering conditions based on the increase in the average allowance price are met. this additional mechanism should also be highly reactive , in order to address excessive volatility due to factors other than changed market fundamentals. the measures should be adapted to different levels of excessive price increase , which will result in different degrees of the intervention. the triggering conditions should be closely monitored by the commission and the measures should be adopted by the commission as a matter of urgency when the conditions are met. this is without prejudice to any accompanying measures that member states may adopt to address adverse social impacts. ### deleted


### (58) the application of emissions trading in the buildings and road transport sectors should be monitored by the commission , including the degree of price convergence with the existing ets , and , if necessary , a review should be proposed to the european parliament and the council to improve the effectiveness , administration and practical application of emissions trading for those sectors on the basis of acquired knowledge as well as increased price convergence. the commission should be required to submit the first report on those matters by 1 january 2028. ### deleted


### (59) in order to ensure uniform conditions for the implementation of articles 3gd(3) , 12(3b) and 14(1) of directive 2003/87/ec , implementing powers should be conferred on the commission. to ensure synergies with the existing regulatory framework , the conferral of implementing powers in articles 14 and 15 of that directive should be extended to cover the sectors of road transport and buildings. those implementing powers should be exercised in accordance with regulation (eu) no 182/2011 of the european parliament and of the council65. ### (59) in order to ensure uniform conditions for the implementation of articles 3gd(3) , 12(3b) and 14(1) of directive 2003/87/ec , implementing powers should be conferred on the commission. those implementing powers should be exercised in accordance with regulation (eu) no 182/2011 of the european parliament and of the council65.


### (59) in order to ensure uniform conditions for the implementation of articles 3gd(3) , 12(3b) and 14(1) of directive 2003/87/ec , implementing powers should be conferred on the commission. to ensure synergies with the existing regulatory framework , the conferral of implementing powers in articles 14 and 15 of that directive should be extended to cover the sectors of road transport and buildings. those implementing powers should be exercised in accordance with regulation (eu) no 182/2011 of the european parliament and of the council65 . ### (59) in order to ensure uniform conditions for the implementation of articles 3gd(3) , 12(3b) and 14(1) of directive 2003/87/ec , implementing powers should be conferred on the commission. to ensure synergies with the existing regulatory framework. those implementing powers should be exercised in accordance with regulation (eu) no 182/2011 of the european parliament and of the council65 .


### (60) in order to adopt non-legislative acts of general application to supplement or amend certain non-essential elements of a legislative act , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of articles 10(4) and 10a(8) of that directive. moreover , to ensure synergies with the existing regulatory framework , the delegation in articles 10(4) and 10a(8) of directive 2003/87/ec should be extended to cover the sectors of road transport and buildings. it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law-making of 13 april 2016. in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council receive all documents at the same time as member states' experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts. in accordance with the joint political declaration of 28 september 2011 of member states and the commission on explanatory documents66 , member states have undertaken to accompany , in justified cases , the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. with regard to this directive , the legislator considers the transmission of such documents to be justified ### (60) in order to adopt non-legislative acts of general application to supplement or amend certain non-essential elements of a legislative act , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of articles 10(4) and 10a(8) of that directive. moreover , to ensure synergies with the existing regulatory framework , the delegation in articles 10(4) and 10a(8) of directive 2003/87/ec should be extended to cover the sectors of road transport and buildings. it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level as well as associations representing the companies involved in the emissions trading system , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law-making of 13 april 2016. in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council receive all documents at the same time as member states' experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts. in accordance with the joint political declaration of 28 september 2011 of member states and the commission on explanatory documents , member states have undertaken to accompany , in justified cases , the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. with regard to this directive , the legislator considers the transmission of such documents to be justified


### (63) furthermore , in order to ensure that the level of allowances that remains in the market stability reserve after the invalidation is predictable , the invalidation of allowances in the reserve should no longer depend on the auction volumes of the previous year. the number of allowances in the reserve should , therefore , be fixed at a level of 400 million allowances , which corresponds to the lower threshold for the value of the tnac. ### deleted


### (66) in order to mitigate the risk of supply and demand imbalances associated with the start of emissions trading for the buildings and road transport sectors , as well as to render it more resistant to market shocks , the rule-based mechanism of the market stability reserve should be applied to those new sectors. for that reserve to be operational from the start of the system , it should be established with an initial endowment of 600 million allowances for emissions trading in the road transport and buildings sectors. the initial lower and upper thresholds , which trigger the release or intake of allowances from the reserve , should be subject to a general review clause. other elements such as the publication of the total number of allowances in circulation or the quantity of allowances released or placed in the reserve should follow the rules of the reserve for other sectors. ### deleted


### 1. this directive shall apply to the activities listed in annexes i and iii , and to the of greenhouse gases listed in annex ii. where an installation that is included in the scope of the eu ets due to the operation of combustion units with a total rated thermal input exceeding 20 mw changes its production processes to reduce its greenhouse gas emissions and no longer meets that threshold , it shall remain in the scope of the eu ets until the end of the relevant five year period referred to in article 11(1) , second subparagraph , following the change to its production process. ### 1. this directive shall apply to the activities listed in annexes i and iii , and to the of greenhouse gases listed in annex ii.


### 2 % of the total quantity of allowances between 2021 and 2030 shall be auctioned to establish a fund to improve energy efficiency and modernise the energy systems of certain member states (‘the beneficiary member states’) as set out in article 10d (‘the modernisation fund’). the beneficiary member states for this amount of allowances shall be the member states with a gdp per capita at market prices below 60 % of the union average in 2013. the funds corresponding to this quantity of allowances shall be distributed in accordance with part a of annex iib. ### 2 % of the total quantity of allowances between 2021 and 2022 shall be auctioned to establish a fund to improve energy efficiency and modernise the energy systems of certain member states (‘the beneficiary member states’) as set out in article 10d (‘the modernisation fund’).


### in addition , 2 ,5 % of the total quantity of allowances between [year following the entry into force of the directive] and 2030 shall be auctioned for the modernisation fund. the beneficiary member states for this amount of allowances shall be the member states with a gdp per capita at market prices below 65 % of the union average during the period 2016 to 2018. the funds corresponding to this quantity of allowances shall be distributed in accordance with part b of annex iib. ### deleted


### in addition , 2 ,5 % of the total quantity of allowances between [year following the entry into force of the directive] and 2030 shall be auctioned for the modernisation fund. the beneficiary member states for this amount of allowances shall be the member states with a gdp per capita at market prices below 65 % of the union average during the period 2016 to 2018. the funds corresponding to this quantity of allowances shall be distributed in accordance with part b of annex iib. ### in addition , 8 % of the total quantity of allowances between 2021 and 2030 shall be auctioned for the modernisation fund. the beneficiary member states for this amount of allowances shall be the member states with a gdp per capita at market prices below 65 % of the union average during the period 2016 to 2018. the funds corresponding to this quantity of allowances shall be distributed in accordance with part b of annex iib.


### in addition , 2 ,5 % of the total quantity of allowances between [year following the entry into force of the directive] and 2030 shall be auctioned for the modernisation fund. the beneficiary member states for this amount of allowances shall be the member states with a gdp per capita at market prices below 65 % of the union average during the period 2016 to 2018. the funds corresponding to this quantity of allowances shall be distributed in accordance with part b of annex iib. ### in addition , 3 ,5 % of the total quantity of allowances between 2021 and 2030 shall be auctioned for the modernisation fund. the beneficiary member states for this amount of allowances shall be the member states with a gdp per capita at market prices below 65 % of the union average during the period 2016 to 2018. the funds corresponding to this quantity of allowances shall be distributed in accordance with part b of annex iib.


### 3. member states shall determine the use of revenues generated from the auctioning of allowances , except for the revenues established as own resources in accordance with article 311(3) tfeu and entered in the union budget. member states shall use their revenues generated from the auctioning of allowances referred to in paragraph 2 , with the exception of the revenues used for the compensation of indirect carbon costs referred to in article 10a(6) , for one or more of the following: ### 3. member states shall determine the use of revenues generated from the auctioning of allowances. member states shall use their revenues generated from the auctioning of allowances referred to in paragraph 2 in part , with the exception of the revenues used for the compensation of indirect carbon costs referred to in article 10a(6) , for one or more of the following:


### 3. member states shall determine the use of revenues generated from the auctioning of allowances , except for the revenues established as own resources in accordance with article 311(3) tfeu and entered in the union budget. member states shall use their revenues generated from the auctioning of allowances referred to in paragraph 2 , with the exception of the revenues used for the compensation of indirect carbon costs referred to in article 10a(6) , for one or more of the following:; ### 3. member states shall determine the use of revenues generated from the auctioning of allowances. member states shall use 50 % of their revenues generated from the auctioning of allowances referred to in paragraph 2 , with the exception of the revenues used for the compensation of indirect carbon costs referred to in article 10a(6) , for one or more of the following:;


### 3. member states shall determine the use of revenues generated from the auctioning of allowances , except for the revenues established as own resources in accordance with article 311(3) tfeu and entered in the union budget. member states shall use their revenues generated from the auctioning of allowances referred to in paragraph 2 , with the exception of the revenues used for the compensation of indirect carbon costs referred to in article 10a(6) , for one or more of the following:; ### 3. member states shall determine the use of revenues generated from the auctioning of allowances. member states should use at least 50 % of their revenues generated from the auctioning of allowances referred to in paragraph 2 , or the equivalent in financial value of these revenues , with the exception of the revenues used for the compensation of indirect carbon costs referred to in article 10a(6) , for one or more of the following:;


### the following two subparagraphs are inserted after the second subparagraph: ### deleted


### in the case of installations covered by the obligation to conduct an energy audit under article 8(4) of directive 2012/27/eu of the european parliament and of the council(*) [article reference to be updated with the revised directive] , free allocation shall only be granted fully if the recommendations of the audit report are implemented , to the extent that the pay-back time for the relevant investments does not exceed five years and that the costs of those investments are proportionate. otherwise , the amount of free allocation shall be reduced by 25 %. the amount of free allocation shall not be reduced if an operator demonstrates that it has implemented other measures which lead to greenhouse gas emission reductions equivalent to those recommended by the audit report. the measures referred to in the first subparagraph shall be adjusted accordingly. ### deleted


### no free allocation shall be given to installations in sectors or subsectors to the extent they are covered by other measures to address the risk of carbon leakage as established by regulation (eu) …./.. [reference to cbam](**). the measures referred to in the first subparagraph shall be adjusted accordingly ### deleted


### the following paragraph 1a is inserted: ### deleted


### 1a. no free allocation shall be given in relation to the production of products listed in annex i of regulation [cbam] as from the date of application of the carbon border adjustment mechanism. ### deleted


### no free allocation shall be given in relation to the production of products listed in annex i of regulation [cbam] as from the date of application of the carbon border adjustment mechanism. ### free allocation shall be given in relation to the production of product listed in annex i of regulation [cbam] until the commission has positively assessed and tested the effectiveness of the cbam in terms of protection from the carbon leakage risk as well as it has success fully addressed the export competitiveness of the eu products according to the conditions set forth in the articles 30 and 30 bis of regulation [cbam].in any case , free allocation shall continue to be fully granted until the end of 2030.


### no free allocation shall be given in relation to the production of products listed in annex i of regulation [cbam] as from the date of application of the carbon border adjustment mechanism. ### the assignment of free allocations in relation to the production of products listed in annex i of regulation [cbam] shall be gradually reduced as from the actual date of application of the carbon border adjustment mechanism except for production not intended for the european market or processed in activities not covered by this measure.


### by way of derogation from the previous subparagraph , for the first years of operation of regulation [cbam] , the production of these products shall benefit from free allocation in reduced amounts. a factor reducing the free allocation for the production of these products shall be applied (cbam factor). the cbam factor shall be equal to 100 % for the period during the entry into force of [cbam regulation] and the end of 2025 , 90 % in 2026 and shall be reduced by 10 percentage points each year to reach 0 % by the tenth year. ### according to the previous subparagraphs , the production of these products shall benefit from free allocation in reduced amounts as from the year after the cbam has been positively tested. a factor reducing the free allocation for the production of these products shall be applied (cbam factor).


### allowances resulting from the reduction of free allocation shall be made available to support innovation in accordance with article 10a(8).; ### allowances resulting from the reduction of free allocation shall be made available to the sectors concerned through specific sectoral funds to support innovation and the development of new technologies.;


### 365 million allowances from the quantity which could otherwise be allocated for free pursuant to this article , and 85 million allowances from the quantity which could otherwise be auctioned pursuant to article 10 , as well as the allowances resulting from the reduction of free allocation referred to in article 10a(1a) , shall be made available to a fund with the objective of supporting innovation in low-carbon technologies and processes , and contribute to zero pollution objectives (the ‘innovation fund’). allowances that are not issued to aircraft operators due to the closure of aircraft operators and which are not necessary to cover any shortfall in surrenders by those operators , shall also be used for innovation support as referred to in the first subparagraph. ### 365 million allowances from the quantity which could otherwise be allocated for free pursuant to this article , and 85 million allowances from the quantity which could otherwise be auctioned pursuant to article 10 , as well as the allowances resulting from the reduction of free allocation referred to in article 10a(1a) , shall be made available to a fund with the objective of supporting innovation in low-carbon technologies and processes , and contribute to zero pollution objectives (the ‘innovation fund’) and to the development of measures to enhance the competitiveness of the sectors affected through sectoral competitiveness funds (the ‘sectoral competitiveness fund’). allowances that are not issued to aircraft operators due to the closure of aircraft operators and which are not necessary to cover any shortfall in surrenders by those operators , shall also be used for innovation and competitiveness support as referred to in the first subparagraph.


### 365 million allowances from the quantity which could otherwise be allocated for free pursuant to this article , and 85 million allowances from the quantity which could otherwise be auctioned pursuant to article 10 , as well as the allowances resulting from the reduction of free allocation referred to in article 10a(1a) , shall be made available to a fund with the objective of supporting innovation in low-carbon technologies and processes , and contribute to zero pollution objectives (the ‘innovation fund’). allowances that are not issued to aircraft operators due to the closure of aircraft operators and which are not necessary to cover any shortfall in surrenders by those operators , shall also be used for innovation support as referred to in the first subparagraph. ### 365 million allowances from the quantity which could otherwise be allocated for free pursuant to this article , and 85 million allowances from the quantity which could otherwise be auctioned pursuant to article 10 , as well as the allowances resulting from the reduction of free allocation referred to in article 10a(1a) , shall be made available to a fund with the objective of supporting innovation in low-carbon technologies and processes , and contribute to zero pollution objectives (the ‘innovation fund’). special attention shall be given to projects developed by the industry to improve their production processes. allowances that are not issued to aircraft operators due to the closure of aircraft operators and which are not necessary to cover any shortfall in surrenders by those operators , shall also be used for innovation support as referred to in the first subparagraph.


### 365 million allowances from the quantity which could otherwise be allocated for free pursuant to this article , and 85 million allowances from the quantity which could otherwise be auctioned pursuant to article 10 , as well as the allowances resulting from the reduction of free allocation referred to in article 10a(1a) , shall be made available to a fund with the objective of supporting innovation in low-carbon technologies and processes , and contribute to zero pollution objectives (the ‘innovation fund’). allowances that are not issued to aircraft operators due to the closure of aircraft operators and which are not necessary to cover any shortfall in surrenders by those operators , shall also be used for innovation support as referred to in the first subparagraph. ### 365 million allowances from the quantity which could otherwise be allocated for free pursuant to this article , and 85 million allowances from the quantity which could otherwise be auctioned pursuant to article 10 , shall be made available to a fund with the objective of supporting innovation in low-carbon technologies and processes , and contribute to zero pollution objectives (the ‘innovation fund’). allowances that are not issued to aircraft operators due to the closure of aircraft operators and which are not necessary to cover any shortfall in surrenders by those operators , shall also be used for innovation support as referred to in the first subparagraph.


### 365 million allowances from the quantity which could otherwise be allocated for free pursuant to this article , and 85 million allowances from the quantity which could otherwise be auctioned pursuant to article 10 , as well as the allowances resulting from the reduction of free allocation referred to in article 10a(1a) , shall be made available to a fund with the objective of supporting innovation in low-carbon technologies and processes , and contribute to zero pollution objectives (the ‘innovation fund’). allowances that are not issued to aircraft operators due to the closure of aircraft operators and which are not necessary to cover any shortfall in surrenders by those operators , shall also be used for innovation support as referred to in the first subparagraph. ### 85 million allowances from the quantity which could otherwise be allocated for free pursuant to this article , and 365 million allowances from the quantity which could otherwise be auctioned pursuant to article 10 , as well as the allowances resulting from the reduction of free allocation referred to in article 10a(1a) , shall be made available to a fund with the objective of supporting innovation in low-carbon technologies and processes , and contribute to zero pollution objectives (the ‘innovation fund’). allowances that are not issued to aircraft operators due to the closure of aircraft operators and which are not necessary to cover any shortfall in surrenders by those operators , shall also be used for innovation support as referred to in the first subparagraph.


### the innovation fund shall cover the sectors listed in annex i and annex iii , including environmentally safe carbon capture and utilisation (“ccu”) that contributes substantially to mitigating climate change , as well as products substituting carbon intensive ones produced in sectors listed in annex i , and to help stimulate the construction and operation of projects aimed at the environmentally safe capture and geological storage (“ccs”) of co2 , as well as of innovative renewable energy and energy storage technologies; in geographically balanced locations. the innovation fund may also support break-through innovative technologies and infrastructure to decarbonise the maritime sector and for the production of low- and zero-carbon fuels in aviation , rail and road transport. special attention shall be given to projects in sectors covered by the [cbam regulation] to support innovation in low carbon technologies , ccu , ccs , renewable energy and energy storage , in a way that contributes to mitigating climate change. ### the innovation fund shall cover the sectors listed in annex i and annex iii , including environmentally safe carbon capture and utilisation (“ccu”) that contributes substantially to mitigating climate change , as well as products substituting carbon intensive ones produced in sectors listed in annex i , and to help stimulate the construction and operation of projects aimed at the environmentally safe capture and geological storage (“ccs”) of co2 , as well as of innovative renewable energy and energy storage technologies; in geographically balanced locations. likewise , investments developing innovative methods and breakthrough technologies (such as but not limited to direct air capture) in anthropogenic greenhouse gas removal from the atmosphere , and its biological or geological sequestration , or creative utilisation , should be encouraged. investments in hydrogen technologies may , where appropriate , also be encouraged. the innovation fund may also support break-through innovative technologies and infrastructure to decarbonise the maritime and aviation sector and for the production of low- and zero-carbon fuels in aviation , rail and road transport. special attention shall be given to projects in sectors covered by the [cbam regulation] to support innovation in low carbon technologies , ccu , ccs , renewable energy and energy storage , in a way that contributes to mitigating climate change.


### the innovation fund shall cover the sectors listed in annex i and annex iii , including environmentally safe carbon capture and utilisation (“ccu”) that contributes substantially to mitigating climate change , as well as products substituting carbon intensive ones produced in sectors listed in annex i , and to help stimulate the construction and operation of projects aimed at the environmentally safe capture and geological storage (“ccs”) of co2 , as well as of innovative renewable energy and energy storage technologies; in geographically balanced locations. the innovation fund may also support break-through innovative technologies and infrastructure to decarbonise the maritime sector and for the production of low- and zero-carbon fuels in aviation , rail and road transport. special attention shall be given to projects in sectors covered by the [cbam regulation] to support innovation in low carbon technologies , ccu , ccs , renewable energy and energy storage , in a way that contributes to mitigating climate change. ### the innovation fund shall cover the sectors listed in annex i and annex iii , including environmentally safe carbon capture and utilisation (“ccu”) that contributes substantially to mitigating climate change , as well as products substituting carbon intensive ones produced in sectors listed in annex i , and to help stimulate the construction and operation of projects aimed at the environmentally safe capture and geological storage (“ccs”) of co2 , as well as of innovative renewable energy and energy storage technologies; in geographically balanced locations. likewise , the investments in hydrogen technologies shall be encouraged. the innovation fund may also support break-through innovative technologies and infrastructure to decarbonise the maritime sector and for the production of low- and zero-carbon fuels in aviation , rail and road transport. special attention shall be given to projects in sectors covered by the [cbam regulation] to support innovation in low carbon technologies , ccu , ccs , renewable energy and energy storage , in a way that contributes to mitigating climate change.


### projects shall be selected on the basis of objective and transparent criteria , taking into account , where relevant , the extent to which projects contribute to achieving emission reductions well below the benchmarks referred to in paragraph 2. projects shall have the potential for widespread application or to significantly lower the costs of transitioning towards a low-carbon economy in the sectors concerned. projects involving ccu shall deliver a net reduction in emissions and ensure avoidance or permanent storage of co2. in the case of grants provided through calls for proposals , up to 60 % of the relevant costs of projects may be supported , out of which up to 40 % need not be dependent on verified avoidance of greenhouse gas emissions , provided that pre-determined milestones , taking into account the technology deployed , are attained. in the case of support provided through competitive bidding and in the case of technical assistance support , up to 100 % of the relevant costs of projects may be supported. ### projects shall be selected on the basis of objective and transparent criteria , taking into account , the need to ensure the fair geographical distribution of the projects , the level of emissions in a given member state to define relevant emissions savings achieved by a given project , and where relevant , the extent to which projects contribute to achieving emission reductions well below the benchmarks referred to in paragraph 2. projects shall have the potential for widespread application or to significantly lower the costs of transitioning towards a low-carbon economy in the sectors concerned. projects involving ccu shall deliver a net reduction in emissions and ensure avoidance or permanent storage of co2. in the case of grants provided through calls for proposals , up to 60 % of the relevant costs of projects may be supported , out of which up to 40 % need not be dependent on verified avoidance of greenhouse gas emissions , provided that pre-determined milestones , taking into account the technology deployed , are attained. in the case of support provided through competitive bidding and in the case of technical assistance support , up to 100 % of the relevant costs of projects may be supported.


### projects shall be selected on the basis of objective and transparent criteria , taking into account , where relevant , the extent to which projects contribute to achieving emission reductions well below the benchmarks referred to in paragraph 2. projects shall have the potential for widespread application or to significantly lower the costs of transitioning towards a low-carbon economy in the sectors concerned. projects involving ccu shall deliver a net reduction in emissions and ensure avoidance or permanent storage of co2. in the case of grants provided through calls for proposals , up to 60 % of the relevant costs of projects may be supported , out of which up to 40 % need not be dependent on verified avoidance of greenhouse gas emissions , provided that pre-determined milestones , taking into account the technology deployed , are attained. in the case of support provided through competitive bidding and in the case of technical assistance support , up to 100 % of the relevant costs of projects may be supported. ### projects shall be selected on the basis of objective and transparent criteria , taking into account the need to ensure the fair geographical distribution of the projects , the level of emissions in a given member state to define relevant emissions savings achieved by a given project and , where relevant , the extent to which projects contribute to achieving emission reductions well below the benchmarks referred to in paragraph 2. projects shall have the potential for widespread application or to significantly lower the costs of transitioning towards a low-carbon economy in the sectors concerned. projects involving ccu shall deliver a net reduction in emissions and ensure avoidance or permanent storage of co2. in the case of grants provided through calls for proposals , up to 60 % of the relevant costs of projects may be supported , out of which up to 40 % need not be dependent on verified avoidance of greenhouse gas emissions , provided that pre-determined milestones , taking into account the technology deployed , are attained. in the case of support provided through competitive bidding and in the case of technical assistance support , up to 100 % of the relevant costs of projects may be supported.


### a fund to support investments proposed by the beneficiary member states , including the financing of small-scale investment projects , to modernise energy systems and improve energy efficiency shall be established for the period from 2021 to 2030 (the ‘modernisation fund’). the modernisation fund shall be financed through the auctioning of allowances as set out in article 10 , for the beneficiary member states set out therein. ### a fund to support investments proposed by the beneficiary member states , including the financing of small-scale investment projects , to modernise energy systems and improve energy efficiency shall be established for the period from 2021 to 2030 (the ‘modernisation fund’). the modernisation fund shall be financed through the auctioning of allowances as set out in article 10 , for the beneficiary member states set out therein. this fund will be accompanied by a fund to support competitiveness , enabling the sectors affected to invest in r&d with a view to reducing the price differential between conventional and alternative fuels (the ‘sectoral competitiveness fund’).


### a fund to support investments proposed by the beneficiary member states , including the financing of small-scale investment projects , to modernise energy systems and improve energy efficiency shall be established for the period from 2021 to 2030 (the ‘modernisation fund’). the modernisation fund shall be financed through the auctioning of allowances as set out in article 10 , for the beneficiary member states set out therein. ### a fund to support investments proposed by the beneficiary member states , including the financing of small-scale investment projects , to modernise energy systems and improve energy efficiency shall be established for the period from 2021 to 2022 (the ‘modernisation fund’). the modernisation fund shall be financed through the auctioning of allowances as set out in article 10.


### the investments supported shall be consistent with the aims of this directive , as well as the objectives of the communication from the commission of 11 december 2019 on the european green deal (*) and regulation (eu) 2021/1119 of the european parliament and of the council (**) and the long-term objectives as expressed in the paris agreement. no support from the modernisation fund shall be provided to energy generation facilities that use fossil fuels.”; ### the investments supported shall be consistent with the aims of this directive , as well as the regulation (eu) 2021/1119 of the european parliament and of the council (**) and the long-term objectives as expressed in the paris agreement. no support from the modernisation fund shall be provided to energy generation facilities that use fossil fuels , except for:


### the investments supported shall be consistent with the aims of this directive , as well as the objectives of the communication from the commission of 11 december 2019 on the european green deal (*) and regulation (eu) 2021/1119 of the european parliament and of the council (**) and the long-term objectives as expressed in the paris agreement. no support from the modernisation fund shall be provided to energy generation facilities that use fossil fuels.”; ### the investments supported shall be consistent with the aims of this directive , as well as the objectives of the communication from the commission of 11 december 2019 on the european green deal (*) and regulation (eu) 2021/1119 of the european parliament and of the council (**) and the long-term objectives as expressed in the paris agreement. no support from the modernisation fund shall be provided to energy generation facilities that use solid fossil fuels.”;


### 2. at least 80 % of the financial resources from the modernisation fund shall be used to support investments in the following: ### 2. at least 80 % of the financial resources from the modernisation fund and competitiveness fund shall be used to support investments in the following:


### 2. at least 80 % of the financial resources from the modernisation fund shall be used to support investments in the following: ### 2. at least 70 % of the financial resources from the modernisation fund shall be used to support investments in the following:


### in order to provide further incentives for reducing greenhouse gas emissions and improving energy efficiency , the determined union-wide ex-ante benchmarks shall be reviewed before the period from 2026 to 2030 in view of potentially modifying the definitions and system boundaries of existing product benchmarks.; ### in order to provide further incentives for reducing greenhouse gas emissions and improving energy efficiency , the determined union-wide ex-ante benchmarks shall be reviewed before the period from 2026 to 2030 in view of potentially modifying the definitions and system boundaries of existing product benchmarks and district heating benchmark. by way of derogation from subparagraph 1 , the ratios for district heating to be determined ensure the allocation of allowances in a way that provides an incentive to reduce greenhouse gas emissions. these indicators for the entire period referred to in article 11 , second paragraph , takes the value specified in commission implementing regulation (eu) 2021/447 for the heat benchmark.;


### in order to provide further incentives for reducing greenhouse gas emissions and improving energy efficiency , the determined union-wide ex-ante benchmarks shall be reviewed before the period from 2026 to 2030 in view of potentially modifying the definitions and system boundaries of existing product benchmarks.; ### deleted


### for the period from 2026 to 2030 , the benchmark values shall be determined in the same manner as set out in points (a) and (d) on the basis of information submitted pursuant to article 11 for the years 2021 and 2022 and on the basis of applying the annual reduction rate in respect of each year between 2008 and 2028.; ### for the period from 2026 to 2030 , the benchmark values shall be determined in the same manner as set out in points (a) and (b) on the basis of information submitted pursuant to article 11 for the years 2021 and 2022 and on the basis of applying the annual reduction rate in respect of each year between 2008 and 2028. installations where emissions from combustion of biomass that complies with the criteria set out pursuant to article 14 contribute to more than 95 % of the total greenhouse gas emissions in years 2021 and 2022 shall not be taken into account in determination of benchmark values. the calculation of the annual reduction rate of each product benchmark shall only consider installations that were included in the initial determination of the respective product benchmark even though more installations may receive free allocation from such product benchmarks as a result of the modification of benchmark definitions and system boundaries pursuant to article 10a(1) , fifth subparagraph.;


### for the period from 2026 to 2030 , the benchmark values shall be determined in the same manner as set out in points (a) and (d) on the basis of information submitted pursuant to article 11 for the years 2021 and 2022 and on the basis of applying the annual reduction rate in respect of each year between 2008 and 2028.; ### for the period from 2026 to 2030 , the benchmark values shall be determined in the same manner as set out in points (a) and (d) on the basis of information submitted pursuant to article 11 for the years 2021 and 2022 and on the basis of applying the annual reduction rate in respect of each year between 2008 and 2028. installations where emissions from combustion of biomass that complies with the criteria set out pursuant to article 14 contribute to more than 95 % of the total greenhouse gas emissions in years 2021 and 2022 shall not be taken into account in determination of benchmark values. the calculation of the annual reduction rate of each product benchmark shall only consider installations that were included in the initial determination of the respective product benchmark even though more installations may receive free allocation from such product benchmarks as a result of the modification of benchmark definitions and system boundaries pursuant to article 10a(1) , fifth subparagraph;


### where the annual reduction rate exceeds 2 ,5 % or is below 0 ,2 % , the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant , in respect of each year between 2008 and 2028.; ### where the annual reduction rate exceeds 2 ,5 % or is below 0 ,2 % , the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant , in respect of each year between 2008 and 2028 , except in case of heat benchmark for district heating , whose maximum annual reduction rate should be defined in line with the district heating sector decarbonisation commitments until 2030 and should not exceed 1 ,6%.;


### where the annual reduction rate exceeds 2 ,5 % or is below 0 ,2 % , the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant , in respect of each year between 2008 and 2028.; ### where the annual reduction rate exceeds 1 ,9 % or is below 0 ,2 % , the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant , in respect of each year between 2008 and 2028. by way of derogation from the previous point , the maximum annual reduction rate of the fuel and heat fall back benchmarks shall remain at 1 ,6 %.;


### where the annual reduction rate exceeds 2 ,5 % or is below 0 ,2 % , the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant , in respect of each year between 2008 and 2028.; ### where the annual reduction rate exceeds 1 ,6 % or is below 0 ,2 % , the benchmark values for the period from 2026 to 2030 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant , in respect of each year between 2008 and 2028.


### (iii) the fourth subparagraph is replaced by the following: ### deleted


### by way of derogation regarding the benchmark values for aromatics and syngas , those benchmark values shall be adjusted by the same percentage as the refineries benchmarks in order to preserve a level playing field for producers of those products.; ### by way of derogation regarding the benchmark values for aromatics , hydrogen and syngas , those benchmark values shall be adjusted by the same percentage as the refineries benchmarks in order to preserve a level playing field for producers of those products.;


### member states should adopt financial measures in accordance with the second and fourth subparagraphs in favour of sectors or subsectors which are exposed to a genuine risk of carbon leakage due to significant indirect costs that are actually incurred from greenhouse gas emission costs passed on in electricity prices , provided that such financial measures are in accordance with state aid rules , and in particular do not cause undue distortions of competition in the internal market. the financial measures adopted should not compensate indirect costs covered by free allocation in accordance with the benchmarks established pursuant to paragraph 1. where a member state spends an amount higher than the equivalent of 25 % of their auction revenues of the year in which the indirect costs were incurred , it shall set out the reasons for exceeding that amount.; ### member states should adopt financial measures in accordance with the second and fourth subparagraphs in favour of sectors or subsectors which are exposed to a genuine risk of carbon leakage due to significant indirect costs that are actually incurred from greenhouse gas emission costs passed on in electricity prices , provided that such financial measures are in accordance with state aid rules , and in particular do not cause undue distortions of competition in the internal market. the financial measures adopted should not compensate indirect costs covered by free allocation in accordance with the benchmarks established pursuant to paragraph 1. where a member state spends an amount higher than the equivalent of 25 % of their auction revenues of the year in which the indirect costs were incurred , it should set out the reasons for exceeding that amount.;


### member states should adopt financial measures in accordance with the second and fourth subparagraphs in favour of sectors or subsectors which are exposed to a genuine risk of carbon leakage due to significant indirect costs that are actually incurred from greenhouse gas emission costs passed on in electricity prices , provided that such financial measures are in accordance with state aid rules , and in particular do not cause undue distortions of competition in the internal market. the financial measures adopted should not compensate indirect costs covered by free allocation in accordance with the benchmarks established pursuant to paragraph 1. where a member state spends an amount higher than the equivalent of 25 % of their auction revenues of the year in which the indirect costs were incurred , it shall set out the reasons for exceeding that amount.; ### member states shall adopt financial measures in accordance with the second and fourth subparagraphs in favour of sectors or subsectors which are exposed to a genuine risk of carbon leakage due to significant indirect costs that are actually incurred from greenhouse gas emission costs passed on in electricity prices , provided that such financial measures are in accordance with state aid rules , and in particular do not cause undue distortions of competition in the internal market. the financial measures adopted should not compensate indirect costs covered by free allocation in accordance with the benchmarks established pursuant to paragraph 1. where a member state spends an amount higher than the equivalent of 25 % of their auction revenues of the year in which the indirect costs were incurred , it shall set out the reasons for exceeding that amount.;


### in paragraph 4 , the first sentence is replaced by the following: ### deleted


### 4. the commission is empowered to adopt delegated acts in accordance with article 23 to supplement this directive concerning the timing , administration and other aspects of auctioning , including the modalities for the transfer of a share of revenues to the union budget , in order to ensure that it is conducted in an open , transparent , harmonised and non-discriminatory manner. ### 4. the commission is empowered to adopt delegated acts in accordance with article 23 to supplement this directive concerning the timing , administration and other aspects of auctioning , in order to ensure that it is conducted in an open , transparent , harmonised and non-discriminatory manner.


### (61) a well-functioning , reformed eu ets comprising an instrument to stabilise the market is a key means for the union to reach its agreed target for 2030 and the commitments under the paris agreement. the market stability reserve seeks to address the imbalance between supply and demand of allowances in the market. article 3 of decision (eu) 2015/1814 provides that the reserve is to be reviewed three years after it becomes operational , paying particular attention to the percentage figure for the determination of the number of allowances to be placed in the market stability reserve , the threshold for the total number of allowances in circulation (tnac) that determines the intake of allowances , and the number of allowances to be released from the reserve. ### (61) a well-functioning , reformed eu ets comprising an instrument to stabilise the market is a key means for the union to reach its agreed target for 2030 and the commitments under the paris agreement. the market stability reserve seeks to address the imbalance between supply and demand of allowances in the market. article 3 of decision (eu) 2015/1814 provides that the reserve is to be reviewed three years after it becomes operational , paying particular attention to the percentage figure for the determination of the number of allowances to be placed in the market stability reserve , the threshold for the total number of allowances in circulation (tnac) that determines the intake of allowances , and the number of allowances to be released from the reserve. the amount of allowances held by entities that is not used to cover obligations under the eu ets should not be included in the tnac calculations to trigger market stability reserve thresholds.


### (62) considering the need to deliver a stronger investment signal to reduce emissions in a cost-efficient manner and with a view to strengthening the eu ets , decision (eu) 2015/1814 should be amended so as to increase the percentage rate for determining the number of allowances to be placed each year in the market stability reserve. in addition , for lower levels of the tnac , the intake should be equal to the difference between the tnac and the threshold that determines the intake of allowances. this would prevent the considerable uncertainty in the auction volumes that results when the tnac is close to the threshold , and at the same time ensure that the surplus reaches the volume bandwidth within which the carbon market is deemed to operate in a balanced manner. ### (62) in addition , for lower levels of the tnac , the intake should be equal to the difference between the tnac and the threshold that determines the intake of allowances. this would prevent the considerable uncertainty in the auction volumes that results when the tnac is close to the threshold , and at the same time ensure that the surplus reaches the volume bandwidth within which the carbon market is deemed to operate in a balanced manner.


### ‘emissions’ means the release of greenhouse gases from sources in an installation or the release from an aircraft performing an aviation activity listed in annex i or from ships performing a maritime transport activity listed in annex i of the gases specified in respect of that activity , or the release of greenhouse gases corresponding to the activity referred to in annex iii;; ### ‘emissions’ means the release of greenhouse gases into the atmosphere from sources in an installation or the release from an aircraft performing an aviation activity listed in annex i or from ships performing a maritime transport activity listed in annex i of the gases specified in respect of that activity , or the release of greenhouse gases corresponding to the activity referred to in annex iii;;


### ‘shipping company’ means the shipowner or any other organisation or person , such as the manager or the bareboat charterer , that has assumed the responsibility for the operation of the ship from the shipowner and that , on assuming such responsibility , has agreed to take over all the duties and responsibilities imposed by the international management code for the safe operation of ships and for pollution prevention , set out in annex i to regulation (ec) no 336/2006 of the european parliament and of the council(*); ### ‘shipping company’ means the shipowner or any other organisation or person , such as the manager or the bareboat charterer , that has assumed the responsibility for the operation of the ship from the shipowner and that , on assuming such responsibility , has agreed to take over all the duties and responsibilities imposed by the international management code for the safe operation of ships and for pollution prevention , set out in annex i to regulation (ec) no 336/2006 of the european parliament and of the council(*); where the ultimate responsibility for the acquisition of the fuel or the operation of the ship is assumed by a different entity as a consequence of a contractual arrangement , that entity shall be responsible for covering all the costs arising from the implementation of this directive


### ‘regulated entity’ for the purposes of chapter iva shall mean any natural or legal person , except for any final consumer of the fuels , that engages in the activity referred to in annex iii and that falls within one of the following categories: ### deleted


### having regard to the treaty on the functioning of the european union , and in particular article 192(1) thereof , ### having regard to the treaty on the functioning of the european union , and in particular article 192(2) thereof ,


### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. in particular , the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec of the european parliament and the council31should provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. combined with other measures , this should , in the medium to long term , reduce the costs for buildings and road transport , and provide new opportunities for job creation and investment. ### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. in particular , the proposal to include greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec of the european parliament and the council31 , although intended to provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions , will place an additional burden on those member states whose energy mix is based , for historical and geological reasons , on fossil fuels.


### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. in particular , the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec of the european parliament and the council31should provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. combined with other measures , this should , in the medium to long term , reduce the costs for buildings and road transport , and provide new opportunities for job creation and investment. ### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. in particular , the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec of the european parliament and the council31 , although intended to provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions , will place an additional burden on member states whose energy mix is based , for historical and geological reasons , on fossil fuels.


### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. in particular , the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec of the european parliament and the council31 should provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. combined with other measures , this should , in the medium to long term , reduce the costs for buildings and road transport , and provide new opportunities for job creation and investment. ### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. in particular , the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec of the european parliament and the council31 should provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. combined with other measures , this is likely to increase the costs for buildings and road transport , and create obstacles for job creation and investment.


### (11) therefore , a part of the revenues generated by the inclusion of building and road transport into the scope of directive 2003/87/ec should be used to address the social impacts arising from that inclusion , for the transition to be just and inclusive , leaving no one behind. ### (11) therefore , a part of the revenues generated by the eu ets under directive 2003/87/ec should be used to address the social impacts arising from costs generated by union climate policy , for the transition to be just and inclusive , leaving no one behind.


### (11) therefore , a part of the revenues generated by the inclusion of building and road transport into the scope of directive 2003/87/ec should be used to address the social impacts arising from that inclusion , for the transition to be just and inclusive , leaving no one behind. ### (11) therefore , a part of the revenues generated by the eu ets within into the scope of directive 2003/87/ec should be used to address the social impacts arising from costs generated by the eu climate policy for the transition to be just and inclusive , leaving no one behind.


### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users. ### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the costs generated by the eu climate change policies on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users.