### operators of retransmission services offered on satellite , digital terrestrial , closed circuit ip - based , mobile and similar networks , provide services which are equivalent to those provided by operators of cable retransmission services when they retransmit simultaneously , in an unaltered and unabridged manner , for reception by the public , an initial transmission from another member state of television or radio programmes , where this initial transmission is by wire or over the air , including by satellite but excluding online transmissions , and intended for reception by the public . they should therefore be within the scope of this regulation and benefit from the mechanism introducing mandatory collective management of rights . retransmission services which are offered on the open internet should be excluded from the scope of this regulation as those services have different characteristics . they are not linked to any particular infrastructure and their ability to ensure a controlled environment is limited when compared for example to cable or closed circuit ip - based networks . ### operators of retransmission services offered on satellite , digital terrestrial , both open and closed circuit ip - based , mobile and similar networks , provide services which are equivalent to those provided by operators of cable retransmission services when they retransmit simultaneously , in an unaltered and unabridged manner , for reception by the public , an initial transmission from another member state of television or radio programmes , where this initial transmission is by wire or over the air , including by satellite , and intended for reception by the public . they should therefore be within the scope of this regulation and benefit from the mechanism introducing mandatory collective management of rights . ip - based retransmission services , both offered on closed - circuit networks and on the open internet , should be included in the scope of this regulation and benefit from the mechanism introducing mandatory collective management of rights as long as they ensure a controlled environment comparable to closed circuit networks and can show that their services are provided to a clearly - definable group of subscribers or registered users . the inclusion of such services is crucial for allowing , in line with consumer expectations , portability of such services within the member state of residence , as well as beyond , through the mechanism established by regulation 2017 / . . . of the european parliament and of the council 1a . __________________ 1a proposal for a regulation of the european parliament and of the council on ensuring the cross - border portability of online content services in the internal market ) .


### this regulation respects fundamental rights and observes the principles recognised in the charter of fundamental rights of the european union . whilst there may be an interference with the exercise of the rights of right holders insofar as mandatory collective management is required for the exercise of the right of communication to the public with regard to retransmission services , it is necessary to prescribe such a condition in a targeted manner for specific services and in order to allow more widespread cross - border dissemination of television and radio programmes by facilitating the clearance of these rights . ### this regulation respects fundamental rights and observes the principles recognised in the charter of fundamental rights of the european union . without prejudice to freedom of contract , collective management may take place for the exercise of the right of communication to the public with regard to retransmission services .


### operators of retransmission services offered on satellite , digital terrestrial , closed circuit ip - based , mobile and similar networks , provide services which are equivalent to those provided by operators of cable retransmission services when they retransmit simultaneously , in an unaltered and unabridged manner , for reception by the public , an initial transmission from another member state of television or radio programmes , where this initial transmission is by wire or over the air , including by satellite but excluding online transmissions and intended for reception by the public . they should therefore be within the scope of this regulation and benefit from the mechanism introducing mandatory collective management of rights . retransmission services which are offered on the open internet should be excluded from the scope of this regulation as those services have different characteristics . they are not linked to any particular infrastructure and their ability to ensure a controlled environment is limited when compared for example to cable or closed circuit ip - based networks . ### operators of retransmission services offered on satellite , digital terrestrial , closed circuit ip - based , mobile and similar networks and via an internet access service in accordance with regulation no 2015 / 2120 of the european parliament and of the council1a , provide services that are equivalent to those provided by operators of cable retransmission services when they retransmit simultaneously , in an unaltered and unabridged manner , for reception by the public , an initial transmission from another member state of television or radio programmes , where this initial transmission is by wire or over the air , including by satellite , as well as online transmissions , and intended for reception by the public . they should therefore be within the scope of this regulation and benefit from the mechanism introducing mandatory collective management of rights . retransmission services that are offered on the open internet should only be excluded from the scope of this regulation if they cannot ensure a closed environment when compared for example to cable or closed circuit ip - based networks . _________________ 1a regulation 2015 / 2120 of the european parliament and of the council of 25 november 2015 laying down measures concerning open internet access and amending directive 2002 / 22 / ec on universal service and users’ rights relating to electronic communications networks and services and regulation no 531 / 2012 on roaming on public mobile communications networks within the union , oj l 310 , 26 . 11 . 2015 , p . 1 .


### a number of barriers hinder the provision of online services which are ancillary to broadcasts and the provision of retransmission services and thereby the free circulation of television and radio programmes within the union . broadcasting organisations transmit daily many hours of news , cultural , political , documentary or entertainment programmes . these programmes incorporate a variety of content such as audiovisual , musical , literary or graphic works , which is protected by copyright and / or related rights under union law . that results in a complex process to clear rights from a multitude of right holders and for different categories of works and other protected subject matter . often the rights need to be cleared in a short time - frame , in particular when preparing programmes such as news or current affairs . in order to make their online services available across borders , broadcasting organisations need to have the required rights to works and other protected subject matter for all the relevant territories which further increases the complexity of the rights ' clearance . ### a number of barriers hinder the provision of online services which are ancillary to broadcasts and the provision of retransmission services and thereby the free circulation of television and radio programmes within the union . broadcasting organisations transmit daily many hours of news , cultural , political , documentary or entertainment programmes . these programmes incorporate a variety of content such as audiovisual , musical , literary or graphic works , which is protected by copyright and / or related rights under union law . that results in a complex process to clear rights from a multitude of right holders and for different categories of works and other protected subject matter . often the rights need to be cleared in a short time - frame , in particular when preparing programmes such as news or current affairs . in order to make their online services available across borders , broadcasting organisations need to have the acquired rights to works and other protect subject matter for all the relevant territories .


### since the provision of , the access to or the use of an ancillary online service is deemed to occur solely in the member state in which the broadcasting organisation has its principal establishment , while de facto the ancillary online service can be provided across borders to other member states , it is necessary to ensure that in arriving at the amount of the payment to be made for the rights in question , the parties should take into account all aspects of the ancillary online service such as the features of the service , the audience , including the audience in the member state in which the broadcasting organisation has its principal establishment and in other member states in which the ancillary online service is accessed and used , and the language version . ### since the provision of , the access to or the use of an ancillary online service is deemed to occur solely in the member state in which the broadcasting organisation has its principal establishment , while de facto the ancillary online service can be provided across borders to other member states , it is necessary to ensure that in arriving at the amount of the payment to be made for the rights in question , the parties should use objective criteria and take into account all aspects of the ancillary online service such as the features of the service , the actual audience , including the audience in the member state in which the broadcasting organisation has its principal establishment and in other member states in which the ancillary online service is accessed and used , and the language version .


### it shall apply from [ 6 months following the day of its publication , to be inserted by opoce ] . ### it shall apply from [ 18 months following the day of its publication , to be inserted by opoce ] .


### support the design and delivery of long - term trainings and courses for students , it professionals and the workforce ; ### support the design and delivery of long - term trainings and courses for students , ict professionals and the workforce ;


### a high level of health protection through the food supply chain is necessary to allow the internal market to operate efficiently . a safe and sustainable food supply chain is a prerequisite for society and for the internal market . cross border health crises and food scares disrupt the functioning of the internal market by limiting the movements of persons and goods and disrupting production . ### a high level of health protection through the food supply chain is necessary to allow the internal market to operate efficiently . a safe and sustainable food supply chain is a prerequisite for society and for the internal market . cross border health crises , i . e . avian influenza or african swine fever , and food scares disrupt the functioning of the internal market by limiting the movements of persons and goods and disrupting production .


### to support and promote judicial training , with a view to fostering a common legal , judicial and rule of law culture ; ### to support and promote judicial training ;


### these rights and values must continue to be promoted and enforced , shared among the citizens and peoples within the union and be at the heart of europe’s societies , therefore , a new justice , rights and values fund , comprising the rights and values and the justice programmes shall be created in the union budget . at a time where european societies are confronted with extremism , radicalism and divisions , it is more important than ever to promote , strengthen and defend justice , rights and eu values : human rights , respect for human dignity , freedom , democracy , equality , the rule of law . this will have profound and direct implications for political , social , cultural and economic life in the eu . as a part of the new fund , the rights and values programme will bring together the 2014 - 2020 rights , equality and citizenship programme established by regulation no 1381 / 2013 of the european parliament and of the council10 and the europe for citizens programme established by regulation no 390 / 2014 of the council11 . the justice programme will continue to support the development of an integrated european justice area and cross - border cooperation , in continuity with the 2014 - 2020 justice programme established by regulation no 1381 / 2013 of the european parliament and of the council12 . _________________ 10 regulation no 1381 / 2013 of the european parliament and of the council of 17 december 2013 establishing a rights , equality and citizenship programme for the period 2014 to 2020 11 council regulation no 390 / 2014 of 14 april 2014 establishing the ‘ europe for citizens’ programme for the period 2014 - 2020 12 regulation no 1381 / 2013 of the european parliament and of the council of 17 december 2013 establishing a rights , equality and citizenship programme for the period 2014 to 2020 . ### these rights and values must continue to be promoted and enforced , shared among the citizens and peoples within the union and be at the heart of europe’s societies , therefore , a new justice , rights and values fund , comprising the rights and values and the justice programmes shall be created in the union budget . as a part of the new fund , the rights and values programme will bring together the 2014 - 2020 rights , equality and citizenship programme established by regulation no 1381 / 2013 of the european parliament and of the council10 and the europe for citizens programme established by regulation no 390 / 2014 of the council11 . the justice programme will continue to support the development of an integrated european justice area and cross - border cooperation , in continuity with the 2014 - 2020 justice programme established by regulation no 1381 / 2013 of the european parliament and of the council12 . _________________ 10 regulation no 1381 / 2013 of the european parliament and of the council of 17 december 2013 establishing a rights , equality and citizenship programme for the period 2014 to 2020 11 council regulation no 390 / 2014 of 14 april 2014 establishing the ‘ europe for citizens’ programme for the period 2014 - 2020 12 regulation no 1381 / 2013 of the european parliament and of the council of 17 december 2013 establishing a rights , equality and citizenship programme for the period 2014 to 2020 .


### several member states have been undergoing and continue to undergo adjustment processes to correct macroeconomic imbalances accumulated in the past and many are facing the challenge of low potential growth . the union has identified the implementation of structural reforms among its policy priorities to set the recovery on a sustainable path , unlock the growth potential to strengthen the adjustment capacity , and support the process of convergence . ### several member states have been undergoing and continue to undergo adjustment processes and many of them , mainly southern european countries such as greece , italy , portugal spain and cyprus , are facing the challenge of low potential growth . the union has identified the implementation of structural reforms among its policy priorities , which , as shown by the example of greece , spain and portugal , have meant poverty , distress and social deprivation for millions .


### in addition to the financial envelope set out in article 9 , the programme may be financed through additional contributions from member states . ### in addition to the financial envelope set out in article 9 , the programme may be financed through additional voluntary contributions from member states .


### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to prepare and implement growth - enhancing administrative and structural reforms , including through assistance for the efficient and effective use of the union funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , job creation , boosting europe ' s competitiveness and stimulating investment in the real economy . ### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to design and implement growth - enhancing structural reforms , including through assistance for the efficient and effective use of the union funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , job creation , boosting europe ' s competitiveness and stimulating investment in the real economy .


### member states should be able to request support from the commission under the programme in relation to the implementation of reforms in the context of economic governance processes , in particular of country specific recommendations in the context of the european semester , to actions related to the implementation of union law , as well as in relation to the implementation of economic adjustment programmes . they should also be able to request support in relation to reforms undertaken at their own initiative , in order to achieve sustainable investment , growth and job creation . ### member states should be able to request technical support from the commission under the programme in relation to the design and implementation of structural reforms in the context of economic governance processes , in particular of country specific recommendations in the context of the european semester , to actions related to the implementation of union law , as well as in relation to the implementation of economic adjustment programmes . they should also be able to request technical support in relation to structural reforms undertaken at their own initiative , in order to achieve sustainable investment , enhance growth and job creation and boost competitiveness .


### to assist the initiatives of national authorities to design their reforms according to priorities , taking into account initial conditions and expected socio - economic impacts ; ### to assist the initiatives of national authorities to design and implement their reforms according to priorities , taking into account initial conditions and expected socio - economic impacts ;


### further to a dialogue with the requesting member state , including in the context of the european semester , the commission should analyse the request , taking into account the principles of transparency , equal treatment and sound financial management and determine the support to be provided based on urgency , breadth and depth of the problems as identified , support needs in respect of the policy areas envisaged , analysis of socioeconomic indicators , and the general administrative capacity of the member state . the commission should also , in close cooperation with the member state concerned , identify the priority areas , the scope of the support measures to be provided and the global financial contribution for such support , taking into account the existing actions and measures financed by union funds or other union programmes . ### further to a dialogue with the requesting member state , including in the context of the european semester , the commission should analyse the request , taking into account the principles of transparency , equal treatment , subsidiarity and sound financial management and determine the technical support to be provided based on urgency , breadth and depth of the problems as identified , support needs in respect of the policy areas envisaged , analysis of socioeconomic indicators , the added value of the envisaged structural reforms for the union as a whole and the general administrative capacity of the member state . the commission should also , in close cooperation with the member state concerned , identify the priority areas , the scope of the support measures to be provided and the global financial contribution for such support , taking into account the existing actions and measures financed by union funds or other union programmes .


### the union has a long - lasting experience on providing specific support to national administrations and other authorities of member states as regards capacity building and similar actions in certain sectors and in relation to the implementation of cohesion policy . the experience gained by the union in assisting national authorities carrying out reforms should be used in order to enhance the capacity of the union to provide support to member states . comprehensive and integrated action is indeed necessary in order to provide support to those member states that are undertaking growth - enhancing reforms and request assistance from the union in this respect . ### the way in which the union has been operating over the years shows that it has no long - lasting experience on providing specific support to national administrations and other authorities of member states as regards capacity building and similar actions in certain sectors and in relation to the implementation of cohesion policy .


### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to prepare and implement growth - enhancing administrative and structural reforms , including through assistance for the efficient and effective use of the union funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , job creation , boosting europe ' s competitiveness and stimulating investment in the real economy . ### against this background , structural reform support programmes such as the memorandum programmes have demonstrated , especially in greece and portugal , that they contribute neither to growth or to greater economic prosperity in the member states but are , on the contrary , massively swelling the ranks of the unemployed , aggravating social inequalities and leaving millions of eu citizens destitute .


### to assist the national authorities to enhance the efficiency and effectiveness of human resources management , where appropriate , through definition of clear responsibilities and increase of professional knowledge and skills . ### to assist the national authorities to enhance their human resources , including through definition of clear responsibilities and increase of professional knowledge and skills .


### to support the efforts of national authorities to define and implement appropriate processes and methodologies by taking into account good practices and lessons learned by other countries in addressing similar situations ; ### to support national authorities to design and implement their processes and methodologies , taking into account good practices and lessons learned by other countries in addressing similar situations ;


### member states may benefit from support in addressing challenges as regards the design and implementation of structural reforms . these challenges may be dependent on various factors , including limited administrative and institutional capacity or inadequate application and implementation of union legislation . ### member states have not benefited from support in addressing challenges as regards the design and implementation of structural reforms . on the contrary , these reforms have massively swelled the ranks of the unemployed and helped social inequalities to take hold within the eu , while leaving increasing numbers of citizens destitute by the day .


### support under the programme should be provided by the commission upon request by a member state , in areas such as budget and taxation , public function , institutional and administrative reforms , the justice system , anti - fraud , anti - corruption and anti - money laundering , business environment , private sector development , investment , competition , public procurement , privatization processes , access to finance , investment , trade , sustainable development , innovation , education and training , labour policies , public health , asylum , migration policies , agriculture and rural development and financial sector policies . ### under the programme , member states seeking to apply for commission support should always have the support of the public and business stakeholders .


### reforms are by their very nature complex processes that require a complete chain of highly - specialised knowledge and skills . addressing structural reforms in a variety of public policy areas is challenging since their benefits often take time to materialise . therefore , early and efficient design and implementation is crucial , be it for crisis - struck or structurally - weak economies . in this context , the provision of support by the union in the form of technical assistance has been crucial in supporting the economic adjustment of greece and cyprus in the last years . ### reforms are by their very nature complex processes and should be socially balanced and for that reason , account should always be taken of the needs of the public and of local and professional stakeholders before their entry into force .


### in the light of persistently high levels of youth unemployment and inactivity in a number of member states and regions , in particular affecting young people who are neither in employment , nor in education or training , it is necessary that those member states continue to invest sufficient resources of the esf + strand under shared management towards actions to promote youth employment including through the implementation of youth guarantee schemes . building on the actions supported by the youth employment initiative in the 2014 - 2020 programming period targeting individual persons , member states should further promote employment and education reintegration pathways and outreach measures for young people by prioritising , where relevant , long - term unemployed , inactive and disadvantaged young people including through youth work . member states should also invest in measures aimed at facilitating school - to - work transition as well as reforming and adapting employment services with a view to providing tailor - made support to young people . member states concerned should therefore allocate at least 10% of their national resources of the esf + strand under shared management to support youth employability . ### in the light of persistently high levels of youth unemployment and inactivity in a number of member states and regions , in particular affecting young people who are neither in employment , nor in education or training , it is necessary that those member states continue to invest sufficient resources of the esf + strand under shared management towards actions to promote youth employment including through the implementation of youth guarantee schemes , if these programmes have proven to be successful according to external auditors . monitoring of programmes and exchange of best practise should be a focal point of the esf + in order to maximise the efficiency of funding . building on the actions supported by the youth employment initiative in the 2014 - 2020 programming period targeting individual persons , member states should further promote employment and education reintegration pathways and outreach measures for young people by prioritising , where relevant , long - term unemployed , inactive and disadvantaged young people including through youth work . member states should also invest in measures aimed at facilitating school - to - work transition as well as reforming and adapting employment services with a view to providing tailor - made support to young people .


### modernising labour market institutions and services to assess and anticipate skills needs and ensure timely and tailor - made assistance and support to labour market matching , transitions and mobility ; ### modernising labour market institutions and services to assess and anticipate skills needs and ensure timely and tailor - made assistance and support to labour market matching , transitions across the life - cycle and mobility ;


### innovative actions member states shall support actions of social innovation and social experimentations , or strengthen bottom - up approaches based on partnerships involving public authorities , the private sector , and civil society such as the local action groups designing and implementing community - led local development strategies . 2 . member states may support the upscaling of innovative approaches tested on a small - scale developed under the employment and social innovation strand and other union programmes . 3 . innovative actions and approaches may be programmed under any of the specific objectives set out in points to of article 4 . 4 . each member state shall dedicate at least one priority to the implementation of paragraphs 1 or 2 or to both . the maximum co - financing rate for these priorities may be increased to 95% for the allocation of maximum 5% of the national esf + allocation under shared management to such priorities . ### social innovative actions member states shall support actions of social innovation and / or social experimentations , including those with a socio - cultural component , using bottom - up approaches based on partnerships involving public authorities , the social partners , social economy enterprises , the private sector , and civil society . 1a . member states shall identify , either in their operational programmes or at a later stage during implementation , fields for social innovation and social experimentations that correspond to the member states ' specific needs . 2 . member states may support the upscaling of innovative approaches tested on a small - scale developed under the employment and social innovation strand and other union programmes . 3 . innovative actions and approaches may be programmed under any of the specific objectives set out in article 4 . 4 . each member state shall dedicate at least one priority to the implementation of paragraphs 1 or 2 or to both . the maximum co - financing rate for these priorities may be increased to 95% for the allocation of maximum 5% of the national esf + allocation under shared management .


### member states having a rate of young people aged 15 to 29 not in employment , education or training above the union average in 2019 on the basis of eurostat data , shall allocate at least 10% of their esf + resources under shared management for the years 2021 to 2025 to targeted actions and structural reforms to support youth employment and school - to - work transition , pathways to reintegrate into education or training and second chance education , in particular in the context of implementing youth guarantee schemes . ### member states having a rate of young people aged 15 to 29 not in employment , education or training above the union average in 2019 on the basis of eurostat data , shall allocate at least 10% of their esf + resources under shared management for the years 2021 to 2025 to targeted actions and structural reforms to support youth employment and school - to - work transition , pathways to reintegrate into education or training and second chance education , in particular in the context of implementing those youth guarantee schemes that have empirically proven to be successful .


### the types of financing and the methods of implementation under this regulation should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver results , taking into account , in particular , the costs of controls , the administrative burden , and the expected risk of non - compliance . for grants , this should include consideration of the use of lump sums , flat rates and unit costs , as well as financing not linked to costs as envisaged in article 125 of the financial regulation . to implement measures linked to the socio - economic integration of third country nationals , and in accordance with article 88 of the common provisions regulation , the commission may reimburse member states using simplified cost options including the use of lump sums . ### the types of financing and the methods of implementation under this regulation should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver results , taking into account , in particular , the costs of controls , the administrative burden , and the expected risk of non - compliance . the distribution of financial resources between programmes may not be changed unless based on a parliamentary decision . for grants , this should include consideration of the use of lump sums , flat rates and unit costs , as well as financing not linked to costs as envisaged in article 125 of the financial regulation .


### promoting equal access to and completion of , quality and inclusive education and training , in particular for disadvantaged groups , from early childhood education and care through general and vocational education and training , and to tertiary level , as well as adult education and learning , including facilitating learning mobility for all ; ### promoting equal access to and completion of , quality and inclusive education and training , ensuring it is non segregated and adequately addresses early school leaving , among others through second chance opportunities , in particular for disadvantaged groups , from early childhood education and care through general and vocational education and training , and to tertiary level , as well as adult education and learning , including facilitating learning mobility for all and accessibility for persons with disabilities ;


### the purchase of furniture , equipment and vehicles except where the purchase is necessary for achieving the objective of the operation , or these items are fully depreciated , or the purchase of these items is the most economic option . ### the purchase of furniture , equipment and vehicles except where the purchase is necessary for achieving the objective of the operation , or these items are fully depreciated , or the purchase of these items is the most economic option , or if needed to ensure reasonable accommodation to ensure universal accessibility for persons with disabilities .


### a smarter europe through the development of skills for smart specialisation , skills for key enabling technologies , industrial transition , sectorial cooperation on skills and entrepreneurship , the training of researchers , networking activities and partnerships between higher education institutions , vocational and educational training institutions , research and technological centres and enterprises and clusters , support to micro , small and medium sized enterprises and the social economy ; ### a smarter europe through the development of skills for smart specialisation and cultural competences , skills for key enabling technologies , industrial transition , sectorial cooperation on skills and entrepreneurship , the training of researchers , networking activities and partnerships between higher education institutions , vocational and educational training institutions , research and technological centres and enterprises and clusters , support to micro , small and medium sized enterprises and the social economy ;


### on 17 november 2017 , the european pillar of social rights was jointly proclaimed by the european parliament , the council and the commission as a response to social challenges in europe . the twenty key principles of the pillar are structured around three categories : equal opportunities and access to the labour market ; fair working conditions ; social protection and inclusion . the twenty principles of the european pillar of social rights should guide the actions under the european social fund plus . in order to contribute to the implementation of the european pillar of social rights the esf + should support investments in people and systems in the policy areas of employment , education and social inclusion , thereby supporting economic , territorial and social cohesion in accordance with article 174 tfeu . ### on 17 november 2017 , the european pillar of social rights was jointly proclaimed by the european parliament , the council and the commission as a response to social challenges in europe . the european pillar of social rights is a declaration of political intent but not a legal framework . to reach the goals of the european pillar of social rights , the goals of the european social fund plus have to be grounded on a legal basis of the current eu acquis and cannot transcend it . the twenty key principles of the pillar are structured around three categories : equal opportunities and access to the labour market ; fair working conditions ; social protection and inclusion . the twenty principles of the european pillar of social rights should guide the actions under the esf + . in order to contribute to the implementation of the european pillar of social rights the esf + should support investments in people and systems in the policy areas of employment , education and social inclusion , thereby supporting economic , territorial and social cohesion in accordance with article 174 tfeu , while respecting the principles of subsidiarity and proportionality .


### reflecting the importance of tackling climate change in line with the union’s commitments to implement the paris agreement and the united nations sustainable development goals , this regulation will contribute to mainstream climate action in the union’s policies and to the achievement of an overall target of 25 % of the eu budget expenditures supporting climate objectives . relevant actions will be identified during the preparation and implementation , and reassessed in the context of the mid - term evaluation . ### reflecting the importance of tackling climate change in line with the union’s commitments to implement the paris agreement and the united nations sustainable development goals , this regulation will contribute to mainstream climate action in the union’s policies . relevant actions will be identified during the preparation and implementation , and reassessed in the context of the mid - term evaluation .


### if applicants hold a travel document that is recognised by one or more , but not all , member states the touring visa shall be valid for the territory of the member states which recognise the travel document , provided that the intended stay is longer than 90 days in any 180 - day period in the territory of the member states concerned . ### if applicants hold a travel document that is not recognised by all member states , the touring visa shall be valid only for the territory of the member states which recognise the travel document .


### applications by nationals of third countries listed in annex ii to regulation no 539 / 2001 legally present in the territory of a member state may be lodged within the territory of that member state provided that the consulate of the competent member state has at least 20 calendar days to decide on the application . ### applications by nationals of third countries listed in annex ii to regulation no 539 / 2001 legally present in the territory of a member state may be lodged within the territory of that member state , with the consulate of the member state where the applicant intends to stay .


### the member state competent for examining and deciding on an application for a touring visa shall be the member state whose external border the applicant intends to cross in order to enter the territory of the member states . ### the member state competent for examining and deciding on an application for a touring visa shall be the member state where the applicant is carrying out his or her activities for the longest period .


### in addition to the criteria set out in article 11 , points and , of regulation no xxx / 201x [ visa code ] , applicants shall present a travel document that is recognised by the member state competent for examining and deciding on an application and at least one other member state to be visited . ### in addition to the criteria set out in article 11 , points and , of regulation no xxx / 201x [ visa code ] , applicants shall present a travel document that is recognised by the member state competent for examining and deciding on an application and all member states to be visited .


### by [ three years after the date of application of this regulation ] the commission shall evaluate the application of this regulation . ### by [ three years after the date of application of this regulation ] the commission , parliament and the council shall publish a report on the application of this regulation together with relevant legislative proposals , where appropriate .


### any personal data collected for the purpose of the resettlement procedure should be stored for a maximum period of five years from the date of resettlement . given that third - country nationals or stateless persons who have already been resettled by one member state or who during the last five years refused to resettle to a member state should be excluded from resettlement to another member state , that period should be considered a necessary period for the storage of personal details , including fingerprints and facial images . ### any personal data collected for the purpose of the resettlement procedure should be stored for a duration in accordance with the laws , regulations and interests of the voluntary host member state .


### member states shall store the data referred to in paragraphs 2 to 4 for five years from the date of resettlement . ### participating member states are advised to store the data referred to in paragraphs 2 to 4 for five years from the date of resettlement .


### member states may give preference inter alia to third - country nationals or stateless persons with : ### member states may give preference inter alia to third - country nationals or stateless persons in line with their own interests , values , and laws :


### such a framework is a necessary part of a well - managed migration policy to reduce divergences among national resettlement practices and procedures , provide for the legal and safe arrival to the territory of the member states of third - country nationals and stateless persons in need of international protection , help reduce the risk of a large - scale irregular inflow of third - country nationals and stateless persons to the territory of the member states and thereby reducing the pressure of spontaneous arrivals on the member states ' asylum systems , be an expression of solidarity with countries in regions to which or within which a large number of persons in need of international protection has been displaced by helping to alleviate the pressure on those countries , help achieve union ' s foreign policy objectives by increasing the union ' s leverage vis - à - vis third countries , and effectively contribute to global resettlement initiatives through speaking with one voice in international fora and with third countries . ### a mandatory framework is an unnecessary part of a poorly - managed migration policy to enforce harmonisation among national resettlement practices and procedures .


### provisions concerning the information to be provided to the public under article 14 and annex iv . ### provisions concerning the information to be provided to the public under article 14 and annex iv including a user friendly overview at eu level of the information listed in point 7 of annex iv .


### supply risk assessment ### supply risk assessment , monitoring and management


### ' priority premises ' shall mean large premises with many users potentially exposed to water - related risks , such as hospitals , healthcare institutions , buildings with a lodging facility , penal institutions and campgrounds , as identified by member states . ### ' priority premises ' shall mean premises which residents are potentially exposed to water - related risks , such as hospitals , healthcare institutions , nurseries , buildings with a lodging facility , penal institutions and campgrounds , as identified by member states .


### domestic distribution risk assessment ### internal distribution risk assessment , monitoring and management


### member states shall ensure that adequate and up - to - date information on water intended for human consumption is available online to all persons supplied , in accordance with annex iv . ### member states shall ensure that adequate and up - to - date information on water intended for human consumption is available to all persons supplied , in accordance with annex iv .


### for those parameters member states shall ensure that water suppliers can deviate from the sampling frequencies set out in annex ii , part b , in accordance with the specifications set out in annex ii , part c . ### based on the outcome of the supply risk assessment and taken into account the results of the risk assessment carried out in accordance with article 8 of this directive and of the monitoring carried out pursuant to article 7 and article 8 of directive2000 / 60 / ec , water suppliers shall : a ) elaborate and adjust monitoring programmes pursuant to article 11 in accordance with the specifications set out in annex ii ; b ) take all necessary measures to ensure that the migration of substances or chemicals from construction products or that other products or chemicals used in the preparation or distribution of water intended for human consumption does not , either directly or indirectly , endanger human health ; c ) take all necessary preventive and mitigation measures to ensure that the supply and use of water intended for human consumption does not , either directly or indirectly , endanger human health .


### derogations granted by member states in accordance with article 9 of directive 98 / 83 / ec that are still applicable by [ end - date for transposition of this directive ] shall remain applicable until the end of their duration . they may not be renewed further . ### derogations granted by member states in accordance with article 9 of directive 98 / 83 / ec that are still applicable by [ end - date for transposition of this directive ] shall remain applicable until the end of their duration .


### ' water intended for human consumption ' shall mean all water either in its original state or after treatment , intended for drinking , cooking , food preparation or production , or other domestic purposes in both public and private premises , regardless of its origin and whether it is supplied from a distribution network , supplied from a tanker or , for spring waters , put in bottles . ### ' water intended for human consumption ' shall mean water either in its original state or after treatment , intended for drinking , cooking , food preparation , or other&#160 ; internal purposes in both public and private premises , regardless of its origin and whether it is supplied from a distribution network , supplied from a tanker or , for spring waters , put in bottles .


### hazard assessment of bodies of water used for the abstraction of water intended for human consumption ### hazard assessment , monitoring and management of bodies of water used for the abstraction of water intended for human consumption


### member states shall ensure that any failure to meet the parametric values set in accordance with article 5 is immediately investigated in order to identify the cause . ### member states shall ensure that any failure to meet the parametric values set in accordance with article 5 at the point of compliance determined in accordance with article 6 is immediately investigated in order to identify the cause .


### in paragraph 4 , ‘ three months’ is replaced by ‘ one month’ . ### in paragraph 4 , the first subparagraph is replaced by the following : where the commission , on the basis of the examination referred to in paragraph 3 , and taking into account the consequences of a suspension of the exemption from the visa requirement , decides that action is needed , it shall , within one month of receipt of the notification referred to in paragraph 2 , adopt an implementing act temporarily suspending for a period of 6 months the exemption from the visa requirement for the nationals of that third country . that implementing act shall be adopted in accordance with the examination procedure referred to in article 4a . the implementing act shall determine the date on which the suspension of the exemption from the visa requirement is to take effect .


### the number of member states affected by any of the situations described in paragraphs 2 and 2a ; ### the interests of member states affected by any of the situations described in paragraphs 2 and 2a , on the basis of reports drawn up by the competent state bodies ,


### the issuing of visas at the external border should , in principle , remain exceptional . however , to allow member states to promote short term tourism , they should be authorised to issue visas at the external border based on a temporary scheme and upon notification and publication of the organisational modalities of the scheme . such schemes should be temporary in nature and the validity of the visa issued should be limited to the territory of the issuing member state . ### the issuing of visas at the external border should remain exceptional . however , to allow member states to promote short term tourism , they should be authorised to issue visas at the external border based on a temporary scheme and upon notification and publication of the organisational modalities of the scheme . such schemes should be temporary in nature and the validity of the visa issued should be limited to the territory of the issuing member state .


### in order to reflect technological progress in the sectors concerned and adjust them to the relevant period of allocation , provision should be made for the values of the benchmarks for free allocations to installations , determined on the basis of data from the years 2007 - 8 , to be updated in line with observed average improvement . for reasons of predictability , this should be done through applying a factor that represents the best assessment of progress across sectors , which should then take into account robust , objective and verified data from installations so that sectors whose rate of improvement differs considerably from this factor have a benchmark value closer to their actual rate of improvement . where the data shows a difference from factor reduction of more than 0 . 5% of the 2007 - 8 value higher or lower per year over the relevant period , the related benchmark value shall be adjusted by that percentage . to ensure a level playing field for the production of aromatics , hydrogen and syngas in refineries and chemical plants , the benchmark values for aromatics , hydrogen and syngas should continue to be aligned to the refineries benchmarks . ### in order to reflect technological progress in the sectors concerned and adjust them to the relevant period of allocation , provision should be made for the values of the benchmarks for free allocations to installations , determined on the basis of data from the years 2007 - 2008 , to be updated in line with observed average improvement . for reasons of predictability , this should be done through applying a factor that represents the best assessment of progress across sectors , which should then take into account robust , objective and verified data from installations so that sectors whose rate of improvement differs considerably from this factor have a benchmark value closer to their actual rate of improvement . where the data shows a difference from factor reduction of more than 0 . 5% of the 2007 - 2008 value higher or lower per year over the relevant period , the related benchmark value shall be adjusted by that percentage . where , however , the rate of improvement does not exceed 0 , 3% , the related benchmark value should be reduced by that percentage . to ensure a level playing field for the production of aromatics , hydrogen and syngas in refineries and chemical plants , the benchmark values for aromatics , hydrogen and syngas should continue to be aligned to the refineries benchmarks .


### by derogation from article 10a to , member states which had in 2013 a gdp per capita in &#8364 ; at market prices below 60% of the union average may give a transitional free allocation to installations for electricity production for the modernisation of the energy sector . ### by way of derogation from article 10a to , member states which had in 2013 a gdp per capita in eur at market prices below 60% of the union average may give transitional free allocation to installations for electricity generation for the modernisation of the energy sector .


### the fund shall be governed by an investment board and a management committee , which shall be composed of representatives from the beneficiary member states , the commission , the eib and three representatives elected by the other member states for a period of 5 years . the investment board shall be responsible to determine an union - level investment policy , appropriate financing instruments and investment selection criteria . the management committee shall be responsible for the day - to - day management of the fund . ### the fund shall be governed by beneficiary member states , assisted by an advisory board , which shall be composed of representatives from those member states , the commission and the eib elected for a period of 5 years . the advisory board shall be responsible for adopting guidelines defining investment policy , appropriate financing instruments and investment selection criteria in accordance with paragraph 1 . the guidelines shall be publicly available .


### the second subparagraph of paragraph 1 is replaced by the following : ' such measures shall be consistent with acts adopted purusant to article 11b . the commission shall be empowered to adopt a delegated act in accordance with article 23 . ' ; ### in paragraph 1 , the first and second subparagraphs are replaced by the following : ' 1 . the commission is empowered to adopt delegated acts in accordance with article 30b to supplement this directive and , in addition to the inclusions provided for in article 24 , concerning the detailed arrangements for issuing of allowances or credits in respect of projects administered by member states that reduce greenhouse gas emissions not covered by the eu ets . ' ;


### 400 million allowances shall be available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe capture and geological storage of co2 as well as demonstration projects of innovative renewable energy technologies , in the territory of the union . ### 400 million allowances shall be available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe ccs and ccu as well as demonstration projects of innovative renewable energy technologies , in the territory of the union .


### in article 3d , the second subparagraph is replaced by the following : ' the commission shall be empowered to adopt a delegated act in accordance with article 23 . ' ; ### in article 3d , paragraph 3 is replaced by the following : ' 3 . the commission is empowered to adopt delegated acts in accordance with article 30b to supplement this directive and concerning the detailed arrangements for the auctioning by member states of allowances not required to be issued free of charge in accordance with paragraphs 1 and 2 of this article or article 3f . the number of allowances to be auctioned in each period by each member state shall be proportionate to its share of the total attributed aviation emissions for all member states for the reference year reported pursuant to article 14 and verified pursuant to article 15 . for the period referred to in article 3c , the reference year shall be 2010 and for each subsequent period referred to in article 3c the reference year shall be the calendar year ending 24 months before the start of the period to which the auction relates . '


### ' the measures referred to in the first subparagraph shall , to the extent feasible , determine community - wide ex - ante benchmarks so as to ensure that allocation takes place in a manner that provides incentives for reductions in greenhouse gas emissions and energy efficient techniques , by taking account of the most efficient techniques , substitutes , alternative production processes , high efficiency cogeneration , efficient energy recovery of waste gases , use of biomass and capture and storage of co2 , where such facilities are available , and shall not provide incentives to increase emissions . no free allocation shall be made in respect of any electricity production , except for cases falling within article 10c , and electricity produced from waste gases . ' ### in paragraph 1 , the third subparagraph is replaced by the following : ' the measures referred to in the first subparagraph shall , to the extent feasible , determine union - wide ex - ante benchmarks so as to ensure that allocation takes place in a manner that provides incentives for reductions in greenhouse gas emissions and energy efficient techniques , by taking account of the most efficient techniques , substitutes , alternative production processes , high efficiency cogeneration , efficient energy recovery of waste gases , use of biomass , ccs and ccu where such facilities are available , and shall not provide incentives to increase emissions . no free allocation shall be made in respect of any electricity production , except for cases falling within article 10c , electricity produced for their own use by non - grid connected offshore oil and gas platforms as well as electricity produced from waste gases . '


### each year , the management committee shall report to the commission on experience with the evaluation and selection of investments . the commission shall review the basis on which projects are selected by 31 december 2024 and , where appropriate , make proposals to the management committee . ### each year , the advisory board shall report to the commission on experience with the evaluation and selection of investments . the commission shall review the basis on which projects are selected by 31 december 2024 and , where appropriate , make proposals to the management committee .


### in article 14 , the second subparagraph is replaced by the following : ' the commission shall be empowered to adopt a delegated act in accordance with article 23 . ' ; ### in article 14 , paragraph 1 is replaced by the following : ' 1 . the commission is empowered to adopt delegated acts in accordance with article 30b to supplement this directive and concerning the detailed arrangements for the monitoring and reporting of emissions and , where relevant , activity data , from the activities listed in annex i , the monitoring and reporting of tonne - kilometre data for the purpose of an application under articles 3e or 3f , which shall be based on the principles for monitoring and reporting set out in annex iv and the specification of the global warming potential of each greenhouse gas in the requirements for monitoring and reporting emissions for that gas . ' ;


### ' following consultation with the operator , member states may exclude from the community scheme installations which have reported to the competent authority emissions of less than 25 000 tonnes of carbon dioxide equivalent and , where they carry out combustion activities , have a rated thermal input below 35 mw , excluding emissions from biomass , in each of the three years preceding the notification under point , and which are subject to measures that will achieve an equivalent contribution to emission reductions , if the member state concerned complies with the following conditions : it notifies the commission of each such installation , specifying the equivalent measures applying to that installation that will achieve an equivalent contribution to emission reductions that are in place , before the list of installations pursuant to article 11 has to be submitted and at the latest when this list is submitted to the commission ; it confirms that monitoring arrangements are in place to assess whether any installation emits 25 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year . member states may allow simplified monitoring , reporting and verification measures for installations with average annual verified emissions between 2008 and 2010 which are below 5 000 tonnes a year , in accordance with article 14 ; it confirms that if any installation emits 25 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year or the measures applying to that installation that will achieve an equivalent contribution to emission reductions are no longer in place , the installation will be reintroduced into the community scheme ; it publishes the information referred to in points , and for public comment . hospitals may also be excluded if they undertake equivalent measures . ' ### in article 27 , paragraph 1 is replaced by the following : ' following consultation with the operator , member states may exclude from the eu ets installations which have reported to the competent authority emissions of less than 50 000 tonnes of carbon dioxide equivalent , excluding emissions from biomass , in each of the three years preceding the notification under point , and which are subject to measures that will achieve an equivalent contribution to emission reductions , if the member state concerned complies with the following conditions : it notifies the commission of each such installation , specifying the equivalent measures applying to that installation that will achieve an equivalent contribution to emission reductions that are in place , before the list of installations pursuant to article 11 has to be submitted and at the latest when this list is submitted to the commission ; it confirms that monitoring arrangements are in place to assess whether any installation emits 50 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year . member states may allow simplified monitoring , reporting and verification measures for installations with average annual verified emissions between 2008 and 2010 which are below 5 000 tonnes a year , in accordance with article 14 ; it confirms that if any installation emits 50 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year or the measures applying to that installation that will achieve an equivalent contribution to emission reductions are no longer in place , the installation will be reintroduced into the eu ets ; it makes the information referred to in points , and available to the public . hospitals may also be excluded if they undertake equivalent measures . '


### the existing provisions which are in place for small installations to be excluded from the eu ets allow the installations which are excluded to remain so , and it should be made possible for member states to update their list of excluded installations and for member states currently not making use of this option to do so at the beginning of each trading period . ### the existing provisions which are in place for small installations to be excluded from the eu ets should be extended to cover installations emitting less than 50 , 000 tonnes of co2 equivalent in each of the three years preceding the year of application for exclusion . it should be made possible for member states to update their list of excluded installations and for member states currently not making use of this option to do so at the beginning of each trading period and halfway through the period . it should also be possible for installations emitting less than 5 , 000 tonnes of co2 equivalent in each of the three years preceding the beginning of each trading period to be excluded from the eu ets subject to revision every five years .


### in order to respect the auctioning share set out in article 10 , the sum of free allocations in every year where the sum of free allocations does not reach the maximum level that respects the member state auctioning share , the remaining allowances up to that level shall be used to prevent or limit reduction of free allocations to respect the member state auctioning share in later years . where , nonetheless , the maximum level is reached , free allocations shall be adjusted accordingly . any such adjustment shall be done in a uniform manner . ### where the sum of free allocations in a given year does not reach the maximum level that respects the member state auctioning share , the remaining allowances up to that level shall be used to prevent or limit the reduction of free allocations in subsequent years . where , however , the maximum level is reached , an amount of allowances equivalent to a reduction of up to two percentage points of the share of allowances to be auctioned by member states , pursuant to article 10 , shall be distributed free of charge to sectors and sub - sectors pursuant to article 10b . where , nonetheless , this reduction is insufficient to meet the demand of sectors or sub - sectors pursuant to article 10b , free allocations shall be adjusted accordingly by a uniform cross sectoral correction factor .


### the second paragraph of paragraph 1 is replaced by the following : ' the commission shall be empowered to adopt a delegated act in accordance with article 23 . this act shall also provide for additional allocation from the new entrants reserve for significant production increases by applying the same thresholds and allocation adjustments as apply in respect of partial cessations of operation . ' ; ### in paragraph 1 , the first and second subparagraphs are replaced by the following : ' 1 . the commission is empowered to adopt delegated acts in accordance with article 30b to supplement this directive and concerning union - wide and fully - harmonised measures for the allocation of the allowances referred to in paragraphs 4 , 5 , 7 and 12 , including any necessary provisions for a harmonised application of paragraph 19 . these delegated acts shall also provide for additional allocation from the new entrants reserve for significant production increases by applying the thresholds defined in paragraph 7 . the threshold and allocation adjustments that apply to significant production increases shall also apply to partial cessations of operation . ' ;


### the main long - term incentive from this directive for the capture and storage of co2 , new renewable energy technologies and breakthrough innovation in low - carbon technologies and processes is the carbon price signal it creates and that allowances will not need to be surrendered for co2 emissions which are permanently stored or avoided . in addition , to supplement the resources already being used to accelerate demonstration of commercial ccs facilities and innovative renewable energy technologies , eu ets allowances should be used to provide guaranteed rewards for deployment of ccs facilities , new renewable energy technologies and industrial innovation in low - carbon technologies and processes in the union for co2 stored or avoided on a sufficient scale , provided an agreement on knowledge sharing is in place . the majority of this support should be dependent on verified avoidance of greenhouse gas emissions , while some support may be given when pre - determined milestones are reached taking into account the technology deployed . the maximum percentage of project costs to be supported may vary by category of project . ### the main long - term incentive from this directive for carbon capture and storage or carbon capture and use , new renewable energy technologies and breakthrough innovation in low - carbon technologies and processes is the carbon price signal it creates and that allowances will not need to be surrendered for co2 emissions which are permanently stored , reused in industrial processes or avoided . in addition , to supplement the resources already being used to accelerate demonstration of commercial ccs / ccu facilities and innovative renewable energy technologies , eu ets allowances should be used to provide guaranteed rewards for deployment of ccs / ccu facilities , new renewable energy technologies and industrial innovation in low - carbon technologies and processes in the union for co2 stored , reused or avoided on a sufficient scale , provided an agreement on knowledge sharing is in place . this support should be dependent on verified avoidance of greenhouse gas emissions or when pre - determined milestones are reached taking into account the technology deployed . the maximum percentage of project costs to be supported may vary by category of project .


### are additional , clearly respond to replacement and modernisation needs and do not supply a market - driven increase in energy demand ; ### clearly respond to replacement and modernisation needs and do not supply a market - driven increase in energy demand ;


### to preserve the environmental benefit of emission reductions in the union while actions by other countries do not provide comparable incentives to industry to reduce emissions , free allocation should continue to installations in sectors and sub - sectors at genuine risk of carbon leakage . experience gathered during the operation of the eu ets confirmed that sectors and sub - sectors are at risk of carbon leakage to varying degrees , and that free allocation has prevented carbon leakage . while some sectors and sub - sectors can be deemed at a higher risk of carbon leakage , others are able to pass on a considerable share of the costs of allowances to cover their emissions in product prices without losing market share and only bear the remaining part of the costs so that they are at a low risk of carbon leakage . the commission should determine and differentiate the relevant sectors based on their trade intensity and their emissions intensity to better identify sectors at a genuine risk of carbon leakage . where , based on these criteria , a threshold determined by taking into account the respective possibility for sectors and sub - sectors concerned to pass on costs in product prices is exceeded , the sector or sub - sector should be deemed at risk of carbon leakage . others should be considered at a low risk or at no risk of carbon leakage . taking into account the possibilities for sectors and sub - sectors outside of electricity generation to pass on costs in product prices should also reduce windfall profits . ### to preserve the environmental benefit of emission reductions in the union while actions by other countries do not provide comparable incentives to industry to reduce emissions , free allocation should continue to installations in sectors and sub - sectors at genuine risk of carbon leakage . experience gathered during the operation of the eu ets confirmed that sectors and sub - sectors are at risk of carbon leakage to varying degrees , and that free allocation has prevented carbon leakage . while some sectors and sub - sectors can be deemed at a higher risk of carbon leakage , others are able to pass on a considerable share of the costs of allowances to cover their emissions in product prices without losing market share and only bear the remaining part of the costs so that they are at a low risk of carbon leakage . the commission should determine and differentiate the relevant sectors based on their trade intensity and their emissions intensity to better identify sectors at a genuine risk of carbon leakage . where , based on these criteria , thresholds determined by taking into account the respective possibility for sectors and sub - sectors concerned to pass on costs in product prices are met or exceeded , the sector or sub - sector should be deemed at a very high , high , medium or low risk of carbon leakage . taking into account the possibilities for sectors and sub - sectors outside of electricity generation to pass on costs in product prices should also reduce windfall profits .


### the european council confirmed that the modalities , including transparency , of the optional free allocation to modernise the energy sector in certain member states should be improved . investments with a value of €10 million or more should be selected by the member state concerned through a competitive bidding process on the basis of clear and transparent rules to ensure that free allocation is used to promote real investments modernising the energy sector in line with the energy union objectives . investments with a value of less than €10 million should also be eligible for funding from the free allocation . the member state concerned should select such investments based on clear and transparent criteria . the results of this selection process should be subject to public consultation . the public should be duly kept informed at the stage of the selection of investment projects as well as of their implementation . ### the european council confirmed that the modalities , including transparency , of the optional free allocation to modernise the energy sector in certain member states should be improved . investments with a value of eur 20 million or more should be selected by the member state concerned through a competitive bidding process on the basis of clear and transparent rules to ensure that free allocation is used to promote real investments modernising the energy sector in line with the energy union objectives . the cogeneration of heat and power should also be eligible for the optional free allocation to modernise the energy sector . investments with a value of less than eur 20 million should also be eligible for funding from the free allocation . the member state concerned should select such investments based on clear and transparent criteria . the selection process should be subject to public consultation and the results of such selection process should be made publically available . the public should be duly kept informed at the stage of the selection of investment projects as well as of their implementation .


### where investments with a value of less than €10 million are supported with free allocation , the member state shall select projects based on objective and transparent criteria . the results of this selection process shall be published for public comment . on this basis , the member state concerned shall establish and submit a list of investments to the commission by 30 june 2019 . ### where investments are supported with free allocation under a national investment plan , the member state shall select projects based on the criteria applied in the bidding process , which shall apply mutatis mutandis . the results of this selection process shall be published for public comment . on this basis , the member state concerned shall establish and submit a list of investments to the commission by 31 december 2018 and every five years subsequently .


### by 31 december 2019 , the commission shall adopt a delegated act for the preceding paragraphs for activities at a 4 - digit level as concerns paragraph 1 , in accordance with article 23 , based on data for the three most recent calendar years available . ### by 31 december 2019 , the commission is empowered to adopt delegated acts in accordance with article 30b to supplement this directive and in relation to paragraph 1 concerning the activities at a 4 digit level based on data for the five most recent calendar years available unless , on the basis of evidence , it is more appropriate for activities to be assessed at a further aggregated or disaggregated level in which case that level of assessment shall be used .


### the auctioning of allowances remains the general rule , with free allocation as the exception . consequently , and as confirmed by the european council , the share of allowances to be auctioned , which was 57% over the period 2013 - 2020 , should not be reduced . the commission ' s impact assessment18 provides details on the auction share and specifies that this 57% share is made up of allowances auctioned on behalf of member states , including allowances set aside for new entrants but not allocated , allowances for modernising electricity generation in some member states and allowances which are to be auctioned at a later point in time because of their placement in the market stability reserve established by decision 2015 / … of the european parliament and of the council19 . __________________ 18 secxx 19 decision 2015 / … of the european parliament and of the council of … concerning the establishment and operation of a market stability reserve for the union greenhouse gas emission trading scheme and amending directive 2003 / 87 / ec . ### the auctioning of allowances remains the general rule , with free allocation as the exception . the european council agreed that the share of allowances to be auctioned , which was estimated by the commission to be 57% over the period 2013 - 2020 , should not be reduced . the commission ' s impact assessment18 provides details on the auction share and specifies that this 57% share is made up of allowances auctioned on behalf of member states , including allowances set aside for new entrants but not allocated , allowances for modernising electricity generation in some member states and allowances which are to be auctioned at a later point in time because of their placement in the market stability reserve established by decision 2015 / 1814 of the european parliament and of the council 19 . however , given that future growth rates are unpredictable , that there is a need to encourage industrial growth and in order to mitigate the effect of a cross sectoral correction factor , flexibility should be introduced to the eu ets with a view to enabling a transfer of a limited number of allowances from the auctioning share to the free allowances share in the event of such a factor being applicable . __________________ 18 swd135 19 decision 2015 / 1814 of the european parliament and of the council of 6 october 2015 concerning the establishment and operation of a market stability reserve for the union greenhouse gas emission trading scheme and amending directive 2003 / 87 / ec .


### by derogation from article 10a to , member states which had in 2013 a gdp per capita in &#8364 ; at market prices below 60% of the union average may give a transitional free allocation to installations for electricity production for the modernisation of the energy sector . ### by way of derogation from article 10a to , member states which had in 2013 a gdp per capita in eur at market prices below 60% of the union average may give transitional free allocation to installations for electricity generation for the modernisation of the energy sector .


### member states should partially compensate , in accordance with state aid rules , certain installations in sectors or sub - sectors which have been determined to be exposed to a significant risk of carbon leakage because of costs related to greenhouse gas emissions passed on in electricity prices . the protocol and accompanying decisions adopted by the conference of the parties in paris need to provide for the dynamic mobilisation of climate finance , technology transfer and capacity building for eligible parties , particularly those with least capabilities . public sector climate finance will continue to play an important role in mobilising resources after 2020 . therefore , auction revenues should also be used for climate financing actions in vulnerable third countries , including adaptation to the impacts of climate . the amount of climate finance to be mobilised will also depend on the ambition and quality of the proposed intended nationally determined contributions , subsequent investment plans and national adaptation planning processes . member states should also use auction revenues to promote skill formation and reallocation of labour affected by the transition of jobs in a decarbonising economy . ### member states may partially compensate , in accordance with state aid rules , certain installations in sectors or sub - sectors which have been determined to be exposed to a significant risk of carbon leakage because of costs related to greenhouse gas emissions passed on in electricity prices . public sector climate finance will continue to play an important role in mobilising resources after 2020 . therefore , auction revenues should also be used for climate financing actions in vulnerable third countries , including adaptation to the impacts of climate change . the amount of climate finance to be mobilised will also depend on the ambition and quality of the proposed indcs , subsequent investment plans and national adaptation planning processes . member states should also use auction revenues to promote skill formation and reallocation of labour affected by the transition of jobs in a decarbonising economy .


### the fund shall be governed by an investment board and a management committee , which shall be composed of representatives from the beneficiary member states , the commission , the eib and three representatives elected by the other member states for a period of 5 years . the investment board shall be responsible to determine an union - level investment policy , appropriate financing instruments and investment selection criteria . the management committee shall be responsible for the day - to - day management of the fund . ### the fund shall be governed by an investment board and a management committee . the investment board shall be composed of representatives from all the beneficiary member states , the commission and the eib for a period of 5 years . the investment board shall be responsible to determine an union - level investment policy , appropriate financing instruments and investment selection criteria . public consultation shall be undertaken regarding the investment selection criteria and the results of the public consultation shall be taken into account by the investment board before the adoption of the selection criteria . the management committee shall be composed of representatives appointed by the investment board and shall be responsible for the day - to - day management of the fund . decisions of the management committee shall be taken by simple majority .


### the extent to which it is possible for individual installations in the sector or sub - sectors concerned to reduce emission levels or electricity consumption ; ### the extent to which it is possible for individual installations in the sector or sub - sectors concerned to reduce emission levels or electricity consumption taking into account associated increases in costs of production ;


### the fund shall be governed by an investment board and a management committee , which shall be composed of representatives from the beneficiary member states , the commission , the eib and three representatives elected by the other member states for a period of 5 years . the investment board shall be responsible to determine a union - level investment policy , appropriate financing instruments and investment selection criteria . the management committee shall be responsible for the day - to - day management of the fund . ### the individual allocations of each beneficiary member state from the modernisation fund shall be governed by the eligible beneficiary member state , assisted by the advisory board composed of representatives of the beneficiary member states , the commission , and the eib . individual decisions on financing particular projects shall be taken by the eligible beneficiary member state . day - to - day management of the fund shall be executed by the beneficiary member states . the advisory board shall be responsible for preparing the framework guidance on investment , including a union - level investment policy , appropriate financing instruments and investment selection criteria .


### the fund shall be governed by an investment board and a management committee , which shall be composed of representatives from the beneficiary member states , the commission , the eib and three representatives elected by the other member states for a period of 5 years . the investment board shall be responsible to determine an union - level investment policy , appropriate financing instruments and investment selection criteria . the management committee shall be responsible for the day - to - day management of the fund . ### the fund shall be governed by beneficiary member states , assisted by an advisory board , which shall be composed of representatives from those member states , the commission and the eib elected for a period of 5 years . the advisory board shall be responsible for adopting guidelines defining investment policy , appropriate financing instruments and investment selection criteria in accordance with paragraph 1 . the guidelines shall be publicly available .


### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of ccs and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed . ### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of ccs and ccu and innovative renewable energy technologies that are not yet commercially viable . projects shall be selected on the basis of their impact on energy systems or industrial processes within a member state , a group of member states or the union . in order to promote innovative projects , up to 75% of the relevant costs of projects may be supported , out of which up to 60% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed . the allowances shall be allocated to support the relevant costs of individual projects according to the needs of those projects in relation to reaching pre - determined milestones .


### ' 5 . the commission shall monitor the functioning of the european carbon market . each year , it shall submit a report to the european parliament and to the council on the functioning of the carbon market including the implementation of the auctions , liquidity and the volumes traded . if necessary , member states shall ensure that any relevant information is submitted to the commission at least two months before the commission adopts the report . ' ### paragraph 5 is replaced by the following : ' 5 . the commission shall monitor the functioning of the european carbon market . each year , it shall submit a report to the european parliament and to the council on the functioning of the carbon market including the implementation of the auctions , liquidity and the volumes traded . the report shall also address the interaction of the eu ets with other union climate and energy policies , including how those policies impact upon the supply - demand balance of the eu ets . member states shall ensure that any relevant information is submitted to the commission at least two months before the commission adopts the report . '


### article 191 of the treaty on the functioning of the european union requires that union policy is based on the principle that the polluter should pay and , on this basis , directive 2003 / 87 / ec provides for a transition to full auctioning over time . avoiding carbon leakage is a justification to postpone full transition , and targeted free allocation of allowances to industry is justified in order to address genuine risks of increases in greenhouse gas emissions in third countries where industry is not subject to comparable carbon constraints as long as comparable climate policy measures are not undertaken by other major economies . ### article 191 of the treaty on the functioning of the european union requires that union policy is based on the principle that the polluter should pay and , on this basis , directive 2003 / 87 / ec provides for a transition to full auctioning over time . avoiding carbon and investment leakage is a justification to postpone such a transition , and targeted free allocation of allowances to industry is justified in order to address genuine risks of increases in global greenhouse gas emissions and diversion of investments to third countries where industry is not subject to comparable carbon constraints as long as comparable climate policy measures are not undertaken by other major economies . additional achievements in sectors not falling under the scope of the eu ets and not subject to a risk of carbon leakage , in particular in the building sector and sustainable transport , will decrease the amount of effort needed from the union’s industry .


### in order to respect the auctioning share set out in article 10 , the sum of free allocations in every year where the sum of free allocations does not reach the maximum level that respects the member state auctioning share , the remaining allowances up to that level shall be used to prevent or limit reduction of free allocations to respect the member state auctioning share in later years . where , nonetheless , the maximum level is reached , free allocations shall be adjusted accordingly . any such adjustment shall be done in a uniform manner . ### where the sum of free allocations in a given year does not reach the maximum level that respects the member state auctioning share , the remaining allowances up to that level shall be used to prevent or limit the reduction of free allocations in subsequent years . where , however , the maximum level is reached , an amount of allowances equivalent to a reduction of up to two percentage points of the share of allowances to be auctioned by member states , pursuant to article 10 , shall be distributed free of charge to sectors and sub - sectors pursuant to article 10b . where , nonetheless , this reduction is insufficient to meet the demand of sectors or sub - sectors pursuant to article 10b , free allocations shall be adjusted accordingly by a uniform cross sectoral correction factor .


### ' article 29 report to ensure the better functioning of the carbon market if , on the basis of the regular reports on the carbon market referred to in article 10 , the commission has evidence that the carbon market is not functioning properly , it shall submit a report to the european parliament and to the council . the report may be accompanied , if appropriate , by proposals aiming at increasing transparency of the carbon market and addressing measures to improve its functioning . ' ### article 29 is amended as follows : ' article 29 report to ensure the better functioning of the carbon market if , on the basis of the regular reports on the carbon market referred to in article 10 , the commission has evidence that the carbon market is not functioning properly , it shall submit a report to the european parliament and to the council . the report may be accompanied , if appropriate , by proposals aiming at increasing transparency of the carbon market and addressing measures to improve its functioning , including measures to limit the impact of overlapping union - wide energy and climate policies on the supply - demand balance of the eu ets . ' ;


### in article 14 , the second subparagraph is replaced by the following : ' the commission shall be empowered to adopt a delegated act in accordance with article 23 . ' ; ### in article 14 , paragraph 1 is replaced by the following : ' 1 . the commission is empowered to adopt delegated acts in accordance with article 30b to supplement this directive and concerning the detailed arrangements for the monitoring and reporting of emissions and , where relevant , activity data , from the activities listed in annex i , the monitoring and reporting of tonne - kilometre data for the purpose of an application under articles 3e or 3f , which shall be based on the principles for monitoring and reporting set out in annex iv and the specification of the global warming potential of each greenhouse gas in the requirements for monitoring and reporting emissions for that gas . ' ;


### the second paragraph of paragraph 1 is replaced by the following : ' the commission shall be empowered to adopt a delegated act in accordance with article 23 . this act shall also provide for additional allocation from the new entrants reserve for significant production increases by applying the same thresholds and allocation adjustments as apply in respect of partial cessations of operation . ' ; ### in paragraph 1 , the first and second subparagraphs are replaced by the following : ' 1 . the commission is empowered to adopt delegated acts in accordance with article 30b to supplement this directive and concerning union - wide and fully - harmonised measures for the allocation of the allowances referred to in paragraphs 4 , 5 , 7 and 12 , including any necessary provisions for a harmonised application of paragraph 19 . these delegated acts shall also provide for additional allocation from the new entrants reserve for significant production increases by applying the thresholds defined in paragraph 7 . the threshold and allocation adjustments that apply to significant production increases shall also apply to partial cessations of operation . ' ;


### the second subparagraph of paragraph 3 is replaced by the following : ' the commission shall be empowered to adopt delegated acts for such a regulation for the monitoring and reporting of emissions and activity data in accordance with article 23 . ' ; ### paragraph 3 is replaced by the following : ' 3 . the commission is empowered to adopt delegated acts in accordance with article 30b to supplement this directive and concerning the detailed arrangements for the monitoring of , and reporting on , related to activities , installations and greenhouse gases which are not listed as a combination in annex i , if that monitoring and reporting can be carried out with sufficient accuracy . ' ;


### the commission shall be empowered to adopt a delegated act in accordance with article 23 to implement this article . ### the commission is empowered to adopt delegated acts in accordance with article 30b to supplement this directive and concerning the detailed arrangements for the effective functioning of the modernisation fund . this subparagraph shall not apply to paragraph 2 .


### ' allowances shall be set aside for the projects that meet the criteria referred to in the third subparagraph . support for these projects shall be given via member states and shall be complementary to substantial co - financing by the operator of the installation . they could also be co - financed by the member state concerned , as well as by other instruments . no project shall receive support via the mechanism under this paragraph that exceeds 15 % of the total number of allowances available for this purpose . these allowances shall be taken into account under paragraph 7 . ' ### in paragraph 8 , the fifth subparagraph is replaced by the following : ' allowances shall be set aside for the projects that meet the criteria referred to in the third subparagraph . support for these projects shall be given via member states and shall be complementary to substantial co - financing by the operator of the installation . they could also be co - financed by the member state concerned , as well as by other instruments . no project shall receive support via the mechanism under this paragraph that exceeds 20% of the total number of allowances available for this purpose . these allowances shall be taken into account under paragraph 7 . '


### in article 3d , the second subparagraph is replaced by the following : ' the commission shall be empowered to adopt a delegated act in accordance with article 23 . ' ; ### in article 3d , paragraph 3 is replaced by the following : ' 3 . the commission is empowered to adopt delegated acts in accordance with article 30b to supplement this directive and concerning the detailed arrangements for the auctioning by member states of allowances not required to be issued free of charge in accordance with paragraphs 1 and 2 of this article or article 3f . the number of allowances to be auctioned in each period by each member state shall be proportionate to its share of the total attributed aviation emissions for all member states for the reference year reported pursuant to article 14 and verified pursuant to article 15 . for the period referred to in article 3c , the reference year shall be 2010 and for each subsequent period referred to in article 3c the reference year shall be the calendar year ending 24 months before the start of the period to which the auction relates . '