### where the commission has issued an alert in accordance with article 6 , it may , within a period of three months after the date of the closure of the consultation period referred to in article 5 , adopt a decision finding the draft measure to be incompatible with directive 2006 / 123 / ec and requiring the member state concerned to refrain from adopting the draft measure or , if such measure has been adopted in breach of article 3 or article 6 , to repeal it . ### where the commission has issued a notice in accordance with article 6 on authorisations or requirements falling under the scope of article 4 , and and still has serious concerns about the measure notified in accordance with paragraphs , and of article 3 , it may , within three months from the date of that notice , adopt a recommendation requesting the member state concerned to refrain from adopting the notified measure or to repeal it .


### where the commission has issued an alert in accordance with article 6 , it may , within a period of three months after the date of the closure of the consultation period referred to in article 5 , adopt a decision finding the draft measure to be incompatible with directive 2006 / 123 / ec and requiring the member state concerned to refrain from adopting the draft measure or , if such measure has been adopted in breach of article 3 or article 6 , to repeal it . ### where the commission has issued an alert in accordance with article 6 and it still has serious concerns on the measure notified in accordance with article 3 , it may , within a period of three months from the date of such notice adopt a decision requesting the member state concerned to refrain from adopting the notified measure or to repeal it .


### where a member state modifies a notified draft measure with the effect of significantly extending its scope or content , or shortening the timetable originally envisaged for implementation , or adding requirements or authorisation schemes , or making those requirements or authorisation schemes more restrictive for the establishment , or the cross - border provision of services , it shall notify the modified draft measure previously notified under paragraph 1 again , including an explanation of the objective and content of the modifications . in such a case , the previous notification shall be deemed to be withdrawn . ### where a member state substantially modifies a draft measure that is subject to an ongoing notification procedure , altering its scope or content , shortening the timetable for implementation , or adding or tightening requirements or authorisation schemes , for the establishment , or the cross - border provision of services , the member state shall modify the initial notification , including an explanation of the objective and content thereof .


### ‘ active customer’ means a customer or a group of jointly acting customers who consume , store or sell electricity generated on their premises , including through aggregators , or participate in demand response or energy efficiency schemes provided that these activities do not constitute their primary commercial or professional activity ; ### ‘ active customer’ means a final customer or a group of jointly acting final customers who consume , store or generated electricity on their premises and sell surplus electricity , including through aggregators or suppliers or traders , or participate in demand response or energy efficiency schemes provided that these activities do not constitute their primary commercial or professional activity ;


### after [ op – insert the date – five years from the entry into force of this directive ] , member states may still apply public interventions in the price - setting for the supply of electricity for vulnerable household customers in so far as it is strictly necessary for reasons of extreme urgency . such interventions shall comply with the conditions set out in paragraph 3 . ### after [ op – insert the date –two years from the entry into force of this directive ] , member states may apply public interventions in the price - setting for the supply of electricity and gas as a transitional measure where there is evidence that markets are failing and other measures are not implemented to sufficiently protect energy poor or vulnerable consumers provided that : no more than 10% of households are affected b ) for a maximum of two years until more efficient and targeted social or other policy measures are adopted c ) the level of public intervention allows suppliers to make a reasonable level of return d ) market entry by new participants is not impeded e ) the setting of prices is limited to particular tariff types , such as a supplier’s pre - paid , default or standard variable tariff , or to certain groups of consumers such low - income or vulnerable consumers at risk of energy poverty ;


### member states shall ensure that transmission system operators and distribution system operators when procuring ancillary services , treat demand response providers , including independent aggregators , in a non - discriminatory manner , on the basis of their technical capabilities . ### member states shall ensure that transmission system operators and distribution system operators when procuring ancillary services , treat demand response providers , including aggregators , in a non - discriminatory manner , on the basis of their technical capabilities .


### the regional regulatory authorities of the geographical area where a regional operational centre is established shall , in close coordination with each other : ### the regional regulatory authorities of the geographical area where a regional security coordinator is established shall , in close coordination with each other approve the transmission system operators ' cooperative decision - making process , proposed by the transmission system operators of such geographical area .


### member states shall ensure the protection of energy poor or vulnerable customers in a targeted manner by other means than public interventions in the price - setting for the supply of electricity . ### member states shall ensure the protection of energy poor or vulnerable customers in a targeted manner as well as by other means than public interventions in the price - setting for the supply of electricity .


### member states shall ensure that national regulatory authorities encourage final customers , including those offering demand response through aggregators , to participate alongside generators in a non - discriminatory manner in all organised markets . ### member states shall ensure that the regulatory framework allows aggregators to participate alongside generators in a non - discriminatory manner in all organised markets and capacity mechanisms .


### ‘ active customer’ means a customer or a group of jointly acting customers who consume , store or sell electricity generated on their premises , including through aggregators , or participate in demand response or energy efficiency schemes provided that these activities do not constitute their primary commercial or professional activity ; ### “active customer” means a final customer or a group of jointly acting final customers who consume , store or generated electricity on their premises and sell surplus electricity , including through aggregators or suppliers or traders , or participate in demand response or energy efficiency schemes provided that these activities do not constitute their primary commercial or professional activity ;


### are given adequate notice of any intention to modify contractual conditions and are informed about their right to dissolve the contract when the notice is given . suppliers shall notify their customers directly of any adjustment in the supply price as well as of the reasons and preconditions for the adjustment and its scope , at an appropriate time no later than one normal billing period before the adjustment comes into effect in a transparent and comprehensible manner . member states shall ensure that customers are free to withdraw from contracts if they do not accept the new contractual conditions or adjustments in the supply price notified to them by their electricity supplier ; ### are given adequate notice of any intention to modify contractual conditions and are informed about their right to dissolve the contract when the notice is given . suppliers or aggregators shall notify their customers directly of any adjustment in the supply or service price as well as of the reasons and preconditions for the adjustment and its scope , as soon as they are aware of such an adjustment , and no later than six weeks before the adjustment comes into effect in a transparent and comprehensible manner . member states shall ensure that customers are free to withdraw from contracts if they do not accept the new contractual conditions or adjustments in the supply price notified to them by their electricity supplier or aggregator ;


### by way of derogation from paragraph 1 , member states may allow transmission system operators to own , manage or operate storage facilities or assets providing non - frequency ancillary services if the following conditions are fulfilled : ### by way of derogation from paragraph 1 , member states may allow transmission system operators to own , develop , manage or operate storage facilities or assets providing non - frequency ancillary services if the following conditions are fulfilled :


### to issue joint binding decisions on regional operational centres . ### to issue joint binding decisions regarding the improvement of coordination between transmission system operators within the geographical area where a regional security coordinator is established .


### are offered a wide choice of payment methods , which do not unduly discriminate between customers . any difference in charges related to payment methods shall reflect the relevant costs incurred by the supplier . ### are offered a wide choice of payment methods , which do not unduly discriminate between customers . any difference in charges related to payment methods shall reflect the relevant costs incurred by the supplier or aggregator .


### ' energy storage ' means , in the electricity system , deferring an amount of the electricity that was generated to the moment of use , either as final energy or converted into another energy carrier . ### ' energy storage ' means , in the electricity system , deferring an amount of the electricity that was generated to the moment of use .


### in performing the task described in point of paragraph 1 , the transmission system operator shall ensure that the procurement of balancing services and , unless justified by a cost - benefit analysis , non - frequency ancillary services , is : ### in performing the task described in point of paragraph 1 , the transmission system operator shall ensure that the procurement of balancing services and , unless justified and approved by a competent authority , non - frequency ancillary services , is :


### member states shall perform at regular intervals or at least every five years a public consultation in order to re - assess the potential interest of market parties to own , develop , operate or manage recharging points for electric vehicles . in case the public consultation indicates that third parties are able to own , develop , operate or manage such points , member states shall ensure that distribution system operators ' activities in this regard are phased - out . ### where member states have allowed distribution system operators to own , develop , manage or operate recharging points , or propose to allow them to , the member state shall perform at regular intervals or at least every five years a public consultation in order to re - assess the potential interest of market parties to own , develop , operate or manage recharging points for electric vehicles . in case the public consultation indicates that third parties are able to own , develop , operate or manage such points , member states shall ensure that distribution system operators ' activities in this regard are phased - out .


### other parties , following an open and transparent tendering procedure , have not expressed their interest to own , control , manage or operate such facilities offering storage and / or non - frequency ancillary services to the transmission system operator ; ### other parties , following an open and transparent tendering procedure , are not able to provide a viable proposition to own , develop , control , manage or operate storage facilities and / or non - frequency ancillary services to the transmission system operator ;


### regulatory authorities shall perform at regular intervals or at least every five years a public consultation in order to re - assess the potential interest of market parties to invest , develop , operate or manage energy storage facilities . in case the public consultation indicates that third parties are able to own , develop , operate or manage such facilities , member states shall ensure that distribution system operators ' activities in this regard are phased - out . ### regulatory authorities shall perform at regular intervals or at least every five years a public consultation in order to support a re - assessment of the potential interest of market parties to invest , develop , operate or manage energy storage facilities owned by distribution system operators . in case the public consultation and the national regulatory authority’s assessment indicates that third parties are able to provide a viable proposition to own , develop , operate or manage specific storage facilities , member states shall ensure that distribution system operators ' activities in this regard are phased - out .


### other parties , following an open and transparent tendering procedure , have not expressed their interest to own , control , manage or operate such facilities offering storage and / or non - frequency ancillary services to the transmission system operator ; ### other parties , following a technology - neutral and transparent tendering procedure , have not expressed their interest to own , control , manage or operate such facilities offering storage and / or non - frequency ancillary services to the transmission system operator or cannot provide it as cost - efficient as grid operators ;


### member states shall define a common data format and a transparent procedure for eligible parties to have access to the data listed under article 23 , in order to promote competition in the retail market and avoid excessive administrative costs for the eligible parties . ### within [ 2 years after entry into force of this directive ] member states shall define a common national data format and a transparent procedure for eligible parties to have access to the data listed under article 23 , in order to promote competition in the retail market and avoid excessive administrative costs for the eligible parties , in accordance with the principles of a common european data format and non - discriminatory and transparent procedures for accessing the data , listed under paragraph 2 .


### to carry out inspections , including unannounced inspections , at the premises of regional operational centres ; ### to carry out inspections , including unannounced inspections , at the premises of regional security coordinators ;


### such facilities are necessary for the distribution system operators to fulfil their obligations under this directive for the efficient , reliable and secure operation of the distribution system ; and ### such facilities are used primarily by the distribution system operators to fulfil their obligations under this directive for the efficient , reliable and secure operation of the distribution system , or to foster innovation that will allow them to better fulfil these obligations in future ; and ;


### the transmission system operator shall perform at regular intervals or at least every five years a public consultation for the required storage services in order to assess the potential interest of market parties to invest in such facilities and terminate its own storage activities in case third parties can provide the service in a cost - effective manner . ### regulatory authorities shall perform at regular intervals or at least every five years a public consultation in order to support a re - assessment of the potential interest of market parties to invest , develop , operate or manage such facilities . in case the public consultation and the national regulatory authority’s assessment indicates that third parties are able to provide a viable proposition to own , develop , operate or manage specific storage facilities , member states shall ensure that distribution system operators ' activities in this regard are phased - out .


### ' non - frequency ancillary service ' means a service used by a transmission or distribution system operator for steady state voltage control , fast reactive current injections , inertia and black start capability ; ### ' non - frequency ancillary service ' means a service used by a transmission or distribution system operator for steady state voltage control , fast reactive current injections , inertia for local grid stability , short - circuit current , black start capability and island operation capability .


### transmission system operators shall not be allowed to own , manage or operate energy storage facilities and shall not own directly or indirectly control assets that provide ancillary services . ### transmission system operators shall not be allowed to own , develop , manage or operate energy storage facilities and shall not own directly or indirectly control assets that provide ancillary services , except where ownership is established by [ date come into force ] .


### ‘ active customer’ means a customer or a group of jointly acting customers who consume , store or sell electricity generated on their premises , including through aggregators , or participate in demand response or energy efficiency schemes provided that these activities do not constitute their primary commercial or professional activity ; ### “active customer” means a final customer or a group of jointly acting final customers who consume , store or generated electricity on their premises and sell surplus electricity , including through aggregators or suppliers or traders , or participate in demand response or energy efficiency schemes provided that these activities do not constitute their primary commercial or professional activity ;


### if the eib recommends not financing an investment and provides reasons for this recommendation , a decision shall only be adopted if a majority of two - thirds of all members vote in favour . the member state in which the investment will take place and the eib shall not be entitled to cast a vote in this case . for small projects funded through loans provided by a national promotional bank or through grants contributing to the implementation of a national programme serving specific objectives in line with the objectives of the modernisation fund , provided that not more than 10% of the member states ' share set out in annex iib is used under the programme , the two preceding sentences shall not apply . ### if the eib recommends not financing an investment and provides reasons . a decision shall only be adopted if a majority of two - thirds of all members vote in favour . this sub - paragraph shall not apply to small - scale investment projects .


### a new third subparagraph is added to paragraph 2 as follows : ### paragraph 2 is replaced as follows :


### 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 .


### a modernisation fund should be established from 2% of the total eu ets allowances , and auctioned in accordance with the rules and modalities for auctions taking place on the common auction platform set out in regulation 1031 / 2010 . member states who in 2013 had a gdp per capita at market exchange rates of below 60% below the union average should be eligible for funding from the modernisation fund and derogate up to 2030 from the principle of full auctioning for electricity generation by using the option of free allocation in order to transparently promote real investments modernising their energy sector while avoiding distortions of the internal energy market . the rules for governing the modernisation fund should provide a coherent , comprehensive and transparent framework to ensure the most efficient implementation possible , taking into account the need for easy access by all participants . the function of the governance structure should be commensurate with the purpose of ensuring the appropriate use of the funds . that governance structure should be composed of an investment board and a management committee and due account should be taken of the expertise of the eib in the decision - making process unless support is provided to small projects through loans from a national promotional banks or through grants via a national programme sharing the objectives of the modernisation fund . investments financed from the fund should be proposed by the member states . to ensure that the investment needs in low income member states are adequately addressed , the distribution of funds will take into account in equal shares verified emissions and gdp criteria . the financial assistance from the modernisation fund could be provided through different forms . ### a modernisation fund should be established from 2% of the total eu ets allowances , and auctioned in accordance with the rules and modalities for auctions taking place on the common auction platform set out in regulation 1031 / 2010 . member states who in 2013 had a gdp per capita at market exchange rates of below 60% below the union average should be eligible for funding from the modernisation fund and derogate up to 2030 from the principle of full auctioning for electricity generation by using the option of free allocation in order to transparently promote real investments modernising their energy sector while avoiding distortions of the internal energy market . the rules for governing the modernisation fund should provide a coherent , comprehensive and transparent framework to ensure the most efficient implementation possible in line with the needs of beneficiary member states . the function of the governance structure should be commensurate with the purpose of ensuring the appropriate use of the funds . each of the beneficiary member states shall be responsible for the governance of its own allocation share and should be assisted by an advisory board composed of representatives from the beneficiary member states and the eib . investments financed from the fund should be proposed by the beneficiary member states . to ensure that the investment needs in low income member states are adequately addressed , the distribution of funds will take into account in equal shares verified emissions and gdp criteria . the financial assistance from the modernisation fund could be provided through different forms .


### 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 advisory board .


### other sectors and sub - sectors are considered to be able to pass on more of the cost of allowances in product prices , and shall be allocated allowances free of charge for the period up to 2030 at 30% of the quantity determined in accordance with the measures adopted pursuant to article 10a . ### sectors using fallback benchmarks and other sectors and sub - sectors are considered to be able to pass on more of the cost of allowances in product prices , and shall be allocated allowances free of charge for the period up to 2030 at 30% of the quantity determined in accordance with the measures adopted pursuant to article 10a .


### a list of installations covered by this directive for the five years beginning on 1 january 2021 shall be submitted by 30 september 2018 , and lists for the subsequent five years shall be submitted every five years thereafter . each list shall include information on production activity , transfers of heat and gases , electricity production and emissions at sub - installation level over the five calendar years preceding its submission . free allocations shall only be given to installations where such information is provided . ### a list of installations covered by this directive for the two years beginning on 1 january 2021 shall be submitted by 30 september 2018 , and lists for the subsequent two years shall be submitted every two years thereafter . each list shall include information on production activity , transfers of heat and gases , electricity production and emissions at sub - installation level over the two calendar years preceding its submission . free allocations shall only be given to installations where such information is provided .


### the fund shall also finance small - scale investment projects in the modernisation of energy systems and energy efficiency . to this end , the investment board shall develop guidelines and investment selection criteria specific to such projects . ### the fund shall also finance small - scale investment projects in the modernisation of energy systems and energy efficiency . to this end , the beneficiary member states shall develop rules and investment selection criteria specific to such projects , in line with the objectives of the fund and the guidance elaborated by an advisory board referred to in paragraph 4 .


### sectors and sub - sectors where the product from multiplying their intensity of trade with third countries by their emission intensity is above 0 . 18 may be included in the group referred to in paragraph 1 , on the basis of a qualitative assessment using the following criteria : ### sectors and sub - sectors where the product from multiplying their intensity of trade with third countries by their emission intensity is below the thresholds referred to in points to of paragraph 1 by up to 10% , may be included in the corresponding higher group referred to in points to of paragraph 1 , on the basis of a qualitative assessment using the following criteria :


### 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 .


### a list of installations covered by this directive for the five years beginning on 1 january 2021 shall be submitted by 30 september 2018 , and lists for the subsequent five years shall be submitted every five years thereafter . each list shall include information on production activity , transfers of heat and gases , electricity production and emissions at sub - installation level over the five calendar years preceding its submission . free allocations shall only be given to installations where such information is provided . ### a list of installations covered by this directive for the two years beginning on 1 january 2021 shall be submitted by 30 september 2018 , and lists for the subsequent two years shall be submitted every two years thereafter . each list shall include information on production activity , transfers of heat and gases , electricity production and emissions at sub - installation level over the five calendar years preceding its submission . free allocations shall only be given to installations where such information is provided .


### 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 . ### each of the beneficiary member states shall be responsible for the governance of its own allocation share of the fund . each of the beneficiary member states shall be assisted by an advisory board , which shall be composed of representatives from the beneficiary member states and the eib . the advisory board shall be responsible to determine guidance in relation to objectives of an union - level investment policy with regard to this fund , appropriate financing instruments and role of national financing institutions as well as investment selection criteria , taking into account technological neutrality of projects and specific needs of the beneficiary member states as well as transparency and effectiveness of the selection process . the beneficiary member states shall be responsible for the day - to - day management of the fund . the rules elaborated by member states shall be made public . upon a request by a beneficiary member state , the ebi shall take over the day - to - day management as mentioned above in the member state concerned . the chairmanship of the advisory board shall be held by the beneficiary member states and be based on a one - year - term rotation model . decisions on financing particular projects in beneficiary member states is taken by member state concerned on the basis of the agreed guidance . member states may decide to use all or part of the proceeds from the fund in order to finance the projects contributing to the implementation of a national programmes serving specific objectives in line with the objectives of the modernisation fund . simplified arrangements for both small - scale projects and projects contributing to implementation of national programs shall be ensured .


### 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 €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 . investments with a value of less than €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 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 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 . ### beneficiary member states shall be responsible for the governance of its own allocation share of the fund . each of the beneficiary member states shall be assisted by an advisory board which shall be composed of representatives from the beneficiary member states and the eib . the advisory board shall be responsible to determine framework guidance which shall include an union - level investment policy , appropriate financing instruments and investment selection criteria . day - to - day management shall be provided by the beneficiary member states . the chairmanship of the advisory board shall be annually held by the beneficiary member state . the individual decision on financing particular projects is taken by member state .


### 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 . as agreed 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 . given the unpredictability of future growth rates , there is a need to encourage industrial growth and in order to mitigate the effects of a cross sectoral correction factor , flexibility should be introduced to the 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 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 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 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 commission shall publish before 2018 the state aid guidelines for member states .


### 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 the beneficiary member states assisted by an advisory board , which shall be composed of representatives from the beneficiary member states and bei . the advisory board shall be responsible to elaborate guidelines in relation to objectives of the union - level investment policy related to this fund and investment selection criteria which should take into account national circumstances .


### sectors and sub - sectors where the product exceeds 0 . 2 from multiplying their intensity of trade with third countries , defined as the ratio between the total value of exports to third countries plus the value of imports from third countries and the total market size for the european economic area , by their emission intensity , measured in kgco2 divided by their gross value added , shall be deemed to be at risk of carbon leakage . such sectors and sub - sectors shall be allocated allowances free of charge for the period up to 2030 at 100% of the quantity determined in accordance with the measures adopted pursuant to article 10a . ### the level to which sectors and sub - sectors are exposed to the risk of carbon leakage shall be assessed by multiplying their intensity of trade with third countries , defined as the ratio between the total value of exports to third countries plus the value of imports from third countries and the total market size for the european economic area , by their emission intensity , measured in kgco2 divided by their gross value added . considering that some sectors and subsectors exposed to the risk of carbon leakage are able to pass on more of the cost of allowances in product prices than others , sectors and sub - sectors exposed to the risk of carbon leakage shall be allocated allowances free of charge for the period up to 2030 at the following percentages of the quantity determined in accordance with the measures adopted pursuant to article 10a : for sectors and sub - sectors where the result is equal to or exceeds 1 , 6 , the percentage shall be 100% ; for sectors and sub - sectors where the result is equal to or exceeds 0 , 9 , the percentage shall be 75% ; for sectors and sub - sectors where the result is equal to or exceeds 0 , 15 , the percentage shall be 50% ; for sectors and sub - sectors where the result is below 0 , 15 , the percentage shall be 30% ;


### 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 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 .


### 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 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 .


### the beneficiary member states shall report annually to the management committee on investments financed by the fund . the report shall be made public and include : ### the beneficiary member states shall report annually to the advisory board on investments financed by the fund . the report shall be made public and include :


### 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 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 support 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 .


### 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 .


### 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 , including district heating , high efficiency cogeneration as well as carbon capture and utilization 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 . the innovation funds shall be complemented with other innovation - support schemes at eu and national levels , in particular on the market deployment of innovative technologies .


### 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 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 avoided . in addition , to supplement the resources already being used to accelerate demonstration of innovative renewable energy technologies , eu ets allowances should be used to provide guaranteed rewards for deployment of new renewable energy technologies and industrial innovation in low - carbon technologies and processes in the union for co2 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 . the maximum percentage of project costs to be supported may vary by category of project .


### specific conservation measures for groups 3 to 7 ### specific conservation measures


### when scientific advice indicates that for a given year the spawning biomass of any of the stocks in group 1 is below the msy btrigger or that the abundance of any of the functional units in group 2 is below the abundancebuffer set out in annex ii , column a , all appropriate remedial measures shall be adopted to ensure rapid return of the stock or functional unit concerned to levels above those capable of producing maximum sustainable yield . in particular , by way of derogation from article 4 fishing opportunities shall be set at levels consistent with a fishing mortality , taking into account the decrease in biomass or abundance , that is reduced below the range laid down in annex i , column a . ### when scientific advice indicates that for a given year the spawning biomass of any of the stocks in group 1 is below the msy btrigger or that the abundance of any of the functional units in group 2 is below the abundancebuffer set out in annex ii , column a , all appropriate remedial measures shall be adopted to ensure rapid return of the stock or functional unit concerned to levels above those capable of producing maximum sustainable yield . in particular , by way of derogation from article 4 fishing opportunities shall be set at levels consistent with a fishing mortality , taking into account the decrease in biomass or abundance , that is reduced below the range laid down in annex i , column b .


### provisions linked to the landing obligation for groups 1 to 7 ### provisions linked to the landing obligation


### the plan shall implement the ecosystem - based approach to fisheries management in order to ensure that negative impacts of fishing activities on the marine ecosystem are minimised . it shall be coherent with union environmental legislation , in particular with the objective of achieving good environmental status by 2020 as set out in article 1 of directive 2008 / 56 / ec . ### the plan shall implement the ecosystem - based approach to fisheries management in order to ensure that negative impacts of fishing activities on the marine ecosystem are minimised . the plan shall complement and be consistent with union environmental legislation , in particular with the objective of achieving good environmental status by 2020 as set out in article 1 of directive 2008 / 56 / ec .


### this regulation establishes a multi - annual plan for the demersal stocks in waters of union waters of ices zones iia , iiia and iv and the fisheries exploiting those stocks . ### this regulation establishes a multi - annual plan for the demersal stocks in waters of union waters of ices zones iia , iiia and iv and the fisheries exploiting those stocks ; the uk ' s exit&#160 ; of the union will impact the plan .


### in the absence of scientific advice on fishing mortality rate consistent with maximum sustainable yield , fishing opportunities shall be consistent with scientific advice to ensure the sustainability of the stocks in line with the precautionary approach . ### management measures , including , where appropriate , fishing opportunities for the stocks referred to in article 1 , shall be determined taking into account the best available scientific advice and in line with the objectives laid down in article 3 .


### when scientific advice indicates that the spawning stock biomass of any of the stocks concerned is below the blim or the abundance of any of the norway lobster functional units is below abundancelimit as set out in annex ii , column b to this regulation , further remedial measures shall be taken to ensure rapid return of the stock or functional unit concerned to levels above the level capable of producing maximum sustainable yield . in particular , those remedial measures shall include , by way of derogation from paragraphs 2 and 4 of article 4 , suspending the targeted fishery for the stock concerned and the adequate reduction of fishing opportunities . ### when scientific advice indicates that the spawning stock biomass of any of the stocks concerned is below the blim or the abundance of any of the norway lobster functional units is below abundancelimit as set out in annex ii , column b to this regulation , further remedial measures shall be taken to ensure rapid return of the stock or functional unit concerned to levels above the level capable of producing maximum sustainable yield . in particular , those remedial measures may include , by way of derogation from paragraphs 2 and 4 of article 4 , suspending the targeted fishery for the stock concerned and the adequate reduction of fishing opportunities .


### pursuant to articles 9 and 10 of regulation no 1380 / 2013 , multi - annual plans are to be based on scientific , technical and economic advice and contain objectives , quantifiable targets with clear timeframes , conservation reference points and safeguards . ### pursuant to articles 9 and 10 of regulation no 1380 / 2013 , multi - annual plans are to be based on scientific , technical and economic advice and contain objectives , quantifiable targets with clear timeframes , conservation reference points , objectives and safeguards , technical measures to be taken to achieve the targets laid down in article 15 of regulation no 1380 / 2013 , and measures to avoid and minimise unwanted catches as far as possible .


### the objective of this plan should be to contribute to the achievement of the objectives of the cfp , and especially reaching and maintaining msy for the stocks concerned , contributing to the implementation of the landing obligation for demersal stocks subject to catch limits and contributing to the implementation of the ecosystem - based approach to fisheries management . ### the objective of this plan should be to achieve the objectives of the cfp , and especially restoring and maintaining msy for all populations of fish stocks to which this regulation applies above levels capable of producing msy , contributing to the implementation of the landing obligation for demersal stocks subject to catch limits and contributing to the implementation of the ecosystem - based approach to fisheries management .


### the objective of this plan should be to contribute to the achievement of the objectives of the cfp , and especially reaching and maintaining msy for the stocks concerned , contributing to the implementation of the landing obligation for demersal stocks subject to catch limits and contributing to the implementation of the ecosystem - based approach to fisheries management . ### the objective of this plan should be to contribute to the achievement of the objectives of the cfp , and especially restoring and maintaining fish stocks to levels capable of producing msy , contributing to the implementation of the landing obligation for demersal stocks subject to catch limits and contributing to the implementation of the ecosystem - based approach to fisheries management by minimising the negative effects of fishing on the marine ecosystem .


### “group 2” means norway lobster functional units for which targets as fmsy ranges and safeguards linked to abundance are established in this plan consisting of : ### “group 2” means norway lobster by functional units :


### proposal for a regulation of the european parliament and of the council on establishing a multi - annual plan for demersal stocks in the north sea and the fisheries exploiting those stocks and repealing council regulation 676 / 2007 and council regulation 1342 / 2008 ### proposal for a regulation of the european parliament and of the council on establishing a multi - annual plan for certain demersal stocks in the north sea and adjoining waters , and the fisheries exploiting those stocks , adopting provisions concerning the implementation of the landing obligation in the north sea and in all other waters of the union and outside it which do not fall under the sovereignty or jurisdiction of third countries , and repealing council regulation 676 / 2007 and council regulation 1342 / 2008


### the first measurements shall be carried out within three months following the registration of the plant . ### the first measurements shall be carried out within 12 months following the registration of the plant or the date of start of operation whichever is the latest .


### in case the second subparagraph of article 5 is used , a declaration signed by the operator to operate the plant not more than 300 hours per year ; ### in case the third subparagraph of article 5 or the second subparagraph of article 5 are used , a declaration signed by the operator to operate the plant not more than 500 hours per year ;


### in case the second subparagraph of article 5 is used , a declaration signed by the operator to operate the plant not more than 300 hours per year ; ### in case the third subparagraph of article 5 or the second subparagraph of article 5 is used , a declaration signed by the operator to operate the plant not more than 1500 hours per year as a rolling average over a period of five years ;


### the first measurements shall be carried out within three months following the registration of the plant . ### the first measurements shall be carried out within six months following the permit or registration of the plant or the date of start of the operation , whichever is the latest .


### prior to the conclusion of a pepp - related contract , the pepp provider or distributor referred to in article 19 of this regulation shall specify , on the basis of information obtained from the pepp saver , the retirement - related demands and the needs of that pepp saver and shall provide the pepp saver with objective information about the pepp in a comprehensible form to allow that pepp saver to make an informed decision . ### prior to the conclusion of a pepp - related contract , the pepp provider or distributor shall specify , on the basis of information obtained from the pepp saver , the retirement - related demands and the needs of that pepp saver and shall provide the pepp saver with objective information about the pepp in a comprehensible form to allow that pepp saver to make an informed decision . any contract proposed shall be consistent with the pepp saver’s retirement - related demands and needs .


### potential pepp savers shall also be provided with information on the past performance of investments related to the pepp scheme covering a minimum of five years , or , where the scheme has been operating for fewer than five years , covering all the years that the scheme has been operating , as well as with information on the structure of costs borne by pepp savers and pepp beneficiaries . ### potential pepp savers shall also be provided with information on the average annual rate of return on total investments related to the pepp scheme over the last five years , or , where the scheme has been operating for fewer than five years , over all full calendar years that the scheme has been operating . the average annual rate of return shall be calculated net of all relevant costs and shall include changes in the market prices of the underlying capital instruments evaluated at the first and last day of business over the relevant time period . fixed and one - off costs of the pepp provider shall be broken down to pepp schemes in proportion to the market values of the capital instruments at the last day of business in each calendar year . potential pepp savers shall be warned that past performance of a pepp scheme has no predictive power for its performance in the future .


### when providing advice on pepps , the pepp provider or distributor referred to in article 19 of this regulation shall comply with the applicable national laws giving effect to the rules set out in article 25 of directive 2014 / 65 / eu and with any directly applicable union legislation adopted under article 25 of that directive relating to those rules . ### if advice has been given in relation to a pepp , the pepp provider or distributor shall comply with the applicable national laws giving effect to the rules set out in article 25 of directive 2014 / 65 / eu and with any directly applicable union legislation adopted under article 25 of that directive relating to those rules .


### the pepp saver shall be able to opt for a different investment option once every five years of accumulation in the pepp . ### the terms for modification of the investment option shall be listed in the pepp contract .


### pepp providers shall offer up to five investment options to pepp savers . ### pepp providers shall offer up to five investment options to pepp savers , at the discretion of the provider and categorised according to risk .


### without prejudice to the deadline under article 13 , immediately after being informed about the pepp saver ' s intention to exercise his right of mobility between member states , the pepp provider shall inform the pepp saver about the possibility to open a new compartment within the pepp saver ' s individual account and about the deadline within which such compartment could be opened . ### immediately after being informed about the pepp saver ' s intention to exercise his right of mobility between member states , the pepp provider shall inform the pepp saver about the possibility to open a new compartment within the pepp saver ' s individual account and about the deadline within which such compartment could be opened .


### this regulation applies to all products that are subject to the union harmonisation legislation set out in the annex to this regulation . ### this regulation applies to all products that are subject to directive 2001 / 95 / ec or the union harmonisation legislation set out in the annex to this regulation .


### the product does not conform to applicable requirements under union harmonisation legislation . ### the product does not conform to applicable requirements under union harmonisation legislation or under directive 2001 / 95 / ec .


### the commission is empowered to adopt delegated acts in accordance with article 9e amending annex vii in order to adapt the modalities specified in the annex to technical progress . ### in accordance with article 9e amending annex vii in order to adapt the modalities specified in the annex to technical progress there should be adopted implementing acts .


### within one year after official co2 emission data are published by the commission pursuant to regulation … / …***** , the commission shall adopt a delegated act , in accordance with article 9e , to define the reference values of co2 emissions , together with an appropriate categorisation of the heavy duty vehicles concerned . ### within two year after official co2 emission data are published by the commission pursuant to regulation … / …***** , the commission shall adopt a implementing act , in accordance with article 9e , to define the reference values of co2 emissions , together with an appropriate categorisation of the heavy duty vehicles concerned .


### ‘ light duty vehicle’ means a passenger car , a minibus or van ; ### ‘ light duty vehicle’ means a minibus or a van ;


### for light duty vehicles , until 31 december 2021 , member states may vary tolls and user charges according to the environmental performance of the vehicle . ### for light duty vehicles , until 31 december 2021 , member states may vary tolls and user charges according to the environmental performance of the vehicle . in order to maintain legal certainty and to maintain existing agreements for construction and / or maintenance of motorways , they should be exempt from the regulations until the end of their validity .


### within one year from the entry into force of the delegated act , member states shall vary the infrastructure charge taking into account the reference co2 emission values and the relevant vehicle categorisation . charges shall be varied in such a way that no infrastructure charge is more than 100% above the same charge for equivalent vehicles having the lowest , but not zero , co2 emissions . zero - emission vehicles shall benefit from infrastructure charges reduced by 75% compared to the highest rate . ### within two year from the entry into force of the implementing act , member states shall vary the infrastructure charge taking into account the reference co2 emission values and the relevant vehicle categorisation . charges shall be varied in such a way that no infrastructure charge is more than 100% above the same charge for equivalent vehicles having the lowest , but not zero , co2 emissions .


### in view of their potential to considerably affect the road haulage market , as well as the social protection of workers , serious infringements of union rules on the posting of workers and the law applicable to contractual obligations should be added to the items relevant to the assessment of good repute . ### in view of their potential to considerably affect the road haulage market , as well as the social protection of workers , serious infringements of union rules on the posting of workers , cabotage and the law applicable to contractual obligations should be added to the items relevant to the assessment of good repute .


### national road haulage services carried out in the host member state by a non - resident haulier shall only be deemed to comply with this regulation if the haulier can produce clear evidence of the preceding international carriage . ; ### national road haulage services carried out in the host member state by a non - resident haulier shall only be deemed to comply with this regulation if the haulier can produce clear evidence of the preceding genuine international carriage . ;


### currently , member states are entitled to make access to the occupation of road transport operator subject to requirements additional to those specified in regulation no 1071 / 2009 . this possibility has not proven to be necessary in order to respond to imperative needs and has led to divergences in respect of such access . it should therefore be abolished . ### member states are entitled to make access to the occupation of road transport operator subject to requirements additional to those specified in regulation no 1071 / 2009 . this possibility is necessary to provide for a level playing field and common standards across member states .


### the rules on national transport performed on a temporary basis by non - resident hauliers in a host member state should be clear , simple and easy to enforce , while broadly maintaining the level of liberalisation achieved so far . ### the rules on national transport performed on a temporary basis by non - resident hauliers in a host member state should be clear , simple and easy to enforce , while broadly maintaining the level of liberalisation achieved so far . cabotage operations meet the objective of environmental efficiency ; by avoiding unladen journeys , it is possible to reduce fuel consumption and ghg emissions . however , cabotage should not be misused in order to circumvent the applicable labour and social law of the host member state . this would undermine not only the level playing field , but also workers’ rights and road safety .


### define the degree of seriousness of infringements according to their potential to create a risk of fatalities or serious injuries and to distort competition in the road transport market , including by undermining the working conditions of transport workers ; ### define the degree of seriousness of infringements according to their potential to create a risk of fatalities or serious injuries ;


### so far , and unless otherwise provided for in national law , the rules on access to the occupation of road transport operator do not apply to undertakings engaged in the occupation of road haulage operator solely by means of motor vehicles with a permissible laden mass not exceeding 3 . 5 tonnes or combinations of vehicles not exceeding that limit . the number of such undertakings which are active in both national and international transport operations has been increasing . as a result , several member states have decided to apply the rules on access to the occupation of road transport operator , provided for in regulation no 1071 / 2009 , to those undertakings . to ensure a minimum level of professionalisation of the sector using vehicles with a permissible laden mass not exceeding 3 . 5 tonnes by way of common rules , and thus to approximate competitive conditions between all operators , this provision should be deleted , whereas the requirements regarding effective and stable establishment and appropriate financial standing should be rendered mandatory . ### so far , and unless otherwise provided for in national law , the rules on access to the occupation of road transport operator do not apply to undertakings engaged in the occupation of road haulage operator solely by means of motor vehicles with a permissible laden mass not exceeding 3 . 5 tonnes or combinations of vehicles not exceeding that limit . the number of such undertakings has been increasing , particularly on the national transport market , because of the use of light commercial vehicles in towns and on shorter routes . nonetheless , it is appropriate that , for undertakings engaged in international transport , the requirements regarding effective and stable establishment and appropriate financial standing should be rendered mandatory . this will enable fairer competition on the internal market to be achieved without imposing unnecessary administrative and financial burdens on transport undertakings , particularly smes .


### currently , member states are entitled to make access to the occupation of road transport operator subject to requirements additional to those specified in regulation no 1071 / 2009 . this possibility has not proven to be necessary in order to respond to imperative needs and has led to divergences in respect of such access . it should therefore be abolished . ### member states are entitled to make access to the occupation of road transport operator subject to requirements additional to those specified in regulation no 1071 / 2009 .


### each member state shall organise checks in such a way that , as from 1 january 2020 , in every calendar year at least 2 % of all cabotage operations performed in their territory are checked . they shall increase the percentage to at least 3 % from 1 january 2022 . the basis for the calculation of that percentage shall be the total cabotage activity in the member state in terms of tonnes - kilometres in year t - 2 , as reported by eurostat . ### each member state shall be responsible for pursuing an effective enforcement policy in its territory . as part of that policy , each member state shall organise checks in such a way that , as from 1 january 2020 , in every calendar year at least 2 % of all cabotage operations performed in their territory are checked . they shall increase the percentage to at least 3 % from 1 january 2022 . the basis for the calculation of that percentage shall be the total cabotage activity in the member state in terms of tonnes - kilometres in year t - 2 , as reported by eurostat .


### so far , and unless otherwise provided for in national law , the rules on access to the occupation of road transport operator do not apply to undertakings engaged in the occupation of road haulage operator solely by means of motor vehicles with a permissible laden mass not exceeding 3 . 5 tonnes or combinations of vehicles not exceeding that limit . the number of such undertakings which are active in both national and international transport operations has been increasing . as a result , several member states have decided to apply the rules on access to the occupation of road transport operator , provided for in regulation no 1071 / 2009 , to those undertakings . to ensure a minimum level of professionalisation of the sector using vehicles with a permissible laden mass not exceeding 3 . 5 tonnes by way of common rules , and thus to approximate competitive conditions between all operators , this provision should be deleted , whereas the requirements regarding effective and stable establishment and appropriate financial standing should be rendered mandatory . ### so far , and unless otherwise provided for in national law , the rules on access to the occupation of road transport operator do not apply to undertakings engaged in the occupation of road haulage operator solely by means of motor vehicles with a permissible laden mass not exceeding 3 . 5 tonnes or combinations of vehicles not exceeding that limit . the number of such undertakings has been increasing particularly on the national transport market , because of the use of light commercial vehicles in towns and on shorter routes . as a result , several member states have decided to apply the rules on access to the occupation of road transport operator , provided for in regulation no 1071 / 2009 , to those undertakings . to ensure a minimum level of professionalisation of the sector , avoid loopholes and create fairer competition on the internal market without imposing unnecessary administrative and financial burdens on transport undertakings , particularly smes , vehicles with a permissible laden mass not exceeding 3 . 5 tonnes involved in international transport and cabotage operations by way of common rules , and thus to approximate competitive conditions between all operators , this provision should be deleted , whereas the requirements regarding effective and stable establishment and appropriate financial standing should be rendered mandatory


### member states shall take the necessary measures to ensure that by 2030 the amount of municipal waste landfilled is reduced to 10% of the total amount of municipal waste generated . ### member states shall take the necessary measures to ensure that by 2030 the amount of municipal waste landfilled is reduced to 5% of the total amount of municipal waste generated .


### member states shall take the necessary measures to ensure that by 2030 the amount of municipal waste landfilled is reduced to 10% of the total amount of municipal waste generated . ### member states shall take the necessary measures to ensure that the amount of municipal waste landfilled is systematically reduced .


### the targets laid down in council directive 1999 / 31 / ec14 setting landfill restrictions should be amended to make them better reflect the union ' s ambition to move to a circular economy and make progress in the implementation of the raw materials initiative15 by reducing landfilling of waste destined for landfills for non - hazardous waste . __________________ 14 council directive 1999 / 31 / ec of 26 april 1999 on the landfill of waste . 15 com 699 and com 297 . ### the targets laid down in council directive 1999 / 31 / ec14 setting landfill restrictions should be ambitious and should therefore be increased to make them better reflect the union ' s ambition to move to a circular economy and make progress in the implementation of the raw materials initiative15 by phasing out landfilling of waste destined for landfills for non - hazardous waste . __________________ 14 council directive 1999 / 31 / ec of 26 april 1999 on the landfill of waste . 15 com 699 and com 297 .


### clear environmental , economic and social benefits would be derived from further restricting landfilling , starting with waste streams that are subject to separate collection . technical , environmental or economical feasibility of recycling or other recovery of residual waste resulting from separately collected waste should be taken into account in the implementation of these landfill restrictions . ### clear environmental , economic and social benefits would be derived from further restricting landfilling , starting with waste streams that are subject to separate collection with the objective of accepting only non - recyclable and non - biodegradable municipal waste .


### a progressive reduction of landfilling is necessary to prevent detrimental impacts on human health and the environment and to ensure that economically valuable waste materials are gradually and effectively recovered through proper waste management and in line with the waste hierarchy . this reduction should avoid the development of excessive capacity for the treatment of residual waste facilities , such as through energy recovery or low grade mechanical biological treatment of untreated municipal waste , as this could result in undermining the achievement of the union ' s long - term preparation for reuse and recycling targets for municipal waste as laid down in article 11 of directive 2008 / 98 / ec . similarly , and to prevent detrimental impacts on human health and the environment , while member states should take all necessary measures to ensure that only waste that has been subject to treatment is landfilled , compliance with such obligation should not lead to the creation of overcapacities for the treatment of residual municipal waste . in addition , in order to ensure consistency between the targets laid down in article 11 of directive 2008 / 98 / ec and the landfill reduction target defined in article 5 of this directive and to ensure a coordinated planning of the infrastructures and investments needed to meet those targets , member states which may obtain additional time for the attainment of the municipal waste recycling targets should also be given additional time to attain the landfill reduction target for 2030 as laid down in this directive . ### a progressive reduction of landfilling is necessary to prevent detrimental impacts on human health and the environment and to ensure that economically valuable waste materials are gradually and effectively recovered through proper waste management and in line with the waste hierarchy . this reduction should avoid the development of excessive capacity for the treatment of residual waste facilities , such as through energy recovery or low grade mechanical biological treatment of untreated municipal waste , as this could result in undermining the achievement of the union ' s long - term preparation for reuse and recycling targets for municipal waste as laid down in article 11 of directive 2008 / 98 / ec . similarly , and to prevent detrimental impacts on human health and the environment , while member states should take all necessary measures to ensure that only waste that has been subject to treatment is landfilled , compliance with such obligation should not lead to the creation of overcapacities for the treatment of residual municipal waste . due attention must be paid to ensuring consistency between the targets laid down in article 11 of directive 2008 / 98 / ec and the need to reduce the volume of landfill in accordance with article 5 of this directive and to ensuring a coordinated planning of the infrastructures and investments needed to meet those targets .


### biodegradable municipal waste accounts for a large proportion of municipal waste . landfilling of untreated biodegradable waste poses significant negative enviornmental effects in terms of greenhouse gas emissions and pollution of surface water , groundwater , soil and air . while directive 1999 / 31 / ec already sets landfill diversion targets for biodegradable waste it is appropriate to put in place further restrictions on the landfilling of biodegradable waste by prohibiting the landfilling of biodegradable waste that has been separately collected in accordance with article 22 of directive 2008 / 98 / ec . ### biodegradable municipal waste accounts for a large proportion of municipal waste . landfilling of untreated biodegradable waste poses significant negative environmental effects in terms of greenhouse gas emissions and pollution of surface water , groundwater , soil and air . while directive 1999 / 31 / ec already sets landfill diversion targets for biodegradable waste it is appropriate to put in place further restrictions on the landfilling of biodegradable waste by prohibiting the landfilling of biodegradable waste , which should be separately collected in accordance with article 22 of directive 2008 / 98 / ec . the commission and the member states should encourage the use of alternative measures for the sustainable treatment of biodegradable waste in line with new technologies and techniques such as worm composting or bio - digestion .


### biodegradable municipal waste accounts for a large proportion of municipal waste . landfilling of untreated biodegradable waste poses significant negative enviornmental effects in terms of greenhouse gas emissions and pollution of surface water , groundwater , soil and air . while directive 1999 / 31 / ec already sets landfill diversion targets for biodegradable waste it is appropriate to put in place further restrictions on the landfilling of biodegradable waste by prohibiting the landfilling of biodegradable waste that has been separately collected in accordance with article 22 of directive 2008 / 98 / ec . ### biodegradable municipal waste accounts for a large proportion of municipal waste . landfilling of untreated biodegradable waste poses significant negative environmental effects in terms of greenhouse gas emissions and pollution of surface water , groundwater , soil and air . while directive 1999 / 31 / ec already sets landfill diversion targets for biodegradable waste it is appropriate to put in place further restrictions on the landfilling of biodegradable waste by prohibiting the landfilling of biodegradable waste to be separately collected in accordance with article 22 of directive 2008 / 98 / ec .


### waste that has been separately collected pursuant to article 11 and 22 of directive 2008 / 98 / ec . ### waste to be separately collected pursuant to article 11 and 22 of directive 2008 / 98 / ec ;


### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies . ### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of experts who are knowledgeable and experienced in the areas of investment projects and who are also aware of the specific circumstances of member states , particularly those that are affected by the crisis . the investment committee should be accountable to a steering board of the efsi and to the european parliament , who should supervise the fulfilment of the efsi ' s objectives . the work of the investment committee should be monitored by the european parliament . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies .


### alongside the financing operations that will be conducted through the efsi , a european investment advisory hub should be created . the eiah should provide strengthened support for project development and preparation across the union , by building on the expertise of the commission , the eib , national promotional banks and the managing authorities of the european structural and investment funds . this should establish a single point of entry for questions related to technical assistance for investments within the union . ### alongside the financing operations that will be conducted through the efsi , a european investment advisory hub should be created . the eiah should provide strengthened support for project development and preparation across the union , by building on the expertise of the commission , the eib , national promotional banks and the managing authorities of the european structural and investment funds . this should establish a single point of entry for questions related to technical assistance for investments within the union . in order to increase the accessibility and effectiveness of its advice , the eiah should set up branches in the member states . methods for the development of the local financial market should also be covered by eiah advice .


### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . ### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of structural problems , unsustainable debt and market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness .


### the efsi should target projects with a higher risk - return profile than existing eib and union instruments to ensure additionality over existing operations . the efsi should finance projects across the union , including in the countries most affected by the financial crisis . the efsi should only be used where financing is not available from other sources on reasonable terms . ### the efsi should target projects with a higher risk profile than existing eib and union instruments , which yield returns in the long term and are vital from the point of view of the coherent social and economic development of member states within the european union . the efsi should finance projects across the union , paying particular attention to countries that are particularly affected by unemployment and in which the level of social and economic development is below the european average . the efsi should only be used where financing is not available from other sources on reasonable terms .


### provided that all relevant eligibility criteria are fulfilled , member states may use european structural investment funds to contribute to the financing of eligible projects that are supported by the eu guarantee . the flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the efsi . ### provided that all relevant eligibility criteria are fulfilled , member states may , where appropriate , use european structural investment funds to contribute to the financing of eligible projects that are supported by the eu guarantee . the flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the efsi . the efsi may not be used for co - financing projects eligible under european structural and investment funds .


### the investment environment within the union should be improved by removing barriers to investment , reinforcing the single market and by enhancing regulatory predictability . the work of the efsi , and investments across europe generally , should benefit from this accompanying work . ### the investment environment within the union should be improved by removing barriers to investment , reinforcing the single market , keeping labour markets sufficiently flexible , ensuring labour costs including wages are in line with productivity , encouraging social protection systems that make work attractive , restructuring and capitalizing banks , improving the efficiency of public administration and tax systems , and by enhancing regulatory predictability . the work of the efsi , and investments across europe generally , should benefit from this accompanying work .


### the investment committee shall be composed of six independent experts and the managing director . independent experts shall have a high level of relevant market experience in project finance and be appointed by the steering board for a renewable fixed term of three years . ### the investment committee shall be composed of 10 experts and the managing director . independent experts shall have a high level of relevant market experience in project finance , and be acquainted with the specificities of local markets in the member states and with social issues . they shall be appointed by the steering board for a renewable fixed term of three years .


### no decision of the steering board shall be adopted if the commission or the eib votes against it . ### no decision of the steering board shall be adopted if the commission or the eib votes against it . the european parliament shall be informed of any disputes in the annual report .


### vessels equipped with trawl nets and purse seines , irrespective of the vessel’s length overall , are classified as fishing actively for small pelagic stocks when sardine and / anchovy account for at least 50% of the catch in live weight in any given fishing trip . ### vessels equipped with trawl nets and purse seines , irrespective of the vessel’s length overall , are classified as fishing actively for small pelagic stocks when sardine and / anchovy account for at least 50% of the catch in live weight .