### competent authorities shall regularly report to the gas coordination group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans . in particular competent authorities shall report to the gas coordination group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans . the commission may have a facilitating role overall in the preparation of the plans , in particular for the establishment of the cooperation mechanism . if competent authorities within a region do not agree on a cooperation mechanism , the commission may propose a cooperation mechanism for that region . they shall ensure the regular monitoring of the implementation of such plans . ### competent authorities shall regularly report to the gas coordination group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans . in particular competent authorities shall report to the gas coordination group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans . the commission may have a facilitating role overall in the preparation of the plans , in particular for the establishment of the cooperation mechanism . if national authorities of connected member states do not agree on the content of the regional aspects of the preventive action plan , the commission may propose a regional cooperation mechanism . they shall ensure the regular monitoring of the implementation of such plans .


### the roles and responsibilities of all natural gas undertakings and competent authorities should therefore be defined precisely in order to keep the internal gas market functioning properly , particularly in the event of supply disruptions and crises . such roles and responsibilities should be established in such a way as to ensure that a three - level approach is respected which would involve first the relevant natural gas undertakings and industry , then member states at national or regional level , and then the union . this regulation should enable natural gas undertakings and customers to rely on market mechanisms for as long as possible when coping with disruptions . however , it should also provide for mechanisms that can be deployed when markets alone are no longer able to deal adequately with a gas supply disruption . ### the roles and responsibilities of all natural gas undertakings and competent authorities should therefore be defined precisely in order to keep the gas market functioning properly , particularly in the event of supply disruptions and crises . such roles and responsibilities should be established in such a way as to ensure that a two - level approach is respected which would involve first the relevant natural gas undertakings and member states at national or regional level , and the union . this regulation should enable natural gas undertakings and customers to rely on mechanisms for possible state control when coping with disruptions .


### to the competent authority and to the commission immediately after their conclusion or modification the gas supply contracts with a duration of more than 1 year concluded or modified after [ op : please insert the date of entry in force of this regulation ] that individually or cumulatively with other contracts with the same supplier or its affiliates provide more than 40% of yearly natural gas consumption in the member state concerned . the notification obligation shall not apply to the modifications related only to the gas price . the notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract . ### to the competent authority immediately after their conclusion or modification the gas supply contracts with a duration of more than 1 year concluded or modified after [ op : please insert the date of entry in force of this regulation ] that individually or cumulatively with other contracts with the same supplier or its affiliates provide more than 40% of yearly natural gas consumption in the member state concerned . the notification obligation shall not apply to the modifications related only to the gas price . the notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract . the commission may request from the competent authorities the information provided by natural gas undertakings on an aggregate level .


### as long as the supply to households , essential social services and district heating installations in the member state having declared the emergency is not satisfied , despite the application of the measure in paragraph 1 , the gas supply to customers other than households , essential social services and district heating installations in any other member state , directly connected to the member state which declared the emergency , shall not continue to the extent necessary to supply the households , essential social services and district heating installations in the member states having declared the emergency . ### as long as gas supply to protected customers in the member state that have called for the application of solidarity measures is not satisfied , the gas supply to protected customers in any other member state , directly connected to that member state , shall not continue to the extent necessary to supply the protected customers in the member states having declared the emergency .


### where the commission considers that the gas supply in a region or the union as whole is affected or is likely to be affected it may require the competent authorities to collect and submit to the commission information necessary to assess the situation of the gas supply in the union . the commission may share its assessment with the gas coordination group . ### where the commission considers that the gas supply in a region or the union as whole is affected or is likely to be affected it may require the competent authorities to collect and submit to the commission information necessary to assess the situation of the gas supply in the union . the commission shall share its assessment with the gas coordination group .


### no later than 31 march 2017 member states shall notify the commission their definition of protected customers , the annual gas consumption volumes of the protected customers and the percentage they represent of the total annual final gas consumption in that member state . where a member state includes in its definition of protected customers the categories referred to in point or of article 2 it shall specify in the notification to the commission the gas consumption volumes corresponding to consumers belonging to those categories and the percentage that each of those groups of consumers represents in terms of the annual final use of gas . ### no later than 31 march 2017 member states shall notify the commission the annual gas consumption volumes of the protected customers and the percentage they represent of the total annual final gas consumption in that member state .


### in duly justified circumstances irrespective of a declaration of emergency , the competent authority may require gas undertakings to provide the information referred to in paragraph 1 or additional information necessary to assess the overall situation of the gas supply in the member state or other member states , including contractual information . the commission may request from the competent authorities the information provided by natural gas undertakings . ### irrespective of a declaration of emergency , the competent authority may require the following details , and only these details of gas supply contracts , as collected under remit reporting requirements , with a duration of more than one year from acer in order to assess the situation of the security of supply at national , regional and union level . the commission may request from the competent authorities the information provided by natural gas undertakings on an aggregate level . duration of the contract delivery points maximum daily volumes contracted in the event of an emergency contracted volumes in total on an annual basis and the average volume per month ; minimum daily , monthly and yearly gas volumes conditions for the suspension of delivery


### in duly justified circumstances irrespective of a declaration of emergency , the competent authority may require gas undertakings to provide the information referred to in paragraph 1 or additional information necessary to assess the overall situation of the gas supply in the member state or other member states , including contractual information . the commission may request from the competent authorities the information provided by natural gas undertakings . ### irrespective of a declaration of emergency , the competent authority may require natural gas undertakings to provide the information referred to in paragraph 1 or additional information necessary to assess the overall situation of the gas supply in the member state or other member states , including contractual information . the commission may request from the competent authorities the information provided by natural gas undertakings .


### the obligation to ensure that the remaining infrastructure has the technical capacity to satisfy total gas demand , as referred to in paragraph 1 , shall also be considered to be fulfilled where the competent authority demonstrates in the preventive action plan that a supply disruption may be sufficiently compensated for , in a timely manner , by appropriate market - based demand - side measures . for that purpose , the formula provided in point 4 of annex ii shall be used . ### the obligation to ensure that the remaining infrastructure has the technical capacity to satisfy total gas demand , as referred to in paragraph 1 , shall also be considered to be fulfilled where the competent authority demonstrates in the preventive action plan that a supply disruption may be sufficiently compensated for , in a timely manner , by appropriate demand - side measures . for that purpose , the formula provided in point 4 of annex ii shall be used .


### the risk assessment once agreed by all member states in the region shall be notified to the commission for the first time no later than on 1 september 2018 . the risk assessment shall be updated every four years unless circumstances warrant more frequent updates . the risk assessment shall take account of progress made in investments needed to cope with the infrastructure standard defined in article 4 and of country - specific difficulties encountered in the implementation of new alternative solutions . it shall also build on the experience acquired through the simulation of the emergency plans contained in article 9 . ### the regional chapter on risk assessment once agreed by all connected member states , cooperating pursuant to article 3 shall be notified to the commission for the first time no later than on 1 september 2018 . the risk assessment shall be updated every four years unless circumstances warrant more frequent updates . the risk assessment shall take account of progress made in investments needed to cope with the infrastructure standard defined in article 4 and of country - specific difficulties encountered in the implementation of new alternative solutions . it shall also build on the experience acquired through the simulation of the emergency plans contained in article 9 .


### the competent authorities of each region as listed in annex i shall jointly make an assessment at regional level of all risks affecting the security of gas supply . the assessment shall take into account all relevant risks such as natural disasters , technological , commercial , social , political and other risks . the risk assessment shall be carried out by : ### each competent authority in cooperation with the national regulatory authorities where they are not the competent authorities of each member state shall undertake a full national assessment including regional aspects of all risks affecting the security of gas supply so as to allow for a genuine bottom - up approach of cooperation . the assessment shall be conducted on the basis of the following common elements of the risks affecting the security of gas supply in its member state by :


### the technical , legal and financial arrangements for the application of paragraph 3 shall be agreed among the member states which are directly connected to each other and described in the emergency plans of their respective regions . such arrangements may cover , among others , gas prices to be applied , use of interconnectors , including bi - directional capacity , gas volumes and the coverage of compensation costs . market - based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3 . in case the technical , legal and financial arrangements necessary to apply paragraph 3 are amended , the relevant emergency plan shall be updated accordingly . ### the technical , legal and financial arrangements for the application of paragraph 3 shall be agreed among the member states which are directly connected to each other and described in the emergency plans of their respective regions . in case the technical , legal and financial arrangements necessary to apply paragraph 3 are amended , the relevant emergency plan shall be updated accordingly .


### the measures , volumes and capacities needed to fulfil the infrastructure and supply standards in each member state of the region , as laid down in articles 4 and 5 , including where applicable , the extent to which demand - side measures can sufficiently compensate , in a timely manner , for a supply disruption as referred to in article 4 , the identification of the single largest gas infrastructure of common interest in the case of application of article 4 , the necessary gas volumes per category of protected customers and per scenario as referred to in article 5 and any increased supply standard under article 5 , including a justification of the compliance with the conditions set in article 5 and a description of a mechanism to temporarily reduce any increased supply standard or additional obligation in accordance with article 12 ; ### the measures , volumes and capacities needed to fulfil the infrastructure and supply standards in the connected member states , as laid down in articles 4 and 5 , including where applicable , the extent to which demand - side measures can sufficiently compensate , in a timely manner , for a supply disruption as referred to in article 4 , the identification of the single largest gas infrastructure of common interest in the case of application of article 4 , the necessary gas volumes of protected customers and per scenario as referred to in article 5 ;


### the commission communication ' framework strategy for a resilient energy union with a forward - looking climate change policy ' 14 from february 2015 , highlights the fact that the energy union rests on solidarity and trust , which are necessary features of energy security . this regulation should aim to boost solidarity and trust between the member states and should put in place the measures needed to achieve these aims , thus paving the way for implementing the energy union . __________________ 14 communication from the commission to the european parliament and the council , the european economic and social committee , the committee of the regions and the european investment bank , com 80 final . ### the commission communication ' framework strategy for a resilient energy union with a forward - looking climate change policy ' 14 from february 2015 , highlights the fact that the energy union rests on solidarity and trust , which are necessary features of energy security . this directive should aim to boost solidarity and trust between the member states and should put in place the measures needed to achieve these aims . __________________ 14 communication from the commission to the european parliament and the council , the european economic and social committee , the committee of the regions and the european investment bank , com 80 final .


### competent authorities shall regularly report to the gas coordination group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans . in particular competent authorities shall report to the gas coordination group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans . the commission may have a facilitating role overall in the preparation of the plans , in particular for the establishment of the cooperation mechanism . if competent authorities within a region do not agree on a cooperation mechanism , the commission may propose a cooperation mechanism for that region . they shall ensure the regular monitoring of the implementation of such plans . ### competent authorities shall regularly report to the gas coordination group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans . in particular competent authorities shall report to the gas coordination group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans . the commission may have a facilitating role overall in the preparation of the plans , in particular for the establishment of the cooperation mechanism . if competent authorities of connected member states do not agree on the content of the regional aspects of the preventive action plan , the commission may propose a regional cooperation mechanism . they shall ensure the regular monitoring of the implementation of such plans .


### the definition of protected customers in each member state of the region and the information described in the second subparagraph of article 5 ; ### the definition of protected customers in each member state and the information described in the second subparagraph of article 5 ;


### the measures , volumes and capacities needed to fulfil the infrastructure and supply standards in each member state of the region , as laid down in articles 4 and 5 , including where applicable , the extent to which demand - side measures can sufficiently compensate , in a timely manner , for a supply disruption as referred to in article 4 , the identification of the single largest gas infrastructure of common interest in the case of application of article 4 , the necessary gas volumes per category of protected customers and per scenario as referred to in article 5 and any increased supply standard under article 5 , including a justification of the compliance with the conditions set in article 5 and a description of a mechanism to temporarily reduce any increased supply standard or additional obligation in accordance with article 12 ; ### the measures , volumes and capacities needed to fulfil the infrastructure and supply standards in each member state of the region , as laid down in articles 4 and 5 , including the assessment of the potential for gas demand reduction through refurbishing of the building stock and economy wide energy efficiency measures and an action plan for its deployment in a timely manner ; and where applicable , the extent to which demand - side measures can sufficiently compensate , in a timely manner , for a supply disruption as referred to in article 4 , the identification of the single largest gas infrastructure of common interest in the case of application of article 4 , the necessary gas volumes of protected customers and per scenario as referred to in article 5 ;


### the competent authorities within each region shall agree on a cooperation mechanism to conduct the risk assessment within the deadline provided for in paragraph 5 of this article . competent authorities shall report to the gas coordination group on the agreed cooperation mechanism for conducting the risk assessment 18 months before the deadline for the adoption of the risk assessment and the updates of the risk assessment . the commission may have a facilitating role overall in the preparation of the risk assessment , in particular for the establishment of the cooperation mechanism . if competent authorities within a region do not agree on a cooperation mechanism , the commission may propose a cooperation mechanism for that region . ### on the basis of the regional cooperation of member states pursuant article 3 , the competent authorities shall agree on a cooperation mechanism to conduct the risk assessment within the deadline provided for in paragraph 5 of this article . competent authorities shall report to the gas coordination group on the agreed cooperation mechanism for conducting the risk assessment 18 months before the deadline for the adoption of the risk assessment and the updates of the risk assessment . the commission may have a facilitating role overall in the preparation of the risk assessment , in particular for the establishment of the cooperation mechanism . if competent authorities of the connected member states regarding regional cooperation do not agree on the content of the regional aspects of the risk assessment , the commission may propose a cooperation mechanism for the concerned member states .


### the member states shall carry out an impact assessment on all preventive non - market based measures to be adopted after the entry into force of this regulation , including the measures to comply with the supply standard set out in article 5 and the measures for the increased supply standard set out in article 5 . such impact assessment shall cover at least the following : ### the national regulatory authorities shall carry out an impact assessment on all preventive non - market based measures to be adopted after the entry into force of this regulation , including the measures to comply with the supply standard set out in article 5 . such impact assessment shall cover at least the following :


### in the event of a supply crisis , market players should be given sufficient opportunity to respond to the situation with market - based measures . where market measures have been exhausted and they are still insufficient , member states and their competent authorities should take measures to remove or mitigate the effects of the supply crisis . ### in the event of a supply crisis , market players shall put themselves at the disposal of member states and their competent authorities in order to implement as efficiently as possible measures taken to remove or mitigate the effects of the supply crisis .


### the member states acting on their own cannot satisfactorily achieve the objective of this regulation , namely to guarantee a secure gas supply within the union . given the scale or effects of the action , it is better achieved at union level . the union may therefore adopt measures , in accordance with the principle of subsidiarity set out in article 5 of the treaty on european union . in accordance with the principle of proportionality set out in that article , this regulation does not go beyond what is necessary to achieve that objective . ### the member states acting on their own cannot satisfactorily achieve the objective of this directive , namely to guarantee a secure gas supply within the union . given the scale or effects of the action , it is better achieved at union level . the union may therefore adopt measures , in accordance with the principle of subsidiarity set out in article 5 of the treaty on european union . in accordance with the principle of proportionality set out in that article , this regulation does not go beyond what is necessary to achieve that objective .


### in a spirit of solidarity , regional cooperation , involving both public authorities and natural gas undertakings , should be the guiding principle of this regulation , to identify the relevant risks in each region and optimise the benefits of coordinated measures to mitigate them and to implement the most cost - effective measures for union consumers . ### in a spirit of solidarity , regional cooperation , involving both public authorities and natural gas undertakings , should be the guiding principle of this regulation , to identify the relevant regional risks and optimise the benefits of coordinated measures to mitigate them and to implement the most cost - effective measures for union consumers .


### it is necessary to ensure the predictability of the action to take in the event of an emergency , allowing all market participants sufficient opportunity to react and also prepare for such circumstances . as a rule , the competent authorities should therefore abide by their emergency plan . in duly justified exceptional circumstances , they should be allowed to take action which deviates from those plans . it is also important to make the way in which emergencies are announced more transparent and predictable . information on the system balancing position , the framework for which is set out in commission regulation no 312 / 201419 , may play an important role in this regard . that information should be available to competent authorities and the national regulatory authorities , if the latter are not the competent authority on a real time basis . __________________ 19 commission regulation no 312 / 2014 of 26 march 2014 establishing a network code on gas balancing of transmission networks . ### it is necessary to ensure the predictability of actions to be taken in the event of an emergency , granting all market participants sufficient opportunity to prepare for such situations and react to them . as a rule , the competent authorities should therefore comply with their emergency plan . in exceptional circumstances and on reasonable grounds , they should be allowed to take action which deviates from those plans . the manner in which emergencies are announced should be more transparent and predictable . information on the system balancing position , the framework for which is laid down in commission regulation no 312 / 201419 , may play an important role in this regard . that information should be available on a real - time basis to the competent authorities and to the national regulatory authorities , if they are not the competent authorities . __________________ 19 commission regulation no 312 / 2014 of 26 march 2014 establishing a network code on gas balancing of transmission networks .


### in order to make the regional cooperation feasible , member states should establish a cooperation mechanism within each region . such mechanism or mechanisms should be developed sufficiently in time to allow for conducting the risk assessment and drawing up meaningful plans at regional level . member states are free to agree on a cooperation mechanism best suited for a given region . the commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies . in absence of an agreement on the cooperation mechanism , the commission may propose a suitable cooperation mechanism for a given region . ### in order to make the regional cooperation feasible , member states should establish a cooperation mechanism within each region . such mechanism or mechanisms should be developed sufficiently in time to allow for conducting the risk assessment and drawing up meaningful plans at regional level . member states are free to agree on a cooperation mechanism best suited for a given region . the commission should have a facilitating role in the overall process and share best practises in the context of regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies . in absence of an agreement on the cooperation mechanism , the commission may propose a suitable cooperation mechanism for a given region .


### the competent authority shall require the natural gas undertakings , that it identifies , to take measures to ensure the supply of gas to the protected customers of the member state in each of the following cases : ### the competent authority shall require suppliers , that it identifies , to take measures to ensure , based on the physical availability of gas , the supply of gas to the protected customers of the member state in each of the following cases :


### in order to make the regional cooperation feasible , member states should establish a cooperation mechanism within each region . such mechanism or mechanisms should be developed sufficiently in time to allow for conducting the risk assessment and drawing up meaningful plans at regional level . member states are free to agree on a cooperation mechanism best suited for a given region . the commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies . in absence of an agreement on the cooperation mechanism , the commission may propose a suitable cooperation mechanism for a given region . ### in order to make the regional cooperation feasible , member states connected directly or in certain circumstances indirectly through a non - eu member state should establish a cooperation mechanism . such mechanism or mechanisms should be developed sufficiently in time to allow for conducting the risk assessment and drawing up meaningful plans . member states are free to agree on a cooperation mechanism best suited for their grouping . the commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role for the preparation of the different documents or establishing dedicated bodies . in absence of an agreement on the cooperation mechanism , the commission may propose a suitable cooperation mechanism for a group of connected member states .


### in order to make the regional cooperation feasible , member states should establish a cooperation mechanism within each region . such mechanism or mechanisms should be developed sufficiently in time to allow for conducting the risk assessment and drawing up meaningful plans at regional level . member states are free to agree on a cooperation mechanism best suited for a given region . the commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies . in absence of an agreement on the cooperation mechanism , the commission may propose a suitable cooperation mechanism for a given region . ### in order to make the regional cooperation feasible , member states directly connected , or in certain cases indirectly via a non - eu member state , should establish a cooperation mechanism . such mechanism or mechanisms should be developed sufficiently in time to allow for conducting the risk assessment and drawing up meaningful plans . member states are free to agree on a cooperation mechanism . the commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role for the preparation of the different documents or establishing dedicated bodies . in absence of an agreement on the cooperation mechanism , the commission may propose a suitable cooperation mechanism for connected member states .


### the competent authorities of each region as listed in annex i shall jointly make an assessment at regional level of all risks affecting the security of gas supply . the assessment shall take into account all relevant risks such as natural disasters , technological , commercial , social , political and other risks . the risk assessment shall be carried out by : ### each competent authority in cooperation with the national regulatory authorities where they are not the competent authorities of each member state shall undertake a full national assessment including regional aspects of all risks affecting the security of gas supply so as to allow for a genuine bottom - up approach of cooperation . the assessment shall be conducted on the basis of the following common elements of the risks affecting the security of gas supply in its member state by :


### the roles and responsibilities of all natural gas undertakings and competent authorities should therefore be defined precisely in order to keep the internal gas market functioning properly , particularly in the event of supply disruptions and crises . such roles and responsibilities should be established in such a way as to ensure that a three - level approach is respected which would involve first the relevant natural gas undertakings and industry , then member states at national or regional level , and then the union . this regulation should enable natural gas undertakings and customers to rely on market mechanisms for as long as possible when coping with disruptions . however , it should also provide for mechanisms that can be deployed when markets alone are no longer able to deal adequately with a gas supply disruption . ### the roles and responsibilities of all natural gas undertakings and competent authorities should therefore be defined precisely in order to keep the gas market functioning properly , particularly in the event of supply disruptions and crises . such roles and responsibilities should be established in such a way as to ensure that a two - level approach is respected which would involve first the relevant natural gas undertakings and member states at national or regional level , and the union . this regulation should enable natural gas undertakings and customers to rely on mechanisms for possible state control when coping with disruptions .


### support schemes for electricity generated from renewable sources have proved to be an effective way of fostering deployment of renewable electricity . if and when member states decide to implement support schemes , such support should be provided in a form that is as non - distortive as possible for the functioning of electricity markets . to this end , an increasing number of member states allocate support in a form where support is granted in addition to market revenues . ### support schemes for electricity generated from renewable sources have proved to be an effective way of fostering deployment of renewable electricity . if and when member states decide to implement support schemes , such support should be provided in a form that is as non - distortive as possible for the functioning of electricity markets and respects as far as possible the principle of technological neutrality . to this end , an increasing number of member states allocate support in a form where support is granted in addition to market revenues .


### biomass fuels shall have to fulfil the sustainability and greenhouse gas emissions saving criteria set out in paragraphs 2 to 7 only if used in installations producing electricity , heating and cooling or fuels with a fuel capacity equal to or exceeding 20 mw in case of solid biomass fuels and with an electrical capacity equal to or exceeding 0 . 5 mw in case of gaseous biomass fuels . member states may apply the sustainability and greenhouse gas emission saving criteria to installations with lower fuel capacity . ### biomass fuels shall have to fulfil the sustainability and greenhouse gas emissions saving criteria set out in paragraphs 2 to 7 only if used in installations producing electricity , heating and cooling or fuels with a fuel capacity equal to or exceeding 20 mw . member states may apply the sustainability and greenhouse gas emission saving criteria to installations with lower fuel capacity .


### it is thus appropriate to establish a union binding target of at least 27 % share of renewable energy . member states should define their contribution to the achievement of this target as part of their integrated national energy and climate plans through the governance process set out in regulation [ governance ] . ### it is thus appropriate to establish a union binding target of 27 % share of renewable energy . member states should define their contribution to the achievement of this target as part of their integrated national energy and climate plans through the governance process set out in regulation [ governance ] .


### it is thus appropriate to establish a union binding target of at least 27 % share of renewable energy . member states should define their contribution to the achievement of this target as part of their integrated national energy and climate plans through the governance process set out in regulation [ governance ] . ### it is thus appropriate to establish a union binding target of at least 27 % share of renewable energy by 2030 . member states should define their contribution to the achievement of this target as part of their integrated national energy and climate plans through the governance process set out in regulation [ governance ] .


### ‘ non - food cellulosic material’ means feedstocks mainly composed of cellulose and hemicellulose , and having a lower lignin content than ligno - cellulosic material ; it includes food and feed crop residues , grassy energy crops with a low starch content , industrial residues , and material from biowaste ; ### ‘ non - food cellulosic material’ means feedstocks partly composed of cellulose and hemicellulose , and having a lower lignin content than ligno - cellulosic material ; it includes food and feed crop residues , grassy energy crops with a low starch content , industrial residues , and material from biowaste ;


### member states should take additional measures in the event that the share of renewables at the union level does not meet the union trajectory towards the at least 27 % renewable energy target . as set out in regulation [ governance ] , if an ambition gap is identified by the commission during the assessment of the integrated national energy and climate plans , the commission may take measures at union level in order to ensure the achievement of the target . if a delivery gap is identified by the commission during the assessment of the integrated national energy and climate progress reports , member states should apply the measures set out in regulation [ governance ] , which are giving them enough flexibility to choose . ### as set out in regulation [ governance ] , if an ambition gap is identified by the commission during the assessment of the integrated national energy and climate plans , the commission may take measures at union level in order to ensure the achievement of the target . if a delivery gap is identified by the commission during the assessment of the integrated national energy and climate progress reports , member states should apply the measures set out in regulation [ governance ] , which are giving them enough flexibility to choose .


### member states should take additional measures in the event that the share of renewables at the union level does not meet the union trajectory towards the at least 27 % renewable energy target . as set out in regulation [ governance ] , if an ambition gap is identified by the commission during the assessment of the integrated national energy and climate plans , the commission may take measures at union level in order to ensure the achievement of the target . if a delivery gap is identified by the commission during the assessment of the integrated national energy and climate progress reports , member states should apply the measures set out in regulation [ governance ] , which are giving them enough flexibility to choose . ### member states should take additional measures in the event that the share of renewables at the union level does not meet the union trajectory towards the at least 27 % renewable energy target . as set out in regulation [ governance ] , if an ambition gap is identified by the commission during the assessment of the integrated national energy and climate plans , the commission may take measures at union level in order to ensure the achievement of the target in an equitable manner and in agreement with the member states . if a delivery gap is identified by the commission during the assessment of the integrated national energy and climate progress reports , member states should apply the measures set out in regulation [ governance ] , which are giving them enough flexibility to choose .


### the opening of support schemes to cross - border participation limits negative impacts on the internal energy market and can , under certain conditions , help member states achieve the union target more cost - efficiently . cross - border participation is also the natural corollary to the development of the union renewables policy , with a union - level binding target replacing national binding targets . it is therefore appropriate to require member states to progressively and partially open support to projects located in other member states , and define several ways in which such progressive opening may be implemented , ensuring compliance with the provisions of the treaty on the functioning of the european union , including articles 30 , 34 and 110 . ### the opening of support schemes to cross - border participation limits negative impacts on the internal energy market and can , under certain conditions , help member states achieve the union target more cost - efficiently . cross - border participation is also the natural corollary to the development of the union renewables policy , with a union - level binding target replacing national binding targets .


### owing to its coverage and its potential to help resolve global challenges , the space programme of the union has a strong international dimension . the commission should therefore be enabled to manage , on behalf of the union , and coordinate activities on the international scene on behalf of the union , in particular to defend the interests of the union and its member states in international fora , including in the area of frequencies , to promote the union ' s technology and industry , and to encourage cooperation in the field of training , bearing in mind the need to ensure the reciprocity of the rights and obligations of the parties . it is particularly important that the union be represented by the commission in the bodies of the international cospas - sarsat programme or in relevant sectoral un bodies including the food and agriculture organisation , as well as the world meteorological organisation . ### owing to its coverage and its potential to help resolve global challenges , the space programme of the union has a strong international dimension . the commission should therefore coordinate its efforts with those of the member states in order to defend the interests of the programme in international fora , including in the area of frequencies , to promote the union’s technology and industry , and to encourage cooperation in the field of training , bearing in mind the prerequisite of ensuring the reciprocity of the rights and obligations of the parties . it is particularly important that the union be represented as an observer by the commission in the bodies of the international cospas - sarsat programme or in relevant sectoral un bodies including the food and agriculture organisation , as well as the world meteorological organisation .


### in order to swiftly incorporate into union law future binding amendments to the iccat recommendations , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of amending the annexes to this regulation . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council . ### in order to swiftly incorporate into union law future binding amendments to the iccat recommendations , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of amending the annexes to this regulation . parliament and the council will ensure that this power relates solely to non - essential elements of this act and will regularly monitor compliance with this criterion , bearing in mind the rapid changes in the issues at stake in the conservation of tunas . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council .


### enhanced public scrutiny of corporate income taxes borne by multinational undertakings carrying out activities in the union is an essential element to further foster corporate responsibility , to contribute to the welfare through taxes , to promote fairer tax competition within the union through a better informed public debate and to restore public trust in the fairness of the national tax systems . such public scrutiny can be achieved by means of a report on income tax information , irrespective of where the ultimate parent undertaking of the multinational group is established . ### the tax avoidance and tax evasion practices pursued by multinationals at the expense of the member states generate major imbalances in the internal market and distortions in competition that are detrimental to undertakings , and especially small and medium - sized enterprises , that pay their fair share of tax , and to consumers . it follows that enhanced and coordinated public scrutiny of corporate income taxes borne by multinational undertakings carrying out activities in the union is an essential element to further foster corporate responsibility , to contribute to the welfare through taxes , to promote fairer tax competition within the union through a better informed public debate and to restore public trust in the fairness of the national tax systems . such public scrutiny can be achieved by means of a report on income tax information , irrespective of where the ultimate parent undertaking of the multinational group is established .


### in order to ensure a level of detail that enables citizens to better assess the contribution of multinational undertakings to welfare in each member state , the information should be broken down by member state . moreover , information concerning the operations of multinational enterprises should also be shown with a high level of detail as regards certain tax jurisdictions which pose particular challenges . for all other third country operations , the information should be given in an aggregate number . ### in order to ensure a level of detail that enables citizens to better assess the contribution of multinational undertakings to welfare in each member state , the information should be broken down by member state . moreover , information concerning the operations of multinational enterprises should also be shown with a high level of detail as regards certain tax jurisdictions which pose particular challenges . for all other third country operations also , the information should be given in detailed and granular figures .


### the undertaking which opened the branch is either an affiliated undertaking of a group which is controlled by an ultimate parent undertaking not governed by the law of a member state and which has a consolidated net turnover exceeding eur 750 000 000 or an undertaking that is not an affiliated and which has a net turnover exceeding eur 750 000 000 ; ### the undertaking which opened the branch is either an affiliated undertaking of a group which is controlled by an ultimate parent undertaking not governed by the law of a member state and which has a consolidated net turnover exceeding eur 40 000 000 or an undertaking that is not an affiliated and which has a net turnover exceeding eur 40 000 000 ;


### member states shall require ultimate parent undertakings governed by their national laws and having a consolidated net turnover exceeding eur 750 000 000 as well as undertakings governed by their national laws that are not affiliated undertakings and having a net turnover exceeding eur 750 000 000 to draw up and publish a report on income tax information on an annual basis . ### member states shall require ultimate parent undertakings governed by their national laws and having a consolidated net turnover exceeding eur 40 000 000 as well as undertakings governed by their national laws that are not affiliated undertakings and having a net turnover exceeding eur 40 000 000 to draw up and publish a report on income tax information on an annual basis .


### the risk factors featured in a prospectus shall be limited to risks which are specific to the issuer and / or the securities and are material for taking an informed investment decision , as corroborated by the content of the registration document and the securities note . they shall be allocated across a maximum of three distinct categories which shall differentiate them by their relative materiality based on the issuer ' s assessment of the probability of their occurrence and the expected magnitude of their negative impact . ### the risk factors featured in a prospectus shall include all risks which are specific to the issuer and the securities and are material for taking an informed investment decision , as corroborated by the content of the registration document and the securities note . they shall be allocated across a maximum of three distinct categories which shall differentiate them by their relative materiality based on the issuer ' s assessment of the probability of their occurrence and the expected magnitude of their negative impact .


### the competent authority of each host member state may require that the summary referred to in article 7 be translated into its official language or languages , but it shall not require the translation of any other part of the prospectus . ### the competent authority of each host member state shall require that the summary referred to in article 7 be written in the official languages , or in one of the official languages , used in the part of the member state where the security is offered , or in another language accepted by the competent authorities of that member state , or , where it has been written in a different language , it shall be translated into one of those languages . the translation shall faithfully and accurately reflect the content of the original summary . the competent authority of each host member state shall not require the translation of any other part of the prospectus . if a security is offered in a member state through marketing documents written in one or more official languages of that member state , the summary shall be written in at least the corresponding official languages .


### the total consideration of the offer is less than a monetary amount calculated over a period of 12 months , which shall not exceed eur 10 000 000 . ### the total consideration of the offer is less than a monetary amount calculated over a period of 12 months , which shall not exceed eur 5 000 000 .


### the risk factors featured in a prospectus shall be limited to risks which are specific to the issuer and / or the securities and are material for taking an informed investment decision , as corroborated by the content of the registration document and the securities note . they shall be allocated across a maximum of three distinct categories which shall differentiate them by their relative materiality based on the issuer ' s assessment of the probability of their occurrence and the expected magnitude of their negative impact . ### the risk factors featured in a prospectus include all risks which are specific to the issuer and the securities and are material for taking an informed investment decision , as corroborated by the content of the registration document and the securities note .


### an introduction containing warnings ; ### critical information about the risk and reward profile of the investment , containing appropriate guidance and warnings in relation to all risks associated with investments and the possible maximum loss of invested capital ;


### member states should put in place adequate incentives for the application of the waste hierarchy , in particular , by means of financial incentives aimed at achieving the waste prevention and recycling objectives of this directive , such as landfill and incineration charges , pay as you throw schemes , extended producer responsibility schemes and incentives for local authorities . ### member states could put in place adequate incentives for the application of the waste hierarchy , in particular , by means of financial incentives aimed at achieving the waste prevention and recycling objectives of this directive , such as landfill and incineration charges , pay as you throw schemes , extended producer responsibility schemes and incentives for local authorities .


### ' in order to comply with the objectives of this directive , and move towards a european recycling society with a high level of resource efficiency , member states shall take the necessary measures designed to achieve the following targets : ' ### in paragraph 2 , the introductory wording is replaced by the following : “in order to comply with the objectives of this directive , and move towards recycling with a high level of resource efficiency , member states shall take the necessary measures designed to achieve the following targets : ”


### cover the entire cost of waste management for the products it puts on the union market , including all the following : ### cover the following costs of waste management for the products it puts on the union market :


### - encourage the use of products that are resource efficient , durable , reparable and recyclable ; ### - encourage the production and use of products and materials that are resource efficient , durable , reparable and recyclable , such as permanent materials ;


### - encourage the use of products that are resource efficient , durable , reparable and recyclable ; ### - encourage the production and use of products that are resource efficient , durable , reparable and recyclable ;


### paragraphs 2 , 3 and 4 are replaced by the following : 2 . the commission shall be empowered to adopt delegated acts in accordance with article 38a in order to establish detailed criteria on the application of the conditions laid down in paragraph 1 to certain waste . those detailed criteria shall include limit values for pollutants where necessary and shall take into account any possible adverse environmental effects of the substance or object . ### paragraphs 3 and 4 are replaced by the following :


### member states shall make use of adequate economic instruments to provide incentives for the application of the waste hierarchy . ### member states may make use of adequate economic instruments to provide incentives for the application of the waste hierarchy .


### promoting socio - economic integration of third country nationals and of marginalised communities such as the roma ; ### promoting socio - economic integration of households living in conditions of absolute or relative poverty ;


### a modern internal market promotes competition and benefits consumers , businesses and employees . making better use of the ever evolving internal market in services should help european businesses create jobs and grow across borders , offer wider choice of services at better prices , and maintain high standards for consumers and workers . to achieve this , the programme should contribute to the removal of remaining barriers , and to ensure a regulatory framework that can accommodate new innovative business models . ### a modern internal market promotes competition and may benefit consumers , businesses and employees .


### placing on the market of products that are not compliant with union law puts those who comply at disadvantage and may endanger consumers . many entrepreneurs disregard the rules either through lack of knowledge or intentionally to gain a competitive advantage . market surveillance authorities are often underfunded and constrained by national boundaries , while entrepreneurs trade at union or even global level . in particular , in the case of e - commerce , market surveillance authorities have great difficulties in tracing non - compliant products imported from third countries and identifying the responsible entity within their jurisdiction . the programme should therefore seek to strengthen product compliance by providing the right incentives to entrepreneurs , intensifying compliance checks and promoting closer cross - border cooperation among enforcement authorities . the programme should also contribute to the consolidation of the existing framework for market surveillance activities , encourage joint actions of market surveillance authorities from different member states , improve the exchange of information and promote convergence and closer integration of market surveillance activities . ### placing on the market of products that are not compliant with union law or type - approved puts those who comply at a disadvantage and may endanger consumers . many entrepreneurs disregard the rules either through lack of knowledge or intentionally to gain a competitive advantage . market surveillance authorities are often underfunded and constrained by national boundaries , while entrepreneurs trade at union level , at a cross - border level , or even at a global level . in particular , in the case of e - commerce , market surveillance authorities have great difficulties in tracing non - compliant products imported from third countries and identifying the responsible entity within their jurisdiction . the programme should therefore seek to strengthen product compliance by providing the right incentives to entrepreneurs , intensifying compliance checks and promoting closer cross - border cooperation among enforcement authorities . the programme should also contribute to the consolidation of the existing framework for market surveillance activities , encourage joint actions of market surveillance authorities from different member states , improve the exchange of information and promote convergence and closer integration of market surveillance activities .


### improving the competitiveness of enterprises with special emphasis on smes and achieving additionality through the provision of measures that provide various forms of support to smes , access to markets including the internationalisation of smes , favourable business environment for smes , the competitiveness of sectors , the modernisation of industry and the promotion of entrepreneurship ; ### improving the competitiveness of enterprises , improving access to markets , improving the business environment so that it is favourable for smes , improving the competitiveness of sectors , modernising agriculture and industry and promoting entrepreneurship ;


### ‘ retaliation’ means any threatened or actual act or omission prompted by the internal or external reporting which occurs in a work - related context and causes or may cause unjustified detriment to the reporting person ; ### ‘ retaliation’ means any threatened or actual act or omission prompted by the internal or external reporting which occurs in a work - related context and causes or may cause unjustified detriment to the reporting person , in good faith , reflecting a serious threat or injury to the public interest ;


### in certain policy areas , breaches of union law may cause serious harm to the public interest , in the sense of creating significant risks for the welfare of society . where weaknesses of enforcement have been identified in those areas , and whistleblowers are in a privileged position to disclose breaches , it is necessary to enhance enforcement by ensuring effective protection of whistleblowers from retaliation and introducing effective reporting channels . ### in certain policy areas , breaches of union law may cause serious harm to the public interest . where weaknesses of enforcement have been identified in those areas , and whistleblowers are in a privileged position to disclose breaches , it is necessary to provide a minimum framework to strengthen law enforcement by ensuring effective protection of whistleblowers from retaliation and introducing effective reporting channels .


### when appropriate , the commission services may issue a report describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file . ### the commission may adopt a report by delegated act describing the specific situation concerning the criteria listed in paragraph 6a in a certain country or a certain sector . the commission shall adopt a report by delegated act for countries referred to in paragraph 6b which shall include an assessment of the fulfilment of the criteria in paragraph 6b . such reports and the evidence on which it is based , as well as relevant findings from prior eu investigations and country reports , shall be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file .


### the union industry may rely on the report referred to in point for the calculation of normal value when filing a complaint in accordance with article 5 or a request for a review in accordance with article 11 . ### the union industry may rely on the report referred to in point for the calculation of normal value when filing a complaint in accordance with article 5 or a request for a review in accordance with article 11 or for a fresh investigation under article 12 .


### in case it is determined , when applying this provision or any other relevant provision of this regulation , that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of significant distortions , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks , or corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country , provided the relevant cost data are readily available . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits . ### in case it is determined that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of significant distortions , the normal value shall be based on a price or be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks , or corresponding costs of production and sale in an appropriate representative country , provided the relevant cost data are readily available . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits .


### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices . the platform should also advise the commission on whether the technical screening criteria are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment . ### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , experts from national environmental agencies , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices . the platform should also advise the commission on whether the technical screening criteria are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment .


### in order to specify the requirements set out in this regulation , and particularly to establish and update granular and calibrated technical screening criteria for different economic activities as to what constitutes a substantial contribution and significant harm to the environmental objectives , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the information required to comply with the disclosure obligation set out in article 4 , and the technical screening criteria mentioned in article 6 , article 7 , article 8 , article 9 , article 10 and article 11 . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law - making of 13 april 2016 . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council should receive all documents at the same time as member states’ experts , and the experts of the european parliament and the council should systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts . ### the european parliament and the council should receive all documents at the same time as member states’ experts , and the experts of the european parliament and the council should systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts .


### offering financial products which pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities . national requirements for marketing as sustainable investments financial products and corporate bonds , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation economic operators will find it easier to raise funding for their green activities across borders , as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union . ### offering financial products which pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities . national requirements for marketing as sustainable investments financial products and corporate bonds , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is possible that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . in order to remove obstacles to the functioning of the internal market and prevent their future emergence , one possible solution for consideration would be to harmonise the criteria for determining whether an economic activity is environmentally sustainable . with such harmonisation economic operators will find it easier to raise funding for their green activities across borders , as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union .


### distribution system operators which are not part of a vertically integrated undertaking or which are unbundled according to the provisions of article 35 [ recast of directive 2009 / 72 / ec as proposed by com 864 / 2 ] , shall cooperate at union level through a european entity for distribution system operators , in order to promote the completion and functioning of the internal market in electricity , and to promote optimal management and a coordinated operation of distribution and transmission systems . distribution system operators who wish to participate in the eu dso entity shall become registered members of the entity . ### all distribution system operators shall cooperate at union level through a european entity for distribution system operators , in order to promote the completion and functioning of the internal market in electricity and gas to support the development of a sustainable , decentralised and more integrated energy system , and to promote optimal management and a coordinated operation of distribution and transmission systems . distribution system operators and associations that represent them at union level who wish to participate in the eu dso entity shall become registered members of the entity . statuses shall ensure that decision - making process takes into account regional differences of distribution network .


### market rules shall enable the efficient dispatch of generation assets and demand response ; ### market rules shall enable the efficient dispatch of generation assets , storage and demand response ;


### by [ op : please add specific date – three months after entry into force ] the agency shall provide a recommendation addressed to regulatory authorities on the progressive convergence of transmission and distribution tariff methodologies . that recommendation shall address at least : ### by [ op : please add specific date – three months after entry into force ] nras cooperating in the framework of the agency shall define a publication template to favour transparency in the setting and structure of transmission tariffs . the template shall address at least the following minimum publication requirements regarding tariff charges : the ratio of tariffs applied to producers and to consumers ; the costs and / or allowed or target revenue of the transmission system operator to be recovered by tariffs ; time differentiated network tariffs ; locational signals ; the relationship between transmission and distribution tariffs groups of network users subject to tariffs , including tariff exemptions . by [ op : please add specific date – six months after entry into force ] , and afterwards regularly every two years , the national regulatory authority or the transmission system operator , as decided by the national regulatory authority , shall publish information according to the minimum publication requirements template , on the methodology for calculating the respective network tariffs .


### to address residual concerns that cannot be eliminated by the measures pursuant to article 18 , member states may introduce capacity mechanisms , subject to the provisions of this article and to the union state aid rules . ### to address residual concerns that cannot be eliminated economically by the measures pursuant to article 18 , member states may introduce capacity mechanisms , subject to the provisions of this article and to union&#160 ; state aid rules .


### each bidding zone should be equal to an imbalance price area . ### the imbalance price area shall be equal or smaller of the bidding zone .


### by [ op : please add specific date – three months after entry into force ] the agency shall provide a recommendation addressed to regulatory authorities on the progressive convergence of transmission and distribution tariff methodologies . that recommendation shall address at least : ### by [ op : please add specific date – three months after entry into force ] the agency shall define a publication template to favour transparency in the setting and structure of transmission tariffs . the template shall address at least the following minimum publication requirements regarding tariff charges :


### the commission shall , after consulting the agency , the entso for electricity and the other relevant stakeholders , establish a priority list every three years , identifying the areas set out in paragraph 1 to be included in the development of network codes . if the subject - matter of the network code is directly related to the operation of the distribution system and less relevant for the transmission system , the commission may require the eu dso entity for electricity instead of the entso for electricity to convene a drafting committee and submit a proposal for a network code to the agency . ### the commission shall , after consulting the agency , the entso for electricity , the eu dso entity and the other relevant stakeholders , establish a priority list every three years , identifying the areas set out in paragraph 1 to be included in the development of network codes . if the subject - matter of the network code is directly related to the operation of the distribution system and less relevant for the transmission system , the commission shall require the eu dso entity for electricity instead of the entso for electricity to convene a drafting committee and submit a proposal for a network code to the agency .


### regulatory authorities shall provide incentives to distribution system operators to procure services for the operation and development of their networks and integrate innovative solutions in the distribution systems . for that purpose regulatory authorities shall recognise as eligible and include all relevant costs in distribution tariffs and introduce performance targets in order to incentivise distribution system operators to raise efficiencies , including energy efficiency , in their networks . ### regulatory authorities may provide incentives to distribution system operators to procure services for the operation and development of their networks and integrate innovative solutions in the distribution systems , when such incentives are deemed to bring relevant benefits for the consumers and always taking into account local specificities . for that purpose regulatory authorities shall recognise as eligible and include reasonable and efficient costs in allowed revenues covered by distribution tariffs and introduce performance targets in order to incentivise distribution system operators to raise efficiencies , including energy efficiency , in their networks .


### marginal pricing shall be used for the settlement of balancing energy . market participants shall be allowed to bid as close to real time as possible , and at least after the intraday cross - zonal gate closure time determined in accordance with article 59 of commission regulation 2015 / 122234 . _________________ 34 commission regulation 2015 / 1222 of 24 july 2015 establishing a guideline on capacity allocation and congestion management . ### marginal pricing or pay - as bid shall be used for the settlement of balancing energy . market participants shall be allowed to bid as close to real time as possible , and at least after the intraday cross - zonal gate closure time determined in accordance with article 29 of commission regulation 2015 / 1222 .


### charges applied by network operators for access to networks , including charges for connection to the networks , charges for use of networks , and , where applicable , charges for related network reinforcements , shall be transparent , take into account the need for network security and flexibility and reflect actual costs incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non - discriminatory manner . in particular , they shall be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level , either positively or negatively . they shall not discriminate against energy storage and shall not create disincentives for participation in demand response . without prejudice to paragraph 3 , those charges shall not be distance - related . ### charges applied by network operators for access to networks , including charges for connection to the networks , charges for use of networks , and , where applicable , charges for related network reinforcements , shall be transparent , take into account the need for network security and flexibility and reflect actual costs incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non - discriminatory manner . in particular , they shall be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level , either positively or negatively . charges for generators shall not differ between member states . they shall not discriminate against energy storage and shall not create disincentives for participation in demand response . without prejudice to paragraph 3 , those charges shall not be distance - related .


### when adopting or amending guidelines , the commission shall consult the agency , the entso for electricity and other stakeholders where relevant . ### when adopting or amending guidelines , the commission shall consult the agency , the entso for electricity , the eu dso entity and other stakeholders where relevant


### maintaining or increasing interconnection capacities through network investments , in particular in new interconnectors . ### maintaining or increasing interconnection capacities through coordinated remedial actions and / or network investments up to the target value for transfer capacity at each cross - border boundary .


### member states shall monitor resource adequacy within their territory based on the european resource adequacy assessment pursuant to article 19 . ### member states shall use the results of the european resource adequacy assessment pursuant to article 19 to verify the resource adequacy concerns within their territory .


### where non - market based curtailment or redispatching is used , it shall be subject to financial compensation by the system operator requesting the curtailment or redispatching to the owner of the curtailed or redispatched generation or demand facility . financial compensation shall at least be equal to the highest of the following elements : ### where non - market based curtailment or redispatching is used , it shall be subject to financial payment by the system operator requesting the curtailment or redispatching to the owner of the curtailed or redispatched generation or demand facility . a methodology for determining financial compensation shall be established by the relevant regulatory authority and shall consider additional operating cost caused by the curtailment or redispatching .


### the objective of union policy in the field of external border management is to develop and implement european integrated border management at national and union level , which is a necessary corollary to the free movement of persons within the union and is a fundamental component of an area of freedom , security and justice . european integrated border management is central to improving migration management and ensuring a high level of internal security within the union . ### the objective of union policy in the field of external border management is to develop and implement european integrated border management at national and union level , which is a necessary corollary to the free movement of persons within the union and is a fundamental component of an area of freedom , security and justice . european integrated border management is intended to improve migration management and ensuring a high level of internal security within the union . the only effective way to meet these objectives , however , is to re - establish national borders .


### the executive director shall adopt a decision setting out the necessary corrective measures to be taken by the member state concerned , including by using resources under the union financial instruments . the decision of the executive director shall be binding on the member state and shall lay down the time - limit within which the measures are to be taken . ### the executive director shall , on the basis of the vulnerability assessment and taking into account the agency’s risk analysis , adopt a recommendation setting out the necessary corrective measures to be taken by the member state concerned , including by using resources under the union financial instruments . the recommendation of the executive director shall lay down the time - limit within which the measures are to be taken .


### having regard to the increasing migratory pressures at the external borders , to the necessity of ensuring a high level of internal security within the union and to safeguard the functioning of the schengen area as well as the overarching principle of solidarity , it is necessary to reinforce the management of the external borders by building on the work of frontex and further develop it into an agency with a shared responsibility for the management of the external borders . ### having regard to the increasing migratory pressures at the external borders , it is necessary to reinforce the management of the external borders by building on the work of frontex and further develop it into an agency with a shared responsibility for the management of the external borders .


### member states may maintain , amend or adopt mechanisms to screen foreign direct investments on the grounds of security or public order , under the conditions and in accordance with the terms set out in this regulation . ### member states may maintain , amend or adopt mechanisms to screen foreign direct investments on the grounds of security or public order .


### member states should , for the purposes of calculating whether the preparation for re - use and recycling targets are achieved , be able to take into account products and components that are prepared for re - use by recognised preparation for re - use operators and deposit - refund schemes . to ensure harmonised conditions for those calculations , the commission will adopt detailed rules on the determination of recognised preparation for re - use operators and deposit - refund schemes and on the collection , verification and reporting of data . ### member states should , for the purposes of calculating whether the preparation for re - use and recycling targets are achieved , be able to take into account products and components that are prepared for re - use by recognised preparation for re - use operators and deposit - refund schemes . for those calculations , member states will adopt detailed rules on the determination of recognised preparation for re - use operators and deposit - refund schemes and on the collection , verification and reporting of data .


### in order to ensure harmonised conditions for the application of paragraph 1 and and of annex iv , the commission shall adopt delegated acts in accordance with article 21a establishing minimum quality and operational requirements for the determination of recognised preparation for re - use operators and deposit - refund schemes , including specific rules on data collection , verification and reporting . ### in order to ensure the application of paragraph 1 and and of annex iv , member states shall establish minimum quality and operational requirements for the determination of recognised preparation for re - use operators and deposit - refund schemes , including specific rules on data collection , verification and reporting .


### no later than 31 december 2025 a minimum of 65% by weight of all packaging waste will be prepared for reuse and recycled ; ### deleted


### in addition , productive investments in enterprises other than smes can be supported when they involve cooperation with smes in research and innovation activities supported under point of article 2 . ### in addition , productive investments in enterprises other than smes can be supported when they involve cooperation with smes .


### in order to improve the overall administrative capacity of institutions and governance in member states implementing programmes under the investment for jobs and growth goal , it is necessary to enable supporting measures under all of the specific objectives . ### in order to improve the overall administrative capacity of institutions and governance in member states on the principle of multilevel governance implementing programmes under the investment for jobs and growth goal , it is necessary to enable supporting measures under all of the specific objectives .


### promoting renewable energy ; ### promoting renewable energy , including local sustainable energy resources ;


### the erdf shall support integrated territorial development based on territorial strategies in accordance with article [ 23 ] of regulation 2018 / xxxx [ new cpr ] focused on urban areas within programmes under both goals referred to in article 4 of that regulation . ### the erdf shall support integrated territorial development based on territorial strategies in accordance with article&#160 ; [ 23 ] of regulation 2018 / xxxx [ new cpr ] focused on functional - urban areas within programmes under both goals referred to in article 4 of that regulation .


### the erdf shall support integrated territorial development based on territorial strategies in accordance with article [ 23 ] of regulation 2018 / xxxx [ new cpr ] focused on urban areas within programmes under both goals referred to in article 4 of that regulation . ### the erdf may support integrated territorial development based on territorial strategies in accordance with article&#160 ; [ 23 ] of regulation 2018 / xxxx [ new cpr ] focused on urban areas within programmes under both goals referred to in article 4 of that regulation .


### within the framework of sustainable urban development , it is considered necessary to support integrated territorial development in order to more effectively tackle the economic , environmental , climate , demographic and social challenges affecting urban areas , including functional urban areas , while taking into account the need to promote urban - rural linkages . the principles for selecting the urban areas where integrated actions for sustainable urban development are to be implemented , and the indicative amounts for those actions , should be set out in the programmes under the investment for jobs and growth goal with a minimum target of 6% of the erdf resources allocated at national level for that purpose . it should also be established that this percentage should be respected throughout the programming period in the case of transfer between priorities within a programme or between programmes , including at the mid - term review . ### within the framework of sustainable urban development , it is considered necessary to support integrated territorial development in order to more effectively tackle the economic , environmental , climate , demographic , technology and social challenges affecting urban areas , including functional urban areas , while taking into account the need to promote urban - rural linkages . the principles for selecting the urban areas where integrated actions for sustainable urban development are to be implemented , and the indicative amounts for those actions , should be set out in the programmes under the investment for jobs and growth goal with a minimum target of 6% of the erdf resources allocated at national level for that purpose . it should also be established that this percentage should be respected throughout the programming period in the case of transfer between priorities within a programme or between programmes , including at the mid - term review .


### reflecting the importance of tackling climate change in line with the union ' s commitments to implement the paris agreement and the united nations sustainable development goals , the funds will contribute to mainstream climate actions and to the achievement of an overall target of 25 % of the eu budget expenditure supporting climate objectives . operations under the erdf are expected to contribute 30 % of the overall financial envelope of the erdf to climate objectives . operations under the cohesion fund are expected to contribute 37% of the overall financial envelope of the cohesion fund to climate objectives . ### reflecting the importance of tackling climate change in line with the union ' s commitments to implement the paris agreement and the united nations sustainable development goals , the funds will contribute to mainstream climate actions and to the achievement of an overall target of 25 % of the eu budget expenditure supporting climate objectives .


### member states shall implement integrated territorial development , supported by the erdf , exclusively through the forms referred to in article [ 22 ] of regulation 2018 / xxxx [ new cpr ] . ### member states may implement integrated territorial development , supported by the erdf , exclusively through the forms referred to in article [ 22 ] of regulation 2018 / xxxx [ new cpr ] .


### in order to identify or provide solutions which address issues relating to sustainable urban development at union level , the urban innovative actions in the area of sustainable urban development should be replaced by a european urban initiative , to be implemented under direct or indirect management . that initiative should cover all urban areas and support the urban agenda for the european union21 . _________________ 21 council conclusions on an urban agenda for the eu of 24 june 2016 . ### in order to identify or provide solutions which address issues relating to sustainable urban development at union level , the urban innovative actions in the area of sustainable urban development should be replaced by a european urban initiative , to be implemented under direct or indirect management . that initiative should cover all urban areas and support the urban agenda for the european union21 aiming to stimulate growth , liveability and innovation and to identify and successfully tackle social challenges _________________ 21 council conclusions on an urban agenda for the eu of 24 june 2016 .


### the agency shall have its seat in amsterdam , the netherlands . ### the agency shall have its seat in milan , italy .