### additional protective measures taken against the spread of a pest , against which union measures have been adopted pursuant to articles 28 and 30 of regulation 2016 / 2031 , other than the eradication measures referred to in point of this point and the containment measures referred to in point of this point , where those measures are essential to protect the union against further spread of that pest ; ### additional protective measures taken against the spread of a pest , against which union measures have been adopted pursuant to articles 28 and 30 of regulation 2016 / 2031 , other than the measures referred to in points and of this point , where those measures are essential to protect the union against further spread of that pest ;


### measures to eradicate a union quarantine pest , taken by the competent authority of a member state pursuant to article 17 of regulation 2016 / 2031 or pursuant to the union measures adopted in accordance with article 28 of that regulation ; ### measures to prevent , contain and / or eradicate a union quarantine pest , taken by the competent authority of a member state pursuant to article 17 of regulation 2016 / 2031 or pursuant to the union measures adopted in accordance with article 28 of that regulation ;


### persons who work for an organisation or are in contact with it in the context of their work - related activities are often the first to know about threats or harm to the public interest which arise in this context . by ' blowing the whistle ' they play a key role in exposing and preventing breaches of the law and in safeguarding the welfare of society . however , potential whistleblowers are often discouraged from reporting their concerns or suspicions for fear of retaliation . ### persons who work for an organisation or are in contact with it in the context of their work - related activities are often the first to know about threats or harm to the public interest which arise in this context . by ' blowing the whistle ' they play a key role in exposing and preventing breaches of the law and in safeguarding the welfare of society . however , potential whistle blowers are often discouraged from reporting their concerns or suspicions for fear of retaliation in case they expose irregularities , mismanagement , misuse of funds , maladministration or potential corruption related to the activity of public and private bodies within the union ; they are not truly protected and do not feel protected ; this is why many of them use other means to reveal the wrongdoing or even refrain from acting ;


### at union level , reports by whistleblowers are one upstream component of enforcement of union law : they feed national and union enforcement systems with information leading to effective detection , investigation and prosecution of breaches of union law . ### at union level , reports by whistleblowers and investigative journalists are one upstream component of enforcement of union law : they feed national and union enforcement systems with information leading to effective detection , investigation and prosecution of breaches of union law .


### whistleblower protection currently provided in the european union is fragmented across member states and uneven across policy areas . the consequences of breaches of union law with cross - border dimension uncovered by whistleblowers illustrate how insufficient protection in one member state not only negatively impacts on the functioning of eu policies in that member state but can also spill over into other member states and the union as a whole . ### whistleblower protection currently provided in the european union is fragmented across member states and uneven across policy areas ; moreover , there is a lack of follow - up and proper settlement regarding whistle - blowing cases across member states as well as within the european institutions . the consequences of breaches of union law with cross - border dimension uncovered by whistleblowers illustrate how insufficient protection in one member state or within the european bodies not only negatively impact on the functioning of eu policies in that member state but can also spill over into other member states and the union as a whole .


### the protection of the financial interests of the union , which relates to the fight against fraud , corruption and any other illegal activity affecting the use of union expenditures , the collection of union revenues and funds or union assets , is a core area in which enforcement of union law needs to be strengthened . the strengthening of the protection of the financial interests of the union also encompasses implementation of the union budget related to expenditures made on the basis of the treaty establishing the european atomic energy community . lack of effective enforcement in the area of the financial interests of the union , including fraud and corruption at national level , causes a decrease of the union revenues and a misuse of eu funds , which can distort public investments and growth and undermine citizens’ trust in eu action . whistleblower protection is necessary to facilitate the detection , prevention and deterrence of relevant fraud and illegal activities . ### the protection of the financial interests of the union , which relates to the fight against fraud , corruption and any other illegal activity affecting the use of union expenditures , the collection of union revenues and funds or union assets , is a core area in which enforcement of union law needs to be strengthened . the strengthening of the protection of the financial interests of the union also encompasses implementation of the union budget related to expenditures made on the basis of the treaty establishing the european atomic energy community . lack of effective enforcement in the area of the financial interests of the union , including fraud and corruption at national level , causes a decrease of the union revenues and a misuse of eu funds , which can distort public investments and growth and undermine citizens’ trust in eu action . investigative journalists also play a crucial role in revealing wrongdoing connected to all these areas ; they represent a very exposed group of professionals , often paying with their jobs , freedom and even with their lives disclosure of massive irregularities and corruption schemes ; therefore , special measures to protect investigative journalists should be included in a horizontal legislative proposal for the protection of whistle - blowers . investigative journalism and whistleblower protection are necessary to facilitate the detection , prevention and deterrence of relevant fraud and illegal activities .


### protection should also extend to further categories of natural or legal persons , who , whilst not being ' workers ' within the meaning of article 45 tfeu , can play a key role in exposing breaches of the law and may find themselves in a position of economic vulnerability in the context of their work - related activities . for instance , in areas such as product safety , suppliers are much closer to the source of possible unfair and illicit manufacturing , import or distribution practices of unsafe products ; in the implementation of union funds , consultants providing their services are in a privileged position to draw attention to breaches they witness . such categories of persons , including self - employed persons providing services , freelance , contractors , sub - contractors and suppliers , are typically subject to retaliation in the form of early termination or cancellation of contract of services , licence or permit , loss of business , loss of income , coercion , intimidation or harassment , blacklisting / business boycotting or damage to their reputation . shareholders and persons in managerial bodies , may also suffer retaliation , for instance in financial terms or in the form of intimidation or harassment , blacklisting or damage to their reputation . protection should also be granted to candidates for employment or for providing services to an organisation who acquired the information on breaches of law during the recruitment process or other pre - contractual negotiation stage , and may suffer retaliation for instance in the form of negative employment references or blacklisting / business boycotting . ### protection should also extend to further categories of natural or legal persons , who , whilst not being ' workers ' within the meaning of article 45 tfeu , can play a key role in exposing breaches of the law and may find themselves in a position of economic or other type of vulnerability in the context of their work - related activities . for instance , in areas such as product safety , suppliers are much closer to the source of possible unfair and illicit manufacturing , import or distribution practices of unsafe products ; in the implementation of union funds , consultants providing their services are in a privileged position to draw attention to breaches they witness . such categories of persons , including self - employed persons providing services , freelance , contractors , sub - contractors and suppliers , are typically subject to retaliation in the form of early termination or cancellation of contract of services , licence or permit , loss of business , loss of income , coercion , intimidation or harassment , blacklisting / business boycotting or damage to their reputation . shareholders and persons in managerial bodies , may also suffer retaliation , for instance in financial terms or in the form of intimidation or harassment , blacklisting or damage to their reputation . protection should also be granted to investigative journalists who acquired and published information on corruption schemes , money laundering , fraud , misuse of public money , abuse of office and other irregularities ; the same protection should apply to candidates for employment or for providing services to an organisation who acquired the information on breaches of law during the recruitment process or other pre - contractual negotiation stage , and may suffer retaliation for instance in the form of negative employment references or blacklisting / business boycotting .


### retaliation expresses the close relationship that must exist between the report and the adverse treatment suffered , directly or indirectly , by the reporting person , so that this person can enjoy legal protection . effective protection of reporting persons as a means of enhancing the enforcement of union law requires a broad definition of retaliation , encompassing any act or omission occurring in the work - related context which causes them detriment . ### retaliation expresses the close relationship that must exist between the report and the adverse treatment suffered , directly or indirectly , by the reporting person , so that this person can enjoy legal protection . effective protection of reporting persons as a means of enhancing the enforcement of union law requires a broad definition of retaliation , encompassing any act or omission occurring in the work - related context which causes them detriment . reporting persons should generally respect the hierarchy of reporting channels . such a requirement is necessary to ensure that information reaches those who can contribute to a quick and efficient resolution of risks to the public interest , as well as to prevent any unjustified harm to reputation , resulting from public disclosure .


### whistleblowers are , in particular , important sources for investigative journalists . providing effective protection to whistleblowers from retaliation increases the legal certainty of whistleblowers and thereby encourages and facilitates whistleblowing also to the media . in this respect , protection of whistleblowers as journalistic sources is crucial for safeguarding the ‘ watchdog’ role of investigative journalism in democratic societies . ### whistleblowers are , in particular , important sources for investigative journalists . providing effective protection to whistleblowers as well as to investigative journalists from retaliation and any form of harassment increases the legal certainty of whistleblowers and thereby encourages and facilitates whistleblowing also to the media . in this respect , protection of whistleblowers as journalistic sources is crucial for safeguarding the ‘ watchdog’ role of investigative journalism in democratic societies .


### provided the confidentiality of the identity of the reporting person is ensured , it is up to each individual private and public legal entity to define the kind of reporting channels to set up , such as in person , by post , by physical complaint box , by telephone hotline or through an online platform . however , reporting channels should not be limited to those amongst the tools , such as in - person reporting and complaint box , which do not guarantee confidentiality of the identity of the reporting person . ### provided the confidentiality of the identity of the reporting person is ensured , it is up to each individual private and public legal entity to define the kind of reporting channels to set up , such as in person , by post , by physical complaint box , by telephone hotline or through an online platform . however , reporting channels should not be limited to those amongst the tools , such as in - person reporting and complaint box , which do not guarantee confidentiality of the identity of the reporting person ; anonymous reporting should be taken into consideration and protection of initially anonymous whistle - blowers should be put in place , in cases where such protection is required .


### ' breaches ' means actual or potential unlawful activities or abuse of law relating to the union acts and areas falling within the scope referred to in article 1 and in the annex ; ### ' breaches ' means unlawful activities which are actual or very likely to occur , or abuse of law relating to the union acts and areas falling within the scope referred to in article 1 and in the annex ;


### ‘ report’ means the provision of information relating to a breach which has occurred or is likely to occur in the organisation at which the reporting person works or has worked or in another organisation with which he or she is or was in contact through his or her work ; ### ‘ report’ means the provision in good faith of information relating to a breach which has occurred or is likely to occur in the organisation at which the reporting person works or has worked or in another organisation with which he or she is or was in contact through his or her work ;


### where a recorded telephone line is used for reporting , subject to the consent of the reporting person , the competent authority shall have the right to document the oral reporting in one of the following ways : ### where a recorded telephone line is used for reporting , subject to the consent of the reporting person , the competent authority shall document the oral reporting in one of the following ways :


### where an unrecorded telephone line is used for reporting , the competent authority shall have the right to document the oral reporting in the form of accurate minutes of the conversation prepared by the dedicated staff members . the competent authority shall offer the possibility to the reporting person to check , rectify and agree with the minutes of the call by signing them . ### where an unrecorded telephone line is used for reporting , the competent authority shall document the oral reporting in the form of accurate minutes of the conversation prepared by the dedicated staff members . the competent authority shall offer the possibility to the reporting person to check , rectify and agree with the minutes of the call by signing them .


### a person publicly disclosing information on breaches falling within the scope of this directive shall qualify for protection under this directive where : ### a person publicly disclosing information on breaches falling within the scope of this directive , including investigative journalists , shall qualify for protection under this directive where :


### reporting persons shall have access to effective assistance from competent authorities before any relevant authority involved in their protection against retaliation , including , where provided for under national law , certification of the fact that they qualify for protection under this directive . ### reporting persons shall have access to effective assistance from competent authorities before any relevant authority involved in their protection against retaliation , including certification of the fact that they qualify for protection under this directive .


### in addition to providing legal aid to reporting persons in criminal and in cross - border civil proceedings in accordance with directive 2016 / 1919 and directive 2008 / 52 / ec of the european parliament and of the council63 , and in accordance with national law , member states may provide for further measures of legal and financial assistance and support for reporting persons in the framework of legal proceedings . _________________ 63 directive 2008 / 52 / ec of the european parliament and of the council of 21 may 2008 on certain aspects of mediation in civil and commercial matters . ### in addition to providing legal aid to reporting persons in criminal and in cross - border civil proceedings in accordance with directive 2016 / 1919 and directive 2008 / 52 / ec of the european parliament and of the council63 , member states shall provide for further measures of legal and financial assistance and support for reporting persons in the framework of legal proceedings . _________________ 63 directive 2008 / 52 / ec of the european parliament and of the council of 21 may 2008 on certain aspects of mediation in civil and commercial matters .


### bring vexatious proceedings against reporting persons ; ### bring vexatious proceedings against reporting persons or investigative journalists revealing wrongdoing ;


### at union level , the european semester of economic policy coordination is the framework to identify national reform priorities and monitor their implementation . member states develop their own national multiannual investment strategies in support of those reform priorities . those strategies should be presented alongside the yearly national reform programmes as a way to outline and coordinate priority investment projects to be supported by national and / or union funding . they should also serve to use union funding in a coherent manner and to maximise the added value of the financial support to be received notably from the programmes supported by the union under the european regional development fund , the cohesion fund , the european social fund , the european maritime and fisheries fund and the european agricultural fund for rural development , the european investment stabilisation function and investeu , where relevant . ### at union level , the european semester of economic policy coordination is the framework to identify national reform priorities and monitor their implementation . member states develop their own national multiannual investment strategies in support of those reform priorities . those strategies should be presented alongside the yearly national reform programmes as a way to outline and coordinate priority investment projects to be supported by national and / or union funding . they should also serve to use union funding in a coherent manner and to maximise the added value of the financial support to be received notably from the programmes supported by the union under the european regional development fund , the cohesion fund , the european social fund , the european maritime and fisheries fund and the european agricultural fund for rural development , the european investment stabilisation function and investeu , where relevant . member states and the commission shall ensure the coordination , complementarity and coherence between the programme and other union instruments , and avoid duplication during planning and implementation .


### the economic and financial crisis has shown that developing sound and resilient economies and financial systems built on strong economic and social structures helps member states to respond more efficiently to shocks and recover more swiftly from them . the implementation of structural reforms is among the union’s policy priorities because such reforms seek to set the recovery on a sustainable path , unlock the growth potential , strengthen the adjustment capacity and support the process of upward convergence . pursuing structural reforms can also contribute to strengthening economic and social cohesion , boosting productivity and investment and creating good conditions for sustainable growth and employment in the union . ### the economic and financial crisis has shown that developing sound and resilient economies and financial systems built on strong economic and social structures helps member states to respond more efficiently to shocks and recover more swiftly from them . the implementation of structural reforms is among the union’s policy priorities because such reforms seek to set the recovery on a sustainable path , unlock the growth potential , strengthen the adjustment capacity and support the process of upward convergence . pursuing structural reforms can also contribute to strengthening economic , social and territorial cohesion , convergence , boosting productivity and investment and creating good conditions for sustainable growth and employment in the union .


### the programme’s overall objective is the enhancement of cohesion , competitiveness , productivity , growth , and employment . for that purpose , it should provide financial incentives for addressing challenges of a structural nature , and should help to strengthen the administrative capacity of the member states insofar as their institutions and economic and social sectors are concerned . ### the programme’s overall objective is the enhancement of cohesion , competitiveness , productivity , growth , and employment . for that purpose , it should provide financial incentives for addressing challenges of a structural nature , and should help to strengthen the administrative capacity of the member states insofar as their institutions and economic and social sectors are concerned . regional and local authorities have an important role to play in structural reform , to a degree which depends on the constitutional and administrative organisation of each member state . it is therefore necessary to provide for an appropriate level of involvement and consultation of regional and local authorities in the preparation and implementation of structural reform .


### the programme’s overall objective is the enhancement of cohesion , competitiveness , productivity , growth , and employment . for that purpose , it should provide financial incentives for addressing challenges of a structural nature , and should help to strengthen the administrative capacity of the member states insofar as their institutions and economic and social sectors are concerned . ### the programme’s overall objective is the enhancement of cohesion , convergence , competitiveness , productivity , growth , and employment . for that purpose , it should provide financial incentives for addressing challenges of a structural nature , and should help to strengthen the administrative capacity of the member states insofar as their institutions and economic and social sectors are concerned .


### in order to ensure a meaningful incentive for member states to complete structural reforms , it is appropriate to establish a maximum financial contribution available for them under the instrument for each stage of allocation and under each call . that maximum contribution should be calculated on the basis of the population of member states . to ensure that the financial incentives are spread throughout the whole period of application of the programme , the allocation of funds to the member states should be made in stages . in the first stage lasting twenty months , half of the overall financial envelope of the reform delivery tool should be made available to member states , during which they could receive up to their maximum allocation by submitting proposals for reform commitments . ### in order to ensure a meaningful incentive for member states to complete structural reforms , it is appropriate to establish a maximum financial contribution available for them under the instrument for each stage of allocation and under each call . that maximum contribution should be calculated on the basis of the number and complexity of the country specific recommendations , macroeconomic imbalances , the level of unemployment , the level of poverty and social exclusion , and gdp per capita in relation to the eu average gdp . selection criteria should be presented to member states in a transparent way . to ensure that the financial incentives are spread throughout the whole period of application of the programme , the allocation of funds to the member states should be made in stages . in the first stage lasting forty months , 75% of the overall financial envelope of the reform delivery tool should be made available to member states , during which they could receive up to their maximum allocation by submitting proposals for reform commitments .


### in the interest of transparency and efficiency , in the subsequent stage lasting until the end of the programme , a system of periodic calls should be set out by the commission to allocate the remaining half of the overall financial envelope of the instrument , plus the amounts unused from the previous stage . simple procedures should be organised to that effect . under each call , all member states should be invited to submit reform proposals concurrently , and could be awarded their maximum financial contribution on the basis of their reform proposals . in the interest of transparency , the first call organised by the commission during the second stage should be for an amount corresponding to the remaining part of the overall financial envelope of the instrument . further calls should be organised by the commission only where the overall financial envelope has not been fully used . the commission should adopt and publish an indicative calendar of the further calls to be organised , and should indicate , at each call , the remaining amount of the overall envelope , which is available under that call . ### in the interest of transparency and efficiency , in the subsequent stage lasting until the end of the programme , a system of periodic calls should be set out by the commission to allocate the remaining 25% of the overall financial envelope of the instrument , plus the amounts unused from the previous stage . simple procedures should be organised to that effect . under each call , all member states should be invited to submit reform proposals concurrently , and could be awarded their maximum financial contribution on the basis of their reform proposals . in the interest of transparency , the first call organised by the commission during the second stage should be for an amount corresponding to the remaining part of the overall financial envelope of the instrument . further calls should be organised by the commission only where the overall financial envelope has not been fully used . the commission should adopt and publish an indicative calendar of the further calls to be organised , and should indicate , at each call , the remaining amount of the overall envelope , which is available under that call .


### for the purpose of sound financial management , specific rules should be laid down for budget commitments , payments , suspension , cancellation and recovery of funds . payments should be based on a positive assessment by the commission of the implementation of the reform commitments by the member state . suspension and cancellation of the financial contribution should be possible when the reform commitments have not been implemented in a satisfactory manner by the member state . to ensure a sustainable impact of the reforms after they are implemented , a reasonable period defining the durability of the reforms after the payment of the financial contribution should be established . a period of five years should be considered to be a reasonable minimum to be applied . appropriate contradictory procedures should be established to ensure that the decision by the commission in relation to suspension , cancellation and recovery of amounts paid respects the right of member states to provide observations . ### for the purpose of sound financial management , specific rules should be laid down for budget commitments , pre - payments , payments , suspension , cancellation and recovery of funds . payments should be based on a positive assessment by the commission of the implementation of the reform commitments by the member state . suspension and cancellation of the financial contribution should be possible when the reform commitments have not been implemented in a satisfactory manner by the member state . to ensure a sustainable impact of the reforms after they are implemented , a reasonable period defining the durability of the reforms after the payment of the financial contribution should be established . a period of five years should be considered to be a reasonable minimum to be applied . appropriate contradictory procedures should be established to ensure that the decision by the commission in relation to suspension , cancellation and recovery of amounts paid respects the right of member states to provide observations .


### to contribute to addressing national reform challenges of a structural nature aimed at improving the performance of the national economies and at promoting resilient economic and social structures in the member states , thereby contributing to cohesion , competitiveness , productivity , growth and employment ; and ### to contribute to addressing national reform challenges of a structural nature aimed at improving the performance of the national economies and at promoting resilient economic and social structures in the member states , thereby contributing to cohesion , convergence , competitiveness , productivity , growth and employment ; and


### the general and the specific objectives set out in articles 4 and 5 shall refer to policy areas related to cohesion , competitiveness , productivity , research and innovation , smart , sustainable , and inclusive growth , jobs and investment , and in particular to one or more of the following : ### the general and the specific objectives set out in articles 4 and 5 shall refer to policy areas related to cohesion , convergence , competitiveness , productivity , research and innovation , smart , sustainable , and inclusive growth , jobs and investment , and in particular to one or more of the following :


### education and training , labour market policies , including social dialogue , for the creation of jobs , digital skills , the fight against poverty , the promotion of social inclusion , social security and social welfare systems , public health and healthcare systems , as well as cohesion , asylum , migration and border policies ; ### education and training , labour market policies , including social dialogue , for the creation of jobs , digital skills , the fight against poverty , the promotion of social inclusion , social security and social welfare systems , public health and healthcare systems , pension systems , as well as cohesion , asylum , migration and border policies ;


### policies for implementing climate action , mobility , promoting energy and resource efficiency , renewable energy sources , achieving energy diversification and ensuring energy security , and for the agricultural sector , fisheries and the sustainable development of rural areas ; and ### policies for implementing climate action , mobility , connectivity , promoting energy and resource efficiency , renewable energy sources , achieving energy diversification and ensuring energy security , and for the agricultural sector , fisheries and the sustainable development of rural and remote areas ; and


### for a period of twenty months from the date of application of this regulation , the commission shall make available for allocation eur 11 000 000 000 , which represents 50% of the overall envelope referred to in point of article 7 . each member state may propose to receive up to the full amount of the maximum financial contribution , referred to in article 9 , to fulfil reform commitments proposed in accordance with article 11 . ### for a period of forty months from the date of application of this regulation , the commission shall make available for allocation eur 16 500 000 000 , which represents 75% of the overall envelope referred to in point of article 7 . each member state may propose to receive up to the full amount of the maximum financial contribution , referred to in article 9 , to fulfil reform commitments proposed in accordance with article 11 .


### for the period starting after the end of the period referred to in paragraph 2 , the commission shall make available for allocation eur 11 000 000 000 , which represent the remaining 50% of the overall envelope for the reform delivery tool referred to in point of article 7 , plus the amount that has not been allocated in accordance with paragraph 2 , on the basis of calls organised and published under the reform delivery tool . the first call shall be for allocating eur 11 000 000 000 . ### for the period starting after the end of the period referred to in paragraph 2 , the commission shall make available for allocation eur 5 500 000 000 , which represent the remaining 25% of the overall envelope for the reform delivery tool referred to in point of article 7 , plus the amount that has not been allocated in accordance with paragraph 2 , on the basis of calls organised and published under the reform delivery tool . the first call shall be for allocating eur 5 500 000 000 .


### payment of financial contributions to the member state concerned under this article shall be made in accordance with the budget appropriations and subject to the available funding . ### payment of financial contributions to the member state concerned under this article shall include pre - financing payment and shall be made in accordance with the budget appropriations and subject to the available funding .


### upon completion of the reform commitments , the member state concerned shall submit to the commission a duly justified request for payment of the financial contribution . the commission shall assess , within two months of the submission of the request , whether the relevant milestones and targets set out in the decision referred to in article 12 have been satisfactorily implemented . for that purpose , it may be assisted by relevant experts as referred to in article 11 . ### upon completion of the reform commitments , the member state concerned shall submit to the commission a duly justified request for payment for the remaining part of the financial contribution . the commission shall assess , within two months of the submission of the request , whether the relevant milestones and targets set out in the decision referred to in article 12 have been satisfactorily implemented . for that purpose , it may be assisted by relevant experts as referred to in article 11 .


### where the assessment has a positive outcome , the disbursement of the financial contribution shall be made in accordance with the financial regulation . ### where the assessment has a positive outcome , the disbursement of the remaining part of the financial contribution shall be made in accordance with the financial regulation .


### a member state wishing to receive technical support under this instrument shall submit a request for technical support to the commission , identifying the policy areas and the priorities for support within the scope of the programme as set out in article 6 . the commission shall organise calls under the technical support instrument , which will set appropriate deadlines for the submission of requests . the commission may provide guidance on the main elements to be included in the request for support . ### a member state wishing to receive technical support under this instrument shall submit a request for technical support to the commission , identifying the policy areas and the priorities for support within the scope of the programme as set out in article 6 . the commission shall organise calls under the technical support instrument , which will set appropriate deadlines for the submission of requests . the commission may provide guidance on the main elements to be included in the request for support . priority should be given to member states based on the quality of the proposals , compliance with the requirements in calls and the criteria set by article 9 .


### it is further appropriate to recall that costs should normally be calculated on the basis of records kept by the exporter or producer under investigation . however , where there are significant distortions in the exporting country with the consequence that costs reflected in the records of the party concerned are artificially low , such costs may be adjusted or established on any reasonable basis , including information from other representative markets or from international prices or benchmarks . in the light of experience gained in past proceedings , it is appropriate to further clarify that , for the purposes of applying the provisions introduced by this regulation , due account should be taken of all relevant evidence , including relevant assessment reports regarding the circumstances prevailing on the domestic market of the exporting producers and the evidence on which they are based , which has been placed on the file , and upon which interested parties have had an opportunity to comment . ### it is further appropriate to recall that costs should normally be calculated on the basis of records kept by the exporter or producer under investigation . however , where there are significant distortions in the exporting country with the consequence that costs reflected in the records of the party concerned are artificially low , such costs shall be adjusted or established on any reasonable basis , including information from other representative markets or from undistorted international prices or benchmarks . in the light of experience gained in past proceedings , it is appropriate to further clarify that , for the purposes of applying the provisions introduced by this regulation , due account should be taken of all relevant evidence , including relevant assessment reports regarding the circumstances prevailing on the domestic market of the exporting producers and the evidence on which they are based , which has been placed on the file , and upon which interested parties have had an opportunity to comment .


### absent any other specific transitional rules regulating the matter , it is appropriate to provide for the application of this regulation to all decisions on the initiation of proceedings , and to all proceedings , including original investigations and review investigations , initiated , on or after the date on which this regulation enters into force , subject to article 11 of regulation 2016 / 1036 . furthermore , by way of specific transitional rule , and having regard to the absence of any other specific transitional rule regulating the matter , it is appropriate to provide that , in the case of a transition from a normal value calculated pursuant to articles 2 or 2 to a normal value calculated pursuant to paragraphs 1 to 6a of article 2 , the reasonable period of time provided for in the first sub - paragraph of article 11 of regulation 2016 / 1036 should be deemed to elapse on the date on which the first expiry review following such transition is initiated . with a view to reducing the risk of circumvention of the provisions of this regulation , the same approach should apply with respect to reviews conducted pursuant to article 11 of regulation 2016 / 1036 . it is also appropriate to recall that a transition from a normal value calculated pursuant to articles 2 or 2 to a normal value calculated pursuant to paragraphs 1 to 6a of article 2 would not in itself constitute sufficient evidence within the meaning of article 11 of regulation 2016 / 1036 . such transitional rules should complete a lacuna that would otherwise risk to generate legal uncertainty , should provide a reasonable opportunity for interested parties to adapt themselves to the expiry of the old rules and the entry into force of the new rules , and should facilitate the efficient , orderly and equitable administration of regulation 2016 / 1036 . ### absent any other specific transitional rules regulating the matter , it is appropriate to provide for the application of this regulation to all decisions on the initiation of proceedings , and to all proceedings , including original investigations and review investigations , initiated , on or after the date on which this regulation enters into force , subject to article 11 of regulation 2016 / 1036 . furthermore , by way of specific transitional rule , and having regard to the absence of any other specific transitional rule regulating the matter , it is appropriate to provide that , in the case of a transition from a normal value calculated pursuant to articles 2 or 2 to a normal value calculated pursuant to paragraphs 1 to 6e of article 2 , the reasonable period of time provided for in the first sub - paragraph of article 11 of regulation 2016 / 1036 should be deemed to elapse on the date on which the first expiry review following such transition is initiated . with a view to reducing the risk of circumvention of the provisions of this regulation , the same approach should apply with respect to reviews conducted pursuant to article 11 of regulation 2016 / 1036 . it is also appropriate to recall that a transition from a normal value calculated pursuant to articles 2 or 2 to a normal value calculated pursuant to paragraphs 1 to 6e of article 2 would not in itself constitute sufficient evidence within the meaning of article 11 of regulation 2016 / 1036 . such transitional rules should complete a lacuna that would otherwise risk to generate legal uncertainty , should provide a reasonable opportunity for interested parties to adapt themselves to the expiry of the old rules and the entry into force of the new rules , and should facilitate the efficient , orderly and equitable administration of regulation 2016 / 1036 .


### 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 , 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 the costs affected by significant distortions . 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 and with a similar level of competitiveness in the concerned sector 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 , 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 in the economy as a whole or in sectors of the economy , the normal value shall be 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 data are readily available . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits .


### significant distortions for the product concerned within the meaning of point may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces as they are affected by government intervention . in considering whether or not significant distortions exist regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . ### significant distortions in market economy countries , within the meaning of point may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials and others factors of production , are not the result of free market forces as they are affected by government intervention . in considering whether or not significant distortions exist regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives .


### 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 . ### when appropriate , the commission services may issue a report describing the specific situation concerning the criteria listed in point in a certain sector in a certain country . 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 . such report shall be issued for no longer than a period of five years and shall be re - issued whenever the situation concerning the criteria in point have changed .


### 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 reports referred to in paragraph 6c 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 in a request for a reinvestigation in accordance with article 12 . reports on countries referred to in paragraph 6a shall constitute sufficient evidence to justify the calculation of normal value in the complaint or request on the basis of the methodology described in paragraph 6a . reports on countries referred to in paragraph 6b shall constitute sufficient evidence to justify the calculation of normal value in the complaint or request on the basis of the methodology described in paragraph 6b . further , where a significant portion of the complaining union industry is made up of smes , the normal value calculations in the complaint or request can be based on information related to costs of production in the eu of the product concerned .


### the parties to the investigation shall be informed shortly after initiation about the relevant sources that the commission intends to use for the purpose of point and shall be given 10 days to comment . for this purpose , interested parties shall be given access to the file , including any evidence on which the investigating authority relies , without prejudice to article 19 . ### the parties to the investigation shall be informed shortly after initiation about the relevant sources that the commission intends to use for the purpose of paragraph 6a and shall be given 10 days to comment . for this purpose , interested parties shall be given access to the file , including any evidence on which the investigating authority relies , without prejudice to article 19 . a disclosure regarding the methodology to be used shall be communicated to the parties no later than three months from initiation of the investigation .


### this regulation shall enter into force on the day following that of its publication in the official journal of the european union . ### this regulation shall enter into force on the later of : - the day following that of its publication in the official journal of the european union , and - the day following the adoption of the commission services reports concerning the non - market economy countries as indicated in article 2 point 6 paragraph b .


### in march 2018 , the commission published its action plan ' financing sustainable growth ' 25 setting up an ambitious and comprehensive strategy on sustainable finance . one of the objectives set out in that action plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth . the establishment of a unified classification system for sustainable activities is the most important and urgent action envisaged by the action plan . the action plan recognises that the shift of capital flows towards more sustainable activities has to be underpinned by a shared understanding of what ' sustainable ' means . as a first step , clear guidance on activities qualifying as contributing to environmental objectives , should help inform investors about the investments that fund environmentally sustainable economic activities . further guidance on the activities contributing to other sustainability objectives , including social objectives , may be developed at a later stage . __________________ 25 com 97 final . ### in march 2018 , the commission published its action plan ' financing sustainable growth ' 25 setting up an ambitious and comprehensive strategy on sustainable finance . one of the objectives set out in that action plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth . the establishment of a unified classification system and of indicators for identifying the degree of sustainability of activities are the most important and urgent action envisaged by the action plan . the action plan recognises that the shift of capital flows towards more sustainable activities has to be underpinned by a shared , holistic understanding of the impact of economic activities and investments on environmental sustainability and resource efficiency . as a first step , clear guidance on activities qualifying as contributing to environmental objectives , should help inform investors about the investments that fund economic activities according to their degree of sustainability . further guidance on the activities contributing to other sustainability objectives , including social objectives , may be developed at a later stage . __________________ 25 com 97 final .


### to address existing obstacles to the functioning of the internal market and to prevent the emergence of such obstacles in the future , member states should be required to use a common concept of environmentally sustainable investment when setting up requirements for market actors for the purpose of labelling financial products or corporate bonds marketed as environmentally sustainable at national level . for the same reasons , fund managers and institutional investors that hold themselves out as pursuing environmental objectives should use the same concept of environmentally sustainable investment when disclosing how they pursue those objectives . ### to address existing obstacles to the functioning of the internal market and to prevent the emergence of such obstacles in the future , member states and the union should be required to use a common concept regarding the degree of environmental sustainability of investments when setting up requirements for market actors for the purpose of labelling financial products , services or corporate bonds marketed as environmentally sustainable at national level . for the same reasons , fund managers and institutional investors that hold themselves out as pursuing environmental objectives should use the same concept of environmentally sustainable investment and the same indicators , metrics and criteria for calculating the environmental impact when disclosing how they pursue those objectives .


### a union classification of environmentally sustainable economic activities should enable the development of future union policies , including union - wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the union . uniform legal requirements for considering investments as environmentally sustainable investments , based on uniform criteria for environmentally sustainable economic activities , are necessary as a reference for future union legislation aiming at enabling those investments . ### union - wide indicators determining the environmental impact of economic activities should enable the development of future union policies , including union - wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the union , as well as to be the basis for other economic , regulatory and prudential measures . uniform legal requirements for considering the degree of environmental sustainability of investments , based on uniform criteria for the degree of environmental sustainability of economic activities and common indicators for assessing the environmental impact of investments , are necessary as a reference for future union legislation aiming at facilitating the shift from investments with a negative environmental impact to investments with a positive impact . .


### a union classification of environmentally sustainable economic activities should enable the development of future union policies , including union - wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the union . uniform legal requirements for considering investments as environmentally sustainable investments , based on uniform criteria for environmentally sustainable economic activities , are necessary as a reference for future union legislation aiming at enabling those investments . ### a union classification of environmentally and economically sustainable activities should gradually enable the development of future union policies , including union - wide standards for sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the union . uniform legal requirements for considering sustainable investments as such , based on uniform criteria for a certain number of sustainable activities , are necessary as a reference for future union legislation aiming at enabling those investments .


### in the context of achieving sdgs in the union , policy choices such as the creation of a european fund for strategic investment , have proven to be effective in contributing to channel private investment alongside public spending towards sustainable investments . regulation 2015 / 1017 of the european parliament and of the council27 specifies a 40% climate investment target for infrastructure and innovation projects under the european fund for strategic investment . common criteria for the sustainability of economic activities could underpin future similar initiatives of the union supporting investment pursuing climate - related or other environmental objectives . __________________ 27 regulation 2017 / 2396 of the european parliament and of the council of 13 december 2017 amending regulations no 1316 / 2013 and 2015 / 1017 as regards the extension of the duration of the european fund for strategic investments as well as the introduction of technical enhancements for that fund and the european investment advisory hub . ### in the context of achieving sdgs in the union , policy choices such as the creation of a european fund for strategic investment , could be effective in contributing to channel private investment alongside public spending towards sustainable investments . regulation 2015 / 1017 of the european parliament and of the council27 specifies a 40% climate investment target for infrastructure and innovation projects under the european fund for strategic investment . common criteria for the sustainability of economic activities and common indicators for the assessment of environmental impact could underpin future similar initiatives of the union supporting investment pursuing climate - related or other environmental objectives . __________________ 27 regulation 2017 / 2396 of the european parliament and of the council of 13 december 2017 amending regulations no 1316 / 2013 and 2015 / 1017 as regards the extension of the duration of the european fund for strategic investments as well as the introduction of technical enhancements for that fund and the european investment advisory hub .


### in the context of achieving sdgs in the union , policy choices such as the creation of a european fund for strategic investment , have proven to be effective in contributing to channel private investment alongside public spending towards sustainable investments . regulation 2015 / 1017 of the european parliament and of the council27specifies a 40% climate investment target for infrastructure and innovation projects under the european fund for strategic investment . common criteria for the sustainability of economic activities could underpin future similar initiatives of the union supporting investment pursuing climate - related or other environmental objectives . _________________ 27 regulation 2017 / 2396 of the european parliament and of the council of 13 december 2017 amending regulations no 1316 / 2013 and 2015 / 1017 as regards the extension of the duration of the european fund for strategic investments as well as the introduction of technical enhancements for that fund and the european investment advisory hub . ### in the context of achieving sdgs in the union , policy choices such as the creation of a european fund for strategic investment , have proven to be effective in contributing to channel private investment alongside public spending towards sustainable investments . regulation 2015 / 1017 of the european parliament and of the council27 specifies a 40% climate investment target for infrastructure and innovation projects designed to lessen the human influence on climate change under the european fund for strategic investment . common criteria for the sustainability of economic activities could underpin future similar initiatives of the union supporting investment pursuing climate - related or other environmental objectives . _________________ 27 regulation 2017 / 2396 of the european parliament and of the council of 13 december 2017 amending regulations no 1316 / 2013 and 2015 / 1017 as regards the extension of the duration of the european fund for strategic investments as well as the introduction of technical enhancements for that fund and the european investment advisory hub .


### in the context of achieving sdgs in the union , policy choices such as the creation of a european fund for strategic investment , have proven to be effective in contributing to channel private investment alongside public spending towards sustainable investments . regulation 2015 / 1017 of the european parliament and of the council27 specifies a 40% climate investment target for infrastructure and innovation projects under the european fund for strategic investment . common criteria for the sustainability of economic activities could underpin future similar initiatives of the union supporting investment pursuing climate - related or other environmental objectives . _________________ 27 regulation 2017 / 2396 of the european parliament and of the council of 13 december 2017 amending regulations no 1316 / 2013 and 2015 / 1017 as regards the extension of the duration of the european fund for strategic investments as well as the introduction of technical enhancements for that fund and the european investment advisory hub . ### in the context of achieving sdgs in the union , policy choices such as the creation of a european fund for strategic investment , have proven to be effective in contributing to mobilise private investment alongside public spending in sustainable investments . regulation 2015 / 1017 of the european parliament and of the council27 specifies a 40% horizontal climate investment target for infrastructure and innovation projects under the european fund for strategic investment . common criteria for the sustainability of economic activities may underpin future similar initiatives of the union mobilising investment pursuing climate - related or other environmental objectives . _________________ 27 regulation 2017 / 2396 of the european parliament and of the council of 13 december 2017 amending regulations no 1316 / 2013 and 2015 / 1017 as regards the extension of the duration of the european fund for strategic investments as well as the introduction of technical enhancements for that fund and the european investment advisory hub .


### to avoid market fragmentation as well as harm to consumer interests due to divergent notions of environmentally sustainable economic activities , national requirements that market actors should comply with when they wish to market financial products or corporate bonds as being environmentally sustainable , should build on the uniform criteria for environmentally sustainable economic activities . those market actors include financial market participants offering “green” financial products and non - financial companies issuing “green” corporate bonds . ### to avoid market fragmentation as well as harm to consumer interests due to divergent notions regarding the degree of environmental sustainability of economic activities , national requirements that market actors should comply with when they wish to market financial products or corporate bonds as defined in this regulation as being environmentally sustainable , should build on the uniform criteria for environmentally sustainable economic activities . those market actors include financial market participants offering sustainable financial products or services and non - financial companies issuing sustainable corporate bonds .


### for the purposes of determining whether an economic activity is environmentally sustainable , an exhaustive list of environmental objectives should be laid down . ### for the purposes of determining the degree of environmental sustainability of an economic activity , an exhaustive list of environmental objectives based on indicators measuring the environmental impact should be laid down .


### for each environmental objective , uniform criteria for considering economic activities to be substantially contributing to that objective should be laid down . one element of the uniform criteria should be to avoid significant harm to any of the environmental objectives set out in this regulation . this is in order to avoid that investments are considered environmentally sustainable although the economic activities benefitting from those investments cause harm to the environment to an extent outweighing their contribution to an environmental objective . the conditions for substantial contribution and for not causing significant harm should enable investments into environmentally sustainable economic activities to make a real contribution to the environmental objectives . ### for each environmental objective , uniform criteria based on information provided by means of harmonised indicators for considering economic activities to be substantially contributing to that objective should be laid down . one element of the uniform criteria should be to avoid significant harm to any of the environmental objectives set out in this regulation . this is in order to avoid that investments are considered environmentally sustainable although the economic activities benefitting from those investments cause harm to the environment to an extent outweighing their contribution to an environmental objective . the conditions for substantial contribution and for not causing significant harm should enable investments into environmentally sustainable economic activities to make a real contribution to the environmental objectives .


### for each environmental objective , uniform criteria for considering economic activities to be substantially contributing to that objective should be laid down . one element of the uniform criteria should be to avoid significant harm to any of the environmental objectives set out in this regulation . this is in order to avoid that investments are considered environmentally sustainable although the economic activities benefitting from those investments cause harm to the environment to an extent outweighing their contribution to an environmental objective . the conditions for substantial contribution and for not causing significant harm should enable investments into environmentally sustainable economic activities to make a real contribution to the environmental objectives . ### for each environmental objective , uniform criteria for considering economic activities to be substantially contributing to that objective should be laid down . one element of the uniform criteria should be to avoid significant harm to any of the environmental objectives set out in this regulation . this is in order to avoid that investments are considered environmentally sustainable although the economic activities benefitting from those investments cause harm to the environment to an extent outweighing their contribution to an environmental objective . the conditions for substantial contribution and for not causing significant harm should enable investments into environmentally sustainable economic activities to make a real contribution to the environmental objectives . however , the establishment of the criterion to avoid significant harm to any of the environmental objectives should not lead to the creation of a black list or brown list .


### an economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings . the technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives . when establishing and updating the technical screening criteria , the commission should ensure that those criteria are based on available scientific evidence and are updated regularly . where scientific evaluation does not allow for the risk to be determined with sufficient certainty , the precautionary principle should apply , in line with article 191 tfeu . ### an economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings and it should also not significantly harm any of the other environmental objectives . the technical screening criteria based on harmonised indicators should identify the minimum requirements necessary to avoid a significant harm to other objectives and the assessment of the negative impact . when establishing and updating the technical screening criteria and harmonised indicators , the commission should ensure that those criteria and indicators are based on available scientific evidence and are updated regularly . where scientific evaluation does not allow for the risk to be determined with sufficient certainty , the precautionary principle should apply , in line with article 191 tfeu .


### an economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings . the technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives . when establishing and updating the technical screening criteria , the commission should ensure that those criteria are based on available scientific evidence and are updated regularly . where scientific evaluation does not allow for the risk to be determined with sufficient certainty , the precautionary principle should apply , in line with article 191 tfeu . ### an economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings . the technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives . when establishing and updating the technical screening criteria , the commission should ensure that those criteria are based on available scientific evidence , are updated regularly and take account of the whole value chain and the life cycle of technologies . it should also ensure that they are updated regularly . where scientific evaluation does not allow for the risk to be determined with sufficient certainty , the precautionary principle should apply , in line with article 191 tfeu .


### an economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings . the technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives . when establishing and updating the technical screening criteria , the commission should ensure that those criteria are based on available scientific evidence and are updated regularly . where scientific evaluation does not allow for the risk to be determined with sufficient certainty , the precautionary principle should apply , in line with article 191 tfeu . ### an economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings . the technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives . when establishing and updating the technical screening criteria , the commission should ensure that those criteria are reasonable , proportionate and based on available scientific evidence and are updated regularly . where scientific evaluation does not allow for the risk to be determined with sufficient certainty , the precautionary principle should apply , in line with article 191 tfeu .


### when establishing and updating the technical screening criteria the commission should take into account the relevant union law , as well as non - legislative instruments of the union already in place , including the regulation 66 / 2010 of the european parliament and the council37 , the eu eco - management and audit scheme , 38 the eu green public procurement criteria39 and the on - going work on product and organisation environmental footprint rules . 40 to avoid unnecessary inconsistencies with classifications of economic activities that already exist for other purposes , the commission should also take into account the statistical classifications relating to the environmental goods and services sector , namely the classification of environmental protection activities and expenditure and the classification of resource management activities . 41 __________________ 37 regulation 66 / 2010 of the european parliament and the council of 25 november 2009 on the eu ecolabel . 38 regulation no 1221 / 2009 of the european parliament and of the council of 25 november 2009 on the voluntary participation by organisations in a community eco - management and audit scheme , repealing regulation no 761 / 2001 and commission decisions 2001 / 681 / ec and 2006 / 193 / ec . 39 communication from the commission to the european parliament , the council , the european economic and social committee and the committee of the regions public procurement for a better environment { sec 2124 } { sec 2125 } { sec 2126 } com / 2008 / 0400 final . 40 2013 / 179 / eu : commission recommendation of 9 april 2013 on the use of common methods to measure and communicate the life cycle environmental performance of products and organisations . 41 annex 4 and 5 of regulation no 538 / 2014 of the european parliament and of the council of 16 april 2014 amending regulation no 691 / 2011 on european environmental economic accounts . ### when establishing and updating the technical screening criteria and a set of harmonised indicators the commission should take into account the relevant union law , as well as non - legislative instruments of the union already in place , including the regulation 66 / 2010 of the european parliament and the council37 , the eu eco - management and audit scheme , 38 the eu green public procurement criteria39 , the commission circular economy platform , the european platform on life cycle assessment , and the on - going work on product and organisation environmental footprint rules . 40 to avoid unnecessary inconsistencies with classifications of economic activities that already exist for other purposes , the commission should also take into account the statistical classifications relating to the environmental goods and services sector , namely the classification of environmental protection activities and expenditure and the classification of resource management activities . 41 __________________ 37 regulation 66 / 2010 of the european parliament and the council of 25 november 2009 on the eu ecolabel . 38 regulation no 1221 / 2009 of the european parliament and of the council of 25 november 2009 on the voluntary participation by organisations in a community eco - management and audit scheme , repealing regulation no 761 / 2001 and commission decisions 2001 / 681 / ec and 2006 / 193 / ec . 39 communication from the commission to the european parliament , the council , the european economic and social committee and the committee of the regions public procurement for a better environment { sec 2124 } { sec 2125 } { sec 2126 } com / 2008 / 0400 final . 40 2013 / 179 / eu : commission recommendation of 9 april 2013 on the use of common methods to measure and communicate the life cycle environmental performance of products and organisations . 41 annex 4 and 5 of regulation no 538 / 2014 of the european parliament and of the council of 16 april 2014 amending regulation no 691 / 2011 on european environmental economic accounts .


### when establishing and updating the technical screening criteria the commission should also take into account the specificities of the infrastructure sector and take into account environmental , social and economic externalities within a cost - benefit analysis . in that regard , the commission should consider the work of international organisations , such as the oecd , relevant union legislation and standards , including directive 2001 / 42 / ec of the european parliament and of the council42 , directive 2011 / 92 / eu of the european parliament and of the council43 directive 2014 / 23 / eu of the european parliament and of the council44 , directive 2014 / 24 / eu of the european parliament and of the council45 , directive 2014 / 25 / eu of the european parliament and of the council46 , and current methodology . in that context , the technical screening criteria should promote appropriate governance frameworks integrating environmental , social and governance factors , as referred to in the united nations - supported principles for responsible investment47 , at all stages of a project ' s lifecycle . __________________ 42 directive 2001 / 42 / ec of the european parliament and of the council of 27 june 2001 on the assessment of the effects of certain plans and programmes on the environment . 43 directive 2011 / 92 / eu of the european parliament and of the council of 13 december 2011 on the assessment of the effects of certain public and private projects on the environment . 44 directive 2014 / 23 / eu of the european parliament and of the council of 26 february 2014 on the award of concession contracts . 45 directive 2014 / 24 / eu of the european parliament and of the council of 26 february 2014 on public procurement and repealing directive 2004 / 18 / ec . 46 directive 2014 / 25 / eu of the european parliament and of the council of 26 february 2014 on procurement by entities operating in the water , energy , transport and postal services sectors and repealing directive 2004 / 17 / ec . 47 https : / / www . unpri . org / download ? ac=1534 . ### when establishing and updating the technical screening criteria and the harmonised indicators the commission should also take into account the specificities of the different sectors and take into account environmental , social and economic externalities within a cost - benefit analysis . in that regard , the commission should consider the work of international organisations , such as the oecd , relevant union legislation and standards , including directive 2001 / 42 / ec of the european parliament and of the council42 , directive 2011 / 92 / eu of the european parliament and of the council43 directive 2014 / 23 / eu of the european parliament and of the council44 , directive 2014 / 24 / eu of the european parliament and of the council45 , directive 2014 / 25 / eu of the european parliament and of the council46 , and current methodology . in that context , the technical screening criteria and indicators should promote appropriate governance frameworks integrating environmental , social and governance factors , as referred to in the united nations - supported principles for responsible investment47 , at all stages of a project ' s lifecycle . __________________ 42 directive 2001 / 42 / ec of the european parliament and of the council of 27 june 2001 on the assessment of the effects of certain plans and programmes on the environment . 43 directive 2011 / 92 / eu of the european parliament and of the council of 13 december 2011 on the assessment of the effects of certain public and private projects on the environment . 44 directive 2014 / 23 / eu of the european parliament and of the council of 26 february 2014 on the award of concession contracts . 45 directive 2014 / 24 / eu of the european parliament and of the council of 26 february 2014 on public procurement and repealing directive 2004 / 18 / ec . 46 directive 2014 / 25 / eu of the european parliament and of the council of 26 february 2014 on procurement by entities operating in the water , energy , transport and postal services sectors and repealing directive 2004 / 17 / ec . 47 https : / / www . unpri . org / download ? ac=1534 .


### when establishing and updating the technical screening criteria the commission should also take into account the specificities of the infrastructure sector and take into account environmental , social and economic externalities within a cost - benefit analysis . in that regard , the commission should consider the work of international organisations , such as the oecd , relevant union legislation and standards , including directive 2001 / 42 / ec of the european parliament and of the council42 , directive 2011 / 92 / eu of the european parliament and of the council43 directive 2014 / 23 / eu of the european parliament and of the council44 , directive 2014 / 24 / eu of the european parliament and of the council45 , directive 2014 / 25 / eu of the european parliament and of the council46 , and current methodology . in that context , the technical screening criteria should promote appropriate governance frameworks integrating environmental , social and governance factors , as referred to in the united nations - supported principles for responsible investment47 , at all stages of a project ' s lifecycle . _________________ 42 directive 2001 / 42 / ec of the european parliament and of the council of 27 june 2001 on the assessment of the effects of certain plans and programmes on the environment . 43 directive 2011 / 92 / eu of the european parliament and of the council of 13 december 2011 on the assessment of the effects of certain public and private projects on the environment . 44 directive 2014 / 23 / eu of the european parliament and of the council of 26 february 2014 on the award of concession contracts . 45 directive 2014 / 24 / eu of the european parliament and of the council of 26 february 2014 on public procurement and repealing directive 2004 / 18 / ec . 46 directive 2014 / 25 / eu of the european parliament and of the council of 26 february 2014 on procurement by entities operating in the water , energy , transport and postal services sectors and repealing directive 2004 / 17 / ec . 47 https : / / www . unpri . org / download ? ac=1534 . ### when establishing and updating the technical screening criteria the commission should also take into account the specificities of the different sectors and take into account environmental , social and economic externalities within a cost - benefit analysis . as for energy sector , the commission should take into account article 194 of the tfeu and the member state ' s right to determine the conditions for exploiting the energy sources , its choice between different energy sources and the general structure of its energy supply . in that regard , the commission should consider the work of international organisations , such as the oecd , relevant union legislation and standards , including directive 2001 / 42 / ec of the european parliament and of the council42 , directive 2011 / 92 / eu of the european parliament and of the council43 directive 2014 / 23 / eu of the european parliament and of the council44 , directive 2014 / 24 / eu of the european parliament and of the council45 , directive 2014 / 25 / eu of the european parliament and of the council46 , and current methodology . in that context , the technical screening criteria should promote appropriate governance frameworks integrating environmental , social and governance factors , as referred to in the united nations - supported principles for responsible investment47 , at all stages of a project ' s lifecycle . _________________ 42 directive 2001 / 42 / ec of the european parliament and of the council of 27 june 2001 on the assessment of the effects of certain plans and programmes on the environment . 43 directive 2011 / 92 / eu of the european parliament and of the council of 13 december 2011 on the assessment of the effects of certain public and private projects on the environment . 44 directive 2014 / 23 / eu of the european parliament and of the council of 26 february 2014 on the award of concession contracts . 45 directive 2014 / 24 / eu of the european parliament and of the council of 26 february 2014 on public procurement and repealing directive 2004 / 18 / ec . 46 directive 2014 / 25 / eu of the european parliament and of the council of 26 february 2014 on procurement by entities operating in the water , energy , transport and postal services sectors and repealing directive 2004 / 17 / ec . 47 https : / / www . unpri . org / download ? ac=1534 .


### to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that all relevant economic activities within a specific sector can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the criteria . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter . ### to encourage environmentally sustainable innovation and to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that all relevant economic activities within economic macro sectors can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation while not significantly harming any other environmental objectives referred to in articles 3 and 12 . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the technical screening criteria . however , within each economic macro sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter while not significantly harming any other environmental objectives referred to in articles 3 and 12 .


### to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that all relevant economic activities within a specific sector can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the criteria . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter . ### to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that all relevant economic activities within a specific sector can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the criteria . therefore , the screening criteria should not result in the creation of a black list or brown list . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter .


### when establishing technical screening criteria , the commission should assess whether adoption of those criteria for environmentally sustainable activities would give rise to stranded assets or deliver inconsistent incentives , and whether it would have any negative impact on liquidity in financial markets . ### when establishing technical screening criteria , the commission should assess potential transition risks , whether the pace of the adoption of those criteria for environmentally sustainable activities would give rise to stranded assets or deliver inconsistent incentives , and whether it would have any negative impact on liquidity in financial markets .


### appropriate technical screening criteria should be established for the transport sector , including for mobile assets , which should take into account that the transport sector , including international shipping , contributes close to 26% of total greenhouse gas emissions in the union . as evidenced in the action plan on financing sustainable growth48the transport sector represents about 30% of additional annual investment needs for sustainable development in the union , including by increasing electrification or transition to cleaner modes of transport by promoting modal shift and traffic management . _________________ 48 com 97 final . ### appropriate technical screening criteria should be established for the transport sector , including for mobile assets , which should take into account the whole life cycle of technologies and the fact that the transport sector , including international shipping , contributes close to 26% of total greenhouse gas emissions in the union . as evidenced in the action plan on financing sustainable growth48 the transport sector represents about 30% of additional annual investment needs for sustainable development in the union , including by increasing electrification or transition to cleaner modes of transport by promoting modal shift and traffic management . _________________ 48 com 97 final .


### 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 scientific evidence , socio - economic impact , best practice and the advice of experts with proven knowledge and experience in all of the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of a wide range of experts representing both the public and the private sector to ensure that the specificities of all relevant sectors are duly taken into account . 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 , representatives of the real economy including the manufacturing industry , 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 the suitability of the technical screening criteria .


### since the objectives of this regulation cannot be sufficiently achieved by the member states , but can be better achieved at union level , by reason of the need to introduce at union level uniform criteria for environmentally sustainable economic activities , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 of the treaty on european union . in accordance with the principle of proportionality , as set out in that article , this regulation does not go beyond what is necessary in order to achieve those objectives , ### since the objectives of this regulation cannot be sufficiently achieved by the member states , but can be better achieved at union level , by reason of the need to introduce at union level uniform criteria and indicators for environmentally sustainable economic activities , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 of the treaty on european union . in accordance with the principle of proportionality , as set out in that article , this regulation does not go beyond what is necessary in order to achieve those objectives ,


### financial market participants offering financial products as environmentally sustainable investments or as investments having similar characteristics . ### financial market participants which are offering financial products as environmentally sustainable investments or as investments that have similar characteristics .


### ‘ climate change adaptation’ means the process of adjustment to actual and expected climate and its effects ; ### ‘ climate change adaptation’ means the process of adjustment to actual and expected climate change and its effects ;


### ' healthy ecosystem ' means an ecosystem that is in a good physical , chemical and biological condition or of a good physical , chemical and biological quality ; ### ' healthy ecosystem ' means an ecosystem that is in a good physical , chemical and biological condition or of a good physical , chemical and biological quality and that is capable of self - reproduction or self - restoration to equilibrium and that preserves biodiversity ;


### ' climate change mitigation ' means the process of holding the increase in the global average temperature to well below 2 °c above pre - industrial levels and limiting the temperature increase to 1 . 5 °c above pre - industrial levels ; ### ' lessening the human influence on climate change ' reflects the fact that a precise distinction must be drawn between climate changes brought about solely by human action and climate changes which are part of an ongoing natural process . human influence on climate change should not bring about a temperature increase in excess of 2°c .


### the economic activity does not significantly harm any of the environmental objectives set out in article 5 in accordance with article 12 ; ### the economic activity does not harm the environmental objective set out in point of article 5 or does not significantly harm any of the other environmental objectives set out in article 5 in accordance with article 12 ;


### for the purposes of establishing the degree of environmental sustainability of an investment , an economic activity shall be environmentally sustainable where that activity complies with all of the following criteria : ### for the purposes of establishing the degree of environmental sustainability of an investment , an economic activity , a technology or a service shall be environmentally sustainable where it complies with all of the following criteria :


### the economic activity complies with technical screening criteria , where the commission has specified those in accordance with articles 6 , 7 , 8 , 9 , 10 and 11 . ### it complies with technical screening criteria , where the commission has specified those in accordance with articles 6 , 7 , 8 , 9 , 10 and 11 . those criteria shall take into account planned investments that contribute substantially to one or more of the environmental objectives listed in article 5 .


### use of the criteria for environmentally sustainable economic activities ### application of and compliance with the criteria for determining the degree of environmental sustainability