### to overcome temporary difficulties with the long - term objective of ensuring that all producers in the area concerned comply with the specification , a member state may grant a transitional period of up to 10 years , with effect from the date on which the application is lodged with the commission , on condition that the operators concerned have legally marketed the products in question , using the names concerned continuously for at least the five years prior to the lodging of the application to the authorities of the member state and have made that point in the national opposition procedure referred to in article 49 . ### in article 15 , paragraph 4 is replaced by the following : “4 . to overcome temporary difficulties with the long - term objective of ensuring that all producers in the area concerned comply with the specification , a member state may grant a transitional period of up to 10 years , with effect from the date on which the application is lodged with the commission , on condition that the operators concerned have legally marketed the products in question , using the names concerned continuously for at least the five years prior to the launch of the national opposition procedure referred to in article 49 and have made that point in the said procedure . ”


### in the case of the products originating in the union that are marketed under a traditional speciality guaranteed that is registered in accordance with this regulation , the symbol referred to in paragraph 2 shall , without prejudice to paragraph 4 , appear on the labelling . in addition , the name of the product should appear in the same field of vision . the indication ‘ traditional speciality guaranteed’ or the corresponding abbreviation ‘ tsg’ may also appear on the labelling . ### in article 23 , paragraph 3 is replaced by the following : “3 . in the case of the products originating in the union that are marketed under a traditional speciality guaranteed that is registered in accordance with this regulation , the symbol referred to in paragraph 2 shall , without prejudice to paragraph 4 , appear on the labelling , advertising material and documents relating to the product involved . in addition , the name of the product should appear in the same field of vision and in a prominent place , so that it is easily visible , clearly readable and , if applicable , indelible . it must under no circumstances be concealed , obscured , damaged or interrupted by any other written or pictorial element or any other intermediate document . the indication ‘ traditional speciality guaranteed’ or the corresponding abbreviation ‘ tsg’ may also appear on the labelling . ”


### the commission shall examine applications for registration that it receives in accordance with article 49 and . the commission shall review the applications for manifest errors , taking into account the outcome of the scrutiny and opposition procedure carried out by the member state concerned . ### the commission shall examine applications for registration that it receives in accordance with article 49 and . the commission shall review the applications received following the scrutiny and opposition procedure carried out by the member state concerned to see whether they contain any manifest errors .


### it risks to void the links referred to in point of article 5 for protected designations of origin and of article 5 for protected geographical indications ; ### it risks distorting the links referred to in point of article 5 for protected designations of origin and of article 5 for protected geographical indications ;


### historically , union rules have limited the overall length of truck combinations which resulted in the typical cab - over - engine designs as they maximise the cargo space . however , the high position of the driver led to an increased blind spot area and poorer direct visibility around the truck cab . this is a major factor for truck accidents involving vulnerable road users . the number of casualties could be reduced significantly by improving direct vision . requirements should therefore be introduced to improve the direct vision . ### historically , union rules have limited the overall length of truck combinations which resulted in the typical cab - over - engine designs as they maximise the cargo space . however , the high position of the driver led to an increased blind spot area and poorer direct visibility around the truck cab . this is a major factor for truck accidents involving vulnerable road users . the number of casualties could be reduced significantly by improving direct vision . requirements should therefore be introduced to improve the direct vision . these rules should take into account different vehicle types .


### automated and connected vehicles may be able to make a huge contribution in reducing road fatalities since in the region of 90 per cent of road accidents are estimated to result from human error . as automated vehicles will gradually be taking over tasks of the driver , harmonised rules and technical requirements for automated vehicle systems should be adopted at union level . ### as automated vehicles might gradually be taking over tasks of the driver , harmonised rules and technical requirements for automated vehicle systems , such as a transparent , technology neutral and non - proprietary standard that provides verifiable safety assurance for autonomous vehicle decision - making , should be adopted at union level .


### detailed technical requirements and specific test procedures for type - approval of motor vehicles and their trailers , and of systems , components and separate technical units should be laid down in delegated acts before the date of application of this regulation . moreover , manufacturers should be allowed sufficient time to adapt to the requirements of this regulation and the delegated acts adopted pursuant to it . therefore , the application of this regulation should be deferred , ### detailed technical requirements and specific adequate test procedures for type - approval of motor vehicles and their trailers , and of systems , components and separate technical units should be laid down in delegated implementing acts before the date of application of this regulation . moreover , manufacturers should be allowed sufficient time to adapt to the requirements of this regulation and the delegated implementing acts adopted pursuant to it . some vehicles are produced in small quantities . therefore , it is appropriate that requirements set out in this regulation and its implementing measures , take into account such vehicles or classes of vehicles where such requirements are incompatible with the use or design of such vehicles , or where the additional burden imposed by them is disproportionate . therefore , the application of this regulation should be deferred ,


### detailed technical requirements and specific test procedures for type - approval of motor vehicles and their trailers , and of systems , components and separate technical units should be laid down in delegated acts before the date of application of this regulation . moreover , manufacturers should be allowed sufficient time to adapt to the requirements of this regulation and the delegated acts adopted pursuant to it . therefore , the application of this regulation should be deferred , ### detailed technical requirements and specific test procedures for type - approval of motor vehicles and their trailers , and of systems , components and separate technical units should be laid down in delegated acts before the date of application of this regulation . moreover , manufacturers should be allowed sufficient time to adapt to the requirements of this regulation and the delegated acts adopted pursuant to it . some vehicles are sold and produced in small quantities . therefore , it is appropriate that requirements set out in this regulation and its implementing measures , take into account such vehicles or classes of vehicles where such requirements are incompatible with the use or design of such vehicles , or where the additional burden imposed by them is disproportionate . therefore , the application of this regulation should be deferred .


### ‘ advanced emergency braking system’ means a system which can automatically detect a potential collision and activate the vehicle braking system to decelerate the vehicle with the purpose of avoiding or mitigating a collision ; ### ‘ advanced emergency braking system’ means a system which can automatically detect a potential collision and automatically activate the vehicle braking system at the latest possible moment to decelerate the vehicle with the purpose of avoiding or mitigating a collision ;


### vehicles shall be equipped with an accurate tyre pressure monitoring system capable of giving an in - vehicle warning to the driver when a loss of pressure occurs in a tyre , in the interests of optimum fuel consumption and road safety , over a wide range of road and environmental conditions . ### vehicles of categories m1 and n1shall be equipped with an accurate tyre pressure monitoring system capable of giving an in - vehicle warning to the driver when a loss of pressure occurs in a tyre , in the interests of optimum fuel consumption and road safety , over a wide range of road and environmental conditions .


### vehicles of categories m1 and n1 shall be equipped with a lane - keeping system . ### vehicles of categories m1 and n1shall be equipped with a lane - keeping system or lane departure warning system .


### it shall be possible to switch off systems only one at a time , and only at standstill with the parking brake engaged , by a complex sequence of actions to be carried out by the driver ; ### it shall be possible to switch off systems only one at a time , and only at standstill with the parking brake engaged ;


### the protection of natural persons in relation to the processing of personal data is a fundamental right . article 8 of the charter of fundamental rights of the european union and article 16 of the treaty on the functioning of the european union provide that everyone has the right to the protection of personal data concerning them . ### the protection of natural persons in relation to the processing of personal data is a fundamental right . article 8 of the charter of fundamental rights of the european union and article 16 of the treaty on the functioning of the european union provide that everyone has the right to the protection of personal data concerning them . this right is also guaranteed under article 8 of the european convention on human rights .


### it is in the interest of a coherent approach to personal data protection throughout the union , and of the free movement of personal data within the union , to align as far as possible the data protection rules for union institutions and bodies with the data protection rules adopted for the public sector in the member states . whenever the provisions of this regulation are based on the same concept as the provisions of regulation 2016 / 679 , those two provisions should be interpreted homogeneously , in particular because the scheme of this regulation should be understood as equivalent to the scheme of regulation 2016 / 679 . ### it is in the interest of a coherent approach to personal data protection throughout the union , and of the free movement of personal data within the union , to align the data protection rules for union institutions , bodies , offices and agencies with the data protection rules adopted for the public sector in the member states . whenever the provisions of this regulation are based on the same concept as the provisions of regulation 2016 / 679 , those two provisions should under the case law of the court of justice of the european union1a , be interpreted homogeneously , in particular because the scheme of this regulation should be understood as equivalent to the scheme of regulation 2016 / 679 . _________________ 1a judgment of the court of justice of 9 march 2010 , commission v germany , c - 518 / 07 , ecli : eu : c : 2010 : 125 , paragraphs 26 and 28 .


### when personal data are transferred from the union institutions and bodies to controllers , processors or other recipients in third countries or to international organisations , the level of protection of natural persons ensured in the union by this regulation should not be undermined , including in cases of onward transfers of personal data from the third country or international organisation to controllers , processors in the same or another third country or international organisation . in any event , transfers to third countries and international organisations may only be carried out in full compliance with this regulation . a transfer could take place only if , subject to the other provisions of this regulation , the conditions laid down in the provisions of this regulation relating to the transfer of personal data to third countries or international organisations are complied with by the controller or processor . ### when personal data are transferred from the union institutions and bodies to controllers , processors or other recipients in third countries or to international organisations , the level of protection of natural persons ensured in the union by this regulation should be guaranteed , including in cases of onward transfers of personal data from the third country or international organisation to controllers , processors in the same or another third country or international organisation . in any event , transfers to third countries and international organisations may only be carried out in full compliance with this regulation , with regulation 2016 / 679 and with the fundamental rights and freedoms enshrined in the charter . a transfer could take place only if , subject to the other provisions of this regulation , the conditions laid down in the provisions of this regulation relating to the transfer of personal data to third countries or international organisations are complied with by the controller or processor .


### the definitions in regulation 2016 / 679 , with the exception of the definition of ' controller ' in point of article 4 of that regulation ; ### the definitions in regulation 2016 / 679 , with the exception of the definition of ' controller ' in point , , ' main establishment ' in point , ' enterprise ' in point , ' group of undertaking ' in point and ' binding cooperate rules ' in point of article 4 of that regulation ;


### personal data must be : ### personal data&#160 ; shall be :


### without prejudice to articles 4 , 5 , 6 and 10 , personal data shall only be transmitted to recipients established in the union and subject to regulation 2016 / 679 or to the national law adopted pursuant to directive 2016 / 680 , if the recipient establishes : ### without prejudice to articles 4 , 5 , 6 and 10 , personal data shall only be transmitted to other recipients established in the union if the recipient establishes :


### the data subject has given explicit consent to the processing of those data for one or more specified purposes , except where union law provides that the prohibition referred to in paragraph 1 may not be lifted by the data subject , or ### the data subject has given explicit consent to the processing of those personal data for one or more specified purposes , except where union law provides that the prohibition referred to in paragraph 1 may not be lifted by the data subject , or


### processing of personal data relating to criminal convictions and offences or related security measures pursuant to article 5 may be carried out only if authorised by union law , which may include internal rules , providing the appropriate specific safeguards for the rights and freedoms of data subjects . ### processing of personal data relating to criminal convictions and offences or related security measures pursuant to article 5 shall be carried out only when authorised by union law , which may include internal rules , providing the appropriate specific safeguards for the rights and freedoms of data subjects .


### information provided under articles 15 and 16 and any communication and any actions taken under articles 17 to 24 and 38 shall be provided free of charge . where requests from a data subject are manifestly unfounded or excessive , in particular because of their repetitive character , the controller may refuse to act on the request . ### information provided under articles 15 and 16 and any communication and any actions taken under articles 17 to 24 and 38 shall be provided free of charge .


### if the commission adopts delegated acts pursuant to article 12 of regulation 2016 / 679 determining the information to be presented by the icons and the procedures for providing standardised icons , union institutions and bodies shall , where appropriate , provide the information pursuant to articles 15 and 16 in combination with such standardised icons . ### the commission shall be empowered to adopt delegated acts pursuant to article 12 of regulation 2016 / 679 determining the information to be presented by the icons and the procedures for providing standardised icons , union institutions and bodies shall , where appropriate , provide the information pursuant to articles 15 and 16 in combination with such standardised icons .


### obtaining or disclosure is expressly laid down by union law ; or ### obtaining or disclosure is expressly laid down by union law to which the controller is subject and which provides appropriate measures to protect the data subject ' s legitimate interest ; or


### where the personal data must remain confidential subject to an obligation of professional secrecy regulated by union law . ### where the personal data must remain confidential subject to an obligation of professional secrecy regulated by union law , including a statutory obligation of secrecy .


### the processing is unlawful and the data subject opposes their erasure and requests the restriction of their use instead ; ### the processing is unlawful and the data subject opposes the erasure of the personal data and requests the restriction of their use instead ;


### the data protection officer and his or her staff shall be bound by secrecy or confidentiality concerning the performance of his or her tasks , in accordance with union law . ### the data protection officer shall be bound by secrecy or confidentiality concerning the performance of his or her tasks , in accordance with union law .


### the list drawn up by the commission from which the european data protection supervisor shall be chosen shall be made up of persons whose independence is beyond doubt and who are acknowledged as having the experience and skills required to perform the duties of european data protection supervisor , for example because they belong or have belonged to the supervisory authorities established under article 41 of regulation 2016 / 679 . ### the list drawn up by the commission from which the european data protection supervisor shall be chosen shall be made up of persons whose independence is beyond doubt and who are acknowledged as having the experience and skills required to perform the duties of european data protection supervisor .


### to obtain access to any premises of the controller and the processor , including to any data processing equipment and means , in accordance with union or member state procedural law ; ### to obtain access to any premises of the controller and the processor , including to any data processing equipment and means , in accordance with union law ;


### the enlargement policy of the union is an investment in peace , security and stability in europe . it provides increased economic and trade opportunities to the mutual benefit of the union and the aspiring member states . the prospect of union membership has a powerful transformative effect , embedding positive democratic , political , economic and societal change . ### the enlargement policy of the union is an investment in peace , security and stability in europe . it provides increased economic and trade opportunities to the mutual benefit of the union and the aspiring member states . the prospect of union membership has a powerful transformative effect , embedding positive democratic , political , economic , societal and environmental change .


### assistance should also be provided in compliance with the agreements concluded by the union with the beneficiaries listed in annex i . assistance should mainly focus on assisting the beneficiaries listed in annex i to strengthen democratic institutions and the rule of law , reform the judiciary and public administration , respect fundamental rights and promote gender equality , tolerance , social inclusion and non - discrimination . assistance should also support the key principles and rights as defined in the european pillar of social rights17 . assistance should continue to support their efforts to advance regional , macro - regional and cross - border cooperation as well as territorial development , including through implementation of union macro - regional strategies . it should also enhance their economic and social development and economic governance , underpinning a smart , sustainable and inclusive growth agenda , including through implementation of regional development , agriculture and rural development , social and employment policies and the development of the digital economy and society , also in line with the flagship initiative digital agenda for the western balkans . __________________ 17 european pillar of social rights solemnly proclaimed by the european parliament , the council and the commission at the gothenburg social summit for fair jobs and growth , gothenburg 17 november 2017 . ### assistance should also be provided in compliance with the agreements concluded by the union with the beneficiaries listed in annex i . assistance should mainly focus on assisting the beneficiaries listed in annex i to strengthen democratic institutions and the rule of law , reform the judiciary and public administration , respect fundamental rights and promote gender equality , tolerance , social inclusion and non - discrimination . assistance should also support the key principles and rights as defined in the european pillar of social rights17 . assistance should continue to support their efforts to advance regional , macro - regional and cross - border cooperation as well as territorial development , including through implementation of union macro - regional strategies . it should also enhance their economic and social development and economic governance , underpinning a smart , sustainable and inclusive growth agenda , including through implementation of regional development , agriculture and rural development , social and employment policies and the development of the digital economy and society in line also with the flagship initiative digital agenda for the western balkans . the beneficiaries listed in annex i should promote investments and ensure their visibility . __________________ 17 european pillar of social rights solemnly proclaimed by the european parliament , the council and the commission at the gothenburg social summit for fair jobs and growth , gothenburg 17 november 2017 .


### the union should provide support to the transition towards accession for the benefit of the beneficiaries listed in annex i , based on the experience of its member states . this cooperation should focus in particular on the sharing of experience acquired by the member states in the reform process . ### the union should provide support to the transition towards accession for the benefit of the beneficiaries listed in annex i , based on the experience of its member states and duly taking into consideration their specific situations . this cooperation should focus in particular on the sharing of experience acquired by the member states in the reform process .


### it is essential to further step up cooperation on migration including border management , ensuring access to international protection , sharing relevant information , strengthening the development benefits of migration , facilitating legal and labour migration , enhancing border control and pursuing our effort in the fight against irregular migration , trafficking in human beings and migrant smuggling . ### it is essential to further step up cooperation on migration related issues such as border control and protection , ensuring access to international protection , sharing relevant information , enhancing border control and pursuing our effort in the fight against irregular migration , trafficking in human beings and migrant smuggling .


### strengthening the rule of law , including the fight against corruption and organised crime , and good governance , including public administration reform , remain key challenges in most of the beneficiaries listed in annex i and are essential in order for beneficiaries to come closer to the union and later to fully assume the obligations of union membership . in view of the longer - term nature of the reforms pursued in those areas and the need to build up track records , financial assistance under this regulation should address the requirements placed on the beneficiaries listed in annex i as early as possible . ### strengthening the rule of law , including the fight against corruption and organised crime , and good governance , including public administration reform and bolstering administrative capacities , remain key challenges in most of the beneficiaries listed in annex i and are essential in order for beneficiaries to come closer to the union and later to fully assume the obligations of union membership . in view of the longer - term nature of the reforms pursued in those areas and the need to build up track records , financial assistance under this regulation should address the requirements placed on the beneficiaries listed in annex i as early as possible .


### the beneficiaries listed in annex i need to be better prepared to address global challenges , such as sustainable development and climate change , and align with the union ' s efforts to address those issues . reflecting the importance of tackling climate change in line with the union ' s commitments to implement the paris agreement and the sustainable development goals , this programme should contribute to mainstream climate action in the union ' s policies and to the achievement of an overall target of 25 % of the eu budget expenditures supporting climate objectives . actions under this programme are expected to contribute 16 % of the overall financial envelope of the programme to climate objectives . relevant actions will be identified during the programme ' s preparation and implementation , and the overall contribution from this programme should be part of relevant evaluations and review processes . ### the beneficiaries listed in annex i need to be better prepared to address global challenges , such as sustainable development and climate change , and align with the union ' s efforts to address those issues . reflecting the importance of tackling climate change in line with the union ' s commitments to implement the paris agreement and the sustainable development goals , this programme should contribute to mainstream climate action in the union ' s policies and to the achievement of an overall target of 25 % of the eu budget expenditures supporting climate objectives . actions under this programme are expected to contribute 25 % of the overall financial envelope of the programme to climate objectives . relevant actions will be identified during the programme ' s preparation and implementation , and the overall contribution from this programme should be part of relevant evaluations and review processes .


### the beneficiaries listed in annex i need to be better prepared to address global challenges , such as sustainable development and climate change , and align with the union ' s efforts to address those issues . reflecting the importance of tackling climate change in line with the union ' s commitments to implement the paris agreement and the sustainable development goals , this programme should contribute to mainstream climate action in the union ' s policies and to the achievement of an overall target of 25 % of the eu budget expenditures supporting climate objectives . actions under this programme are expected to contribute 16 % of the overall financial envelope of the programme to climate objectives . relevant actions will be identified during the programme ' s preparation and implementation , and the overall contribution from this programme should be part of relevant evaluations and review processes . ### the beneficiaries listed in annex i need to be better prepared to address global challenges , such as sustainable development , climate change and adapting the eu’s circular economy model , and to align with the union ' s efforts to address those issues . reflecting the importance of tackling climate change in line with the union ' s commitments to implement the paris agreement and the sustainable development goals , this programme should contribute to mainstream climate action in the union ' s policies and to the achievement of an overall target of 25 % of the eu budget expenditures supporting climate objectives . actions under this programme are expected to contribute 16 % of the overall financial envelope of the programme to climate objectives . relevant actions will be identified during the programme ' s preparation and implementation , and the overall contribution from this programme should be part of relevant evaluations and review processes .


### the transition from direct management of pre - accession funds by the commission to indirect management by the beneficiaries listed in annex i should be progressive and in line with the respective capacities of those beneficiaries . assistance should continue to make use of the structures and instruments that have proved their worth in the pre - accession process . ### the transition from direct management of pre - accession funds by the commission to indirect management by the beneficiaries listed in annex i should be progressive and in line with the respective capacities of those beneficiaries , including local and regional authorities . assistance should continue to make use of the structures and instruments that have proved their worth in the pre - accession process .


### the union should seek the most efficient use of available resources in order to optimise the impact of its external action . that should be achieved through coherence and complementarity among the union ' s external financing instruments , as well as the creation of synergies with other union policies and programmes . this includes , where relevant , coherence and complementarity with macro - financial assistance . ### the union should seek to use available resources efficiently in order to optimise the impact of its external action . that should be achieved through coherence and complementarity among the union ' s external financing instruments , as well as the creation of synergies with other union policies and programmes . this includes , where relevant , coherence and complementarity with macro - financial assistance .


### the general objective of ipa iii shall be to support the beneficiaries listed in annex i in adopting and implementing the political , institutional , legal , administrative , social and economic reforms required by those beneficiaries to comply with union values and to progressively align to union rules , standards , policies and practices with a view to union membership , thereby contributing to their stability , security and prosperity . ### the general objective of ipa iii shall be to support the beneficiaries listed in annex i in adopting and implementing the political , institutional , legal , administrative , social , environmental and economic reforms required by those beneficiaries to comply with union values and to progressively align to union rules , standards , policies and practices with a view to union membership , thereby contributing to their stability , security and prosperity .


### to strengthen the rule of law , democracy , the respect of human rights , fundamental rights and international law , civil society and security as well as improve migration management including border management ; ### to strengthen the rule of law , democracy , the respect of human rights , including the rights of persons belonging to national , ethnic , linguistic and other minorities , fundamental rights and international law , civil society and security as well as stem migration and enhance border control and protection ;


### to reinforce the effectiveness of public administration and support structural reforms and good governance at all levels ; ### to reinforce the effectiveness of public administration , bolster administrative capacities and support structural reforms and good governance at all levels ;


### the [ erdf ] 33 shall contribute to programmes or measures established for cross–border cooperation between the beneficiaries listed in annex i and member states . these programmes and measures shall be adopted by the commission in accordance with article 16 . the amount of the contribution from ipa - cbc shall be determined pursuant to article 10 of [ etc regulation ] . ipa - cross border cooperation programmes shall be managed in accordance with [ etc regulation ] . __________________ 33 com 372 final proposal for a regulation of the european parliament and of the council on the european regional development fund and on the cohesion fund . ### the [ erdf ] 33 shall contribute to programmes or measures established for cross–border cooperation between the beneficiaries listed in annex i and member states . these programmes and measures shall be adopted by the commission in accordance with article 16 . the amount of the contribution from ipa - cbc shall be determined pursuant to article 10 of [ etc regulation ] . ipa - cross border cooperation programmes shall be managed in accordance with [ etc regulation ] . the beneficiaries referred to in annex i to this regulation and their local and regional authorities are invited to take part in the types of cooperation provided for under the egtc regulation . __________________ 33 com 372 final proposal for a regulation of the european parliament and of the council on the european regional development fund and on the cohesion fund .


### programmes and actions under this regulation shall mainstream climate change , environmental protection and gender equality and shall , where applicable , address interlinkages between sustainable development goals34 , to promote integrated actions that can create co - benefits and meet multiple objectives in a coherent way . __________________ 34 https : / / ec . europa . eu / europeaid / policies / sustainable - development - goals_en ### programmes and actions under this regulation shall mainstream climate change , environmental protection , gender equality , cultural and linguistic diversity and shall , where applicable , address interlinkages between sustainable development goals34 , to promote integrated actions that can create co - benefits and meet multiple objectives in a coherent way . __________________ 34 https : / / ec . europa . eu / europeaid / policies / sustainable - development - goals_en


### up to 3 % of the financial envelope shall be indicatively allocated to cross - border cooperation programmes between the beneficiaries listed in annex i and the member states , in line with their needs and priorities . ### up to 5 % of the financial envelope shall be indicatively allocated to cross - border cooperation programmes between the beneficiaries listed in annex i and the member states , in line with their needs and priorities . this shall include support for capacity building at local and regional level .


### monitoring and evaluation ### monitoring , evaluation and visibility


### monitoring , audit , evaluation and protection of the union ' s financial interests ### monitoring , audit , evaluation , visibility and protection of the union ' s financial interests


### establishing and promoting from an early stage the proper functioning of the institutions necessary in order to secure the rule of law . interventions in this area shall aim at : establishing independent , accountable and efficient judicial systems , including transparent and merit - based recruitment and promoting judicial cooperation , evaluation and promotion systems and effective disciplinary procedures in cases of wrongdoing ; ensuring the establishment of robust systems to protect the borders , manage migration flows and provide asylum to those in need ; developing effective tools to prevent and fight organised crime , trafficking in human beings , migrants smuggling , money laundering / financing of terrorism and corruption ; promoting and protecting human rights , rights of persons belonging to minorities including roma as well as lesbian , gay , bisexual , transgender and intersex persons fundamental freedoms , including freedom of the media and data protection . ### establishing and promoting from an early stage the proper functioning of the institutions necessary in order to secure the rule of law . interventions in this area shall aim at : establishing independent , accountable and efficient judicial systems , including transparent and merit - based recruitment and promoting judicial cooperation , evaluation and promotion systems and effective disciplinary procedures in cases of wrongdoing ; ensuring the establishment of robust systems to protect the borders , stem migration flows and provide asylum to those in need ; developing effective tools to prevent and fight organised crime , trafficking in human beings , migrants smuggling , money laundering / financing of terrorism and corruption ; promoting and protecting human rights , rights of persons belonging to national , ethnic , linguistic and other minorities including roma , protecting and promoting cultural and linguistic diversity , freedom of the media and data protection .


### promoting employment , labour mobility and social and cultural inclusion across borders through , inter alia : integrating cross - border labour markets , including cross - border mobility ; joint local employment initiatives ; information and advisory services and joint training ; gender equality ; equal opportunities ; integration of immigrants ' communities and vulnerable groups ; investment in public employment services ; and supporting investment in public health and social services ; ### promoting employment , labour mobility and social and cultural inclusion across borders through , inter alia : integrating cross - border labour markets , including cross - border mobility ; joint local employment initiatives ; information and advisory services and joint training ; gender equality ; equal opportunities ; promotion of linguistic and cultural diversity ; integration of immigrants ' communities and vulnerable groups ; investment in public employment services ; and supporting investment in public health and social services ;


### encouraging tourism and cultural and natural heritage ; ### encouraging tourism , sport and cultural and natural heritage ;


### the union is committed to developing a comprehensive response to the sustainable development goals of the united nations 2030 agenda for the sustainable development , which highlight the intrinsic connection between the management of natural resources to ensure their long - term availability , ecosystem services , their link to human health and sustainable and socially inclusive economic growth . in this spirit , the programme should make a material contribution to both economic development and social cohesion . ### the european union as a whole is committed to developing a comprehensive response to the sustainable development goals of the united nations 2030 agenda for the sustainable development , which highlight the intrinsic connection between the management of natural resources to ensure their long - term availability , ecosystem services , their link to human health and sustainable and socially inclusive economic growth . in this spirit , the programme should make a material contribution to economic development , social and territorial cohesion .


### the transition to clean energy is an essential contribution to the mitigation of climate change with co - benefits for the environment . actions for capacity building supporting the clean energy transition , funded until 2020 under horizon 2020 , should be integrated in the programme since their objective is not to fund excellence and generate innovation , but to facilitate the uptake of already available technology that will contribute to climate mitigation . the inclusion of these capacity building activities into the programme offers potential for synergies between the sub - programmes and increases the overall coherence of union funding . therefore , data should be collected and disseminated on the uptake of existing research and innovation solutions in the life projects , including from the horizon europe programme and its predecessors . ### the transition to clean energy is an essential contribution to the mitigation of climate change with co - benefits for the environment . actions for capacity building supporting the clean energy transition , funded until 2020 under horizon 2020 , should be integrated in the programme since their objective is not to fund excellence and generate innovation , but to facilitate the uptake of already available technology that will contribute to climate mitigation . the inclusion of these capacity building activities into the programme offers potential for synergies between the sub - programmes and increases the overall coherence of union funding . therefore , data should be collected and disseminated on the uptake of existing research and innovation solutions in the life projects , including from the horizon europe and other programmes and its predecessors .


### the impact assessments of the clean energy legislation estimate that the delivery of the union ' s 2030 energy targets will require additional investments of eur 177 billion annually in the period 2021 - 2030 . the biggest gaps relate to the investments in buildings decarbonisation , where capital needs to be channelled towards projects of highly distributed nature . one of the objectives of the clean energy transition sub - programme is to build capacity for projects development and aggregation , thereby also helping to absorb funds from the european structural and investment funds and catalyse investments in clean energy also using the financial instruments provided under investeu . ### the impact assessments of the clean energy legislation estimate that the delivery of the union ' s 2030 energy targets will require additional investments of eur 177 billion annually in the period 2021 - 2030 . the biggest gaps relate to the investments in buildings decarbonisation , where capital needs to be channelled towards projects of highly distributed nature . one of the objectives of the clean energy transition sub - programme is to build capacity for projects development and aggregation , focusing on the specific energy potential of the regions , thereby also helping to absorb funds from the european structural and investment funds and catalyse investments in clean energy also using the financial instruments provided under investeu .


### the union ' s most recent environmental implementation review package21 indicates that significant progress is required to accelerate implementation of the union environment acquis and enhance the integration of environmental and climate objectives into other policies . the programme should therefore act as a catalyst to achieve the required progress through developing , testing and replicating new approaches ; supporting policy development , monitoring and review ; enhancing stakeholder involvement ; mobilising investments across union investment programmes or other financial sources and supporting actions to overcome the various obstacles to the effective implementation of key plans required by environment legislation . _________________ 21 communication from the commission to the european parliament , the council , the european economic and social committee and the committee of the regions - the eu environmental implementation review : common challenges and how to combine efforts to deliver better results . ### the union ' s most recent environmental implementation review package21 indicates that significant progress is required to accelerate implementation of the union environment acquis and enhance the integration of environmental and climate objectives into other policies . the programme should therefore act as a catalyst to achieve the required progress through developing , testing , replicating and increasing the visibility of new approaches and best practices ; supporting policy development , coherence , consistency , monitoring and review ; promoting more effective coordination between national , regional and local authorities ; enhancing all stakeholders ' involvement , particularly with regard to national , regional and local authorities , ngos , research centres and businesses ; mobilising investments across union investment programmes or other financial sources and supporting actions to overcome the various obstacles to the effective implementation of key plans required by environment legislation . _________________ 21 communication from the commission to the european parliament , the council , the european economic and social committee and the committee of the regions - the eu environmental implementation review : common challenges and how to combine efforts to deliver better results .


### recent evaluations and assessments , including the mid - term review of the eu biodiversity strategy to 2020 and the fitness check of nature legislation , indicate that one of the main underlying causes for insufficient implementation of union nature legislation and of the biodiversity strategy is the lack of adequate financing . the main union funding instruments , including the [ european regional development fund , the cohesion fund , the european agricultural fund for rural development and the european maritime and fisheries fund ] , can make a significant contribution towards meeting those needs . the programme can further improve the efficiency of such mainstreaming through strategic nature projects dedicated to catalysing the implementation of union nature and biodiversity legislation and policy , including the actions set out in the priority action frameworks developed in accordance with directive 92 / 43 / eec . the strategic nature projects should support programmes of actions in member states for the mainstreaming of relevant nature and biodiversity objectives into other policies and financing programmes , thus ensuring that appropriate funds are mobilised for implementing these policies . member states could decide within their strategic plan for the common agricultural policy to use a certain share of the european agricultural fund for rural development allocation to leverage support for actions that complement the strategic nature projects as defined under this regulation . ### recent evaluations and assessments , including the mid - term review of the eu biodiversity strategy to 2020 and the fitness check of nature legislation , indicate that one of the main underlying causes for insufficient implementation of union nature legislation and of the biodiversity strategy is the lack of adequate financing . the main union funding instruments , including the [ european regional development fund , the cohesion fund , the european agricultural fund for rural development and the european maritime and fisheries fund ] , can make a significant contribution towards meeting those needs . the programme can further improve the efficiency of such mainstreaming through strategic nature projects dedicated to catalysing the implementation of union nature and biodiversity legislation and policy , including the actions set out in the priority action frameworks developed in accordance with directive 92 / 43 / eec . the strategic nature projects should support programmes of actions in member states for the mainstreaming of relevant nature and biodiversity objectives into other policies and financing programmes , thus ensuring that appropriate funds are mobilised , ensuring interaction between the various eu financial instruments , for implementing these policies by striking a balance between nature conservation and local and regional development needs . member states could decide within their strategic plan for the common agricultural policy to use a certain share of the european agricultural fund for rural development allocation to leverage support for actions that complement the strategic nature projects as defined under this regulation .


### promoting the circular economy requires a mentality shift in the way of designing , producing , consuming and disposing of materials and products , including plastics . the programme should contribute to the transition to a circular economy model through financial support targeting a variety of actors , in particular by applying , developing , and replicating best technology , practices and solutions tailored to specific local , regional or national contexts , including through integrated approaches for the implementation of waste management and prevention plans . through supporting the implementation of the plastics strategy , action can be taken to address the problem of marine litter in particular . ### promoting the circular economy requires a mentality shift in the way of designing , producing , consuming and disposing of materials and products , including plastics . the programme should contribute to the transition to a circular economy model through financial support targeting a variety of actors , in particular by applying , developing , and replicating best technology , practices and solutions tailored to specific local , regional or national contexts , including through integrated territorial approaches for the implementation of waste management and prevention plans . through supporting the implementation of the plastics strategy , action can be taken to address the problem of marine litter in particular .


### the improvement of governance on environmental , climate change and related clean energy transition matters requires involvement of civil society by raising public awareness , consumer engagement , and broadening of stakeholder involvement , including non - governmental organisations , in consultation on and implementation of related policies . ### the improvement of governance at all levels on environmental , climate change and related clean energy transition matters requires involvement of civil society by raising public awareness , involving national , regional and local authorities , consumer engagement , and broadening of stakeholder involvement , including non - governmental organisations , research and innovation partners and businesses in consultation on and implementation of related policies .


### the improvement of governance on environmental , climate change and related clean energy transition matters requires involvement of civil society by raising public awareness , consumer engagement , and broadening of stakeholder involvement , including non - governmental organisations , in consultation on and implementation of related policies . ### the improvement of governance on environmental , climate change and related clean energy transition matters requires involvement of civil society through more intensive communication and by raising public awareness , consumer engagement , and broadening of stakeholder involvement , including non - governmental organisations , in consultation on and implementation of related policies .


### the programme should prepare and support market players for the shift towards a clean , circular , energy - efficient , low - carbon and climate - resilient economy by testing new business opportunities , upgrading professional skills , facilitating consumers ' access to sustainable products and services , engaging and empowering influencers and testing novel methods to adapt the existing processes and business landscape . to support a broader market uptake of sustainable solutions , general public acceptance and consumer engagement should be promoted . ### the programme should prepare and support market players for the shift towards a clean , circular , energy - efficient , low - carbon and climate - resilient economy by testing new business opportunities , upgrading professional skills , facilitating consumers ' access to sustainable products and services , engaging and empowering influencers , testing novel methods to adapt the existing processes and business landscape and involving local and regional stakeholders in the implementation of circular economy objectives . to support a broader market uptake of sustainable solutions , general public acceptance and consumer engagement should be promoted .


### the programme should prepare and support market players for the shift towards a clean , circular , energy - efficient , low - carbon and climate - resilient economy by testing new business opportunities , upgrading professional skills , facilitating consumers ' access to sustainable products and services , engaging and empowering influencers and testing novel methods to adapt the existing processes and business landscape . to support a broader market uptake of sustainable solutions , general public acceptance and consumer engagement should be promoted . ### the programme should prepare and support market players for the shift towards a clean , circular , energy - efficient , low - carbon and climate - resilient economy by testing new business opportunities , upgrading professional skills , facilitating consumers ' access to sustainable products and services , engaging and empowering influencers and testing novel methods to adapt the existing processes and business landscape . to support a broader market uptake of sustainable solutions , general public acceptance and consumer engagement should be promoted , including through media campaigns .


### in support of the implementation of the programme , the commission should collaborate with the programme’s national contact points , organise seminars and workshops , publish lists of projects funded under the programme or undertake other activities to disseminate project results and to facilitate exchanges of experience , knowledge and best practices and the replication of project results across the union . such activities should in particular target member states with a low uptake of funds and should facilitate the communication and cooperation between project beneficiaries , applicants or stakeholders of completed and ongoing projects in the same field . ### in support of the implementation of the programme , the commission should collaborate with the programme’s national contact points , organise seminars and workshops , publish lists of projects funded under the programme or undertake other activities , such as media campaigns , in order to better disseminate project results and to facilitate exchanges of experience , knowledge and best practices and the replication of project results across the union . such activities should in particular target member states with a low uptake of funds and should facilitate the communication and cooperation between project beneficiaries , applicants or stakeholders of completed and ongoing projects in the same field .


### the types of financing and the methods of implementation should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver results , taking into account , in particular , the costs of controls , the administrative burden , and the expected risk of non - compliance . as regards grants , this should include consideration of the use of lump sums , flat rates and scales of unit costs . ### the types of financing and the methods of implementation should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver the best results , taking into account , in particular , the costs of controls , the administrative burden , and the expected risk of non - compliance . as regards grants , this should include consideration of the use of lump sums , flat rates and scales of unit costs .


### to support the development , implementation , monitoring and enforcement of the relevant union legislation and policy , including by improving governance through enhancing capacities of public and private actors and the involvement of civil society ; ### to support the development , implementation , monitoring and enforcement of the relevant union legislation and policy , including by improving governance at all levels , through enhancing capacities of public and private actors and the involvement of civil society ;


### to catalyse the large - scale deployment of successful technical and policy - related solutions for implementing the relevant union legislation and policy by replicating results , integrating related objectives into other policies and into public and private sector practices , mobilising investment and improving access to finance . ### to catalyse the large - scale deployment of successful technical and policy - related solutions for implementing the relevant union legislation and policy by replicating results and best practices , integrating related objectives into other policies and into public and private sector practices , mobilising investment and improving access to finance .


### information and communication , including awareness raising campaigns . financial resources allocated to communication activities pursuant to this regulation shall also cover corporate communication regarding the political priorities of the union , as well as regarding the implementation and transposition status of union environmental , climate or relevant clean energy legislation ; ### information and communication , including media campaigns such as awareness raising . financial resources allocated to communication activities pursuant to this regulation shall also cover corporate communication regarding the political priorities of the union , as well as regarding the implementation and transposition status of union environmental , climate or relevant clean energy legislation ;


### networking and best - practice platforms ; ### networking and best - practice platforms or projects ;


### core market principles should set out that electricity prices are to be determined through demand and supply . those prices should signal when electricity is needed , providing market - based incentives for investments into flexibility sources such as flexible generation , interconnection , demand response or storage . ### core market principles should set out that electricity prices are to be determined through demand and supply . while respecting principles of solidarity and fair distribution of costs , those prices should signal when electricity is needed , providing market - based incentives for investments into flexibility sources such as flexible generation , interconnection , demand response or storage .


### efficient decarbonisation of the electricity system via market integration requires systematically abolishing barriers to cross - border trade to overcome market fragmentation and to allow union energy customers to fully benefit from the advantages of integrated electricity markets and competition . ### efficient decarbonisation of the electricity system by 2050 via market integration requires systematically abolishing barriers to cross - border trade to overcome market fragmentation and to allow union energy customers to fully benefit from the advantages of integrated electricity markets and competition .


### a robust medium to long - term union level resource adequacy assessment should be carried out by the entso for electricity to provide an objective basis for the assessment of adequacy concerns . the resource adequacy concern that capacity mechanisms address should be based on the eu assessment . ### a robust medium to long - term union level resource adequacy assessment should be carried out by the entso for electricity to provide an objective basis for the assessment of adequacy concerns . that assessment should be complemented by more granular assessments at the levels of bidding zones , member states and regions . the resource adequacy concern that capacity mechanisms address should be based on those assessments .


### the medium to long - term resource adequacy assessment set out in this regulation has a different purpose than the seasonal outlooks as set out in article 9 [ regulation on risk preparedness as proposed by com 862 ] . medium - to long - term assessments are mainly used to assess the need for capacity mechanisms whereas seasonal outlooks are used to alert to risks that might occur in the following six months that are likely to result in a significant deterioration of the electricity supply situation . in addition , regional operational centres also carry out regional adequacy assessments as defined in european legislation on electricity transmission system operation . these are very short - term adequacy assessments used in the context of system operation . ### the medium to long - term resource adequacy assessment set out in this regulation has a different purpose than the seasonal outlooks as set out in article 9 [ regulation on risk preparedness as proposed by com 862 ] . medium - to long - term assessments are mainly used to assess the need for capacity mechanisms whereas seasonal outlooks are used to alert to risks that might occur in the following six months that are likely to result in a significant deterioration of the electricity supply situation . in addition , regional coordination centres also carry out regional adequacy assessments as defined in european legislation on electricity transmission system operation . these are very short - term adequacy assessments used in the context of system operation .


### regional operational centres should carry out functions where their regionalisation brings added value compared to functions performed at national level . the functions of regional operational centres should cover the functions carried out by regional security coordinators as well as additional system operation , market operation and risk preparedness functions . the functions carried out by regional operational centres should exclude real time operation of the electricity system . ### regional coordination centres should carry out functions where their regionalisation brings added value compared to functions performed at national level . the functions of regional coordination centres should cover the functions carried out by regional security coordinators as well as additional ones of regional importance . the functions carried out by regional coordination centres should exclude real time operation of the electricity system .


### regional operational centres should primarily act in the interest of system and market operation of the region over the interests of any single entity . hence , regional operational centres should be entrusted with decision - making powers to act and to direct actions to be taken by transmission system operators of the system operation region for certain functions and with an enhanced advisory role for the remaining functions . ### regional coordination centres should primarily act in the interest of system and market operation of the region over the interests of any single entity . hence , regional coordination centres should have enhanced advisory role through issuing recommendations .


### prices shall be formed based on demand and supply ; ### prices shall in general reflect demand and supply ;


### market rules shall support the decarbonisation of the economy by enabling the integration of electricity from renewable energy sources and providing incentives for energy efficiency ; ### market rules shall support the decarbonisation of the economy by providing incentives for the integration of electricity from renewable energy sources and for energy efficiency ;


### market rules shall deliver appropriate investment incentives for generation , storage , energy efficiency and demand response to meet market needs and thus ensure security of supply ; ### market rules shall aim to deliver appropriate investment incentives for generation , storage , energy efficiency and demand response to meet market needs and thus ensure security of supply ;


### market rules shall deliver appropriate investment incentives for generation , storage , energy efficiency and demand response to meet market needs and thus ensure security of supply ; ### market rules shall deliver appropriate investment incentives for generation , in particular long - term investments in low - carbon generation , storage , energy efficiency and demand response to meet market needs and thus ensure security of supply ;


### all market participants shall aim for system balance and shall be financially responsible for imbalances they cause in the system . they shall either be balance responsible parties or delegate their responsibility to a balance responsible party of their choice . ### all market participants shall aim for system balance and shall be financially responsible for imbalances they cause in the system , unless barriers to balancing markets participation exist . they shall either be balance responsible parties or delegate their responsibility to a balance responsible party of their choice .


### member states may provide for derogation from balance responsibility in respect of : ### member states shall provide for derogation from balance responsibility in respect of :


### all market participants shall have access to the balancing market , be it individually or through aggregation . balancing market rules and products shall respect the need to accommodate increasing shares of variable generation as well as increased demand responsiveness and the advent of new technologies . ### all market participants shall have access to the balancing market , be it individually or through aggregation . balancing market rules and products shall respect the need to accommodate increasing shares of variable generation as well as increased demand responsiveness and the advent of new technologies . balancing market rules shall be proportionate to allow for simplified access for local energy communities .


### regulatory authorities shall provide incentives to distribution system operators to procure services for the operation and development of their networks and integrate innovative solutions in the distribution systems . for that purpose regulatory authorities shall recognise as eligible and include all relevant costs in distribution tariffs and introduce performance targets in order to incentivise distribution system operators to raise efficiencies , including energy efficiency , in their networks . ### regulatory authorities shall provide incentives to distribution system operators to procure and develop services for the operation and development of their networks and integrate innovative solutions in the distribution systems . for that purpose regulatory authorities shall recognise as eligible and include all relevant costs in distribution tariffs and introduce performance targets in order to incentivise distribution system operators to raise efficiencies , including energy efficiency , in their networks .


### any revenues resulting from the allocation of interconnection capacity shall be used for the following purposes : ### revenues resulting from the allocation of interconnection capacity shall be used for the following purposes :


### maintaining or increasing interconnection capacities through network investments , in particular in new interconnectors . ### maintaining or increasing interconnection capacities through coordinated remedial actions and / or network investments .


### if the revenues cannot be efficiently used for the purposes set out in points or of the first subparagraph , they shall be placed on a separate internal account line for future use on these purposes . ### if the revenues cannot be efficiently used for the purposes set out in points or of the first subparagraph , as a residual option , they may be used , subject to approval by the regulatory authorities of the member states concerned , up to a maximum amount to be decided by those regulatory authorities , as income to be taken into account by the regulatory authorities when approving the methodology for calculating network tariffs and / or fixing network tariffs . regulatory authorities may only approve this option in cases where the transmission system operator takes a commitment decision to undertake all interconnector projects that have a positive net benefit and has a balance sheet that is sufficient to finance these investments . the rest of revenues shall be placed on a separate internal account line until such time as it can be spent on the purposes set out in points and / or of the first subparagraph . the regulatory authority shall inform the agency of the approval referred to in the second subparagraph .


### transmission system operators shall clearly establish beforehand how any congestion income will be used , and report on the actual use of that income . on an annual basis , and by 31 july each year , the national regulatory authorities shall publish a report setting out the amount of revenue collected for the 12 - month period ending on 30 june of the same year and how that revenue was used , including the specific projects the income has been used for or the amount placed on a separate account line , together with verification that that use complies with this regulation and the methodology developed pursuant to paragraph 3 . ### transmission system operators shall clearly establish beforehand how any congestion income will be used , and report on the actual use of that income . on an annual basis , and by 31 july each year , the national regulatory authorities shall publish a report setting out the amount of revenue collected for the 12 - month period ending on 30 june of the same year and how that revenue was used , including the specific projects the income has been used for the amount placed on a separate account line , or the amount that has been used when calculating network tariffs , together with verification that that use complies with this regulation . in such cases where some of the congestion revenues are used when calculating network tariffs , the report may set out the fulfilment by the tso of the commitment and balance sheet criteria pursuant to paragraph 2 .


### where the european resource adequacy assessment identifies a resource adequacy concern member states shall identify any regulatory distortions that caused or contributed to the emergence of the concern . ### if the national resource adequacy assessment differs from the european assessment , member states shall deliver a report explaining the differences stemming from national considerations .


### the proposals under paragraphs 2 and 5 and the results of the european resource adequacy assessment under paragraph 3 shall be subject to prior consultation and approval by the agency under the procedure set out in article 22 . ### the proposals under paragraphs 2 and 5 , the scenarios and assumptions on which they are based , and the results of the european resource adequacy assessment under paragraph 3 shall be subject to prior consultation and approval by the agency under the procedure set out in article 22 .


### when applying capacity mechanisms member states shall have a reliability standard in place indicating their desired level of security of supply in a transparent manner . ### member states shall have a reliability standard in place indicating their desired level of security of supply in a transparent manner .


### by [ op : twelve months after entry into force ] , all transmission system operators shall establish regional operational centres in accordance with the criteria set out in this chapter . regional operational centres shall be established in the territory of one of the member states of the region where it will operate . ### by [ op : twelve months after entry into force ] , all transmission system operators of a system operation region shall submit to the regulatory authorities of the region for a review a proposal for the establishment of regional coordination centres in accordance with the criteria set out in this chapter . that proposal shall include the following information : the member state where the regional coordination centre is to be located ; the organisational , financial and operational arrangements necessary to ensure the efficient , secure and reliable operation of the interconnected transmission system ; an implementation plan for the entry into operation of the regional coordination centres ; the statutes and rules of procedure of regional coordination centres ; a description of cooperative processes in accordance with article 35 ; a description of the arrangements concerning the liability of regional coordination centres in accordance with article 44 .


### adoption of decisions and recommendations ### adoption of recommendations


### regional operational centres shall develop a procedure for the adoption of decisions and recommendations . ### the transmission system operators of a system operation region shall develop a procedure for the adoption and revision of recommendations put forward by regional coordination centres in accordance with the criteria set out in paragraphs 2 and 3 .


### regional operational centres shall develop a procedure for the revision of decisions and recommendations . ### regional coordination centres and transmission system operators shall jointly develop a procedure for the revision of recommendations .


### regional operational centres shall adopt binding decisions addressed to the transmission system operators in respect of the functions referred to in points , , and of article 34 . transmission system operators shall implement the binding decisions issued by the regional operational centres except in cases when the safety of the system will be negatively affected . ### regional coordination centres shall adopt recommendations addressed to the transmission system operators in respect of the functions referred to in points , , and of article 34 . transmission system operators shall do their utmost to follow those recommendations .


### regional operational centres shall adopt recommendations addressed to the transmission system operators for the functions referred to in points to and to of article 34 . ### as regards the recommendations for the functions referred to in points and of article 34 , transmission system operators shall deviate only in cases where the safety of the system would be negatively affected .


### the decisions and recommendations issued and the outcome achieved ; ### the decisions by transmission system operators where they have deviated from the recommendations issued by the regional cooperation centres ;


### regional operational centres shall take the necessary steps to cover liability related to the execution of their tasks , in particular , where they adopt decisions binding on transmission system operators . the method employed to provide the cover shall take into account the legal status of the regional operational centre and the level of commercial insurance cover available . ### the transmission system operators of the system operation region shall include arrangements to cover liability related to the execution of its tasks in the proposal for the establishment of regional coordination centres in accordance with article 32 . the method employed to provide the cover shall take into account the legal status of the regional coordination centre and the level of commercial insurance cover available .


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


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


### establishment of the eu dso entity for electricity ### establishment of the eu dso entity


### while preparing possible network codes pursuant to article 55 , the eu dso entity shall conduct an extensive consultation process , at an early stage and in an open and transparent manner , involving all relevant stakeholders , and , in particular , the organisations representing all stakeholders , in accordance with the rules of procedure referred to in article 50 . that consultation shall also involve national regulatory authorities and other national authorities , supply and generation undertakings , system users including customers , distribution system operators , including relevant industry associations , technical bodies and stakeholder platforms . it shall aim at identifying the views and proposals of all relevant parties during the decision - making process . ### while preparing possible network codes pursuant to article 55 , the eu dso entity shall conduct an extensive consultation process , at an early stage and in an open and transparent manner , involving all relevant stakeholders , and , in particular , the organisations representing all stakeholders , in accordance with the rules of procedure referred to in article 50 . that consultation shall also involve national regulatory authorities and other national authorities , supply and generation undertakings , system users including customers , technical bodies and stakeholder platforms . it shall aim at identifying the views and proposals of all relevant parties during the decision - making process .


### the commission may adopt binding guidelines in the areas listed below . ### the commission may adopt guidelines in the areas listed below .


### proposal for a regulation of the european parliament and of the council on disclosures relating to sustainable investments and sustainability risks and amending directive 2016 / 2341 ### proposal for a regulation of the european parliament and of the council on disclosures relating to the sustainability impact and risks of investments and amending directive 2016 / 2341 and directive 2013 / 34 / eu


### a common objective of directive 2009 / 65 / ec of the european parliament and of the council32 , directive 2009 / 138 / ec of the european parliament and of the council33 , directive 2011 / 61 / eu of the european parliament and of the council34 , directive 2014 / 65 / eu of the european parliament and of the council35 , directive 2016 / 97 of the european parliament and of the council36 , directive 2016 / 2341 of the european parliament and of the council37 , regulation no 345 / 2013 of the european parliament and of the council38 and regulation no 346 / 2013 of the european parliament and of the council39 is to facilitate the taking - up and pursuit of the activities of undertakings for collective investment in transferable securities , alternative investment fund managers , insurance undertakings , investment firms , insurance intermediaries , institutions for occupational retirement provision , managers of qualifying venture capital funds , and managers of qualifying social entrepreneurship funds . those directives and regulations ensure more uniform protection of end - investors and make it easier for them to benefit from a wide range of financial products and services , and at the same time provide for rules that enable investors to make informed investment decisions . while those objectives have been largely achieved , disclosures to end - investors on the integration of sustainability risks and sustainable investment targets in investment decision - making by ucits management companies , aifms , insurance undertakings , investment firms which provide portfolio management , iorps , pension providers , euveca managers and eusef managers and disclosures to end - investors on the integration of sustainability risks in advisory processes by insurance intermediaries which provide insurance advice with regard to insurance - based investment products and investment firms which provide investment advice are insufficiently developed because such disclosures are not yet subject to harmonised requirements . __________________ 32 directive 2009 / 65 / ec of the european parliament and of the council of 13 july 2009 on the coordination of laws , regulations and administrative provisions relating to undertakings for collective investment in transferable securities . 33 directive 2009 / 138 / ec of the european parliament and of the council of 25 november 2009 on the taking - up and pursuit of the business of insurance and reinsurance . 34 directive 2011 / 61 / eu of the european parliament and of the council of 8 june 2011 on alternative investment fund managers . 35 directive 2014 / 65 / eu of the european parliament and of the council of 15 may 2014 on markets in financial instruments and amending directive 2002 / 92 / ec and directive 2011 / 61 / eu . 36 directive 2016 / 97 of the european parliament and of the council of 20 january 2016 on insurance distribution . 37 directive 2016 / 2341 of the european parliament and of the council of 14 december 2016 on the activities and supervision of institutions for occupational retirement provision . 38 regulation no 345 / 2013 of the european parliament and of the council of 17 april 2013 on european venture capital funds . 39 regulation no 346 / 2013 of the european parliament and of the council of 17 april 2013 on european social entrepreneurship funds . ### a common objective of directive 2009 / 65 / ec of the european parliament and of the council32 , directive 2009 / 138 / ec of the european parliament and of the council33 , directive 2011 / 61 / eu of the european parliament and of the council34 , directive 2014 / 65 / eu of the european parliament and of the council35 , directive 2016 / 97 of the european parliament and of the council36 , directive 2016 / 2341 of the european parliament and of the council37 , regulation no 345 / 2013 of the european parliament and of the council38 and regulation no 346 / 2013 of the european parliament and of the council39 is to facilitate the taking - up and pursuit of the activities of undertakings for collective investment in transferable securities , alternative investment fund managers , insurance undertakings , investment firms , insurance intermediaries , institutions for occupational retirement provision , managers of qualifying venture capital funds , and managers of qualifying social entrepreneurship funds . those directives and regulations ensure more uniform protection of end - investors and make it easier for them to benefit from a wide range of financial products and services , and at the same time provide for rules that enable investors to make informed investment decisions . while those objectives have been largely achieved , disclosures on the sustainability impact and the integration of sustainability risks and sustainable investment targets in investment decision - making by ucits management companies , aifms , insurance undertakings , investment firms which provide portfolio management , iorps , pension providers , euveca managers and eusef managers and disclosures to end - investors on the integration of sustainability risks in advisory processes by insurance intermediaries which provide insurance advice with regard to insurance - based investment products and investment firms which provide investment advice are insufficiently developed because such disclosures are not yet subject to harmonised indicators and requirements . in order to fulfil their obligations of due diligence concerning the sustainability impact and risks , financial market participants themselves need reliable , comparable and harmonised disclosure of information by investee companies . directive 2013 / 34 / eu lays out obligations relating to accounting and reporting requirements of companies , hence these directives should be updated to include integrated , audited reporting of sustainability risks and impact in order to respond to the increasing need to integrate sustainability considerations in strategy and risk management of companies . __________________ 32 directive 2009 / 65 / ec of the european parliament and of the council of 13 july 2009 on the coordination of laws , regulations and administrative provisions relating to undertakings for collective investment in transferable securities . 33 directive 2009 / 138 / ec of the european parliament and of the council of 25 november 2009 on the taking - up and pursuit of the business of insurance and reinsurance . 34 directive 2011 / 61 / eu of the european parliament and of the council of 8 june 2011 on alternative investment fund managers . 35 directive 2014 / 65 / eu of the european parliament and of the council of 15 may 2014 on markets in financial instruments and amending directive 2002 / 92 / ec and directive 2011 / 61 / eu . 36 directive 2016 / 97 of the european parliament and of the council of 20 january 2016 on insurance distribution . 37 directive 2016 / 2341 of the european parliament and of the council of 14 december 2016 on the activities and supervision of institutions for occupational retirement provision . 38 regulation no 345 / 2013 of the european parliament and of the council of 17 april 2013 on european venture capital funds . 39 regulation no 346 / 2013 of the european parliament and of the council of 17 april 2013 on european social entrepreneurship funds .


### in the absence of harmonised union rules on sustainability - related disclosures to end - investors , it is likely that diverging measures will continue to be adopted at national level and different approaches in different financial services sectors might persist . such divergent measures and approaches would continue to cause significant distortions of competition resulting from significant differences in disclosure standards . in addition , a parallel development of market - based practices , based on commercially - driven priorities that produce divergent results currently causes further market fragmentation and might even further exacerbate the functioning of the internal market in the future . divergent disclosure standards and market - based practices make it very difficult to compare between different financial products and services and create an uneven playing field between these products and services and between distribution channels , and erect additional barriers to the internal market . such divergences can also be confusing for end - investors and can distort their investment decisions . in ensuring compliance with the paris climate agreement , member states are likely to adopt divergent national measures which could create obstacles to the smooth functioning of the internal market and be detrimental to financial market participants and financial advisors . in addition , the lack of harmonised rules relating to transparency makes it difficult for end - investors to effectively compare different financial products and services in different member states as to their environmental , social and governance risks and sustainable investment targets . it is therefore necessary to address existing to the functioning of the internal market and to prevent likely future obstacles . ### in the absence of harmonised union rules on sustainability - related disclosures by issuers and investors , it is likely that diverging measures will continue to be adopted at national level and different approaches in different financial services sectors might persist . such divergent measures and approaches would continue to cause significant distortions of competition resulting from significant differences in disclosure standards . in addition , a parallel development of market - based practices , based on commercially - driven priorities that produce divergent results currently causes further market fragmentation and might even further exacerbate the functioning of the internal market in the future . divergent disclosure standards and market - based practices and a lack of harmonised set of indicators make it very difficult to compare between different financial products and services and create an uneven playing field between these products and services and between distribution channels , and erect additional barriers to the internal market . such divergences can also be confusing for end - investors and can distort their investment decisions . in ensuring compliance with the paris climate agreement , member states are likely to adopt divergent national measures which could create obstacles to the smooth functioning of the internal market and be detrimental to financial market participants and financial advisors . in addition , the lack of harmonised rules and indicators relating to transparency makes it difficult for investors to effectively compare underlying investee companies and different financial products and services in different member states as to their environmental , social and governance impact and risks and sustainable investment targets . it is therefore necessary to address existing to the functioning of the internal market and to prevent likely future obstacles .


### to ensure a coherent application of this regulation and that the disclosure obligations laid down in this regulation are clearly and consistently applied by financial market participants , it is necessary to lay down a harmonised definition of ‘ sustainable investments’ . ### to ensure a coherent application of this regulation and that the disclosure obligations laid down in this regulation are clearly and consistently applied by financial market participants , it is necessary to lay down a harmonised definition of ‘ sustainable investments’ , and ' sustainability risks ' , based on a harmonised set of indicators . whilst focusing on material risks , that definition should be forward - looking as to take due consideration of emerging risks .


### since sustainability benchmarks serve as standard points of reference against which sustainable investments are measured , end - investors should be informed by means of pre - contractual disclosures about the appropriateness of the designated index , namely the alignment of that index with the sustainable investment target . financial market participants should also disclose the reasons for different weighting and constituents of the designated index compared to a broad market index . to further foster transparency , financial market participants should also indicate where the methodology used for the calculation of the designated index and the broad market index is to be found , so that end - investors have the necessary information on how the underlying assets of the indexes were selected and weighted , which assets were excluded and for what reason , how sustainability - related impacts of the underlying assets were measured , or which data sources were used . such disclosures should allow for effective comparison and contribute to develop a correct perception of sustainably - friendly investments . where no index has been designated as a reference benchmark financial market participants should explain how the sustainable investment target is reached . ### since sustainability benchmarks serve as standard points of reference against which sustainable investments are measured , end - investors should be informed by means of pre - contractual disclosures about the appropriateness of the designated index , namely the alignment of that index with the sustainable investment target . financial market participants should also disclose the reasons for different weighting and constituents of the designated index compared to a broad market index . to further foster transparency , financial market participants should also indicate where the methodology used for the calculation of the designated index and the broad market index is to be found , so that end - investors have the necessary information on how the underlying assets of the indexes were selected and weighted , which assets were excluded and for what reason , how sustainability - related impacts of the underlying assets were measured , or which data sources were used . such disclosures , based on a harmonised set of indicators , should allow for effective comparison and contribute to develop a correct perception of sustainably - friendly investments . where no index has been designated as a reference benchmark financial market participants should explain how the sustainable investment target is reached .


### to enhance transparency and inform end - investors , access to information on how sustainability risks are integrated by financial market participants in the investment decision making processes and by financial advisors in advisory processes should be regulated by requiring those entities to maintain that information on their websites . ### to enhance transparency and comparability , inform investors , access to information on how the sustainability impact is taken into account and how sustainability risks are integrated by financial market participants in the investment decision making processes and by financial advisors in advisory processes should be regulated by requiring those entities to maintain that information on their websites .


### the current disclosure requirements set out by union legislation do not provide that all the information necessary to properly inform end - investors about the sustainability - related impact of their investments must be disclosed . therefore , it is appropriate to set out more specific disclosure requirements with regard to sustainable investments . for instance , the overall sustainability - related impact of financial products should be reported regularly by means of indicators relevant for the chosen sustainable investment target . where an appropriate index has been designated as reference benchmark that information should also be provided for the designated index and to a broad market index to allow for comparison . information on the constituents of the designated index and of the broad market index along with their weightings should also be disclosed , to provide further information on how the sustainable investments targets are achieved . where eusef managers make available information on the positive social impact targeted by a given fund , the overall social outcome achieved and the related methods used in accordance with regulation no 346 / 2013 , they may , where appropriate , use this information for the purposes of the disclosures under this regulation . ### the current disclosure requirements set out by union legislation do not provide that all the information necessary to properly inform end - investors about the sustainability - related impact of their investments must be disclosed . therefore , it is appropriate to set out more specific disclosure requirements with regard to sustainable investments . for instance , the overall sustainability - related impact of financial products should be reported regularly by means of a harmonised set of indicators , while relevant for the chosen sustainable investment target . where an appropriate index has been designated as reference benchmark that information should also be provided for the designated index and to a broad market index to allow for comparison . information on the constituents of the designated index and of the broad market index along with their weightings should also be disclosed , to provide further information on how the sustainable investments targets are achieved . where eusef managers make available information on the positive social impact targeted by a given fund , the overall social outcome achieved and the related methods used in accordance with regulation no 346 / 2013 , they may , where appropriate , use this information for the purposes of the disclosures under this regulation .