### the scope of this directive should be confined to the management of collective investment undertakings which raise capital from a number of investors with a view to investing it in accordance with a defined investment policy on the principle of risk - spreading for the benefit of those investors . this directive should not apply to the management of pension funds or managers of non - pooled investments such as endowments , sovereign wealth funds or assets hold on own account by credit institutions , insurance or reinsurance undertakings . this directive should neither apply to actively managed investments in the form of securities , such as certificates , managed futures , or index - linked bonds . it should , however , cover managers of all collective investment undertakings which are not required to be authorised as ucits . investment firms authorised under directive 2004 / 39 / ec on markets in financial instruments should not be required to obtain an authorisation under this directive in order to provide investment services in respect of aif . investment firms can however only provide investment services in respect of aif , if and to the extent the units or shares thereof can be marketed in accordance with this directive . ### the scope of this directive should be confined to the management of collective investment undertakings which raise capital from a number of investors with a view to investing it in accordance with a defined investment policy for the benefit of those investors . this directive should not apply to the managers of non - pooled investments such as endowments , sovereign wealth funds , central banks or assets held on own account by credit institutions , pension funds , or insurance or reinsurance undertakings . nor should this directive apply to managers insofar as they manage aif whose only investors are their parent undertakings , their subsidiaries or other subsidiaries of their parent undertaking and where those investors are not themselves aif . in order to benefit from the exemptions provided for in this directive , the aifm concerned should comply with the conditions to which those exemptions are subject on a continuous basis . this directive should , however , cover managers of all collective investment undertakings which are not required to be authorised as ucits . investment firms authorised under directive 2004 / 39 / ec on markets in financial instruments should not be required to obtain an authorisation under this directive in order to provide investment services in respect of aif . investment firms can however only provide investment services in respect of aif , if and to the extent the units or shares thereof can be marketed in accordance with this directive .


### ‘ manager of alternative investment funds ‘ or aifm means any legal or natural person whose regular business is to manage one or several aif ; ### ‘ manager of alternative investment funds’ or aifm means any legal person that manages one or several aif and is responsible for the compliance with the requirements of this directive and which , depending on the legal form of the aif , can be either the aif itself or an external entity ;


### home member states shall ensure that all information received under article 24 , aggregated in respect of all aifm that it supervises , are made available to other competent authorities through the procedure set out in article 46 on supervisory co - operation . it shall , without delay , also provide information through this mechanism , and bilaterally to other member states directly concerned , if an aifm under its responsibility could potentially constitute an important source of counterparty risk to a credit institution or other systemically relevant institution in other member states . ### the competent authorities of the home member state of the aifm shall ensure that all information gathered under article 21 in respect of all aifm that they supervise is promptly conveyed to the esma and is made available to the competent authorities of the other member states and to the esrb through the procedures set out in article 46 on supervisory co - operation . they shall , without delay , also provide information through this mechanism to the esma and the esrb , and bilaterally to the competent authorities of other member states directly concerned , if the activities of an aifm under their responsibility could potentially constitute an important source of counterparty risk to a credit institution or other systemically relevant institution in those other member states , or could affect the sound functioning of financial markets .


### member states shall ensure that no aifm covered by this directive provides management services to any aif or markets shares or units thereof without prior authorisation . entities which are neither authorised in accordance with this directive nor , in case of aifm not covered by this directive , in accordance with the national law of a member state , shall not be allowed to provide management services to aif or market units or shares thereof within the community . ### member states shall ensure that no aifm covered by this directive provides management services to any aif without prior authorisation .


### where , following an acquisition of 30 % or more of the voting rights of an issuer , the shares of that issuer are no longer admitted to trading on a regulated market , it shall nevertheless continue to comply with its obligations under directive 2004 / 109 / ec for two years from the date of withdrawal from the regulated market . ### where , following an acquisition of controlling influence of an issuer , the shares of that issuer are no longer admitted to trading on a regulated market , it shall nevertheless continue to comply with its obligations under directive 2004 / 109 / ec for one year from the date of withdrawal from the regulated market .


### the scope of this directive should be confined to the management of collective investment undertakings which raise capital from a number of investors with a view to investing it in accordance with a defined investment policy on the principle of risk - spreading for the benefit of those investors . this directive should not apply to the management of pension funds or managers of non - pooled investments such as endowments , sovereign wealth funds or assets hold on own account by credit institutions , insurance or reinsurance undertakings . this directive should neither apply to actively managed investments in the form of securities , such as certificates , managed futures , or index - linked bonds . it should , however , cover managers of all collective investment undertakings which are not required to be authorised as ucits . investment firms authorised under directive 2004 / 39 / ec on markets in financial instruments should not be required to obtain an authorisation under this directive in order to provide investment services in respect of aif . investment firms can however only provide investment services in respect of aif , if and to the extent the units or shares thereof can be marketed in accordance with this directive . ### the scope of this directive should be confined to the management of collective investment undertakings which raise capital from a number of investors with a view to investing it in accordance with a defined investment policy on the principle of risk - spreading for the benefit of those investors . it should cover managers of all such collective investment undertakings which are not required to be authorised as ucits . this directive should not apply to the management of pension funds or managers of non - pooled investments such as endowments , sovereign wealth funds or assets held on own account by credit institutions , insurance or reinsurance undertakings . this directive should neither apply to actively managed investments in the form of securities , such as certificates , managed futures , or index - linked bonds . nor , for the purposes of this directive , should an undertaking which principally acts as a holding entity for a group of subsidiary undertakings , and which owns strategic stakes in undertakings with a view to long - term holding rather than for the purpose of generating returns through divestment within a defined timeframe , be regarded as a collective investment undertaking . investment firms authorised under directive 2004 / 39 / ec on markets in financial instruments should not be required to obtain an authorisation under this directive in order to provide investment services in respect of aif . investment firms can however only provide investment services in respect of aif , if and to the extent the units or shares thereof can be marketed in accordance with this directive .


### it is necessary to ensure that aifm operate subject to robust governance controls . aifm should be managed and organised so as to minimise conflicts of interest . recent developments underline the crucial need to separate asset safe - keeping and management functions , and segregate investor assets from those of the manager . to this end , the aifm has to appoint a depositary and entrust it with the booking of investor money on a segregated account , the safe - keeping of financial instruments and the verification of whether the aif or the aifm on behalf of the aif has obtained ownership of all other assets . ### it is necessary to ensure that aifm operate subject to robust governance controls . aifm should be managed and organised so as to minimise conflicts of interest . recent developments underline the crucial need to separate asset safe - keeping and management functions , and segregate investor assets from those of the manager . to this end , the aifm has to appoint a depositary and entrust it with verifying that aif cash is placed on deposit appropriately with one or more approved credit institutions , the safe - keeping of financial instruments and entitlements in them and verifying the maintenance of records demonstrating the nature and means of ownership and location of assets of the aif .


### aifm shall , before implementation , notify the competent authorities of the home member state of any change regarding the information provided in their initial application that may substantially affect the conditions under which the authorisation has been granted , in particular changes of the investment strategy and policy of any aif managed by it , of the aif rules or instruments of incorporation and the identity of any further aif the aifm intends to manage . the competent authorities shall , within a month of receipt of that notification , either approve , or impose restrictions , or reject those changes . ### aifm shall , before implementation , notify the competent authorities of the home member state of any material changes to the conditions for initial authorisation or registration , in particular changes in the programme of activity of the aifm or the investment strategy and policy of any aif managed by it . the aifm shall inform the competent authority of any change concerning the persons effectively conducting the business of the aifm . the competent authorities shall , within a month of receipt of that notification , approve , impose restrictions or reject those changes . the competent authorities shall , where duly justified , reject changes regarding the investment strategy and policy of an aif or changes regarding rules or instruments of incorporation if those have been agreed upon by the investors .


### that the legislation on prudential regulation and ongoing supervision of aifm in a third country is equivalent to this directive and effectively enforced ; ### that the legislation on prudential regulation and ongoing supervision of aifm in a third country is reasonably equivalent to this directive with respect to aifm and aif of a given size , type or complexity and effectively enforced ;


### in order to take account of future changes to the laws of the member states and in the legislation of the union concerning company types , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of updating the lists of undertakings contained in annexes i and ii . the use of delegated acts is also necessary to adapt the undertaking size criteria , as with the passage of time inflation will erode their real value . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . in order to ensure a relevant and appropriate level of disclosure of payments to governments by the extractive industry and loggers of primary forests and to ensure uniform application of this directive , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of the specification of the concept of materiality of payments . ### the use of delegated acts is necessary to adapt the undertaking size criteria , as with the passage of time inflation will erode their real value . the commission should therefore be empowered to adopt delegated acts in accordance with article 290 of the treaty in order to adjust the undertaking size criteria to the extent necessary to offset the effects of inflation . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . in order to ensure that payments to governments by the extractive industry and loggers of primary forests need not be reported if equivalent reporting requirements are observed , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of establishing which voluntary or mandatory reporting requirements should be considered equivalent to the reporting requirements laid down in this directive . such voluntary reporting should include eiti reporting .


### an opinion concerning the consistency of the management report with the annual financial statements for the same financial year . ### the opinion referred to in the second subparagraph of article 34 .


### where payments in kind are made to a government , they shall be reported in value or in volume . where they are reported in terms of value , supporting notes shall be provided to explain how their value has been determined . ### where payments in kind are made to a government , they shall be reported in value and in volume . where they are reported in terms of value , supporting notes shall be provided to explain how their value has been determined .


### in order to provide for enhanced transparency of payments made to governments , large undertakings and public interest entities which are active in the extractive industry or logging of primary forestsshould disclose in a separate report on an annual basis material payments made to governments in the countries in which they operate . such undertakings are active in countries rich in natural resources , in particular minerals , oil , natural gas as well as primary forests . the report should include types of payments comparable to those disclosed by an undertaking participating in the extractive industries transparency initiative . the initiative is also complementary to the eu flegt action plan and the timber regulationwhich require traders of timber products to exercise due diligence in order to prevent illegal wood from entering into the eu market . ### in order to provide for enhanced transparency of payments made to governments , large undertakings and public interest entities which are active in the extractive industry or logging of primary forests should disclose in a separate report on an annual basis payments made to governments in the countries in which they operate . such undertakings are active in countries rich in natural resources , in particular minerals , oil , natural gas as well as primary forests . the report should include types of payments comparable to those disclosed by an undertaking participating in the extractive industries transparency initiative . the initiative is also complementary to the eu flegt action plan and the timber regulation which require traders of timber products to exercise due diligence in order to prevent illegal wood from entering into the eu market .


### member states shall require large undertakings and all public interest entities active in the extractive industry or the logging of primary forests to prepare and make public a report on payments made to governments on an annual basis . ### member states shall require large undertakings and all public interest entities active in the extractive industry or the logging of primary forests to prepare and make public a report on payments , including payments in kind , made to governments on an annual basis .


### where those payments have been attributed to a specific project the amount per type of payment , including payments in kind , made for each such project within a financial year , and the total amount of payments for each such project . ### where those payments have been attributed to a specific project the amount per type and the total amount of payment made for each such project within a financial year .


### a provision shall represent the best estimate of the expenses likely to be incurred , or in the case of a liability , the amount required to settle it at the balance sheet date . ### provisions shall be measured at the reasonable amount calculated on an objective basis to settle the amount payable , or in the case of a liability , at the amount required to settle it at the balance sheet date .


### the reports should serve to facilitate governments of resource - rich countries in implementing the eiti principles and criteria and account to their citizens for payments such governments receive from undertakings active in the extractive industry or loggers of primary forests operating within their jurisdiction . the report should incorporate disclosures on a country and project basis , where a project is considered as the lowest level of operational reporting unit at which the undertaking prepares regular internal management reports , such as a concession , geographical basin , etc and where payments have been attributed to such projects . in the light of the overall objective of promoting good governance in these countries , the materiality of payments to be reported should be assessed in relation to the recipient government . various criteria on materiality could be envisaged such as payments of an absolute amount , or a percentage threshold and these can be defined through a delegated act . the reporting regime should be subject to a review and a report by the commission within five years of the entry into force of the directive . the review should consider the effectiveness of the regime and take into account international developments including issues of competitiveness and energy security . the review should also take into account the experience of preparers and users of the payments information and consider whether it would be appropriate to include additional payment information such as effective tax rates and recipient details , such as bank account information . ### the reports should serve to facilitate governments of resource - rich countries in implementing the eiti principles and criteria and account to their citizens for payments such governments receive from undertakings operating within their jurisdiction . in the case of undertakings active in the extractive industry or loggers of primary forests the report should incorporate disclosures on a country and project basis , where a project is considered as contract , licence , lease or other legal agreement under which an undertaking operates , and from which its specific liabilities to government arise and where payments have been attributed to such projects . in the light of the overall objective of promoting good governance in these countries , payments to each government should be reported where the total amount of payments , including payments in kind , made within a financial year , exceeds eur 30 000 . the reporting regime should be subject to a review and a report by the commission within three years of the entry into force of the directive . the review should consider the effectiveness of the regime and take into account international developments including issues of competitiveness and energy security . the review should also take into account the experience of preparers and users of the information and consider whether it would be appropriate to include additional information such as recipient details of payment recipients , such as bank account information .


### small , medium - sized and large undertakings should be defined and distinguished by reference to total assets , turnover and the average number of employees , as these items typically provide objective evidence as to the size of an enterprise . ### micro , small , medium - sized and large undertakings should be defined and distinguished by reference to total assets , turnover and the average number of employees , as these items typically provide objective evidence as to the size of an enterprise .


### in order to adjust for the effects of inflation , the commission shall examine periodically and , where necessary , amend , by means of delegated acts in accordance with article 42 , the definitions referred to in paragraphs 1 to 5 of this article , taking into account measures of inflation as published in the official journal of the european union . ### in order to adjust for the effects of inflation , the commission shall examine periodically and , where necessary , amend , by means of delegated acts in accordance with article 42 , the definitions referred to in paragraphs - 1 to 5 of this article , taking into account measures of inflation as published in the official journal of the european union .


### the commission shall review and report on the implementation and effectiveness of this chapter , in particular as regards the scope of the reporting obligations and the modalities of the reporting on a project basis . the review should also take into account international developments and consider the effects on competitiveness and security of energy supply . it should be completed at the latest five years after the date of entry into force of this directive . the report shall be submitted to the european parliament and the council , together with a legislative proposal , if appropriate . ### the commission shall review and report on the implementation and effectiveness of this chapter , in particular as regards the costs and benefits the transparency requirements involve and the scope of the reporting requirements , including the modalities of the reporting on a project basis . the review should also take into account international developments and consider the effects on competitiveness and on the security of energy supply for european industry . it should be completed at the latest three years after the date of entry into force of this directive . the report shall be submitted to the european parliament and the council , accompanied by a legislative proposal , if appropriate .


### ‘ production cost’ means the purchase price of raw materials , consumables and other costs directly attributable to the item in question . a reasonable proportion of other costs indirectly attributable to the item in question may be included to the extent that they relate to the period of production . distribution costs shall not be included ; ### ‘ production cost’ means the purchase price of raw materials , consumables and other costs directly attributable to the item in question . a reasonable proportion of other costs indirectly attributable to the item in question shall be included to the extent that they relate to the period of production . distribution costs shall not be included ;


### member states shall require large undertakings and all public interest entities active in the extractive industry or the logging of primary forests to prepare and make public a report on payments made to governments on an annual basis . ### member states shall require large undertakings , including joint - venture undertakings , and all public interest entities to prepare and make public a report on payments , including payments in kind , made to governments on an annual basis as part of the annual report of financial statements . in this report , the undertaking shall also publish additional financial information regarding their activities in third countries . in particular , the report shall include activities of subsidiaries , associates , joint ventures , permanent establishments and other trading arrangements to the extent that they are consolidated in the annual financial statements of the undertaking or entity in question . the report shall be part of the notes to the financial statements .


### member states shall require large undertakings and all public interest entities active in the extractive industry or the logging of primary forests to prepare and make public a report on payments made to governments on an annual basis . ### member states shall require large undertakings and all public interest entities active in the extractive industry or the logging of primary forests to prepare and make public a report on payments , including payments in kind , made to governments in respect of the extractive industry and forestry activities defined in article 36 , on an annual basis .


### the commission shall review and report on the implementation and effectiveness of this chapter , in particular as regards the scope of the reporting obligations and the modalities of the reporting on a project basis . the review should also take into account international developments and consider the effects on competitiveness and security of energy supply . it should be completed at the latest five years after the date of entry into force of this directive . the report shall be submitted to the european parliament and the council , together with a legislative proposal , if appropriate . ### the commission shall review and report on the implementation and effectiveness of this chapter , in particular as regards the scope of the reporting obligations and the modalities of the reporting on a project basis . the review should also take into account international developments , progress towards global standards in this area and report on the impact of this legislation on third countries , in particular in achieving the objectives of enhanced transparency of payments to governments . the review should also consider the effects on competitiveness and security of energy supply . it should be completed at the latest four years after the date of entry into force of this directive . the report shall be submitted to the european parliament and the council , together with a legislative proposal , if appropriate .


### in order to take account of future changes to the laws of the member states and in the legislation of the union concerning company types , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of updating the lists of undertakings contained in annexes i and ii . the use of delegated acts is also necessary to adapt the undertaking size criteria , as with the passage of time inflation will erode their real value . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . in order to ensure a relevant and appropriate level of disclosure of payments to governments by the extractive industry and loggers of primary forests and to ensure uniform application of this directive , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of the specification of the concept of materiality of payments . ### in order to take account of future changes to the laws of the member states and in the legislation of the union concerning company types , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of adapting the undertaking size criteria , as with the passage of time inflation will erode their real value . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level .


### in order to provide for enhanced transparency of payments made to governments , large undertakings and public interest entities which are active in the extractive industry or logging of primary forests should disclose in a separate report on an annual basis material payments made to governments in the countries in which they operate . such undertakings are active in countries rich in natural resources , in particular minerals , oil , natural gas as well as primary forests . the report should include types of payments comparable to those disclosed by an undertaking participating in the extractive industries transparency initiative . the initiative is also complementary to the eu flegt action plan and the timber regulation which require traders of timber products to exercise due diligence in order to prevent illegal wood from entering into the eu market . ### in order to provide for enhanced transparency of payments made to governments , large undertakings and public interest entities which are active in the extractive industry or logging of primary forests should disclose in a separate report on an annual basis payments made to governments in the countries in which they operate . such undertakings are active in countries rich in natural resources , in particular minerals , oil , natural gas as well as primary forests . the report should include types of payments comparable to those disclosed by an undertaking participating in the extractive industries transparency initiative . the initiative is also complementary to the eu flegt action plan and the timber regulation which require traders of timber products to exercise due diligence in order to prevent illegal wood from entering into the eu market .


### the total amount of payments , including payments in kind , made to each government within a financial year ; ### the amount per type and the total amount of payments made to each government within a financial year ;


### the commission shall review and report on the implementation and effectiveness of this chapter , in particular as regards the scope of the reporting obligations and the modalities of the reporting on a project basis . the review should also take into account international developments and consider the effects on competitiveness and security of energy supply . it should be completed at the latest five years after the date of entry into force of this directive . the report shall be submitted to the european parliament and the council , together with a legislative proposal , if appropriate . ### the commission shall review and report on the implementation and effectiveness of this chapter , in particular as regards the scope of the reporting obligations , the modalities of the reporting on a project basis and the impact of national criminal legislation prohibiting disclosure of payments . the review should also take into account international developments and consider the effects on competitiveness and security of energy supply . it should be completed at the latest five years after the date of entry into force of this directive . the report shall be submitted to the european parliament and the council , together with a legislative proposal , if appropriate .


### the report shall specify the following when material to the recipient government : ### the report referred to in article 37 shall specify the following :


### recognition , measurement , presentation , and disclosure in annual financial statements shall have regard to the materiality of the relevant items . ### presentation and disclosure in annual financial statements shall have regard to the materiality of the relevant items .


### a member state shall require any large undertaking or any public interest entity active in the extractive industry or the logging of primary forests and governed by its national law to draw up a consolidated report on payments to governments in accordance with articles 37 and 38 if that parent undertaking is under the obligation to prepare consolidated financial statements as laid down in article 23 to 23 of this directive . ### a member state shall require any large undertaking or any public interest entity active in the extractive industry or the logging of primary forests and governed by its national law to draw up a consolidated report on payments to governments by such undertaking or public - interest entity and / or by subsidiaries or entities controlled by such undertaking or public - interest entity in accordance with articles 37 and 38 if that parent undertaking is under the obligation to prepare consolidated financial statements as laid down in article 23 to 23 of this directive .


### member states may exempt medium - sized undertakings from the obligation set out in the third subparagraph of paragraph 1 in so far as it relates to non - financial information . ### member states may exempt small and medium - sized undertakings from the obligation set out in the third subparagraph of paragraph 1 in so far as it relates to non - financial information .


### in order to take account of future changes to the laws of the member states and in the legislation of the union concerning company types , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of updating the lists of undertakings contained in annexes i and ii . the use of delegated acts is also necessary to adapt the undertaking size criteria , as with the passage of time inflation will erode their real value . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . in order to ensure a relevant and appropriate level of disclosure of payments to governments by the extractive industry and loggers of primary forests and to ensure uniform application of this directive , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of the specification of the concept of materiality of payments . ### the use of delegated acts is necessary to adapt the undertaking size criteria , as with the passage of time inflation will erode their real value . the commission should therefore be empowered to adopt delegated acts in accordance with article 290 of the treaty in order to adjust the undertaking size criteria to the extent necessary to offset the effects of inflation . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . in order to ensure that payments to governments by the extractive industry and loggers of primary forests need not be reported if equivalent reporting requirements are observed , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of establishing which voluntary or mandatory reporting requirements should be considered equivalent to the reporting requirements laid down in this directive . such voluntary reporting should include eiti reporting .


### items in the profit and loss account and balance sheet shall be presented having regard to the substance of the reported transaction or arrangement ; ### items in the profit and loss account and balance sheet shall be recognised and presented having regard to not only the legal form but also the substance of the reported transaction or arrangement ;


### ‘ government’ means any national , regional or local authority of a member state or of a third country . it includes a department , agency or undertaking controlled by that authority as laid down in article 23 to of this directive . ### ‘ government’ means any national , regional or local authority of a third country . it includes a department , agency or undertaking controlled by that authority as laid down in article 23 to of this directive .


### the total amount of payments , including payments in kind , made to each government within a financial year ; ### the total amount of payments , including payments in kind , made to each level of recipient government , be it federal , national , state , regional or local , as defined in article 36 of this directive , within a financial year ;


### the statutory auditor shall also express an opinion concerning the consistency of the management report with the financial statements for the same financial year . ### the statutory auditor shall also express an opinion on :


### the eib should be encouraged to increase its operations and to diversify its operations outside the union without recourse to the eu guarantee so that the use of the eu guarantee can be focused on countries and investment projects with poor access to the market , taking into account debt sustainability considerations , where the eu guarantee therefore provides greater added value . consequently , and always with the aim of supporting the objectives of the union external policies , the eib should be encouraged to lend at its own risk , including in support of union economic interests , in countries and in favour of investment projects having a sufficient creditworthiness according to the assessment of the eib and taking into account its own risk absorption capacity . ### the eib should be encouraged to increase its operations and to diversify its operations outside the union without recourse to the eu guarantee so that the use of the eu guarantee can be focused on countries and investment projects with poor access to the market , taking into account debt sustainability considerations , where the eu guarantee therefore provides greater added value . the eib should be encouraged to focus its operations where it can have the highest impact in terms of sustainable economic , social and environmental development . consequently , and always with the aim of supporting the objectives of the union external policies , the eib should be encouraged to lend at its own risk , including in support of union economic interests , in countries and in favour of investment projects having a sufficient creditworthiness according to the assessment of the eib and taking into account its own risk absorption capacity .


### in its financing operations outside the union that fall within the scope of this decision , the eib should endeavour further to enhance coordination and cooperation with european financial institutions and international financial institutions , notably those participating in the eu platform for blending in external cooperation . this cooperation includes , where appropriate , cooperation on sector conditionality and mutual reliance on procedures , use of joint co - financing and participation in global initiatives , such as those promoting aid coordination and effectiveness . such coordination and cooperation should strive to minimise possible duplication of costs and unnecessary overlap . the tripartite memorandum of understanding between the commission , the eib group and the european bank for reconstruction and development in respect of cooperation outside the union , which allows the eib group and the ebrd to act in a complementary way by relying on their respective comparative advantages , was updated in 2012 to cover the extension of ebrd ' s geographical scope to the mediterranean region and should continue to be applied . the principles set out in this decision should also be applied when eib financing is implemented through cooperation agreements with other european financial institutions and international financial institutions . ### in its financing operations outside the union that fall within the scope of this decision , the eib should endeavour further to enhance coordination and cooperation with european financial institutions and international financial institutions , notably those participating in the eu platform for blending in external cooperation . this cooperation includes , where appropriate , cooperation on sector conditionality and mutual reliance on procedures , use of joint co - financing and participation in global initiatives , such as those promoting aid coordination and effectiveness . such coordination and cooperation should strive to minimise possible duplication of costs and unnecessary overlap . cooperation should be firmly based on the principle of reciprocity . the tripartite memorandum of understanding between the commission , the eib group and the european bank for reconstruction and development in respect of cooperation outside the union , which allows the eib group and the ebrd to act in a complementary way by relying on their respective comparative advantages , was updated in 2012 to cover the extension of ebrd ' s geographical scope to the mediterranean region and should continue to be applied . the principles set out in this decision should also be applied when eib financing is implemented through cooperation agreements with other european , multi - and bilateral , financial institutions and international financial institutions , including regarding consistency with eu external policy objectives , aid effectiveness principles and transparency .


### olaf may carry out investigations , including on - the - spot checks and inspections , in accordance with the provisions and procedures laid down in regulation no 1073 / 1999 , regulation no 2185 / 96 and regulation no 2988 / 95 in order to protect the financial interests of the european union , with a view to establishing whether there has been fraud , corruption or any other illegal activity affecting the financial interests of the union in connection with any financing operations . ### olaf may carry out investigations , including on - the - spot checks and inspections , in accordance with the provisions and procedures laid down in regulation no 1073 / 1999 , regulation no 2185 / 96 and regulation no 2988 / 95 in order to protect the financial interests of the european union , with a view to establishing whether there has been fraud , corruption or any other illegal activity affecting the financial interests of the union in connection with any financing operations . if the financial interests of a member state are involved , olaf shall inform the government of that member state immediately . where corruption is proven , the eib shall assist asset recovery efforts by disclosing to the relevant authorities any assets held by the eib that relate to such corruption or that derive from it .


### while the eib ' s strength remains its distinctiveness as an investment bank , eib financing operations should contribute to the general principles guiding union external action , as referred to in article 21 of the treaty on european union , of promoting and consolidating democracy and the rule of law , human rights and fundamental freedoms , and to the implementation of international environmental agreements to which the union is a party . in particular , in relation to developing countries , eib financing operations should foster their sustainable economic , social and environmental development , particularly in the most disadvantaged amongst them , their smooth and gradual integration into the world economy , the campaign against poverty , as well as compliance with objectives approved by the union in the context of the united nations and other competent international organisations . while contributing to the implementation of the measures necessary to further the objectives of union development cooperation policy in accordance with article 209 of the treaty , the eib should strive to support indirectly the achievement of the un ' s 2015 millennium development goals in all regions where it is active . ### while the eib ' s strength remains its distinctiveness as an investment bank , eib financing operations should contribute to the general principles guiding union external action , as referred to in article 21 of the treaty on european union , of promoting and consolidating democracy and the rule of law , human rights and fundamental freedoms , the building of partnerships with third countries and to the implementation of international commitments and agreements , including environmental agreements to which the union is a party . careful consideration should therefore be given when placing countries in annex iii to those countries ' records regarding democracy , human rights and fundamental freedoms , regardless of whether eu sanctions or restrictive measures are in force . in particular , the eib should contribute to economic , financial and technical cooperation with third countries in accordance with article 212 tfeu . in relation to developing countries , eib financing operations should foster their sustainable economic , social and environmental development , particularly in the most disadvantaged amongst them , their smooth and gradual integration into the world economy , the campaign against poverty , as well as compliance with objectives approved by the union in the context of the united nations and other relevant international organisations . while contributing to the implementation of the measures necessary to further the objectives of union development cooperation policy in accordance with article 209 of the treaty , the eib should strive to support indirectly the achievement of the un ' s 2015 millennium development goals in all regions where it is active .


### in line with union and international climate change objectives , before the end of 2016 , the eib , in cooperation with the commission and following a public consultation , shall update its climate change strategy as regards eib financing operations . ### in line with union and international climate change objectives , before the end of 2015 , the eib , in cooperation with the commission and following a public consultation , shall update its climate change strategy as regards eib financing operations outside the union . the strategy should integrate concrete actions to phase out financing projects detrimental to the achievement of union ' s climate objectives , step up efforts to support renewable energy sources and energy efficiency , as well as to improve the climate resilience of beneficiary countries , and be subject to consultation with relevant stakeholders .


### in its financing operations outside the union that fall within the scope of this decision , the eib should endeavour further to enhance coordination and cooperation with european financial institutions and international financial institutions , notably those participating in the eu platform for blending in external cooperation . this cooperation includes , where appropriate , cooperation on sector conditionality and mutual reliance on procedures , use of joint co - financing and participation in global initiatives , such as those promoting aid coordination and effectiveness . such coordination and cooperation should strive to minimise possible duplication of costs and unnecessary overlap . the tripartite memorandum of understanding between the commission , the eib group and the european bank for reconstruction and development in respect of cooperation outside the union , which allows the eib group and the ebrd to act in a complementary way by relying on their respective comparative advantages , was updated in 2012 to cover the extension of ebrd ' s geographical scope to the mediterranean region and should continue to be applied . the principles set out in this decision should also be applied when eib financing is implemented through cooperation agreements with other european financial institutions and international financial institutions . ### the mechanism of blending loans and grants must be evaluated particularly in terms of development and financial additionality , transparency and accountability , local ownership and debt risk . provided that it has a clear sustainable development impact , the eib should , in its financing operations outside the union that fall within the scope of this decision , endeavour further to enhance coordination and cooperation with european financial institutions and international financial institutions , notably those participating in the eu platform for blending in external cooperation . this cooperation includes , where appropriate , cooperation on sector conditionality and mutual reliance on procedures , use of joint co - financing and participation in global initiatives , such as those promoting aid coordination and effectiveness . such coordination and cooperation should strive to minimise possible duplication of costs and unnecessary overlap . the tripartite memorandum of understanding between the commission , the eib group and the european bank for reconstruction and development in respect of cooperation outside the union , which allows the eib group and the ebrd to act in a complementary way by relying on their respective comparative advantages , was updated in 2012 to cover the extension of ebrd ' s geographical scope to the mediterranean region and should continue to be applied . the principles set out in this decision should also be applied when eib financing is implemented through cooperation agreements with other european financial institutions and international financial institutions , including regarding consistency with the union ' s development objectives , aid effectiveness principles , transparency and democratic scrutiny , while ensuring that those principles can be applied also by other european and international financial institutions .


### in developing countries , as defined in the organisation for economic cooperation and development list of official development assistance recipients , eib financing operations shall contribute indirectly to the objectives of the union policy in development cooperation as referred to in article 208 tfeu . ### in developing countries , as defined in the organisation for economic cooperation and development list of official development assistance recipients , eib financing operations shall contribute to the objectives of the union policy in development cooperation as referred to in article 208 tfeu .


### in developing countries , as defined in the organisation for economic cooperation and development list of official development assistance recipients , eib financing operations shall contribute indirectly to the objectives of the union policy in development cooperation as referred to in article 208 tfeu . ### in developing countries , as defined in the organisation for economic cooperation and development list of official development assistance recipients , the eib financing operations shall contribute , under the terms laid down in its statute , to the implementation of the measures , adopted by the european parliament and the council , necessary for the implementation of development cooperation policy , within the framework of the principles and objectives of the union ' s external action as referred to in articles 208 and 209 tfeu .


### the eib shall inform olaf immediately when , at any stage of the preparation , implementation or closure of projects subject to the eu guarantee , it detects a potential case of fraud , corruption or other illegal activity that may affect the financial interests of the eu . ### the eib shall inform olaf immediately when , at any stage of the preparation , implementation or closure of projects subject to the eu guarantee , it detects a potential case of fraud , corruption or other illegal activity that may affect the financial interests of the eu or of the member states . the eib shall pay particular attention to information by whistleblowers regarding potential cases of fraud , corruption or other illegal activity , allowing for a proper follow - up , feedback and protection against retaliation .


### the eib financing operations in support of union external policies should continue to be conducted in accordance with the principles of sound banking practice . they should continue to be managed in accordance with the eib ' s own rules and procedures , including appropriate control measures and compliance with the eib ' s statement on social and environmental standards , as well as with the relevant rules and procedures concerning the court of auditors and the european anti - fraud office . in its financing operations the eib should adequately implement its policies towards weakly regulated or non - cooperative jurisdictions in order to contribute to the international fight against tax fraud , tax evasion and money - laundering . ### the eib financing operations in support of union external policies should continue to be conducted in accordance with the principles of sound banking practice . they should continue to be managed in accordance with the eib ' s own rules and procedures , including appropriate control measures and compliance with the eib ' s statement on social and environmental standards , as well as with the relevant rules and procedures concerning the court of auditors and the european anti - fraud office . in its financing operations the eib should adequately implement its policies towards weakly regulated or non - cooperative jurisdictions in order to contribute to the international fight against tax fraud , tax evasion and money - laundering . the eib should also , as far as possible , increase the diversification of its financial partners in the countries in which it operates and encourage the establishment of public - private partnerships .


### the eib monitoring shall also cover the implementation of intermediated operations and the performance of financial intermediaries in support of smes . ### the eib monitoring shall also cover the implementation of intermediated operations and the performance and development impact of financial intermediaries in support of smes .


### by 31 december 2017 , the commission shall submit to the european parliament and the council a mid - term report evaluating the implementation of this decision in the first years accompanied , where appropriate , by a proposal for its amendment . the report shall draw upon an external evaluation and contribution from the eib . ### by 31 december 2016 , the commission shall submit to the european parliament and the council a mid - term report evaluating the implementation of this decision in the first years accompanied , where appropriate , by a proposal for its amendment . the report shall draw upon an external evaluation and contribution from the eib .


### in addition to the ex - ante assessment of development - related aspects , the eib shall monitor the implementation of financing operations . in particular , it shall require the project promoters to carry out thorough monitoring during project implementation until completion , inter alia , on the development , environmental and human rights impact of the investment project . the eib shall verify the information provided by the project promoters . ### in addition to the ex - ante assessment of development - related aspects , the eib shall monitor the implementation of financing operations . in particular , it shall require the project promoters to carry out thorough monitoring during project implementation until completion , inter alia , on the economic , development , social , environmental and human rights impact of the investment project . the eib shall systematically verify the information provided by the project promoters and make it publicly available after signature if the promoter agrees . where possible , completion reports shall be issued for projects covered by eu guarantees .


### union external relations should be supported by new instruments from 2014 , including an umbrella regulation establishing common rules and procedures for the implementation of the union ' s instruments for external action . with a view to enhancing the coherence of overall union support in the regions concerned , opportunities should be seized to combine eib financing with union budgetary resources when and as appropriate , in the form of financial instruments provided for in title viii of regulation no 966 / 2012 of the european parliament and of the council of 25 october 2012 on the financial rules applicable to the general budget of the union and repealing council regulation no 1605 / 2002 and technical assistance for project preparation and implementation , through the instrument for pre - accession assistance ii , the european neighbourhood instrument , the development cooperation instrument , the partnership instrument for cooperation with third countries , the instrument for the promotion of democracy and human rights worldwide , the instrument for stability , and the instrument for nuclear safety cooperation . following decision no 1080 / 2011 / eu , the commission established an eu platform for blending in external cooperation with a view to optimising the functioning of mechanisms for the blending of grants and loans outside the union . ### union external relations should be supported by new instruments from 2014 , including an umbrella regulation establishing common rules and procedures for the implementation of the union ' s instruments for external action . with a view to enhancing the coherence of overall union support in the regions concerned , and provided that blending activities have a clear sustainable development impact , that can be effectively monitored , eib financing should be combined with union budgetary resources when and as appropriate , in the form of financial instruments provided for in title viii of regulation no 966 / 2012 of the european parliament and of the council of 25 october 2012 on the financial rules applicable to the general budget of the union and repealing council regulation no 1605 / 2002 and technical assistance for project preparation and implementation , through the instrument for pre - accession assistance ii , the european neighbourhood instrument , the development cooperation instrument , the partnership instrument for cooperation with third countries , the instrument for the promotion of democracy and human rights worldwide , the instrument for stability , and the instrument for nuclear safety cooperation . following decision no 1080 / 2011 / eu , the commission established an eu platform for blending in external cooperation with a view to optimising the functioning of mechanisms for the blending of grants and loans outside the union . the participation of the eib and other financial institutions in blending mechanisms should be fully in line with union’s development objectives , aid effectiveness principles and transparency .


### the practical measures for linking the general objectives of the eu guarantee and their implementation are to be set out in regional technical operational guidelines . such guidelines should be consistent with the wider union regional policy framework . the regional technical operational guidelines should be reviewed and further updated following the review of this decision in order to adapt to the developments in the union external policies and priorities . ### the practical measures for linking the general objectives of the eu guarantee and their implementation are to be set out in regional technical operational guidelines . such guidelines should be consistent with the wider union regional policy framework . the regional technical operational guidelines should be updated to align them to the union priorities across regions , as well as with political developments in eligible countries . the regional technical guidelines should also be reviewed following consultation with relevant stakeholders and further updated following the mid - term review of this decision in order to adapt to the developments in the union external policies and priorities .


### the commission and the eib shall set out in the agreement referred to in article 13 a method allowing the eib to identify , within its external activity , the operations to be financed under this decision and the operations to be financed at the own risk of the eib . the method shall be based on the creditworthiness of eib financing operations as assessed by the eib , the regions and ceilings as defined in annex i , the nature of the counterparty , eib risk absorption capacity and other relevant criteria , including added value of the eu guarantee . ### the commission and the eib shall set out in the agreement referred to in article 13 a clear and transparent method allowing the eib to identify , within its external activity , the operations to be financed under this decision and the operations to be financed at the own risk of the eib . the method shall be based on the creditworthiness of eib financing operations as assessed by the eib , the regions and ceilings as defined in annex i , the nature of the counterparty , eib risk absorption capacity and other relevant criteria , including added value of the eu guarantee . the allocation policy shall be made available to the european parliament . the eib website shall , after the project approval stage , list all operations financed by the eib outside of the union which do benefit from the eu guarantee .


### the eib shall carry out thorough due diligence and , where appropriate and in line with union social and environmental principles , require appropriate local public consultation , on development - related aspects of investment projects covered by the eu guarantee . ### the eib shall carry out thorough due diligence and , in line with union social and environmental principles , require appropriate local public consultation , on development - related aspects of investment projects covered by the eu guarantee .


### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in the areas of transport , energy , including renewable energy , energy systems transformation enabling a switch to lower carbon intensive technologies and fuels , energy security and energy infrastructure , including for gas production and transportation to eu energy market , environmental infrastructure , including water and sanitation and green infrastructure , information and communication technology , including telecommunications and broadband network infrastructure , health and education . ### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in the areas of transport , energy , including renewable energy , energy systems transformation enabling a switch to lower carbon intensive technologies and fuels , energy security and energy infrastructure , including electricity transmission infrastructure , in particular interconnections that facilitate the integration of electricity from renewable sources , environmental infrastructure , including water and sanitation and green infrastructure , information and communication technology , including telecommunications and broadband network infrastructure , health and education . priority consideration should be given to electricity infrastructure projects connecting the union and third countries which provide mutual economic , development , social and environmental benefits .


### where the commission makes any payment under the eu guarantee , the eib shall , in the name and on behalf of the commission , pursue the recovery of claims for the amounts paid . ### where the commission makes any payment under the eu guarantee , the eib shall , in the name and on behalf of the eu , pursue the recovery of claims for the amounts paid .


### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in climate change mitigation and adaptation which contribute to the overall objective of the united nations framework convention on climate change , in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy , energy efficiency and sustainable transport , or by increasing resilience to the adverse impacts of climate change on vulnerable countries , sectors and communities . over the period covered by the decision , the volume of these operations shall represent at least 25% of total eib financing operations . ### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in climate change mitigation and adaptation which contribute to the overall objective of the united nations framework convention on climate change , in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy , energy efficiency and sustainable transport , or by increasing resilience to the adverse impacts of climate change on vulnerable countries , sectors and communities . over the period covered by the decision , the volume of these operations shall represent at least 40% of total eib financing operations .


### the eib shall carry out thorough due diligence and , where appropriate and in line with union social and environmental principles , require appropriate local public consultation , on development - related aspects of investment projects covered by the eu guarantee . ### the eib shall carry out thorough due diligence and , in line with union social and environmental principles and law , require appropriate local public consultation , on development - related aspects of investment projects covered by the eu guarantee , including an assessment of the contribution to the objectives of the union policy on development cooperation , according to article 208 tfeu .


### the eib should expand the range of innovative financial instruments it offers , including by focusing more on developing guarantee instruments . moreover , the eib should actively seek to participate in risk sharing instruments and debt capital market financing of projects with stable and predictable cash flow generation . in particular , it should consider supporting debt capital market instruments issued or granted for the benefit of an investment project carried out in the eligible countries . in addition , the eib should increase its provision of loans in local currencies and issue bonds in local markets , provided that beneficiary countries put in place the necessary structural reforms , in particular in the financial sector , as well as other measures to facilitate eib activities . ### the eib should expand the range of innovative financial instruments it offers , including by focusing more on developing guarantee instruments . moreover , the eib should actively seek to participate in risk sharing instruments and debt capital market financing of projects with stable and predictable cash flow generation . in particular , it should consider supporting debt capital market instruments issued or granted for the benefit of an investment project carried out in the eligible countries . in addition , the eib should increase its provision of loans in local currencies and issue bonds in local markets , provided that beneficiary countries put in place the necessary structural reforms , in particular in the financial sector , as well as other measures to facilitate eib activities . the eib should explore opportunities for cooperation with the commission and the eeas to support local authorities in carrying out the necessary reforms in their financial sector .


### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in the areas of transport , energy , including renewable energy , energy systems transformation enabling a switch to lower carbon intensive technologies and fuels , energy security and energy infrastructure , including for gas production and transportation to eu energy market , environmental infrastructure , including water and sanitation and green infrastructure , information and communication technology , including telecommunications and broadband network infrastructure , health and education . ### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in the areas of transport , energy , including renewable energy , energy systems transformation enabling a switch to lower carbon intensive technologies and fuels , sustainable energy security and energy infrastructure , including gas production and transportation to eu energy market , electricity transmission infrastructure , in particular interconnections that facilitate the integration of electricity from renewable sources sustainable environmental infrastructure , including water and sanitation and green infrastructure , information and communication technology , including telecommunications and broadband network infrastructure , health and education . priority consideration should be given to infrastructure projects connecting the union and third countries which provide mutual economic , development , social and environmental benefits .


### the eib should also continue to finance investment projects in support of climate change mitigation and adaptation , to further the promotion of the union ' s climate goals on a global scale . ### the eib should also increase its financing of investment projects in support of climate change mitigation and adaptation , to further the promotion of the union ' s climate goals on a global scale .


### the practical measures for linking the general objectives of the eu guarantee and their implementation are to be set out in regional technical operational guidelines . such guidelines should be consistent with the wider union regional policy framework . the regional technical operational guidelines should be reviewed and further updated following the review of this decision in order to adapt to the developments in the union external policies and priorities . ### the practical measures for linking the general objectives of the eu guarantee and their implementation are to be set out in regional technical operational guidelines . such guidelines should be consistent with the wider union regional policy framework . the regional technical operational guidelines should be regularly updated to keep them in line with union ' s priorities within regions , as defined by the european parliament and the eeas , as well as with developments in eligible countries . the updates should follow a consultation process with relevant stakeholders . the regional technical guidelines should also be reviewed and further updated following the review of this decision in order to reflect developments in the union external policies and priorities .


### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in climate change mitigation and adaptation which contribute to the overall objective of the united nations framework convention on climate change , in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy , energy efficiency and sustainable transport , or by increasing resilience to the adverse impacts of climate change on vulnerable countries , sectors and communities . over the period covered by the decision , the volume of these operations shall represent at least 25% of total eib financing operations . ### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in climate change mitigation and adaptation which contribute to the overall objective of the united nations framework convention on climate change , in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy , energy efficiency and sustainable transport , or by increasing resilience to the adverse impacts of climate change on vulnerable countries , sectors and communities . the eligibility criteria for climate action projects shall be made publicly available , and be reflected in the climate change strategy of the eib . to this end , an analysis of the carbon footprint ought to be included in the environmental assessment procedure to determine whether project proposals maximize energy - efficiency improvements . over the period covered by the decision , the volume of these operations shall represent at least 25% of total eib financing operations .


### the practical measures for linking the general objectives of the eu guarantee and their implementation are to be set out in regional technical operational guidelines . such guidelines should be consistent with the wider union regional policy framework . the regional technical operational guidelines should be reviewed and further updated following the review of this decision in order to adapt to the developments in the union external policies and priorities . ### the practical measures for linking the general objectives of the eu guarantee and their implementation are to be set out in regional technical operational guidelines . such guidelines should be consistent with the wider union regional policy framework . the regional technical operational guidelines should be reviewed and further updated following the mid - term review of this decision in order to reflect developments in the union external policies and its priorities .


### in addition to the ex - ante assessment of development - related aspects , the eib shall monitor the implementation of financing operations . in particular , it shall require the project promoters to carry out thorough monitoring during project implementation until completion , inter alia , on the development , environmental and human rights impact of the investment project . the eib shall verify the information provided by the project promoters . ### in addition to the ex - ante assessment of development - related aspects , the eib shall monitor the implementation of financing operations . in particular , it shall require the project promoters to carry out thorough monitoring during project implementation until completion , inter alia , on the development , environmental and human rights impact of the investment project . the eib shall systematically verify the information provided by the project promoters and make it publicly available in line with its transparency policy . completion reports shall also be issued for projects covered by the eu guarantee .


### development of social , environmental and economic infrastructure ; ### development of economic , social and environmental infrastructure ;


### the eib shall establish a comprehensive tracking system of monitoring relative and absolute greenhouse gas emissions reduction throughout significant eib financing operations where emissions are significant and data is available . ### the eib shall establish a comprehensive tracking system of monitoring relative and absolute greenhouse gas emissions reduction throughout eib financing operations where emissions are significant and data is available .


### union external relations should be supported by new instruments from 2014 , including an umbrella regulation establishing common rules and procedures for the implementation of the union ' s instruments for external action . with a view to enhancing the coherence of overall union support in the regions concerned , opportunities should be seized to combine eib financing with union budgetary resources when and as appropriate , in the form of financial instruments provided for in title viii of regulation no 966 / 2012 of the european parliament and of the council of 25 october 2012 on the financial rules applicable to the general budget of the union and repealing council regulation no 1605 / 2002 and technical assistance for project preparation and implementation , through the instrument for pre - accession assistance ii , the european neighbourhood instrument , the development cooperation instrument , the partnership instrument for cooperation with third countries , the instrument for the promotion of democracy and human rights worldwide , the instrument for stability , and the instrument for nuclear safety cooperation . following decision no 1080 / 2011 / eu , the commission established an eu platform for blending in external cooperation with a view to optimising the functioning of mechanisms for the blending of grants and loans outside the union . ### union external relations should be supported by new instruments from 2014 , including an umbrella regulation establishing common rules and procedures for the implementation of the union ' s instruments for external action . with a view to enhancing the coherence of overall union support in the regions concerned , and provided that blending activities have a clear sustainable development impact , that can be effectively monitored , eib financing should be combined with union budgetary resources when and as appropriate , in the form of financial instruments provided for in title viii of regulation no 966 / 2012 of the european parliament and of the council of 25 october 2012 on the financial rules applicable to the general budget of the union and repealing council regulation no 1605 / 2002 and technical assistance for project preparation and implementation , through the instrument for pre - accession assistance ii , the european neighbourhood instrument , the development cooperation instrument , the partnership instrument for cooperation with third countries , the instrument for the promotion of democracy and human rights worldwide , the instrument for stability , and the instrument for nuclear safety cooperation . following decision no 1080 / 2011 / eu , the commission established an eu platform for blending in external cooperation with a view to optimising the functioning of mechanisms for the blending of grants and loans outside the union . the participation of the eib and other financial institutions in blending mechanisms should be fully in line with union’s development objectives , aid effectiveness principles and transparency .


### olaf may carry out investigations , including on - the - spot checks and inspections , in accordance with the provisions and procedures laid down in regulation no 1073 / 1999 , regulation no 2185 / 96 and regulation no 2988 / 95 in order to protect the financial interests of the european union , with a view to establishing whether there has been fraud , corruption or any other illegal activity affecting the financial interests of the union in connection with any financing operations . ### olaf may carry out investigations , including on - the - spot checks and inspections , in accordance with the provisions and procedures laid down in regulation no 1073 / 1999 , regulation no 2185 / 96 and regulation no 2988 / 95 in order to protect the financial interests of the european union , with a view to establishing whether there has been fraud , corruption , money laundering or any other illegal activity affecting the financial interests of the union in connection with any financing operations . where corruption is proven , the eib shall assist asset recovery efforts by disclosing to the relevant authorities any assets held by the eib that relate to such corruption or that derive from it .


### while the eib ' s strength remains its distinctiveness as an investment bank , eib financing operations should contribute to the general principles guiding union external action , as referred to in article 21 of the treaty on european union , of promoting and consolidating democracy and the rule of law , human rights and fundamental freedoms , and to the implementation of international environmental agreements to which the union is a party . in particular , in relation to developing countries , eib financing operations should foster their sustainable economic , social and environmental development , particularly in the most disadvantaged amongst them , their smooth and gradual integration into the world economy , the campaign against poverty , as well as compliance with objectives approved by the union in the context of the united nations and other competent international organisations . while contributing to the implementation of the measures necessary to further the objectives of union development cooperation policy in accordance with article 209 of the treaty , the eib should strive to support indirectly the achievement of the un ' s 2015 millennium development goals in all regions where it is active . ### while the eib ' s strength remains its distinctiveness as an investment bank , eib financing operations should contribute to the general principles guiding union external action , as referred to in article 21 of the treaty on european union , of promoting and consolidating democracy and the rule of law , human rights and fundamental freedoms , and to the implementation of international environmental agreements to which the union is a party . in particular , in relation to developing countries , eib financing operations should foster their sustainable economic , social and environmental development , particularly in the most disadvantaged amongst them , their smooth and gradual integration into the world economy , the campaign against poverty , as well as compliance with objectives approved by the union in the context of the united nations and other relevant international organisations . while contributing to the implementation of the measures necessary to further the objectives of union development cooperation policy in accordance with article 209 tfeu , the eib should strive to support indirectly the achievement of the un ' s 2015 millennium development goals , and after 2015 by possible new development targets which might modify or replace the mdgs , in all regions where it is active .


### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in climate change mitigation and adaptation which contribute to the overall objective of the united nations framework convention on climate change , in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy , energy efficiency and sustainable transport , or by increasing resilience to the adverse impacts of climate change on vulnerable countries , sectors and communities . over the period covered by the decision , the volume of these operations shall represent at least 25% of total eib financing operations . ### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in climate change mitigation and adaptation which contribute to the overall objective of the united nations framework convention on climate change , in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy , energy efficiency and sustainable transport , or by increasing resilience to the adverse impacts of climate change on highly fragile natural environments , vulnerable countries , sectors and communities - especially in the russia - eu high north border region . over the period covered by the decision , the volume of these operations shall represent at least 30% of total eib financing operations .


### union external relations should be supported by new instruments from 2014 , including an umbrella regulation establishing common rules and procedures for the implementation of the union ' s instruments for external action . with a view to enhancing the coherence of overall union support in the regions concerned , opportunities should be seized to combine eib financing with union budgetary resources when and as appropriate , in the form of financial instruments provided for in title viii of regulation no 966 / 2012 of the european parliament and of the council of 25 october 2012 on the financial rules applicable to the general budget of the union and repealing council regulation no 1605 / 2002 and technical assistance for project preparation and implementation , through the instrument for pre - accession assistance ii , the european neighbourhood instrument , the development cooperation instrument , the partnership instrument for cooperation with third countries , the instrument for the promotion of democracy and human rights worldwide , the instrument for stability , and the instrument for nuclear safety cooperation . following decision no 1080 / 2011 / eu , the commission established an eu platform for blending in external cooperation with a view to optimising the functioning of mechanisms for the blending of grants and loans outside the union . ### union external relations should be supported by new instruments from 2014 , including an umbrella regulation establishing common rules and procedures for the implementation of the union ' s instruments for external action . with a view to enhancing the coherence of overall union support in the regions concerned , eib financing should be combined with union budgetary resources when and as appropriate , in the form of financial instruments provided for in title viii of regulation no 966 / 2012 of the european parliament and of the council of 25 october 2012 on the financial rules applicable to the general budget of the union and repealing council regulation no 1605 / 2002 and technical assistance for project preparation and implementation , through the instrument for pre - accession assistance ii , the european neighbourhood instrument , the development cooperation instrument , the partnership instrument for cooperation with third countries , the instrument for the promotion of democracy and human rights worldwide , the instrument for stability , and the instrument for nuclear safety cooperation . following decision no 1080 / 2011 / eu , the commission established an eu platform for blending in external cooperation with a view to optimising the functioning of mechanisms for the blending of grants and loans outside the union . the participation of the eib in blending mechanisms should be fully in line with the eu ' s external policy objectives , aid effectiveness principles and transparency .


### the biennal report shall contain information relating to the previous year on the measures financed , the results of monitoring and evaluation exercises , the involvement of the relevant partners , and the implementation of budgetary commitments and of payments appropriations . it shall assess the results of the union ' s financial assistance , using as far as possible , specific and measurable indicators of its role in meeting the objectives of the instruments . ### the biennial report shall contain information relating to the previous year on the measures financed , the results of monitoring and evaluation exercises , the involvement of the relevant partners , and the implementation of budgetary commitments and of payments appropriations . it shall assess , with a view to achieving the objectives of each instrument , the complementarity and synergies between the instruments financed under heading 4 of the union ' s budget , and shall assess the results of the union ' s financial assistance on the basis of pre - defined , clear , transparent and measurable indicators .


### while financing needs of the union ' s external assistance are increasing , the economic and budgetary situation of the union limits the resources available for such assistance . the commission must therefore seek the most efficient use of available resources , in particular by using financial instruments that have a leverage effect . such leverage effect is increased by allowing funds invested and generated by the financial instruments to be used and re - used . ### the commission should aim to create budgetary synergies between national , union , multilateral and international measures and existing instruments by avoiding any potential overlap , and must therefore seek the most efficient use of available resources without compromising the just and fair use of the union ' s resources , in particular by using financial instruments that have a leverage effect , allowing funds invested and generated by the financial instruments to be used and re - used in accordance with the relevant provisions of the financial regulation .


### exceptionally , in particular where an action programme has not yet been adopted , the commission may , on the basis of the indicative programming documents , adopt individual measures under the same rules and procedures as for action programmes . ### exceptionally , in particular where an action programme has not yet been adopted , the commission may , on the basis of the strategic programming documents , adopt individual measures .


### in the event of unforeseen and duly justified needs , circumstances or commitments , the commission may adopt special measures not provided for in the indicative programming documents . special measures may also be used to ease the transition from emergency aid to long - term development operations , including measures to better prepare people to deal with recurring crises . ### in special unforeseen and duly justified circumstances , the commission may adopt special measures not provided for in the strategic programming documents . special measures may also be used to ease the transition from emergency to long - term operations .


### no later than 31 december 2017 , a report shall be established by the commission on the achievement of the objectives of each of the instruments by means of result and impact indicators measuring the efficiency of the use of resources and the european added value of the instruments , in view of a decision on the renewal , modification or suspension of the types of actions implemented under the instruments . the report shall , in addition , address the scope for simplification , internal and external coherence , the continued relevance of all objectives , as well as the contribution of the measures to the union priorities for smart , sustainable and inclusive growth . it shall take into account any findings and conclusions on the long - term impact of the instruments . ### no later than 31 march 2017 , a report shall be established by the commission on the implementation of each of the instruments and of this regulation in the first three years , and on the achievement of the objectives by means of result and impact indicators measuring the efficiency of the use of resources and the added value of the instruments , in view of a decision on the renewal , modification or suspension of the types of actions implemented under the instruments . the report shall , in addition , address the scope for simplification , internal and external coherence , the continued relevance of all objectives , as well as , where relevant , the contribution of the measures to the union priorities for smart , sustainable and inclusive growth . it shall take into account any findings and conclusions on the long - term impact of the instruments .


### the commission shall send its evaluation reports to the european parliament and to the council for information . member states may request to discuss specific evaluations in the committees referred to in article 15 . the results shall feed back into programme design and resource allocation . ### the commission shall send its evaluation reports to the european parliament and to the council for information . the results shall feed back into programme design and resource allocation .


### the commission shall adopt annual or multi - annual action programmes , where required based on the indicative programming documents referred to in the applicable instrument . ### the commission shall adopt annual action programmes which are based on and in line with the strategic programming documents referred to in article 2 .


### while financing needs of the union’s external assistance are increasing , the economic and budgetary situation of the union limits the resources available for such assistance . the commission must therefore seek the most efficient use of available resources , in particular by using financial instruments that have a leverage effect . such leverage effect is increased by allowing funds invested and generated by the financial instruments to be used and re - used . ### while financing needs of the union’s external assistance are increasing , the economic and budgetary situation of the union limits the resources available for such assistance . the commission should aim to create budgetary synergies between national , union , multilateral and international measures and existing instruments by avoiding any potential overlap , and must therefore seek the most efficient use of available resources without compromising the just and fair use of the union ' s resources , in particular by using financial instruments that have a leverage effect , allowing funds invested and generated by the financial instruments to be used and re - used in accordance with the relevant provisions of the financial rules .


### taking into account the policy programming or financial execution nature of those implementing acts , in particular their budgetary implications , the examination procedure should in general be used for their adoption , except for measures of a small financial scale . however , the commission should adopt immediately applicable implementing acts where , in duly justified cases relating to the need for a swift response from the union , imperative grounds of urgency so requires . ### taking into account the financial execution nature of those annual or multiannual action programmes , in particular their budgetary implications , the examination procedure should in general be used for their adoption , except for measures of a small financial scale . however , the commission should adopt immediately applicable implementing acts where , in duly justified cases relating to the need for a swift response from the union , imperative grounds of urgency so require .


### for the implementation of financial instruments , when the management of the operation is entrusted to a financial intermediary , the commission decision should cover in particular provisions concerning risk - sharing , the remuneration of the intermediary responsible for implementation , the use and re - use of the funds and the possible profits . ### for the implementation of financial instruments , when the management of the operation is entrusted to a financial intermediary , the commission decision should cover in particular provisions concerning risk - sharing , the remuneration of the intermediary responsible for implementation , the use and re - use of the funds and the possible profits and the reporting obligations and control mechanisms , taking into account the relevant provisions of the financial rules . when financial instruments are no longer deemed to be needed , they may be terminated in accordance with the conditions laid down in this regulation .


### the biennal report shall contain information relating to the previous year on the measures financed , the results of monitoring and evaluation exercises , the involvement of the relevant partners , and the implementation of budgetary commitments and of payments appropriations . it shall assess the results of the union ' s financial assistance , using as far as possible , specific and measurable indicators of its role in meeting the objectives of the instruments . ### the biennial report shall contain information relating to the two previous years on the measures financed , the results of monitoring and evaluation exercises , the involvement of the relevant partners , and the implementation of budgetary commitments and of payments appropriations . it shall assess the results of the union ' s financial assistance , using as far as possible , specific and measurable indicators of both a quantitative and a qualitative nature to assess its role in meeting all the objectives of the instruments , and covering all relevant aspects of the instruments .


### appropriate environmental screening , including for climate change and biodiversity impacts , shall be undertaken at project level including where applicable environmental impact assessment for environmentally sensitive projects , in particular for major new infrastructure . where relevant , strategic environmental assessments shall be used in the implementation of sectoral programmes . the involvement of interested stakeholders in environmental assessments and public access to the results shall be ensured . ### appropriate environmental screening shall be undertaken at project level including where applicable environmental impact assessment for environmentally sensitive projects , in particular for major new infrastructure . where relevant , strategic environmental assessments shall be used in the implementation of sectoral programmes . the involvement of all major stakeholders in environmental assessments and public access to the results shall be ensured .


### while financing needs of the union’s external assistance are increasing , the economic and budgetary situation of the union limits the resources available for such assistance . the commission must therefore seek the most efficient use of available resources , in particular by using financial instruments that have a leverage effect . such leverage effect is increased by allowing funds invested and generated by the financial instruments to be used and re - used . ### with a view to optimising the impact of the instruments in question , and to ensure the most efficient use of available resources , the biennial report of the commission should , inter alia , assess the complementarity of , and the synergies and mutual reinforcement between , all the instruments financed under the relevant heading of the budget . the leverage effect that this will have is increased by allowing funds invested and generated by the financial instruments to be used and re - used .


### appropriate environmental screening , including for climate change and biodiversity impacts , shall be undertaken at project level including where applicable environmental impact assessment for environmentally sensitive projects , in particular for major new infrastructure . where relevant , strategic environmental assessments shall be used in the implementation of sectoral programmes . the involvement of interested stakeholders in environmental assessments and public access to the results shall be ensured . ### appropriate environmental screening shall be carried out in accordance with the legislation in force and the provisions of directive 2011 / 92 / eu of the european parliament and of the council of 13 december 2011 on the assessment of the effects of certain public and private projects on the environment 1 , ' the environmental impact assessment directive ' . where relevant , strategic environmental assessments shall be used in the implementation of sectoral programmes . the eia shall be made publicly available and used in the decision - making process . ______________ 1 oj l 26 , 28 . 1 . 2012 , p . 26 .