### the parametric values used to assess the quality of water intended for human consumption are to be complied with at the point where water intended for human consumption is made available to the appropriate user . however , the quality of water intended for human consumption can be influenced by the domestic distribution system . the who notes that , in the union , legionella causes the highest health burden of all waterborne pathogens . it is transmitted by warm water systems through inhalation , for instance during showering . it is therefore clearly linked to the domestic distribution system . since imposing a unilateral obligation to monitor all private and public premises for this pathogen would lead to unreasonably high costs , a domestic distribution risk assessment is therefore more suited to address this issue . in addition , the potential risks stemming from products and materials in contact with water intended for human consumption should also be considered in the domestic distribution risk assessment . the domestic distribution risk assessment should therefore include , inter alia , focusing monitoring on priority premises , assessing the risks stemming from the domestic distribution system and related products and materials , and verifying the performance of construction products in contact with water intended for human consumption on the basis of their declaration of performance in accordance with regulation no 305 / 2011 of the european parliament and of the council79 . the information referred to in articles 31 and 33 of regulation no 1907 / 2006 of the european parliament and of the council80 is also to be supplied together with the declaration of performance . on the basis of this assessment , member states should take all necessary measures to ensure , inter alia , that appropriate control and management measures are in place , in line with the guidance of the who81 , and that the migration from construction products does not endanger human health . however , without prejudice to regulation no 305 / 2011 , where these measures would imply limits to the free movement of products and materials in the union , these limits need to be duly justified and strictly proportionate , and not constitute a means of arbitrary discrimination or a disguised restriction on trade between member states . _________________ 79 regulation no 305 / 2011 of the european parliament and of the council of 9 march 2011 laying down harmonised conditions for the marketing of construction products and repealing council directive 89 / 106 / eec . 80 regulation no 1907 / 2006 of the european parliament and of the council of 18 december 2006 concerning the registration , evaluation , authorisation and restriction of chemicals , establishing a european chemicals agency , amending directive 1999 / 45 / ec and repealing council regulation no 793 / 93 and commission regulation no 1488 / 94 as well as council directive 76 / 769 / eec and commission directives 91 / 155 / eec , 93 / 67 / eec , 93 / 105 / ec and 2000 / 21 / ec . 81 ' legionella and the prevention of legionellosis ' , world health organisation , 2007 , http : / / www . who . int / water_sanitation_health / emerging / legionella . pdf ### the parametric values used to assess the quality of water intended for human consumption are to be complied with at the point where water intended for human consumption is made available to the appropriate user . however , the quality of water intended for human consumption can be influenced by the internal distribution system . the who notes that , in the union , legionella causes the highest health burden of all waterborne pathogens , in particular legionella pneumophilia , which accounts for most cases of legionnaires ' disease in the union . it is transmitted by warm water systems through inhalation , for instance during showering . it is therefore clearly linked to the domestic distribution system . since imposing a unilateral obligation to monitor all private and public premises for this pathogen would lead to unreasonably high costs , a domestic distribution risk assessment is therefore more suited to address this issue . in addition , the potential risks stemming from products and materials in contact with water intended for human consumption should also be considered in the domestic distribution risk assessment . the domestic distribution risk assessment should therefore include , inter alia , focusing monitoring on priority premises , assessing the risks stemming from the domestic distribution system and related products and materials , and verifying the performance of construction products in contact with water intended for human consumption on the basis of their declaration of performance in accordance with regulation no 305 / 2011 of the european parliament and of the council79 . the information referred to in articles 31 and 33 of regulation no 1907 / 2006 of the european parliament and of the council80 is also to be supplied together with the declaration of performance . on the basis of this assessment , member states should take all necessary measures to ensure , inter alia , that appropriate control and management measures are in place , in line with the guidance of the who81 , and that the migration from construction products does not endanger human health . however , without prejudice to regulation no 305 / 2011 , where these measures would imply limits to the free movement of products and materials in the union , these limits need to be duly justified and strictly proportionate , and not constitute a means of arbitrary discrimination or a disguised restriction on trade between member states . _________________ 79 regulation no 305 / 2011 of the european parliament and of the council of 9 march 2011 laying down harmonised conditions for the marketing of construction products and repealing council directive 89 / 106 / eec . 80 regulation no 1907 / 2006 of the european parliament and of the council of 18 december 2006 concerning the registration , evaluation , authorisation and restriction of chemicals , establishing a european chemicals agency , amending directive 1999 / 45 / ec and repealing council regulation no 793 / 93 and commission regulation no 1488 / 94 as well as council directive 76 / 769 / eec and commission directives 91 / 155 / eec , 93 / 67 / eec , 93 / 105 / ec and 2000 / 21 / ec . 81 ' legionella and the prevention of legionellosis ' , world health organisation , 2007 , http : / / www . who . int / water_sanitation_health / emerging / legionella . pdf


### the volume consumed by the household , at least per year or per billing period , together with yearly trends of consumption ; ### the volume consumed by the household , at least per year or per billing period , together with yearly trends of household consumption ;


### information on the cost structure of the tariff charged per cubic metre of water intended for human consumption , including fixed and variable costs , presenting at least costs related to the following elements : ### information of the tariff charged per cubic metre of water intended for human consumption , including fixed and variable costs :


### member states should no longer be authorised to grant derogations from this directive . derogations were initially used to allow member states up to nine years to resolve a non - compliance with a parametric value . this procedure proved to be burdensome for member states and commission alike . in addition , in some cases , it led to delays in remedial actions being taken , as the possibility for derogation was considered as a transitional period . the provision on derogations should therefore be deleted . for reasons of protection of human health , when parametric values are exceeded , the provisions related to remedial actions should apply immediately without the possibility of granting a derogation from the parametric value . derogations granted by member states pursuant to article 9 of directive 98 / 83 / ec and still applicable at the date of entry into force of this directive should , however , continue to apply until the end of the derogation but should not be renewed . ### member states should be authorised to grant derogations from this directive . derogations were initially used to allow member states up to nine years to resolve a non - compliance with a parametric value . this procedure has proved to be useful for member states , given the scale of ambition of the legislation . it should be noted , however , that , in some cases , it has led to delays in remedial actions being taken , as the possibility for derogation was sometimes considered to be a transitional period . in the light of the fact , firstly , that the quality parameters in this directive are to be strengthened and , secondly , that emerging pollutants are being increasingly detected , requiring stepped - up evaluation , monitoring and management actions , it remains nonetheless necessary to maintain a derogation procedure that is in keeping with those circumstances . the provision on derogations should therefore be amended so as to ensure faster and more effective compliance by member states with the requirements of this directive . derogations granted by member states pursuant to article 9 of directive 98 / 83 / ec and still applicable at the date of entry into force of this directive should continue to apply , too , in accordance with the arrangements laid down by the provisions in force when the derogation procedure is launched .


### member states should no longer be authorised to grant derogations from this directive . derogations were initially used to allow member states up to nine years to resolve a non - compliance with a parametric value . this procedure proved to be burdensome for member states and commission alike . in addition , in some cases , it led to delays in remedial actions being taken , as the possibility for derogation was considered as a transitional period . the provision on derogations should therefore be deleted . for reasons of protection of human health , when parametric values are exceeded , the provisions related to remedial actions should apply immediately without the possibility of granting a derogation from the parametric value . derogations granted by member states pursuant to article 9 of directive 98 / 83 / ec and still applicable at the date of entry into force of this directive should , however , continue to apply until the end of the derogation but should not be renewed . ### member states should be authorised , under certain conditions , to grant derogations from this directive ; whereas , furthermore , it is necessary to establish a proper framework for such derogations , provided that they must not constitute a potential danger to human health and provided that the supply of water intended for human consumption in the area concerned cannot otherwise be maintained by any other reasonable means ;


### in carrying out its tasks , the agency shall maintain a close dialogue particularly with specialised bodies , whether public or private , national or international , public authorities and educational institutions and with workers ' and employers’ organisations . the agency , without prejudice to its own aims , shall ensure cooperation with other european union agencies aimed at avoiding overlaps and promoting synergy and complementarity in their activities , in particular with the european training foundation , eurofound and eu - osha . ### in carrying out its tasks , the agency shall maintain a close dialogue particularly with specialised bodies , whether public or private , national or international , public authorities and educational institutions and with workers ' and employers’ organisations .


### in paragraph 4 , ' three months ' is replaced by ' one month ' . ### paragraph 4 is replaced by the following : ' 4where the commission , on the basis of the examination referred to in paragraph 3 , and taking into account the consequences of a suspension of the exemption from the visa requirement for the external relations of the union and its member states with the third country concerned , while working in close cooperation with that third country to find alternative long - term solutions , decides that action is needed , it shall , within one month of receipt of the notification referred to in paragraph 2 , adopt a delegated act in accordance with article 4b temporarily suspending the application of annex ii for a period of 6 months for the nationals of that third country . the delegated act shall determine a date on which the suspension of the application of annex ii is to take effect , taking into account the available resources in the consulates of the member states and shall amend annex ii accordingly . that amendment shall be made through inserting next to the name of the third country in question a footnote indicating that the exemption from the visa requirement is suspended with regard to that third country and specifying the period of that suspension . without prejudice to the application of article 4 , during the periods of that suspension the nationals of the third country concerned by the delegated act shall be required to be in possession of a visa when crossing the external borders of the member states . '


### in particular , the use of the mechanism should be facilitated by shortening reference periods and deadlines allowing for a faster procedure and by extending the possible grounds of suspension , which should include a substantial increase in the number of rejected readmission applications for third - country nationals having transited through the third country concerned , where a readmission agreement concluded between the union or a member state and that third country provides for such a readmission obligation . the commission should also be able to trigger the mechanism in case the third country fails to cooperate on readmission , in particular where a readmission agreement has been concluded between the third country concerned and the union . ### in particular , the use of the mechanism should be facilitated by shortening reference periods and deadlines allowing for a faster procedure and by extending the possible grounds of suspension , which should include a substantial increase in the number of rejected readmission applications for third - country nationals having transited through the third country concerned , where a readmission agreement concluded between the union or a member state and that third country provides for such a readmission obligation . the commission should also be able to trigger the mechanism in case the third country fails to cooperate on readmission , in particular where a readmission agreement has been concluded between the third country concerned and the union , as well as in the situation if the commission , following its evaluation , considers that a third country has stepped away from the accomplished benchmarks which were fulfilled in the framework of the visa liberalization dialogue , upon which the visa - free regime was granted .


### ' 2a . where the commission has concrete and reliable information of circumstances referred to in points , or of paragraph 2 , or that the third country is not cooperating on readmission , in particular where a readmission agreement has been concluded between that third country and the union , for instance : –by rejecting or not replying to readmission applications , –by failing to issue travel documents for the purposes of return within deadlines specified in the agreement or not accepting european travel documents issued following the lapse of deadlines specified in the agreement , –or by terminating or suspending the agreement , the commission may , on its own initiative , inform the european parliament and the council . this information shall be equivalent to a notification made pursuant to paragraph 2 . ' ### ' 2a . where the commission has concrete and reliable information , taking into account relevant data , reports and statistics , of circumstances referred to in points , or of paragraph 2 , or that the third country is not cooperating on readmission , in particular where a readmission agreement has been concluded between that third country and the union , for instance : –by rejecting or not replying to readmission applications , –by failing to issue travel documents for the purposes of return within deadlines specified in the agreement or not accepting european travel documents issued following the lapse of deadlines specified in the agreement , –or by terminating or suspending the agreement , the commission shall inform the european parliament and the council . this information shall be equivalent to a notification made pursuant to paragraph 2 . '


### vis registered regular travellers who have lawfully used the two previously obtained visas shall be issued a multiple entry visa valid for at least three years . ### vis registered regular travellers who have lawfully used their previously obtained visa shall be issued a multiple entry visa valid for at least five years .


### in justified cases of urgency , the consulate shall allow applicants to lodge their applications either without appointment , or an immediate appointment shall be given . ### in justified cases of urgency , the consulate may allow applicants to lodge their applications either without appointment , or an appointment shall be given as soon as possible .


### applicants referred to in paragraph 3 who have lawfully used the multiple entry visa valid for three years shall be issued a multiple entry visa valid for five years provided that the application is lodged no later than one year from the expiry date of the multiple entry visa valid for three years . ### applicants who have lawfully used the multiple entry visa referred to in paragraph 3 shall be issued a new multiple entry visa valid for at least five years provided that the application is lodged no later than one year from the expiry date of the multiple entry visa referred to in paragraph 3 .


### it is necessary to set out rules on the transit through international areas of airports in order to combat irregular immigration . to this end a common list of third countries the nationals of which should be required to hold airport transit visas should be established . nevertheless , when a member state experiences a sudden and substantial influx of irregular immigrants , it should be be able to introduce temporarily the airport transit visa requirement for nationals of a given third country . the conditions and procedures for doing so should be laid down , in order to ensure that the application of this measure is limited in time and that in accordance with the principle of proportionality , it does not go beyond what is necessary in order to achieve the objective . the scope of the airport transit visa requirement should be limited to responding to the specific situation that prompted the introduction of the measure . ### it is necessary to set out rules on the transit through international areas of airports in order to combat irregular immigration . to this end a common list of third countries the nationals of which should be required to hold airport transit visas should be established . nevertheless , when a member state experiences a sudden and substantial influx of irregular immigrants , it should be able to introduce temporarily the airport transit visa requirement for nationals of a given third country . the conditions and procedures for doing so should be laid down , in order to ensure that the application of this measure is limited in time and that in accordance with the principle of proportionality , it does not go beyond what is necessary in order to achieve the objective . the scope of the airport transit visa requirement should be limited to responding to the specific situation that prompted the introduction of the measure , and should be decided following a consultation of the commission and taking into consideration the position of the other member states .


### where there is a sudden and substantial influx of irregular immigrants , a member state may require nationals of third countries other than those referred to in paragraph 1 to hold an airport transit visa when passing through the international transit areas of airports situated on its territory . the duration of such a measure shall not exceed 12 months . the scope and duration of the airport transit visa requirement shall not exceed what is strictly necessary to respond to the sudden and substantial influx of irregular immigrants . ### where there is a sudden and substantial influx of irregular immigrants or a serious threat to public policy or internal security , a member state may require nationals of third countries other than those referred to in paragraph 1 to hold an airport transit visa when passing through the international transit areas of airports situated on its territory . the duration of such a measure shall not exceed 12 months . the scope and duration of the airport transit visa requirement shall not exceed what is strictly necessary to respond to the sudden and substantial influx of irregular immigrants or the serious threat to public policy or internal security .


### the reason for the planned airport transit visa requirement , substantiating the sudden and substantial influx of irregular immigrants ; ### the reason for the planned airport transit visa requirement , substantiating the sudden and substantial influx of irregular immigrants or the serious threat to public policy or internal security ;


### points , and of paragraph 1 do not apply to applicants who are vis registered regular travellers and who have lawfully used the two previously obtained visas . ### points , and of paragraph 1 do not , in principle , apply to applicants who are vis registered regular travellers .


### ' vis registered regular traveller ' means a visa applicant who is registered in the visa information system and who has obtained two visas within the 12 months prior to the application ; ### ' vis registered regular traveller ' means a visa applicant who is a national of a third country listed in annex xy , who is registered in the visa information system and who has obtained and lawfully used three visas within the 18 months prior to the application . the commission shall be empowered to adopt delegated acts in accordance with article 48 establishing or amending the list in annex xy ;


### applications shall be decided on within&#160 ; 10 calendar days of the date of the lodging of an application which is admissible in accordance with article 17 . ### applications shall be decided on within&#160 ; 15 calendar days of the date of the lodging of an application which is admissible in accordance with article 17 .


### the presumption referred to in paragraph 2 shall not apply where the consulate has reasonable doubts about the fulfilment of these entry conditions based on information stored in the vis , such as decisions annulling a previous visa , or in the passport , such as entry and exit stamps . in such cases , the consulates may carry out an interview and request additional documents . ### the presumption referred to in paragraph 2 shall not apply where the consulate has doubts about the fulfilment of these entry conditions based on information stored in the vis , in the passport or in the sis or on the basis of other evidence . in such cases , the consulates may carry out an interview and request additional documents .


### in justified cases of urgency , the consulate shall allow applicants to lodge their applications either without appointment , or an immediate appointment shall be given . ### in cases of urgency which the consulate considers to be justified , the consulate shall allow applicants to lodge their applications either without appointment , or an appointment shall be given at short notice .


### a visa may be issued for one or multiple entries . the period of validity of a multiple entry visa shall not exceed five years . the period of validity of a multiple entry visa may extend beyond the period of validity of the passport to which the visa is affixed . ### a visa may be issued for one or multiple entries . the period of validity of a multiple entry visa shall not exceed five years . the period of validity of a multiple entry visa may not under any circumstances extend beyond the period of validity of the passport to which the visa is affixed .


### the issuing of visas at the external border should , in principle , remain exceptional . however , to allow member states to promote short term tourism , they should be authorised to issue visas at the external border based on a temporary scheme and upon notification and publication of the organisational modalities of the scheme . such schemes should be temporary in nature and the validity of the visa issued should be limited to the territory of the issuing member state . ### in exceptional cases – for example in connection with major sporting events or other events of international significance – it should be possible to issue visas at the external border for limited periods . in order to enable immigration and border controls to be carried out as smoothly as possible at the external borders during the aforementioned periods , member states should provide for prior on - line registration for visas to be issued at the external border .


### the member state may prolong the application of the airport transit visa requirement only once where the lifting of the requirement would lead to a substantial influx of irregular migrants . paragraph 3 shall apply to such prolongation . ### the member state may prolong the application of the airport transit visa requirement for as long as necessary , on condition that the duration of this prolongation is proportionate and does not exceed what is strictly necessary in order to cope with a substantial influx of irregular migrants or a serious threat to public policy or internal security .


### a professional , cultural , sports or educational association or institution . ### an educational institution which is of recognised integrity and reliability or a similarly recognised professional , cultural or sports association .


### the presumption referred to in paragraph 2 shall not apply where the consulate has reasonable doubts about the fulfilment of these entry conditions based on information stored in the vis , such as decisions annulling a previous visa , or in the passport , such as entry and exit stamps . in such cases , the consulates may carry out an interview and request additional documents . ### the presumption referred to in paragraph 2 shall not apply where the consulate has reasonable doubts about the fulfilment of these entry conditions based on information stored in the vis , such as decisions annulling a previous visa , in the passport , such as entry and exit stamps , in the sis or in any other relevant item of information . in such cases , the consulates may carry out an interview and request additional documents , in accordance with paragraph 10 of this article .


### vis registered regular travellers who have lawfully used the two previously obtained visas shall be issued a multiple entry visa valid for at least three years . ### vis registered regular travellers who have lawfully used the previously obtained visas shall be issued a multiple entry visa valid for at least five years .


### multiple entry visas with a long validity should be issued according to objectively determined criteria . the validity of a multiple entry visa could go beyond the validity of the travel document in which it is affixed . ### multiple entry visas with a long validity should be issued according to objectively determined criteria . the validity of a multiple entry visa cannot under any circumstances go beyond the validity of the travel document in which it is affixed .


### it is necessary to set out rules on the transit through international areas of airports in order to combat irregular immigration . to this end a common list of third countries the nationals of which should be required to hold airport transit visas should be established . nevertheless , when a member state experiences a sudden and substantial influx of irregular immigrants , it should be be able to introduce temporarily the airport transit visa requirement for nationals of a given third country . the conditions and procedures for doing so should be laid down , in order to ensure that the application of this measure is limited in time and that in accordance with the principle of proportionality , it does not go beyond what is necessary in order to achieve the objective . the scope of the airport transit visa requirement should be limited to responding to the specific situation that prompted the introduction of the measure . ### it is necessary to set out rules on the transit through international areas of airports in order to combat irregular immigration and address any serious threats to public policy or internal security . to this end a common list of third countries the nationals of which should be required to hold airport transit visas should be established . nevertheless , when a member state experiences a sudden and substantial influx of irregular immigrants or a serious threat to public policy or internal security , it should be able to introduce temporarily the airport transit visa requirement for nationals of a given third country . the conditions and procedures for doing so should be laid down , in order to ensure that the application of this measure is limited in time and that in accordance with the principle of proportionality , it does not go beyond what is necessary in order to achieve the objective . the scope of the airport transit visa requirement should be limited to responding to the specific situation that prompted the introduction of the measure .


### the consulate shall start processing the visa application on the basis of facsimile or copies of the supporting documents . applicants who are not yet registered in the vis shall provide the original . the consulate may ask for original documents from applicants who are vis registered applicants or vis registered regular travellers , only where there is doubt about the authenticity of a specific document . ### the consulate shall start processing the visa application on the basis of facsimile or copies of the supporting documents . applicants who are not yet registered in the vis shall provide the original . the consulate may ask for original documents from applicants who are vis registered applicants or vis registered regular travellers , stating reasons .


### ' vis registered regular traveller ' means a visa applicant who is registered in the visa information system and who has obtained two visas within the 12 months prior to the application . ### ' vis registered regular traveller ' means a visa applicant who is registered in the visa information system and who has obtained two visas within the 18 months prior to the application .


### the central authorities consulted shall reply definitively within five calendar days after being consulted . the absence of a reply within this deadline shall mean that they have no grounds for objecting to the issuing of the visa . ### the central authorities consulted shall reply definitively within five working days after being consulted . the absence of a reply within this deadline shall mean that they have no grounds for objecting to the issuing of the visa .


### applicants referred to in paragraph 3 who have lawfully used the multiple entry visa valid for three years shall be issued a multiple entry visa valid for five years provided that the application is lodged no later than one year from the expiry date of the multiple entry visa valid for three years . ### applicants who have lawfully used the multiple entry visa referred to in paragraph 3 shall be issued a new multiple entry visa valid for at least five years provided that the application is lodged no later than one year from the expiry date of the multiple entry visa referred to in paragraph 3 .


### in the examination of an application for a uniform visa lodged by a vis registered regular traveller who has lawfully used the two previously obtained visas , it shall be presumed that the applicant fulfils the entry conditions regarding the risk of irregular immigration , a risk to the security of the member states , and the possession of sufficient means of subsistence . ### in the examination of an application for a uniform visa lodged by a vis registered regular traveller who has lawfully used the previously obtained visa , it shall be presumed that the applicant fulfils the entry conditions regarding the risk of irregular immigration , a risk to the security of the member states , and the possession of sufficient means of subsistence .


### in the examination of an application for a uniform visa lodged by a vis registered regular traveller who has lawfully used the two previously obtained visas , it shall be presumed that the applicant fulfils the entry conditions regarding the risk of irregular immigration , a risk to the security of the member states , and the possession of sufficient means of subsistence . ### in the examination of an application for a uniform visa lodged by a vis registered regular traveller , the applicant must fulfil the entry conditions regarding the risk of irregular immigration , a risk to the security of the member states , and the possession of sufficient means of subsistence .


### a visa may be issued for one or multiple entries . the period of validity of a multiple entry visa shall not exceed five years . the period of validity of a multiple entry visa may extend beyond the period of validity of the passport to which the visa is affixed . ### a visa may be issued for one or multiple entries . the period of validity of a multiple entry visa shall not exceed ten years . the period of validity of a multiple entry visa may extend beyond the period of validity of the passport to which the visa is affixed .


### ' vis registered regular traveller ' means a visa applicant who is registered in the visa information system and who has obtained two visas within the 12 months prior to the application ; ### ' vis registered regular traveller ' means a visa applicant who is a national of a third country listed in annex xy , who is registered in the visa information system and who has obtained and lawfully used three visas within the 18 months prior to the application . the commission shall be empowered to adopt delegated acts in accordance with article 48 establishing or amending the list in annex xy ;


### on the basis of information submitted pursuant to article 11 , the commission shall identify whether the values for each benchmark calculated using the principles in article 10a differ from the annual reduction referred to above by more than 0 . 5% of the 2007 - 8 value higher or lower annually . if so , that benchmark value shall be adjusted either 0 . 5% or 1 . 5% in respect of each year between 2008 and the middle of the period for which free allocation is to be made ; ### on the basis of information submitted pursuant to article 11 , the commission shall identify whether the values for each benchmark calculated using the principles in article 10a differ from the annual reduction referred to above by more than 0 . 5% of the 2007 - 8 value higher or lower annually . if so , that benchmark value shall be adjusted either 0% , 0 . 5% or 1 . 5% in respect of each year between 2008 and the middle of the period for which free allocation is to be made ;


### the fund shall be governed by an investment board and a management committee , which shall be composed of representatives from the beneficiary member states , the commission , the eib and three representatives elected by the other member states for a period of 5 years . the investment board shall be responsible to determine a union - level investment policy , appropriate financing instruments and investment selection criteria . the management committee shall be responsible for the day - to - day management of the fund . ### the individual allocations of each beneficiary member state from the modernisation fund shall be governed by the eligible beneficiary member state , assisted by the advisory board composed of representatives of the beneficiary member states , the commission , and the eib . individual decisions on financing particular projects shall be taken by the eligible beneficiary member state . day - to - day management of the fund shall be executed by the beneficiary member states . the advisory board shall be responsible for preparing the framework guidance on investment , including a union - level investment policy , appropriate financing instruments and investment selection criteria .


### it is a key union priority to establish a resilient energy union to provide secure , sustainable , competitive and affordable energy to its citizens . achieving this requires continuation of ambitious climate action with the eu ets as the cornerstone of europe’s climate policy , and progress on the other aspects of energy union17 . implementing the ambition decided in the 2030 framework contributes to delivering a meaningful carbon price and continuing to stimulate cost - efficient greenhouse gas emission reductions . __________________ 17 com80 , establishing a framework strategy for a resilient energy union with a forward - looking climate change policy ### it is a key union priority to establish a resilient energy union to provide secure , sustainable , competitive and affordable energy to its citizens . achieving this requires continuation of ambitious climate action with the eu ets as the cornerstone of europe’s climate policy , and progress on the other aspects of energy union17 . if the eu ets is to remain the main union instrument , its interaction with other union and national policies that have an impact on the demand for eu ets allowances needs to be taken into account . implementing the ambition decided in the 2030 framework and adequately addressing the progress on other aspects of the energy union contributes to delivering a meaningful carbon price and continuing to stimulate cost - efficient greenhouse gas emission reductions . __________________ 17 com80 , establishing a framework strategy for a resilient energy union with a forward - looking climate change policy


### sectors and sub - sectors where the product from multiplying their intensity of trade with third countries by their emission intensity is above 0 . 18 may be included in the group referred to in paragraph 1 , on the basis of a qualitative assessment using the following criteria : ### sectors and sub - sectors where the product from multiplying their intensity of trade with third countries by their emission intensity is above 0 , 12 may be included in the group referred to in paragraph 1 , on the basis of a qualitative assessment using the following criteria :


### ' 3 . member states shall determine the use of revenues generated from the auctioning of allowances . at least 50 % of the revenues generated from the auctioning of allowances referred to in paragraph 2 , including all revenues from the auctioning referred to in paragraph 2 , points and , or the equivalent in financial value of these revenues , should be used for one or more of the following : ' ### in paragraph 3 , the introductory part is replaced by the following : ' 3 . member states shall determine the use of revenues generated from the auctioning of allowances . 100 % of the revenues generated from the auctioning of allowances referred to in paragraph 2 , including all revenues from the auctioning referred to in paragraph 2 , points and , or the equivalent in financial value of these revenues , shall be used for one or more of the following : '


### ' 1 . following consultation with the operator , member states may exclude from the community scheme installations which have reported to the competent authority emissions of less than 25 000 tonnes of carbon dioxide equivalent and , where they carry out combustion activities , have a rated thermal input below 35 mw , excluding emissions from biomass , in each of the three years preceding the notification under point , and which are subject to measures that will achieve an equivalent contribution to emission reductions , if the member state concerned complies with the following conditions : it notifies the commission of each such installation , specifying the equivalent measures applying to that installation that will achieve an equivalent contribution to emission reductions that are in place , before the list of installations pursuant to article 11 has to be submitted and at the latest when this list is submitted to the commission ; it confirms that monitoring arrangements are in place to assess whether any installation emits 25 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year . member states may allow simplified monitoring , reporting and verification measures for installations with average annual verified emissions between 2008 and 2010 which are below 5 000 tonnes a year , in accordance with article 14 ; it confirms that if any installation emits 25 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year or the measures applying to that installation that will achieve an equivalent contribution to emission reductions are no longer in place , the installation will be reintroduced into the community scheme ; it publishes the information referred to in points , and for public comment . hospitals may also be excluded if they undertake equivalent measures . ' ### in article 27 , paragraph 1 is replaced by the following : ' 1 . following consultation with the operator , and subject to its agreement , member states may exclude from the eu ets installations which have reported to the competent authority emissions of less than 50 000 tonnes of carbon dioxide equivalent and , where they carry out combustion activities , have a rated thermal input below 35 mw , excluding emissions from biomass , in each of the three years preceding the notification under point , and which are subject to measures that will achieve an equivalent contribution to emission reductions , if the member state concerned complies with the following conditions : it notifies the commission of each such installation , specifying the equivalent measures that are in place applying to that installation and that are aimed at making an equivalent contribution to emission reductions that are in place and specifying how those measures would not result in higher compliance costs for such installations , before the list of installations pursuant to article 11 has to be submitted and at the latest when this list is submitted to the commission ; it confirms that monitoring arrangements are in place to assess whether any installation emits 50 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year . member states may allow simplified monitoring , reporting and verification measures for installations with average annual verified emissions between 2008 and 2010 which are below 5 000 tonnes a year , in accordance with article 14 ; it confirms that if any installation emits 50 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year or the measures applying to that installation that are aimed at making an equivalent contribution to emission reductions are no longer in place , the installation will be reintroduced into the eu ets ; it publishes the information referred to in points , and for public comment . hospitals may also be excluded if they undertake equivalent measures . '


### the value of the intended investments shall at least equal the market value of the free allocation , while taking into account the need to limit directly linked price increases . the market value shall be the average of the price of allowances on the common auction platform in the preceding calendar year . ### the value of the intended investments shall at least equal the market value of the free allocation , while taking into account the need to limit directly linked price increases . the market value shall be the average of the price of allowances on the common auction platform in the preceding calendar year . at least 75% of the relevant costs of the intended investments shall be supported .


### the benchmark values for free allocation shall be adjusted in order to avoid windfall profits and reflect technological progress in the period between 2007 - 8 and each later period for which free allocations are determined in accordance with article 11 . this adjustment shall reduce the benchmark values set by the act adopted pursuant to article 10a by 1 % of the value that was set based on 2007 - 8 data in respect of each year between 2008 and the middle of the relevant period of free allocation , unless : ### account being taken of the total carbon content of waste gas used for electricity production , the benchmark values for free allocation for the fourth trading period shall be laid down by the commission by 31 december 2017 and shall reflect technological progress in 2014 and 2015 . for the fourth trading period , the benchmark values shall be determined solely on the basis of average emissions from the most efficient 10% of installations . the benchmark values for the fourth period shall be developed with the involvement of a forum made up of member state representatives and the industries concerned . the forum shall be set up by the commission ; it shall be regularly convened and involved in the practical arrangements for the development of the benchmark values . the benchmark values shall be set on the basis of the forum ' s input . the commission shall document the development process and publish the documentation together with the benchmark values .


### the benchmark values for free allocation shall be adjusted in order to avoid windfall profits and reflect technological progress in the period between 2007 - 8 and each later period for which free allocations are determined in accordance with article 11 . this adjustment shall reduce the benchmark values set by the act adopted pursuant to article 10a by 1% of the value that was set based on 2007 - 8 data in respect of each year between 2008 and the middle of the relevant period of free allocation , unless : ### the benchmark values for free allocation shall be updated in order to avoid windfall profits and reflect technological progress by 31 december 2018 , and before the beginning of each later period for which free allocations are determined in accordance with article 11 . this adjustment shall be based on recent verified production and emission data of installations for the period of 2016 - 2017 .


### 400 million allowances shall be available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe capture and geological storage of co2 as well as demonstration projects of innovative renewable energy technologies , in the territory of the union . ### 400 million allowances shall be available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe ccs and ccu as well as demonstration projects of innovative renewable energy technologies , in the territory of the union .


### the benchmark values for free allocation shall be adjusted in order to avoid windfall profits and reflect technological progress in the period between 2007 - 8 and each later period for which free allocations are determined in accordance with article 11 . this adjustment shall reduce the benchmark values set by the act adopted pursuant to article 10a by 1% of the value that was set based on 2007 - 8 data in respect of each year between 2008 and the middle of the relevant period of free allocation , unless : ### the benchmark values for free allocation shall be adjusted in order to avoid windfall profits and reflect technological progress in the period between 2017 and 2018 and each later period for which free allocations are determined in accordance with article 11 .


### on the basis of a cost - benefit analysis , ensure a net positive gain in terms of emission reduction and realise a pre - determined significant level of co2 reductions ; ### on the basis of a cost - benefit analysis , ensure a net positive gain in terms of emission reduction ;


### the auctioning of allowances remains the general rule , with free allocation as the exception . consequently , and as confirmed by the european council , the share of allowances to be auctioned , which was 57% over the period 2013 - 2020 , should not be reduced . the commission ' s impact assessment18 provides details on the auction share and specifies that this 57% share is made up of allowances auctioned on behalf of member states , including allowances set aside for new entrants but not allocated , allowances for modernising electricity generation in some member states and allowances which are to be auctioned at a later point in time because of their placement in the market stability reserve established by decision 2015 / … of the european parliament and of the council19 . __________________ 18 secxx 19 decision 2015 / … of the european parliament and of the council of … concerning the establishment and operation of a market stability reserve for the union greenhouse gas emission trading scheme and amending directive 2003 / 87 / ec . ### the auctioning of allowances remains the general rule , however , full free allocation should be ensured for the most efficient installations in sectors at risk of carbon leakage .


### to preserve the environmental benefit of emission reductions in the union while actions by other countries do not provide comparable incentives to industry to reduce emissions , free allocation should continue to installations in sectors and sub - sectors at genuine risk of carbon leakage . experience gathered during the operation of the eu ets confirmed that sectors and sub - sectors are at risk of carbon leakage to varying degrees , and that free allocation has prevented carbon leakage . while some sectors and sub - sectors can be deemed at a higher risk of carbon leakage , others are able to pass on a considerable share of the costs of allowances to cover their emissions in product prices without losing market share and only bear the remaining part of the costs so that they are at a low risk of carbon leakage . the commission should determine and differentiate the relevant sectors based on their trade intensity and their emissions intensity to better identify sectors at a genuine risk of carbon leakage . where , based on these criteria , a threshold determined by taking into account the respective possibility for sectors and sub - sectors concerned to pass on costs in product prices is exceeded , the sector or sub - sector should be deemed at risk of carbon leakage . others should be considered at a low risk or at no risk of carbon leakage . taking into account the possibilities for sectors and sub - sectors outside of electricity generation to pass on costs in product prices should also reduce windfall profits . ### to preserve the environmental benefit of emission reductions in the union while actions by other countries do not provide comparable incentives to industry to reduce emissions , free allocation should continue to installations in sectors and sub - sectors at genuine risk of carbon leakage . experience gathered during the operation of the eu ets confirmed that sectors and sub - sectors are at risk of carbon leakage to varying degrees , and that free allocation has prevented carbon leakage . while some sectors and sub - sectors can be deemed at a higher risk of carbon leakage , others are able to pass on a considerable share of the costs of allowances to cover their emissions in product prices without losing market share and only bear the remaining part of the costs so that they are at a low risk of carbon leakage . the commission should determine and differentiate the relevant sectors based on their trade intensity and their emissions intensity to better identify sectors at a genuine risk of carbon leakage , taking into account that sectors that increase their trade intensity because of rising exports , would not be expected to be subject to an increased risk of carbon leakage . however , where , based on these criteria , a threshold determined by taking into account the respective possibility for sectors and sub - sectors concerned to pass on costs in product prices is exceeded , the sector or sub - sector should be deemed at risk of carbon leakage . others should be considered at a low risk or at no risk of carbon leakage . taking into account the possibilities for sectors and sub - sectors outside of electricity generation to pass on costs in product prices without losing market share should also reduce windfall profits .


### ' 1 . following consultation with the operator , member states may exclude from the community scheme installations which have reported to the competent authority emissions of less than 25 000 tonnes of carbon dioxide equivalent and , where they carry out combustion activities , have a rated thermal input below 35 mw , excluding emissions from biomass , in each of the three years preceding the notification under point , and which are subject to measures that will achieve an equivalent contribution to emission reductions , if the member state concerned complies with the following conditions : it notifies the commission of each such installation , specifying the equivalent measures applying to that installation that will achieve an equivalent contribution to emission reductions that are in place , before the list of installations pursuant to article 11 has to be submitted and at the latest when this list is submitted to the commission ; it confirms that monitoring arrangements are in place to assess whether any installation emits 25 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year . member states may allow simplified monitoring , reporting and verification measures for installations with average annual verified emissions between 2008 and 2010 which are below 5 000 tonnes a year , in accordance with article 14 ; it confirms that if any installation emits 25 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year or the measures applying to that installation that will achieve an equivalent contribution to emission reductions are no longer in place , the installation will be reintroduced into the community scheme ; it publishes the information referred to in points , and for public comment . hospitals may also be excluded if they undertake equivalent measures . ' ### in article 27 , paragraph 1 is replaced by the following : ' 1 . following consultation with the operator , member states may exclude from the community scheme installations which have reported to the competent authority emissions of less than 50 000 tonnes of carbon dioxide equivalent and , where they carry out combustion activities , have a rated thermal input below 75 mw , excluding emissions from biomass , in each of the three years preceding the notification under point , and which are subject to measures that will achieve an equivalent contribution to emission reductions , if the member state concerned complies with the following conditions : it notifies the commission of each such installation , specifying the equivalent measures applying to that installation that will achieve an equivalent contribution to emission reductions that are in place , before the list of installations pursuant to article 11 has to be submitted and at the latest when this list is submitted to the commission ; it confirms that monitoring arrangements are in place to assess whether any installation emits 50 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year . member states may allow simplified monitoring , reporting and verification measures for installations with average annual verified emissions between 2008 and 2010 which are below 5 000 tonnes a year , in accordance with article 14 ; it confirms that if any installation emits 50 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year or the measures applying to that installation that will achieve an equivalent contribution to emission reductions are no longer in place , the installation will be reintroduced into the community scheme ; it publishes the information referred to in points , and for public comment . hospitals may also be excluded if they undertake equivalent measures . '


### ' the measures referred to in the first subparagraph shall , to the extent feasible , determine community - wide ex - ante benchmarks so as to ensure that allocation takes place in a manner that provides incentives for reductions in greenhouse gas emissions and energy efficient techniques , by taking account of the most efficient techniques , substitutes , alternative production processes , high efficiency cogeneration , efficient energy recovery of waste gases , use of biomass and capture and storage of co2 , where such facilities are available , and shall not provide incentives to increase emissions . no free allocation shall be made in respect of any electricity production , except for cases falling within article 10c , and electricity produced from waste gases . ' ### in paragraph 1 , the third subparagraph is replaced by the following : ' the measures referred to in the first subparagraph shall , to the extent feasible , determine union - wide ex - ante benchmarks so as to ensure that allocation takes place in a manner that provides incentives for reductions in greenhouse gas emissions and energy efficient techniques , by taking account of the most efficient techniques , substitutes , alternative production processes , high efficiency cogeneration , efficient energy recovery of waste gases , use of biomass , ccs and ccu where such facilities are available , and shall not provide incentives to increase emissions . no free allocation shall be made in respect of any electricity production , except for cases falling within article 10c , electricity produced for their own use by non - grid connected offshore oil and gas platforms as well as electricity produced from waste gases . '


### ensure that only projects which contribute to the diversification of their energy mix and sources of supply , the necessary restructuring , environmental upgrading and retrofitting of the infrastructure , clean technologies and modernisation of the energy production , transmission and distribution sectors are eligible to bid ; ### ensure that are eligible to bid only projects which contribute to : - the diversification of their energy mix and sources of supply , - the necessary restructuring , environmental upgrading and retrofitting of the infrastructure , - clean technologies , - use of cogeneration and / or - modernisation of the energy production , transmission and distribution sectors ;


### ' following consultation with the operator , member states may exclude from the community scheme installations which have reported to the competent authority emissions of less than 25 000 tonnes of carbon dioxide equivalent and , where they carry out combustion activities , have a rated thermal input below 35 mw , excluding emissions from biomass , in each of the three years preceding the notification under point , and which are subject to measures that will achieve an equivalent contribution to emission reductions , if the member state concerned complies with the following conditions : it notifies the commission of each such installation , specifying the equivalent measures applying to that installation that will achieve an equivalent contribution to emission reductions that are in place , before the list of installations pursuant to article 11 has to be submitted and at the latest when this list is submitted to the commission ; it confirms that monitoring arrangements are in place to assess whether any installation emits 25 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year . member states may allow simplified monitoring , reporting and verification measures for installations with average annual verified emissions between 2008 and 2010 which are below 5 000 tonnes a year , in accordance with article 14 ; it confirms that if any installation emits 25 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year or the measures applying to that installation that will achieve an equivalent contribution to emission reductions are no longer in place , the installation will be reintroduced into the community scheme ; it publishes the information referred to in points , and for public comment . hospitals may also be excluded if they undertake equivalent measures . ' ### in article 27 , paragraph 1 is replaced by the following : ' following consultation with the operator , member states may exclude from the eu ets installations which have reported to the competent authority emissions of less than 50 000 tonnes of carbon dioxide equivalent , excluding emissions from biomass , in each of the three years preceding the notification under point , and which are subject to measures that will achieve an equivalent contribution to emission reductions , if the member state concerned complies with the following conditions : it notifies the commission of each such installation , specifying the equivalent measures applying to that installation that will achieve an equivalent contribution to emission reductions that are in place , before the list of installations pursuant to article 11 has to be submitted and at the latest when this list is submitted to the commission ; it confirms that monitoring arrangements are in place to assess whether any installation emits 50 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year . member states may allow simplified monitoring , reporting and verification measures for installations with average annual verified emissions between 2008 and 2010 which are below 5 000 tonnes a year , in accordance with article 14 ; it confirms that if any installation emits 50 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year or the measures applying to that installation that will achieve an equivalent contribution to emission reductions are no longer in place , the installation will be reintroduced into the eu ets ; it makes the information referred to in points , and available to the public . hospitals may also be excluded if they undertake equivalent measures . '


### 2% of the total quantity of allowances between 2021 and 2030 shall be auctioned to establish a fund to improve energy efficiency and modernise the energy systems of certain member states as set out in article 10d of this directive . ### 2% of the total quantity of allowances to be auctioned between 2021 and 2030 shall be made available from the auctioning volume to establish a fund to improve energy efficiency and modernise the energy systems of certain member states as set out in article 10d of this directive .


### ' 1 . following consultation with the operator , member states may exclude from the community scheme installations which have reported to the competent authority emissions of less than 25 000 tonnes of carbon dioxide equivalent and , where they carry out combustion activities , have a rated thermal input below 35 mw , excluding emissions from biomass , in each of the three years preceding the notification under point , and which are subject to measures that will achieve an equivalent contribution to emission reductions , if the member state concerned complies with the following conditions : it notifies the commission of each such installation , specifying the equivalent measures applying to that installation that will achieve an equivalent contribution to emission reductions that are in place , before the list of installations pursuant to article 11 has to be submitted and at the latest when this list is submitted to the commission ; it confirms that monitoring arrangements are in place to assess whether any installation emits 25 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year . member states may allow simplified monitoring , reporting and verification measures for installations with average annual verified emissions between 2008 and 2010 which are below 5 000 tonnes a year , in accordance with article 14 ; it confirms that if any installation emits 25 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year or the measures applying to that installation that will achieve an equivalent contribution to emission reductions are no longer in place , the installation will be reintroduced into the community scheme ; it publishes the information referred to in points , and for public comment . hospitals may also be excluded if they undertake equivalent measures . ' ### in article 27 , paragraph 1 is replaced by the following : ' 1 . following consultation with the operator and subject to its agreement , member states may exclude from the eu ets installations which have reported to the competent authority emissions of less than 50 000 tonnes of carbon dioxide equivalent and , where they carry out combustion activities , have a rated thermal input below 35 mw , excluding emissions from biomass , in each of the three years preceding the notification under point , and which are subject to measures that will achieve an equivalent contribution to emission reductions , if the member state concerned complies with the following conditions : it notifies the commission of each such installation , specifying the equivalent measures applying to that installation that will achieve an equivalent contribution to emission reductions that are in place and specifying how those measures would not result in higher compliance costs for such installations , before the list of installations pursuant to article 11 has to be submitted and at the latest when this list is submitted to the commission it confirms that monitoring arrangements are in place to assess whether any installation emits 50 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year . member states may allow simplified monitoring , reporting and verification measures for installations with average annual verified emissions between 2008 and 2010 below 5 000 tonnes a year , in accordance with article 14 ; it confirms that if any installation emits 50 000 tonnes or more of carbon dioxide equivalent , excluding emissions from biomass , in any one calendar year or the measures applying to that installation that are aimed at making an equivalent contribution to emission reductions are no longer in place , the installation will be reintroduced into the eu ets ; it publishes the information referred to in points , and for public comment . hospitals may also be excluded if they undertake equivalent measures . '


### sectors and sub - sectors where the product from multiplying their intensity of trade with third countries by their emission intensity is above 0 . 18 may be included in the group referred to in paragraph 1 , on the basis of a qualitative assessment using the following criteria : ### sectors and sub - sectors where the product from multiplying their intensity of trade with third countries by their emission intensity is below 0 , 2 may be included in the group referred to in paragraph 1 , on the basis of a qualitative assessment , based on a detailed impact assessment and taking into account sectors and sub - sectors at the relevant level , either at prodcom or nace codes , using the following criteria :


### ' 3 . member states shall determine the use of revenues generated from the auctioning of allowances . at least 50 % of the revenues generated from the auctioning of allowances referred to in paragraph 2 , including all revenues from the auctioning referred to in paragraph 2 , points and , or the equivalent in financial value of these revenues , should be used for one or more of the following : ' ### in paragraph 3 , the introductory part is replaced by the following : ' 3 . member states shall determine the use of revenues generated from the auctioning of allowances . at least 75% of the total revenues generated from the auctioning of allowances referred to in paragraph 2 , including all revenues from the auctioning referred to in paragraph 2 , points and , or the equivalent in financial value of those revenues , shall be used for one or more of the following : '


### in addition , 50 million unallocated allowances from the market stability reserve established by decision 2015 / … shall supplement any existing resources remaining under this paragraph for projects referred to above , with projects in all member states including small - scale projects , before 2021 . projects shall be selected on the basis of objective and transparent criteria . ### in addition , 50 million unallocated allowances from the market stability reserve established by decision 2015 / 1814 shall supplement any existing resources remaining under this paragraph as a consequence of funds resulting from ner300 allowance auctions for the period between 2013 and 2020 not having been used , for projects referred to in subparagraphs 1 and 2 , with projects in all member states including small - scale projects , before 2021 and from 2018 onwards . projects shall be selected on the basis of objective and transparent criteria , taking into account their relevance in relation to the decarbonisation of the sectors concerned . projects supported under this subparagraph may also receive further support under subparagraphs 1 and 2 .


### the main long - term incentive from this directive for the capture and storage of co2 , new renewable energy technologies and breakthrough innovation in low - carbon technologies and processes is the carbon price signal it creates and that allowances will not need to be surrendered for co2 emissions which are permanently stored or avoided . in addition , to supplement the resources already being used to accelerate demonstration of commercial ccs facilities and innovative renewable energy technologies , eu ets allowances should be used to provide guaranteed rewards for deployment of ccs facilities , new renewable energy technologies and industrial innovation in low - carbon technologies and processes in the union for co2 stored or avoided on a sufficient scale , provided an agreement on knowledge sharing is in place . the majority of this support should be dependent on verified avoidance of greenhouse gas emissions , while some support may be given when pre - determined milestones are reached taking into account the technology deployed . the maximum percentage of project costs to be supported may vary by category of project . ### the main long - term incentive from this directive for carbon capture and storage or carbon capture and use , new renewable energy technologies and breakthrough innovation in low - carbon technologies and processes is the carbon price signal it creates and that allowances will not need to be surrendered for co2 emissions which are permanently stored , reused in industrial processes or avoided . in addition , to supplement the resources already being used to accelerate demonstration of commercial ccs / ccu facilities and innovative renewable energy technologies , eu ets allowances should be used to provide guaranteed rewards for deployment of ccs / ccu facilities , new renewable energy technologies and industrial innovation in low - carbon technologies and processes in the union for co2 stored , reused or avoided on a sufficient scale , provided an agreement on knowledge sharing is in place . this support should be dependent on verified avoidance of greenhouse gas emissions or when pre - determined milestones are reached taking into account the technology deployed . the maximum percentage of project costs to be supported may vary by category of project .


### are additional , clearly respond to replacement and modernisation needs and do not supply a market - driven increase in energy demand ; ### clearly respond to replacement and modernisation needs and do not supply a market - driven increase in energy demand ;


### the investment board shall elect a representative from the commission as chairman . the investment board shall strive to take decisions by consensus . if the investment board is not able to decide by consensus within a deadline set by the chairman , the investment board shall take a decision by simple majority . ### the chairmanship of the advisory board shall be held by the beneficiary member states and be based on a one - year - term rotation model . the advisory board shall strive to take decisions by consensus . if the advisory board is not able to decide by consensus within a deadline set by the chairman , the investment board shall take a decision by simple majority .


### on the basis of information submitted pursuant to article 11 , the commission shall identify whether the values for each benchmark calculated using the principles in article 10a differ from the annual reduction referred to above by more than 0 . 5% of the 2007 - 8 value higher or lower annually . if so , that benchmark value shall be adjusted either 0 . 5% or 1 . 5% in respect of each year between 2008 and the middle of the period for which free allocation is to be made ; ### benchmarks in individual sectors and subsectors shall be updated based on the average of the verified emissions of the top 10 % most efficient installations of the sector or subsector in the union during 2017 and 2018 . benchmarks shall be set on the basis of information submitted pursuant to article 11 . the benchmark values shall be adjusted by 1% in respect of each year between the latest reference period and the middle of the relevant period of free allocation . the commission shall identify whether the values for each benchmark calculated using the principles in article 10a differ from the annual reduction referred to above by more than 0 . 5% of the updated value higher or lower annually . if so , that benchmark value shall be adjusted either 0 . 5% or 1 . 5% in respect of each year between the update and the middle of the period for which free allocation is to be made . for sectors with unavoidable process emissions and where real production and efficiency data using best available technology proves that emissions cannot be lowered the benchmark shall not be adjusted ;


### the main long - term incentive from this directive for the capture and storage of co2 , new renewable energy technologies and breakthrough innovation in low - carbon technologies and processes is the carbon price signal it creates and that allowances will not need to be surrendered for co2 emissions which are permanently stored or avoided . in addition , to supplement the resources already being used to accelerate demonstration of commercial ccs facilities and innovative renewable energy technologies , eu ets allowances should be used to provide guaranteed rewards for deployment of ccs facilities , new renewable energy technologies and industrial innovation in low - carbon technologies and processes in the union for co2 stored or avoided on a sufficient scale , provided an agreement on knowledge sharing is in place . the majority of this support should be dependent on verified avoidance of greenhouse gas emissions , while some support may be given when pre - determined milestones are reached taking into account the technology deployed . the maximum percentage of project costs to be supported may vary by category of project . ### the main long - term incentive from this directive for the capture and storage and carbon capture and use of co2 , new renewable energy technologies and breakthrough innovation in sustainable low - carbon technologies and processes is the carbon price signal it creates and that allowances will not need to be surrendered for co2 emissions which are permanently stored or avoided . in addition , to supplement the resources already being used to accelerate demonstration of commercial ccs and ccu facilities and innovative renewable energy technologies , eu ets allowances should be used to provide guaranteed rewards for deployment of ccs and ccu facilities , new renewable energy technologies and industrial innovation in sustainable low - carbon technologies and processes in the union for co2 stored or avoided on a sufficient scale , provided an agreement on knowledge sharing is in place . the majority of this support should be dependent on verified avoidance of greenhouse gas emissions , while some support may be given when pre - determined milestones are reached taking into account the technology deployed . the maximum percentage of project costs to be supported may vary by category of project .


### the second paragraph of paragraph 1 is replaced by the following : ' the commission shall be empowered to adopt a delegated act in accordance with article 23 . this act shall also provide for additional allocation from the new entrants reserve for significant production increases by applying the same thresholds and allocation adjustments as apply in respect of partial cessations of operation . ' ; ### in paragraph 1 , the first and second subparagraphs are replaced by the following : ' 1 . the commission is empowered to adopt delegated acts in accordance with article 30b to supplement this directive and concerning union - wide and fully - harmonised measures for the allocation of the allowances referred to in paragraphs 4 , 5 , 7 and 12 , including any necessary provisions for a harmonised application of paragraph 19 . these delegated acts shall also provide for additional allocation from the new entrants reserve for significant production increases by applying the thresholds defined in paragraph 7 . the threshold and allocation adjustments that apply to significant production increases shall also apply to partial cessations of operation . ' ;


### the commission shall be empowered to adopt a delegated act in accordance with article 23 . this act shall also provide for additional allocation from the new entrants reserve for significant production increases by applying the same thresholds and allocation adjustments as apply in respect of partial cessations of operation . ### the commission is empowered to adopt a delegated act in accordance with article 23 to supplement this directive . this act shall also provide for additional allocation from the new entrants reserve for production variations by applying the same thresholds and allocation adjustments in respect of partial cessations of operation .


### in order to reflect technological progress in the sectors concerned and adjust them to the relevant period of allocation , provision should be made for the values of the benchmarks for free allocations to installations , determined on the basis of data from the years 2007 - 8 , to be updated in line with observed average improvement . for reasons of predictability , this should be done through applying a factor that represents the best assessment of progress across sectors , which should then take into account robust , objective and verified data from installations so that sectors whose rate of improvement differs considerably from this factor have a benchmark value closer to their actual rate of improvement . where the data shows a difference from factor reduction of more than 0 . 5% of the 2007 - 8 value higher or lower per year over the relevant period , the related benchmark value shall be adjusted by that percentage . to ensure a level playing field for the production of aromatics , hydrogen and syngas in refineries and chemical plants , the benchmark values for aromatics , hydrogen and syngas should continue to be aligned to the refineries benchmarks . ### in order to reflect technological progress in the sectors concerned and adjust them to the relevant period of allocation , provision should be made for the values of the benchmarks for free allocations to installations , determined on the basis of recent verified data from the years 2016 - 2017 . for reasons of predictability and reliability , adjustment should be done 2 years before the beginning of each allocation period taking into account robust , objective and recently verified data from installations . to ensure a level playing field for the production of aromatics , hydrogen and syngas in refineries and chemical plants , the benchmark values for aromatics , hydrogen and syngas should continue to be aligned to the refineries benchmarks .


### starting in 2021 , the linear factor shall be 2 . 2% . ### starting in 2021 , the quantity of allowances shall decrease by a linear factor of 4% compared to the average annual quantity of total verified emissions for the period 2016 - 2018 . the commission shall review the linear factor and submit a proposal , where appropriate , to the european parliament and to the council within six months of facilitative dialogue to be convened under the unfccc in 2018 , within six months of the global stocktake foreseen in 2023 and on the occasion of all of subsequent global stocktakes thereafter .


### by derogation from article 10a to , member states which had in 2013 a gdp per capita in &#8364 ; at market prices below 60% of the union average may give a transitional free allocation to installations for electricity production for the modernisation of the energy sector . ### by derogation from article 10a to , member states which had in 2013 a gdp per capita in eur at market prices below 60% of the union average and have fully transposed and implemented the third energy package1a may give a transitional free allocation to installations for electricity production for the modernisation of the energy sector . __________________ 1a the third energy package contains two directives and three regulations : directive 2009 / 72 / ec of the european parliament and of the council of 13 july 2009 concerning common rules for the internal market in electricity and repealing directive 2003 / 54 / ec ; directive 2009 / 73 / ec of the european parliament and of the council of 13 july 2009 concerning common rules for the internal market in natural gas and repealing directive 2003 / 55 / ec ; regulation no 714 / 2009 of the european parliament and of the council of 13 july 2009 on conditions for access to the network for cross - border exchanges in electricity and repealing regulation no 1228 / 2003 ; regulation no 715 / 2009 of the european parliament and of the council of 13 july 2009 on conditions for access to the natural gas transmission networks and repealing regulation no 1775 / 2005 and regulation no 713 / 2009 of the european parliament and of the council of 13 july 2009 establishing an agency for the cooperation of energy regulators .


### the benchmark values for free allocation shall be adjusted in order to avoid windfall profits and reflect technological progress in the period between 2007 - 8 and each later period for which free allocations are determined in accordance with article 11 . this adjustment shall reduce the benchmark values set by the act adopted pursuant to article 10a by 1% of the value that was set based on 2007 - 8 data in respect of each year between 2008 and the middle of the relevant period of free allocation , unless : ### the benchmark values for free allocation shall be the average performance of the 10 % most efficient installations in a sector or subsector operating in the union in the years 2013 to 2017 . benchmarks shall be set after consulting the relevant stakeholders to take into account the real economic and technical development of industrial plants and processes in the individual sectors and subsectors .


### the european council confirmed that the modalities , including transparency , of the optional free allocation to modernise the energy sector in certain member states should be improved . investments with a value of €10 million or more should be selected by the member state concerned through a competitive bidding process on the basis of clear and transparent rules to ensure that free allocation is used to promote real investments modernising the energy sector in line with the energy union objectives . investments with a value of less than €10 million should also be eligible for funding from the free allocation . the member state concerned should select such investments based on clear and transparent criteria . the results of this selection process should be subject to public consultation . the public should be duly kept informed at the stage of the selection of investment projects as well as of their implementation . ### the european council confirmed that the modalities , including transparency , of the optional free allocation to modernise the energy sector in certain member states should be improved . investments with a value of eur 20 million or more should be selected by the member state concerned through a competitive bidding process on the basis of clear and transparent rules to ensure that free allocation is used to promote real investments modernising the energy sector in line with the energy union objectives . the cogeneration of heat and power should also be eligible for the optional free allocation to modernise the energy sector . investments with a value of less than eur 20 million should also be eligible for funding from the free allocation . the member state concerned should select such investments based on clear and transparent criteria . the selection process should be subject to public consultation and the results of such selection process should be made publically available . the public should be duly kept informed at the stage of the selection of investment projects as well as of their implementation .


### 400 million allowances shall be available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe capture and geological storage of co2 as well as demonstration projects of innovative renewable energy technologies , in the territory of the union . ### 400 million allowances shall be available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe ccs and ccu as well as demonstration projects of innovative renewable energy technologies , in the territory of the union .


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


### by way of derogation regarding the benchmark values for aromatics , hydrogen and syngas , these benchmark values shall be adjusted by the same percentage as the refineries benchmarks in order to preserve a level playing field for producers of these products . ### free allocation shall only be given to sectors and subsectors for which data is provided , collected and used according to a harmonised methodology within the union institutions and member states in order to ensure that the data used to calculate achievement of sector benchmarks and free allocation is accurate .


### ensure that only projects which contribute to the diversification of their energy mix and sources of supply , the necessary restructuring , environmental upgrading and retrofitting of the infrastructure , clean technologies and modernisation of the energy production , transmission and distribution sectors are eligible to bid ; ### ensure that are eligible to bid only projects which contribute to : - the diversification of their energy mix and sources of supply , - the necessary restructuring , environmental upgrading and retrofitting of the infrastructure , - clean technologies , - use of cogeneration and / or - modernisation of the energy production , transmission and distribution sectors ;


### by derogation from article 10a to , member states which had in 2013 a gdp per capita in &#8364 ; at market prices below 60% of the union average may give a transitional free allocation to installations for electricity production for the modernisation of the energy sector . ### by derogation from article 10a to , member states which had in 2013 a gdp per capita in eur at market prices below 60% of the union average may give a transitional free allocation to electricity and heat generators , including district heating , for the modernisation of the energy sector .


### where investments with a value of less than €10 million are supported with free allocation , the member state shall select projects based on objective and transparent criteria . the results of this selection process shall be published for public comment . on this basis , the member state concerned shall establish and submit a list of investments to the commission by 30 june 2019 . ### where investments with a value of less than eur 10 million are supported with free allocation , the member state shall select projects based on objective and transparent criteria . those criteria shall be subject to public consultation , ensuring full transparency and accessibility of relevant documents , and fully take into account comments raised by stakeholders . the results of this selection process shall be published for public consultation . on this basis , the member state concerned shall establish and submit a list of investments to the commission by 30 june 2019 .


### ' 2 . for the period referred to in article 13 beginning on 1 january 2013 , and , in the absence of any amendments following the review referred to in article 30 , for each subsequent period , the total quantity of allowances to be allocated to aircraft operators shall be equivalent to 95 % of the historical aviation emissions multiplied by the number of years in the period . this percentage may be reviewed as part of the general review of this directive . ' ### in article 3c , paragraph 2 is replaced by the following : ' 2 . in the absence of any amendments following the review referred to in article 30 , the total quantity of allowances for aviation activities shall decrease annually to achieve the same emission reductions by 2030 as the other activities covered by the eu ets . '


### ' the measures referred to in the first subparagraph shall , to the extent feasible , determine community - wide ex - ante benchmarks so as to ensure that allocation takes place in a manner that provides incentives for reductions in greenhouse gas emissions and energy efficient techniques , by taking account of the most efficient techniques , substitutes , alternative production processes , high efficiency cogeneration , efficient energy recovery of waste gases , use of biomass and capture and storage of co2 , where such facilities are available , and shall not provide incentives to increase emissions . no free allocation shall be made in respect of any electricity production , except for cases falling within article 10c , and electricity produced from waste gases . ' ### in paragraph 1 , the third subparagraph is replaced by the following : ' the measures referred to in the first subparagraph shall , to the extent feasible , determine union - wide ex - ante benchmarks so as to ensure that allocation takes place in a manner that provides incentives for reductions in greenhouse gas emissions and energy efficient techniques , by taking account of the most efficient techniques , substitutes , alternative production processes , high efficiency cogeneration , efficient energy recovery of waste gases , use of biomass , ccs and ccu where such facilities are available , and shall not provide incentives to increase emissions . no free allocation shall be made in respect of any electricity production , except for cases falling within article 10c , electricity produced for their own use by non - grid connected offshore oil and gas platforms as well as electricity produced from waste gases . '


### member states should partially compensate , in accordance with state aid rules , certain installations in sectors or sub - sectors which have been determined to be exposed to a significant risk of carbon leakage because of costs related to greenhouse gas emissions passed on in electricity prices . the protocol and accompanying decisions adopted by the conference of the parties in paris need to provide for the dynamic mobilisation of climate finance , technology transfer and capacity building for eligible parties , particularly those with least capabilities . public sector climate finance will continue to play an important role in mobilising resources after 2020 . therefore , auction revenues should also be used for climate financing actions in vulnerable third countries , including adaptation to the impacts of climate . the amount of climate finance to be mobilised will also depend on the ambition and quality of the proposed intended nationally determined contributions , subsequent investment plans and national adaptation planning processes . member states should also use auction revenues to promote skill formation and reallocation of labour affected by the transition of jobs in a decarbonising economy . ### the protocol and accompanying decisions adopted by the conference of the parties in paris need to provide for the dynamic mobilisation of climate finance , technology transfer and capacity building for eligible parties , particularly those with least capabilities . public sector climate finance will continue to play an important role in mobilising resources after 2020 . therefore , auction revenues should also be used for climate financing actions in vulnerable third countries , including adaptation to the impacts of climate . the amount of climate finance to be mobilised will also depend on the ambition and quality of the proposed intended nationally determined contributions , subsequent investment plans and national adaptation planning processes . member states should also address the social aspects of decarbonising their economies and use auction revenues to promote skill formation and reallocation of labour affected by the transition of jobs in a decarbonising economy .


### other sectors and sub - sectors are considered to be able to pass on more of the cost of allowances in product prices , and shall be allocated allowances free of charge for the period up to 2030 at 30% of the quantity determined in accordance with the measures adopted pursuant to article 10a . ### other sectors and sub - sectors are considered to be able to pass on more of the cost of allowances in product prices , and shall not be allocated allowances free of charge for the period up to 2030 .


### ' to fund financial measures in favour of sectors or subsectors that are exposed to a genuine risk of carbon leakage due to significant indirect costs that are actually incurred from greenhouse gas emission costs passed on in electricity prices , provided that these measures meet the conditions set out in article 10a ; ' ### ' to fund renewable energies and aid sectors or subsectors that are exposed to a genuine risk of carbon leakage due to significant indirect costs to use renewable power and reduce costs incurred from greenhouse gas emission costs passed on in electricity prices ; '


### by derogation from article 10a to , member states which had in 2013 a gdp per capita in &#8364 ; at market prices below 60% of the union average may give a transitional free allocation to installations for electricity production for the modernisation of the energy sector . ### by way of derogation from article 10a to , member states which had in 2013 a gdp per capita in eur at market prices below 60% of the union average may give transitional free allocation to installations for electricity generation for the modernisation of the energy sector .


### the fund shall be governed by an investment board and a management committee , which shall be composed of representatives from the beneficiary member states , the commission , the eib and three representatives elected by the other member states for a period of 5 years . the investment board shall be responsible to determine a union - level investment policy , appropriate financing instruments and investment selection criteria . the management committee shall be responsible for the day - to - day management of the fund . ### the fund shall be governed by the beneficiary member states , with the involvement of the commission . the eib shall be involved as an advisory body and provide guidelines on the principles for the project selection . adequate monitoring and reporting provisions shall be established to guarantee the transparency and efficient use of the fund by the beneficiary member states . the beneficiary member state shall select the projects which it finds appropriate based on the principles and purpose of the fund and shall notify the european commission about the list of the selected projects . the fund shall cooperate fully with established national implementing entities and programs .


### 2% of the total quantity of allowances between 2021 and 2030 shall be auctioned to establish a fund to improve energy efficiency and modernise the energy systems of certain member states as set out in article 10d of this directive . ### up to 19% of the auctioning volume between 2021 and 2030 shall be auctioned to establish a harmonised compensation scheme as set out in article 10a , paragraph 6 , of this directive .