### 92. welcomes the creation of mff heading 4 ‘migration and border management’ for the 2021-2027 programming period as this underlines the importance of the related issues for the union as a whole and the union budget in particular; notes that this heading in 2021 concerned eur 2 ,5 billion in payments , from the asylum , migration and integration fund (eur 1 ,2 billion) , the internal security fund - borders and visas(eur 0 ,4 billion) and the european union asylum agency , frontex and eu-lisa (eur 0 ,9 billion); notes that this expenditure mainly concerns the completion of projects and schemes outstanding from the 2014-2020 programming period; ### 92. takes notes of the creation of mff heading 4 ‘migration and border management’ for the 2021-2027 programming period; notes that this heading in 2021 concerned eur 2 ,5 billion in payments , from the asylum , migration and integration fund (eur 1 ,2 billion) , the internal security fund - borders and visas(eur 0 ,4 billion) and the european union asylum agency , frontex and eu-lisa (eur 0 ,9 billion); notes that this expenditure mainly concerns the completion of projects and schemes outstanding from the 2014-2020 programming period;


### 94. notes that , of the 28 transactions the court examined , nine (32 %) were affected by errors , that the court quantified six errors which had an impact on the amounts charged to the union budget , and that the court also found six cases of non-compliance with legal and financial provisions , with no impact on the union budget; ### 94. notes with concerns that , of the 28 transactions the court examined , nine (32 %) were affected by errors , that the court quantified six errors which had an impact on the amounts charged to the union budget , and that the court also found six cases of non-compliance with legal and financial provisions , with no impact on the union budget;


### 108. notes that mff heading 7 ‘european public administration’ accounts for 5 ,9 % or eur 10.7 billion of the union budget , which comprises expenditure on human resources and pensions , which accounted in 2021 for about 68 % of the total , and on buildings , equipment , energy , communications and information technology; of this total amount , eur 6.3 billion (58.5 %) is spent by the european commission; and the rest by other union institutions and bodies; notes that the court reports separately on the union agencies , other entities and the european schools; highlights that the court’s mandate does not cover the financial audit of the european central bank; ### 108. notes that mff heading 7 ‘european public administration’ accounts for 5 ,9 % or eur 10.7 billion of the union budget , which comprises expenditure on human resources and pensions , which accounted in 2021 for about 68 % of the total , and on buildings , equipment , energy , communications and information technology; of this total amount , eur 6.3 billion (58.5 %) is spent by the european commission; and the rest by other union institutions and bodies; notes that the court reports separately on the union agencies , other entities and the european schools; regrets that the court’s mandate does not cover the financial audit of the european central bank;


### 125. is worried by the court’s serious finding that for the payment made to spain in 2021 , one milestone was not satisfactorily fulfilled; regrets to note that the court was not able to quantify this error because of the absence of a methodology to quantify the impact of (partially) not achieving a milestone or target; notes the commission’s internal auditor also observed the absence of this methodology; considers it grave negligence of the commission to not have this methodology in place before making payments , as this calls into question the commission’s sincerity of assessing the satisfactory fulfilment of milestones and targets; ### 125. takes note of the court’s finding that for the payment made to spain in 2021 , - out of 52 milestones associated to the payment - one milestone was not satisfactorily fulfilled; regrets to note that the court was not able to quantify this error because of the absence of a methodology to quantify the impact of (partially) not achieving a milestone or target; notes the commission’s internal auditor also observed the absence of this methodology; considers it grave negligence of the commission to not have this methodology in place before making payments , as this calls into question the commission’s sincerity of assessing the satisfactory fulfilment of milestones and targets;


### 11. welcomes the progress of the military programme (2020 - open end) and highlights the role of the agency within the european military mobility; calls on increasing the eu budget line for military mobility; ### deleted


### (3) it is necessary to ensure that clear taxation rules for energy products and electricity continue to contribute to the smooth functioning of the internal market while at the same time tackling the climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28 . energy taxation can contribute to the ambition of at least 55 % reduction in net greenhouse gas emissions by 2030 compared to 1990 , as well as to the objective of zero pollution through the implementation of the polluter-pays principle , by ensuring that the taxation of motor fuels , heating fuels and electricity better reflects the impact they have on the environment and on health. the contribution of energy taxation to those objectives has been endorsed by the council conclusions on the eu energy taxation framework29 . ### (3) it is necessary to ensure that clear taxation rules for energy products and electricity continue to contribute to tackling the climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28 while also ensuring that all the union households , and particularly those with lower income , have access to those products. energy taxation should contribute to reducing greenhouse gas emissions in line with the european climate law , the achievement of the renewable and energy efficiency targets as well as to the objective of zero pollution through the implementation of the polluter-pays principle , by ensuring that the taxation of motor fuels , heating fuels and electricity thoroughly reflects the impact they have on the environment , health and biodiversity. the contribution of energy taxation to those objectives has been endorsed by the council conclusions on the eu energy taxation framework .


### (4) environmental taxation can be a cost-effective mean for member states to achieve the targeted reductions of greenhouse gasses. the proper functioning of the internal market requires common rules on that taxation. ### (4) environmental taxation is a means for member states to achieve the targeted reductions of greenhouse gasses , improve energy savings and energy efficiency and promote renewable energy production.


### (5) member states should , however , be able to use the energy taxation of motor fuels , heating fuels and electricity for a variety of purposes not necessarily nor specifically or exclusively related to the reduction of greenhouse gases. ### (5) member states should , however , be able to use the energy taxation of motor fuels , heating fuels and electricity for a variety of purposes not necessarily nor specifically or exclusively related to the reduction of greenhouse gases. in particular , the possibility of reducing the tax burden on low-income households should be guaranteed.


### (11) member states should also replicate at any time the ranking of minimum levels of taxation as laid down in the annex in relation to different products for each given use in order to ensure an environmentally tailored structure of rates. the minimum levels of energy taxation should be automatically aligned every year to take into account the evolution of their real value in order to preserve the current level of rate harmonization and therefore reduce the volatility stemming from energy and food prices. this alignment should be made on the basis of the changes in the union-wide harmonised index of consumer prices excluding energy and unprocessed food as published by eurostat. ### deleted


### (12) in order to ensure a smooth implementation of certain provisions relating to some products or uses , a transitional period of application is needed. ### (12) in order to ensure a smooth implementation of certain provisions relating to some products or uses , a transitional period of application may be needed. however , the climate emergency requires a swift implementation of the provisions laid down in this directive.


### (12) in order to ensure a smooth implementation of certain provisions relating to some products or uses , a transitional period of application is needed. ### (12) in order to ensure a smooth implementation of certain provisions relating to some products or uses , and to avoid undesirable effects on social and territorial equality a transitional period of application is needed.


### (14) fiscal arrangements made in connection with the implementation of this union framework for the taxation of energy products and electricity are a matter for each member state to decide. in this regard , member states might decide not to increase the overall tax burden if they consider that the implementation of such a principle of tax neutrality could contribute to the restructuring and the modernisation of their tax systems by encouraging behaviour conducive to greater protection of the environment and increased labour use. ### (14) fiscal arrangements made in connection with the implementation of this union framework for the taxation of energy products and electricity are a matter for each member state to decide. in this regard , member states might decide not to increase the overall tax burden if they consider that the implementation of such a principle of tax neutrality could contribute to the restructuring and the modernisation of their tax systems by encouraging behaviour conducive to greater protection of the environment and increased labour use. the tax system should be designed in a manner that avoids a negative impact on low-income households.


### (19) the need to pursue the objectives of the directive requires that no distinction is made between commercial and non-commercial diesel as well as business and non-business use for heating fuels and electricity. ### deleted


### (20) energy products should essentially be subject to a union framework when used as heating fuel or motor fuel. to that extent , it is in the nature and the logic of the tax system to exclude from the scope of the framework dual uses and non-fuel uses of energy products . electricity used in similar ways should be treated on an equal footing. ### (20) energy products should essentially be subject to a union framework when used as heating fuel or motor fuel. electricity used in similar ways should be treated on an equal footing.


### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation , except cargo-only flights should be taxed. the exemption for the fuel used by cargo-only flights is still needed in the absence of more efficient alternatives. ### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation.


### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation , except cargo-only flights should be taxed. the exemption for the fuel used by cargo-only flights is still needed in the absence of more efficient alternatives. ### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation , including cargo-only flights should be taxed.


### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation , except cargo-only flights should be taxed. the exemption for the fuel used by cargo-only flights is still needed in the absence of more efficient alternatives. ### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation , except cargo-only flights and flights communicating islands should be taxed. the exemption for the fuel used by cargo-only flights and flights communicating islands is still needed in the absence of more efficient alternatives.


### (22) in order to ensure a smooth implementation of this directive , the minimum levels of taxation for motor fuels used for intra-eu non-business and non-pleasure flights would be reached over a transitional period of ten years , whereas sustainable alternative fuels and electricity would be subject to a zero minimum rate for ten years. energy products and electricity used for intra-eu business aviation and pleasure flights should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states. ### (22) in order to ensure a smooth implementation of this directive , the minimum levels of taxation for motor fuels used for intra-eu non-business and non-pleasure flights would be implemented swiftly , whereas sustainable alternative fuels and electricity would be subject to a zero minimum rate for ten years. energy products and electricity used for intra-eu business aviation and pleasure flights should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states. cargo flights should be subject to the same obligations as other flights , in order not to generate further distortions which would hinder the objective of shifting to railroad.


### (23) fuel used for waterborne navigation , including fishing , should also be taxed , and the member states party to international agreements providing for the exemption of that fuel , have to , by the date of the application of this directive , ensure they eliminate the incompatibilities. it is necessary to allow for a different level of taxation to be applied to the use of energy products and electricity for intra-eu waterborne regular service navigation , fishing and freight transport and their respective at berth activities. considering the specificity of those uses , the minimum levels of taxation should be lower than the ones applicable to general motor fuel use. in order to provide an incentive to the use of sustainable alternative fuels and electricity , such fuels and electricity should be exempted from taxation for ten years. energy products and electricity used for the remaining intra-eu waterborne navigation should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states. ### (23) fuel used for waterborne navigation , including fishing , should also be taxed , and the member states party to international agreements providing for the exemption of that fuel , have to , by the date of the application of this directive , ensure they eliminate the incompatibilities. it is necessary to allow for a different level of taxation to be applied to the use of energy products and electricity for intra-eu waterborne regular service navigation , fishing and freight transport and their respective at berth activities , particularly in islands and outermost regions. considering the specificity of those uses , the minimum levels of taxation should be lower than the ones applicable to general motor fuel use. in order to provide an incentive to the use of sustainable alternative fuels and electricity , such fuels and electricity should be exempted from taxation for ten years. energy products and electricity used for the remaining intra-eu waterborne navigation should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states.


### (24) for extra-eu air navigation , without prejudice to international obligations , and for extra-eu waterborne navigation , including fishing , member states may exempt or apply the same levels of intra-eu taxation , according to the type of activity. ### (24) for extra-eu air navigation , without prejudice to international obligations , and for extra-eu waterborne navigation , including fishing , member states should exempt or apply the same levels of intra-eu taxation , according to the type of activity.


### (25) member states should be permitted to apply certain other exemptions or reduced levels of taxation , where that will not be detrimental to the environmental objectives , to the proper functioning of the internal market and will not result in distortions of competition. ### (25) member states should be permitted to apply certain other exemptions or reduced levels of taxation , where that will not be detrimental to the energy , climate and just transition objectives.


### (25) member states should be permitted to apply certain other exemptions or reduced levels of taxation , where that will not be detrimental to the environmental objectives , to the proper functioning of the internal market and will not result in distortions of competition. ### (25) member states should be permitted to apply certain other exemptions or reduced levels of taxation , where that will not be detrimental to the environmental objectives.


### (28) targeted reductions in the tax level may prove necessary to tackle the social impact of energy taxes. an exemption from taxation may temporarily prove necessary to protect vulnerable households. ### (28) targeted reductions in the tax level may prove necessary to tackle the social impact of energy taxes. an exemption from taxation may prove necessary to protect vulnerable households.


### (28) targeted reductions in the tax level may prove necessary to tackle the social impact of energy taxes. an exemption from taxation may temporarily prove necessary to protect vulnerable households. ### (28) targeted reductions in the tax level are necessary to tackle the social impact of energy taxes. an exemption from taxation is necessary to protect vulnerable households.


### (36) every five years and for the first time five years after the entry into force of this directive , the commission should report to the council on the application of this directive , examining in particular the minimum levels of taxation , the impact of innovation and technological developments , especially as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report should take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the wider relevant objectives of the treaties. ### (36) every year and for the first time one year after the entry into force of this directive , the commission should report to the council on the application of this directive , examining in particular the minimum levels of taxation , the impact of innovation and technological developments , especially as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report should take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the wider relevant objectives of the treaties.


### 2. the minimum levels of taxation laid down in this directive shall be adapted every year starting from 1 january 2024 to take account of the changes in the harmonised index of consumer prices excluding energy and unprocessed food as published by eurostat. the minimum levels shall be adapted automatically , by increasing or decreasing the base amount in euro by the percentage change in that index over the preceding calendar year. ### deleted


### 1. without prejudice to international obligations and to article 5 of this directive , as applicable as a single use to intra-eu air navigation of flights other than business and pleasure flights , member states shall apply under fiscal control not less than the minimum levels of taxation prescribed in this directive to energy products supplied for use as fuel to aircrafts , and to electricity used directly for charging electric aircrafts , for the purposes of intra-eu air navigation of those flights. ### 1. without prejudice to international obligations and to article 5 of this directive , as applicable as a single use to intra-eu air navigation of flights other than business and pleasure flights , member states shall apply under fiscal control not less than the minimum levels of taxation prescribed in this directive to energy products supplied for use as fuel to aircrafts , and to electricity from renewable sources used directly for charging electric aircrafts , for the purposes of intra-eu air navigation of those flights.


### the minimum levels of taxation referred to in the first subparagraph shall start from zero and increase each year by one tenth of the final minimum rates , set out in tables a and d of annex i , over a transitional period of ten years. a minimum rate of zero shall apply to sustainable biofuels and biogas , low-carbon fuels , renewable fuels of non-biological origin , advanced sustainable biofuels and biogas , and electricity over that transitional period of ten years. ### the minimum levels of taxation referred to in the first subparagraph shall start from zero and increase each year by one tenth of the final minimum rates , set out in tables a and d of annex i , over a transitional period of ten years. a minimum rate of zero shall apply to sustainable biofuels and biogas , low-carbon fuels , renewable fuels of non-biological origin , advanced sustainable biofuels and biogas , and electricity from renewable sources over that transitional period of ten years.


### the minimum levels of taxation referred to in the first subparagraph shall start from zero and increase each year by one tenth of the final minimum rates , set out in tables a and d of annex i , over a transitional period of ten years. a minimum rate of zero shall apply to sustainable biofuels and biogas , low-carbon fuels , renewable fuels of non-biological origin , advanced sustainable biofuels and biogas , and electricity over that transitional period of ten years. ### deleted


### 2. energy products supplied for use as fuel to aircrafts and electricity used directly for charging electric aircrafts , for the purposes of intra-eu air navigation of cargo-only flights shall be exempted. ### deleted


### 2. energy products supplied for use as fuel to aircrafts and electricity used directly for charging electric aircrafts , for the purposes of intra-eu air navigation of cargo-only flights shall be exempted. ### 2. energy products supplied for use as fuel to aircrafts and electricity from renewable sources used directly for charging electric aircrafts , for the purposes of intra-eu air navigation of cargo-only flights shall be exempted.


### by derogation from the first subparagraph of this paragraph , member states may apply the same level of taxation laid down in paragraph 1 to cargo-only domestic flights referred to in the first subparagraph of this paragraph. ### member states shall apply the same level of taxation laid down in paragraph 1 to cargo-only domestic flights referred to in the first subparagraph of this paragraph.


### 3. without prejudice to international obligations , member states may exempt or apply the same levels of taxation applied for intra-eu air navigation to extra-eu air navigation according to the type of flight. ### 3. without prejudice to international obligations , member states shall apply the same levels of taxation applied for intra-eu air navigation to extra-eu air navigation according to the type of flight.


### without prejudice to article 5 , member states shall apply , as a single use , under fiscal control not less than minimum levels of taxation as set out in tables b and d of annex i to energy products supplied for use as fuel to vessels , and to electricity used directly for charging electric vessels , for the purposes of intra-eu waterborne regular service navigation , fishing and freight transport. ### without prejudice to article 5 , member states shall apply , as a single use , to energy products supplied for use as fuel to vessels , and to electricity used directly for charging electric vessels , for the purposes of intra-eu waterborne regular service navigation , fishing and freight transport.


### over a transitional period of ten years , minimum rates of zero shall apply to sustainable biofuels and biogas , low-carbon-fuels , renewable fuels of non-biological origin , advanced sustainable biofuels and biogas and electricity. ### over a transitional period of fourteen years , minimum rates of zero shall apply to sustainable biofuels and biogas , low-carbon-fuels , renewable fuels of non-biological origin , advanced sustainable biofuels and biogas and electricity.


### 5. member states may apply under fiscal control total or partial exemptions to electricity directly supplied to vessels berthed in ports. ### 5. member states shall exempt electricity directly supplied to vessels berthed in ports.


### without prejudice to other union provisions , member states may apply under fiscal control exemptions or reductions in the level of taxation to: ### without prejudice to other union provisions , member states shall apply under fiscal control exemptions or reductions in the level of taxation to:


### reductions in the level of taxation , which shall not go below the minima as set out in table c and d of annex i , to energy products and electricity used for combined heat and power generation , without prejudice to article 13; ### reductions in the level of taxation , to energy products and electricity used for combined heat and power generation , without prejudice to article 13;


### reductions in the level of taxation , which shall not go below the minima as set out in table b and d of annex i , to energy products and electricity used for the carriage of goods and passengers by rail , metro , tram and trolley bus , and for local public passenger transport , waste collection , armed forces and public administration , disabled people and ambulances; ### reductions in the level of taxation to energy products and electricity used for the carriage of goods and passengers by rail , metro , tram and trolley bus , and for public passenger transport , waste collection and public administration , disabled people and ambulances;


### for the purposes of point (c) , energy products and electricity used by households recognised as vulnerable may be exempt for a maximum period of ten years after the entry into force of this directive. for the purposes of this paragraph , ‘vulnerable households’ shall mean households significantly affected by the impacts of this directive which , for the purpose of this directive , means that they are below the ‘at risk of poverty’” threshold , defined as 60% of the national median equivalised disposable income. ### for the purposes of point (c) , energy products and electricity used by households recognised as vulnerable may be exempt. for the purposes of this paragraph , ‘vulnerable households’ shall mean households significantly affected by the impacts of this directive which , for the purpose of this directive , means that they are below the ‘at risk of poverty’” threshold , defined as 60% of the national median equivalised disposable income.


### reductions in the level of taxation , which shall not go below the minima as set out in table c and d of annex i to energy products used for heating purposes and to electricity , used for agricultural , horticultural or aquaculture works , and in forestry. ### reductions in the level of taxation to energy products used for heating purposes and to electricity , used for agricultural , horticultural or aquaculture works , and in forestry.


### every five years and for the first time five years after 1 january 2023 , the commission shall submit to the council a report on the application of this directive. ### every year and for the first time one year after 1 january 2023 , the commission shall submit to the council a report on the application of this directive.


### (15) energy prices are key elements of energy , transport and environment policies in the union . ### (15) energy prices are key elements of energy , transport and environment policies in the union. member states should be allowed to set retail prices and profit margins below the market outcome in certain situations , namely in periods of high uncertainty , high volatility , or both in international fossil fuels markets.


### reductions in the level of taxation , which shall not go below the minima as set out in table c and d of annex i , to energy products used as heating fuel and electricity if used by households and/or by organisations recognised as charitable by the member state concerned. in the case of such charitable organisations , member states shall confine the reduction to use for the purpose of non-business activities. where mixed use takes place , taxation shall apply in proportion to each type of use. if a use is insignificant , it may be treated as nil. ### reductions in the level of taxation , which shall not go below the minima as set out in table c and d of annex i , to energy products used as heating fuel and electricity if used by households and/or by organisations recognised as non-profit organizations by the member state concerned. in the case of such non-profit organisations , member states shall confine the reduction to use for the purpose of non-business activities. where mixed use takes place , taxation shall apply in proportion to each type of use.


### in favour of energy-intensive business ### deleted


### an ‘energy-intensive business’ shall mean a business entity , as referred to in article 19 , where either the purchases of energy products and electricity amount to at least 3 ,0 % of the production value or the national energy tax payable amounts to at least 0 ,5 % of the added value. ### deleted


### ‘purchases of energy products and electricity’ shall mean the actual cost of energy purchased or generated within the business. only electricity , heat and energy products that are used for heating purposes or for the purposes of article 8(2)(b) and (c) are included. all taxes are included , except deductible vat. ### deleted


### ‘production value’ shall mean turnover , including subsidies directly linked to the price of the product , plus or minus the changes in stocks of finished products , work in progress and goods and services purchased for resale , minus the purchases of goods and services for resale. ### deleted


### ‘ added value ’ shall mean the total turnover liable to vat including export sales minus the total purchases liable to vat including imports. ### deleted


### article 20 ### deleted


### reductions in the level of taxation , which shall not go below the minima as set out in table b and d of annex i , to energy products and electricity used for the carriage of goods and passengers by rail , metro , tram and trolley bus , and for local public passenger transport , waste collection , armed forces and public administration , disabled people and ambulances; ### reductions in the level of taxation , to energy products and electricity used for the carriage of goods and passengers by rail , metro , tram and trolley bus , as well as ferries in the case of islands and for local public passenger transport , waste collection and public administration , disabled people and ambulances;


### for the purposes of point (c) , energy products and electricity used by households recognised as vulnerable may be exempt for a maximum period of ten years after the entry into force of this directive. for the purposes of this paragraph , ‘vulnerable households’ shall mean households significantly affected by the impacts of this directive which , for the purpose of this directive , means that they are below the ‘at risk of poverty’” threshold , defined as 60% of the national median equivalised disposable income. ### for the purposes of point (c) , energy products and electricity used by households living in a condition of energy poverty as defined in the energy efficiency directive shall be exempt as long as is needed after the entry into force of this directive.


### 2. underscores that there is a clear consensus among the institutions that , in the wake of the unprovoked and unjustified invasion of ukraine , the eu should provide the strongest possible social , economic and financial assistance to ukraine , while addressing the economic and social consequences of the crisis within the union and delivering the necessary support to its citizens; underlines , in this context , the shared union goals of delivering on the european green deal and the digital transition , scaling up defence cooperation and coordination , improving its strategic autonomy and energy independence and security , ensuring food security , and addressing the challenges caused by high inflation; ### 2. underscores that there is a clear consensus among the institutions that , in the wake of the unprovoked and unjustified invasion of ukraine , the eu should provide the strongest possible social , humanitarian , economic and financial assistance to ukraine , while addressing the severe economic and social consequences of the crisis within the union and delivering the necessary support to its people; underlines , in this context , the shared union goals of delivering on the european green deal and the digital transition , scaling up defence cooperation and coordination , improving its strategic autonomy and energy independence and security , addressing energy poverty , ensuring food security , and addressing the challenges caused by high inflation;


### 2. points out that the sudden emergence of severe european-wide crises , such as the pandemic and russia’s war of aggression against ukraine , have tested the multiannual financial framework (mff) and underlined the need for the mff to be managed in a more flexible , yet sustainable , manner; therefore sees a need for the revision of the mff and calls on the commission to conduct an in-depth review of the functioning of the current mff and to proceed with a legislative proposal for comprehensive mff revision as soon as possible , and no later than the first quarter of 2023; ### 2. points out that the sudden emergence of severe european-wide crises , such as the pandemic and russia’s war of aggression against ukraine , have tested the multiannual financial framework (mff) and underlined the need for the mff to be managed in a more flexible , yet sustainable , manner; underlines that the eu fiscal architecture remains incomplete as the eu lacks permanent meaningful budgetary instruments that would improve its ability to respond to shocks and thereby increase its resilience; calls for the establishment of a permanent fiscal capacity that would address common or country-specific shocks; therefore sees a need for the revision of the mff and calls on the commission to conduct an in-depth review of the functioning of the current mff and to proceed with a legislative proposal for comprehensive mff revision as soon as possible , and no later than the first quarter of 2023;


### 3. highlights that , in the short term , large-scale humanitarian aid in ukraine and financial support to member states receiving and helping to settle people fleeing the conflict are needed to address the impact of the war against ukraine; ### 3. highlights that , in the short term , large-scale humanitarian aid in ukraine and financial support to member states receiving and helping to settle people fleeing the conflict are needed to address the impact of the war against ukraine; notes that the global humanitarian funding gap continues to grow; stresses that the humanitarian aid instrument is not adequately funded to face the increased needs;


### 3. underlines the necessity of providing the regions with appropriate financial means in order to deal with the waves of migration caused by the russian aggression against ukraine and its multifaceted consequences; emphasises the need to address the grave difficulties that the current rise in energy costs is causing for the regions , and to identify suitable financial instruments to deal with them at a regional level; ### 3. underlines the necessity of providing the regions with appropriate financial means in order to deal with the waves of migration , uncertainty and widespread price hikes , affecting disadvantaged social groups and the public sector in particular , caused by the russian aggression against ukraine , covid-19 crisis , climate crisis and economic and financial crises; emphasises the need to address the grave difficulties that the current rise in energy costs is causing for the regions , and to swiftly identify suitable financial instruments over and above the european structural and investment funds to deal with them at regional and local levels;


### 4. calls for a significant increase in the european union solidarity fund (eusf) budget , which would help regions to anticipate and mitigate the effects of climate change , and for the scope of the eusf to be broadened , so that it can also support more climate-resilient restoration or construction of public and private infrastructure; ### 4. calls for a significant increase in the european union solidarity fund (eusf) budget , which would help regions to anticipate and mitigate the effects of climate change , and for the scope of the eusf to be broadened , so that it can also support more climate-resilient restoration or construction of public and private infrastructure; calls , taking all things into perspective , for an independent european fund to be set up to support regions and municipalities in their climate adaptation and resilience building projects and programmes; reiterates its call for the commission to draw up a proposal for the establishment of such a climate adaptation fund;


### 4. welcomes the commission’s upcoming proposal for a european defence investment programme (edip) , the aim of which would be to introduce joint procurement and life cycle management of military capabilities , in particular those necessary to harness eu defence over the decades to counter a military threat from russia; calls on all member states to complement eu funding with funding from their national defence budgets; invites the commission to open this programme to key strategic partners and allies; ### deleted


### 5. points out that essential new policy initiatives put forward since the adoption of the current mff have come with proposals to shift money away from key eu policies and objectives; ### 5. regrets that new policy initiatives put forward since the adoption of the current mff have come with proposals to shift money away from key eu policies and objectives;


### 5. underlines that the existing possibility of transfers from the cohesion policy funds to other eu instruments of up to 5 % of the initial allocation provides for sufficient flexibility; strongly opposes the proposal of additional transfers from the cohesion policy funds put forward under the repowereu initiative. ### 5. underlines that the existing possibility of transfers from the cohesion policy funds to other eu instruments of up to 5 % of the initial allocation provides for sufficient flexibility; underlines that cohesion policy funding must continue to primarily serve its long-term policy objectives and not become a source of financing to make up for shortcomings in budgetary flexibility or crisis response mechanisms within the mff or policy failures and incoherences in other policy areas; strongly opposes the proposal of additional transfers from the cohesion policy funds put forward under the repowereu initiative.


### 5. stresses the serious risk that the amount of outstanding commitments (reste à liquider – ral) continues to rise; calls on the commission to closely monitor this issue and to make every effort to ensure that it remains under control; ### 5. stresses the serious risk that the amount of outstanding commitments (reste à liquider – ral) continues to rise putting the budget under serious pressure in terms of liquidity; calls on the commission to closely monitor this issue and to make every effort to ensure that it remains under control , reminding the importance of monitoring in particular the member states with low absorption rates;


### 5. calls for stronger defence cooperation with ukraine and moldova to be established , including by enhancing the financial capabilities of the european defence agency (eda) to help identify where ukraine should participate in eu defence capability development over the years to come. ### deleted


### 6. recalls that the conference on the future of europe has proposed strengthening the union budget through new own resources2 and that the european parliament should decide on the union budget as it is the right of parliaments at national level3 ; calls in that regard for the european parliament to be more closely associated with the commission and the council in the process of adopting new own resources; ### 6. recalls that the conference on the future of europe has proposed strengthening the union budget through new own resources2 and that the european parliament should decide on the union budget as it is the right of parliaments at national level3 ; calls in that regard to give the european parliament the right to co-decide with the commission and the council on the process of adopting new own resources;


### c. whereas russia’s unprovoked and unjustified invasion of ukraine has led to a major humanitarian crisis , and has triggered an economic and social shock of uncertain duration and magnitude worldwide; whereas the heads of state or government have described the war as a ‘tectonic shift in european history’ and the commission has stated that the ‘unforeseen needs created by war in europe are well beyond the means available in the current multiannual financial framework’ , necessitating new financing sources; ### c. whereas russia's unprovoked and unjustified invasion of ukraine has led to a major humanitarian crisis , and has triggered an enormous economic and social shock of uncertain duration and magnitude worldwide driven , among others , by high inflation , increasing poverty , high energy prices , security of supply risks and a worsening economic outlook , in particular for small and medium-sized enterprises (smes) and the most vulnerable; whereas the heads of state or government have described the war as a ‘tectonic shift in european history’ and the commission has stated that the ‘unforeseen needs created by war in europe are well beyond the means available in the current multiannual financial framework’ , necessitating new financing sources;


### d. whereas citizens rightly expect the eu budget to respond effectively to evolving needs and to support them in crises; ### d. whereas the people of the union rightly expect the eu budget to respond effectively to evolving and increasing needs and to effectively support them especially in times of crises;


### e. whereas the combined effect of multiple crises and low mff ceilings has given rise to a ‘galaxy’ of ad hoc instruments beyond the eu budget , as well as greater use of external assigned revenue not subject to the budgetary procedure , most notably in the case of nextgenerationeu; whereas , as one arm of the budgetary authority , parliament should play a full role in this new budgetary environment in order to ensure democratic accountability and transparency; ### e. whereas the combined effect of multiple crises and low mff ceilings has given rise to a ‘galaxy’ of ad hoc instruments beyond the eu budget , as well as greater use of external assigned revenue not subject to the ordinary budgetary procedure that would ensure the full involvement and scrutiny of the european parliament , most notably in the case of nextgenerationeu;whereas , as one arm of the budgetary authority , parliament should always play its full role in this new budgetary environment in order to ensure democratic accountability and transparency;


### f. whereas the iia sets out specific arrangements for cooperation and dialogue between parliament , the council and the commission on budgetary matters; whereas further steps should be taken to improve transparency and the availability of information on all spending in support of eu policy-making; ### f. whereas the iia sets out specific arrangements for cooperation and dialogue between parliament , the council and the commission on budgetary matters; whereas further steps should be taken to improve transparency , accountability and the availability of information on all spending in support of eu policy-making;


### 1. underlines the central role that the eu budget plays in delivering on the union’s political priorities , including making a success of the green and digital transitions , fostering an inclusive and social recovery , promoting growth , strategic autonomy and energy independence , providing support for small and medium-sized enterprises , fostering sustainable development that leaves no one behind and ensures cohesion and upward convergence , ensuring a more robust european health union in the aftermath of the covid-19 crisis , promoting the rule of law , eu values and fundamental rights , contributing to greater opportunities for all , and ensuring a stronger union for its people and in the world; ### 1. underlines the central role that the eu budget plays in delivering on the union’s political priorities , including making a success of the just green and digital transitions , promoting gender equality , tackling the climate and biodiversity crises and their consequences , fostering an inclusive and social recovery , promoting sustainable growth , strategic autonomy and energy security and independence , providing support for small and medium-sized enterprises and vulnerable groups , fostering sustainable development that leaves no one behind and ensures cohesion and upward convergence , ensuring a more robust european health union in the aftermath of the covid-19 crisis , safeguarding and promoting the rule of law , eu values and fundamental rights , contributing to greater opportunities for all , and ensuring a stronger union for its people and in the world;


### 1. reiterates its concern as regards the significant delay in the implementation of cohesion policy for the 2021-2027 period , as well as its call for the commission and the member states to speed up the adoption of the partnership agreements and programmes , without undermining their quality and while respecting the eu’s political priorities and the applicable principles; reiterates the need for special consideration to be given to less-developed regions and islands in this context; ### 1. reiterates its concern as regards the significant delay in the implementation of cohesion policy for the 2021-2027 period , as well as its call for the commission and the member states to speed up the adoption of the partnership agreements and programmes , without undermining their quality and while respecting the eu’s political priorities and the applicable principles; reiterates the need for special consideration to be given to less-developed regions and islands in this context , as well as transition regions , which face particularly significant challenges in pulling off the socially just and balanced structural changes needed to meet climate neutrality and energy transition requirements;


### 1. recalls that , pursuant to article 311 of the treaty on the functioning of the european union (tfeu) , ‘the union shall provide itself with the means necessary to attain its objectives and carry through its policies’; underlines the importance , therefore , of an adequate eu budget that serves eu citizens; ### 1. recalls that , pursuant to article 311 of the treaty on the functioning of the european union (tfeu) , ‘the union shall provide itself with the means necessary to attain its objectives and carry through its policies’; underlines the importance of an adequate eu budget that serves the citizens; calls therefore to establish a permanent mechanism for participatory budgeting in order to give citizens a voice in determining spending priorities , strengthen budgetary transparency and accountability and foster inclusive democracy;


### 8. emphasises , therefore , that the 2021-2027 mff is already being pushed to its limits less than two years after its adoption , a situation aggravated by the unforeseeable events of 2022; points out that it is simply not equipped , in terms of size , structure or rules , to respond to a multitude of crises of this scale , nor to adequately finance new shared eu policy ambitions and the swift implementation of the requisite eu-wide solutions; ### 8. emphasises , therefore , that the 2021-2027 mff is already being pushed to its limits less than two years after its adoption , a situation aggravated by the unforeseeable events of 2022; points out that it is simply not equipped , in terms of size , structure or rules , to effectively respond to a multitude of crises of this scale , nor to adequately finance new shared eu policy ambitions and the swift implementation of the requisite eu-wide solutions;


### 8. welcomes the application by the commission of the rule of law conditionality regulation5 laying down the rules necessary for the protection of the union budget in the case of breaches of the principles of the rule of law in the member states which affect or seriously risk affecting the sound financial management of the union budget or the protection of the financial interests of the union in a sufficiently direct way; ### 8. welcomes the application by the commission of the rule of law conditionality regulation5 laying down the rules necessary for the protection of the union budget in the case of breaches of the principles of the rule of law in the member states which affect or seriously risk affecting the sound financial management of the union budget or the protection of the financial interests of the union in a sufficiently direct way; stresses therefore the necessity to introduce precise financial obligations in the annual budget planning;


### 9. reiterates its call for the abolition of all budgetary rebates and corrective mechanisms as soon as possible in order to ensure fair treatment between member states; invites the commission to report beyond the existing narrow accounting approach of reporting member states’ net balances and to set up additional new budget indicators focusing on the european added value stemming from participation in eu policies; ### 9. reiterates its call for the abolition of all budgetary rebates and corrective mechanisms as soon as possible in order to ensure fair treatment between member states; invites the commission to report beyond the existing narrow accounting approach of reporting member states’ net balances and to set up additional new budget indicators focusing on solidarity between the member states and the european added value stemming from participation in eu policies;


### 12. concludes that , in this context , the need for an urgent review and revision of the mff is beyond any doubt and that a ‘business as usual’ approach will not remotely suffice to tackle the array of challenges posed and could thereby undermine confidence in the union in the long term; ### 12. concludes that , in this context , the need for an urgent , substantial and ambitious review and revision of the mff is beyond any doubt and that a ‘business as usual’ approach will not remotely suffice to tackle the array of challenges posed and could thereby undermine confidence in the union in the long term;


### 13. calls on the commission , therefore , to conduct an in-depth review of the functioning of the current mff and proceed with a legislative proposal for a comprehensive mff revision as soon as possible and no later than the first quarter of 2023; ### 13. calls on the commission , therefore , to conduct an in-depth review of the functioning of the current mff and proceed with a legislative proposal for a comprehensive , substantial and ambitious mff revision as soon as possible and no later than the first quarter of 2023; stresses that , along with addressing the funding gaps , the mff revision should strengthen the horizontal principles and objectives of the eu budget such as promoting gender equality and tackling the climate and biodiversity crises;


### 27. points out that mff and own resources are interlinked; emphasises , in this context , the need for sustainable and resilient revenue for the eu budget; recalls that , in the iia , parliament , the council and the commission committed to introducing sufficient new own resources to at least cover the repayment of euri debt; ### 27. points out that mff and own resources are interlinked; emphasises , in this context , the need for sustainable and resilient revenue for the eu budget; recalls that , in the iia , parliament , the council and the commission committed , on the basis of a legally binding roadmap , to introducing sufficient new own resources to at least cover the repayment of euri debt; calls , therefore , on the council to move as swiftly as possible and speed up the negotiations for the first basket of own resources presented by the commission on 22 december 2021 and the commission to make a proposal for the second basket of new own resources before december 2023; calls , moreover , the commission , given the increased financing needs , to reflect beyond the iia and to examine the need of proposing further new , innovative and genuine own resources;


### 29. stresses that , while crisis response measures are necessary and useful , cohesion policy is not a crisis response tool; is concerned that cohesion policy is increasingly being used to reinforce other policies and to make up for shortcomings in budgetary flexibility or crisis response mechanisms in the mff; emphasises that cohesion policy is one of the priorities of the union , has long-term investment objectives linked to the eu’s strategic agenda , in particular the european green deal and the digital agenda , and should not be used to replenish funding for other policies; calls , therefore , for cohesion funding levels to be preserved in the budget; ### 29. stresses that , while crisis response measures are necessary and useful , cohesion policy is not a crisis response tool; regrets that cohesion policy is increasingly being used to reinforce other policies and to make up for shortcomings in budgetary flexibility or crisis response mechanisms in the mff; emphasises that cohesion policy is one of the main priorities of the union , has long-term investment objectives linked to the eu’s strategic agenda , in particular the european green deal and the digital agenda , and should not be used to replenish funding for other policies; calls , therefore , for cohesion funding levels to be enhanced in the budget;


### 35. insists that , beyond a reinforcement of the existing special instruments , it is necessary to establish a permanent fiscal capacity and common crisis instrument as an additional special instrument over and above the mff ceilings so that the eu budget can better adapt and quickly react to crises and their social and economic effects; ### 35. insists that , beyond a reinforcement of the existing special instruments , it is necessary to establish a permanent central fiscal capacity and a common crisis instrument as an additional special instrument over and above the mff ceilings so that the eu budget can better adapt and quickly react to common or country-specific crises and effectively mitigate their social and economic effects;


### 41. highlights that the ongoing revision of the financial regulation is an important opportunity to adapt the rules governing budgetary instruments to current circumstances , whereby external assigned revenue , borrowing and lending operations , trust funds and instruments under article 122 tfeu are being used with greater frequency despite often bypassing the scrutiny of the budgetary authority and thus diminishing the traceability of funds and accountability; points , in particular , to the declaration on reassessing the external assigned revenue and borrowing and lending provisions in the financial regulation that was agreed in the context of the mff negotiations; considers that external assigned revenue , as well as assets and liabilities linked to borrowing and lending operations , should form an integral part of the eu budget and be adopted by the budgetary authority as part of that budget; ### 41. highlights that the ongoing revision of the financial regulation is an important opportunity to adapt the rules governing budgetary instruments to current circumstances , whereby external assigned revenue , borrowing and lending operations , trust funds and instruments under article 122 tfeu are being used with greater frequency despite disregarding the community method , often bypassing the scrutiny of the budgetary authority and thus diminishing the traceability of funds and accountability; points , in particular , to the declaration on reassessing the external assigned revenue and borrowing and lending provisions in the financial regulation that was agreed in the context of the mff negotiations; considers that external assigned revenue , as well as assets and liabilities linked to borrowing and lending operations , should form an integral part of the eu budget and be adopted by the budgetary authority as part of that budget;


### 42. calls on the commission , furthermore , to begin a longer-term reflection on the eu budget post-2027 in the light of evolving spending needs and building on the work of the conference on the future of europe with respect to own resources and the budget; insists that the successor to the current mff be equipped to deal fully and flexibly with a range of policy priorities and spending needs and to ensure resilience in the event of crises; ### 42. calls on the commission , furthermore , to begin a longer-term reflection on the eu budget post-2027 in the light of evolving spending needs and building on the work of the conference on the future of europe with respect to own resources and the budget; insists that the successor to the current mff be properly equipped in advance to deal fully and flexibly with a range of policy priorities and spending needs and to ensure resilience in the event of crises , while reinforcing horizontal principles and objectives such as promoting gender equality and tackling the climate and biodiversity crises;


### proposal for a ### proposal for a


### (1) the paris agreement , adopted in december 2015 under the united nations framework convention on climate change (unfccc) , entered into force in november 2016 (“the paris agreement”). its parties have agreed to hold the increase in the global average temperature well below 2 °c above pre-industrial levels and to pursue efforts to limit the temperature increase to 1 ,5 °c above pre-industrial levels. ### (1) the paris agreement , adopted in december 2015 under the united nations framework convention on climate change (unfccc) , entered into force in november 2016 (“the paris agreement”). its parties have agreed to hold the increase in the global average temperature well below 2 °c above pre-industrial levels and to pursue efforts to limit the temperature increase to 1 ,5 °c above pre-industrial levels , while reflecting the principles of equity and of common but differentiated responsibilities and respective capabilities of nations.


### (3) the european green deal31 combines a comprehensive set of mutually reinforcing measures and initiatives aimed at achieving climate neutrality in the union by 2050 , and sets out a new growth strategy that aims to transform the union into a fair and prosperous society , with a modern , resource-efficient and competitive economy , where economic growth is decoupled from resource use. it also aims to protect , conserve and enhance the union's natural capital , and protect the health and well-being of citizens from environment-related risks and impacts. at the same time , this transition affects women and men differently and has a particular impact on some disadvantaged groups , such as older people , persons with disabilities and persons with a minority racial or ethnic background. it must therefore be ensured that the transition is just and inclusive , leaving no one behind. ### (3) the european green deal31 provides a starting point for the achievement of the union’s climate-neutrality objective by 2050 at the latest and the aim to achieve negative emissions thereafter as laid out in article 2(1) of regulation (eu) 2021/1119. it combines a comprehensive set of mutually reinforcing measures and initiatives aimed at achieving climate neutrality in the union by 2050 at the latest , and sets out a new growth strategy that aims to transform the union into a fair and prosperous society , with a modern , resource-efficient and competitive economy. it also aims to protect , conserve and enhance the union's natural capital , and protect the health and well-being of people from environment-related risks and impacts. at the same time , this transition affects all genders differently and has a particular impact on some disadvantaged groups , such as older people , persons with disabilities and persons with a minority racial or ethnic background. it must therefore be ensured that the transition is just and inclusive , leaving no one behind.


### (3) the european green deal31 combines a comprehensive set of mutually reinforcing measures and initiatives aimed at achieving climate neutrality in the union by 2050 , and sets out a new growth strategy that aims to transform the union into a fair and prosperous society , with a modern , resource-efficient and competitive economy , where economic growth is decoupled from resource use. it also aims to protect , conserve and enhance the union's natural capital , and protect the health and well-being of citizens from environment-related risks and impacts. at the same time , this transition affects women and men differently and has a particular impact on some disadvantaged groups , such as older people , persons with disabilities and persons with a minority racial or ethnic background. it must therefore be ensured that the transition is just and inclusive , leaving no one behind. ### (3) the european green deal31 combines a comprehensive set of mutually reinforcing measures and initiatives aimed at achieving climate neutrality in the union by 2050 , and sets out a new growth strategy that aims to transform the union into a fair and prosperous society , with a modern , resource-efficient and competitive economy , where improvement in people’s wellbeing is decoupled from resource use. it also aims to protect , conserve and enhance the union's natural capital , and protect the health and well-being of citizens from environment-related risks and impacts. at the same time , this transition affects women and men differently and has a particular impact on some disadvantaged groups , such as older people , persons with disabilities , persons at risk of energy poverty and persons with a minority racial or ethnic background. it must therefore be ensured that the transition is just and inclusive , leaving no one behind.


### (4) in regulation (eu) 2021/1119 of the european parliament and of the council32 ( ‘european climate law’) , the union has enshrined into legislation the target of economy-wide climate neutrality by 2050. that regulation also establishes a binding union domestic reduction commitment of net greenhouse gas emissions (emissions after deduction of removals) of at least 55% below 1990 levels by 2030. ### (4) in regulation (eu) 2021/1119 of the european parliament and of the council32 ( ‘european climate law’) , the union has enshrined into legislation the target of economy-wide climate neutrality by 2050 at the latest and the aim to achieve negative emissions thereafter. that regulation also establishes a binding union domestic reduction commitment of net greenhouse gas emissions (emissions after deduction of removals) of at least 55% below 1990 levels by 2030.


### (13) the covid-19 pandemic has impacted the union’s economy and its level of emissions to a degree that cannot yet be fully quantified. on the other hand , the union is deploying its largest stimulus package ever , also having a potential impact on the level of emissions. due to those uncertainties , it is appropriate to review the emissions data in 2025 and , if necessary , readjust the annual emission allocations. ### deleted


### (14) it is therefore appropriate to update in 2025 the annual emission allocations for the years 2026 to 2030. this should be based on a comprehensive review of the national inventory data carried out by the commission in order to determine the average of the greenhouse gas emissions of each member state during the years 2021 , 2022 and 2023. ### deleted


### (15) under regulation (eu) 2018/842 , the cancellation of a limited quantity of emission allowances in the european union emission trading system may be taken into account for some member states’ compliance under regulation (eu) 2018/842. given the particular structure of malta’s economy , the national reduction target of that member state based on gross domestic product per capita is significantly above its cost-effective reduction potential , is is therefore appropriate to increase malta’s access to that flexibility , without compromising the 2030 target of the union on emission reductions. ### (15) under regulation (eu) 2018/842 , the cancellation of a limited quantity of emission allowances in the european union emission trading system shall be repealed to enhance emission reduction efforts.


### (16) in addition to that flexibility , a limited quantity of net removals and net emissions from land use , land-use change and forestry (‘lulucf’) may be taken into account for member states’ compliance under regulation (eu) 2018/842 (‘the lulucf flexibility’). in order to ensure that sufficient mitigation efforts are deployed until 2030 , it is appropriate to limit the use of the lulucf flexibility by separating the use of such flexibility into two separate time periods , each capped by a limit corresponding to half of the maximum amount of total net removals set out in annex iii to regulation (eu) 2018/842. it is also appropriate to bring the title of annex iii in line with the amendment to regulation (eu) 2018/841 carried out by commission delegated regulation (eu) 2021/268 of 28 october 202037 . as a consequence , there is no longer a need for regulation (eu) 2018/842 to provide for a legal basis allowing the commission to adopt delegated acts to amend the title of its annex iii. article 7(2) of regulation (eu) 2018/842 should therefore be deleted. ### (16) in addition to that flexibility , a limited quantity of net removals and net emissions from land use , land-use change and forestry (‘lulucf’) shall be repealed under regulation (eu) 2018/842 (‘the lulucf flexibility’). progress in one sector cannot compensate for the lack of progress in other sectors. moreover , removals of ghgs by natural carbon sinks are fragile and potentially reversible , which leads to increased uncertainty in measuring emissions and removals in the land sector compared to sectors under regulation (eu) 2018/842.


### (16) in addition to that flexibility , a limited quantity of net removals and net emissions from land use , land-use change and forestry (‘lulucf’) may be taken into account for member states’ compliance under regulation (eu) 2018/842 (‘the lulucf flexibility’). in order to ensure that sufficient mitigation efforts are deployed until 2030 , it is appropriate to limit the use of the lulucf flexibility by separating the use of such flexibility into two separate time periods , each capped by a limit corresponding to half of the maximum amount of total net removals set out in annex iii to regulation (eu) 2018/842. it is also appropriate to bring the title of annex iii in line with the amendment to regulation (eu) 2018/841 carried out by commission delegated regulation (eu) 2021/268 of 28 october 202037 . as a consequence , there is no longer a need for regulation (eu) 2018/842 to provide for a legal basis allowing the commission to adopt delegated acts to amend the title of its annex iii. article 7(2) of regulation (eu) 2018/842 should therefore be deleted. ### (16) in addition to that flexibility , a limited quantity of net removals and net emissions from land use , land-use change and forestry (‘lulucf’) may be taken into account for member states’ compliance under regulation (eu) 2018/842 (‘the lulucf flexibility’). in order to ensure that sufficient mitigation efforts are deployed until 2030 , it is appropriate to end the use of the lulucf flexibility from 2023 onward.


### (17) considering , the introduction of a strengthened compliance regime in regulation (eu) 2018/841 as of 2026 , it is appropriate to abolish the deduction of the greenhouse gas emissions generated by each member state in the period from 2026 to 2030 in the land sector in excess of its removals. article 9(2) should therefore be amended accordingly. ### deleted


### (18) the setting of more ambitious targets under regulation (eu) 2018/841 will decrease the capacity of member states to generate net removals that can be used for compliance under regulation (eu) 2018/842. in addition , the split of the use of the lulucf flexibility into two separate time periods , will further limit the availability of net removals for the purpose of compliance with regulation (eu) 2018/842. as a result , some member states may face challenges in meeting their targets under regulation (eu) 2018/842 , while some member states , the same or other , may generate net removals that cannot be used for compliance with regulation (eu) 2018/842. as long as the union objectives as set out in article 3 of regulation (eu) 2021/1119 are met , in particular with regard to the maximum limit of the contribution of net removals , it is appropriate to create a new voluntary mechanism , in the form of an additional reserve , that will help adhering member states to comply with their obligations. ### deleted


### (1) in article 1 , “30%” is replaced by “40%”; ### (1 ) article 1 is replaced by the following:


### (1) in article 1 , “30%” is replaced by “40%”; ### (1) "subject matter 1.this regulation contributes to achieving the objectives of the paris agreement and the union’s objective of balancing greenhouse gas emissions and removals by 2050 at the latest and achieving negative emissions thereafter as set out in article 2 of regulation 2021/1119 (eu climate law). 2. this regulation lays down obligations on member states with respect to their minimum contributions for the period from 2021 to 2030 to fulfilling the union’s target of reducing its greenhouse gas emissions by at least 55 % below 2005 levels by 2030 in the sectors covered by article 2 of this regulation. 3. this regulation also paves the way for the setting of post-2030 union’s greenhouse gas emissions reduction targets in the sectors covered by article 2 of this regulation and of member states’ minimum contributions to the fulfilment of those post-2030 union’s targets. 4. finally , this regulation lays down provisions for the determination of minimum union-level individual sector contributions to fulfilling the union’s greenhouse gas emissions reduction targets for 2030 and beyond set by this regulation , and for ensuring compliance with those minimum sector contributions."


### article 6 ### (4 a) article 6 is deleted


### (5) article 7 is amended as follows: ### deleted


### (7) the following article is inserted: ### deleted


### (1) the purpose of this regulation is to improve the functioning of the internal market by laying down a uniform legal framework in particular for the development , marketing and use of artificial intelligence in conformity with union values. this regulation pursues a number of overriding reasons of public interest , such as a high level of protection of health , safety and fundamental rights , and it ensures the free movement of ai-based goods and services cross-border , thus preventing member states from imposing restrictions on the development , marketing and use of ai systems , unless explicitly authorised by this regulation. ### (1) the purpose of this regulation is to improve the functioning of the internal market by laying down a uniform legal framework in particular for the development , marketing and use of artificial intelligence in conformity with union values. this regulation pursues a number of overriding reasons of public interest , such as a high level of protection of health , safety , environment and fundamental rights , as well as consumer protection and it ensures the free movement of ai-based goods and services cross-border , thus preventing member states from imposing restrictions on the development , marketing and use of ai systems , unless explicitly authorised by this regulation.


### (1) the purpose of this regulation is to improve the functioning of the internal market by laying down a uniform legal framework in particular for the development , marketing and use of artificial intelligence in conformity with union values. this regulation pursues a number of overriding reasons of public interest , such as a high level of protection of health , safety and fundamental rights , and it ensures the free movement of ai-based goods and services cross-border , thus preventing member states from imposing restrictions on the development , marketing and use of ai systems , unless explicitly authorised by this regulation. ### (1) the purpose of this regulation is to improve the functioning of the internal market by laying down a uniform legal framework in particular for the development , marketing and use of artificial intelligence in conformity with union values. this regulation pursues a number of overriding reasons of public interest , such as a high level of protection of health , the environment , safety and fundamental rights , and it ensures the free movement of ai-based goods and services cross-border , thus preventing member states from imposing restrictions on the development , marketing and use of ai systems , unless explicitly authorised by this regulation.


### (5) a union legal framework laying down harmonised rules on artificial intelligence is therefore needed to foster the development , use and uptake of artificial intelligence in the internal market that at the same time meets a high level of protection of public interests , such as health and safety and the protection of fundamental rights , as recognised and protected by union law. to achieve that objective , rules regulating the placing on the market and putting into service of certain ai systems should be laid down , thus ensuring the smooth functioning of the internal market and allowing those systems to benefit from the principle of free movement of goods and services. by laying down those rules , this regulation supports the objective of the union of being a global leader in the development of secure , trustworthy and ethical artificial intelligence , as stated by the european council33 , and it ensures the protection of ethical principles , as specifically requested by the european parliament34. ### (5) a union legal framework laying down harmonised rules on artificial intelligence is therefore needed to foster the development , use and uptake of artificial intelligence in the internal market that at the same time meets a high level of protection of public interests , such as health and safety and the protection of fundamental rights , as recognised and protected by union law. to achieve that objective , rules regulating the placing on the market and putting into service of certain ai systems should be laid down , thus ensuring the smooth functioning of the internal market and allowing those systems to benefit from the principle of free movement of goods and services. by laying down those rules , this regulation supports the objective of the union of being a global leader in the development of secure and trustworthy artificial intelligence based on fundamental rights , as stated by the european council33 , and it ensures the protection of ethical principles , as specifically requested by the european parliament34.


### (5) a union legal framework laying down harmonised rules on artificial intelligence is therefore needed to foster the development , use and uptake of artificial intelligence in the internal market that at the same time meets a high level of protection of public interests , such as health and safety and the protection of fundamental rights , as recognised and protected by union law. to achieve that objective , rules regulating the placing on the market and putting into service of certain ai systems should be laid down , thus ensuring the smooth functioning of the internal market and allowing those systems to benefit from the principle of free movement of goods and services. by laying down those rules , this regulation supports the objective of the union of being a global leader in the development of secure , trustworthy and ethical artificial intelligence , as stated by the european council33 , and it ensures the protection of ethical principles , as specifically requested by the european parliament34 . ### (5) a union legal framework laying down harmonised rules on artificial intelligence is therefore needed to foster the development , use and uptake of artificial intelligence in the internal market that at the same time meets a high level of protection of public interests , such as health and the environment and the protection of fundamental rights and values , as recognised and protected by union law. to achieve that objective , rules regulating the placing on the market and putting into service of certain ai systems should be laid down , thus ensuring the smooth functioning of the internal market and allowing those systems to benefit from the principle of free movement of goods and services. by laying down those rules , this regulation supports the objective of the union of being a global leader in the development of secure , trustworthy and ethical artificial intelligence , as stated by the european council33 , and it ensures the protection of ethical principles , as specifically requested by the european parliament34 .


### (5) a union legal framework laying down harmonised rules on artificial intelligence is therefore needed to foster the development , use and uptake of artificial intelligence in the internal market that at the same time meets a high level of protection of public interests , such as health and safety and the protection of fundamental rights , as recognised and protected by union law. to achieve that objective , rules regulating the placing on the market and putting into service of certain ai systems should be laid down , thus ensuring the smooth functioning of the internal market and allowing those systems to benefit from the principle of free movement of goods and services. by laying down those rules , this regulation supports the objective of the union of being a global leader in the development of secure , trustworthy and ethical artificial intelligence , as stated by the european council33 , and it ensures the protection of ethical principles , as specifically requested by the european parliament34 . ### (5) a union legal framework laying down harmonised rules on artificial intelligence is therefore needed to foster the development , use and uptake of artificial intelligence in the internal market that at the same time meets a high level of protection of public interests , such as health and safety , the environment and the protection of fundamental rights and values , as recognised and protected by union law. to achieve that objective , rules regulating the placing on the market and putting into service of certain ai systems should be laid down , thus ensuring the smooth functioning of the internal market and allowing those systems to benefit from the principle of free movement of goods and services. by laying down those rules , this regulation supports the objective of the union of being a global leader in the development of secure , trustworthy and ethical artificial intelligence , as stated by the european council33 , and it ensures the protection of ethical principles , as specifically requested by the european parliament34 .


### (6) the notion of ai system should be clearly defined to ensure legal certainty , while providing the flexibility to accommodate future technological developments. the definition should be based on the key functional characteristics of the software , in particular the ability , for a given set of human-defined objectives , to generate outputs such as content , predictions , recommendations , or decisions which influence the environment with which the system interacts , be it in a physical or digital dimension. ai systems can be designed to operate with varying levels of autonomy and be used on a stand-alone basis or as a component of a product , irrespective of whether the system is physically integrated into the product (embedded) or serve the functionality of the product without being integrated therein (non-embedded). the definition of ai system should be complemented by a list of specific techniques and approaches used for its development , which should be kept up-to–date in the light of market and technological developments through the adoption of delegated acts by the commission to amend that list. ### (6) the notion of ai system should be clearly defined to ensure legal certainty , while providing the flexibility to accommodate future technological developments. the definition should be based on the key functional characteristics of the software (and possibly also hardware) , in particular the ability , for a given set of human-defined objectives , to generate outputs such as content , predictions , recommendations , or decisions which influence the environment with which the system interacts , be it in a physical or digital dimension. ai systems can be designed to operate with varying levels of autonomy and be used on a stand-alone basis or as a component of a product , irrespective of whether the system is physically integrated into the product (embedded) or serve the functionality of the product without being integrated therein (non-embedded). the definition of ai system should be complemented by a list of specific techniques and approaches used for its development , which should be kept up-to–date in the light of market and technological developments through the adoption of delegated acts by the commission to amend that list.


### (13) in order to ensure a consistent and high level of protection of public interests as regards health , safety and fundamental rights , common normative standards for all high-risk ai systems should be established. those standards should be consistent with the charter of fundamental rights of the european union (the charter) and should be non-discriminatory and in line with the union’s international trade commitments. ### (13) in order to ensure a consistent and high level of protection of public interests as regards health , safety and fundamental rights , common normative standards for all ai systems should be established. those standards should be consistent with the charter of fundamental rights of the european union (the charter) and should be non-discriminatory and in line with the union’s international trade commitments.


### (13) in order to ensure a consistent and high level of protection of public interests as regards health , safety and fundamental rights , common normative standards for all high-risk ai systems should be established. those standards should be consistent with the charter of fundamental rights of the european union (the charter) and should be non-discriminatory and in line with the union’s international trade commitments. ### (13) in order to ensure a consistent and high level of protection of public interests as regards health , safety and fundamental rights , common normative standards for all high-risk ai systems should be established. those standards should be consistent with the charter of fundamental rights of the european union (the charter) and should be non-discriminatory and in line with the union’s international trade commitments. in order to ensure a minimum level of transparency on the ecological sustainability aspects of an ai system , providers and users should document (i) parameters including , but not limited to , resource consumption resulting from the design , data management , training and from the underlying infrastructures of the ai system; as well as (ii) the methods to reduce such impact.


### (13) in order to ensure a consistent and high level of protection of public interests as regards health , safety and fundamental rights , common normative standards for all high-risk ai systems should be established. those standards should be consistent with the charter of fundamental rights of the european union (the charter) and should be non-discriminatory and in line with the union’s international trade commitments. ### (13) in order to ensure a consistent and high level of protection of public interests as regards health , safety , the environment and fundamental rights , and values , common normative standards for ai systems should be established. those standards should be consistent with the charter of fundamental rights of the european union (the charter) , the european green deal (the green deal) , the joint declaration on digital rights of the union (the declaration) and the ethics guidelines for trustworthy artificial intelligence (ai) of the high-level expert group on artificial intelligence (ai hleg) , and should be non-discriminatory and in line with the union’s international commitments.


### (13) in order to ensure a consistent and high level of protection of public interests as regards health , safety and fundamental rights , common normative standards for all high-risk ai systems should be established. those standards should be consistent with the charter of fundamental rights of the european union (the charter) and should be non-discriminatory and in line with the union’s international trade commitments. ### (13) in order to ensure a consistent and high level of protection of public interests as regards health , safety and fundamental rights , common normative standards for all high-risk ai systems should be established. those standards should be consistent with the charter of fundamental rights of the european union (the charter) and should be non-discriminatory and in line with the union’s international commitments.


### (13) in order to ensure a consistent and high level of protection of public interests as regards health , safety and fundamental rights , common normative standards for all high-risk ai systems should be established. those standards should be consistent with the charter of fundamental rights of the european union (the charter) and should be non-discriminatory and in line with the union’s international trade commitments. ### (13) in order to ensure a consistent and high level of protection of public interests as regards health , safety , the environment and fundamental rights and values , common normative standards for ai systems should be established. those standards should be consistent with the charter of fundamental rights of the european union (the charter) , the european green deal (the green deal) , the joint declaration on digital rights of the union (the declaration) and the ethics guidelines for trustworthy artificial intelligence (ai) of the high-level expert group on artificial intelligence (ai hleg) , and should be non-discriminatory and in line with the union’s international commitments.


### (18) the use of ai systems for ‘real-time’ remote biometric identification of natural persons in publicly accessible spaces for the purpose of law enforcement is considered particularly intrusive in the rights and freedoms of the concerned persons , to the extent that it may affect the private life of a large part of the population , evoke a feeling of constant surveillance and indirectly dissuade the exercise of the freedom of assembly and other fundamental rights. in addition , the immediacy of the impact and the limited opportunities for further checks or corrections in relation to the use of such systems operating in ‘real-time’ carry heightened risks for the rights and freedoms of the persons that are concerned by law enforcement activities. ### (18) the use of ai systems for ‘real-time’ remote biometric identification of natural persons in publicly accessible spaces for the purpose of law enforcement improperly encroaches on the rights and freedoms of persons and is detrimental to the private life of a large part of the population in that it makes constant surveillance possible and , in so doing , makes it difficult to exercise freedom of assembly and other fundamental rights. in addition , the immediacy of the impact and the limited opportunities for further checks or corrections in relation to the use of such systems operating in ‘real-time’ carry heightened risks for the rights and freedoms of the persons that are concerned by law enforcement activities.


### (18) the use of ai systems for ‘real-time’ remote biometric identification of natural persons in publicly accessible spaces for the purpose of law enforcement is considered particularly intrusive in the rights and freedoms of the concerned persons , to the extent that it may affect the private life of a large part of the population , evoke a feeling of constant surveillance and indirectly dissuade the exercise of the freedom of assembly and other fundamental rights. in addition , the immediacy of the impact and the limited opportunities for further checks or corrections in relation to the use of such systems operating in ‘real-time’ carry heightened risks for the rights and freedoms of the persons that are concerned by law enforcement activities. ### (18) the use of ai systems for ‘real-time’ remote biometric identification of natural persons in publicly accessible spaces for the purpose of law enforcement is considered particularly intrusive in the rights and freedoms of the concerned persons , to the extent that it may affect the private life of a large part of the population , evoke a feeling of constant surveillance and dissuade the exercise of the freedom of assembly and other fundamental rights. in addition , the immediacy of the impact and the limited opportunities for further checks or corrections in relation to the use of such systems operating in ‘real-time’ carry heightened risks for the rights and freedoms of the persons that are concerned by law enforcement activities.


### (18) the use of ai systems for ‘real-time’ remote biometric identification of natural persons in publicly accessible spaces for the purpose of law enforcement is considered particularly intrusive in the rights and freedoms of the concerned persons , to the extent that it may affect the private life of a large part of the population , evoke a feeling of constant surveillance and indirectly dissuade the exercise of the freedom of assembly and other fundamental rights. in addition , the immediacy of the impact and the limited opportunities for further checks or corrections in relation to the use of such systems operating in ‘real-time’ carry heightened risks for the rights and freedoms of the persons that are concerned by law enforcement activities. ### (18) the use of ai systems for ‘real-time’ remote biometric identification of natural persons in publicly accessible spaces for the purpose of law enforcement is considered particularly intrusive in the rights and freedoms of the concerned persons , to the extent that it may affect the private life of a large part of the population , evoke a feeling of constant surveillance and indirectly dissuade the exercise of the freedom of assembly and other fundamental rights. in addition , the immediacy of the impact and the limited opportunities for further checks or corrections in relation to the use of such systems operating in ‘real-time’ carry heightened risks for the rights and freedoms of the persons that are concerned by law enforcement activities. such ai systems should be therefore prohibited.


### (19) the use of those systems for the purpose of law enforcement should therefore be prohibited , except in three exhaustively listed and narrowly defined situations , where the use is strictly necessary to achieve a substantial public interest , the importance of which outweighs the risks. those situations involve the search for potential victims of crime , including missing children; certain threats to the life or physical safety of natural persons or of a terrorist attack; and the detection , localisation , identification or prosecution of perpetrators or suspects of the criminal offences referred to in council framework decision 2002/584/jha38if those criminal offences are punishable in the member state concerned by a custodial sentence or a detention order for a maximum period of at least three years and as they are defined in the law of that member state. such threshold for the custodial sentence or detention order in accordance with national law contributes to ensure that the offence should be serious enough to potentially justify the use of ‘real-time’ remote biometric identification systems. moreover , of the 32 criminal offences listed in the council framework decision 2002/584/jha , some are in practice likely to be more relevant than others , in that the recourse to ‘real-time’ remote biometric identification will foreseeably be necessary and proportionate to highly varying degrees for the practical pursuit of the detection , localisation , identification or prosecution of a perpetrator or suspect of the different criminal offences listed and having regard to the likely differences in the seriousness , probability and scale of the harm or possible negative consequences. ### (19) the use of those systems in publicly accessible spaces should therefore be prohibited as a matter of principle.