### union companies have expressed their interest through the public consultation in the responsible sourcing of minerals and reported on current industry schemes designed to pursue their corporate social responsibility objectives , customer requests , or the security of their supplies . however , union companies have also reported countless difficulties in the exercise of supply chain due diligence because of lengthy and complex global supply chains involving a high number of operators that are often insufficiently aware or ethically unconcerned . the cost of responsible sourcing and their potential impact on competitiveness notably on smes should be monitored by the commission . ### union companies have expressed their interest through the public consultation in the responsible sourcing of minerals and reported on current industry schemes designed to pursue their corporate social responsibility objectives , customer requests , or the security of their supplies . in accordance with the oecd due diligence guidance it is recognized that due diligence in conflict - affected and high - risk areas presents practical challenges and that flexibility is therefore needed in the application thereof . the nature and extent of due diligence that is appropriate for an enterprises’ individual circumstances depend on a number of factors , including its size and position in the supply chain , fully taking account of the challenges faced by smes .


### self - certification as a responsible importer ### operator obligations


### ‘ conflict - affected and high - risk areas’ means areas in a state of armed conflict , fragile post - conflict as well as areas witnessing weak or non - existent governance and security , such as failed states , and widespread and systematic violations of international law , including human rights abuses ; ### ‘ conflict - affected and high - risk areas’ means areas identified by the presence of armed conflict , widespread violence or other risks of harm to people and , for these purposes , it is recognized that : armed conflict may take a variety of forms , such as a conflict of international or non - international character , which may involve two or more states , or may consist of wars of liberation , or insurgencies , civil wars ; and high - - risk areas may include areas of political instability or repression , institutional weakness , insecurity , collapse of civil infrastructure and widespread violence , both of which areas are often characterized by widespread human rights abuses and violations of national or international law ;


### in the context of this regulation , supply chain due diligence is an on - going , proactive and reactive process through which business operators monitor and administer their purchases and sales with a view to ensuring that they do not contribute to conflict and adverse impacts thereof . ### in the context of this regulation , and in line with the oecd due diligence guidance , supply chain due diligence is an on - going , proactive and reactive process through which business operators monitor and administer their purchases and sales with a view to ensuring that they respect human rights and do not contribute to conflict and adverse impacts thereof .


### the commission should report regularly to the council and the european parliament on the effects of the scheme . no later than three years after entering into force and every six years thereafter , the commission should review the functioning and the effectiveness of this regulation , including as regards the promotion of responsible sourcing of the minerals within its scope from conflict - affected and high - risk areas . the reports may be accompanied , if necessary , by appropriate legislative proposals , which may include mandatory measures , ### the commission should report regularly to the council and the european parliament on the effects of the scheme . no later than three years after entering into force and every six years thereafter , the commission should review the functioning and the effectiveness of this regulation .


### this regulation sets up a union system for supply chain due diligence self - certification in order to curtail opportunities for armed groups and security forces12 to trade in tin , tantalum and tungsten , their ores , and gold . it is designed to provide transparency and certainty as regards the supply practices of importers , smelters and refiners sourcing from conflict - affected and high - risk areas . __________________ 12 ‘ armed groups and security forces’ as defined in annex ii of the oecd due diligence guidance for responsible supply chains of minerals from conflict - affected and high - risk areas : second edition , oecd publishing . http : / / dx . doi . org / 10 . 1787 / 9789264185050 - en . ### this regulation sets up a union system for supply chain due diligence designed to :


### in order to ensure the proper implementation of this regulation , implementing powers should be conferred on the commission . the implementing powers relating to the list of responsible smelters and refiners and the list of member state competent authorities should be exercised in accordance with regulation no 182 / 201111 . __________________ 11 regulation no 182 / 2011 of the european parliament and of the council of 16 february 2011 laying down the rules and general principles concerning mechanisms for control by member states of the commission’s exercise of implementing powers . ### in order to amend annex i and annex ii to this regulation , the commission shall be empowered to adopt delegated acts in accordance with article 290 tfeu , following the provisions laid down in this regulation .


### globalisation and technological change is likely to further increase the interconnectedness and interdependence of world economies . labour reallocation is an integral and inevitable part of such economic change . if the benefits of change are to be distributed fairly , offering assistance to displaced workers and those threatened by displacement is of utmost importance . the ‘ eu quality framework for anticipation of change and restructuring’22 , is the union policy instrument that sets the framework of best practice for anticipating and dealing with corporate restructuring . it offers a comprehensive framework on how the challenges of economic adjustment and restructuring and their employment and social impact should be addressed by adequate policy means . it also calls upon member states to use eu and national funding in a way to ensure that the social impact of restructuring , especially the adverse effects on employment , can be cushioned more effectively . the main union instruments to assist workers affected are the european social fund plus , which is designed to offer assistance in an anticipatory way , and the egf , which is designed to offer assistance in the case of unexpected major restructuring events in a reactive manner . _________________ 22 communication from the commission to the european parliament , the council , the european economic and social committee and the committee of the regions eu quality framework for anticipation of change and restructuring , 882 final , 13 . 12 . 2013 ) . ### globalisation and technological change is likely to further increase the interconnectedness and interdependence of world economies . labour reallocation is an integral part of such economic change . if the benefits of change are to be distributed fairly , offering assistance to displaced workers and those threatened by displacement is of utmost importance . the ‘ eu quality framework for anticipation of change and restructuring’22 , is the union policy instrument that sets the framework of best practice for anticipating and dealing with corporate restructuring . it offers a comprehensive framework on how the challenges of economic adjustment and restructuring and their employment and social impact should be addressed by adequate policy means . without prejudice to the social responsibilities of the business community , it also calls upon member states to use eu and national funding in a way to ensure that the social impact of restructuring , especially the adverse effects on employment , can be cushioned more effectively . the main union instruments to assist workers affected are the european social fund plus , which is designed to offer assistance in an anticipatory way , and the egf , which is designed to offer assistance in the case of unexpected major restructuring events in a reactive manner . _________________ 22 communication from the commission to the european parliament , the council , the european economic and social committee and the committee of the regions eu quality framework for anticipation of change and restructuring , 882 final , 13 . 12 . 2013 ) .


### taking into account the information gathered as referred to in this chapter , the european commission shall submit every two years a report to the european parliament , the council , the committee of the regions and the european economic and social committee on labour mobility within the union and the services provided to workers to facilitate the exercise of the freedom of movement in accordance with article 46 tfeu . ### taking into account the information gathered as referred to in this chapter , the european commission shall submit every year a report to the european parliament , the council , the committee of the regions and the european economic and social committee on labour mobility within the union and the services provided to workers to facilitate the exercise of the freedom of movement in accordance with article 46 tfeu .


### the free movement of workers is a key element to the development of a more integrated union labour market which allows worker mobility from high unemployment areas to areas characterised by labour shortages . it also contributes to finding the right skills for vacant positions and overcoming bottlenecks in the labour market . ### the free movement of workers is a key element to the development of an effective freedom of movement and residence . it may also contribute to finding the right skills for vacant positions and overcoming bottlenecks in the labour market .


### member states may require eures partners to contribute to ### member states shall require eures partners to contribute to :


### a broader membership of the eures network has social , economic and financial benefits . it improves efficiency in service delivery by facilitating partnerships , enhancing complementarity and quality improvements . it increases the market share of the eures network insofar as new members make available job vacancies , job applications and curriculum vitae . transnational and cross - border co - operation , which is a key feature of the operation of the eures network , could generate innovative forms of learning and co - operation between employment services , including on quality standards for job vacancies and support services . the eures network would therefore enhance its relevance as one of the key union tools available to member states and the european commission for supporting concrete measures towards a high level of employment within the union . ### transnational and cross - border co - operation , which is a key feature of the operation of the eures network , could generate innovative forms of learning and co - operation between employment services , including on quality standards for job vacancies and support services . the eures network should enhance its relevance as one of the key union tools available to member states and the european commission for supporting active employment policies within the union .


### the functioning of a european network of employment services between member states and the commission ; ### the functioning of a european network of employment services between member states and the commission , with the appropriate involvement of the social partners ;


### increased voluntary geographical and occupational mobility in the union on a fair basis ; ### to support voluntary geographical and occupational mobility in the union on a fair basis , in full respect and promotion of safe , decent and regulated working conditions and rights ;


### the european commission shall submit to the european parliament , the council , the committee of the regions and the european economic and social committee an ex - post evaluation on the operation and effects of this regulation five years after its entry into force . ### the european commission shall submit to the european parliament , the council , the committee of the regions and the european economic and social committee an ex - post evaluation on the operation and effects of this regulation two years after its entry into force .


### a profound understanding of labour demand in terms of occupations , sectors and needs of employers would benefit the right of free movement of workers within the union and therefore support services should include good quality assistance to employers , small and medium sized enterprises in particular . close working relationships between employment services and employers will increase the pool of job vacancies and job matching of suitable candidates , secure pathways for job seekers in particular those in vulnerable groups and improve labour market intelligence . ### a profound understanding of labour demand in terms of occupations , sectors and needs of employers would benefit the right of free movement of workers within the union .


### where appropriate , to refer to another eures partner . ### where appropriate , to refer to the public employment services .


### the sharing of draft activity plans under the programming cycle among member states should enable the national coordination offices , acting on behalf of the member states , together with the european coordination office , to direct the resources of the eures network toward appropriate actions and projects , and thereby steer the development of the eures network as a more result - oriented tool responsive to the needs of workers according to the dynamics of labour markets . ### the sharing of draft activity plans under the programming cycle among member states should enable the national coordination offices , acting on behalf of the member states , together with the european coordination office and with the appropriate involvement of the social partners , to direct the resources of the eures network toward appropriate actions and projects , and thereby steer the development of the eures network as a more result - oriented tool responsive to the needs of workers according to the dynamics of labour markets .


### particular attention should be paid to supporting mobility in the cross - border regions for and providing services to frontier workers who are living in one member state and working in another and have to cope with different national practices and legal systems and encounters specific administrative , legal or tax obstacles to mobility . member states may choose to set up specific support structures to facilitate this kind of mobility , such structures should , within the framework of the eures network , address the specific needs for information , guidance , cross - border matching between labour demand and supply and the resulting placements . ### particular attention should be paid to supporting mobility in the cross - border regions for and providing services to frontier workers who are living in one member state and working in another and have to cope with different national practices and legal systems and encounters specific administrative , legal or tax obstacles to mobility . member states should set up specific support structures to this kind of mobility including public authorities , employment services and social partners . such structures should , within the framework of the eures network , address the specific needs for information , guidance , cross - border matching between labour demand and supply and the resulting placements .


### the coordination group is composed of representatives of the european coordination office and the national coordination offices . ### the coordination group shall be composed of representatives of the european coordination office and the national coordination offices and the social partner organisations .


### the rules applicable to workers ; ### the rights benefiting , and rules applicable to , workers ;


### extended producer responsibility schemes form an essential part of efficient waste management , but their effectiveness and performance differ significantly between member states . thus , it is necessary to set minimum operating requirements for extended producer responsibility . those requirements should reduce costs and boost performance , as well as ensure a level - playing field , including for small and medium sized enterprises , and avoid obstacles to the smooth functioning of the internal market . they should also contribute to the incorporation of end - of - life costs into product prices and provide incentives for producers to take better into account recyclability and reusability when designing their products . the requirements should apply to both new and existing extended producer responsibility schemes . a transitional period is however necessary for existing extended producer responsibility schemes to adapt their structures and procedures to the new requirements . ### extended producer responsibility schemes form an essential part of efficient waste management , but their effectiveness and performance differ significantly between member states . thus , it is necessary to set minimum mandatory operating requirements for extended producer responsibility schemes . those requirements should reduce costs and boost performance , facilitate better implementation and enforcement of separate collection and sorting , ensure better quality recycling , help secure cost - efficient access to secondary raw materials as well as ensure a level - playing field , including for small and medium sized enterprises , and avoid obstacles to the smooth functioning of the internal market . they should also contribute to the incorporation of end - of - life costs into product prices and provide incentives for producers to take better into account recyclability and reusability when designing their products . the requirements should apply to both new and existing extended producer responsibility schemes . a transitional period is however necessary for existing extended producer responsibility schemes and for member states without extended producer responsibility to adapt their structures and procedures to the new requirements . during the transition period , member states without extended producer responsibility should ensure that their waste management systems deliver results in an enforceable , transparent and accountable manner which is entirely consistent with the minimum requirements for extended producer responsibility schemes .


### member states shall take measures , as appropriate , to promote preparing for re - use activities , notably by encouraging the establishment of and support for re - use and repair networks and by facilitating the access of such networks to waste collection points , and by promoting the use of economic instruments , procurement criteria , quantitative objectives or other measures . ### member states shall take measures , to promote preparing for re - use activities , notably by encouraging the establishment of and support of preparing for re - use operators and their networks , in particular those which operate as social enterprises , and by facilitating the access of such networks to waste collection points and facilities , and by promoting the use of economic instruments , procurement criteria or other measures .


### member states shall take measures , as appropriate , to promote preparing for re - use activities , notably by encouraging the establishment of and support for re - use and repair networks and by facilitating the access of such networks to waste collection points , and by promoting the use of economic instruments , procurement criteria , quantitative objectives or other measures . ### member states shall take measures , as appropriate , to promote preparing for re - use activities , notably by encouraging the establishment of and support of preparing for re - use operators and their networks , in particular those which operate as social and solidarity enterprises , and by facilitating the access of such networks to waste collection points and facilities , and by promoting the use of economic instruments , procurement criteria , quantitative objectives or other measures .


### many member states have yet to develop the necessary waste management infrastructure . it is therefore essential to set long - term policy objectives in order to guide measures and investments , notably by preventing the creation of structural overcapacities for the treatment of residual waste and lock - ins of recyclable materials at the bottom of the waste hierarchy . ### many member states have yet to develop the necessary waste management infrastructure . it is therefore essential to set long - term policy objectives in order to guide measures and investments , notably by preventing the creation of structural overcapacities for the treatment of residual waste or for landfilling and lock - ins of recyclable materials at the lowest level of the waste hierarchy .


### statistical data reported by member states are essential for the commission to assess compliance with waste legislation across the member states . the quality , reliability and comparability of statistics should be improved by introducing a single entry point for all waste data , deleting obsolete reporting requirements , benchmarking national reporting methodologies and introducing a data quality check report . therefore , when reporting on the achievement of the targets set out in waste legislation , member states shall use the most recent methodology developed by the commission and the national statistical offices of the member states . ### data reported by member states are essential for the commission to assess compliance with waste legislation across the member states . the quality , reliability and comparability of reported data should be improved by introducing a single entry point for all waste data , deleting obsolete reporting requirements , benchmarking national reporting methodologies and introducing a data quality check report . therefore , when reporting on the achievement of the targets set out in waste legislation , member states shall use the most recent methodology developed by the commission , the national statistical offices of the member states and the national authorities responsible for waste management .


### estonia , greece , croatia , latvia , malta , romania and slovakia may obtain five additional years for the attainment of the targets referred to in paragraph 2 and . the member state shall notify the commission of its intention to make use of this provision at the latest 24 months before the respective deadlines laid down in paragraphs 2 and . in the event of an extension , the member state shall take the necessary measures to increase the preparing for re - use and the recycling of municipal waste to a minimum of 50% and 60% by weight , by 2025 and 2030 respectively . ### estonia , greece , cyprus , croatia , latvia , malta , romania and slovakia may obtain five additional years for the attainment of the targets referred to in paragraph 2 and . the member state shall notify the commission of its intention to make use of this provision at the latest 24 months before the respective deadlines laid down in paragraphs 2 and . in the event of an extension , the member state shall take the necessary measures to increase the preparing for re - use and the recycling of municipal waste to a minimum of 50% and 60% by weight , by 2025 and 2030 respectively .


### eur 6 , 500 , 000 , 000 from the defence cluster for the specific objective referred to in article 3 ; ### eur 6 , 500 , 000 , 000 from the defence cluster will be redirected to civilian purposes in line with the objectives referred to in article 3 . as in article 41 of the treaty on european union ‘ expenditure arising from operations having military or defence implications’ is prohibited from being charged to the eu budget ;


### eur 11 , 285 , 493 , 000 transferred from the cohesion fund to be spent in line with this regulation exclusively in member states eligible for funding from the cohesion fund ; ### eur 11 , 285 , 493 , 000 transferred from the european union budget , which should come from resources used to date for military or security purposes ;


### support through the esf + should be used to promote equal access for all , in particular for disadvantaged groups , to quality , non - segregated and inclusive education and training , from early childhood education and care through general and vocational education and training and to tertiary level , as well as adult education and learning , thereby fostering permeability between education and training sectors , preventing early school leaving , improving health literacy , reinforcing links with non - formal and informal learning and facilitating learning mobility for all . synergies with the erasmus programme , notably to facilitate the participation of disadvantaged learners in learning mobility , should be supported within this context . ### support through the esf + should be used to promote equal access for all , in particular for those who belong to disadvantaged groups , to quality , non - segregated and inclusive education and training , from early childhood education and care through general and vocational education and training and to tertiary level , as well as adult education and learning , thereby fostering permeability between education and training sectors , preventing early school leaving , improving health literacy , reinforcing links with non - formal and informal learning and facilitating learning mobility for all . synergies with the erasmus programme , notably to facilitate the participation of disadvantaged learners in learning mobility , should be supported within this context .


### promoting women’s labour market participation , a better work / life balance including access to childcare , a healthy and well–adapted working environment addressing health risks , adaptation of workers , enterprises and entrepreneurs to change , and active and healthy ageing ; ### promoting equality between men and women in all areas , including promoting women ' s labour market participation , career progression , equal pay for equal work and a better work / life balance , with a special focus on single parents , including access to childcare and care for the elderly ; promoting a healthy and well–adapted working environment addressing health risks ; promoting adaptation of enterprises and entrepreneurs to change , and active and healthy ageing ;


### member states and , where appropriate the commission , shall foster synergies and ensure coordination , complementarity and coherence between the esf + and other union funds , programmes and instruments such as erasmus , the asylum and migration fund and the reform support programme , including the reform delivery tool and the technical support instrument , both in the planning phase and during implementation . member states and , where appropriate the commission , shall optimise mechanisms for coordination to avoid duplication of effort and ensure close cooperation between those responsible for implementation to deliver coherent and streamlined support actions . ### member states and , where appropriate the commission , shall foster synergies and ensure coordination , complementarity and coherence between the esf + and other union funds , programmes and instruments such as the post - 2020 eu framework for national roma integration strategies , erasmus , the european regional development fund , the justice , rights and values fund , the asylum and migration fund and the reform support programme , including the reform delivery tool and the technical support instrument , both in the planning phase and during implementation . member states and , where appropriate the commission , shall optimise mechanisms for coordination to avoid duplication of effort and ensure close cooperation between those responsible for implementation to deliver coherent and streamlined support actions .


### the esf + should support member states’ efforts to tackle poverty with a view to breaking the cycle of disadvantage across generations and promote social inclusion by ensuring equal opportunities for all , tackling discrimination and addressing health inequalities . this implies mobilising a range of policies targeting the most disadvantaged people regardless of their age , including children , marginalised communities such as the roma , and the working poor . the esf + should promote the active inclusion of people far from the labour market with a view to ensuring their socio - economic integration . the esf + should be also used to enhance timely and equal access to affordable , sustainable and high quality services such as healthcare and long - term care , in particular family and community - based care services . the esf + should contribute to the modernisation of social protection systems with a view in particular to promoting their accessibility . ### the esf + should support member states’ efforts to eradicate poverty with a view to breaking the cycle of disadvantage across generations and achieve social inclusion by ensuring equal opportunities for all , removing discrimination and addressing health inequalities . this implies mobilising a range of policies targeting the most disadvantaged people regardless of their age or nationality , including children , marginalised communities such as the roma , people with disabilities , people experiencing homelessness , third - country nationals and the working poor . the esf + should promote the active inclusion of people far from the labour market with a view to ensuring their socio - economic integration . the esf + should be also used to enhance timely and equal access to free or affordable , sustainable and high quality services such as healthcare and long - term care , in particular family and community - based care services . the esf + should contribute to the modernisation of social protection systems with a view in particular to promoting their accessibility .


### ' accompanying measures ' means activities provided in addition to the distribution of food and / or basic material assistance with the aim of addressing social exclusion such as referring to and providing social services or advice on managing a household budget ; ### ' accompanying measures ' means activities provided in addition to the distribution of food and basic material assistance with the aim of addressing social exclusion and ending poverty such as referring to and providing social services ;


### promoting socio - economic integration of third country nationals and of marginalised communities such as the roma ; ### ending discrimination against and promoting socio - economic inclusion of marginalised communities , such as the roma , with an integrated approach across different sectors ;


### member states shall allocate at least 25% of their esf + resources under shared management to the specific objectives for the social inclusion policy area set out in points to of article 4 , including the promotion of the socio - economic integration of third country nationals . ### member states shall allocate at least 30% of their esf + resources under shared management to the specific objectives for the social inclusion policy area set out in points to of article 4 , including the promotion of the socio - economic integration of third country nationals .


### in view of this wider scope of the esf + it is appropriate to foresee that the aims to enhance the effectiveness of labour markets and promote access to quality employment , to improve the access to and the quality of education and training as well as to promote social inclusion and health and to reduce poverty are not only implemented under shared management , but also under direct and indirect management under the employment and social innovation and health strands for actions required at union level . ### in view of this wider scope of the esf + it is appropriate to foresee that the aims to enhance the effectiveness of labour markets and promote access to quality employment , to improve the access to and the quality of education and training as well as to promote social inclusion and health and to eradicate poverty are not only implemented under shared management , but also under direct and indirect management under the employment and social innovation and health strands for actions required at union level .


### in order to meet the objectives of the programme and to facilitate the lives of citizens and businesses , high - quality user - centric public services need to be put in place . this implies that public administrations will need to start working in new ways , bring down silos between the different parts of their administrations , and to engage in the co - creation of these public services with citizens and businesses . moreover , the continuous and steady increase of cross - border activities in the internal market requires provision of up - to - date information on the rights of businesses and citizens , but also information explaining the administrative formalities . in addition , provision of legal advice and helping to solve problems which occur at cross national level becomes essential . furthermore , connecting national administrations in a simple and efficient manner as well as evaluating how the internal market works on the ground is necessary . the programme should therefore support the following existing internal market governance tools : the your europe portal which should be a backbone of the upcoming single digital gateway , your europe advice , solvit , the internal market information system and the single market scoreboard in order to improve citizens ' daily lives and businesses ' ability to trade across borders . ### in order to meet the objectives of the programme and to facilitate the lives of citizens and businesses , high - quality user - centric public services need to be put in place . this implies that public administrations will need to start working in new ways , bring down silos between the different parts of their administrations , and to engage in the co - creation of these public services with citizens . moreover , the continuous and steady increase of cross - border activities in the internal market requires provision of up - to - date information on the rights of businesses and citizens , but also information explaining the administrative formalities . in addition , provision of legal advice and helping to solve problems which occur at cross national level becomes essential . furthermore , connecting national administrations in a simple and efficient manner as well as evaluating how the internal market works on the ground is necessary . the programme should therefore support the following existing internal market governance tools : the your europe portal which should be a backbone of the upcoming single digital gateway , your europe advice , solvit , the internal market information system and the single market scoreboard in order to improve citizens ' daily lives and businesses ' ability to trade across borders .


### improving the competitiveness of enterprises with special emphasis on smes and achieving additionality through the provision of measures that provide various forms of support to smes , access to markets including the internationalisation of smes , favourable business environment for smes , the competitiveness of sectors , the modernisation of industry and the promotion of entrepreneurship ; ### improving the sustainability of enterprises with special emphasis on smes and achieving additionality through the provision of measures that provide various forms of support to smes , priority access to local markets and a favourable business environment for smes ;


### persons need specific legal protection where they acquire the information they report through their work - related activities and therefore run the risk of work - related retaliation . the underlying reason for providing them with protection is their position of economic vulnerability vis - à - vis the person on whom they de facto depend for work . when there is no such work - related power imbalance there is no need for protection against retaliation . ### persons need specific legal protection where they acquire the information they report through their work - related activities and therefore run the risk of work - related retaliation . the underlying reason for providing them with protection is their position of economic vulnerability vis - à - vis the person on whom they de facto depend for work .


### persons who work for an organisation or are in contact with it in the context of their work - related activities are often the first to know about threats or harm to the public interest which arise in this context . by ' blowing the whistle ' they play a key role in exposing and preventing breaches of the law and in safeguarding the welfare of society . however , potential whistleblowers are often discouraged from reporting their concerns or suspicions for fear of retaliation . ### persons who work for an organisation or are in contact with it in the context of their work - related activities are often the first to know about threats or harm to the public interest which arise in this context . by ' blowing the whistle ' they play a key role in exposing and preventing breaches of the law in safeguarding the welfare of society and in protecting the fundamental right to freedom of expression and information . however , potential whistleblowers are often discouraged from reporting their concerns or suspicions for fear of retaliation .


### in certain policy areas , breaches of union law may cause serious harm to the public interest , in the sense of creating significant risks for the welfare of society . where weaknesses of enforcement have been identified in those areas , and whistleblowers are in a privileged position to disclose breaches , it is necessary to enhance enforcement by ensuring effective protection of whistleblowers from retaliation and introducing effective reporting channels . ### breaches of union law may cause serious harm to the public interest , in the sense of creating significant risks for the welfare of society . where weaknesses of enforcement have been identified , and whistleblowers are in a privileged position to disclose breaches , it is necessary to enhance enforcement by ensuring effective protection of whistleblowers from retaliation and introducing effective reporting channels .


### provided the confidentiality of the identity of the reporting person is ensured , it is up to each individual private and public legal entity to define the kind of reporting channels to set up , such as in person , by post , by physical complaint box , by telephone hotline or through an online platform . however , reporting channels should not be limited to those amongst the tools , such as in - person reporting and complaint box , which do not guarantee confidentiality of the identity of the reporting person . ### provided the confidentiality or anonymity of the identity of the reporting person is ensured , it is up to each individual private and public legal entity to define the kind of reporting channels to set up , such as in person , by post , by physical complaint box , by telephone hotline or through an online platform . however , reporting channels should not be limited to those amongst the tools , such as in - person reporting and complaint box , which do not guarantee confidentiality of the identity of the reporting person .


### the regular review of the procedures of competent authorities and the exchange of good practices between them should guarantee that those procedures are adequate and thus serving their purpose . ### the regular review of the procedures of competent authorities and the exchange of good practices between them , including recommendations by civil society organisations , should guarantee that those procedures are adequate and thus serving their purpose .


### ‘ retaliation’ means any threatened or actual act or omission prompted by the internal or external reporting which occurs in a work - related context and causes or may cause unjustified detriment to the reporting person ; ### ‘ retaliation’ means any threatened or actual act or omission prompted by the internal or external reporting which causes or may cause unjustified detriment to the reporting person , to his or her colleagues , relatives , personal contacts and to persons facilitating the reporting and disclosure ;


### they are designed , set up and operated in a manner that ensures the completeness , integrity and confidentiality of the information and prevents access to non - authorised staff members of the competent authority ; ### they are designed , set up and operated in a manner that ensures the completeness , integrity and confidentiality of the information , prevents access to non - authorised staff members of the competent authority and protects the identity of the reporting persons and of the intermediaries ;


### persons who report information about threats or harm to the public interest obtained in the context of their work - related activities make use of their right to freedom of expression . the right to freedom of expression , enshrined in article 11 of the charter of fundamental rights of the european union and in article 10 of the european convention on human rights , encompasses media freedom and pluralism . ### persons who report information particularly about threats or harm to the public interest make use of their right to freedom of expression . the right to freedom of expression , enshrined in article 11 of the charter of fundamental rights of the european union and in article 10 of the european convention on human rights , encompasses freedom of information as well as media freedom and pluralism .


### coercion , intimidation , harassment or ostracism at the workplace ; ### coercion , intimidation , harassment or ostracism ;


### breach the duty of maintaining the confidentiality of the identity of reporting persons . ### breach the duty of maintaining the confidentiality of the identity of reporting persons without having obtained their consent ;


### reporting persons shall have access to remedial measures against retaliation as appropriate , including interim relief pending the resolution of legal proceedings , in accordance with the national framework . ### reporting persons shall have access to remedial measures against retaliation covering all direct , indirect , and future consequences of any detriment , including , as appropriate , a ) making any provision to act taken in breach of article 14 void ; b ) the reinstatement of the reporting person with equal salary , status , duties and working conditions ; c ) the transfer of the reporting person to a new department or supervisor ; d ) compensation for pain and suffering ; e ) interim relief pending the resolution of legal proceedings .


### accordingly , common minimum standards ensuring effective whistleblower protection should apply in those acts and policy areas where i ) there is a need to strengthen enforcement ; ii ) under - reporting by whistleblowers is a key factor affecting enforcement , and iii ) breaches of union law cause serious harm to the public interest . ### accordingly , common minimum standards ensuring effective whistleblower protection should apply to all eu acts and policy areas where a public interest may arise .


### reporting persons shall have access to remedial measures against retaliation as appropriate , including interim relief pending the resolution of legal proceedings , in accordance with the national framework . ### reporting persons and intermediaries shall have access to remedial measures against retaliation covering all direct , indirect , and future consequences of any detriment , including , as appropriate : a ) making any provision to act taken in breach of article 14 void ; b ) the reinstatement of the reporting person with equal salary , status , duties and working conditions ; c ) the transfer of the reporting person to a new department or supervisor ; d ) compensation for lost past , present , or future earnings and status ; e ) compensation for pain and suffering ; f ) compensation for economic losses particularly in the case of dismissal ; g ) compensation for other economic damage such as legal expenses and costs of medical treatment , for psycho - social and non - material damage ; h ) interim relief pending the resolution of legal proceedings .


### effective enforcement of union law requires that protection is granted to the broadest possible range of categories of persons , who , irrespective of whether they are eu citizens or third - country nationals , by virtue of work - related activities , have privileged access to information about breaches that would be in the public’s interest to report and who may suffer retaliation if they report them . member states should ensure that the need for protection is determined by reference to all the relevant circumstances and not merely by reference to the nature of the relationship , so as to cover the whole range of persons connected in a broad sense to the organisation where the breach has occurred . ### effective enforcement of union law requires that protection is granted to the broadest possible range of categories of persons , who , irrespective of whether they are eu citizens or third - country nationals , by virtue of their activities , have privileged access to information about breaches that would be in the public’s interest to report and who may suffer retaliation if they report them . member states should ensure that the need for protection is determined by reference to all the relevant circumstances and not merely by reference to the nature of the relationship , so as to cover the whole range of persons connected in a broad sense to the organisation where the breach has occurred .


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


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


### prohibition of retaliation against reporting persons ### prohibition of retaliation against reporting persons and intermediaries


### with a view to enhancing the enforcement of union law and policies in specific areas , this directive lays down common minimum standards for the protection of persons reporting on the following unlawful activities or abuse of law : ### with a view to enhancing the enforcement of union law and policies , this directive lays down common minimum standards for the protection of persons reporting on the following unlawful activities or abuse of law :


### in certain policy areas , breaches of union law may cause serious harm to the public interest , in the sense of creating significant risks for the welfare of society . where weaknesses of enforcement have been identified in those areas , and whistleblowers are in a privileged position to disclose breaches , it is necessary to enhance enforcement by ensuring effective protection of whistleblowers from retaliation and introducing effective reporting channels . ### in certain policy areas , breaches of union law may cause serious harm to the public interest , in the sense of creating significant risks for the welfare of society . if whistleblowers make a disclosure in the public interest , their effective protection from retaliation must be insured and effective internal and external reporting channels must be introduced .


### a person reporting to relevant bodies , offices or agencies of the union on breaches falling within the scope of this directive shall qualify for protection as laid down in this directive under the same conditions as a person who reported externally in accordance with the conditions set out in paragraph 2 . ### a person reporting to relevant bodies , offices or agencies of the union on breaches falling within the scope of this directive shall qualify for protection as laid down in this directive under the same conditions as a person who reported in accordance with the conditions set out in paragraph 1 .


### the objective of this directive , namely to strengthen enforcement in certain policy areas and acts where breaches of union law can cause serious harm to the public interest through effective whistleblower protection , cannot be sufficiently achieved by the member states acting alone or in an uncoordinated manner , but can rather be better achieved by union action providing minimum standards of harmonisation on whistleblower protection . moreover , only union action can provide coherence and align the existing union rules on whistleblower protection . therefore , the union may adopt measures in accordance with the principle of subsidiarity as set out in article 5 of the treaty on european union . in accordance with the principle of proportionality , as set out in that article , this directive does not go beyond what is necessary in order to achieve this objective . ### the objective of this directive , namely to strengthen enforcement where breaches of union law can cause serious harm to the public interest through effective whistleblower protection , cannot be sufficiently achieved by the member states acting alone or in an uncoordinated manner , but can rather be better achieved by union action providing minimum standards of harmonisation on whistleblower protection . moreover , only union action can provide coherence and align the existing union rules on whistleblower protection . therefore , the union may adopt measures in accordance with the principle of subsidiarity as set out in article 5 of the treaty on european union . in accordance with the principle of proportionality , as set out in that article , this directive does not go beyond what is necessary in order to achieve this objective .


### the confidentiality regime applicable to reports , and in particular the information in relation to the processing of personal data in accordance with article 13 of regulation 2016 / 679 , article 13 of directive 2016 / 680 and article 11 of regulation 45 / 2001 , as applicable . ### the confidentiality regime applicable to reports , and in particular the information in relation to the processing of personal data in accordance with article 5 and article 13 of regulation 2016 / 679 , article 13 of directive 2016 / 680 and article 11 of regulation 45 / 2001 , as applicable .


### persons who work for an organisation or are in contact with it in the context of their work - related activities are often the first to know about threats or harm to the public interest which arise in this context . by ' blowing the whistle ' they play a key role in exposing and preventing breaches of the law and in safeguarding the welfare of society . however , potential whistleblowers are often discouraged from reporting their concerns or suspicions for fear of retaliation . ### persons who work for an organisation or are in contact with it are often the first to know about threats or harm to the public interest which arise in this context . by ' blowing the whistle ' they play a key role in exposing and preventing breaches of the law , in safeguarding the welfare of society and in protecting the fundamental right to freedom of expression and information . however , potential whistleblowers are often discouraged from reporting their concerns or suspicions for fear of retaliation .


### ‘ disclosure’ means making information on breaches acquired within the work - related context available to the public domain ; ### ‘ disclosure’ means making information on breaches available to the public domain ;


### persons having the status of worker , with the meaning of article 45 tfeu ; ### persons having the status of worker and former worker with the meaning of article 45 tfeu ;


### member states shall ensure that competent authorities publish on their websites in a separate , easily identifiable and accessible section at least the following information : ### member states shall ensure that competent authorities publish on their websites in at least two official languages of the european union in a separate , easily identifiable and accessible section at least the following information :


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


### member states shall ensure that competent authorities keep records of every report received . ### member states shall ensure that competent authorities keep records of every report received for no longer that is necessary and proportionate for the reporting procedure .


### this directive shall apply to reporting persons working in the private or public sector who acquired information on breaches in a work - related context including , at least , the following : ### this directive shall apply to reporting persons working in the private or public sector who acquired information on breaches including , at least , the following :


### the statistics referred to in paragraph 1 shall relate to reference periods of three calendar months and shall be supplied to the commission within two months of the end of the reference period . the first reference period shall be january to march 2020 . ### the statistics referred to in paragraph 1 shall be disaggregated by age and sex of the person concerned , and by unaccompanied minors . they shall relate to reference periods of one calendar month and shall be supplied to the commission within two weeks of the end of the reference period . the first reference period shall be january 2020 .


### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . it is further appropriate to provide that the commission services may issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used . ### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting costs or prices may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials or energy , are not the result of free market forces because they are affected by unfair government intervention , including low environmental , social and tax standards . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : there are significant differences in the environmental performance of production , such as with regard to carbon emissions , or in labour standards , including as a result of non - ratification or non - implementation of core ilo conventions , or corporate tax standards , including low levels of taxation and lack of transparency ; and state interference with respect to export prices or costs . it is further appropriate to provide that the commission services issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used .


### articles 2 and 2 of regulation 2016 / 1036 stipulate the basis on which normal value should be determined in the case of imports from non - market economy countries . in view of developments with respect to certain countries that are members of the wto , it is appropriate that , for those countries , normal value should be determined on the basis of paragraphs 1 to 6a of article 2 of regulation 2016 / 1036 , with effect from the date on which this regulation enters into force , and subject to the provisions of this regulation . in the case of countries which are , at the date of initiation , not members of the wto and listed in annex i of regulation 2015 / 7552 , norma1 value should be determined on the basis of paragraph 7 of article 2 of regulation 2016 / 1036 , as amended by this regulation . this regulation should be without prejudice to establishing whether or not any wto member is a market economy . __________________ 2 regulation 2015 / 755 of the european parliament and of the council of 29 april 2015 on common rules for imports from certain third countries . ### in view of developments in world trade , concerning also members of the wto , including their effects on domestic industry , it is appropriate to determine normal value on the basis of paragraphs 1 to 6a of article 2 of regulation 2016 / 1036 , with effect from the date on which this regulation enters into force , and subject to the provisions of this regulation . in the case of non - market - economy countries which are members of the wto or that , at the date of initiation , are not members of the wto and listed in annex i of regulation 2015 / 7552 , norma1 value should be determined on the basis of paragraph 7 of article 2 of regulation 2016 / 1036 , as amended by this regulation . __________________ 2 regulation 2015 / 755 of the european parliament and of the council of 29 april 2015 on common rules for imports from certain third countries .


### this regulation establishes the criteria for determining whether an economic activity is environmentally sustainable for the purposes of establishing the degree of environmental sustainability of an investment . ### this regulation establishes the carbon based criteria for determining whether an economic activity is environmentally sustainable for the purposes of establishing the environmental sustainability of an individual investment project .


### experts appointed in a personal capacity , with proven knowledge and experience in the areas covered by this regulation . ### experts representing civil society , including non - governmental organisations , trade unions and experts working on human rights issues ;


### measures adopted by member states or by the union setting out any requirements on market actors in respect of financial products or corporate bonds that are marketed as environmentally sustainable . ### measures adopted by member states or by the union setting out any sustainability - related requirements on market actors in respect of financial products or corporate bonds .


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


### identify the most relevant potential contributions to the given environmental objective , considering not only the short - term but also the longer term impacts of a specific economic activity ; ### identify the most relevant potential contributions to the given environmental objective , considering not only the short - term but also the longer term impacts of a specific economic activity using a dynamic approach building on forward - looking climate and environmental scenario analysis where available including regional and sectoral differences within the real economy ;


### the general objective of prima is to develop the fully piloted and demonstrated common innovative solutions for water provision and food systems in the mediterranean region , to make them more climate resilient , efficient , cost - effective and sustainable , and to contribute to solving nutrition , health , well - being and migration problems upstream . ### the general objective of prima is to create social and economic development on both sides of the mediterranean sea by developing common innovative solutions for sustainable water use and provision and agri - food systems in the mediterranean region , to make them more climate resilient , efficient , cost - effective and sustainable , and to contribute to solving nutrition , health , well - being , water scarcity , environmental and migration problems upstream .


### prima aims at implementing a joint programme for the development and the adoption of innovative and integrated solutions for improving the efficiency , safety , security and sustainability of food production and water provision in the mediterranean area . prima should contribute to the achievement of the recently agreed sustainable development goals and to the forthcoming european sustainable development strategy . ### prima aims at implementing a joint programme for the development and the adoption of innovative and integrated solutions for improving the efficiency , safety , security and sustainability of agri - food production and water provision in the mediterranean area . taking into account that access to water and sanitation constitutes a fundamental human right and since securing food and water availability is of paramount importance in the region , prima should contribute to the achievement of the recently agreed sustainable development goals and to the forthcoming european sustainable development strategy .


### eib financing operations supporting the general objectives set out in point of paragraph 1 shall back investment projects in climate change mitigation and adaptation that contribute to the overall objectives of the united nations framework convention on climate change and of the paris agreement adopted under that convention , in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy , energy efficiency and sustainable transport , or by increasing resilience to the adverse impacts of climate change on vulnerable countries , sectors and communities . ### eib financing operations supporting the general objectives set out in point of paragraph 1 of this decision shall back investment projects in climate change mitigation and adaptation that contribute to the overall objectives of the united nations framework convention on climate change and of the paris agreement adopted under that convention , as referred to in article 9 of that agreement , in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy , energy efficiency and sustainable transport , or by increasing resilience to the adverse impacts of climate change on vulnerable countries , sectors and communities . the provision of such scaled - up financial contribution by eib shall aim to achieve a balance between mitigation and adaptation taking in due account country - driven strategies , priorities and needs of developing countries .


### the ‘ green ship’ concept should be further developed in relation to waste management , so that an effective reward system can be implemented for those vessels that reduce their waste on board . ### voluntary application of reduced fees for vessels that demonstrate good waste management practices beyond the required standards which result in the generation of reduced quantities of waste should be rewarded .


### member states shall evaluate and approve the waste reception and handling plan , monitor its implementation and ensure its re - approval at least every three years after it has been approved or re - approved , and after significant changes in the operation of the port have taken place . these changes shall include , but not be limited to , structural changes in traffic to the port , development of new infrastructure , changes in the demand and provision of port reception facilities , and new on - board treatment techniques . ### member states shall evaluate and approve the waste reception and handling plan , monitor its implementation and ensure its re - approval at least every five years after it has been approved or re - approved , and after significant changes in the operation of the port have taken place . these changes shall include , but not be limited to , structural changes in traffic to the port , development of new infrastructure , changes in the demand and provision of port reception facilities , and new on - board treatment techniques .


### the ‘ green ship’ concept should be further developed in relation to waste management , so that an effective reward system can be implemented for those vessels that reduce their waste on board . ### the ‘ green ship’ concept should be further developed and fully implemented in relation to waste management , so that an effective reward system can be implemented for those vessels that reduce their waste on board .


### all ships , irrespective of their flag , calling at , or operating within , a port of a member state , with the exception of any warship , naval auxiliary or other ship owned or operated by a state and used , for the time being , only on a government non - commercial basis ; ### all ships , irrespective of their flag , calling at , or operating within , a port of a member state , with the exception of any ship involved in port services within the meaning of article 1 . 2 of regulation 2017 / 352 ;


### the procurement of balancing capacity shall be facilitated on a regional level in accordance with point 8 of annex i . the procurement shall be based on a primary market and organised in such a way as to be non - discriminatory between market participants in the prequalification process individually or through aggregation . ### the procurement of balancing capacity shall be facilitated on a regional level in accordance with point 8 of annex i . the procurement shall be based on a primary market and be non - discriminatory between market participants in the prequalification process including in particular where participation takes place individually or through aggregation .


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


### market rules shall support the decarbonisation of the economy by enabling the integration of electricity from renewable energy sources and providing incentives for energy efficiency ; ### market rules shall support the decarbonisation of the economy by enabling the integration of electricity from renewable energy sources , providing incentives for energy efficiency and incentivizing demand side response at times when there is overreliance on carbon intensive generation ;


### by way of derogation from paragraph 1 , until [ op : two years after entry into force ] market operators may apply limits on maximum clearing prices for day - ahead and intraday timeframes in accordance with articles 41 and 54 of regulation 2015 / 1222 . in the event that limits are , or are anticipated to be , reached , they shall be raised for the following day . ### by way of derogation from paragraph 1 , nominated electricity market operators may apply harmonized limits on maximum clearing prices for single day - ahead coupling and single intra - day coupling in accordance with articles 41 and 54 of regulation 2015 / 1222 . such harmonized limits shall be set at the value close to the value of lost load . in the event that limits are , or are anticipated to be , reached , they shall be raised for the following day .


### there shall be no maximum limit of the wholesale electricity price unless it is set at the value of lost load as determined in accordance with article 10 . there shall be no minimum limit of the wholesale electricity price unless it is set at a value of minus 2000 &#8364 ; or less and , in the event that it is or anticipated to be reached , set at a lower value for the following day . this provision shall apply , inter alia , to bidding and clearing in all timeframes and include balancing energy and imbalance prices . ### there shall be no&#160 ; limit of the wholesale electricity price unless it is set at the value of lost load as determined in accordance with article 10 . this provision shall apply , inter alia , to bidding and clearing in all timeframes and include balancing energy and imbalance prices .


### the costs related to the activities of the eu dso entity shall be borne by distribution system operators who are registered members and shall be taken into account in the calculation of tariffs . regulatory authorities shall approve those costs only if they are reasonable and proportionate . ### the costs related to the activities of the eu dso entity shall be borne by distribution system operators who are registered members and shall be considered as eligible cost and taken into account by regulatory authority in the calculation of tariffs . regulatory authorities shall approve those costs only if they are reasonable and proportionate .


### capacity mechanisms shall not create unnecessary market distortions and not limit cross - border trade . the amount of capacity committed in the mechanism shall not go beyond what is necessary to address the concern . ### capacity mechanisms shall be designed in a way which does not create unnecessary market distortions and limit cross - border trade . the amount of capacity committed in the mechanism shall not go beyond what is necessary to address the concern .


### regional operational centres shall submit an annual report concerning their performance to entso for electricity , the agency , the regulatory authorities of the system operation region and the electricity coordination group established pursuant to article 1 of commission decision 2012 / c 353 / 0237 . _________________ 37 . commission decision of 15 november 2012 setting up the electricity coordination group . ### regional security coordinators shall submit an annual report concerning their performance to entso for electricity , the agency , the regulatory authorities of the security - coordinated region and the electricity coordination group established pursuant to article 1 of commission decision 2012 / c 353 / 0237 . _________________ 37 . commission decision of 15 november 2012 setting up the electricity coordination group .


### transmission system operators shall clearly establish beforehand how any congestion income will be used , and report on the actual use of that income . on an annual basis , and by 31 july each year , the national regulatory authorities shall publish a report setting out the amount of revenue collected for the 12 - month period ending on 30 june of the same year and how that revenue was used , including the specific projects the income has been used for or the amount placed on a separate account line , together with verification that that use complies with this regulation and the methodology developed pursuant to paragraph 3 . ### transmission system operators shall report on the actual use of congestion income . on an annual basis , the national regulatory authorities shall publish a report setting out the amount of revenue collected for the 12 - month period ending on 31 december of the same year and how that revenue was used .


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


### a procedure for the revision of decisions and recommendations adopted by regional operational centres in accordance with article 39 . ### a procedure for the revision of recommendations issued by regional security coordinators in accordance with article 39 .


### capacity mechanisms shall not create unnecessary market distortions and not limit cross - border trade . the amount of capacity committed in the mechanism shall not go beyond what is necessary to address the concern . ### capacity mechanisms shall be designed in a way which does not create unnecessary market distortions and not limit cross - border trade . the amount of capacity committed in the mechanism shall not go beyond what is necessary to address the concern .


### generating installations using renewable energy sources or high - efficiency cogeneration with an installed electricity capacity of less than 500 kw ; or ### generating installations using renewable energy sources or high - efficiency cogeneration with an installed electricity capacity of less than 1 mw ; or


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


### ' capacity mechanism ' means an administrative measure to ensure the achievement of the desired level of security of supply by remunerating resources for their availability not including measures relating to ancillary services ; ### ' capacity mechanism ' means an administrative measure to ensure the achievement of the necessary level of security of supply by remunerating resources for their availability not including measures relating to ancillary services ;


### guarantee the capability of transmission and distribution networks to transmit electricity produced from renewable energy sources or high - efficiency cogeneration with minimum possible curtailment or redispatching . that shall not prevent network planning from taking into account limited curtailment or redispatching where this is shown to be more economically efficient and does not exceed 5 % of installed capacities using renewable energy sources or high - efficiency cogeneration in their area ; ### guarantee the capability of transmission and distribution networks to transmit electricity produced from renewable energy sources or high - efficiency cogeneration with minimum possible curtailment or redispatching . that shall not prevent network planning from taking into account limited curtailment or redispatching where this is shown to be more economically efficient and does not exceed&#160 ; 2 % of installed capacities using renewable energy sources or high - efficiency cogeneration in their area ;


### transmission system operators shall provide the entso for electricity with the data it needs to carry out , every year , the european resource adequacy assessment . the entso for electricity shall carry out the assessment every year . ### transmission system operators shall provide the entso for electricity with the data it needs to carry out , every year , the european resource adequacy assessment . the entso for electricity shall carry out the assessment every year . market participants shall , based on their possibilities and data availability , provide transmission system operators with data regarding expected future utilization of generation sources .


### the day - to - day operation of regional operational centres shall be managed through cooperative decision - making . the cooperative - decision making process shall be based on : ### the day - to - day coordination within and between security - coordinated regions operation shall be managed through cooperative decision - making process based on :


### regional operational centres shall establish their costs in a transparent manner and report them to the agency and to the regulatory authorities of the system operation region . ### regional security coordinators shall establish their costs in a transparent manner and report them to the agency and to the regulatory authorities of the security - coordinated region .


### is based on appropriate scenarios of projected demand and supply including an economic assessment of the likelihood of retirement , new - build of generation assets and measures to reach energy efficiency targets and appropriate sensitivities on wholesale prices and carbon price developments ; ### is based on appropriate scenarios of projected demand and supply including an economic assessment of the likelihood of retirement , moth - balling , new - build of generation assets , measures to reach energy efficiency targets , measures to reach electricity interconnection targets and appropriate sensitivities on wholesale prices and carbon price developments ;


### the responsible system operators shall report at least once per year to the competent regulatory authority on curtailment or downward redispatching of generating installations using renewable energy sources or high - efficiency cogeneration and on measures taken to reduce the need for such curtailment or downward redispatching in the future . curtailment or redispatching of generating installations using renewable energy sources or high - efficiency cogeneration shall be subject to compensation pursuant to paragraph 6 . ### the responsible system operators shall report at least once per year to the competent regulatory authority on curtailment or downward redispatching of generating installations using renewable energy sources or high - efficiency cogeneration and on measures taken to reduce the need for such curtailment or downward redispatching in the future .


### ‘ congestion’ means a situation in which all requests from market participants to trade between two bidding zones cannot be accommodated because they would significantly affect the physical flows on network elements which cannot accommodate those flows ; ### ‘ congestion’ means a situation in which all requests from market participants to trade cannot be accommodated because they would significantly affect the physical flows on network elements which cannot accommodate those flows ;


### when applying capacity mechanisms member states shall have a reliability standard in place indicating their desired level of security of supply in a transparent manner . ### when applying capacity mechanisms member states shall have a reliability standard in place indicating the level of security of supply that they deem necessary in a transparent and objective manner . the reliability standard shall be set at a technically feasible and cost - effective level .


### distribution tariffs shall reflect the cost of use of the distribution network by system users including active customers , and may be differentiated based on system users’ consumption or generation profiles . where member states have implemented the deployment of smart metering systems , regulatory authorities may introduce time differentiated network tariffs , reflecting the use of the network , in a transparent and foreseeable way for the consumer . ### distribution tariffs shall reflect the cost and benefits of use of the distribution network by system users including active customers , and may be differentiated based on system users’ consumption or generation profiles . where member states have implemented the deployment of smart metering systems , regulatory authorities shall endeavour to may introduce time differentiated network tariffs , reflecting the use of the network , in a transparent and foreseeable way for the consumer .


### generating installations using renewable energy sources or high - efficiency cogeneration which have been commissioned prior to [ op : entry into force ] and have , when commissioned , been subject to priority dispatch under article 15 of directive 2012 / 27 / eu of the european parliament and of the council or article 16 of directive 2009 / 28 / ec of the european parliament and of the council35 shall remain subject to priority dispatch . priority dispatch shall no longer be applicable from the date where the generating installation is subject to significant modifications , which shall be the case at least where a new connection agreement is required or the generation capacity is increased . _________________ 35 directive 2009 / 28 / ec of the european parliament and of the council of 23 april 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing directives 2001 / 77 / ec and 2003 / 30 / ec . ### in order to maintain a stable regulatory framework for investors , generating installations using renewable energy sources or high - efficiency cogeneration which have been commissioned prior to [ op : entry into force ] and have , when commissioned , been subject to priority dispatch under article 15 of directive 2012 / 27 / eu of the european parliament and of the council or article 16 of directive 2009 / 28 / ec of the european parliament and of the council35 shall remain subject to priority dispatch . _________________ 35 directive 2009 / 28 / ec of the european parliament and of the council of 23 april 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing directives 2001 / 77 / ec and 2003 / 30 / ec .


### regulatory authorities shall provide incentives to distribution system operators to procure services for the operation and development of their networks and integrate innovative solutions in the distribution systems . for that purpose regulatory authorities shall recognise as eligible and include all relevant costs in distribution tariffs and introduce performance targets in order to incentivise distribution system operators to raise efficiencies , including energy efficiency , in their networks . ### regulatory authorities shall provide incentives to distribution system operators to procure services for the operation and development of their networks and integrate innovative solutions in the distribution systems . for that purpose regulatory authorities shall recognise as eligible and include all relevant costs in distribution tariffs and introduce performance targets in order to incentivise distribution system operators to raise efficiencies , including energy efficiency , in their networks . dsos and tsos shall be entitled to approve flexibility services that secure grid stability via network operating resources , i . e . costs for procuring such flexibility services or building and operating a storage installation providing the needed flexibility must be considered as grid infrastructure and must be treated equally as investments in grid expansion .


### 90 % of the net revenues from the sale of electricity on the day - ahead market that the generating or demand facility would have generated without the curtailment or redispatching request . where financial support is granted to generating or demand facilities based on the electricity volume generated or consumed , lost financial support shall be deemed part of the net revenues . ### net revenues from the sale of electricity on the day - ahead market that the generating or demand facility would have generated without the curtailment or redispatching request . where financial support is granted to generating or demand facilities based on the electricity volume generated or consumed , lost financial support shall be deemed part of the net revenues .


### the procurement of upward balancing capacity and downward balancing capacity shall be carried out separately . the contracting shall be performed for not longer than one day before the provision of the balancing capacity and the contracting period shall have a maximum of one day . ### the procurement of upward balancing capacity and downward balancing capacity shall be carried out separately , except in cases described in article 32 of commission regulation . . . / . . . establishing a guideline on electricity balancing . the contracting shall be performed on short - term basis for not longer than one day before the provision of the balancing capacity and the contracting period shall have a maximum of one day . when cost efficient , the contracting may be partially performed on a longer term basis with a longer contacting period .


### the procurement of balancing capacity shall be facilitated on a regional level in accordance with point 8 of annex i . the procurement shall be based on a primary market and organised in such a way as to be non - discriminatory between market participants in the prequalification process individually or through aggregation . ### the procurement of balancing capacity shall be facilitated on a regional level in accordance with point 8 of annex i . the procurement shall be based on a primary market and organised in such a way as to be non - discriminatory between market participants in the prequalification process , whether market participants participate individually or through aggregation .


### charges applied by network operators for access to networks , including charges for connection to the networks , charges for use of networks , and , where applicable , charges for related network reinforcements , shall be transparent , take into account the need for network security and flexibility and reflect actual costs incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non - discriminatory manner . in particular , they shall be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level , either positively or negatively . they shall not discriminate against energy storage and shall not create disincentives for participation in demand response . without prejudice to paragraph 3 , those charges shall not be distance - related . ### charges applied by network operators for access to networks , including charges for connection to the networks , charges for use of networks , and , where applicable , charges for related network reinforcements , shall be transparent , take into account the need for network security and flexibility and reflect actual costs incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non - discriminatory manner . without prejudice to article 15 and and the criteria in annex xi of directive 2012 / 27 / eu , they shall , in particular , be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level , either positively or negatively . they shall neither discriminate against nor provide incentives for energy storage and shall not create disincentives for participation in demand response . without prejudice to paragraph 3 , those charges shall not be distance - related .


### actions which prevent price formation on the basis of demand and supply or constitute a disincentive to the development of more flexible generation , low carbon generation , or more flexible demand shall be avoided ; ### actions which prevent price formation on the basis of demand and supply or constitute a disincentive to the development of more flexible generation , low carbon generation , or more flexible demand shall be avoided while member states shall ensure that energy poor or vulnerable customers are sufficiently protected ;


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


### the resources curtailed or redispatched shall be selected amongst generation or demand facilities submitting offers for curtailment or redispatching using market - based mechanisms and be financially compensated . non - market - based curtailment or redispatching of generation or redispatching of demand response shall only be used where no market - based alternative is available , where all available market - based resources have been used , or where the number of generation or demand facilities available in the area where suitable generation or demand facilities for the provision of the service are located is too low to ensure effective competition . the provision of market - based resources shall be open to all generation technologies , storage and demand response , including operators located in other member states unless technically not feasible . ### the resources curtailed or redispatched shall be selected amongst generation or demand facilities submitting offers for curtailment or redispatching using market - based mechanisms and be financially compensated . in the event of critical grid situations caused by regional excess demand or supply of electricity a flexible configuration of demand , storage or supply facilities , shall be exempted from grid fees and other charges when helping to avoid costly grid congestion and subsequent curtailment measures . in case of incremental electricity consumption via demand response measures , grid fee exemption is granted irrespective of the end use of the electricity . that includes flexible demand units shifting their load to a later point of time via energy storage units . likewise , electricity from flexible renewable generation units that increase system efficiency by offering market - based flexibility options instead of curtailment measures shall be compensated by exemption from any charges and taxes related to the electricity retail prices . non - market - based curtailment or redispatching of generation or redispatching of demand response shall only be used where no market - based alternative is available , where all available market - based resources have been used , or where the number of generation or demand facilities available in the area where suitable generation or demand facilities for the provision of the service are located is too low to ensure effective competition . the provision of market - based resources shall be open to all generation technologies , storage and demand response and sector coupling technologies , including operators located in other member states unless technically not feasible . in order to fulfil the eu emission target the eligibility of market - based flexibility options should depend on their carbon emission intensity . facilities should only be eligible to participate in a marked - based procurement model if its emissions are below 450 gr co2 / kwh and at least 10% of fuel requirements are based on renewable energy sources . in case the consumed fuel has a res share physically below 10% the remaining fraction can be offset by virtual blending activities via guarantees of origin . also small - scale units of at least 100kw capacity should be eligible to participate .


### charges applied by network operators for access to networks , including charges for connection to the networks , charges for use of networks , and , where applicable , charges for related network reinforcements , shall be transparent , take into account the need for network security and flexibility and reflect actual costs incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non - discriminatory manner . in particular , they shall be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level , either positively or negatively . they shall not discriminate against energy storage and shall not create disincentives for participation in demand response . without prejudice to paragraph 3 , those charges shall not be distance - related . ### charges applied by network operators for access to networks , including charges for connection to the networks , charges for use of networks , and , where applicable , charges for related network reinforcements , shall be transparent , take into account the need for network security and flexibility and reflect actual costs incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non - discriminatory manner . in particular , they shall be applied in a way which does not negatively discriminate between production connected at the distribution level and production connected at the transmission level . they shall not discriminate against energy storage and shall not create disincentives for participation in demand response or renewables self - consumption . without prejudice to paragraph 3 , those charges shall not be distance - related .