### in order to specify the requirements set out in this regulation , and particularly to establish and update granular and calibrated technical screening criteria for different economic activities as to what constitutes a substantial contribution and significant harm to the environmental objectives , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the information required to comply with the disclosure obligation set out in article 4 , and the technical screening criteria mentioned in article 6 , article 7 , article 8 , article 9 , article 10 and article 11 . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law - making of 13 april 2016 . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council should receive all documents at the same time as member states’ experts , and the experts of the european parliament and the council should systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts . ### in order to specify the requirements set out in this regulation , and particularly to establish and update granular and calibrated technical screening criteria and indicators for different economic activities as to what constitutes a substantial contribution and significant harm to the environmental objectives , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the information required to comply with the disclosure obligation set out in article 4 , and the technical screening criteria mentioned in article 6 , article 7 , article 8 , article 9 , article 10 , article 11 and 12 , as well as with the specifications on minimum safeguards set out in article 13 . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law - making of 13 april 2016 . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council should receive all documents at the same time as member states’ experts , and the experts of the european parliament and the council should systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts .


### moreover if market participants do not provide any explanation to investors of how the activities they invest in contribute to environmental objectives , or if they use different concepts in their explanation of what is a ‘ sustainable’ economic activity , investors will find it disproportionately burdensome to check and compare these different financial products . it has been found that this discourages investors from investing into green financial products . furthermore , the lack of investor confidence has major detrimental effects on the market for sustainable investment . it has further been shown that national rules or market - based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market . if financial market participants disclose how the financial products they claim are environment - friendly meet environmental objectives , and they use for such disclosures common criteria across the union of what is an environmentally sustainable economic activity , this will help investors compare environment - friendly investment opportunities across borders . investors will invest in green financial products with higher confidence across the union , improving the functioning of the internal market . ### moreover if market participants do not disclose how the activities they invest in contribute negatively or positively to environmental objectives , or if they use different metrics and criteria for determining the impact in their explanation of the degree of environmental sustainability of an economic activity , investors will find it disproportionately burdensome to check and compare different financial products . it has been found that this discourages investors from investing into sustainable financial products . furthermore , the lack of investor confidence has major detrimental effects on the market for sustainable investment . it has further been shown that national rules or market - based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market . if financial market participants disclose how the financial products they claim are environment - friendly meet environmental objectives , and they use for such disclosures common criteria across the union of what is an environmentally sustainable economic activity , this will help investors compare the environmental impact of investment opportunities across borders . investors will invest in green financial products with higher confidence across the union , improving the functioning of the internal market .


### for the purposes of this regulation , an economic activity shall be considered to contribute substantially to healthy ecosystems where that activity contributes substantially to protecting , conserving and enhancing biodiversity and ecosystem services in line with the relevant legislative and non - legislative union instruments , through any of the following means : ### for the purposes of this regulation , an economic activity shall be considered to contribute substantially to biodiversity and healthy ecosystems or the restoration of degraded ecosystems where that activity contributes substantially to protecting , conserving and enhancing or restoring biodiversity and ecosystem services in line with the relevant legislative and non - legislative union instruments , through any of the following means :


### given the specific technical details needed to assess the environmental impact of an economic activity and the fast - changing nature of both science and technology , the criteria of environmentally sustainable economic activities should be adapted regularly to those changes . for the criteria to be up to date , based on scientific evidence and input from experts as well as relevant stakeholders , the conditions for substantial contribution and significant harm should be specified with more granularity for different economic activities and should be updated regularly . to that purpose , granular and calibrated technical screening criteria for the different economic activities should be laid down by the commission , on the basis of the technical input of a multi - stakeholders platform on sustainable finance . ### given the specific technical details needed to assess the environmental impact of an economic activity and the fast - changing nature of both science and technology , the criteria relevant for determining the degree of environmental sustainability of economic activities should be adapted regularly to those changes . for the criteria and indicators to be up to date , based on scientific evidence and input from experts as well as relevant stakeholders , the conditions for substantial contribution and significant harm should be specified with more granularity for different economic activities and should be updated regularly . to that purpose , granular and calibrated technical screening criteria and a set of harmonised indicators for the different economic activities should be laid down by the commission , on the basis of the technical input of a multi - stakeholders platform on sustainable finance .


### to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that all relevant economic activities within a specific sector can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the criteria . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter . ### to encourage environmentally sustainable innovation and to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that relevant economic activities within major economic sectors , including among others agriculture , construction , energy , transportation and production , can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the criteria . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter .


### offering financial products which pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities . national requirements for marketing as sustainable investments financial products and corporate bonds , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation economic operators will find it easier to raise funding for their green activities across borders , as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union . ### offering financial products and services which pursue environmentally sustainable objectives is an effective way of shifting private investments from activities with negative environmental impact into more sustainable activities . national requirements for marketing as sustainable investments financial products , services and corporate bonds , as defined in this regulation , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence and awareness of risks , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria and indicators as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria and indicators will direct investments in an environmentally ineffective , and in some cases counterproductive , manner and lead to unmet environmental and sustainability targets . that absence thus increases costs and creates a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria and indicators for determining the degree of sustainability of an economic activity should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation of information , of metrics and of criteria , economic operators will find it easier to raise funding for their environmentally sustainable activities across borders , as their economic activities can be compared against uniform criteria and indicators in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union .


### establishing criteria for environmentally sustainable economic activities may encourage firms to disclose on their websites , on a voluntary basis , information on the environmentally sustainable economic activities they carry out . this information will not only help relevant actors in the financial markets to easily identify which firms carry out environmentally sustainable economic activities , but it will also facilitate for these firms to raise funding for their green activities . ### the information on the environmental impact of activities will help relevant actors in the financial markets to easily identify the degree of environmental sustainability of the economic activities carried out by firms , but it will also facilitate for firms to raise funding .


### the use of the definition of environmentally sustainable investment in union law , and at member state level , including the appropriateness of setting up verification mechanism of compliance with the criteria set out in this regulation . ### the use of the definition of environmentally sustainable investment and investments with negative environmental impact in union law , and at member state level , including the appropriateness of setting up verification mechanism of compliance with the criteria based on indicators set out in this regulation .


### the application of this regulation should be reviewed regularly in order to assess the progress on the development of technical screening criteria for environmentally sustainable activities , the use of the definition of environmentally sustainable investment , and whether compliance with the obligations requires the establishment of a verification mechanism . the review should include also an assessment of whether the scope of this regulation should be extended to cover social sustainability objectives . ### the application of this regulation should be reviewed regularly and at least after three years in order to assess the progress on the development of technical screening criteria and harmonised indicators for environmentally sustainable activities , the use of the definition of environmentally sustainable investment or investments having a negative environmental impact , and whether compliance with the obligations requires the establishment of a verification mechanism . the review should include also an assessment of the provisions required for extending the scope of this regulation to cover social sustainability objectives .


### 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 .


### supplement paragraph 1 to establish technical screening criteria for determining under which conditions a specific economic activity is considered , for the purposes of this regulation , to contribute substantially to climate change mitigation ; ### supplement paragraph 1 to establish technical screening criteria based on indicators for determining under which conditions a specific economic activity is considered , for the purposes of this regulation , to contribute substantially to climate change mitigation . those technical screening criteria shall include thresholds for mitigation activities that drive decarbonisation pathways to meet targets beyond the paris agreement ;


### when establishing and updating the technical screening criteria the commission should also take into account the specificities of the infrastructure sector and take into account environmental , social and economic externalities within a cost - benefit analysis . in that regard , the commission should consider the work of international organisations , such as the oecd , relevant union legislation and standards , including directive 2001 / 42 / ec of the european parliament and of the council42 , directive 2011 / 92 / eu of the european parliament and of the council43 directive 2014 / 23 / eu of the european parliament and of the council44 , directive 2014 / 24 / eu of the european parliament and of the council45 , directive 2014 / 25 / eu of the european parliament and of the council46 , and current methodology . in that context , the technical screening criteria should promote appropriate governance frameworks integrating environmental , social and governance factors , as referred to in the united nations - supported principles for responsible investment47 , at all stages of a project ' s lifecycle . __________________ 42 directive 2001 / 42 / ec of the european parliament and of the council of 27 june 2001 on the assessment of the effects of certain plans and programmes on the environment . 43 directive 2011 / 92 / eu of the european parliament and of the council of 13 december 2011 on the assessment of the effects of certain public and private projects on the environment . 44 directive 2014 / 23 / eu of the european parliament and of the council of 26 february 2014 on the award of concession contracts . 45 directive 2014 / 24 / eu of the european parliament and of the council of 26 february 2014 on public procurement and repealing directive 2004 / 18 / ec . 46 directive 2014 / 25 / eu of the european parliament and of the council of 26 february 2014 on procurement by entities operating in the water , energy , transport and postal services sectors and repealing directive 2004 / 17 / ec . 47 https : / / www . unpri . org / download ? ac=1534 . ### when establishing and updating the technical screening criteria and the harmonised indicators the commission should also take into account the specificities of the different sectors and take into account environmental , social and economic externalities within a cost - benefit analysis . in that regard , the commission should consider the work of international organisations , such as the oecd , relevant union legislation and standards , including directive 2001 / 42 / ec of the european parliament and of the council42 , directive 2011 / 92 / eu of the european parliament and of the council43 directive 2014 / 23 / eu of the european parliament and of the council44 , directive 2014 / 24 / eu of the european parliament and of the council45 , directive 2014 / 25 / eu of the european parliament and of the council46 , and current methodology . in that context , the technical screening criteria and indicators should promote appropriate governance frameworks integrating environmental , social and governance factors , as referred to in the united nations - supported principles for responsible investment47 , at all stages of a project ' s lifecycle . __________________ 42 directive 2001 / 42 / ec of the european parliament and of the council of 27 june 2001 on the assessment of the effects of certain plans and programmes on the environment . 43 directive 2011 / 92 / eu of the european parliament and of the council of 13 december 2011 on the assessment of the effects of certain public and private projects on the environment . 44 directive 2014 / 23 / eu of the european parliament and of the council of 26 february 2014 on the award of concession contracts . 45 directive 2014 / 24 / eu of the european parliament and of the council of 26 february 2014 on public procurement and repealing directive 2004 / 18 / ec . 46 directive 2014 / 25 / eu of the european parliament and of the council of 26 february 2014 on procurement by entities operating in the water , energy , transport and postal services sectors and repealing directive 2004 / 17 / ec . 47 https : / / www . unpri . org / download ? ac=1534 .


### take into account the nature and the scale of the economic activity ; ### take into account the nature and the scale of the economic activity and its external effects during its entire lifecycle ;


### experts appointed in a personal capacity , with proven knowledge and experience in the areas covered by this regulation . ### academia and experts appointed in a personal capacity , with proven knowledge and experience in the areas covered by this regulation , excluding those having a conflict of interest .


### advise the commission on the technical screening criteria referred to in article 14 , and the possible need to update those criteria ; ### advise the commission on the technical screening criteria based on indicators referred to in article 14 , and the possible need to update those criteria ;


### for the purposes of determining whether an economic activity is environmentally sustainable , an exhaustive list of environmental objectives should be laid down . ### for the purposes of determining the degree of environmental sustainability of an economic activity , an exhaustive list of environmental objectives based on indicators measuring the environmental impact should be laid down .


### improving the efficient use of raw materials in production , including through reducing the use of primary raw materials and increasing the use of by - products and waste ; ### improving the efficient use of raw materials and resources in production , including through reducing the use of primary raw materials and increasing the use of by - products and waste ;


### circular economy and waste prevention and recycling , where that activity leads to significant inefficiencies in the use of materials in one or more stages of the life - cycle of products , including in terms of durability , reparability , upgradability , reusability or recyclability of products ; or where that activity leads to a significant increase in the generation , incineration or disposal of waste ; ### circular economy and waste prevention and recycling , where that activity leads to significant inefficiencies in the use of materials and resources , such as non - renewable energy , raw materials , water and land , directly or indirectly in different stages of the life - cycle of products including inefficiencies related to features designed to limit the lifetime of products and including in terms of durability , reparability , upgradability , reusability or recyclability of products ; or where that activity leads to a significant increase in the generation , incineration or disposal of waste emissions ;


### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices . the platform should also advise the commission on whether the technical screening criteria are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment . ### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria and the harmonised indicators should also involve relevant stakeholders and build on scientific evidence , best practice and the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria and the harmonised indicators , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria based on harmonised indicators were considered as sustainable assets or assets having a negative environmental impact under existing market practices . the platform should also advise the commission on whether the technical screening criteria and indicators are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment .


### a union classification of environmentally sustainable economic activities should enable the development of future union policies , including union - wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the union . uniform legal requirements for considering investments as environmentally sustainable investments , based on uniform criteria for environmentally sustainable economic activities , are necessary as a reference for future union legislation aiming at enabling those investments . ### union - wide indicators determining the environmental impact of economic activities should enable the development of future union policies , including union - wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the union , as well as to be the basis for other economic , regulatory and prudential measures . uniform legal requirements for considering the degree of environmental sustainability of investments , based on uniform criteria for the degree of environmental sustainability of economic activities and common indicators for assessing the environmental impact of investments , are necessary as a reference for future union legislation aiming at facilitating the shift from investments with a negative environmental impact to investments with a positive impact . .


### sustainable use and protection of water and marine resources , where that activity is detrimental to a significant extent to good status of union waters , including freshwater , transitional waters and coastal waters , or to good environmental status of marine waters of the union ; ### sustainable use and protection of water and marine resources , where that activity is detrimental to a significant extent to good status of union waters , including freshwater , transitional waters and coastal waters , or to good environmental status of marine waters of the union , in line with directive 2000 / 60 / ec of the european parliament and of the council establishing a framework for community action in the field of water policy ;


### member states shall apply the criteria for determining environmentally sustainable economic activities set out in article 3 for the purposes of any measures setting out requirements on market actors in respect of financial products or corporate bonds that are marketed as ' environmentally sustainable ' . ### member states and the union shall apply the criteria for determining the degree of environmental sustainability of economic activities set out in article 3 and 3a for the purposes of any measures setting out sustainability requirements on market actors in respect of financial products or corporate bonds


### the economic activity complies with technical screening criteria , where the commission has specified those in accordance with articles 6 , 7 , 8 , 9 , 10 and 11 . ### the economic activity complies with technical screening criteria , where the commission has specified those based on harmonised indicators and in accordance with articles 6 , 7 , 8 , 9 , 10 and 11 .


### the power to adopt delegated acts referred to in articles 4 , 6 , 7 , 8 , 9 , 10 and 11 shall be conferred on the commission for an indeterminate period from [ date of entry into force of this regulation ] . ### the power to adopt delegated acts referred to in articles 4 , 6 , 7 , 8 , 9 , 10 , 11 , 12 and 13 shall be conferred on the commission for an indeterminate period from [ date of entry into force of this regulation ] .


### take into account the environmental impacts of the economic activity itself , as well as of the products and services provided by that economic activity , notably by considering their production , use and end - of - life ; ### take into account the environmental impacts of the economic activity itself , as well as of the products and services provided by that economic activity , notably by considering the entire life cycle , including production , use , end - of - life and recycling ;


### to address existing obstacles to the functioning of the internal market and to prevent the emergence of such obstacles in the future , member states should be required to use a common concept of environmentally sustainable investment when setting up requirements for market actors for the purpose of labelling financial products or corporate bonds marketed as environmentally sustainable at national level . for the same reasons , fund managers and institutional investors that hold themselves out as pursuing environmental objectives should use the same concept of environmentally sustainable investment when disclosing how they pursue those objectives . ### to address existing obstacles to the functioning of the internal market and to prevent the emergence of such obstacles in the future , member states and the union should be required to use a common concept regarding the degree of environmental sustainability of investments when setting up requirements for market actors for the purpose of labelling financial products , services or corporate bonds marketed as environmentally sustainable at national level . for the same reasons , fund managers and institutional investors that hold themselves out as pursuing environmental objectives should use the same concept of environmentally sustainable investment and the same indicators , metrics and criteria for calculating the environmental impact when disclosing how they pursue those objectives .


### the application of this regulation should be reviewed regularly in order to assess the progress on the development of technical screening criteria for environmentally sustainable activities , the use of the definition of environmentally sustainable investment , and whether compliance with the obligations requires the establishment of a verification mechanism . the review should include also an assessment of whether the scope of this regulation should be extended to cover social sustainability objectives . ### the application of this regulation should be reviewed regularly and at least after three years in order to assess the progress on the development of technical screening criteria and harmonised indicators for environmentally sustainable activities , the use of the definition of environmentally sustainable investment or investments having a negative environmental impact , and whether compliance with the obligations requires the establishment of a verification mechanism . the review should include also an assessment of the provisions required for extending the scope of this regulation to cover social sustainability objectives .


### some economic activities have a negative impact on the environment , and a substantial contribution to one or more environmental objectives can be achieved by reducing that negative impact . for those economic activities , it is appropriate to set out technical screening criteria that require a substantial improvement in environmental performance compared to , inter alia , the industry average . those criteria should consider also the long term impact of a specific economic activity . ### some economic activities have a negative impact on the environment , and a substantial contribution to one or more environmental objectives can be achieved by reducing that negative impact . for those economic activities , it is appropriate to set out technical screening criteria that require a substantial improvement in environmental performance compared to , inter alia , the industry average in order to consider whether that the activity may deliver a substantial contribution to one or more environmental objectives . those criteria should consider also the long term impact of a specific economic activity and should ensure that economic activities contributing to carbon intensive lock - in effects are not considered sustainable economic activities .


### 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 and of indicators for identifying the degree of sustainability of activities are 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 , holistic understanding of the impact of economic activities and investments on environmental sustainability and resource efficiency . as a first step , clear guidance on activities qualifying as contributing to environmental objectives , should help inform investors about the investments that fund economic activities according to their degree of sustainability . further guidance on the activities contributing to other sustainability objectives , including social objectives , may be developed at a later stage . __________________ 25 com 97 final .


### offering financial products which pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities . national requirements for marketing as sustainable investments financial products and corporate bonds , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation economic operators will find it easier to raise funding for their green activities across borders , as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union . ### offering financial products and services which pursue environmentally sustainable objectives is an effective way of shifting private investments from activities with negative environmental impact into more sustainable activities . national requirements for marketing as sustainable investments financial products , services and corporate bonds , as defined in this regulation , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence and awareness of risks , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria and indicators as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria and indicators will direct investments in an environmentally ineffective , and in some cases counterproductive , manner and lead to unmet environmental and sustainability targets . that absence thus increases costs and creates a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria and indicators for determining the degree of sustainability of an economic activity should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation of information , of metrics and of criteria , economic operators will find it easier to raise funding for their environmentally sustainable activities across borders , as their economic activities can be compared against uniform criteria and indicators in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union .


### an economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings . the technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives . when establishing and updating the technical screening criteria , the commission should ensure that those criteria are based on available scientific evidence and are updated regularly . where scientific evaluation does not allow for the risk to be determined with sufficient certainty , the precautionary principle should apply , in line with article 191 tfeu . ### an economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings and it should also not significantly harm any of the other environmental objectives . the technical screening criteria based on harmonised indicators should identify the minimum requirements necessary to avoid a significant harm to other objectives and the assessment of the negative impact . when establishing and updating the technical screening criteria and harmonised indicators , the commission should ensure that those criteria and indicators are based on available scientific evidence and are updated regularly . where scientific evaluation does not allow for the risk to be determined with sufficient certainty , the precautionary principle should apply , in line with article 191 tfeu .


### given the specific technical details needed to assess the environmental impact of an economic activity and the fast - changing nature of both science and technology , the criteria of environmentally sustainable economic activities should be adapted regularly to those changes . for the criteria to be up to date , based on scientific evidence and input from experts as well as relevant stakeholders , the conditions for substantial contribution and significant harm should be specified with more granularity for different economic activities and should be updated regularly . to that purpose , granular and calibrated technical screening criteria for the different economic activities should be laid down by the commission , on the basis of the technical input of a multi - stakeholders platform on sustainable finance . ### given the specific technical details needed to assess the environmental impact of an economic activity and the fast - changing nature of both science and technology , the criteria relevant for determining the degree of environmental sustainability of economic activities should be adapted regularly to those changes . for the criteria and indicators to be up to date , based on scientific evidence and input from experts as well as relevant stakeholders , the conditions for substantial contribution and significant harm should be specified with more granularity for different economic activities and should be updated regularly . to that purpose , granular and calibrated technical screening criteria and a set of harmonised indicators for the different economic activities should be laid down by the commission , on the basis of the technical input of a multi - stakeholders platform on sustainable finance .


### establishing criteria for environmentally sustainable economic activities may encourage firms to disclose on their websites , on a voluntary basis , information on the environmentally sustainable economic activities they carry out . this information will not only help relevant actors in the financial markets to easily identify which firms carry out environmentally sustainable economic activities , but it will also facilitate for these firms to raise funding for their green activities . ### the information on the environmental impact of activities will help relevant actors in the financial markets to easily identify the degree of environmental sustainability of the economic activities carried out by firms , but it will also facilitate for firms to raise funding .


### use of the criteria for environmentally sustainable economic activities ### application of and compliance with the criteria for determining the degree of environmental sustainability


### the commission shall establish the technical screening criteria referred to in paragraph 2 in one delegated act , taking into account the requirements laid down in article 14 . ### the commission shall establish the technical screening criteria based on indicators referred to in paragraph 2 in one delegated act , taking into account the requirements laid down in article 14 .


### analyse the impact of the technical screening criteria in terms of potential costs and benefits of their application ; ### analyse the impact of the technical screening criteria based on indicators in terms of potential costs and benefits of their application ;


### the technical screening criteria referred to in paragraph 1 shall also include criteria for activities related to the clean energy transition , in particular energy efficiency and renewable energy , to the extent that those are substantially contributing to any of the environmental objectives . ### the technical screening criteria referred to in paragraph 1 shall also include criteria based on indicators for activities related to the clean energy transition , in particular energy efficiency and renewable energy , to the extent that those are substantially contributing to any of the environmental objectives .


### to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that all relevant economic activities within a specific sector can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the criteria . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter . ### to encourage environmentally sustainable innovation and to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that relevant economic activities within major economic sectors , including among others agriculture , construction , energy , transportation and production , can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the criteria . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter .


### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices . the platform should also advise the commission on whether the technical screening criteria are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment . ### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria and the harmonised indicators should also involve relevant stakeholders and build on scientific evidence , best practice and the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria and the harmonised indicators , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria based on harmonised indicators were considered as sustainable assets or assets having a negative environmental impact under existing market practices . the platform should also advise the commission on whether the technical screening criteria and indicators are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment .


### healthy ecosystems , where that activity is detrimental to a significant extent to the good condition of ecosystems . ### healthy ecosystems , where that activity is detrimental to a significant extent to the good condition and resilience of ecosystems , including biodiversity and direct and indirect land use .


### member states shall apply the criteria for determining environmentally sustainable economic activities set out in article 3 for the purposes of any measures setting out requirements on market actors in respect of financial products or corporate bonds that are marketed as ' environmentally sustainable ' . ### member states and the union shall apply the criteria for determining the degree of environmental sustainability of economic activities set out in article 3 and 3a for the purposes of any measures setting out sustainability requirements on market actors in respect of financial products or corporate bonds


### circular economy and waste prevention and recycling , where that activity leads to significant inefficiencies in the use of materials in one or more stages of the life - cycle of products , including in terms of durability , reparability , upgradability , reusability or recyclability of products ; or where that activity leads to a significant increase in the generation , incineration or disposal of waste ; ### circular economy and waste prevention and recycling , where that activity leads to significant inefficiencies in the use of materials and resources , such as non - renewable energy , raw materials , water and land , directly or indirectly in different stages of the life - cycle of products including inefficiencies related to features designed to limit the lifetime of products and including in terms of durability , reparability , upgradability , reusability or recyclability of products ; or where that activity leads to a significant increase in the generation , incineration or disposal of waste emissions ;


### monitor and report regularly to the commission on capital flows towards sustainable investment ; ### monitor and report regularly to the commission and publicise the information on the shift of capital flows from activities having a negative impact on environmental sustainability towards sustainable investment ;


### to avoid market fragmentation as well as harm to consumer interests due to divergent notions of environmentally sustainable economic activities , national requirements that market actors should comply with when they wish to market financial products or corporate bonds as being environmentally sustainable , should build on the uniform criteria for environmentally sustainable economic activities . those market actors include financial market participants offering “green” financial products and non - financial companies issuing “green” corporate bonds . ### to avoid market fragmentation as well as harm to consumer interests due to divergent notions regarding the degree of environmental sustainability of economic activities , national requirements that market actors should comply with when they wish to market financial products or corporate bonds as defined in this regulation as being environmentally sustainable , should build on the uniform criteria for environmentally sustainable economic activities . those market actors include financial market participants offering sustainable financial products or services and non - financial companies issuing sustainable corporate bonds .


### for the purposes of determining whether an economic activity is environmentally sustainable , an exhaustive list of environmental objectives should be laid down . ### for the purposes of determining the degree of environmental sustainability of an economic activity , an exhaustive list of environmental objectives based on indicators measuring the environmental impact should be laid down .


### supplement paragraph 1 to establish technical screening criteria for determining under which conditions a specific economic activity is considered , for the purposes of this regulation , to contribute substantially to the protection of healthy ecosystems ; ### supplement paragraph 1 to establish technical screening criteria based on indicators for determining under which conditions a specific economic activity is considered , for the purposes of this regulation , to contribute substantially to the protection of biodiversity and healthy ecosystems or restoration of degraded ecosystems ;


### offering financial products which pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities . national requirements for marketing as sustainable investments financial products and corporate bonds , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation economic operators will find it easier to raise funding for their green activities across borders , as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union . ### offering financial products and services which pursue environmentally sustainable objectives is an effective way of shifting private investments from activities with negative environmental impact into more sustainable activities . national requirements for marketing as sustainable investments financial products , services and corporate bonds , as defined in this regulation , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence and awareness of risks , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria and indicators as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria and indicators will direct investments in an environmentally ineffective , and in some cases counterproductive , manner and lead to unmet environmental and sustainability targets . that absence thus increases costs and creates a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria and indicators for determining the degree of sustainability of an economic activity should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation of information , of metrics and of criteria , economic operators will find it easier to raise funding for their environmentally sustainable activities across borders , as their economic activities can be compared against uniform criteria and indicators in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union .


### 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 criteria for determining the degree of environmental impact and sustainability of an economic activity and thereby whether an economic activity is environmentally sustainable for the purposes of establishing the degree of environmental sustainability of an investment made within or outside the union .


### given the specific technical details needed to assess the environmental impact of an economic activity and the fast - changing nature of both science and technology , the criteria of environmentally sustainable economic activities should be adapted regularly to those changes . for the criteria to be up to date , based on scientific evidence and input from experts as well as relevant stakeholders , the conditions for substantial contribution and significant harm should be specified with more granularity for different economic activities and should be updated regularly . to that purpose , granular and calibrated technical screening criteria for the different economic activities should be laid down by the commission , on the basis of the technical input of a multi - stakeholders platform on sustainable finance . ### given the specific technical details needed to assess the environmental impact of an economic activity and the fast - changing nature of both science and technology , the criteria relevant for determining the degree of environmental sustainability of economic activities should be adapted regularly to those changes . for the criteria and indicators to be up to date , based on scientific evidence and input from experts as well as relevant stakeholders , the conditions for substantial contribution and significant harm should be specified with more granularity for different economic activities and should be updated regularly . to that purpose , granular and calibrated technical screening criteria and a set of harmonised indicators for the different economic activities should be laid down by the commission , on the basis of the technical input of a multi - stakeholders platform on sustainable finance .


### financial market participants offering financial products as environmentally sustainable investments , or as investments having similar characteristics , shall disclose information on how and to what extent the criteria for environmentally sustainable economic activities set out in article 3 are used to determine the environmental sustainability of the investment . where financial market participants consider that an economic activity which does not comply with the technical screening criteria set out in accordance with this regulation or for which those technical screening criteria have not been established yet , should be considered environmentally sustainable , they may inform the commission . ### financial market participants offering financial products shall disclose information on whether the products they offer qualify as environmentally sustainable investments pursuant to the criteria of article 3 or as investments having a negative environmental impact pursuant to the criteria set out in article 3a . where financial market participants consider that an economic activity for which technical screening criteria have not been established yet , should be considered environmentally sustainable , they shall inform the commission . financial market participants shall not offer financial products as environmentally sustainable investments , or as investments having similar characteristics , if those products do not qualify as environmentally sustainable .


### activities under the national programmes of the participating states . ### activities under the national programmes of the participating states , including research programmes for a strategic management of water resources and a long - term mitigation and adaptation plans , in order to incorporate a more coherent and climate resilient water approach .


### location of port reception facilities applicable to each berth ; ### location of port reception facilities applicable to each berth , including opening hours ;


### the fees shall be reduced if the ship’s design , equipment and operation are such that it can be demonstrated that the ship produces reduced quantities of waste , and manages its waste in a sustainable and environmentally sound manner . the commission shall be empowered by means of delegated acts in accordance with article 19 , to define the criteria for determining that a ship meets the requirements stated in this paragraph in relation to the ship’s on - board waste management . ### the fees shall be reduced if the ship’s design , equipment , procurement policies and operation are such that it can be demonstrated that the ship produces reduced quantities of the category of waste to which the fee applies , and manages its waste in a sustainable and environmentally sound manner in accordance with annex 4a for ships other than fishing vessels and in accordance with annex 4b for fishing vessels . the commission is empowered to adopt delegated acts in accordance with article 19 to amend annexes 4a and 4b , in order to modify the harmonised minimum requirements .


### although the majority of marine litter originates from land - based activities , the shipping industry , including the fishing and recreational sectors , is also an important contributor , with discharges of garbage , including plastic and derelict fishing gear , going directly into the sea . ### although the majority of marine litter originates from land - based activities , the shipping industry , including the fishing and recreational sectors , is also an important contributor , with discharges of garbage , including plastic and derelict fishing gear , going directly into the sea . the commission estimates that plastics account for more than 80 % of marine litter , and that fishing gear containing plastics accounts for 27 % of marine litter items found on european beaches , which is equivalent to 11 000 tonnes a year .


### the master of a ship calling at a union port shall , before leaving the port , deliver all the waste carried on board of the ship to a port reception facility in accordance with the relevant discharge norms laid down in the marpol convention . ### the master of a ship calling at a union port shall , before leaving the port , deliver all the waste carried on board of the ship to a port reception facility , and after leaving the port , shall not discharge waste at sea , in accordance with the relevant delivery and discharge norms and regulations laid down in the marpol convention . that requirement shall also apply to sediments from cleaning and repair of ballast tanks , in accordance with the bwm convention .


### categories of costs for the operation and administration of prf ### categories of costs and net revenues related to the operation and administration of prf


### the fees shall be reduced if the ship’s design , equipment and operation are such that it can be demonstrated that the ship produces reduced quantities of waste , and manages its waste in a sustainable and environmentally sound manner . the commission shall be empowered by means of delegated acts in accordance with article 19 , to define the criteria for determining that a ship meets the requirements stated in this paragraph in relation to the ship’s on - board waste management . ### the fees shall be reduced if the ship’s design , equipment , procurement policies and operation are such that it can be demonstrated that the ship produces reduced quantities of waste , and manages its waste in a sustainable and environmentally sound manner . the commission shall adopt delegated acts in accordance with article 19 in order to supplement this directive by defining the criteria for determining that a ship meets the requirements stated in this paragraph in relation to the ship’s on - board waste management . in doing so , the commission shall adopt as minimum requirements the recommendations listed in the guidelines for implementation of marpol annex v .


### in order to take account of developments at international level , and to promote environmentally sound waste management practices on board , the power to adopt acts in accordance with article 290 tfeu should be delegated to the commission in respect of amending this directive to update the references to international instruments and the annexes and to change references to international instruments , in order to prevent , if necessary , changes to those international instruments from applying for the purposes of this directive , and to develop common criteria for recognising ' green ships ' for the purpose of granting a reduced waste fee to those ships . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and the council . ### in order to take account of developments at international level , and to promote environmentally sound waste management practices on board , the power to adopt acts in accordance with article 290 tfeu should be delegated to the commission in respect of amending this directive to update the references to international instruments and the annexes and to change references to international instruments , in order to prevent , if necessary , changes to those international instruments from applying for the purposes of this directive , and to modify common criteria for recognising ' green ships ' , while taking into account existing good practices and bottom - up schemes , for the purpose of granting a reduced waste fee to those ships . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and the council .


### cargo residues remain the property of the cargo owner after unloading the cargo to the terminal , and often have an economic value . for this reason , the cargo residues should not be included in the cost recovery systems and the application of the indirect fee ; the fee for the delivery of cargo residues should be paid by the user of the reception facility , as specified in the contractual arrangements between the parties involved or in other local arrangements . ### cargo residues remain the property of the cargo owner after unloading the cargo to the terminal , and often have an economic value . for this reason , the cargo residues should not be included in the cost recovery systems and the application of the indirect fee ; the fee for the delivery of cargo residues should be paid by the user of the reception facility , as specified in the contractual arrangements between the parties involved or in other local arrangements . this should however not apply to cargo residues that are not easily recovered , like high - viscosity , persistent floating substances such as paraffin . such substances can have low economic value and therefore run the risk of being washed out on the seas , if not appropriately washed out at port reception facilities .


### the commission shall provide for the organisation of exchanges of experience between the member states’ national authorities and experts , including those from the private sector , on the application of this directive in union ports . ### the commission shall provide for the organisation of exchanges of experience between the member states’ national authorities and experts , including those from the private sector and civil society , on the application of this directive in union ports .


### the producer of goods , or goods of a given type , that are being or are to be made available on the domestic market in a member state may draw up a declaration in order to demonstrate to the competent authorities of the member state of destination that the goods , or goods of that type , are lawfully marketed in another member state . ### the producer of goods , or goods of a given type , that are being or are to be made available on the domestic market in a member state may draw up a non - binding declaration in order to notify the competent authorities of the member state of destination that the goods , or goods of that type , are lawfully marketed in another member state .


### while a competent authority is assessing goods before deciding whether or not it should deny or restrict market access , it should not be able to take decisions suspending market access , except where rapid intervention is required to prevent harm to safety and health of users or to prevent the goods being made available where the making available of such goods is generally prohibited on grounds of public morality or public security , including for example the prevention of crime . ### while a competent authority is assessing goods before deciding whether or not it should deny or restrict market access , it should be able to take decisions suspending market access , in application of the precautionary principle . the power temporarily to suspend the placing of goods on the market should be used to prevent harm to the safety and health of users , to prevent the goods being made available where the making available of such goods is generally prohibited on grounds of public morality or public security , including for example the prevention of crime , or for any other overriding reason of public interest .


### while preparing the proposals pursuant to the tasks referred to in article 27 , the entso for electricity shall conduct an extensive consultation process , at an early stage and in an open and transparent manner , involving all relevant stakeholders , and , in particular , the organisations representing all stakeholders , in accordance with the rules of procedure referred to in article 26 . that consultation shall also involve national regulatory authorities and other national authorities , supply and generation undertakings , system users including customers , distribution system operators , including relevant industry associations , technical bodies and stakeholder platforms . it shall aim at identifying the views and proposals of all relevant parties during the decision - making process . ### while preparing the - proposals pursuant to the tasks referred to in article 27 the entso for electricity shall conduct an extensive consultation process , at an early stage and in an open and transparent manner , involving all relevant stakeholders and , in particular , the organisations representing all stakeholders , in accordance with the rules of procedure referred to in article 26 . that consultation shall also involve national regulatory authorities and other national authorities , supply and generation undertakings , system users including customers and their representatives , distribution system operators , including relevant industry associations , technical bodies and stakeholder platforms . it shall aim at identifying the views and proposals of all relevant parties during the decision - making process . an independent advisory council of stakeholder representatives , in particular system users and final customers , shall be established to provide independent advice to the board of the entso for electricity on : the elaboration of network codes as set out in article 27 the union wide development plans as set out in article 27 the annual work - programme as set out in article 27 and the annual report as set out in article 27 .


### the maximum capacity of the interconnections and / or the transmission networks affecting cross - border flows shall be made available to market participants , complying with safety standards of secure network operation . counter - trading and redispatch , including cross - border redispatch , shall be used to maximise available capacities unless it is demonstrated that it is not beneficial to economic efficiency at union level . ### the maximum capacity of the interconnections and / or the transmission networks affecting cross - border flows shall be made available to market participants , complying with safety standards of secure network operation . counter - trading and redispatch , including cross - border redispatch , shall be used to guarantee the firmness of the exchange scheduled in case of reductions of the available net transfer capacity due to system security reasons .


### generating installations using high - efficiency cogeneration shall only be subject to downward redispatching or curtailment if , other than curtailment or downward redispatching of generating installations using renewable energy sources , no other alternative exists or if other solutions would result in disproportionate costs or risks to network security ; ### electricity generated in a high - efficiency cogeneration process shall only be subject to downward redispatching or curtailment if , other than curtailment or downward redispatching of generating installations using renewable energy sources , no other alternative exists or if other solutions would result in disproportionate costs or risks to network security ;


### regional operational centres shall be equipped with all the human , technical , physical and financial resources necessary for fulfilling their obligations under this regulation and carrying out their functions . ### regional security coordinators shall be equipped with all the human , technical , physical and financial resources necessary for fulfilling their obligations under this regulation and carrying out their functions independently and impartially .


### generating installations using high - efficiency cogeneration shall only be subject to downward redispatching or curtailment if , other than curtailment or downward redispatching of generating installations using renewable energy sources , no other alternative exists or if other solutions would result in disproportionate costs or risks to network security ; ### generating installations using high - efficiency cogeneration shall only be subject to downward redispatching or curtailment if no other alternative exists except curtailment or downward redispatching of generating installations using renewable energy sources , or if other solutions would result in highly disproportionate costs or severe risks to network security ;


### long - term hedging opportunities , which allow market participants to hedge against price volatility risks on a market basis , and eliminate uncertainty on future returns on investment shall be tradable on exchanges in a transparent manner subject to compliance with eu treaty rules on competition . ### long - term hedging opportunities , which allow market participants to hedge against price volatility risks on a market basis , and mitigate uncertainty on future returns on investment shall be tradable on exchanges in a transparent manner subject to compliance with eu treaty rules on competition .


### the commission decision shall specify the date of implementation of a change . that implementation date shall balance the need for expediency with practical considerations , including forward trade of electricity . the commission may define appropriate transitional arrangements as part of its decision . ### the decision adopted under this article shall specify the date of implementation of a change . that implementation date shall balance the need for expediency with practical considerations , including forward trade of electricity . appropriate transitional arrangements may be defined as part of the decision .


### 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 . ### market operators may apply technical limits on maximum and minimum 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 in accordance with articles 41 and 54 of regulation 2015 / 1222 .


### generating installations using high - efficiency cogeneration shall only be subject to downward redispatching or curtailment if , other than curtailment or downward redispatching of generating installations using renewable energy sources , no other alternative exists or if other solutions would result in disproportionate costs or risks to network security ; ### electricity generated in a high - efficiency cogeneration process shall only be subject to downward redispatching or curtailment if , no other alternative exists except curtailment or downward redispatching of generating installations using renewable energy sources , or if other solutions would result in highly disproportionate costs or severe risks to network security


### the commission shall consult relevant stakeholders on its decisions under this article before they are adopted . ### member states and the commission shall consult relevant stakeholders before adopting a decision under this article .


### the commission shall deliver an opinion on the draft statutes , the list of members and the draft rules of procedure taking into account the opinion of the agency provided for in paragraph 2 , within three months of receipt of the opinion of the agency . ### the eu dso entity shall submit to the commission and to the agency the draft statutes , a list of registered members , the draft rules of procedure , including the rules of procedures on the consultation with entso for electricity and other stakeholders and the financing rules , of the eu dso entity to be established .


### draft amendments to any network code adopted under article 55 may be proposed to the agency by persons who are likely to have an interest in that network code , including the entso for electricity , the eu dso entity , transmission system operators , system users and consumers . the agency may also propose amendments on its own initiative . ### draft amendments to any network code adopted under article 55 may be proposed to the agency by persons who are likely to have an interest in that network code , including the entso for electricity , the eu dso entity , transmission and distribution system operators , system users and consumers . the agency may also propose amendments on its own initiative .


### member states applying capacity mechanisms on [ op : entry into force of this regulation ] shall adapt their mechanisms to comply with articles 18 , 21 and 23 of this regulation . ### member states which apply capacity mechanisms shall adapt their mechanisms to comply with articles 18 , 18a , 21 and 23 of this regulation .


### 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 , market operators may apply technical 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 those technical limits are , or are anticipated to be , reached , they shall be adjusted .


### member states shall publish a timeline for adopting measures to eliminate any identified regulatory distortions . when addressing resource adequacy concerns member states shall in particular consider removing regulatory distortions , enabling scarcity pricing , developing interconnection , energy storage , demand side measures and energy efficiency . ### member states shall publish a timeline and an implementation plan for adopting measures to eliminate any identified regulatory distortions and market failures . when addressing resource adequacy concerns member states shall in particular ensure they contribute to eu 2030 climate and energy targets and 2050 decarbonisation objectives and shall remove regulatory distortions , enabling scarcity pricing , developing interconnection , energy storage , demand side flexibility and distributed energy resources and energy efficiency . member states shall notify the timelines to the european commission for approval . the commission shall assess whether these measures are sufficient to eliminate the market distortion and issue a decision as to the compatibility of the notified actions in member states’ timelines with the overall objectives of the energy union . member states shall regularly report on progress towards implementing the actions set out in their timelines . actions may include : remove regulatory distortions and market failures , notably hurdles to increased energy efficiency , flexibility and the deployment of renewable energy ; eliminate the potential oversupply of capacity in the market by first taking the most polluting and least flexible resources off the grid . remove price caps ; introduce an administrative shortage pricing function as referred to in article 44 of [ the commission regulation establishing a guideline on electricity balancing ] ; increase interconnection capacity where necessary according to the adequacy assessment and interconnection target and reinforce and optimise internal grid to address congestion ; increase energy efficiency , develop demand - side response and storage capacity ;


### 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 . procurement of balancing capacity shall be performed for not longer than one day before the provision of the balancing capacity and the contracting period shall have a maximum duration of one day .


### in order to ensure an optimal bidding zone definition in closely interconnected areas , a bidding zone review shall be carried out . that review shall include analysis of the configuration of bidding zones in a coordinated manner with the involvement of affected stakeholders from all affected member states , following the process in accordance with articles 32 to 34 of regulation 2015 / 1222 . the agency shall approve and may request amendments to the methodology and assumptions that will be used in the bidding zone review process as well as the alternative bidding zone configurations considered . ### in order to ensure an optimal bidding zone definition with liquid day - ahead and intraday markets in closely interconnected areas , a bidding zone review shall be carried outwith the objective to broaden the geographical scope of existing bidding zones and to propose arrangements for a fair cost - allocation of cross - border redispatch and counter - trading . that review shall include analysis of the configuration of bidding zones in a coordinated manner with the involvement of regional operational centers , macro - regional partnerships , affected stakeholders from all affected member states , following the process in accordance with articles 32 to 34 of regulation 2015 / 1222 . the agency shall approve and may request amendments to the methodology and assumptions that will be used in the bidding zone review process as well as the alternative bidding zone configurations considered .


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


### ' 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 ;


### the commission shall , after consulting the agency , the entso for electricity and the other relevant stakeholders , establish a priority list every three years , identifying the areas set out in paragraph 1 to be included in the development of network codes . if the subject - matter of the network code is directly related to the operation of the distribution system and less relevant for the transmission system , the commission may require the eu dso entity for electricity instead of the entso for electricity to convene a drafting committee and submit a proposal for a network code to the agency . ### the commission shall , after consulting the agency , the entso for electricity , the distribution system operators and the other relevant stakeholders , establish an annual priority list every three years , identifying the areas set out in paragraph 1 to be included in the development of network codes . if the subject - matter of the network code is directly related to the operation of the distribution system and less relevant for the transmission system , the commission may require the eu dso entity for electricity instead of the entso for electricity to convene a drafting committee and submit a proposal for a network code to the agency .


### 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 ;


### 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 .