### non - communicable diseases are responsible for over 80 % of premature mortality in the union and an effective prevention entails multiple cross border dimensions . in parallel , the european parliament and the council underlined the need to minimise the public health consequences of serious cross - border threats to health such as communicable diseases and other biological , chemical , environmental and unknown threats , by supporting preparedness and response capacity building . ### non - communicable diseases are responsible for over 80 % of premature mortality in the union and an effective prevention entails multiple cross - sectoral actions and cross border dimensions . in parallel , the european parliament and the council underlined the need to minimise the public health consequences of serious cross - border threats to health such as sudden and cumulative environmental emissions and pollution , communicable diseases and other biological , chemical , environmental and unknown threats , by supporting preparedness and response capacity building .


### enhancing the equal and timely access to quality , sustainable and affordable services ; modernising social protection systems , including promoting access to social protection ; improving accessibility , effectiveness and resilience of healthcare systems and long - term care services ; ### enhancing the equal and timely access to quality , sustainable , accessible and affordable services ; investing in social protection systems , including improved access to social protection and reducing and preventing energy poverty and promoting access to affordable energy efficient housing , including social housing , with special attention to off - grid households ; improving and investing into accessibility , effectiveness and resilience of healthcare systems and long - term care services ;


### cross - border partnerships and support services in cross - border regions ; ### cross - border partnerships and support services providing information , advice and placement for workers , including apprentices , interns and trainees and commuters , as well as jobseekers and employers in cross - border regions ;


### at union level , the european semester of economic policy coordination is the framework to identify national reform priorities and monitor their implementation . member states develop their own national multiannual investment strategies in support of those reform priorities . those strategies should be presented alongside the yearly national reform programmes as a way to outline and coordinate priority investment projects to be supported by national and / or union funding . they should also serve to use union funding in a coherent manner and to maximise the added value of the financial support to be received notably from the programmes supported by the union under the european regional development fund , the cohesion fund , the european social fund plus , the european maritime and fisheries fund and the european agricultural fund for rural development , the european investment stabilisation function and investeu , where relevant . ### at union level , the european semester of economic policy coordination is the framework to identify national reform priorities and monitor their implementation . member states develop their own national multiannual investment strategies in support of those reform priorities . those strategies should be developed in partnership between national , regional and local authorities , include a gender perspective and be presented alongside the yearly national reform programmes as a way to outline and coordinate priority investment projects to be supported by national and / or union funding . they should also serve to use union funding in a coherent manner and to maximise the added value of the financial support to be received notably from the programmes supported by the union under the european regional development fund , the cohesion fund , the european social fund plus , the european maritime and fisheries fund and the european agricultural fund for rural development , the european investment stabilisation function and investeu , where relevant .


### the esf + should support member states’ efforts to tackle poverty with a view to breaking the cycle of disadvantage across generations and promote social inclusion by ensuring equal opportunities for all , tackling discrimination and addressing health inequalities . this implies mobilising a range of policies targeting the most disadvantaged people regardless of their age , including children , marginalised communities such as the roma , and the working poor . the esf + should promote the active inclusion of people far from the labour market with a view to ensuring their socio - economic integration . the esf + should be also used to enhance timely and equal access to affordable , sustainable and high quality services such as healthcare and long - term care , in particular family and community - based care services . the esf + should contribute to the modernisation of social protection systems with a view in particular to promoting their accessibility . ### the esf + should support member states’ efforts at all levels of government including at regional and local level to tackle poverty with a view to breaking the cycle of disadvantage across generations and promote social inclusion by ensuring equal opportunities for all , tackling discrimination and addressing health inequalities and housing deprivation , including homelessness , while putting special emphasis on combatting the feminisation of poverty . this implies mobilising a range of policies targeting the most disadvantaged people regardless of their age , including children , marginalised communities such as the roma , people with disability , illness and / or chronic conditions , the working poor , the homeless , third - country nationals , including refugees , asylum seekers , undocumented migrants and stateless persons , and all other people facing multiple social challenges and multiple forms of discrimination . the esf + should promote the active inclusion of people far from the labour market with a view to ensuring their socio - economic inclusion and full participation in society . the esf + should be also used to enhance social rights through timely and equal access to affordable , sustainable and high quality services such as counselling , healthcare , childcare and early childhood education and long - term care , in particular family and community - based care services , and access to decent energy - efficient affordable housing , including social housing . the esf + should contribute to the modernisation of social protection systems and social services with a view in particular to promoting their accessibility and coverage .


### the union is confronted with structural challenges arising from economic globalisation , the management of migration flows and the increased security threat , clean energy transition , technological change and an increasingly ageing workforce and growing skills and labour shortages in some sectors and regions , experienced especially by smes . taking into account the changing realities of the world of work , the union should be prepared for the current and future challenges by investing in relevant skills , making growth more inclusive and by improving employment and social policies , including in view of labour mobility . ### the union is confronted with structural challenges arising from social inequalities , economic globalisation , the management of migration flows and related inclusion challenges , clean energy transition , technological change , demographic challenges , unequal access to education and social protection , unbalanced distribution of care responsibilities , an increasingly ageing workforce , lack of employment opportunities and growing skills and labour shortages in some sectors and regions , experienced especially by smes . at the same time , the union should respond to the social challenges posed by persistently high rates of poverty and social exclusion , and unemployment which is over twice the overall rate among young people , as well as problems concerning the integration of third - country nationals . taking into account the changing realities of the world of work , the union should be prepared for the current and future challenges by engaging in the just transition , investing in quality and inclusive education and training , lifelong learning and skills , making labour markets more inclusive and by improving education and training policies and employment and social policies , including in respect of labour mobility and by fighting against gender gaps and women’s discrimination .


### of stakeholders in view of transnational cooperation ; ### of stakeholders in view of transnational and cross - border cooperation ;


### member states shall allocate an appropriate amount of their esf + resources under shared management to address challenges identified in relevant country - specific recommendations adopted in accordance with article 121 tfeu and article 148 tfeu and in the european semester falling within the scope of the esf + as set out in article 4 . ### member states shall allocate an appropriate amount of their esf + resources under shared management to address challenges identified in relevant country reports and country - specific social recommendations adopted in accordance with article 121 tfeu and article 148 tfeu and in the european semester falling within the scope of the esf + as set out in article 4 and in line with the requirements as set out in article 11 .


### a greener , low carbon europe through the improvement of education and training systems necessary for the adaptation of skills and qualifications , the upskilling of all , including the labour force , the creation of new jobs in sectors related to the environment , climate and energy , and the bioeconomy . ### a greener , low carbon europe through the improvement of education and training systems necessary for the adaptation of skills and qualifications , awareness - raising among the population about sustainable development and lifestyles , the creation of new high - quality jobs in sectors related to the environment , climate and energy , and the circular and bioeconomy .


### the esf + should aim to promote employment through active interventions enabling integration into the labour market , notably for youth , the long - term unemployed and the inactive , as well as through promoting self–employment and the social economy . the esf + should aim to improve the functioning of labour markets by supporting the modernisation of labour market institutions such as the public employment services in order to improve their capacity to provide intensified targeted counselling and guidance during the job search and the transition to employment and to enhance workers’ mobility . the esf + should promote women ' s participation in the labour market through measures aiming to ensure , amongst others , improved work / life balance and access to childcare . the esf + should also aim to provide a healthy and well - adapted working environment in order to respond to health risks related to changing forms of work and the needs of the ageing workforce . ### the esf + should aim to promote employment through active interventions enabling integration into the labour market , notably for youth , persons with disabilities and people with chronic diseases , the long - term unemployed and the economically inactive , as well as those facing multiple forms of discrimination through promoting self–employment and the social economy . the esf + should aim to improve the functioning of labour markets by supporting the modernisation of labour market institutions such as the public employment services in order to improve their capacity to provide intensified targeted counselling and guidance during the job search and the transition to employment and to enhance workers’ mobility . the esf + should promote women’s participation in the labour market through measures aiming to ensure , amongst others , improved work / life balance and access to childcare . the esf + should also aim to provide a healthy and well - adapted working environment in order to respond to health risks related to work as well as to changing forms of work and the needs of the ageing workforce .


### all programmes implemented under the esf + strand under shared management , as well as the operations supported by the employment and social innovation and health strands shall ensure equality between men and women throughout their preparation , implementation , monitoring and evaluation . they shall also promote equal opportunities for all , without discrimination based on sex , racial or ethnic origin , religion or belief , disability , age or sexual orientation throughout their preparation , implementation , monitoring and evaluation . ### all programmes implemented under the esf + strand under shared management , as well as the operations supported by the employment and social innovation and health strands shall ensure equality of all genders throughout their preparation , implementation , monitoring and evaluation . these operations include increasing the participation and progress of women in employment , combating the feminisation of poverty , gender stereotypes and intersecting discrimination in the labour market and in education and training in the frame of gender mainstreaming obligations . they shall also promote equal opportunities and accessibility for all , without discrimination based on sex , racial or ethnic origin , nationality , residence or employment status , religion or belief , disability , chronic diseases , age , sexual orientation , sex characteristics , gender expression or gender identity throughout their preparation , implementation , monitoring and evaluation . they shall also aim to improve accessibility for persons with disabilities , as set out in article 9 of the un convention on the rights of persons with disabilities , including access to the labour market .


### the council of [ … ] adopted revised guidelines for the employment policies of the member states to align the text with the principles of the european pillar of social rights , with a view to improving europe’s competitiveness and making it a better place to invest , create jobs and foster social cohesion . in order to ensure the full alignment of the esf + with the objectives of these guidelines , particularly as regards employment , education , training and the fight against social exclusion , poverty and discrimination , the esf + should support member states , taking account of the relevant integrated guidelines and relevant country - specific recommendations adopted in accordance with article 121 tfeu and article 148 tfeu and , where appropriate , at national level , the national reform programmes underpinned by national strategies . the esf + should also contribute to relevant aspects of the implementation of key union initiatives and activities , in particular the “skills agenda for europe” and the european education area , relevant council recommendations and other initiatives such as the youth guarantee , upskilling pathways and on integration of the long - term unemployed . ### the council of [ … ] adopted revised guidelines for the employment policies of the member states to align the text with the principles of the european pillar of social rights , with a view to improving europe’s competitiveness and making it a better place to invest , create jobs and foster social cohesion . in order to ensure the full alignment of the esf + with the objectives of these guidelines , particularly as regards employment , education , training and the fight against social exclusion , poverty and discrimination , the esf + should support member states , taking account of the relevant integrated guidelines and relevant country - specific recommendations adopted in accordance with article 121 tfeu and article 148 tfeu and , where appropriate , at national level , the national reform programmes underpinned by national strategies . the esf + should also contribute to relevant aspects of the implementation of key union initiatives and activities , in particular the “skills agenda for europe” , the european education area and the action plan on the integration of third - country nationals , relevant council recommendations and other initiatives such as the youth guarantee , upskilling pathways and on integration of the long - term unemployed .


### the member states and the commission should ensure that esf + contributes to the promotion of equality between women and men in accordance with article 8 tfeu to foster equality of treatment and opportunities between women and men in all areas , including regarding participation in the labour market , terms and conditions of employment and career progression . they should also ensure that the esf + promotes equal opportunities for all , without discrimination in accordance with article 10 tfeu and promotes the inclusion in society of persons with disabilities on equal basis with others and contributes to the implementation of the united nations convention on the rights of persons with disabilities . these principles should be taken into account in all dimensions and in all stages of the preparation , monitoring , implementation and evaluation of programmes , in a timely and consistent manner while ensuring that specific actions are taken to promote gender equality and equal opportunities . the esf + should also promote the transition from residential / institutional care to family and community - based care , in particular for those who face multiple discrimination . the esf + should not support any action that contributes to segregation or to social exclusion . regulation no [ future cpr ] provides that rules on eligibility of expenditure are to be established at national level , with certain exceptions for which it is necessary to lay down specific provisions with regard to the esf + strand under shared management . ### in line with the charter of fundamental rights of the european union , the member states and the commission should ensure that esf + contributes to the promotion of equality between women and men in accordance with article 8 tfeu to foster equality of treatment and opportunities between women and men in all areas , including regarding education and participation in the labour market , terms and conditions of employment and career progression . as well as the economic independence of women , education and skills upgrading and the reintegration of female victims of violence into society and into the labour market . synergiesand policy coherence with the rights and values programme in this should ensure that esf + can mainstream and upscale actions . the member states and the commission should also ensure that the esf + promotes equal opportunities for all , without discrimination based on sex , racial or ethnic origin , religion or belief , disability , age , sexual orientation in accordance with article 10 tfeu and promotes the inclusion in society of persons with disabilities on equal basis with others and contributes to the implementation of the united nations convention on the rights of persons with disabilities , with regard inter alia to education , employment , social protection and accessibility . these principles should be taken into account in all dimensions and in all stages of the preparation , monitoring , implementation and evaluation of programmes , in a timely and consistent manner while ensuring that specific actions are taken to promote gender equality and equal opportunities . the esf + should also promote the transition from institutional care to family and community - based care , in particular for those who face multiple and intersectional discrimination . the esf + should not support any action that contributes to segregation or to social exclusion or the reproduction of gender stereotypes . regulation no [ future cpr ] provides that rules on eligibility of expenditure are to be established at national level , with certain exceptions for which it is necessary to lay down specific provisions with regard to the social cohesion and social rights strand .


### the esf + should provide support to improving the quality , effectiveness and labour market relevance of education and training systems in order to facilitate the acquisition of key competences notably as regards digital skills which all individuals need for personal fulfilment and development , employment , social inclusion and active citizenship . the esf + should help progression within education and training and transition to work , support lifelong learning and employability , and contribute to competitiveness and societal and economic innovation by supporting scalable and sustainable initiatives in these fields . this could be achieved for example through work - based learning and apprenticeships , lifelong guidance , skills anticipation in cooperation with industry , up - to - date training materials , forecasting and graduate tracking , training of educators , validation of learning outcomes and recognition of qualifications . ### the esf + should provide support to improving the quality , accessibility and labour market relevance as well as the inclusive nature of education and training systems in order to facilitate the acquisition of key competences notably as regards cultural awareness and expression skills , digital and media skills , including data protection and information governance , transversal skills , language skills and citizenship skills which all individuals need for personal fulfilment and development , employment , social inclusion and active citizenship . the esf + should help progression and flexibility within education and training and transition to work , support lifelong learning and employability , and contribute to social cohesion , competitiveness and societal and economic innovation by supporting scalable and sustainable initiatives in these fields . this could be achieved for example through high - quality work - based learning and apprenticeships , lifelong guidance , skills anticipation in cooperation with industry , in the form of distance and blended - learning , up - to - date training materials , forecasting and graduate tracking , training of educators , support for informal , and non - formal learning validation of learning outcomes and recognition of qualifications and prior learning . the esf + should encourage and promote access to the teaching profession by minorities , aiming at a better integration of marginalised communities such as the roma , minorities and migrants .


### ' most deprived persons ' means natural persons , whether individuals , families , households or groups composed of such persons , whose need for assistance has been established according to the objective criteria set by the national competent authorities in consultation with relevant stakeholders , while avoiding conflicts of interest and which are approved by those national competent authorities and which may include elements that allow the targeting of the most deprived persons in certain geographical areas ; ### ' most deprived persons ' means natural persons , whether individuals , families , households or groups composed of such persons , including children whose need for assistance has been established according to their living situation , including homelessness , or the objective criteria set by the national competent authorities in consultation with relevant stakeholders , while avoiding conflicts of interest and which are approved by those national competent authorities and which may include elements that allow the targeting of the most deprived persons in certain geographical areas ;


### with a view to rendering policies more responsive to social change and to encourage and support innovative solutions , support for social innovation is crucial . in particular , testing and evaluating innovative solutions before scaling them up is instrumental in improving the efficiency of the policies and thus justifies specific support from the esf + . ### with a view to rendering policies more responsive to social change and to encourage and support innovative solutions , support for social innovation is crucial . in particular , testing and evaluating innovative solutions at local level before scaling them up is instrumental in improving the efficiency of the policies and thus justifies specific support from the esf + .


### in order to streamline and simplify the funding landscape and create additional opportunities for synergies through integrated funding approaches , the actions which were supported by the fund for european aid to the most deprived , the european union programme for employment and social innovation and the programme for the union’s action in the field of health should be integrated into one esf + . the esf + should therefore include three strands : the esf + strand under shared management , the employment and social innovation strand , and the health strand . this should contribute to reducing the administrative burden linked to the management of different funds , in particular for member states , whilst maintaining simpler rules for simpler operations such as the distribution of food and / or basic material assistance . ### in order to streamline and simplify the funding landscape and create additional opportunities for synergies through integrated funding approaches , the actions which were supported by the fund for european aid to the most deprived , the european union programme for employment and social innovation and the programme for the union ' s action in the field of health should be integrated into one esf + . the esf + should therefore include three strands : the esf + strand under shared management , the employment and social innovation strand , and the health strand under direct and indirect management . this should contribute to reducing the administrative burden linked to the management of different funds , in particular for member states and beneficiaries , whilst maintaining simpler rules for simpler operations such as the distribution of food and / or basic material assistance .


### to provide specific support services to employers and job - seekers with a view to the development of integrated european labour markets , ranging from pre - recruitment preparation to post - placement assistance to fill vacancies in certain sectors , professions , countries , border regions or for particular groups ; ### to develop and provide specific support services to workers , employers and job - seekers with a view to the development of integrated european labour markets , ranging from pre - recruitment preparation to post - placement assistance to fill vacancies in certain sectors , professions , countries , border regions or for particular groups ;


### under the health strand , the esf + shall support health promotion and disease prevention , contribute to effectiveness , accessibility and resilience of health systems , make healthcare safer , reduce health inequalities , protect citizens from cross - border health threats , and support eu health legislation . ### under the health strand , the esf + shall contribute to a high level of human health protection and disease prevention , including through the promotion of physical activity and promotion of health education , contribute to effectiveness , accessibility and resilience of health systems , make healthcare safer , reduce health inequalities , increase life expectancy at birth , protect citizens from cross - border health threats , and strengthen and support eu health - related legislation , including in the area of environmental health , and fostering health in all policies . the union’s health policy should be guided by sustainable development goals to ensure that the union and member states reach the targets of sdg 3 ' ensure healthy lives and promote well - being for all at all ages” .


### the member states and the commission should ensure that esf + contributes to the promotion of equality between women and men in accordance with article 8 tfeu to foster equality of treatment and opportunities between women and men in all areas , including regarding participation in the labour market , terms and conditions of employment and career progression . they should also ensure that the esf + promotes equal opportunities for all , without discrimination in accordance with article 10 tfeu and promotes the inclusion in society of persons with disabilities on equal basis with others and contributes to the implementation of the united nations convention on the rights of persons with disabilities . these principles should be taken into account in all dimensions and in all stages of the preparation , monitoring , implementation and evaluation of programmes , in a timely and consistent manner while ensuring that specific actions are taken to promote gender equality and equal opportunities . the esf + should also promote the transition from residential / institutional care to family and community - based care , in particular for those who face multiple discrimination . the esf + should not support any action that contributes to segregation or to social exclusion . regulation no [ future cpr ] provides that rules on eligibility of expenditure are to be established at national level , with certain exceptions for which it is necessary to lay down specific provisions with regard to the esf + strand under shared management . ### the member states , also through their management authorities at national and regional level , and the commission should ensure that esf + contributes to the promotion of equality between women and men in accordance with article 8 tfeu to foster equality of treatment and opportunities between women and men in all areas , including regarding participation in the labour market , terms and conditions of employment and career progression and pensions . they should also ensure that the esf + promotes equal opportunities for all , without discrimination in accordance with article 10 tfeu and promotes the inclusion in society of persons with disabilities and chronic diseases on equal basis with others and contributes to the implementation of the united nations convention on the rights of persons with disabilities . these principles should be taken into account in all dimensions and in all stages of the preparation , monitoring , implementation and evaluation of programmes , in a timely and consistent manner while ensuring that specific actions are taken to promote gender equality and equal opportunities . the esf + should also promote the transition from institutional care to family and community - based care , in particular for those who face multiple discrimination . this should also include the development of a national / regional deinstitutionalisation strategy and action plan . the esf + should not support any action that contributes to segregation or to social exclusion . regulation no [ future cpr ] provides that rules on eligibility of expenditure are to be established at national level , with certain exceptions for which it is necessary to lay down specific provisions with regard to the esf + strand under shared management .


### promoting lifelong learning , notably flexible upskilling and reskilling opportunities for all taking into account digital skills , better anticipating change and new skills requirements based on labour market needs , facilitating career transitions and promoting professional mobility ; ### promoting lifelong learning , notably flexible and learner - centred upskilling and reskilling opportunities for all taking into account digital skills , better anticipating change and new skills requirements based on personal , societal and labour market needs , facilitating career transitions and promoting professional mobility as well as occupational literacy , fostering participation in society and tackling societal challenges ;


### the union is confronted with structural challenges arising from economic globalisation , the management of migration flows and the increased security threat , clean energy transition , technological change and an increasingly ageing workforce and growing skills and labour shortages in some sectors and regions , experienced especially by smes . taking into account the changing realities of the world of work , the union should be prepared for the current and future challenges by investing in relevant skills , making growth more inclusive and by improving employment and social policies , including in view of labour mobility . ### the union is confronted with structural challenges arising from social and economic inequalities , globalisation , the management of migration flows and related integration challenges , clean energy transition , technological change , demographic developments , unequal access to education and digitalization , an increasingly ageing workforce and growing skills and labour shortages in some sectors and regions , experienced especially by smes . taking into account the changing realities of the world of work , the union should be prepared for the current and future challenges by investing in relevant skills , making labour market , including quality education and training , lifelong learning , more inclusive and by improving employment , education and social policies , including in view of a voluntary labour mobility .


### in light of the persistent need to enhance efforts to address the management of the migration flows in the union as a whole and in order to ensure a coherent , strong and consistent support to the solidarity and responsibility - sharing efforts , the esf + should provide support to promote the socio - economic integration of third country nationals complementary to the actions financed under the asylum and migration fund . ### in light of the need to enhance efforts to address the integration and inclusion of third - country nationals in the union as a whole and in order to ensure a coherent , strong and consistent support to the solidarity and fair responsibility - sharing efforts , the esf + should provide support to promote the socio - economic integration of third country nationals complementary to the actions financed under the asylum and migration fund , the erdf , and those funds which can have a positive effect on the integration and inclusion of third - country nationals .


### fostering active inclusion with a view to promoting equal opportunities and active participation , and improving employability ; ### fostering active inclusion and full participation in society with a view to promoting equal opportunities , non - discrimination , democracy and active participation , and improving labour opportunities and social inclusion ;


### the council of [ … ] adopted revised guidelines for the employment policies of the member states to align the text with the principles of the european pillar of social rights , with a view to improving europe ' s competitiveness and making it a better place to invest , create jobs and foster social cohesion . in order to ensure the full alignment of the esf + with the objectives of these guidelines , particularly as regards employment , education , training and the fight against social exclusion , poverty and discrimination , the esf + should support member states , taking account of the relevant integrated guidelines and relevant country - specific recommendations adopted in accordance with article 121 tfeu and article 148 tfeu and , where appropriate , at national level , the national reform programmes underpinned by national strategies . the esf + should also contribute to relevant aspects of the implementation of key union initiatives and activities , in particular the ' skills agenda for europe ' and the european education area , relevant council recommendations and other initiatives such as the youth guarantee , upskilling pathways and on integration of the long - term unemployed . ### the council of [ … ] adopted revised guidelines for the employment policies of the member states to align the text with the principles of the european pillar of social rights , with a view to improving europe ' s competitiveness and making it a better place to invest , create jobs and foster social cohesion . in order to ensure the full alignment of the esf + with the objectives of these guidelines , particularly as regards employment , education , training and the fight against social exclusion , poverty and discrimination , the esf + should support member states , taking account of the relevant integrated guidelines and relevant country - specific recommendations adopted in accordance with article 121 tfeu and article 148 tfeu and , where appropriate , at national level , the national reform programmes underpinned by national strategies . the esf + should also contribute to relevant aspects of the implementation of key union initiatives and activities , in particular the ' skills agenda for europe ' , the european education area and the action plan on the integration of third - country nationals , the youth guarantee and other relevant council recommendations and other initiatives such as the youth guarantee , upskilling pathways and on integration of the long - term unemployed .


### in light of the persistent need to enhance efforts to address the management of the migration flows in the union as a whole and in order to ensure a coherent , strong and consistent support to the solidarity and responsibility - sharing efforts , the esf + should provide support to promote the socio - economic integration of third country nationals complementary to the actions financed under the asylum and migration fund . ### in light of the persistent need to enhance efforts to address the management of the migration flows in the union as a whole and in order to ensure a coherent , strong and consistent support to the solidarity and responsibility - sharing efforts , the esf + should provide support to promote the socio - economic inclusion of third country nationals , including refugees and asylum seekers , complementary to the actions financed under the asylum and migration fund . member states should allocate 2% of their esf + resources to the inclusion of third - country nationals and / or marginalised communities at local level .


### the esf + committee may set up working groups for each of the strands of the esf + . ### the esf + committee shall set up working groups for each of the programming priorities as set out in articles 9 - 10 . the esf + committee may set up additional working groups .


### social experimentation is a small - scale project testing which allows gathering evidence on the feasibility of social innovations . it should be possible for feasible ideas to be pursued on a wider scale or in other contexts with financial support from the esf + , as well as from other sources . ### social experimentation is a small - scale project testing which allows gathering evidence on the feasibility of social innovations . it should be possible and encouraged for ideas to be tested at local level and for feasible ones to be pursued on a wider scale or transferred to other contexts in different regions or member states with financial support from the esf + or in combination with other sources .


### social experimentation is a small - scale project testing which allows gathering evidence on the feasibility of social innovations . it should be possible for feasible ideas to be pursued on a wider scale or in other contexts with financial support from the esf + , as well as from other sources . ### social experimentation is a small - scale project testing which allows gathering evidence on the feasibility of social innovations . it is the case with many cross - sector projects , like arts in social environment , which is an essential element of inclusion . it should be possible for feasible ideas to be pursued on a wider scale or in other contexts with financial support from the esf + , as well as from other sources .


### a greener , low carbon europe through the improvement of education and training systems necessary for the adaptation of skills and qualifications , the upskilling of all , including the labour force , the creation of new jobs in sectors related to the environment , climate and energy , and the bioeconomy . ### a greener , low carbon europe through the improvement of education and training systems necessary for the adaptation of skills and qualifications , awareness raising among the population about sustainable development and lifestyles , the upskilling of all , including the labour force , the creation of new high - quality jobs in sectors related to the environment , climate and energy , and the circular economy and bioeconomy .


### the esf + should support member states’ efforts to tackle poverty with a view to breaking the cycle of disadvantage across generations and promote social inclusion by ensuring equal opportunities for all , tackling discrimination and addressing health inequalities . this implies mobilising a range of policies targeting the most disadvantaged people regardless of their age , including children , marginalised communities such as the roma , and the working poor . the esf + should promote the active inclusion of people far from the labour market with a view to ensuring their socio - economic integration . the esf + should be also used to enhance timely and equal access to affordable , sustainable and high quality services such as healthcare and long - term care , in particular family and community - based care services . the esf + should contribute to the modernisation of social protection systems with a view in particular to promoting their accessibility . ### the esf + should support member states’ efforts at all levels of government including at regional and local level to tackle poverty with a view to breaking the cycle of disadvantage across generations and promote social inclusion by ensuring equal opportunities for all , tackling discrimination and addressing health inequalities and housing deprivation , including homelessness , while putting special emphasis on combatting the feminisation of poverty . this implies mobilising a range of policies targeting the most disadvantaged people regardless of their age , including children , marginalised communities such as the roma , people with disability , illness and / or chronic conditions , the working poor , the homeless , third - country nationals , including refugees , asylum seekers , undocumented migrants and stateless persons , and all other people facing multiple social challenges and multiple forms of discrimination . the esf + should promote the active inclusion of people far from the labour market with a view to ensuring their socio - economic inclusion and full participation in society . the esf + should be also used to enhance social rights through timely and equal access to affordable , sustainable and high quality services such as counselling , healthcare , childcare and early childhood education and long - term care , in particular family and community - based care services , and access to decent energy - efficient affordable housing , including social housing . the esf + should contribute to the modernisation of social protection systems and social services with a view in particular to promoting their accessibility and coverage .


### in order to meet the growing demand for support from member states , and in view of the need to support the implementation of structural reforms in member states whose currency is not the euro , the financial allocation for the programme should be increased to a sufficient level that allows the union to provide support that meets the needs of the requesting member states . ### in order to meet the growing demand for support from member states , the financial allocation for the programme should be increased by using the flexibility instrument under council regulation no 1311 / 2013 of 2 december 2013 laying down the multiannual financial framework for the years 2014 - 20201a to a sufficient level that allows the union to provide support that meets the needs of the requesting member states . it is important that resources allocated to the european structural and investment funds should not be redeployed and that member states should not be obliged to transfer their national and regional esif allocations with a view to filling the financing gap of the programme . _________________ 1a oj l 347 , 20 . 12 . 2013 , p . 884 .


### the resettlement procedures laid down in articles 10 and 11 shall apply to third - country nationals or stateless persons who have given their consent to be resettled and have not subsequently withdrawn their consent , including refusing resettlement to a particular member state . ### the resettlement procedures laid down in articles 10 and 11 shall apply to third - country nationals or stateless persons who have given their consent to be resettled and have not subsequently withdrawn their consent .


### in order to reduce divergences among the national resettlement practices and procedures , common standard procedures and common eligibility criteria and exclusion grounds for the selection should be laid down , as well as a common protection status to be granted to resettled persons . ### in order to harmonise national resettlement practices and procedures , common standard procedures and common eligibility criteria and ineligibility grounds for the selection should be laid down , as well as a common protection status to be granted to resettled persons .


### grant refugee status where the third - country national or the stateless person concerned qualifies as a refugee or subsidiary protection status where the third - country national or the stateless person concerned is eligible for subsidiary protection . the member state shall notify the third - country national or the stateless person concerned of that decision . the decision to grant refugee status or subsidiary protection status shall have the same effect as a decision to grant refugee status or to grant subsidiary protection status referred to in articles 13 and 19 of regulation no xxx / xxx [ qualification regulation ] , once the person concerned has entered the territory of a member state ; ### grant refugee status . the member state shall notify the third - country national or the stateless person concerned of that decision . the decision to grant refugee status shall have the same effect as a decision to grant refugee status referred to in articles 13 of regulation no xxx / xxx [ qualification regulation ] , once the person concerned has entered the territory of a member state ;


### contribute to the reduction of the risk of a large - scale irregular inflow of third - country nationals and stateless persons in need of international protection to the territory of the member states ; ### contribute to ensuring expedited access to the european union for third - country nationals and stateless persons in need of international protection and increase member states ' resettlement efforts ;


### each targeted union resettlement scheme should determine which standard procedural rules should apply to its implementation . it should in addition set out local cooperation arrangements where and as appropriate to facilitate its implementation . ### each targeted union resettlement scheme should determine which standard procedural rules should apply to its implementation . it should in addition set out local cooperation arrangements and cooperation arrangements with unhcr to facilitate its implementation .


### such a framework is a necessary part of a well - managed migration policy to reduce divergences among national resettlement practices and procedures , provide for the legal and safe arrival to the territory of the member states of third - country nationals and stateless persons in need of international protection , help reduce the risk of a large - scale irregular inflow of third - country nationals and stateless persons to the territory of the member states and thereby reducing the pressure of spontaneous arrivals on the member states ' asylum systems , be an expression of solidarity with countries in regions to which or within which a large number of persons in need of international protection has been displaced by helping to alleviate the pressure on those countries , help achieve union ' s foreign policy objectives by increasing the union ' s leverage vis - à - vis third countries , and effectively contribute to global resettlement initiatives through speaking with one voice in international fora and with third countries . ### such a framework is a necessary part of a well - managed migration policy to increase and complement national resettlement practices and procedures , provide for the legal and safe arrival to the territory of the member states of third - country nationals and stateless persons in need of international protection , help reduce the risk of a poorly managed irregular inflow of third - country nationals and stateless persons to the territory of the member states , especially of first arrival , and thereby reducing the pressure of spontaneous arrivals on the member states ' asylum systems , be an expression of solidarity with countries in regions to which or within which a large number of persons in need of international protection has been displaced by helping to alleviate the pressure on those countries , enhance cooperation with third countries and effectively contribute to global resettlement initiatives through speaking with one voice in international fora and with third countries . together with development actions and policies , resettlement can effectively contribute to decreasing tensions and alleviating protracted refugee situations in third countries .


### grant refugee status where the third - country national or the stateless person concerned qualifies as a refugee or subsidiary protection status where the third - country national or the stateless person concerned is eligible for subsidiary protection . the member state shall notify the third - country national or the stateless person concerned of that decision . the decision to grant refugee status or subsidiary protection status shall have the same effect as a decision to grant refugee status or to grant subsidiary protection status referred to in articles 13 and 19 of regulation no xxx / xxx [ qualification regulation ] , once the person concerned has entered the territory of a member state ; ### grant refugee status where the third - country national or the stateless person concerned qualifies as a refugee . for third - country nationals or stateless persons who do not qualify as a refugee or falling within the scope of article 1d of the 1951 geneva convention , relating to protection or assistance from organs or agencies of the united nations other than the united nations high commissioner for refugees , a status equivalent to refugee status has to be provided by the member state . the member state shall notify the third - country national or the stateless person concerned of that decision . the decision to grant refugee status or equivalent status shall have the same effect as a decision to grant refugee status referred to in article 13 of regulation no xxx / xxx [ qualification regulation ] , once the person concerned has entered the territory of a member state ;


### this regulation does not affect the ability of the member states to adopt or implement national resettlement schemes , which do not jeopardise the attainment of the union’s objectives under this regulation , for example where they contribute an additional number of resettlement places to targeted union resettlement schemes established under this regulation going beyond their contribution to the maximum number of persons to be resettled under the annual union resettlement plan . ### this regulation does not affect the ability of the member states to adopt or implement national resettlement schemes , which do not jeopardise the attainment of the union’s objectives under this regulation , for example where they contribute an additional number of resettlement places to targeted union resettlement schemes established under this regulation going beyond their contribution to the minimum number of persons to be resettled under the multiannual union resettlement plan .


### where a negative decision is taken , no resettlement of the person concerned shall occur . ### where a negative decision is taken , no resettlement of the person concerned shall occur to the member state that has made the decision and any data stored shall be erased . the grounds for rejection shall be notified to unhcr or other organisations that made the submission for follow - up as appropriate .


### building on the existing initiatives , a stable and reliable union resettlement framework should be established for the resettlement of persons in need of international protection to be implemented in accordance with annual union resettlement plans and targeted union resettlement schemes which effectively deliver on member states ' concrete commitments . ### building on the existing initiatives , a stable and reliable union resettlement framework should be established for the resettlement of persons in need of international protection to be implemented in accordance with annual union resettlement plans and targeted union resettlement schemes which effectively deliver on member states ' concrete commitments . the union resettlement framework should be based on humanitarian needs , contribute to meeting the global resettlement needs and alleviate protracted refugee situations .


### the number of persons in need of international protection displaced to or within a third country and any onward movement of those persons to the territory of the member states ; ### the number of vulnerable persons in need of international protection displaced to or within a third country and any onward movement of those persons to the territory of the member states , in accordance with the global resettlement needs as per the unhcr projected global resettlement needs ;


### these powers should be exercised on a proposal from the commission on the maximum total number of persons to be resettled and overall geographical priorities . the commission should make its proposal simultaneously with its proposal on the draft union annual budget . the council should aim to adopt the proposal within two months . the commission and the council should take into account the discussions within the high - level resettlement committee . ### these powers should be exercised on a delegated act from the commission on the minimum total number of persons to be resettled and overall priorities concerning persons in most urgent need of protection . the commission should take into account the discussions within the high - level resettlement committee and align its proposal with the annual tripartite consultations on resettlement , with the aim of gradually scaling up member states ' collective resettlement efforts to reach at least 25% of the global resettlement needs as outlined in unhcrs annual projected global resettlement needs . .


### –the father , mother or another adult responsible for the unmarried minor to be resettled , whether by law or by the practice of the member state where the adult is present ; ### –the father , mother or another adult responsible for the minor to be resettled , whether by law or by the practice of the member state where the adult is present ;


### –the minor children of couples referred to in the first indent or of third - country nationals or stateless persons to be resettled , on the condition that they are unmarried , regardless of whether they were born in or out of wedlock or adopted as defined under national law ; ### –the children of couples referred to in the first indent or of third - country nationals or stateless persons to be resettled regardless of whether they were born in or out of wedlock or adopted as defined under national law ;


### the commission shall adopt implementing acts establishing targeted union resettlement schemes consistent with the annual union resettlement plan adopted pursuant to article 7 . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 15 . ### the commission shall adopt delegated acts in accordance with article 14 , supplementing this regulation , in order to establish targeted union resettlement schemes consistent with the annual&#160 ; union resettlement plan adopted pursuant to article 7 , in accordance with paragraph 2 .


### the resettlement procedure should be concluded as soon as possible in order to discourage persons in need of international protection to use irregular ways to enter the european union to seek protection . at the same time it should ensure that member states have sufficient time for a full and adequate examination of each case . the time - limits should correspond to what is necessary to make the different types of assessment foreseen for the ordinary and expedited procedure . ### the resettlement procedure should be concluded as soon as possible in order to ensure expedited access to the union for persons in need of international protection . at the same time it should ensure that member states have sufficient time for a full and adequate examination of each case . the time - limits should correspond to what is necessary to make the different types of assessment foreseen for the ordinary and expedited procedure .


### grounds for exclusion ### grounds for ineligibility


### persons for whom there are reasonable grounds for considering that : ### persons for whom there are proven reasonable grounds for considering that :


### a high - level resettlement committee shall be established , composed of representatives of the european parliament , the council , the commission , the high representative of the union for foreign affairs and security policy , and the member states . [ the european union agency for asylum , ] unhcr , and iom may be invited . representatives of iceland , liechtenstein , norway , and switzerland shall be invited to attend the meetings of the high - level resettlement committee where they have indicated their intention to be associated with the implementation of the annual union resettlement plan . ### a high - level resettlement committee shall be established , composed of representatives of the european parliament , the council , the commission , the high representative of the union for foreign affairs and security policy , the member states , [ the european union agency for asylum , ] unhcr , and iom . representatives of iceland , liechtenstein , norway , and switzerland shall be invited to attend the meetings of the high - level resettlement committee where they have indicated their intention to be associated with the implementation of the multiannual union resettlement plan .


### –the minor children of couples referred to in the first indent or of third - country nationals or stateless persons to be resettled , on the condition that they are unmarried , regardless of whether they were born in or out of wedlock or adopted as defined under national law ; ### –the minor children of couples referred to in the first indent or of third - country nationals or stateless persons to be resettled , regardless of whether they were born in or out of wedlock or adopted as defined under national law ;


### –third - country nationals or stateless persons to be resettled who are dependent on their child or parent for assistance as a result of pregnancy , a newborn child , serious illness , severe disability or old age , provided that family ties existed in the country of origin , that the child or parent is able to take care of the dependent person and that the persons concerned expressed their desire in writing ; ### –third - country nationals or stateless persons to be resettled who are dependent on their child , parent or other family member for assistance as a result of pregnancy , a newborn child , serious illness , severe disability or old age , provided that family ties existed in the country of origin , that the child or parent is able to take care of the dependent person and that the persons concerned expressed their desire in writing ;


### the commission shall adopt implementing acts establishing targeted union resettlement schemes consistent with the annual union resettlement plan adopted pursuant to article 7 . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 15 . ### the commission shall adopt delegated acts in accordance with article 14 , supplementing this regulation , in order to establish targeted union resettlement schemes consistent with the multiannual union resettlement plan , adopted pursuant to article 7 , in accordance with paragraph 2 .


### on the basis of a proposal from the commission , the council shall adopt an annual union resettlement plan in the year preceding that in which it is to be implemented . ### the commission shall adopt delegated acts , in accordance with article 14 , supplementing this regulation , &#160 ; in order to establish a multiannual union resettlement plan in the year preceding that in which it is to be implemented , in accordance with the following paragraphs .


### –survivors of violence and / or torture , including on the basis of gender ; ### –survivors of violence and / or torture , including on the basis of gender or sexual orientation ;


### grant refugee status where the third - country national or the stateless person concerned qualifies as a refugee or subsidiary protection status where the third - country national or the stateless person concerned is eligible for subsidiary protection . the member state shall notify the third - country national or the stateless person concerned of that decision . the decision to grant refugee status or subsidiary protection status shall have the same effect as a decision to grant refugee status or to grant subsidiary protection status referred to in articles 13 and 19 of regulation no xxx / xxx [ qualification regulation ] , once the person concerned has entered the territory of a member state ; ### grant refugee status where the third - country national or the stateless person concerned qualifies as a refugee . for third - country nationals or stateless persons who do not qualify as a refugee or falling within the scope of article 1d of the 1951 geneva convention , relating to protection or assistance from organs or agencies of the united nations other than the united nations high commissioner for refugees , a status equivalent to refugee status has to be provided by the member state . the member state shall notify the third - country national or the stateless person concerned of that decision . the decision to grant refugee status or equivalent status shall have the same effect as a decision to grant refugee status referred to in article 13 of regulation no xxx / xxx [ qualification regulation ] , once the person concerned has entered the territory of a member state ;


### they have committed a serious crime ; ### they have committed a serious non - political crime ;


### resettled persons should be granted international protection . accordingly , the provisions on the content of international protection contained in the asylum acquis should apply as of the moment when resettled persons arrive on the territory of the member states , including the rules to discourage secondary movement of beneficiaries of international protection . ### resettled persons should be granted international protection . accordingly , the provisions on the content of international protection contained in the asylum acquis should apply as of the moment when resettled persons arrive on the territory of the member states .


### member states shall take a decision on the resettlement of third - country nationals or stateless persons on the basis of the assessment referred to in paragraph 3 as soon as possible and not later than eight months from their registration . member states may extend that time - limit of eight months by a period of not more than four months , where complex issues of fact or law are involved . ### member states shall take a decision on the resettlement of third - country nationals or stateless persons on the basis of the assessment referred to in paragraph 3 as soon as possible and not later than six months from their registration . member states may extend that time - limit of six months by a period of not more than two months , where complex issues of fact or law are involved .


### annual union resettlement plan ### multiannual union resettlement plan


### in paragraph 1 the following is deleted : ‘ in emergency situations , as a last resort , ’ ### paragraph 1 is replaced by the following : “1 . by way of derogation from article 1 , the exemption from the visa requirement for nationals of a third country listed in annex ii shall be temporarily suspended in emergency situations , which have a serious negative impact on the overall migratory situation in the union , as a last resort , in accordance with this article . ”


### by way of derogation , an application that does not meet the requirements set out in paragraph 1 may be considered admissible on humanitarian grounds or for reasons of national interest . ### by way of derogation , an application that does not meet the requirements set out in paragraph 1 shall be considered admissible when the member state concerned considers it necessary on humanitarian grounds , for reasons of national interest or because of international obligations .


### if there are reasonable doubts as to the authenticity of the supporting documents submitted by the applicant or the veracity of their contents , the reliability of the statements made by the applicant or his intention to leave the territory of the member states before the expiry of the visa applied for . ### if there are strong doubts as to the authenticity of the supporting documents submitted by the applicant or the veracity of their contents , the reliability of the statements made by the applicant or his intention to leave the territory of the member states before the expiry of the visa applied for .


### the member state may prolong the application of the airport transit visa requirement only once where the lifting of the requirement would lead to a substantial influx of irregular migrants . paragraph 3 shall apply to such prolongation . ### the member state may prolong the application of the airport transit visa requirement only once where the lifting of the requirement would lead to a substantial influx of irregular immigrants . paragraph 3 shall apply to such prolongation .


### a decision on annulment or revocation of a visa and the reasons on which it is based shall be notified to the applicant by means of the standard form set out in annex v . ### a motivated decision on annulment or revocation of a visa and the detailed reasons on which it is based shall be notified to the applicant by means of the standard form set out in annex v .


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


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


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


### the second paragraph of paragraph 1 is replaced by the following : ' the commission shall be empowered to adopt a delegated act in accordance with article 23 . this act shall also provide for additional allocation from the new entrants reserve for significant production increases by applying the same thresholds and allocation adjustments as apply in respect of partial cessations of operation . ' ### paragraph 1 is replaced by the following : ' 300 million allowances shall be used to finance climate action in least developed countries , in particular for adaptation to the impacts of climate change , through the united nations green climate fund . '


### from 2021 onwards , the share of allowances to be auctioned by member states shall be 57% . ### from 1st january 2021 , member states shall auction all allowances .


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


### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of ccs and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed . ### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of innovative renewable energy technologies and ccs that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed .


### 400 million allowances shall be available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe capture and geological storage of co2 as well as demonstration projects of innovative renewable energy technologies , in the territory of the union . ### 600 million allowances shall be available to leverage investment in support of innovation in renewable energy technologies , low - carbon products , bio - based materials and products substituting carbon intensive materials , technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration and pilot projects of innovative renewable energy technologies and energy storage , as well as demonstration and pilot projects that aim at the environmentally safe capture and geological storage of co2 as well as capture and re - use of co2 , in the territory of the union .


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


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


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


### member states shall determine the use of revenues generated from the auctioning of allowances . at least 50 % of the revenues generated from the auctioning of allowances referred to in paragraph 2 , including all revenues from the auctioning referred to in paragraph 2 , points and , or the equivalent in financial value of these revenues , should be used for one or more of the following : ### in paragraph 3 , the introductory part is replaced by the following : “3 . member states shall determine the use of revenues generated from the auctioning of allowances . at least 50 % of the revenues generated from the auctioning of allowances referred to in paragraph 2 , including all revenues from the auctioning referred to in paragraph 2 , points and , or the equivalent in financial value of these revenues , shall be used for financing climate action in vulnerable developing countries , including to reduce greenhouse gas emissions , and to adapt to the impact of climate change . the rest shall be used for one or more of the following : '


### the auctioning of allowances remains the general rule , with free allocation as the exception . consequently , and as confirmed by the european council , the share of allowances to be auctioned , which was 57% over the period 2013 - 2020 , should not be reduced . the commission ' s impact assessment18 provides details on the auction share and specifies that this 57% share is made up of allowances auctioned on behalf of member states , including allowances set aside for new entrants but not allocated , allowances for modernising electricity generation in some member states and allowances which are to be auctioned at a later point in time because of their placement in the market stability reserve established by decision 2015 / … of the european parliament and of the council19 . __________________ 18 secxx 19 decision 2015 / … of the european parliament and of the council of … concerning the establishment and operation of a market stability reserve for the union greenhouse gas emission trading scheme and amending directive 2003 / 87 / ec . ### the auctioning of allowances remains the general rule , with free allocation as the exception . the european council agreed that the share of allowances to be auctioned , which was estimated by the commission to be 57% over the period 2013 - 2020 , should not be reduced . the commission ' s impact assessment18 provides details on the auction share and specifies that this 57% share is made up of allowances auctioned on behalf of member states , including allowances set aside for new entrants but not allocated , allowances for modernising electricity generation in some member states and allowances which are to be auctioned at a later point in time because of their placement in the market stability reserve established by decision 2015 / 1814 of the european parliament and of the council 19 . however , given that future growth rates are unpredictable , that there is a need to encourage industrial growth and in order to mitigate the effect of a cross sectoral correction factor , flexibility should be introduced to the eu ets with a view to enabling a transfer of a limited number of allowances from the auctioning share to the free allowances share in the event of such a factor being applicable . __________________ 18 swd135 19 decision 2015 / 1814 of the european parliament and of the council of 6 october 2015 concerning the establishment and operation of a market stability reserve for the union greenhouse gas emission trading scheme and amending directive 2003 / 87 / ec .


### from 2021 , allowances not allocated to installations because of the application of paragraphs 19 and 20 shall be added to the reserve . ### from 2021 onwards , any allowances not allocated to installations because of the application of paragraphs 19 and 20 shall be added to the reserve . allowances which are in the reserve by 2030 shall be cancelled .


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


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


### to preserve the environmental benefit of emission reductions in the union while actions by other countries do not provide comparable incentives to industry to reduce emissions , free allocation should continue to installations in sectors and sub - sectors at genuine risk of carbon leakage . experience gathered during the operation of the eu ets confirmed that sectors and sub - sectors are at risk of carbon leakage to varying degrees , and that free allocation has prevented carbon leakage . while some sectors and sub - sectors can be deemed at a higher risk of carbon leakage , others are able to pass on a considerable share of the costs of allowances to cover their emissions in product prices without losing market share and only bear the remaining part of the costs so that they are at a low risk of carbon leakage . the commission should determine and differentiate the relevant sectors based on their trade intensity and their emissions intensity to better identify sectors at a genuine risk of carbon leakage . where , based on these criteria , a threshold determined by taking into account the respective possibility for sectors and sub - sectors concerned to pass on costs in product prices is exceeded , the sector or sub - sector should be deemed at risk of carbon leakage . others should be considered at a low risk or at no risk of carbon leakage . taking into account the possibilities for sectors and sub - sectors outside of electricity generation to pass on costs in product prices should also reduce windfall profits . ### the study commissioned by the commission from a consortium of research and analysis centres in 2013 has concluded that during the years 2005 - 2012 no carbon leakage as defined by the directive has occurred and that the slight fluctuations in imports / exports observed is attributable to the global demand development and input price differences . according to a recent study , differences in electricity prices are unlikely to significantly affect the union market and , even for energy intensive sectors , the electricity price could account for roughly the 0 . 01% of changes in the market flow . the same study has concluded that with a co2 price of eur 40 - 65 per ton imports would increase by less than 0 . 05% and exports would decrease approximately by 0 . 2% .


### ' to fund financial measures in favour of sectors or subsectors that are exposed to a genuine risk of carbon leakage due to significant indirect costs that are actually incurred from greenhouse gas emission costs passed on in electricity prices , provided that these measures meet the conditions set out in article 10a ; ' ### ' to fund the dissemination of renewable energies and to support sectors or subsectors conventionally defined as exposed to a genuine risk of carbon leakage due to their significant indirect costs , determined by the use of an increased share of renewables - generated power and by the reduction of the costs incurred from greenhouse gas emissions costs passed on in electricity prices ; '


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


### the fund shall be governed by an investment board and a management committee , which shall be composed of representatives from the beneficiary member states , the commission , the eib and three representatives elected by the other member states for a period of 5 years . the investment board shall be responsible to determine an union - level investment policy , appropriate financing instruments and investment selection criteria . the management committee shall be responsible for the day - to - day management of the fund . ### the fund shall be governed by an investment board and a management committee . the investment board shall be composed of representatives from all the beneficiary member states , the commission and the eib for a period of 5 years . the investment board shall be responsible to determine an union - level investment policy , appropriate financing instruments and investment selection criteria . public consultation shall be undertaken regarding the investment selection criteria and the results of the public consultation shall be taken into account by the investment board before the adoption of the selection criteria . the management committee shall be composed of representatives appointed by the investment board and shall be responsible for the day - to - day management of the fund . decisions of the management committee shall be taken by simple majority .


### the european council confirmed that a well - functioning , reformed eu ets with an instrument to stabilise the market will be the main european instrument to achieve this target , with an annual reduction factor of 2 . 2% from 2021 onwards , free allocation not expiring but existing measures continuing after 2020 to prevent the risk of carbon leakage due to climate policy , as long as no comparable efforts are undertaken in other major economies , without reducing the share of allowances to be auctioned . the auction share should be expressed as a percentage figure in the legislation , to enhance planning certainty as regards investment decisions , to increase transparency and to render the overall system simpler and more easily understandable . ### the reformed eu ets needs to set an annual reduction factor of 2 . 8% from 2021 onwards and revise measures to prevent the risk of carbon leakage due to climate policy , as long as no comparable efforts are undertaken in third countries or subnational regions , increasing the share of allowances to be auctioned . the auction share should be expressed as a minimum percentage figure in the legislation , to enhance planning certainty as regards investment decisions , to increase transparency and to render the overall system simpler and more easily understandable .


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


### ‘ 3a . an obligation to surrender allowances shall not arise in respect of emissions verified as captured and transported for permanent storage to a facility for which a permit is in force in accordance with directive 2009 / 31 / ec of the european parliament and of the council of 23 april 2009 on the geological storage of carbon dioxide &#160 ; oj l 140 , 5 . 6 . 2009 , p . 114 . ' ### in article 12 , paragraph 3a is deleted .


### where necessary , the commission may adopt amendments to provide for flights arriving from the third country concerned to be excluded from the aviation activities listed in annex i or to provide for any other amendments to the aviation activities listed in annex i which are required by an agreement pursuant to the fourth subparagraph . the commission shall be empowered to adopt such amendments in accordance with article 23 . ### where necessary , the commission may submit a legislative proposal to the european parliament and council to provide for flights arriving from the third country concerned to be excluded from the aviation activities listed in annex i or to provide for any other amendments to the aviation activities listed in annex i which are required by an agreement with that third country .


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