### without prejudice to the fundamental rights to the protection of private life , including confidentiality of communications , and the protection of personal data of the consumer , the consumer should cooperate with the supplier in order to allow the supplier to ascertain the consumer ' s digital environment with the use of the least intrusive means which are at the disposal of both parties in the circumstances . this may often be done for instance by providing the supplier with automatically generated incident reports or details of the consumer ' s internet connection . only in exceptional and duly justified circumstances where with the best use of all other means there is no other way possible , this may also be done by allowing virtual access to the consumer ' s digital environment . however , where the consumer does not cooperate with the supplier , it should be for the consumer to prove that the digital content is not in conformity with the contract . ### without prejudice to the fundamental rights to the protection of private life , including confidentiality of communications , and the protection of personal data of the consumer , the consumer should cooperate with the supplier in order to allow the supplier to ascertain the consumer ' s digital environment with the use of the least intrusive means which are at the disposal of both parties in the circumstances . this may often be done for instance by providing the supplier with automatically generated incident reports or details of the consumer ' s internet connection . the provision of this information should not be treated as a counter - performance within this directive . only in exceptional and duly justified circumstances where with the best use of all other means there is no other way possible , this may also be done by allowing virtual access to the consumer ' s digital environment . however , where the consumer does not cooperate with the supplier , it should be for the consumer to prove that the digital content is not in conformity with the contract .


### upon termination the supplier should also refrain from using the content generated by the consumer . however , in those cases where more than one consumer generated particular content , the supplier is entitled to continue to use the content generated by the consumer where those other consumers make use of it . ### upon termination the supplier should also refrain from using the content generated by the consumer . however , in those cases where more than one consumer generated particular content , the supplier is entitled to continue to use the content generated by the consumer where those other consumers make use of it . for example , content provided by a consumer under a free licence to a collaborative project should be free to be re - used under the same licence terms under which it was originally provided by the consumer also after a contract was terminated . the consumer should nevertheless be entitled to retrieve such content upon termination of the contract .


### if any provision of this directive conflicts with a provision of another union act governing a specific sector or subject matter , the provision of that other union act shall take precedence over this directive . ### if any provision of this directive conflicts with a provision of another union act , the provision of that other union act shall take precedence over this directive .


### be updated as stipulated by the contract . ### be updated as stipulated by the contract or as necessary to guarantee the characteristics provided for in points and , in particular continuity and security .


### where relevant , any existing international technical standards or , in the absence of such technical standards , applicable industry codes of conduct and good practices ; and ### any existing international technical standards or , in the absence of such technical standards , applicable industry codes of conduct and good practices ; and


### in the case of a lack of conformity with the contract , the consumer shall be entitled to have the digital content brought into conformity with the contract free of charge , unless this is impossible , disproportionate or unlawful . ### where the supplier has failed to supply the digital content in accordance with article 5 or in the case of a lack of conformity with the contract , the consumer shall be entitled to either a proportionate reduction of the price in the manner set out in paragraph 4 where the digital content is supplied in exchange for a payment of a price , terminate the contract immediately under article 13 or have the digital content brought into conformity with the contract free of charge in accordance with paragraph 2 . the consumer may choose between the remedies presented in this article , unless the option chosen would be impossible or unlawful .


### the supplier shall bring the digital content in conformity with the contract pursuant to paragraph 1 within a reasonable time from the time the supplier has been informed by the consumer about the lack of conformity with the contract and without any significant inconvenience to the consumer , taking account of the nature of digital content and the purpose for which the consumer required this digital content . ### if the consumer has chosen to have the digital content brought into conformity , the supplier shall bring the digital content in conformity with the contract pursuant to paragraph 1 within a reasonable time from the time the supplier has been informed by the consumer about the lack of conformity with the contract and without any significant inconvenience to the consumer , taking account of the nature of digital content and the purpose for which the consumer required this digital content . where this does not happen , the consumer may choose another remedy .


### where the contract provides that the digital content shall be supplied over the period of time stipulated in the contract , the supplier may alter functionality , interoperability and other main performance features of the digital content such as its accessibility , continuity and security , to the extent those alternations adversely affect access to or use of the digital content by the consumer , only if : ### where the contract provides that the digital content shall be supplied over the period of time stipulated in the contract , the supplier may alter functionality , interoperability and other main performance features of the digital content such as its accessibility , continuity and security , to the extent those alternations adversely affect access to or use of the digital content by the consumer , only if such alteration is necessary for the security of content in line with best practices or if all the following criteria apply :


### where the supplier is liable to the consumer because of any failure to supply the digital content or a lack of conformity with the contract resulting from an act or omission by a person in earlier links of the chain of transactions , the supplier shall be entitled to pursue remedies against the person or persons liable in the chain of transactions . the person against whom the supplier may pursue remedies and the relevant actions and conditions of exercise , shall be determined by national law . ### where the supplier is liable to the consumer because of any failure to supply the digital content or a lack of conformity with the contract resulting from an act or omission by a person in earlier links of the chain of transactions , the supplier shall be entitled to pursue remedies against the person or persons liable in the chain of financial transactions . the person against whom the supplier may pursue remedies and the relevant actions and conditions of exercise , shall be determined by national law .


### persons who work for an organisation or are in contact with it in the context of their work - related activities are often the first to know about threats or harm to the public interest which arise in this context . by ' blowing the whistle ' they play a key role in exposing and preventing breaches of the law and in safeguarding the welfare of society . however , potential whistleblowers are often discouraged from reporting their concerns or suspicions for fear of retaliation . ### persons who work for an organisation or are in contact with it in the context of their work - related activities are often the first to know about threats or harm to the public interest which arise in this context . the purpose of this directive is to create a climate of trust that enables whistleblowers to report observed or suspected breaches of law , wrongdoing and threats to the public interest . &#160 ; by ' blowing the whistle ' they play a key role in exposing and preventing breaches of the law and in safeguarding the welfare of society . however , potential whistleblowers are often discouraged from reporting their concerns or suspicions for fear of retaliation .


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


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


### evidence - gathering , detecting and addressing environmental crimes and unlawful conduct against the protection of the environment remain a challenge and need to be reinforced as acknowledged in the commission communication ' eu actions to improve environmental compliance and governance ' of 18 january 201840 . whilst whistleblower protection rules exist at present only in one sectorial instrument on environmental protection41 , the introduction of such protection appears necessary to ensure effective enforcement of the union environmental acquis , whose breaches can cause serious harm to the public interest with possible spill - over impacts across national borders . this is also relevant in cases where unsafe products can cause environmental harm . _________________ 40 com 10 final . 41 directive 2013 / 30 / eu of the european parliament and of the council , of 12 june 2013 , on safety of offshore oil and gas operations . ### evidence - gathering , preventing , detecting and addressing environmental crimes and unlawful conduct or omissions as well as potential breaches against the protection of the environment remain a challenge and need to be reinforced as acknowledged in the commission communication ' eu actions to improve environmental compliance and governance ' of 18 january 201840 . whilst whistleblower protection rules exist at present only in one sectorial instrument on environmental protection41 , the introduction of such protection is necessary to ensure effective enforcement of the union environmental acquis , whose breaches can cause serious harm to the public interest with possible spill - over impacts across national borders . this is also relevant in cases where unsafe products can cause environmental harm . _________________ 40 com 10 final . 41 directive 2013 / 30 / eu of the european parliament and of the council , of 12 june 2013 , on safety of offshore oil and gas operations .


### the protection of privacy and personal data is another area where whistleblowers are in a privileged position to disclose breaches of union law which can seriously harm the public interest . similar considerations apply for breaches of the directive on the security of network and information systems45 , which introduces notification of incidents and security requirements for entities providing essential services across many sectors and providers of key digital services . whistleblowers ' reporting in this area is particularly valuable to prevent security incidents that would affect key economic and social activities and widely used digital services . it helps ensuring the continuity of services which are essential for the functioning of the internal market and the wellbeing of society . _________________ 45 directive 2016 / 1148 of the european parliament and of the council of 6 july 2016 concerning measures for a high common level of security of network and information systems across the union . ### the protection of privacy and personal data is another area where whistleblowers are in a privileged position to disclose breaches of union law which can harm the public interest . similar considerations apply for breaches of the directive on the security of network and information systems45 , which introduces notification of incidents and security requirements for entities providing essential services across many sectors and providers of key digital services . whistleblowers ' reporting in this area is particularly valuable to prevent security incidents that would affect key economic and social activities and widely used digital services . it helps ensuring the continuity of services which are essential for the functioning of the internal market and the wellbeing of society . _________________ 45 directive 2016 / 1148 of the european parliament and of the council of 6 july 2016 concerning measures for a high common level of security of network and information systems across the union .


### this directive should be without prejudice to the protection afforded to employees when reporting on breaches of union employment law . in particular , in the area of occupational safety and health , article 11 of framework directive 89 / 391 / eec already requires member states to ensure that workers or workers ' representatives shall not be placed at a disadvantage because of their requests or proposals to employers to take appropriate measures to mitigate hazards for workers and / or to remove sources of danger . workers and their representatives are entitled to raise issues with the competent national authorities if they consider that the measures taken and the means employed by the employer are inadequate for the purposes of ensuring safety and health . ### this directive is a complement to the protection afforded to employees when reporting on breaches of union employment law . in particular , in the area of occupational safety and health , article 11 of framework directive 89 / 391 / eec already requires member states to ensure that workers or workers ' representatives shall not be placed at a disadvantage because of their requests or proposals to employers to take appropriate measures to mitigate hazards for workers and / or to remove sources of danger . workers and their representatives are entitled to raise issues with the competent national authorities if they consider that the measures taken and the means employed by the employer are inadequate for the purposes of ensuring safety and health .


### this directive should be without prejudice to the protection of national security and other classified information which union law or the laws , regulations or administrative provisions in force in the member state concerned require , for security reasons , to be protected from unauthorised access . in particular , moreover , the provision of this directive should not affect the obligations arising from commission decision 2015 / 444 of 13 march 2015 on the security rules for protecting eu classified information or council decision of 23 september 2013 on the security rules for protecting eu classified information . ### this directive should be without prejudice to the protection of national security and other classified information which union law or the laws , regulations or administrative provisions in force in the member state concerned require , for security reasons , to be protected from unauthorised access . in particular , the provision of this directive should be read together with the obligations arising from commission decision 2015 / 444 of 13 march 2015 on the security rules for protecting eu classified information or council decision of 23 september 2013 on the security rules for protecting eu classified information .


### effective whistleblower protection implies protecting also further categories of persons who , whilst not relying on their work - related activities economically , may nevertheless suffer retaliation for exposing breaches . retaliation against volunteers and unpaid trainees may take the form of no longer making use of their services , or of giving a negative reference for future employment or otherwise damaging their reputation . ### effective whistleblower protection implies protecting also further categories of persons who , whilst not relying on their work - related activities economically , may nevertheless suffer retaliation for exposing breaches . retaliation against volunteers and unpaid trainees may take the form of no longer making use of their services , or of giving a negative reference for future employment or otherwise damaging their reputation . retaliation against investigators or reporters could take the form of strategic litigation suits , for example regarding libel or defamation .


### this directive introduces minimum standards and member states should have the power to introduce or maintain more favourable provisions to the reporting person , provided that such provisions do not interfere with the measures for the protection of concerned persons . ### this directive introduces minimum standards and member states should have the power and be encouraged to introduce or maintain more favourable provisions to the reporting person , provided that such provisions do not interfere with the measures for the protection of concerned persons .


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


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


### breaches falling within the scope of the union acts set out in the annex as regards the following areas : ### breaches falling within the scope of the union acts , including but not limited to the following areas :


### breaches of articles 101 , 102 , 106 , 107 and 108 tfeu and breaches falling within the scope of council regulation no 1 / 2003 and council regulation no 2015 / 1589 ; ### competition law , especially breaches of articles 101 , 102 , 106 , 107 and 108 tfeu and breaches falling within the scope of council regulation no 1 / 2003 and council regulation no 2015 / 1589 ;


### breaches relating to the internal market , as referred to in article 26 tfeu , as regards acts which breach the rules of corporate tax or arrangements whose purpose is to obtain a tax advantage that defeats the object or purpose of the applicable corporate tax law . ### breaches relating to the internal market , as referred to in article 26 tfeu , particularly as regards acts which breach the rules of corporate tax or arrangements whose purpose is to obtain a tax advantage that defeats the object or purpose of the applicable corporate tax law .


### where specific rules on the reporting of breaches are provided for in sector - specific union acts listed in part 2 of the annex , those rules shall apply . the provisions of this directive shall be applicable for all matters relating to the protection of reporting persons not regulated in those sector - specific union acts . ### where specific rules on the reporting of breaches are provided for in sector - specific union acts listed in part 2 of the annex , those rules shall apply . the provisions of this directive shall be applicable for all matters relating to the protection of reporting persons not regulated in those sector - specific union acts . this paragraph shall apply only in cases where the protection foreseen in sector - specific acts is higher than the one guaranteed by this directive .


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


### any persons working under the supervision and direction of contractors , subcontractors and suppliers . ### any persons working under the supervision and direction of contractors , subcontractors , service providers and suppliers .


### this directive shall also apply to reporting persons whose work - based relationship is yet to begin in cases where information concerning a breach has been acquired during the recruitment process or other pre - contractual negotiation . ### this directive shall also apply to reporting persons whose work - based relationship is yet to begin in cases where information concerning a breach has been acquired during the recruitment process or other pre - contractual negotiation and to work - based relationships that have terminated .


### ' breaches ' means actual or potential unlawful activities or abuse of law relating to the union acts and areas falling within the scope referred to in article 1 and in the annex ; ### ' breaches ' means actual or potential unlawful activities , omissions or abuse of law relating to the union acts , notably in areas falling within the scope referred to in article&#160 ; 1 ;


### ‘ abuse of law’ means acts or omissions falling within the scope of union law which do not appear to be unlawful in formal terms but defeat the object or the purpose pursued by the applicable rules ; ### ‘ abuse of law’ means acts or omissions falling within the scope of union law which do not appear to be unlawful in formal terms but defeat the object or the purpose pursued by the applicable rules or represent a danger or a potential danger to the public interest ;


### ‘ information on breaches’ means evidence about actual breaches as well as reasonable suspicions about potential breaches which have not yet materialised ; ### ‘ information on breaches’ means information about actual breaches as well as suspicions about potential breaches which have not yet materialised ;


### ‘ report’ means the provision of information relating to a breach which has occurred or is likely to occur in the organisation at which the reporting person works or has worked or in another organisation with which he or she is or was in contact through his or her work ; ### ‘ report’ means the provision of information relating to a breach which has occurred or is likely to occur and / or in the event of a serious , imminent threat or where there is a risk of irreversible damage to the environment and / or public health ;


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


### ‘ retaliation’ means any threatened or actual act or omission prompted by the internal or external reporting which occurs in a work - related context and causes or may cause unjustified detriment to the reporting person ; ### ‘ retaliation’ means any threatened or actual act or omission prompted by the internal , external reporting or disclosure and which causes or may cause unjustified detriment to the reporting person , suspected reporting person or their family members , relatives and facilitators ;


### ‘ follow - up’ means any action taken by the recipient of the report , made internally or externally , to assess the accuracy of the allegations made in the report and , where relevant , to address the breach reported , including actions such as internal enquiry , investigation , prosecution , action for recovery of funds and closure ; ### ‘ follow - up’ means any action taken by the recipient of the report , made internally or externally , to assess the accuracy of the allegations made in the report and , where relevant , to address the breach reported , including actions such as internal enquiry , investigation , prosecution , action for recovery of funds and closure as well as any other appropriate remedial or mitigation action ;


### ‘ competent authority’ means any national authority entitled to receive reports in accordance with chapter iii and designated to carry out the duties provided for in this directive , in particular as regards the follow up of reports . ### ‘ competent authority’ means any legally responsible union or member state authority entitled to receive reports in accordance with chapter iii and designated to carry out the duties provided for in this directive , in particular as regards the follow up of reports .


### such channels and procedures shall allow for reporting by employees of the entity . they may allow for reporting by other persons who are in contact with the entity in the context of their work - related activities , referred to in article 2 , and , but the use of internal channels for reporting shall not be mandatory for these categories of persons . ### such channels and procedures shall allow for reporting by employees of the entity . they shall allow for reporting by other persons who are in contact with the entity in the context of their work - related activities , referred to in article 2 , and .


### private legal entities with an annual business turnover or annual balance sheet ### private legal entities with an annual business or group turnover or annual balance sheet


### channels for receiving the reports which are designed , set up and operated in a manner that ensures the confidentiality of the identity of the reporting person and prevents access to non - authorised staff members ; ### channels for receiving the reports which are designed , set up and operated in a manner that ensures an acknowledgement of the receipt of a report , that ensures the confidentiality or anonymity of the identity of the reporting person and prevents access to non - authorised staff members ;


### a reasonable timeframe , not exceeding three months following the report , to provide feedback to the reporting person about the follow - up to the report ; ### a reasonable timeframe , not exceeding 30 days following the report to provide feedback to the reporting person about the follow - up to the report ;


### written reports in electronic or paper format and / or oral report through telephone lines , whether recorded or unrecorded ; ### written reports in electronic or paper format and / or oral report through telephone lines , whether recorded or unrecorded ; in case the phone conversation is recorded , the prior consent of the reporting person is necessary ;


### physical meetings with the person or department designated to receive reports . ### physical meetings with the person or department designated to receive reports accompanied , if the reporting person requests it , by a union representative , by a representative of civil society or his / her legal representative ;


### establish independent and autonomous external reporting channels , which are both secure and ensure confidentiality , for receiving and handling information provided by the reporting person ; ### establish independent and autonomous external reporting channels , which are both secure and ensure confidentiality , for receiving and handling information provided by the reporting person and allow for anonymous reporting ;


### give feedback to the reporting person about the follow - up of the report within a reasonable timeframe not exceeding three months or six months in duly justified cases ; ### acknowledge receipt of the report , give feedback to the reporting person about the follow - up of the report within a reasonable timeframe not exceeding two months ;


### member states shall ensure that any authority which has received a report but does not have the competence to address the breach reported transmits it to the competent authority and that the reporting person is informed . ### member states shall ensure that any authority which has received a report but does not have the competence to address the breach reported transmits it to the competent authority and that the reporting person is informed . member states shall ensure that competent authorities receiving reports they do not have competence to address have clear procedures for handling all disclosed information securely with due regard to confidentiality or anonymity .


### physical meeting with dedicated staff members of the competent authority . ### physical meeting with dedicated staff members of the competent authority accompanied , if the reporting person requests it , by a union representative , by a representative of civil society or his / her legal representative .


### member states shall ensure that competent authorities have staff members dedicated to handling reports . dedicated staff members shall receive specific training for the purposes of handling reports . ### member states shall ensure that competent authorities have an adequate number of competent&#160 ; staff members dedicated to handling reports . dedicated staff members shall receive specific training for the purposes of handling reports .


### a reporting person shall qualify for protection under this directive provided he or she has reasonable grounds to believe that the information reported was true at the time of reporting and that this information falls within the scope of this directive . ### a reporting person shall qualify for protection under this directive provided he or she has reasonable grounds to believe that the information reported was true at the time of reporting and that this information falls within the scope of this directive regardless of the reporting channel chosen .


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


### breach the duty of maintaining the confidentiality of the identity of reporting persons . ### breach the duty of maintaining the confidentiality or the anonymity of the identity of reporting persons .


### given the mobility of perpetrators and proceeds stemming from criminal activities , as well as the complex cross - border investigations required to combat money laundering , all member states should establish their jurisdiction in order to enable the competent authorities to investigate and prosecute such activities . member states should thereby ensure that their jurisdiction includes situations where an offence is committed by means of information and communication technology from their territory , whether or not based in their territory . ### given the mobility of perpetrators and proceeds stemming from criminal activities , as well as the complex cross - border investigations required to combat money laundering , all member states should establish their jurisdiction in order to enable the competent authorities to investigate and prosecute such activities . member states should thereby ensure that their jurisdiction includes situations where an offence is committed by means of information and communication technology from their territory , whether or not based in their territory . under the international human rights law concept of jurisdiction , states that are contracting parties to human rights treaties are obliged to secure the rights for individuals falling within their jurisdiction , even if such individuals are outside their territory .


### the advanced digital technologies supported by this programme , such as high performance computing , cybersecurity and artificial intelligence are now sufficiently mature to move beyond the research arena and be deployed , implemented and scaled - up at union level . just as the deployment of these technologies require a union response so does the skills dimension . training opportunities in advanced digital skills need to be scaled up , increased and made accessible throughout the eu . failing this could impede the smooth deployment of advanced digital technologies and hamper the overall competitiveness of union’s economy . the actions supported by this programme are complementary to those supported by the esf , erdf and horizon europe programmes . ### the advanced digital technologies supported by this programme , such as high performance computing , cybersecurity , data protection and artificial intelligence are now sufficiently mature to move beyond the research arena and be deployed , implemented and scaled - up at union level . just as the deployment of these technologies require a union response so does the skills dimension . training opportunities in advanced digital skills need to be scaled up , increased and made accessible throughout the eu . failing this could impede the smooth deployment of advanced digital technologies and hamper the overall competitiveness of union’s economy . the actions supported by this programme are complementary to those supported by the esf , erdf and horizon europe programmes .


### reflecting the importance of tackling climate change in line with the union’s commitments to implement the paris agreement and the united nations sustainable development goals , this programme will contribute to mainstream climate actions and lead to the achievement of an overall target of 25% of the eu budget expenditures supporting climate objectives74 . relevant actions will be identified during the programme’s preparation and implementation , and reassessed in the context of the relevant evaluations and review processes . _________________ 74 com 321 final , page 1 ### reflecting the importance of tackling climate change in line with the union’s commitments to implement the paris agreement and the united nations sustainable development goals , this programme shall contribute to mainstream climate actions and lead to the achievement of an overall target of 25% of the eu budget expenditures supporting climate objectives74 . relevant actions shall be identified during the programme’s preparation and implementation by way of optimizing output of climate investment , and reassessed in the context of the relevant evaluations and review processes . _________________ 74 com 321 final , page 1


### build up and strengthen core artificial intelligence capacities in the union , including data resources and libraries of algorithms in compliance with data protection legislation ; ### build up and strengthen ethical core artificial intelligence capacities in the union , including secure data resources and libraries of algorithms in compliance with the general data protection regulation including the principles of security and privacy by design ;


### make those capacities accessible to all businesses and public administrations ; ### make those capacities accessible to businesses and public administrations ;


### reinforce and network existing artificial intelligence testing and experimentation facilities in member states ; ### reinforce and network existing ethical artificial intelligence testing and experimentation facilities in member states ;


### support , together with member states , the procurement of advanced cybersecurity equipment , tools and data infrastructures in full compliance with data protection legislation ; ### support , together with member states , the procurement of advanced cybersecurity equipment , tools and data infrastructures in order to achieve a common high level of cybersecurity at the european level , in full compliance with data protection legislation and the fundamental rights ;


### support the best use of european knowledge , capacity and skills related to cybersecurity ; ### support the best use and the increase of european knowledge , capacity and skills related to cybersecurity ;


### support the design and delivery of long - term trainings and courses for students , it professionals and the workforce ; ### support the design and delivery of more long - term and requalification trainings and courses for students , the workforce , it professionals , researchers and academics ;


### support the design and delivery of short - term trainings and courses for entrepreneurs , small business leaders and the workforce ; ### support the design and delivery of short - term trainings and courses for the workforce and entrepreneurs , including small business leaders and innovators ;


### support on - the - job trainings and traineeships for students , young entrepreneurs and graduates . ### support on - the - job trainings and traineeships for students , workforce and entrepreneurs and graduates .


### deploy , operate and maintain trans - european interoperable digital service infrastructures in complementarity with national and regional actions ; ### deploy , operate and maintain trans - european interoperable state of the art digital service infrastructures in complementarity with national and regional actions ;


### facilitate the development , update and use of solutions and frameworks by european public administrations , businesses and citizens , including the re - use of interoperability solutions and frameworks ; ### facilitate the development , update and use of solutions and frameworks by european public administrations , businesses and citizens , including open source and the re - use of interoperability solutions and frameworks ;


### support cooperation towards achieving a european ecosystem for trusted infrastructures using distributed ledger services and applications , including support for interoperability and standardisation and fostering the deployment of eu cross - border applications ; ### support cooperation towards achieving a european ecosystem for trusted infrastructures , including support for interoperability and standardisation and fostering the deployment of eu cross - border applications ;


### for the purpose of the establishment of the network mentioned in paragraph 1 , each member state shall designate candidate entities through an open and competitive process , on the basis of the following criteria : ### for the purpose of the establishment of the network mentioned in paragraph 1 , each member state shall designate candidate entities based on harmonised rules , through an open and competitive process , on the basis of the following criteria :


### where applicable , the economic , social , climate and environmental impact , and accessibility ; ### where applicable , the economic , social , climate and environmental impact , gender balance opportunities and accessibility ;


### creation of common european data spaces that aggregate public information across europe and become a data input source for ai solutions . the spaces would also be open to public and private sector . for increased usage , data within a space should be made interoperable as much as possible , both in the interactions between public and private sectors , within sectors and across sectors . ### creation of common european data spaces that aggregate public information across europe and become a data input source for ai solutions . the spaces would also be open to public and private sector . for increased usage , data within a space should be made interoperable as much as possible through use of open formats and open standards , both in the interactions between public and private sectors , within sectors and across sectors .


### development of common european libraries of algorithms that would be accessible to all . companies and public sector would be able to identify and acquire whichever solution would work best for their needs . ### development of common european libraries of algorithms that are open source and would be accessible to all . companies and public sector would be able to identify and acquire whichever solution would work best for their needs .


### co - investment with member states in world class reference sites for experimentation and testing in real setting focusing on the applications of ai in essential sectors such as health , earth / environment monitoring , mobility , security , manufacturing or finance , as well as in other areas of public interest . the sites should be open to all actors across europe and connected to the network of digital innovation hubs . they should be equipped with large computing and data handling facilities as well as latest ai technologies including emerging areas such as neuromorphic computing , deep learning and robotics . ### co - investment with member states in world class reference sites for experimentation and testing in real setting focusing on the applications of ai in essential sectors such as health , earth / environment monitoring , mobility , security , manufacturing or finance , as well as in other areas of public interest . the sites should be open to all actors across europe and connected to the network of digital innovation hubs . they should be equipped with large computing and data handling facilities as well as latest ai technologies including emerging areas such as ethics , neuromorphic computing , deep learning and robotics .


### responsibility for security of gas supply should be shared by natural gas undertakings , member states , acting through their competent authorities ; and the commission , within their respective remits . such shared responsibility requires very close cooperation between these parties . however , customers using gas for electricity generation or industrial purposes may also have an important role to play in security of gas supply , as they can respond to a crisis by taking demand - side measures such as interruptible contracts and fuel switching , which have an immediate impact on the supply / demand balance . ### responsibility for security of gas supply should be shared by natural gas undertakings , member states , acting through their competent authorities ; and the commission , within their respective remits . such shared responsibility requires very close cooperation between these parties . however , customers using gas for electricity generation or industrial purposes may also have an important role to play in security of gas supply , as they can respond to a crisis by taking demand - side measures such as energy efficiency , interruptible contracts and fuel switching , which have an immediate impact on the supply / demand balance .


### when conducting a comprehensive risk assessment to be prepared at regional level , competent authorities should assess natural , technological , commercial , financial , social , political and market - related risks , and any other relevant ones , including , where appropriate , the disruption of the supplies from the single largest supplier . all risks should be addressed by effective , proportionate and non - discriminatory measures to be developed in the preventive action plan and the emergency plan . the results of the risk assessments should also contribute to the all hazard risk assessments foreseen under article 6 of decision no 1313 / 2013 / eu18 . __________________ 18 decision no 1313 / 2013 / eu of the european parliament and of the council of 17 december 2013 on a union civil protection mechanism . ### when conducting a comprehensive risk assessment to be prepared at regional level , competent authorities should assess natural , technological , commercial , financial , social , political , geopolitical , environmental , climate and market - related risks , and any other relevant ones , including gas consumption trends , energy efficiency policies and , where appropriate , the disruption of the supplies from the single largest supplier . all risks should be addressed by effective , proportionate and non - discriminatory measures to be developed in the preventive action plan and the emergency plan , and include measures on the gas demand side as well as on the gas supply side . the impacts of gas on climate change require a clear timeline and strategy to phase out its use by 2050 , which should be integrated in the preventive action plan . the results of the risk assessments should also contribute to the all hazard risk assessments foreseen under article 6 of decision no 1313 / 2013 / eu18 . __________________ 18 decision no 1313 / 2013 / eu of the european parliament and of the council of 17 december 2013 on a union civil protection mechanism .


### in the event of a supply crisis , market players should be given sufficient opportunity to respond to the situation with market - based measures . where market measures have been exhausted and they are still insufficient , member states and their competent authorities should take measures to remove or mitigate the effects of the supply crisis . ### in the event of a supply crisis , market players should be given sufficient opportunity to respond to the situation with market - based measures . where market measures have been exhausted and they are still insufficient , member states and their competent authorities should take measures to remove or mitigate the effects of the supply crisis . energy efficiency measures should be prioritized to reduce gas and electricity demand and provide a long - term and sustainable improvement of member states ' resilience against supply crisis .


### in march 2015 , the european council concluded that gas supply contracts with suppliers from third countries should be made more transparent and compatible with the union energy security provisions . in this context an efficient and targeted mechanism for member states ' access to key gas supply contracts should ensure a comprehensive assessment of relevant risks that can lead to a supply disruption or interfere with the necessary mitigating measures should a crisis nevertheless occur . under that mechanism certain key gas supply contracts should be automatically notified , immediately after their conclusion , to the member states . however , any obligation to notify a contract automatically needs to be proportionate . applying this obligation to contracts between a supplier and a buyer covering 40% of the national market strikes the right balance in terms of administrative efficiency and lays down clear obligations for market participants . this does not mean that other gas supply contracts are not relevant to security of supply . accordingly , member states should have the right to request other contracts which might negatively affect security of supply of a member state or region or of the union as a whole . the commission should have the same access to the gas supply contracts as member states , given its role in assessing the consistency and effectiveness of the preventive action plans and emergency plans to address risks to security of supply at national , regional and eu level . the commission may call on the member states to amend the plans so as to take account of the information obtained from the contracts . the confidentiality of commercially sensitive information should be ensured . improved commission access to information on commercial contracts should not affect the commission ' s ongoing efforts to monitor the gas market , and the commission should intervene if violations of the union law are identified . the provisions of this regulation should be without prejudice to the right of the commission to launch infringement proceedings in accordance with article 258 of the treaty on the functioning of the european union and to enforce competition rules , including state aid , . ### in march 2015 , the european council concluded that gas supply contracts with suppliers from third countries should be made more transparent and compatible with the union energy security provisions . in this context an efficient and targeted mechanism for member states ' access to key gas supply contracts should ensure a comprehensive assessment of relevant risks that can lead to a supply disruption or interfere with the necessary mitigating measures should a crisis nevertheless occur . under that mechanism certain key gas supply contracts should be automatically notified , immediately after their conclusion , to the member states . however , any obligation to notify a contract automatically needs to be proportionate . applying this obligation to contracts between a supplier and a buyer covering 25% of the national market strikes the right balance in terms of administrative efficiency and lays down clear obligations for market participants . the commission should have the same access to the key gas supply contracts as member states , given its role in assessing the consistency and effectiveness of these contracts with the union ' s energy and climate objectives and related legislation as well as of the preventive action plans and emergency plans to address risks to security of supply at national , regional and eu level . the commission may call on the member states to amend the plans so as to take account of the information obtained from the contracts . the confidentiality of commercially sensitive information should be ensured . improved commission access to information on commercial contracts should not affect the commission ' s ongoing efforts to monitor the gas market , and the commission should intervene if violations of the union law are identified . the provisions of this regulation should be without prejudice to the right of the commission to launch infringement proceedings in accordance with article 258 of the treaty on the functioning of the european union and to enforce competition rules , including state aid .


### one of the union goals is to strengthen the energy community that would ensure effective implementation of the union energy acquis , energy market reforms and incentivising investments in the energy sector by closer integration of the union and energy community energy markets . this entails also introducing common crisis management by proposing preventive and emergency plans at the regional level including the energy community contracting parties . furthermore , the commission communication on the short term resilience of the european gas system from october 2014 refers to the need to apply internal energy market rules on the flow of energy between the union member states and the energy community contracting parties . in this regard , in order to ensure an efficient crisis management on borders between the union member states and the contracting parties , the necessary arrangements following the adoption of a joint act should be set so that specific cooperation with any individual energy community contracting party can take place once the required mutual provisions have been duly put into place . . ### one of the union goals is to strengthen a climate - friendly energy community that would ensure effective implementation of the union energy acquis , energy market reforms and incentivising investments in the renewable energy sector , including investments on the energy demand side , in the form of energy efficiency improvements , by closer integration of the union and energy community energy markets . this entails also introducing common crisis management by proposing preventive and emergency plans at the regional level including the energy community contracting parties . furthermore , the commission communication on the short term resilience of the european gas system from october 2014 refers to the need to apply internal energy market rules on the flow of energy between the union member states and the energy community contracting parties . in this regard , in order to ensure an efficient crisis management on borders between the union member states and the contracting parties , the necessary arrangements following the adoption of a joint act should be set so that specific cooperation with any individual energy community contracting party can take place once the required mutual provisions have been duly put into place .


### this regulation establishes provisions aimed at safeguarding the security of gas supply by ensuring the proper and continuous functioning of the internal market in natural gas , by allowing for exceptional measures to be implemented when the market can no longer deliver the required gas supplies and by providing for a clear definition and attribution of responsibilities among natural gas undertakings , the member states and the union regarding both preventive action and the reaction to concrete disruptions of supply . this regulation also provides transparent mechanisms , in a spirit of solidarity , for the coordination of planning for , and response to , an emergency at member state , regional and union levels . ### this regulation establishes provisions aimed at safeguarding the security of gas supply by ensuring the proper and continuous functioning of the internal market in natural gas , based on credible gas demand ' s trends , by allowing for exceptional measures to be implemented when the market can no longer deliver the required gas supplies to the protected customers and by providing for a clear definition and attribution of responsibilities among natural gas undertakings , the member states and the union regarding both short term preventive action and the immediate reaction to concrete disruptions of supply . this regulation also provides transparent mechanisms , in a spirit of solidarity , for the coordination of planning for , and response to , an emergency at member state , regional and union levels .


### security of gas supply shall be a shared responsibility of natural gas undertakings , member states , notably through their competent authorities , and the commission , within their respective areas of activities and competence . ### long - term and sustainable energy security shall be under the responsibility of member states and the commission . they shall ensure that any new measure is coherent with the eu ' s energy and climate objectives and strategies . security of gas supply shall be a shared responsibility of natural gas undertakings , member states , notably through their competent authorities , and the commission , within their respective areas of activities and competence .


### each member state or , where a member state so provides , the competent authority shall ensure that the necessary measures are taken so that in the event of a disruption of the single largest gas infrastructure , the technical capacity of the remaining infrastructure , determined according to the n &#8211 ; 1 formula as provided in point 2 of annex ii , is able , without prejudice to paragraph 2 of this article , to satisfy total gas demand of the calculated area during a day of exceptionally high gas demand occurring with a statistical probability of once in 20 years . this is without prejudice to the responsibility of system operators to make the corresponding investments and to the obligations of transmission system operators as laid down in directive 2009 / 73 / ec and regulation no 715 / 2009 . ### each member state or , where a member state so provides , the competent authority shall ensure that the necessary measures are taken so that in the event of a disruption of the single largest gas infrastructure , the technical capacity of the remaining infrastructure , determined according to the n &#8211 ; 1 formula as provided in point 2 of annex ii , is able , without prejudice to paragraph 2 of this article , to satisfy , based on reliable gas consumption ' s trends , long - term impacts of energy efficiency measures on this demand , and utilisation rates of existing capacities , total gas demand of the area during a day of exceptionally high gas demand occurring with a statistical probability of once in 20 years . this is without prejudice to the responsibility of system operators to make the corresponding investments and to the obligations of transmission system operators as laid down in directive 2009 / 73 / ec and regulation no 715 / 2009 . however , each member state ' s competent authority shall not to promote any new gas infrastructure until all less stringent alternatives have been assessed .


### national regulatory authorities shall take into account the efficiently incurred costs of fulfilling the obligation set out in paragraph 1 and the costs of enabling permanent bi - directional capacity so as to grant appropriate incentives when fixing or approving , in a transparent and detailed manner , the tariffs or methodologies in accordance with article 41 of directive 2009 / 73 / ec and article 13 of regulation no 715 / 2009 . ### national regulatory authorities shall take into account the efficiently incurred costs and volumes necessary for fulfilling the obligation set out in paragraph 1 , including how energy efficiency measures to reduce gas demand may contribute to the most cost - effective approach to fulfilling the n - 1 formula , and the costs of enabling permanent bi - directional capacity so as to grant appropriate incentives when fixing or approving , in a transparent and detailed manner , the tariffs or methodologies in accordance with article 41 of directive 2009 / 73 / ec and article 13 of regulation no 715 / 2009 .


### the competent authority shall require the natural gas undertakings , that it identifies , to take measures to ensure the supply of gas to the protected customers of the member state in each of the following cases : ### the competent authority shall require the natural gas undertakings , that it identifies , to take measures to ensure that the supply of energy necessary for the comfort , security and health of protected customers of the member state is maintained in each of the following cases :


### member states may comply with the obligation laid down in the first subparagraph by replacing the gas with different source of energy to the extent that the same level of protection is achieved . ### member states may comply with the obligation laid down in the first subparagraph by measures that will reduce the energy consumption or by replacing the gas with different source of energy , in particular biogas and other renewable energy sources , to the extent that the same level of protection is achieved .


### the competent authorities of each region as listed in annex i shall jointly make an assessment at regional level of all risks affecting the security of gas supply . the assessment shall take into account all relevant risks such as natural disasters , technological , commercial , social , political and other risks . the risk assessment shall be carried out by : ### the competent authorities , in cooperation with the national regulatory authorities where they are not the competent authorities , of each region as listed in annex i shall jointly make an assessment at regional level of all possible risks affecting the security of gas supply . the assessment shall take into account all relevant and possible risks such as natural disasters , technological , climate , commercial , social , political and other risks , while taking in consideration gas demand in europe , its long - term consumption trend , the impacts of efficiency measures and deployment of renewable energy sources on that demand and the utilisation rates of existing infrastructure . the risk assessment shall be carried out by :


### taking into account all relevant national and regional circumstances , in particular market size , network configuration , actual flows , including outflows from the member states concerned , the possibility of physical gas flows in both directions including the potential need for consequent reinforcement of the transmission system , the presence of production and storage and the role of gas in the energy mixes , in particular with respect to district heating and electricity generation and for the operation of industries , and safety and gas quality considerations ; ### taking into account all relevant national and regional circumstances , in particular market size , the potential for gas demand reduction through energy efficiency measures , network configuration , demand ' s trends , actual flows , including outflows from the member states concerned , the possibility of physical gas flows in both directions including the potential need for consequent reinforcement of the transmission system , the presence of production and storage , in particular the penetration of biogas into the gas grid , and the role of gas in the energy mixes , in particular with respect to heating and cooling demand in the national or regional building stock , and the district heating serving it and electricity generation and for the operation of industries , and safety and gas quality considerations ;


### running various scenarios of exceptionally high gas demand and supply disruption , taking into account the history , probability , season , frequency and duration of their occurrence and assessing their likely consequences , such as : ### running various scenarios of demand reduction resulting from energy efficiency measures , as well as exceptionally high gas demand and supply disruption , taking into account the history , probability , season , frequency and duration of their occurrence and assessing their likely consequences , such as :


### by 1 november 2017 entso for gas shall carry out a union wide simulation of supply and infrastructure disruption scenarios . the scenarios shall be defined by entso for gas in consultation with the gas coordination group . the competent authorities shall provide entso for gas with the necessary data for the simulations such as peak demand values , production capacity and demand side measures . the competent authorities shall take into account the results of the simulations for the preparation of the risk assessments , preventive action plans and emergency plans . the union - wide simulation of supply and infrastructure disruption scenarios shall be updated every four years unless circumstances warrant more frequent updates . ### the competent authorities shall provide entsos for gas and electricity with the necessary data for the union emergency simulations referred to in article 10a such as peak demand values , production capacity and demand side measures . the competent authorities shall involve the national regulatory authorities where they are not the competent authorities and shall take into account the results of the simulations for the preparation of the risk assessments , preventive action plans and emergency plans .


### the competent authorities shall adopt the necessary measures , so that gas not supplied to customers other than households , essential social services and district heating installations in their territory in the situation described in paragraph 2 can be supplied to the member state in the emergency situation described in the same paragraph for the supply to households , essential social services and district heating installations in that member state . ### the competent authorities shall adopt the necessary measures , so that gas not supplied to customers other than protected customers in their territory in the situation described in paragraph 2 can be supplied to the member state in the emergency situation described in the same paragraph for the supply to protected customers in that member state .


### in the european defence action plan , adopted on 30 november 2016 , the commission committed to complement , leverage and consolidate collaborative efforts by member states in developing defence capabilities to respond to security challenges , as well as to foster a competitive and innovative european defence industry . it proposed in particular to launch a european defence fund to support investment in joint research and the joint development of defence equipment and technologies . the fund would support cooperation during the whole cycle of defence product and technology development . ### in the european defence action plan , &#160 ; adopted on 30 november 2016 , the commission described the many&#160 ; structural problems in the european defence sector which hamper the efficient&#160 ; use of national resources for providing the defence capabilities needed for&#160 ; an effective common security and defence policy . the commission in&#160 ; particular underlines that duplications , fragmentation , and other structural&#160 ; problems have led to a sector which generates only 15% of capabilities&#160 ; compared to the same investment by the us . the highly inefficient structures&#160 ; and mechanisms , coupled with a very low rate of collaborative projects&#160 ; currently leads to a loss of an estimated 25 - 100 bn&#8364 ; annually according to&#160 ; the commission . 1a this is why in the european defence action&#160 ; plan , the commission committed to complement , leverage and&#160 ; consolidate collaborative efforts by member states in developing defence&#160 ; capabilities to respond to security challenges , as well as to foster an&#160 ; efficient european defence industry . to realise these objectives&#160 ; it is therefore at union level necessary to enhance the institutional&#160 ; framework for cooperation of member states in the defence industrial&#160 ; development sector . it proposed in particular to launch efficient&#160 ; cooperation actions that would lead to investments by the member states&#160 ; in joint research and the joint development of defence equipment and&#160 ; technologies , as well as action in the scope of conversion from military to civil&#160 ; protection . &#160 ; &#180 ; __________________&#160 ; 1a european commission , 30 november2016 , &#160 ; annex the business case for more efficient spending on defence . &#160 ;


### in order to contribute to the enhancement of the competitiveness and innovation capacity of the union ' s defence industry , a european defence industrial development programme should be established . the programme should aim at enhancing the competitiveness of the union ' s defence industry inter alia cyber defence by supporting the cooperation between undertakings in the development phase of defence products and technologies . the development phase , which follows the research and technology phase , entails significant risks and costs that hamper the further exploitation of the results of research and adversely impact the competitiveness of the union ' s defence industry . by supporting the development phase , the programme would contribute to a better exploitation of the results of defence research and it would help to cover the gap between research and production as well as to promote all forms of innovation . the programme should complement activities carried out in accordance with article 182 tfeu and it does not cover the production of defence products and technologies . ### in order to contribute to the efficiency of the union ' s defence industry , a european defence industrial development cooperation programme should be established jointly by the member states and the commission . the programme should consist of a cooperation mechanism between member states and the commission , and address the development phase of defence products and technologies . the development phase , which follows the research and technology phase , which entails significant risks and costs that hamper the further exploitation of the results of research . by addressing the development phase , the programme would contribute to a better exploitation of the results of defence research and it would help to cover the gap between research and production as well as to promote all forms of innovation . the programme should complement activities carried out in accordance with article 182 tfeu and it does not cover the production of defence products and technologies .


### as the objective of the programme is to support the competitiveness of the union defence industry by de - risking the development phase of cooperative projects , actions related to the development of a defence product or technology , namely definition of common technical specifications , design , prototyping , testing , qualification , certification as well feasibility studies and other supporting measures , should be eligible to benefit from it . this will also apply to the upgrade of existing defence products and technologies . ### as the objective of the programme is to increase the level of efficiency of cooperation between member states and de - risking the development phase of cooperative projects , actions related to the development of a defence product or technology , namely definition of common technical specifications , design , prototyping , testing , qualification , certification should be considered under the programme . this will also apply to the upgrade of existing defence products and technologies .


### the promotion of innovation and technological development in the union defence industry should take place in a manner coherent with the security interests of the union . accordingly , the action ' s contribution to those interests and to the defence capability priorities commonly agreed by member states should serve as an award criterion . within the union , common defence capability priorities are identified notably through the capability development plan . other union processes such as the coordinated annual review on defence and the permanent structured cooperation will support the implementation of relevant priorities through enhanced cooperation . where appropriate regional or international cooperative initiatives , such as in the nato context , and serving the union security and defence interest , may also be taken into account . ### the promotion of innovation and technological development in the union defence industry should take place in a manner coherent with the security interests of the union as defined objectively within the context of the common security and defence policy . accordingly , the action ' s contribution to those interests and to the defence capability priorities commonly agreed by member states should serve as an award criterion . within the union , common defence capability priorities are identified notably through the capability development plan . other union processes such as the coordinated annual review on defence and the permanent structured cooperation will support the implementation of relevant priorities through enhanced cooperation . where appropriate regional or international cooperative initiatives , such as in the nato context , and serving the union security and defence interest , may also be taken into account .


### in order to ensure that the funded actions will contribute to the competitiveness of the european defence industry , they should be market - oriented and demand driven . therefore , the fact that member states have already committed to jointly produce and procure the final product or technology , possibly in a coordinated way , should be taken into account in the award criteria . ### in order to ensure that the actions will contribute to a higher level of efficiency of the european defence industry , they should be market - oriented and demand driven . therefore , the fact that member states have already committed to jointly produce and procure the final product or technology , possibly in a coordinated way , should be taken into account in the award criteria . in order to reduce market distortions in the defence sector , which often hamper efficient projects , it is of crucial importance to not subsidise the defence industry via the use of eu funds .


### as the union support aims at enhancing the competitiveness of the sector and concerns only the specific development phase , the commission should not have ownership or intellectual property rights over the products or technologies resulting from the funded actions . the applicable intellectual property rights regime will be defined contractually by the beneficiaries . ### as the union support aims at enhancing the efficient cooperation within the sector and concerns only the specific development phase , the commission should not have ownership or intellectual property rights over the products or technologies resulting from the actions supported . the applicable intellectual property rights regime will be defined contractually by the participants .


### the commission should establish a multiannual work programme in line with the objectives of the programme . the commission should be assisted in the establishment of the work programme by a committee of member states . in light of the union policy on small and medium enterprises as key to ensuring economic growth , innovation , job creation , and social integration in the union and the fact that the supported actions will typically require trans - national collaboration , it is of importance that the work programme will reflect and enable such cross - border participation of smes and that therefore a proportion of the overall budget will benefit such action . ### the commission should establish a multiannual work programme in line with the objectives of the programme . the commission should be assisted in the establishment of the work programme by a committee of member states . it is of importance that the work programme will reflect and enable cross - border participation of smes and that therefore a proportion of the overall budget will benefit such action .


### the commission should draw up an implementation report at the end of the programme , examining the financial activities in terms of financial implementation results and where possible , impact . this report should also analyse the cross border participation of smes in projects under the programme as well as the participation of smes to the global value chain . ### the commission should monitor implementation and draw up an interim progress report every six month and an implementation report at the end of the programme , examining the financial activities in terms of financial implementation results and where possible , impact . this report should also analyse the cross border participation of smes in projects under the programme as well as the participation of smes to the global value chain . the interim progress reports and the implementation report at the end of the programme should be presented to the european parliament .


### to foster the competitiveness and innovation capacity of the union defence industry by supporting actions in their development phase ; ### to foster efficiency gains in the&#160 ; union defence industry by member states supporting joint&#160 ; actions on union territory in their industrial development&#160 ; phase ;


### to support and leverage the cooperation between undertakings , including small and medium - sized enterprises , in the development of technologies or products in line with defence capability priorities commonly agreed by member states within the union ; ### to support and leverage the cooperation between member states and with undertakings , including small and medium - sized enterprises , in the development of technologies or products solely in line with defence capability priorities commonly agreed by member states within the union in the context of the capability development plan of the common security and defence policy ;


### the amount for the implementation of the programme for the period 2019 - 2020 is set at eur 500 million in current prices . ### actions under this programme shall be funded by the member states and where appropriate via the use of the athena mechanism . only administrative and organisational expenditure to which the development of this programme gives rise for the institutions may be charged to the union budget . the financial resources will be drawn from the existing administrative resources available to the institutions . no financing of projects under for this programme shall be drawn from existing eu programmes established under the mff .


### beneficiaries shall be undertakings established in the union , in which member states and / or nationals of member states own more than 50% of the undertaking and effectively control it within the meaning of article 6 , whether directly or indirectly through one or more intermediate undertakings . in addition , all infrastructure , facilities , assets and resources used by the participants , including subcontractors and other third parties , in actions funded under the programme shall not be located on the territory of non - member states during the entire duration of the action . ### participants in the actions foreseen by&#160 ; the programme shall be undertakings and their subcontractors&#160 ; established in the union , in which member states and / or nationals of member&#160 ; states own the undertaking and effectively control it within the meaning of&#160 ; article 6 , whether directly or indirectly through one or more intermediate&#160 ; undertakings . in addition , all infrastructure , facilities , assets and&#160 ; resources used by the participants , including subcontractors and other third&#160 ; parties , in actions foreseen under the programme shall&#160 ; not be located on the territory of non - member states during the entire&#160 ; duration of the action . the use of these infrastructures , &#160 ; facilities , assets and resources shall not be under the control of any third&#160 ; country or entity established outside of the union . &#160 ;


### where the union ' s financial assistance is provided through a grant , the members of any consortium wishing to participate in an action shall appoint one of them to act as coordinator , which shall be identified in the grant agreement . the coordinator shall be the principal point of contact between the members of the consortium in relations with the commission or the relevant funding body , unless specified otherwise in the grant agreement or in the event of non - compliance with its obligations under the grant agreement . ### where the union ' s administrative&#160 ; support is provided , the members of any consortium wishing to&#160 ; participate in an action shall appoint one of them to act as coordinator , &#160 ; which shall be identified in the agreement . the coordinator shall be the&#160 ; principal point of contact between the members of the consortium in relations&#160 ; with the commission and the relevant funding member&#160 ; states , unless specified otherwise in the agreement or in the event&#160 ; of non - compliance with its obligations under the agreement .


### actions proposed for funding under the programme shall be evaluated on the basis of the following cumulative criteria : ### actions proposed for inclusion in the programme and eligible for administrative support shall be evaluated on the basis of the following cumulative criteria :


### contribution to the security and defence interests of the union by enhancing defence technologies which contribute to implement defence capability priorities commonly agreed by member states within the union ; and , ### contribution to the common security and defence policy by enhancing defence technologies which contribute to implement defence capability priorities commonly agreed by member states n in the context of the capability development plan ;


### viability notably via a demonstration by the beneficiaries that the remaining costs of the eligible action are covered by other means of financing such as member states’ contributions ; and ### viability notably via a demonstration by the participants that the costs of the eligible action are covered by means of financing such as member states’ contributions and the athena mechanism ; and


### the work programme shall set out in detail the categories of projects to be funded under the programme ; ### the work programme shall set out in detail the categories of projects to be included in the programme as well as the commitment of the member states for financing their implementation ;


### the commission shall be assisted by a committee . that committee shall be a committee within the meaning of regulation no 182 / 2011 . the european defence agency shall be invited as observer . ### the commission shall be assisted by a&#160 ; committee . that committee shall be a committee within the meaning of&#160 ; regulation no 182 / 2011 . the european defence agency and representatives of the&#160 ; european parliament , civil society and academia shall be invited as&#160 ; observer .


### the commission shall regularly monitor the implementation of the programme and annually report on the progress made in accordance with article 38 of regulation 966 / 2012 . to this end , the commission shall put in place necessary monitoring arrangements . ### the commission shall regularly&#160 ; monitor the implementation of the programme and sent a monitoring&#160 ; report every six month to the parliament and the council on the&#160 ; progress , made in accordance with article 38 of regulation&#160 ; 966 / 2012 . to this end , the commission shall put in place necessary monitoring&#160 ; arrangements .


### to ensure that national measures for developing renewable heating and cooling are based on comprehensive mapping and analysis of the national renewable and waste energy potential and provide for increased integration of renewable energy and waste heat and cold sources , it is appropriate to require that member states carry out an assessment of their national potential of renewable energy sources and the use of waste heat and cold for heating and cooling , in particular to facilitate mainstreaming renewable energy in heating and cooling installations and promote efficient and competitive district heating and cooling as defined by article 2 of directive 2012 / 27 / eu of the european parliament and of the council21 . to ensure consistency with energy efficiency requirements for heating and cooling and reduce administrative burden this assessment should be included in the comprehensive assessments carried out and notified in accordance with article 14 of that directive . __________________ 21 directive 2012 / 27 / eu of the european parliament and of the council of 25 october 2012 on energy efficiency , amending directives 2009 / 125 / ec and 2010 / 30 / eu and repealing directives 2004 / 8 / ec and 2006 / 32 / ec . ### to ensure that national measures for developing renewable heating and cooling are based on comprehensive mapping and analysis of the national renewable and waste energy potential and provide for increased integration of renewable energy , in particular by supporting innovative technologies such as heat pumps , geothermal and solar thermal technologies , and waste heat and cold sources , it is appropriate to require that member states carry out an assessment of their national potential of renewable energy sources and the use of waste heat and cold for heating and cooling , in particular to facilitate mainstreaming renewable energy in heating and cooling installations and promote efficient and competitive district heating and cooling as defined by article 2 of directive 2012 / 27 / eu of the european parliament and of the council21 . to ensure consistency with energy efficiency requirements for heating and cooling and reduce administrative burden this assessment should be included in the comprehensive assessments carried out and notified in accordance with article 14 of that directive . __________________ 21 directive 2012 / 27 / eu of the european parliament and of the council of 25 october 2012 on energy efficiency , amending directives 2009 / 125 / ec and 2010 / 30 / eu and repealing directives 2004 / 8 / ec and 2006 / 32 / ec .


### advanced biofuels and other biofuels and biogas produced from feedstock listed in annex ix , renewable liquid and gaseous transport fuels of non - biological origin , and renewable electricity in transport can contribute to low carbon emissions , stimulating the decarbonisation of the union transport sector in a cost - effective manner , and improving inter alia energy diversification in the transport sector while promoting innovation , growth and jobs in the union economy and reducing reliance on energy imports . the incorporation obligation on fuels suppliers should encourage continuous development of advanced fuels , including biofuels , and it is important to ensure that the incorporation obligation also incentivises improvements in the greenhouse gas performance of the fuels supplied to meet it . the commission should assess the greenhouse gas performance , technical innovation and sustainability of those fuels . ### advanced biofuels and other biofuels and biogas produced from feedstock listed in annex ix , renewable liquid and gaseous transport fuels of non - biological origin , and renewable electricity in transport can contribute to low carbon emissions , stimulating the decarbonisation of the union transport sector in a cost - effective manner , and improving inter alia energy diversification in the transport sector while promoting innovation , growth and jobs in the union economy and reducing reliance on energy imports . however , non - food feedstocks can have associated land use change emissions or other indirect emissions . in order to account for indirect emissions related to the displacement of current uses for some of the feedstock , estimates should be included in the calculation of greenhouse gas emissions . it is possible that those estimates change as additional data become available or as the markets for those non - food feedstocks change over time . they should therefore be kept under regular review . the incorporation obligation on fuels suppliers should encourage continuous development of advanced fuels , including biofuels , and it is important to ensure that the incorporation obligation also incentivises improvements in the greenhouse gas performance of the fuels supplied to meet it . the commission should assess the greenhouse gas performance , technical innovation and sustainability of those fuels .


### the costs of connecting new producers of gas from renewable energy sources to the gas grids should be based on objective , transparent and non - discriminatory criteria and due account should be taken of the benefit that embedded local producers of gas from renewable sources bring to the gas grids . ### the costs of connecting new producers of electricity and gas from renewable energy sources to the electricity and gas grids should be based on objective , transparent and non - discriminatory criteria and due account should be taken of the benefit that embedded producers of electricity from renewable energy sources and local producers of gas from renewable sources bring to the electricity and gas grids .


### in order to avoid a disproportionate administrative burden , a list of default values should be laid down for common biofuel , bioliquid and biomass fuel production pathways and that list should be updated and expanded when further reliable data is available . economic operators should always be entitled to claim the level of greenhouse gas emission saving for biofuels , bioliquids and biomass fuels established by that list . where the default value for greenhouse gas emission saving from a production pathway lies below the required minimum level of greenhouse gas emission saving , producers wishing to demonstrate their compliance with this minimum level should be required to show that actual emissions from their production process are lower than those that were assumed in the calculation of the default values . ### in order to avoid a disproportionate administrative burden , a list of default values should be laid down for common biofuel , bioliquid and biomass fuel production pathways and that list should be updated and expanded when further reliable data is available . economic operators should always be entitled to claim the level of direct greenhouse gas emission saving for biofuels , bioliquids and biomass fuels established by that list . where the default value for direct greenhouse gas emission saving from a production pathway lies below the required minimum level of greenhouse gas emission saving , producers wishing to demonstrate their compliance with this minimum level should be required to show that actual emissions from their production process are lower than those that were assumed in the calculation of the default values .


### this directive establishes a common framework for the promotion of energy from renewable sources . it sets a binding union target for the overall share of energy from renewable sources in gross final consumption of energy in 2030 . it also lays down rules on financial support to electricity produced from renewable sources , self - consumption of renewable electricity , and renewable energy use in the heating and cooling and transport sectors , regional cooperation between member states and with third countries , guarantees of origin , administrative procedures and information and training . it establishes sustainability and greenhouse gas emissions saving criteria for biofuels , bioliquids and biomass fuels . ### this directive establishes a common framework for the promotion of energy from renewable sources . it sets mandatory union and national targets for the overall share of energy from renewable sources in gross final consumption of energy in 2030 . it also lays down rules on financial support to electricity produced from renewable sources , self - consumption of renewable electricity , and renewable energy use in the heating and cooling and transport sectors , regional cooperation between member states and with third countries , guarantees of origin , administrative procedures , and information and training , and access to the electricity grid for energy from renewable sources . it establishes sustainability and greenhouse gas emissions saving criteria for biofuels , bioliquids and biomass fuels .


### ‘ renewable liquid and gaseous transport fuels of non - biological origin’ means liquid or gaseous fuels other than biofuels whose energy content comes from renewable energy sources other than biomass , and which are used in transport ; ### ‘ renewable liquid and gaseous transport fuels of non - biological origin’ means liquid or gaseous fuels other than biofuels whose energy content comes from renewable energy sources other than biomass , and where any carbon feedstock is captured from the ambient air , and which are used in transport ;


### for the calculation of the denominator , that is the energy content of road and rail transport fuels supplied for consumption or use on the market , petrol , diesel , natural gas , biofuels , biogas , renewable liquid and gaseous transport fuels of non - biological origin , waste - based fossil fuels and electricity , shall be taken into account ; ### for the calculation of the denominator , that is the energy content of road and rail transport fuels supplied for consumption or use on the market , petrol , diesel , natural gas , waste - based fossil fuels and electricity , shall be taken into account ;


### when electricity is used for the production of renewable liquid and gaseous transport fuels of non - biological origin , either directly or for the production of intermediate products , either the average share of electricity from renewable energy sources in the union or the share of electricity from renewable energy sources in the country of production , as measured two years before the year in question , may be used to determine the share of renewable energy . in both cases , an equivalent amount of guarantees of origin issued in accordance with article 19 shall be cancelled . ### when electricity is used directly for the production of renewable liquid and gaseous transport fuels of non - biological origin , the share of electricity from renewable energy sources in the country of production , as measured two years before the year in question , shall be used to determine the share of renewable energy . an equivalent amount of guarantees of origin issued in accordance with article 19 shall be cancelled .


### member states shall put in place a database enabling tracing of transport fuels that are eligible for counting towards the numerator set out in paragraph 1 , and require the relevant economic operators to enter information on the transactions made and the sustainability characteristics of the eligible fuels , including their life cycle greenhouse gas emissions , starting from their point of production to the fuel supplier that places the fuel on the market . ### the commission shall put in place a database enabling tracing of transport fuels , including electricity , that are eligible for counting towards the numerator set out in point of paragraph 1 . member states shall require fuel suppliers to enter in the database the total annual quantities of energy they supply to the transport sector as defined in denominator in point of paragraph 1 . suppliers of renewable energy in transport as defined in the numerator in point of paragraph 1 shall be required to enter information on the transactions made and the sustainability characteristics of the eligible fuels , including their life cycle greenhouse gas emissions , starting from their point of production to the fuel supplier that places the fuel on the market .


### the national databases shall be interlinked so as to allow transactions of fuels between member states to be traced . in order to ensure the compatibility of national databases , the commission shall set out technical specifications of their content and use by means of implementing acts adopted in accordance with the examination procedure referred to in article 31 . ### the database referred to in the first subparagraph of this paragraph shall allow transactions of fuels between member states to be traced . the commission is empowered to adopt delegated acts in accordance with article 32 in order to supplement this directive by establishing technical specifications of the content and use of the database .


### member states shall report on the aggregated information from the national databases , including fuels ' life cycle greenhouse gas emissions , in accordance with annex vii of regulation [ governance ] . ### the commission shall publish , on an annual basis , aggregated information from the database , including fuels ' life cycle greenhouse gas emissions .


### by 31 december 2025 , in the context of the biennial assessment of progress made pursuant to regulation [ governance ] , the commission shall assess whether the obligation laid down in paragraph 1 effectively stimulates innovation and promotes greenhouse gas savings in the transport sector , and whether the applicable greenhouse gas savings requirements for biofuels and biogas are appropriate . the commission shall , if appropriate , present a proposal to modify the obligation laid down in paragraph 1 . ### by 31 december 2025 , in the context of the biennial assessment of progress made pursuant to regulation [ governance ] , the commission shall assess whether the obligation laid down in paragraph 1 effectively stimulates innovation and ensures greenhouse gas savings in the transport sector , and whether the applicable greenhouse gas savings requirements for biofuels and biogas are appropriate . the commission shall , if appropriate , present a proposal to modify the obligation laid down in paragraph 1 .


### biofuels , bioliquids and biomass fuels produced from agricultural biomass taken into account for the purposes referred to in points , and of paragraph 1 shall not be made from raw material obtained from land that was peatland in january 2008 . ### biofuels , bioliquids and biomass fuels produced from agricultural or forest biomass taken into account for the purposes referred to in points , and of paragraph 1 shall not be made from raw material obtained from land that was peatland or wetland in january 2008 , unless , in case of forest raw materials , forestry practices that protect the peat against oxidation are applied .


### at least 50 % for biofuels and bioliquids produced in installations in operation on or before 5 october 2015 ; ### until 1 january 2025 , at least 50&#160 ; % for biofuels and bioliquids produced in installations in operation on or before 5 october 2015 ;