### (14) low infrastructure investment rates in the union during the financial crisis and again during the covid-19 crisis undermined the union's ability to boost sustainable growth , competitiveness and convergence. it also creates risk of consolidating imbalances and impacts regions’ development long-term. sizeable investments in union infrastructure , in particular with regard to interconnection and energy efficiency and to creating a single european transport area , are essential to meeting the union's sustainability targets , including the union’s commitments towards the sdgs , and the 2030 energy and climate targets. accordingly , support from the investeu fund should target investments into transport , energy , including energy efficiency and renewable energy sources and other safe and sustainable low-emission energy sources , environmental infrastructure , infrastructure related to climate action , maritime infrastructure and digital infrastructure. the investeu programme should prioritise areas that are under-invested , and in which additional investment is required. to maximise the impact and added value of union financing support , it is appropriate to promote a streamlined investment process that enables visibility of the project pipeline and maximises synergies across relevant union programmes in areas such as transport , energy and digitisation. bearing in mind threats to safety and security , investment projects receiving union support should include measures for infrastructure resilience , including infrastructure maintenance and safety , and should take into account principles for the protection of citizens in public spaces. this should be complementary to the efforts made by other union funds that provide support for security components of investments in public spaces , transport , energy and other critical infrastructure , such as the european regional development fund. ### (14) low infrastructure investment rates in the union during the financial crisis and again during the covid-19 crisis undermined the union's ability to boost sustainable economy , competitiveness and convergence , while respecting the do no significant harm and minimum safeguards as per the regulation (eu) 2020/852 of the european parliament and of the council on the establishment of a framework to facilitate sustainable investment1a. it also creates risk of consolidating imbalances and impacts regions’ development long-term. sizeable investments in union infrastructure , in particular with regard to interconnection and energy efficiency and to creating a single european transport area , are essential to meeting the union's sustainability targets , including the union’s commitments towards the sdgs , and the 2030 energy and climate targets. accordingly , support from the investeu fund should target investments into transport , energy , including energy efficiency and renewable energy sources and other safe and sustainable low-emission energy sources , environmental infrastructure , infrastructure related to climate action , maritime infrastructure and digital infrastructure. the investeu programme should prioritise areas that are under-invested , and in which additional investment is required. to maximise the impact and added value of union financing support , it is appropriate to promote a streamlined investment process that enables visibility of the project pipeline and maximises synergies across relevant union programmes in areas such as transport , energy and digitisation. bearing in mind threats to safety and security , investment projects receiving union support should include measures for infrastructure resilience , including infrastructure maintenance and safety , and should take into account principles for the protection of citizens in public spaces. this should be complementary to the efforts made by other union funds that provide support for security components of investments in public spaces , transport , energy and other critical infrastructure , such as the european regional development fund.


### (19) tourism is an important area for the union economy and the sector , which experienced a particularly severe contraction as a result of covid-19 pandemic. the investeu programme should contribute to strengthening its long-term competitiveness by supporting operations promoting sustainable , innovative and digital tourism. ### (19) tourism is an important area for the union economy and the sector , which experienced a particularly severe contraction as a result of covid-19 pandemic , with large-scale unemployment affecting , in particular , seasonal workers and those in vulnerable situations. the investeu programme should contribute to strengthening its long-term competitiveness and develop a sustainable tourism sector , in particular accessibility , eco-tourism and affordable travelling by railway , through supporting operations promoting a sustainable , innovative and digital tourism recovery , which should contribute to the creation of numerous permanent , local , quality jobs;


### (20) a significant effort is urgently needed to invest in and boost the digital transformation and to distribute the benefits of it to all union citizens and businesses. the strong policy framework of the digital single market strategy should now be matched by investment of a similar ambition , including in artificial intelligence in line with the digital europe programme. ### (20) a significant effort is urgently needed to invest in and boost the digital transformation and to distribute the benefits of it to all union citizens and businesses. the strong policy framework of the digital single market strategy should now be matched by investment of a similar ambition , including in ethical artificial intelligence in line with the digital europe programme.


### (28) the primary focus of the strategic european investment window should be on support to those final recipients established in a member state and operating in the union whose activities are of strategic importance to the union in particular in view of the green and digital transitions and of enhanced resilience in areas of (i) critical healthcare provision , manufacturing and stockpiling of pharmaceuticals , medical devices and medical supplies , strengthening of health crisis response capacity and of the civil protection system , (ii) critical infrastructure , whether physical or virtual; (iii) provision of goods and services instrumental to the operation and maintenance of such infrastructure , (iv) key enabling , transformative , green and digital technologies and game-changing innovations where the investment is strategically important for the union’s industrial future , including artificial intelligence , blockchain , software , robotics , semiconductors , microprocessors , edge cloud technologies , high-performance computing , cybersecurity , quantum technologies , photonics , industrial biotechnology , renewable energy technologies , energy storage technologies including batteries , sustainable transport technologies , clean hydrogen and fuel cell applications , decarbonisation technologies for industry , carbon capture and storage , circular economy technologies biomedicine , nanotechnologies , pharmaceuticals and advanced materials; (v) manufacturing facilities for mass production of information communication and technology components and devices in the eu; (vi) supply and stockpiling of critical inputs to public actors , businesses or consumers in the union; (vii) critical technologies and inputs for the security of the union and its member states , such as defence and space sectors and cybersecurity , and dual use items as defined in point 1 of article 2 of council regulation (ec) no 428/2009. the final recipients should have their registered office in a member state and they should be active in the union in the sense that they have substantial activities in terms of staff , manufacturing , research and development or other business activities in the union. projects which contribute to diversification of strategic supply chains in the single market through operations in multiple locations across the eu should be able to benefit. ### (28) the primary focus of the strategic european investment window should be on support to those final recipients established in a member state and operating in the union whose activities are of strategic importance to the union in particular in view of the green and digital transitions and of enhanced resilience in areas of (i) critical healthcare provision , manufacturing and stockpiling of pharmaceuticals , fostering the sustainable and ethical production , procurement , management and non- exclusive licensing of crisis relevant products ensuring their affordability in complementarity with other union instruments , medical devices , medical supplies , and protective equipment , strengthening of health crisis response capacity and of the civil protection system , based on the principles of wide availability and affordability of products vital in health emergencies; (ii) critical infrastructure , whether physical or virtual; (iii) provision of goods and services instrumental to the operation and maintenance of such infrastructure , (iv) key enabling , transformative , green and digital technologies and game-changing innovations where the investment is strategically important for the union’s industrial future , including ethical artificial intelligence , blockchain , software , robotics , semiconductors , microprocessors , edge cloud technologies , high-performance computing , cybersecurity , quantum technologies , photonics , industrial biotechnology , renewable energy technologies , energy storage technologies including batteries , sustainable transport technologies , green hydrogen and fuel cell applications , decarbonisation technologies for industry , circular economy technologies biomedicine , nanotechnologies , pharmaceuticals and advanced materials; (v) recycling and manufacturing facilities for mass production of information communication and technology components and devices in the eu; (vi) supply and stockpiling of critical inputs to public actors , businesses or consumers in the union; (vii) critical technologies and inputs for the security of the union and its member states , such as space sector and cybersecurity. the final recipients should have mandatory transition plans towards a sustainable economic activity and their registered office in a member state , not having subsidiaries without real economic activities in a country listed on the eu list of non-cooperative jurisdictions and they should be active in the union in the sense that they have substantial activities in terms of staff , manufacturing , research and development or other business activities in the union. projects which contribute to diversification of strategic supply chains in the single market through operations in multiple locations across the eu should be able to benefit. the distribution of the financial envelope should in particular ensure support for projects that help saving lives in the short , mid and long term.


### (29) the strategic european investment window should also target suppliers established and operating in the union whose activities are of strategic importance to the union and that would need long term investment or are covered by the foreign direct investment screening mechanism. in addition , important projects of common european interest should in particular be able to benefit from the strategic european investment window. ### (29) the strategic european investment window should also target suppliers established and operating in the union whose activities are of strategic importance to the union and that would need long term investment or are covered by the foreign direct investment screening mechanism. in addition , important projects of common european interest in compliance with the union’s climate and environmental goals , with specific consideration of the regulation (eu) 2020/852 of the european parliament and of the council 1d and increased transparency in their implementation should in particular be able to benefit from the strategic european investment window.


### (40) the eu guarantee underpinning the investeu fund should be implemented indirectly by the commission relying on implementing partners with outreach to financial intermediaries , where applicable , and final recipients. the selection of the implementing partners should be transparent and free from any conflict of interest. the commission should conclude a guarantee agreement allocating guarantee capacity from the investeu fund with each implementing partner to support its financing and investment operations that meet the investeu fund eligibility criteria and contribute to meeting its objectives. the management of the risk related to the eu guarantee should not hamper direct access to the eu guarantee by the implementing partners. once the eu guarantee is granted under the eu compartment to implementing partners , they should be fully responsible for the whole investment process and the due diligence related to the financing or investment operations. the investeu fund should support projects that typically have a higher risk profile than the projects supported by the normal operations of the implementing partners and that could not have been carried out during the period in which the eu guarantee could be used , or could not have been carried out to the same extent , by other public or private sources without investeu support. however , specific conditions may apply to the additionality criterion in relation to the financing and investment operations under the strategic european investment window stemming from its objective. ### (40) the eu guarantee underpinning the investeu fund should be implemented indirectly by the commission relying on implementing partners with outreach to financial intermediaries , where applicable , and final recipients. the selection of the implementing partners should be transparent and free from any conflict of interest. the commission should conclude a guarantee agreement allocating guarantee capacity from the investeu fund with each implementing partner to support its financing and investment operations that meet the investeu fund eligibility criteria and contribute to meeting its objectives. the management of the risk related to the eu guarantee should not hamper direct access to the eu guarantee by the implementing partners. once the eu guarantee is granted under the eu compartment to implementing partners , they should be fully responsible for the whole investment process and the due diligence related to the financing or investment operations. the investeu fund should support projects that typically have a higher risk profile than the projects supported by the normal operations of the implementing partners and that could not have been carried out during the period in which the eu guarantee could be used , or could not have been carried out to the same extent , by other public or private sources without investeu support.


### (15) ‘important project of common european interest’ means a project that fulfils all the criteria laid down in commission communication on criteria for the analysis of the compatibility with the internal market of state aid to promote the execution of important projects of common european interest (oj c 188 , 20.6.2014 , p. 4) or any subsequent revision; ### (15) ‘important project of common european interest’ means a project that fulfils all the criteria laid down in commission communication on criteria for the analysis of the compatibility with the internal market of state aid to promote the execution of important projects of common european interest (oj c 188 , 20.6.2014 , p. 4) or any subsequent revision in compliance with the union’s climate and environmental goals , with specific consideration of the regulation (eu) 2020/852 of the european parliament and of the council 1e and increased transparency in their implementation;


### 1. the general objective of the investeu programme is to support the policy objectives of the union by means of financing and investment operations that contribute to: ### 1. the general objective of the investeu programme is to support the policy objectives of the union by means of financing and investment operations that are fully compliant with union climate objectives , in particular the european climate law 1g , the climate neutrality target , with the criteria laid down in regulation (eu) 2020/852 1hand the green deal objectives , as well as the biodiversity goals and contribute to:


### the sustainable and inclusive recovery of the union economy after the crisis caused by the covid-19 pandemic , upholding and strengthening its strategic value chains and maintaining and reinforcing activities of strategic importance to the union in relation to critical infrastructure , transformative technologies , game-changing innovations and inputs to businesses and consumers. ### the sustainable and inclusive recovery of the union economy after the crisis caused by the covid-19 pandemic , fully compliant with union climate objectives , in particular the european climate law 1i , the climate neutrality target , with the criteria laid down in regulation on the establishment of a framework to facilitate sustainable investment 1jand the green deal objectives , as well as the biodiversity goals , so as to uphold and strengthen its strategic value chains , the climate and digital transitions , investments increasing resilience as defined in annex v , and maintaining and reinforcing activities of strategic importance to the union in relation to critical infrastructure , transformative technologies , game-changing innovations and inputs.. the objectives of the fund should be pursued in the framework of sustainable development and inline with the aarhus convention and the union's promotion of the aim of preserving , protecting and improving the quality of the environment and combating climate change , as set out in articles 11 and 191(1) of the tfeu. support provided under the fund should be consistent with the energy efficiency first principle;


### to support financing and investment operations in sectors referred to in point (e) of article 7(1) in order to maintain and reinforce the strategic autonomy of the union and of its economy. ### to support financing and investment operations in sectors referred to in point (e) of article 7(1) in order to maintain and reinforce the strategic autonomy and sustainability of the union and of its economy , consistent with the energy and climate legislation and the 2030 energy and climate targets and climate neutrality by 2040 , the european pillar of social rights , the objectives of green and digital transitions , technological autonomy , sustainable and inclusive growth , economic , social and territorial cohesion , quality job creation as well as research and innovation.


### 1. the investeu fund shall operate through the following five policy windows that shall address market failures or sub-optimal investment situations within their specific scope: ### 1. the investeu fund shall operate through the following five policy windows that shall address market failures or sub-optimal investment situations within their specific scope , respecting the ‘do no significant harm’ principle:


### (1) in its communication of 11 december 201915 , the commission set out a european green deal for the european union and its citizens. the european green deal is a new growth strategy that aims to transform the union into a fair and prosperous society , with a modern , resource-efficient and competitive economy where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use. ### (1) in its communication of 11 december 201915 , the commission set out a european green deal for the european union and its citizens. the european green deal is a new integrated strategy that respects the planetary boundaries and aims to transform the union into a fair and prosperous society , with a resilient , resource-efficient and competitive economy where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use.


### (4) in line with the objectives set out in the commission communication on the european green deal , there is a need to transform the union economy and to rethink policies , in particular in the field of transport and mobility , which implies accelerating the shift to sustainable and smart mobility. transport accounts for a quarter of the union’s greenhouse gas emissions , and still growing. to achieve climate neutrality , a 90% reduction in transport emissions is needed by 2050. achieving sustainable transport means putting users first and providing them with more affordable , accessible , healthier and cleaner alternatives to their current mobility habits. the european green deal implies to accelerate the shift to sustainable and smart mobility to address these challenges. in particular , a substantial part of the 75% of inland freight carried today by road should shift onto rail and inland waterways. ### (4) in line with the objectives set out in the commission communication on the european green deal , there is a need to transform the union economy and to rethink policies , in particular in the field of transport and mobility , which implies accelerating the shift to sustainable , intermodal and smart mobility. transport accounts for a quarter of the union’s greenhouse gas emissions , and still growing. to achieve climate neutrality as soon as possible , a 90% reduction in transport emissions is needed by 2040. achieving sustainable transport means putting users first and providing them with more affordable , accessible , healthier and cleaner alternatives to their current mobility habits and consolidating those that are already using sustainable modes of mobility including cycling and walking. the european green deal implies to accelerate the shift to sustainable , intermodal and smart mobility to address these challenges. in particular , a substantial part of the 75% of inland freight carried today by road should shift onto rail and inland waterways without putting pressure on further canalisation or deepening of rivers.


### (5) rail has a significant role to play as a game changer to achieve the climate neutrality objective by 2050. it is one of the most environmentally friendly and energy-efficient transport modes. rail is largely electrified and emits far less co2 than equivalent travel by road or air , and is the only mode that has consistently reduced its greenhouse gas emissions and co2 emissions since 1990. in addition , rail has decreased its energy consumption between 1990-201618 and increasingly uses renewable energy sources. ### (5) rail has a significant role to play as a game changer to achieve the climate neutrality objective by 2040. it is one of the most environmentally friendly and energy-efficient transport modes. rail is largely electrified and emits far less co2 than equivalent travel by road or air , and is the only mode that has consistently reduced its greenhouse gas emissions and co2 emissions since 1990. in addition , rail has decreased its energy consumption between 1990-201618 and increasingly uses renewable energy sources.


### (6) by connecting the union’s main transport routes with its peripheral regions and territories , the rail sector contributes to social , economic and territorial cohesion. ### (6) by connecting the union’s main transport routes with its peripheral regions and territories and by filling missing cross-border links , the rail sector contributes to social , economic and territorial cohesion. it is also important to maintain or revitalise the capillary network , in particular in rural areas , so that no one is left behind.


### promote rail as a sustainable , innovative and safe mode of transport , in particular by highlighting the role of rail as a game changer to help reaching the union’s climate neutrality objective by 2050 and by reaching out to the wider public , especially youth; ### promote rail as a sustainable , innovative and safe mode of transport allowing for intermodal mobility patterns , in particular by highlighting the role of rail as a game changer to help reaching the union’s climate neutrality objective by 2040 and by reaching out to the wider public , especially youth;


### enhance the contribution of rail to union economy , industry and society , covering in particular aspects related to regional development , industrial competitiveness , sustainable tourism , innovation , employment , education , youth and culture , and improving accessibility for persons with disabilities; ### enhance the contribution of rail to union economy , industry and society , covering in particular aspects related to regional development , industrial competitiveness , sustainable tourism , innovation , employment , education , youth and culture , and improving accessibility for persons with disabilities and reduced mobility;


### 1. the commission shall regularly convene meetings of the national coordinators in order to coordinate the running of the european year. those meetings shall also serve as opportunities to exchange information regarding the implementation of the european year at national and union level; representatives of the european parliament may participate in those meetings as observers. ### 1. the commission shall regularly convene meetings of the national coordinators in order to coordinate the running of the european year. those meetings shall also serve as opportunities to exchange information regarding the implementation of the european year at national and union level; representatives of the european parliament shall participate in those meetings as observers.


### (8) in order to promote rail transport in line with the objectives set out in the commission communication on the european green deal , including with regard to sustainable and smart mobility , the year 2021 should be designated as european year of rail. 2021 will be an important year for the union rail policy , it will be the first full year where the rules agreed under the fourth railway package will be implemented throughout the union , namely on the opening of the market of domestic passenger services and on reducing costs and administrative burden for railway undertakings operating across the union. there is a growing public interest in railways , including in night trains , in a number of member states , as also illustrated by the popularity of #discovereu. moreover , the international arts festival ‘europalia’ will dedicate its 2021 edition to the influence of railways on the arts and highlight the role of rail as a powerful promotor of social , economic and industrial change. ### (8) in order to promote rail transport in line with the objectives set out in the commission communication on the european green deal , including with regard to sustainable , intermodal and smart mobility , the year 2021 should be designated as european year of rail. 2021 will be an important year for the union rail policy , it will be the first full year where the rules agreed under the fourth railway package will be implemented throughout the union , namely on the opening of the market of domestic passenger services and on reducing costs and administrative burden for railway undertakings operating across the union. there is a growing public interest in railways , including in night trains , in a number of member states , as also illustrated by the popularity of #discovereu. moreover , the international arts festival ‘europalia’ will dedicate its 2021 edition to the influence of railways on the arts and highlight the role of rail as a powerful promotor of social , economic and industrial change.


### (2) the transition to a climate-neutral and circular economy constitutes one of the most important policy objectives for the union. on 12 december 2019 , the european council endorsed the objective of achieving a climate-neutral union by 2050 , in line with the objectives of the paris agreement. while fighting climate change and environmental degradation will benefit all in the long term and provides opportunities and challenges for all in the medium term , not all regions and member states start their transition from the same point or have the same capacity to respond. some are more advanced than others , whereas the transition entails a wider social and economic impact for those regions that rely heavily on fossil fuels - especially coal , lignite , peat and oil shale - or greenhouse gas intensive industries. such a situation not only creates the risk of a variable speed transition in the union as regards climate action , but also of growing disparities between regions , detrimental to the objectives of social , economic and territorial cohesion. ### (2) the regulatory framework governing the union’s cohesion policy for the period from 2021 to 2027 , in the context of the next multi-annual financial framework , contributes to the fulfilment of the union’s commitments to implement the paris agreement to limit global temperature increase to below 1.5°c and the united nations sustainable development goals by concentrating union funding on green objectives as well as the european pillar of social rights. this regulation implements one of the priorities set out in the communication on the european green deal (‘the european green deal’)11 and is part of the sustainable europe investment plan12 providing dedicated financing under the just transition mechanism in the context of cohesion policy to address the economic and social challenges of the transition to a climate-neutral fully renewables-based , highly resource- and energy-efficient and circular economy as early as possible and by 2050 at the very latest , and to support and accompany european regions and people with social , labour market and economic support.


### (3) in order to be successful , the transition has to be fair and socially acceptable for all. therefore , both the union and the member states must take into account its economic and social implications from the outset , and deploy all possible instruments to mitigate adverse consequences. the union budget has an important role in that regard. ### (3) in order to be successful , the transition has to be inclusive and socially acceptable for all , reduce inequalities and leave no one behind. therefore , both the union and the member states as well as the different regional and local actors should take into account its social , labour market and economic implications from the outset , and deploy all possible instruments to mitigate adverse consequences and enhance the positive ones , such as the creation of new , decent and sustainable jobs or the improvement of air quality. the union budget has an important role in that regard.


### (3) in order to be successful , the transition has to be fair and socially acceptable for all. therefore , both the union and the member states must take into account its economic and social implications from the outset , and deploy all possible instruments to mitigate adverse consequences. the union budget has an important role in that regard. ### (3) in order to be successful , the transition has to be inclusive and socially acceptable for all , reduce inequalities and leave no one behind. therefore , both the union and the member states , as well as the different regional and local actors , should take into account its social , labour market and economic implications from the outset , and deploy all possible instruments to mitigate adverse consequences and enhance the positive ones , such as the creation of new , decent and sustainable jobs or the improvement of air quality. the union budget has an important role in that regard.


### (5) this regulation establishes the just transition fund (‘jtf’) which is one of the pillars of the just transition mechanism implemented under cohesion policy. the aim of the jtf is to mitigate the adverse effects of the climate transition by supporting the most affected territories and workers concerned. in line with the jtf specific objective , actions supported by the jtf should directly contribute to alleviate the impact of the transition by financing the diversification and modernisation of the local economy and by mitigating the negative repercussions on employment. this is reflected in the jtf specific objective , which is established at the same level and listed together with the policy objectives set out in article [4] of regulation eu [new cpr]. ### (5) this regulation establishes the just transition fund (‘jtf’) which is one of the pillars of the just transition mechanism implemented under cohesion policy. the aim of the jtf is not only to mitigate the adverse effects of the climate transition but also to create and enhance the future positive effects by supporting the most affected territories as well as the people living there and in particular the workers concerned. in line with the jtf specific objective , actions supported by the jtf should directly contribute to facilitating and catalysing the transition by creating new sustainable employment opportunities , by mitigating adverse social consequences and by financing the diversification , sustainability and modernisation of the local economy. this is reflected in the jtf specific objective , which is established at the same level and listed together with the policy objectives set out in article [4] of regulation eu [new cpr]


### (6) in view of the importance of tackling climate change in line with the union’s commitments to implement the paris agreement , the commitment regarding the united nations sustainable development goals and the increased ambition of the union as proposed in the european green deal , the jtf should provide a key contribution to mainstream climate actions. resources from the jtf own envelope are additional and come on top of the investments needed to achieve the overall target of 25% of the union budget expenditure contributing to climate objectives. resources transferred from the erdf and esf+ will contribute fully to the achievement of this target. ### (6) in view of the importance of tackling climate change in line with the union’s commitments to implement the paris agreement , the commitment regarding the united nations sustainable development goals and the increased ambition of the union as proposed in the european green deal , the jtf should provide a key contribution to mainstream climate actions. resources from the jtf own envelope are additional and come on top of the investments needed to achieve the overall target of 50% of the union budget expenditure contributing to climate objectives. resources transferred from the erdf and esf+ will contribute fully to the achievement of this target.


### (8) transitioning to a climate-neutral economy is a challenge for all member states. it will be particularly demanding for those member states that rely heavily on fossil fuels or greenhouse gas intensive industrial activities which need to be phased out or which need to adapt due to the transition towards climate neutrality and that lack the financial means to do so. the jtf should therefore cover all member states , but the distribution of its financial means should reflect the capacity of member states to finance the necessary investments to cope with the transition towards climate neutrality. ### (8) transitioning to a climate-neutral economy is a challenge for all member states. it will be particularly demanding for those member states that rely heavily on fossil fuels , greenhouse gas intensive industrial activities , and high modal shares of greenhouse gas intensive transport , which need to be phased out or which need to adapt due to the transition towards climate neutrality and that lack the financial means to do so. the jtf should therefore cover all member states , but the distribution of its financial means should reflect the capacity of member states to finance the necessary investments to cope with the transition towards climate neutrality.


### (10) this regulation identifies types of investments for which expenditure may be supported by the jtf. all supported activities should be pursued in full respect of the climate and environmental priorities of the union. the list of investments should include those that support local economies and are sustainable in the long-term , taking into account all the objectives of the green deal. the projects financed should contribute to a transition to a climate-neutral and circular economy. for declining sectors , such as energy production based on coal , lignite , peat and oil shale or extraction activities for these solid fossil fuels , support should be linked to the phasing out of the activity and the corresponding reduction in the employment level. as regards transforming sectors with high greenhouse gas emission levels , support should promote new activities through the deployment of new technologies , new processes or products , leading to significant emission reduction , in line with the eu 2030 climate objectives and eu climate neutrality by 205013 while maintaining and enhancing employment and avoiding environmental degradation. particular attention should also be given to activities enhancing innovation and research in advanced and sustainable technologies , as well as in the fields of digitalisation and connectivity , provided that such measures help mitigate the negative side effects of a transition towards , and contribute to , a climate-neutral and circular economy. ### (10) this regulation identifies types of investments for which expenditure may be supported by the jtf. all supported activities should be pursued in full respect of the climate and environmental priorities of the union. the list of investments should include those that support local economies and are sustainable in the long-term , fully aligning with all the objectives of the green deal and the paris climate deal objective of limiting global temperature rise to 1.5 degrees c. the projects financed should contribute to a transition to a climate-neutral and circular economy. for declining sectors , such as energy production based on coal , lignite , peat , gas , oil and oil shale or extraction activities for these solid fossil fuels , support should be linked to the phasing out of the activity and the corresponding reduction in the employment level. as regards transforming sectors with high greenhouse gas emission levels , support should promote new activities through the deployment of new technologies , new processes or products , while fostering the modal shift in transport , leading to significant emission reduction , in line with the eu 2030 climate objectives and eu climate neutrality by 205013 at the latest while maintaining and enhancing employment and avoiding environmental degradation. particular attention should also be given to activities enhancing innovation and research in advanced and sustainable technologies , as well as in the fields of digitalisation and connectivity , provided that such measures help mitigate the negative side effects of a transition towards , and contribute to , a climate-neutral and circular economy.


### (11) to protect citizens who are most vulnerable to the climate transition , the jtf should also cover the up-skilling and reskilling of the affected workers , with the aim of helping them to adapt to new employment opportunities , as well as providing job-search assistance to jobseekers and their active inclusion into the labour market. ### (11) to protect groups of people who are the most likely to require support to achieve the climate transition , the jtf should cover the up-skilling and reskilling of the affected workers , paying particular attention to the most vulnerable people as defined in the [esf+ regulation] , with the aim of helping them to adapt to new employment opportunities , and achieving gender balance across sectors , as well as providing active labour market and skills policies targeted towards future oriented sectors and employment , assistance to those affected by the transition , and personalised job-search assistance to all categories of jobseekers and ensuring equal access to all groups of people without discrimination and their active inclusion into the labour market.


### (12) in order to enhance the economic diversification of territories impacted by the transition , the jtf should provide support to productive investment in smes. productive investment should be understood as investment in fixed capital or immaterial assets of enterprises in view of producing goods and services thereby contributing to gross-capital formation and employment. for enterprises other than smes , productive investments should only be supported if they are necessary for mitigating job losses resulting from the transition , by creating or protecting a significant number of jobs and they do not lead to or result from relocation. investments in existing industrial facilities , including those covered by the union emissions trading system , should be allowed if they contribute to the transition to a climate-neutral economy by 2050 and go substantially below the relevant benchmarks established for free allocation under directive 2003/87/ec of the european parliament and of the council14 and if they result in the protection of a significant number of jobs. any such investment should be justified accordingly in the relevant territorial just transition plan. in order to protect the integrity of the internal market and cohesion policy , support to undertakings should comply with union state aid rules as set out in articles 107 and 108 tfeu and , in particular , support to productive investments by enterprises other than smes should be limited to enterprises located in areas designated as assisted areas for the purposes of points (a) and (c) of article 107(3) tfeu. ### (12) in order to enhance the diversification of territories which require additional support to achieve the transition , the jtf should provide support to productive investment with job creation potential in green and sustainable smes. productive investment should be understood as investment in fixed capital or immaterial assets of enterprises in view of producing goods and services thereby contributing to gross-capital formation and green , decent and sustainable employment. for enterprises other than smes , productive investments should only be supported if they are necessary for mitigating job losses resulting from the transition and if they support the overarching goal of the jtf which is to accelerate the transition to a climate-resilient , circular economy , by creating or supporting the adaptation of a significant number of jobs and they do not lead to or result from relocation. investments in existing industrial facilities , including those covered by the union emissions trading system , should be allowed provided that they contribute to the transition to a climate-neutral economy by 2050 and go substantially below the relevant benchmarks established for free allocation under directive 2003/87/ec of the european parliament and of the council14 and provided that they result in the protection of a significant number of decent and sustainable jobs. any such investment should be justified accordingly in the relevant territorial just transition plan , should be sustainable and should be consistent with the energy efficiency first principle as well as excluding any investments in fossil fuel infrastructure from the scope of the jtf. in order to protect the integrity of the internal market and cohesion policy , support to undertakings should comply with union state aid rules as set out in articles 107 and 108 tfeu and , in particular , support to productive investments by enterprises other than smes should be limited to enterprises located in areas designated as assisted areas for the purposes of points (a) and (c) of article 107(3) tfeu.


### (14) the jtf support should be conditional on the effective implementation of a transition process in a specific territory in order to achieve a climate-neutral economy. in that regard , member states should prepare , in cooperation with the relevant stakeholders and supported by the commission , territorial just transition plans , detailing the transition process , consistently with their national energy and climate plans. to this end , the commission should set up a just transition platform , which would build on the existing platform for coal regions in transition to enable bilateral and multilateral exchanges of experience on lessons learnt and best practices across all affected sectors. ### (14) the jtf support should be conditional on the effective implementation of a transition process in a specific territory in order to achieve a climate-neutral economy. in that regard , member states should prepare , in cooperation with the relevant stakeholders and supported by the commission , territorial just transition plans , detailing the transition process , consistently with their national energy and climate plans. to this end , the commission should set up a just transition platform , which would build on the existing platform for coal regions in transition to enable bilateral and multilateral exchanges of experience on lessons learnt and best practices across all affected sectors. companies benefiting from jft support should present operational transition plans including but not limited to promoting and actively supporting sustainable mobility within the company.


### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the green deal. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission. ### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a fully renewables-based , highly resource and energy-efficient climate-neutral and circular economy aimed at achieving net zero ghg emissions by 2040 , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges , the opportunities and needs of those territories , including the green , permanent and quality job creation potential required to achieve a socially just transition which leaves no one behind , and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to renewables-based , highly resource and energy-efficient climate-neutral and circular economy aimed at achieving net zero ghg emissions by 2040 and the objectives of the green deal. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission.


### 1. this regulation establishes the just transition fund (‘jtf’) to provide support to territories facing serious socio-economic challenges deriving from the transition process towards a climate-neutral economy of the union by 2050. ### 1. this regulation establishes the just transition fund (‘jtf’) to provide support to the groups of people and the territories which require additional support to make the transition to a fully renewables-based , highly resource- and energy-efficient , circular and climate-neutral economy of the union by 2050 and turn the challenges into opportunities , particularly in terms of the creation of new decent and sustainable green jobs and the up- and re-skilling of the workers , education and training to promote a new economic model which provides prosperity and well-being to all within the planetary boundaries.


### 1. the jtf shall support the investment for jobs and growth goal in all member states. ### 1. the jtf shall support the investment for jobs and growth goal in all member states , respecting and supporting the overarching objectives of the european green deal , and in particular the union-wide climate-neutrality objective as defined in the european climate law , in order to tackle climate and environmental challenges while ensuring a just transition that leaves no-one behind.


### the resources for the jtf under the investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be eur 7.5 billion in 2018 prices , which may be increased , as the case may be , by additional resources allocated in the union budget , and by other resources in accordance with the applicable basic act. ### the resources for the jtf under the investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be eur 30 billion in 2018 prices , which may be increased , as the case may be , by additional resources allocated in the union budget , and by other resources in accordance with the applicable basic act.


### 3. the commission shall adopt a decision by means of an implementing act setting out the annual breakdown of resources , including any additional resources referred to in paragraph 2 , by member state in accordance with the methodology set out in annex i. ### 3. the commission shall adopt a decision by means of an implementing act setting out the annual breakdown of resources , taking into account the conditionality set out in paragraph 1 and including any additional resources referred to in paragraph 2 , by member state in accordance with the methodology set out in annex i.


### 3. the commission shall adopt a decision by means of an implementing act setting out the annual breakdown of resources , including any additional resources referred to in paragraph 2 , by member state in accordance with the methodology set out in annex i. ### 3. the commission is empowered to adopt delegated acts in accordance with article 10 to set out the annual breakdown of resources , including any additional resources referred to in paragraph 2 , by member state in accordance with the methodology set out in annex i.


### investments in the deployment of technology and infrastructures for affordable clean energy , in greenhouse gas emission reduction , energy efficiency and renewable energy; ### investments in the deployment of technology and infrastructures for affordable clean energy and sustainable mobility , in greenhouse gas emission reduction , energy efficiency and renewable energy;


### investments in regeneration and decontamination of sites , land restoration and repurposing projects; ### investments in regeneration and decontamination of sites , land restoration and repurposing projects , including but not limited to the creation of biodiversity hubs , benefiting sustainable tourism.


### additionally , the jtf may support , in areas designated as assisted areas in accordance with points (a) and (c) of article 107(3) of the tfeu , productive investments in enterprises other than smes , provided that such investments have been approved as part of the territorial just transition plan based on the information required under point (h) of article 7(2). such investments shall only be eligible where they are necessary for the implementation of the territorial just transition plan. ### additionally , the jtf may support , in areas designated as assisted areas in accordance with points (a) and (c) of article 107(3) tfeu and in compliance with union state aid rules as set out in articles 107 and 108 tfeu , productive investments in enterprises other than smes , provided that such investments have been approved as part of the territorial just transition plan based on the information required under point (h) of article 7(2) and have undergone an additional check for compliance with the european social pillar of rights. such investments shall only be eligible where they are necessary for the implementation of the territorial just transition plan , shall be sustainable and shall not increase or maintain dependency on fossil fuels.


### the jtf may also support investments to achieve the reduction of greenhouse gas emissions from activities listed in annex i to directive 2003/87/ec of the european parliament and of the council provided that such investments have been approved as part of the territorial just transition plan based on the information required under point (i) of article 7(2). such investments shall only be eligible where they are necessary for the implementation of the territorial just transition plan. ### the jtf may also support investments to achieve the reduction of greenhouse gas emissions from activities listed in annex i to directive 2003/87/ec of the european parliament and of the council provided that such investments have been approved as part of the territorial just transition plan based on the information required under point (i) of article 7(2). such investments shall only be eligible where they are necessary for the implementation of the territorial just transition plan , shall be sustainable and shall not increase or maintain dependency on fossil fuels.


### the decommissioning or the construction of nuclear power stations; ### the decommissioning , the construction or lifetime extension of or any other form of investment in nuclear power stations , as well as the management or storage of nuclear waste;


### investment related to the production , processing , distribution , storage or combustion of fossil fuels; ### investment directly or indirectly related to the production , processing , distribution , storage or combustion of fossil fuels; or other fuels whose positive net climate impact has not been sufficiently and scientifically demonstrated at the time of the funding request.


### the jtf resources shall be programmed for the categories of regions where the territories concerned are located , on the basis of the territorial just transition plans established in accordance with article 7 and approved by the commission as part of a programme or a programme amendment. the resources programmed shall take the form of one or more specific programmes or of one or more priorities within a programme. ### the jtf resources shall be programmed for the categories of regions where the territories concerned are located , on the basis of the territorial just transition plans established in accordance with article 7 and approved by the commission as part of a programme or a programme amendment , except for modifications regarding pillars 2 or 3 of the just transition mechanism. the resources programmed shall take the form of one or more specific programmes or of one or more priorities within a programme.


### 1. member states shall prepare , together with the relevant authorities of the territories concerned , one or more territorial just transition plans covering one or more affected territories corresponding to level 3 of the common classification of territorial units for statistics (‘nuts level 3 regions’) as established by regulation (ec) no 1059/2003 of the european parliament and of the council as amended by commission regulation (ec) no 868/201417 or parts thereof , in accordance with the template set out in annex ii. those territories shall be those most negatively affected based on the economic and social impacts resulting from the transition , in particular with regard to expected job losses in fossil fuel production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity. ### 1. member states shall prepare , in full compliance with the partnership principle together with the relevant authorities of the territories concerned as well as local actors , one or more territorial just transition plans covering one or more affected territories corresponding to level 3 of the common classification of territorial units for statistics (‘nuts level 3 regions’) as established by regulation (ec) no 1059/2003 of the european parliament and of the council as amended by commission regulation (ec) no 868/201417 or parts thereof , in accordance with the template set out in annex ii. those territories shall be those most negatively affected based on the economic , labour market and social impacts resulting from the transition , in particular with regard to expected job losses in fossil fuel production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity.


### a description of the transition process at national level towards a climate-neutral economy , including a timeline for key transition steps which are consistent with the latest version of the national energy and climate plan (‘necp’); ### a description of the transition process at national level towards a climate-neutral economy by 2050 , including a clear date for the phase-out of all fossil fuels as well as a pre-2030 date for the phase-out of coal , and a precise timeline including 2030 milestones for key transition steps which are consistent with the latest version of the national energy and climate plan (‘necp’) and the need to fully decarbonise transport.


### an assessment of the transition challenges faced by the most negatively affected territories , including the social , economic , and environmental impact of the transition to a climate-neutral economy , identifying the potential number of affected jobs and job losses , the development needs and objectives , to be reached by 2030 linked to the transformation or closure of greenhouse gas-intensive activities in those territories; ### an assessment of the transition challenges faced by the most negatively affected territories , including the social , labour market , economic , and environmental impact and the co-benefits , in particular in terms of health and well-being , of the transition to a fully renewables-based , highly energy- and resource-efficient , circular and climate-neutral economy , identifying the potential number of affected jobs and job losses as well as potential job creation , other social consequences , the development needs and objectives , to be reached by 2030 linked to the transition to net zero emissions , the transition from fossil fuel use or to the closure of greenhouse gas-intensive activities in those territories;


### a description of the expected contribution of the jtf support to addressing the social , economic and environmental impacts of the transition to a climate-neutral economy; ### a description of the expected contribution of the jtf support to addressing the social , labour market , economic and environmental challenges and opportunities of the transition to a fully renewables-based , highly resource- and energy-efficient , circular and climate-neutral economy with a detailed list of actions planned;


### an assessment of its consistency with other national , regional or territorial strategies and plans; ### an assessment of its consistency with other national , regional or territorial strategies and plans as well as the related union strategies (the european green deal and the european pillar of social rights) as well as the united nations sustainable development goal


### (1) the regulatory framework governing the union’s cohesion policy for the period from 2021 to 2027 , in the context of the next multi-annual financial framework , contributes to the fulfilment of the union’s commitments to implement the paris agreement and the united nations sustainable development goals by concentrating union funding on green objectives. this regulation implements one of the priorities set out in the communication on the european green deal (‘the european green deal’)11 and is part of the sustainable europe investment plan12 providing dedicated financing under the just transition mechanism in the context of cohesion policy to address the economic and social costs of the transition to a climate-neutral and circular economy , where any remaining greenhouse gas emissions are compensated by equivalent absorptions. ### (1) the regulatory framework governing the union’s cohesion policy for the period from 2021 to 2027 , in the context of the next multi-annual financial framework , contributes to the fulfilment of the union’s commitments to implement the paris agreement to limit global temperature increase to below 1.5°c and the united nations sustainable development goals by concentrating union funding on green objectives as well as the european pillar of social rights. this regulation implements one of the priorities set out in the communication on the european green deal (‘the european green deal’)11 and is part of the sustainable europe investment plan12providing dedicated financing under the just transition mechanism in the context of cohesion policy to address the economic and social challenges of the transition to a fully renewables-based , highly resource- and energy-efficient , circular climate-neutral economy as early as possible and by 2050 at the very latest , and to support and accompany union regions and people with social , labour market and economic support.


### 1.1. outline of the expected transition process towards a climate-neutral economy in line with the objectives of the national energy and climate plans and other existing transition plans with a timeline for ceasing or scaling down activities , such as coal and lignite mining or coal fired electricity production ### 1.1. outline of the expected transition process towards a climate-neutral , environmentally sustainable , fully renewables-based , highly resource- and energy-efficient and circular economy by 2040 at the latest , in line with the union and member states commitment to limit the global temperature increase to 1.5°c below pre-industrial levels , the objectives of the national energy and climate plans and other existing transition plans with a legally-binding timeline for ceasing activities that are inconsistent with the union and member states commitments under the paris agreement , such as all activities related to coal and lignite mining or electricity production from fossil fuels


### 1.2. identifying the territories expected to be the most negatively affected and justifying this choice with the corresponding estimation of the economic and employment impacts based the outline of section 1.1 ### 1.2. identifying the people and territories expected to be the most negatively affected and justifying this choice with the corresponding estimation of the economic and employment impacts based the outline of section 1.1


### to fill in only if support is provided to investments to achieve the reduction of greenhouse gas emissions from activities listed in annex i to directive 2003/87/ec: ### deleted


### 1. notes that , as indicated in the annual report of the court of auditors for the financial year 2018 , the estimated level of error in spending on ‘economic , social and territorial cohesion’ increased from 3 % in 2017 to 5 % in 2018; regrets that , even if it should be stressed that errors in the implementation of the budget do not automatically imply a fraud , the positive trend of the last years has been reversed; ### 1. notes that , as indicated in the annual report of the court of auditors for the financial year 2018 , the estimated level of error in spending on ‘economic , social and territorial cohesion’ increased from 3% in 2017 to 5% in 2018; regrets that , even if it should be stressed that errors in the implementation of the budget do not automatically imply a fraud , the positive trend of the last years has been reversed; moreover , finds alerting that the level of errors in relation to public procurement , state aid rules and grant award in 2018 contributed to 16% of eca estimated level of error for high-risk expenditure , whereas in 2017 their impact was just 1%;


### 1. welcomes the opinion of the court of auditors (‘the court’) on the 2018 accounts of the union; highlights that the estimated overall level of error in expenditure from the union budget was 2 ,6 % , which is within the range of error estimates for the last two years and only slightly higher than the all-time low of 2 ,4 % in 2017; reminds that the target material threshold stands at 2 % and calls on the commission to increase its efforts to reach an overall level of error below that threshold; ### 1. welcomes the opinion of the court of auditors (‘the court’) on the 2018 accounts of the union; highlights that the estimated overall level of error in expenditure from the union budget was 2 ,6 % , which is within the range of error estimates for the last two years but slightly higher than the 2 ,4 % in 2017; reminds that the target material threshold stands at 2 % and calls on the commission to increase its efforts to reach an overall level of error below that threshold;


### 3. draws attention to the fact that high-risk expenditures are often subject to complex rules and eligibility conditions which lead to errors and that a number of these errors are compounded by a supplemental layer added by national authorities; recalls that simpler national eligibility rules might help reduce this source of error and result in a smaller administrative burden for beneficiaries; ### 3. draws attention to the fact that high-risk expenditures are often subject to complex rules and eligibility conditions which lead to errors and that a number of these errors are compounded by a supplemental layer added by national authorities; recalls that simpler national eligibility rules might help reduce this source of error and result in a smaller administrative burden for beneficiaries; calls on the simplification measures already introduced in regulation (eu , euratom) 2018/1046 of the european parliament and of the council to be used; furthermore , local and regional authorities as well as national and regional parliaments should take a more active role when setting-up the specific national rules; stresses once again the need to reduce administrative burdens whereas possible while ensuring a full transparency of the processes;


### 3. welcomes the court’s special reports on the european union emergency trust fund for africa1 (‘eutf for africa’) and on the facility for refugees in turkey2 (‘turkey facility’); takes note of the court’s finding that the eutf for africa , which support activities in 26 african countries , is a flexible tool that is faster in launching projects than traditional funding instruments but lacks focus to efficiently steer action towards addressing the unprecedented challenges it faces; considers that the commission should review the design of the eutf for africa , in particular to increase its focus and accelerate its implementation , with a view to making it more effective; notes the court’s finding that the first tranche of eur 3 billion (out of a total of eur 6 billion) mobilised under the turkey facility provided a swift response to the refugee crisis but only half of the projects achieved the expected outcomes; believes that the efficiency of cash-assistance projects should be improved; urges the commission to act upon the court’s recommendations , including for more investments in municipal infrastructure and socio-economic support to address refugees’ needs and the development of a strategy to transition from humanitarian to development assistance; ### deleted


### 3. reiterates its call to have a separate budget line for the daphne specific objective of rec; it takes note of the evolution of the development of an eu-wide survey , with a common methodology and questionnaire , to gather comparable gender-based violence data , on a regular basis , across eu member states; it expects to acknowledge the first outcomes of the pilot exercise of the survey by 2019 in order to comply with the foreseen implementation of the survey from 2020-2021 onwards1 ; ### 3. regrets the tendency of the last years to cut eu funds for combating all forms of violence against women and girls and reaffirms its request to increase resources for the daphne specific objective; reiterates its call to have a separate budget line for the daphne specific objective of rec; it takes note of the evolution of the development of an eu-wide survey , with a common methodology and questionnaire , to gather comparable gender-based violence data , on a regular basis , across eu member states; it expects to acknowledge the first outcomes of the pilot exercise of the survey by 2019 in order to comply with the foreseen implementation of the survey from 2020-2021 onwards1 ;


### 3. welcomes the intention of the court of auditors (the “court”) to move towards an attestation methodology by which the auditor gathers sufficient and appropriate evidence to provide a conclusion on assurance expressed by the responsible entity; recalls the finding of the court that the quality and reliability of national authorities needs to be improved; ### 3. welcomes the intention of the court of auditors (the “court”) to move towards an attestation methodology by which the auditor gathers sufficient and appropriate evidence to provide a conclusion on assurance expressed by the responsible entity; recalls the finding of the court that the quality and reliability of national authorities needs to be improved and that attestation methodology should take account of these facts;


### 3. regrets that the commission does not report on or monitor how the union budget and policies contribute to sustainable development and achieving the sustainable development goals (sdgs); notes that the commission has recently published a reflection paper outlining scenarios for a sustainable europe; regrets , however , that this paper does not include a gap analysis of what more the union needs to do in terms of budget , policy and legislation , nor does it present the contribution of union spending programmes towards implementing the sdgs; ### 3. regrets that , in spite of the union’s commitment to sustainability and the united nations’ sustainable development goals (sdgs) , the special report no 7/2019 of the court of auditors shows that the commission does not report on or monitor how the union budget and policies contribute to sustainable development and achieving the sdgs; notes that the commission has recently published a reflection paper outlining scenarios for a sustainable europe; regrets , however , that this paper does not include a gap analysis of what more the union needs to do in terms of budget , policy and legislation , nor does it present the contribution of union spending programmes towards implementing the sdgs;


### 4. stresses that the absorption of european structural and investment funds (‘esi funds’) has continued to be slower than planned - by the end of 2018 , only 27 ,3% - notes that this value is even lower than the absorption rate of 2011 , the corresponding year of the previous multiannual financial framework; ### 4. stresses that the absorption of european structural and investment funds (‘esi funds’) has continued to be slower than planned - by the end of 2018 , only 27 ,3% - notes that this value is even lower than the absorption rate of 2011 , the corresponding year of the previous multiannual financial framework; eventually this could lead to a rushed spending by the end of the programming period , which can then jeopardise achieving the cohesion goals;


### 4. welcomes the court’s special report on union support for member states in their efforts to tackle radicalisation3 , financed among other sources by the internal security fund (isf) and the justice programme; shares the view of the court that the commission should improve the framework for overall coordination of union funded actions to address radicalisation , to increase practical support to practitioners and policymakers in the member states , and to improve the framework for assessing results; ### deleted


### 4. welcomes the eca's analytical review on european defence and supports its recommendations; calls on the commission as guardian of the treaties to ensure the coherence of all union defence efforts carried out for the implementation of a union activity under the csdp (pesco , edidp , edf , card etc.) and to ensure synergies with nato; considers that a competitive european defence technological and industrial base , enhancing member states’ military capabilities and framing a european defence union must be the key objectives of the union under the next mff; ### 4. welcomes the eca's analytical review on european defence and supports its recommendations; calls for more independent and publicly available assessments of eu civilian and military security and military measures , in particular eu military training missions , capacity building of military actors in third countries (cbsd via icsp) , and border and migration management measures;


### 4. welcomes the use of budget support in general to assist developing countries in their reform efforts and in achieving the sdgs , urges , however , the commission to more clearly assess and define the development outcomes to be achieved through budget support in each case and above all to enhance control mechanisms concerning recipient states' conduct in the fields of corruption , respect of human rights , rule of law and democracy. ### 4. welcomes the use of budget support in general to assist developing countries in their reform efforts and in achieving the sdgs , urges , however , the commission to more clearly assess and define the development outcomes to be achieved through budget support in each case and above all to enhance control mechanisms concerning recipient states' conduct in the fields of corruption , respect of human rights , rule of law and democracy; recalls that domestic resource mobilisation is the centre-piece for sustainable financing of development and one of the five key development challenges to be addressed by budget support; calls on the commission to adopt a trade and investment policy consistent with this goal , which entails among others taking into account least developed countries concerns of economic partnership agreements regarding the erosion of revenues linked to the removal of custom duties and ensuring fair distribution of taxing rights while negotiating tax and investment treaties with developing countries , notably regarding redistribution of tax revenues from natural resources;


### 4. calls on the commission to monitor closely trade agreements with third countries in respect of quality , health and animal welfare requirements; ### 4. calls on the commission to monitor closely trade agreements with third countries in respect of quality , health and animal welfare requirements; notes the need for a level playing field also in terms of environmental standards , and calls on the commission to further develop legislation on due diligence in the supply chain to ensure that standards in union agriculture are not undermined or compromised;


### 5. notes with concern the increase of the estimated level of error in the policy area ‘economic , social and territorial cohesion’ at 5.0 % , which is largely above the 2 % materiality threshold; ### 5. is highly concerned about the increase of the estimated level of error in the policy area ‘economic , social and territorial cohesion’ at 5.0 % , which is largely above the 2 % materiality threshold; calls for urgent action to decrease the error rate in the future , and especially for the new funding period;


### 5. recalls that the reasons behind this low absorption rate not only lie in the decommitment methodology (the so-called “n+3 rule”) , but also in the late adoption of the legislative framework enabling the implementation of the cohesion policy; therefore calls on the commission and the council to ensure proper measures in the next programming period 2021-2027 to avoid the repetition of delayed implementation of esi funds and its domino effect. ### 5. recalls that the reasons behind this low absorption rate not only lie in the decommitment methodology (the so-called “n+3 rule”) , but also in the late adoption of the legislative framework enabling the implementation of the cohesion policy; therefore calls on the commission and the council to ensure proper measures in the next programming period 2021-2027 to avoid the repetition of delayed implementation of esi funds and its domino effect; recalls the fact that delays encountered at the start of the programming period may result in a backlog in the future payment applications; stresses that although the project selection rates are high and a positive absorption rate could be reached by the end of the programming period , we should aim for the high quality and climate friendly project criteria to be respected. in that regard stresses the importance of the commitments made by the paris agreement and achieving the eu climate and energy targets and a climate-neutral eu;


### 5. welcomes that the court did not find major flaws in the commission’s clearance procedures regarding the asylum , migration and integration fund (amif) and isf and that it agrees with the commission's clearance decisions; deplores , however , that three out of the 18 transactions examined by the court contained errors , of which one shared management transaction under amif showed an error rate of 9 ,4 %; urges the commission to address the systemic weaknesses identified by the court , such as a lack of ex post checks of supporting documents in case of ex ante administrative checks of payment claims; calls on the member states to improve legality and regularity checks of the procurement procedures organised by beneficiaries of funds. ### 5. notes that the court did not find major flaws in the commission’s clearance procedures regarding the amif and the isf and that it agrees with the commission's clearance decisions; regrets , however , that the examination by the court revealed deficiencies in the application of public procurement rules and some system weaknesses in the management of the amif and the isf; deplores that three out of the 18 transactions examined by the court contained errors of which one shared management transaction under the amif showed an error rate of 9 ,4 %; urges the commission to address all the weaknesses identified by the court and to follow the court’s recommendations , such as ensuring that when making administrative checks of payment claims documentation required from grant beneficiaries is systematically used to properly examine the legality and regularity of procurement procedures; calls on the member states' authorities responsible for national amif and isf programmes to adequately check the legality and regularity of the procurement procedures organised by beneficiaries of these funds;


### 5. notes that measuring the achievement of union priorities , policies and programmes is challenging; notes , however , that effective performance monitoring is essential in order to grasp the situation , identify emerging issues , and take corrective actions when the objectives are not met; ### 5. notes that measuring the achievement of union priorities , policies and programmes is challenging; notes , however , that effective performance monitoring is essential in order to grasp the situation , identify emerging issues , and take corrective actions when the objectives are not met or in case when the outcomes of one union policy could have adverse impact on achieving the set goals of another policy;


### 6. stresses that the share of payments exceeding legal deadlines reached 8 ,20 % of payments executed by dg env in 2018 (5 ,85 % in 2017 , 3 ,92% in 2016); regrets in particular that payment delays under the life programme reached higher levels in 2018 (10 , 3% compared to 5 , 8% in 2017 and 3 ,9 % in 2016); ### 6. stresses that the share of payments exceeding legal deadlines reached 8 ,20 % of payments executed by dg env in 2018 (5 ,85 % in 2017 , 3 ,92% in 2016); regrets in particular that payment delays under the life programme reached higher levels in 2018 (10 , 3% compared to 5 , 8% in 2017 and 3 ,9 % in 2016); notes that this is the direct result of staffing shortages;


### 11. welcomes the addition of a pillar of military mobility to ten-t policy with the adoption of the action plan in march 2018 and the proposal by the commission to include a new envelope dedicated to military mobility needs of eur 6 ,5 billion under the cef budget for 2021-2027; stresses the importance of analysis of gaps between the military and the ten-t requirements for generating the pipeline for dual-use infrastructure projects that could be supported under the cef 2021-2027 and strengthen ten-t; reiterates that this development reflects the strategic role played by the ten-t in integrating the union’s infrastructure in order to achieve rapid and seamless mobility across the continent , thus further developing the internal market; ### deleted


### 12. insists that the high level of outstanding commitments is mainly due to the slow implementation of european structural investment funds; calls on the commission to speed up the delivery of cohesion policy programmes and related payments with a view to reducing the length of the implementation period , initially , to year n+2; ### 12. reiterates its concern over the high level of outstanding commitments mainly due to the late start of financing of projects and programmes of the 2014 - 2020 financial perspective and due to a slow implementation of european structural investment funds; calls on the commission to speed up the delivery of cohesion policy programmes and related payments without easing of necessary controls with a view to reducing the length of the implementation period , initially , to year n+2; keeping the n+3 period for interreg programmes;


### 2. takes note that the source of those errors is mainly a result of reimbursements of ineligible costs , infringements of internal market rules and lack of support documentation , but is also due to the previous year’s overall low rates of reimbursement and payments as well as fewer financial instruments having been included in the audit; ### 2. takes note that the source of those errors is mainly a result of reimbursements of ineligible costs , infringements of internal market rules and lack of support documentation , but is also due to the previous year’s overall low rates of reimbursement and payments as well as fewer financial instruments having been included in the audit; furthermore , stresses that the performance based audit does not capture the entirety of cohesion policy spending , which is built on a series of horizontal principles , such as gender equality , non-discrimination and sustainable development , and based on the partnership principle , therefore , important side-effects are hard to measure , especially in the social field , so a wider range of indicators would be preferred; points out as well that respective changes of the administrative systems by some member states (nuts classification) should also be taken into account during the collection of data;


### 2. is satisfied with the work carried out by the five decentralised agencies which are under its remit and which carry out technical , scientific or managerial tasks that help the union’s institutions to elaborate and implement policies in the area of environment , climate , public health and food safety , as well as with the way those agencies’ budgets are implemented; ### 2. is satisfied with the work carried out by the five decentralised agencies which are under its remit and which carry out technical , scientific or managerial tasks that help the union’s institutions to elaborate and implement policies in the area of environment , climate , public health and food safety , as well as with the way those agencies’ budgets are implemented; stresses that , given the scale of upcoming challenges , appropriate funding must be guaranteed for the agencies and commission dgs working in the areas of environment , climate , public health and food safety , and that further cuts or a failure to increase the budgets will have knock-on effects for the quality of life of european citizens;


### 2. points to the eca special report no 35/2018 (“transparency of eu funds implemented by ngos: more effort needed”) , which finds that transparency is often lacking regarding the implementation of union funds by non-governmental organisations (ngos) , particularly when funds are sub-contracted by un bodies; calls on the commission to improve its systems for tracing the use of funds implemented by ngos and ensure and verify the correct application of rules and procedures , in line with the eca’s recommendations; ### 2. strongly commends the efforts of civil society worldwide in promoting and defending human rights , especially at a time of shrinking civil society space and the questioning of the universality of human rights; stresses the importance for the eu to strengthen its support for civil society organisations in the forthcoming multiannual financial framework (mff); while agreeing on the importance of the principles of transparency and accountability in relation to the spending of public funds for civil society , notes with concern that certain insistent calls in this direction in fact hide a more nefarious agenda which aims precisely to muzzle civil society and critical voices by fuelling suspicion and bureaucratic overreach;


### 2. reiterates its concerns as regards the use of development funds for non-development objectives and underlines that funding which does not fulfil official development assistance criteria must be sourced from other instruments than the development cooperation instrument (dci); underlines the importance of ensuring human rights standards in all cooperation under the dci and insists that in order to successfully combat poverty in the long-term , the union must address the causes of poverty and inequalities; ### 2. stresses that the union’s ambition to forge a “partnership of equals” with african , caribbean and pacific countries implies full respect of the “ownership principle” , in line with the union’s international commitments on aid effectiveness; reiterates its concerns as regards the use of development funds for non-development objectives and underlines that funding which does not fulfil official development assistance criteria must be sourced from other instruments than the development cooperation instrument (dci); in particular , urges the union and its member states to refrain from imposing aid conditionalities regarding migration and trade reforms , which contravenes the development effectiveness principles; underlines the importance of ensuring human rights standards in all cooperation under the dci and insists that in order to successfully combat poverty in the long-term , the union must address the root causes of poverty and inequalities;


### 2. notes that most rural development actions which were audited produced the expected results; asks the commission and member states to improve their performance framework where needed and to introduce further simplification measures , such as simplified cost options; regrets that the court of auditors identified weaknesses in the use of result indicators; ### 2. notes that most rural development actions which were audited produced the expected results; asks the commission and member states to improve their performance framework where needed and to introduce further simplification measures , such as simplified cost options; regrets that , as in previous reports , the court of auditors again identified weaknesses in the use of result indicators , including gaps in the quality of result indicators1a; stresses that , if the proposed shift to a performance-based cap is to be achieved , it will require the development of a comprehensive set of common result indicators and the thorough application of those indicators;


### 14. insists that the commission propose to introduce a specific mechanism into the cap rules to support the farmers confronted with land-grabbing malpractices , giving them , in particular , the opportunity to lodge a complaint with the commission; ### 14. insists that the commission propose to introduce a specific mechanism into the cap rules to support the farmers confronted with land-grabbing malpractices , giving them , in particular , the opportunity to lodge a complaint with the commission[1] that should be checked by the commission as a matter of urgency;


### 16. is particularly concerned by the alarming information provided by the press and ngos as to the dramatic situation of the most vulnerable migrants in the hotspots , in particular , child migrants and refugee women; calls on the commission to take specific measures in cooperation with the members states’ authorities in order to prevent the misuse of union funds and avoid abuse and trafficking , and to ensure that union funds are used to protect fundamental rights; ### 16. is particularly concerned by the alarming information provided by the press and ngos as to the dramatic situation of the most vulnerable migrants in the hotspots , in particular , child migrants and refugee women; calls on the commission to take specific measures in cooperation with the members states’ authorities in order to avoid abuse and trafficking , and to ensure that union funds are not misused and are used to protect migrants’ fundamental rights;


### b. whereas the european parliament has repeatedly asked the commission to promote and implement the use of gender mainstreaming , gender budgeting and gender impact assessment in the relevant union policy areas and the court of auditors to incorporate a gender perspective , including gender-disaggregated data , into its reports on the implementation of the union budget; ### b. whereas the european parliament has repeatedly asked the commission to promote and implement the use of gender mainstreaming , gender budgeting and gender impact assessments in all the union policy areas and the court of auditors to incorporate a gender perspective , including gender-disaggregated data , into its reports on the implementation of the union budget;


### 9. is concerned about the risk of undervaluation of supplies of e-commerce goods from third countries and calls on the commission to carry out sufficient control and monitoring activities in the member states to ensure better cooperation; ### 9. is concerned about the risk of undervaluation of supplies , in particular of e-commerce goods , from third countries and calls on the commission to carry out sufficient control and monitoring activities in the member states to ensure better cooperation; criticises the underfinancing and understaffing of the european public prosecutor's office (eppo) during the build-up-phase and the underestimation of the needs by the commission; underlines that eppo has to process up to 3000 cases per year; emphasises that eppo is in need of 76 additional posts and eur 8 million to become fully operational as foreseen by the end of 2020; strongly encourages that the commission presents a draft amending budget; reminds that the parliament absolutely opposes that olaf is reduced by 45 posts;


### 22. regrets that for the 26th year in a row payments are materially affected by error because the supervisory and control systems are only partially effective; ### 22. regrets that for the 26th year in a row payments are materially affected by error because the supervisory and control systems are only partially effective; stresses the fact that member states had sufficient information available to prevent , detect and correct a significant proportion of errors prior to declaring the expenditure to the commission and that had this information been used the estimated error rate would have been considerably lower; calls on the commission to put in place the necessary instruments to further improve error detection by member states’ authorities;


### 28. notes that the court audited transactions worth a total of eur 120 ,6 billion and that ‘natural resources’ makes up the largest share of the overall population (48 %) , while the weight of mff 1b ‘cohesion’ is relatively small (around 20 %); ### 28. notes that the court audited transactions worth a total of eur 120 ,6 billion and that ‘natural resources’ makes up the largest share of the overall population (48 %) , while the weight of mff 1b ‘cohesion’ is relatively small (around 20 %); suggests that the court consider both the share of the total eu expenditure and error related risk when deciding on the division of the next audit share of the overall population;


### 29. is surprised that the court decided that natural resources should make up the largest share of the court’s overall audit population for its das examination whilst the cap direct payments are not prone to errors; ### 29. is surprised that the court decided that natural resources should make up the largest share of the court’s overall audit population for its annual financial and compliance audit whilst the cap direct payments are not prone to errors;


### 32. points out , however , that their impact was less than in 2017 (2018: 68 % , 2017: 93 %); notes that this is because in 2018 the court found a higher number of errors in relation to public procurement , state aid rules and grant award procedures; ### 32. points out , however , that their impact was less than in 2017 (2018: 68 % , 2017: 93 %); notes that this is because in 2018 the court found a higher number of errors in relation to public procurement , state aid rules and grant award procedures; calls on the commission to pay close attention to these categories of errors and assess whether they present a risk to the free competition or even point to the possible corruption cases; in case of the later the commission should not hesitate to take corrective measures and inform the european public prosecutor’s office;


### 53. notes that despite improvements of its analysis of the impact of corrective action the commission has not eliminated the risk that the impact of corrective actions is overstated; ### 53. regrets that despite improvements of its analysis of the impact of corrective action the commission has not eliminated the risk that the impact of corrective actions is overstated; points out that in such a case all reported rer in ampr presented an unreliable and falsely presented true error rate;


### 54. points out , in particular , that for more than three quarters of 2018 expenditure , commission directorates general base their estimates of amount at risk on data provided by national authorities whilst it appears from the aars of the commission directorates general concerned (dg agri , dg regio and dg empl) that the reliability of member states control reports remains a challenge; ### 54. points out , in particular , that for more than three quarters of 2018 expenditure , commission directorates general base their estimates of amount at risk on data provided by national authorities whilst it appears from the aars of the commission directorates general concerned (dg agri , dg regio and dg empl) that the reliability of member states control reports remains a challenge; calls on the commission to closely examine the control procedures put in place in these member states for risk that the reliability of controls might be politically motivated;


### 55. repeats its request that the commission and the member states put in place sound procedures to confirm the timing , origin and amount of corrective measures and to provide information reconciling , as far as possible , the year in which payments is made , the year in which the related error is detected and the year in which recoveries or financial corrections are disclosed in the notes to the accounts; ### 55. repeats its request that the commission and the member states put in place sound procedures to confirm the timing , origin and amount of corrective measures and to provide information reconciling , as far as possible , the year in which payments is made , the year in which the related error is detected and the year in which recoveries or financial corrections are disclosed in the notes to the accounts; notes with concern that some member states' authorities are not detecting any frauds , which casts a doubt over the lack of independence of these authorities;


### 68. points out that the risk of insufficient payment appropriations is all the greater given that the implementation of the esi funds has been even more delayed than in the previous mff; ### 68. points out that the risk of insufficient payment appropriations is all the greater given that the implementation of the esi funds has been even more delayed than in the previous mff; in this respect points to the fact that in 9 out of 13 member states who joined the union since 2004 the outstanding commitments present more than 15% of their annual government expenditures and that in case that not enough payment appropriations will be available to cover all amounts this could present a serious financial and political challenges both in these countries as within the union;