### 1. welcomes the annual sustainable growth strategy 2022 pledge to continue placing a sustainable , fair and green transition at the heart of the european semester (semester) process , enshrining environmental sustainability , climate neutrality , public health and the wellbeing of citizens as guiding principles for the eu’s recovery. ### 1. welcomes the annual sustainable growth strategy 2022 pledge to continue placing a sustainable , fair and green transition at the heart of the european semester (semester) process , enshrining environmental sustainability , climate neutrality , public health and the wellbeing of citizens as guiding principles for the eu’s recovery; recalls that economic growth is not an end in itself , and that the eu’s long-term priority objective as set out in the 8th environmental action programme is to ensure that , by 2050 at the latest , people live well within the planetary boundaries , in a wellbeing economy where nothing is wasted , growth is regenerative , climate neutrality within the eu has been achieved , biodiversity has been conserved , ecosystems thrive and nature is protected and restored , and inequalities have been significantly reduced;


### 2. stresses that the recovery and resilience facility (rrf) requires that the european semester be reshaped to ensure the delivery of high-quality and ambitious national recovery and resilience plans (nrrps); considers that the nrrps are an opportunity for the member states to address identified structural challenges and to make their economies more shock-resistant , sustainable and inclusive in line with the european pillar of social rights and the sustainable development goals; ### 2. stresses that the recovery and resilience facility (rrf) requires that the european semester be reshaped to ensure the delivery of high-quality and ambitious national recovery and resilience plans (nrrps); considers that the nrrps are an opportunity for the member states to address identified structural challenges and to make their economies more shock-resistant , sustainable and inclusive in line with the european pillar of social rights and the sustainable development goals and the eu’s climate commitments;


### 2. stresses the importance of accelerating the alignment of the semester process with the eu’s long-term climate and environmental objectives as set up under the european green deal and reinforced in the fit for 55 package; welcomes the insertion , at each european semester country report , of dedicated sections on the member state’s progress in the different sdg areas , as well as the set-up of additional indicators to monitor and guide member states’ performance in view of eu green deal policy goals; ### 2. stresses the importance of accelerating the alignment of the semester process with the eu’s long-term climate and environmental objectives as set up under the 8th environmental action programme , including the objective of reaching climate-neutrality by 2050 at the latest as enshrined in the eu climate law; welcomes the insertion , at each european semester country report , of dedicated sections on the member state’s progress in the different sdg areas , and calls on the commission to set up additional indicators to monitor and guide member states’ performance in view of the priority objectives and enabling conditions set out in the 8th environmental action programme;


### (new) ### 2 a. stresses that 37% of national plans need to be dedicated to green spending , following the specific requirements set down in annex vi of the rrf regulation and that all measures in the nrrps need to fully respect the “do no significant harm” principle; urges the commission to adopt all necessary steps to effectively monitor , audit and enforce the full implementation of these requirements , as well as on the non-regression of eu environmental law; calls on the commission to analyse all payment requests in this light and ensure full compliance of all milestones and targets reached with the regulation before granting payments;


### 3. welcomes the recovery and resilience scoreboard , which is designed to monitor progress on the implementation of the rrf; calls on the commission to develop tools to ensure the robust implementation of the nrrps and measure the attainment of targets and milestones as a prerequisite for the disbursement of rrf funds; ### 3. welcomes the recovery and resilience scoreboard , which is designed to inform the wider public about progress on the implementation of the rrf; regrets that indicators are mostly output-based and lack a performance or results-based dimension; urges the commission to concentrate on such results-based evaluations in its annual reports on the rrf and the mid-term implementation report;


### 3. notes that , meeting the eu’s ambitious green deal agenda will require significant investment and that , according to the commission , the private and public investment gap to cater for the green transition are estimated at nearly eur 520 billion per year , for the next decade; further notes that whereas a substantial share of the investment will be borne by the private sector , public investment will have to increase as well; ### 3. notes that , meeting the eu’s ambitious green deal agenda will require significant investment and that , according to the commission , the private and public investment gap to cater for the green transition are estimated at nearly eur 520 billion per year , for the next decade; stresses that this requires further policy action to redirect financial flows away from harmful economic activities towards sustainable economic activities; further notes that whereas a substantial share of the investment will be borne by the private sector , public investment will have to increase as well; underlines that significant fiscal space could be created by phasing out direct and indirect environmentally harmful subsidies , in particular fossil fuel subsidies;


### 4. calls therefore on the commission to extend the current semester approach to deliver on its political commitment to make it a governance tool supporting the achievement of the european green deal and the sustainable development goals; underlines the need to further integrate , without weakening the monitoring process of this extended european semester , the union’s climate , environmental , including biodiversity and social objectives in a more comprehensive manner to provide member states with analysis and indicators beyond economic indicators only , thus better reflecting the current challenges faced by member states in reducing their ecological footprint and making the process a driver of change towards a sustainable wellbeing for all in europe; ### 4. calls therefore on the commission to extend the current semester approach to deliver on its political commitment to make it a governance tool supporting the achievement of the 8th environmental action programme , the european green deal and the sustainable development goals; underlines the need to further integrate , without weakening the monitoring process of this extended european semester , the union’s climate , environmental , including biodiversity , and social objectives in a more comprehensive manner to provide member states with analysis and indicators beyond economic indicators only , thus better reflecting the current challenges faced by member states in reducing their ecological footprint and making the process a driver of change towards a sustainable wellbeing for all in europe within the planetary boundaries; stresses that the european semester should fully uphold the “do no significant harm” principle; calls for the inclusion of climate and environmental indicators in the scoreboard for the macroeconomic imbalance procedure to better identify and address macroeconomic risks related to sustainability factors;


### (new) ### 4 a. calls on the commission to address the distributional consequences of the transition to a climate-neutral economy in the upcoming country reports for 2022 and to analyse the distributional fairness of taxation and social policies in relation to the transition in the country reports;


### (new) ### 4 b. calls on the commission to develop a climate indicator to assess the discrepancy between the structure of member states’ budgets and the paris-aligned scenario for each of their national budgets; stresses the need for this indicator to provide member states with information on their trajectory within the framework of the paris agreement in order to ensure the achievement of climate-neutrality targets by 2050; expects the climate indicator to be used as a guide for the european semester and reflected in the country-specific recommendations (csrs);


### 5. recalls that public funding is key to achieving the 2030 climate objectives and addressing other social and economic challenges; considers that all options to incentivise member state investments to tackle those challenges should be on the table , specifically the revision of the stability and growth pact to promote a future-oriented economy and the extension of lending and borrowing capacities at eu level , building on nextgenerationeu; ### 5. recalls that meeting the eu’s ambitious green deal agenda will require significant investment and that , according to the commission , the private and public investment gap to cater for the green transition is estimated at nearly eur 520 billion per year for the next decade; further notes that , whereas a substantial share of the investment will be borne by the private sector , public investment will have to increase as well; underlines that significant fiscal space could be created by phasing out direct and indirect environmentally harmful subsidies , in particular fossil fuel subsidies , and redirecting financial flows to sustainable investments and actions and to fill part of the investment gap for the green transition; in addition reiterates its call for the reorientation of taxation systems towards an increased use of environmental taxation and to fight tax evasion and tax avoidance which would also contribute towards creating the needed fiscal space; considers that all options to incentivise member state investments to tackle those challenges should be on the table , specifically the revision of the stability and growth pact to promote a future-oriented economy and the extension of lending and borrowing capacities at eu level , building on nextgenerationeu;


### 5. stresses that the european semester should support the union’s effort to achieve climate neutrality by 2050 at the latest; calls therefore on the commission to assess the discrepancy between the structure of the member states’ budgets and a paris-aligned scenario for each of their national budgets; thus enabling the commission to provide recommendations on member states’ climate debt and climate-friendly investment gap associated to the union’s 2030 objective and the objective of climate neutrality by 2050 at the latest; ### 5. stresses that the european semester should support the union’s effort to achieve climate neutrality by 2050 at the latest; calls therefore on the commission to assess the discrepancy between the structure of the member states’ budgets and a paris-aligned scenario for each of their national budgets; thus enabling the commission to provide recommendations on member states’ climate debt and climate investment gap associated to the union’s 2030 objective and the objective of climate neutrality by 2050 at the latest , as well as on their commitment to phase out fossil fuel subsidies in a timeframe consistent with the objective of limiting global warming to 1.5°c;


### 5. points out that the successful roll-out of the rrf will help to make eu economies and societies more sustainable , inclusive , resilient and better prepared for the green and digital transitions; ### 5. points out that the successful roll-out of the rrf will help to make eu economies and societies more sustainable , green , inclusive , resilient and better prepared for the green and digital transitions;


### 6. believes that rrf governance , notably the assessment and approval of the nrrps by the commission and the council , provides a solid foundation for discussions on how to allow sufficient public investment under the fiscal rules; ### 6. believes that rrf governance , notably the assessment and approval of the nrrps by the commission and the council , lacks democratic control through the european parliament and national parliaments and reduces budgetary priority-setting to a technocratic exercise between the commission and member state governments; highlights that this lack of democratic accountability weakens the commission’s ability to enforce ambitious reforms and investment projects in the member states; calls specifically for the spending financed by rrf loans to benefit from special treatment in the eu fiscal framework , as otherwise borrower countries will have to reduce their non-rrf spending once the currently suspended fiscal rules are re-activated;


### 6. recalling the importance of ensuring the semester is aligned with the recovery and resilience facility and the need to swiftly address the covid 19 pandemic impact on the european economy; highlights that the rrf presents an unprecedented and unique opportunity for all member states to address key structural challenges and investment needs and transform their economies to make them sustainable , more competitive and more resilient to future shocks; stresses the importance of implementing investment policies and sustainable reforms in line with the european priorities identified in the rrf; is of the view that the rrf should serve as an inspiration for the review of the framework for macroeconomic governance , notably in identifying common structural challenges and investment needs; further stresses that this review should design an enabling framework for member states to accelerate their green transition and close their climate and environment friendly investment gap; ### 6. recalling the importance of ensuring the semester is aligned with the recovery and resilience facility and the need to swiftly address the covid 19 pandemic impact on the european economy; highlights that the rrf presents an unprecedented and unique opportunity for all member states to address key structural challenges and investment needs and transform their economies to make them sustainable , and more resilient to future shocks; stresses the importance of proper implementation of the reforms and investments in the each of the recovery and resilience plans with full respect of the “do no significant harm” principle and carefully monitoring the full implementation of the non-regression of eu environmental law; calls on the commission to analyse all payment requests in this light and ensure full compliance of all milestones and targets reached with the regulation before granting payments , in particular compliance with the “do no significant harm” principle and the specific requirements of annex vi where relevant; is of the view that the rrf should serve as an inspiration for the review of the framework for macroeconomic governance , notably in identifying common structural challenges and investment needs , ; further stresses that this review should design an enabling framework for member states to accelerate their green transition , close their climate and environmental investment gap and ensure a rapid phase out of all environmentally harmful subsidies , in particular fossil fuel subsidies;


### 6. notes that the general escape clause of the stability and growth pact will continue to be applied in 2022 and is expected to be deactivated as of 2023; ### 6. notes that the general escape clause of the stability and growth pact will continue to be applied in 2022 and is expected to be deactivated as of 2023; highlights that the deactivation of the general escape clause should be conditional upon the health , social and economic situation across member states in order to ensure that fiscal support is provided for as long as needed;


### 7. recalls that the design of nextgenerationeu requires debt repayment through new own resources of the eu budget. ### 7. recalls that the design of nextgenerationeu requires debt repayment through new own resources of the eu budget; expects the commission to put forward an ambitious basket of new own resources in 2023 , so the revenues are sufficient to cover the debt servicing from 2028;


### 7. believes that the review of the eu’s economic governance framework is necessary; agrees with the european fiscal board on the importance of having a clear pathway towards a reviewed fiscal framework , preferably prior to the deactivation of the general escape clause; ### 7. believes that the review of the eu’s economic governance framework is necessary; agrees with the european fiscal board on the importance of having a clear pathway towards a reviewed fiscal framework , preferably prior to the deactivation of the general escape clause; stresses that a premature application of the current fiscal rules under the stability and growth pact would jeopardise both the post-covid recovery and the required transition to a carbon neutral economy;


### (new) ### 7 a. recalls that the degree to which member states have addressed their 2019 and 2020 csrs in the nrrps varies significantly between member states; emphasises that covid-19 has demonstrated that improving the resilience of public institutions to shocks should be a reform priority for many member states;


### (new) ### 7 b. highlights that , beyond the commitment period of the rrf , a modern and effective framework for eu common fiscal policy needs to be developed; emphasises that , to carry democratic legitimacy , such a framework needs to overcome the european semester’s shortcomings in parliamentary accountability and lack of democratic oversight; is of the view that the rrf offers important lessons and can serve as an inspiration for identifying common structural challenges and investment needs.


### responsible fiscal policies ### responsible and sustainable fiscal policies


### 8. is convinced that the coordination of national fiscal policies remains crucial in underpinning the recovery; notes that the overall fiscal stance , taking into account national budgets and the rrf , is projected to remain supportive in 2022 to sustain the recovery; agrees with the commission that member states with low or medium levels of debt should pursue or maintain a supportive fiscal stance , and that member states with high levels of debt should use the rrf to finance additional investment to support the recovery , while pursuing a prudent fiscal policy; agrees with the commission that all member states should preserve or broadly preserve their national financed investment; ### 8. is convinced that the coordination of national fiscal policies remains crucial in underpinning the recovery; notes that the overall fiscal stance , taking into account national budgets and the rrf , is projected to remain supportive in 2022 to sustain the recovery; calls for a continued expansionary fiscal stance for as long as needed to support the recovery from the covid-19 pandemic and a green , digital and inclusive transformation while ensuring fiscal sustainability; reiterates that supportive national fiscal policy is important to ensure that the rrf’s impact is lasting , sustainable , and fairy distributed across societies and regions; calls for the spending financed by rrf loans to benefit from special treatment in the eu fiscal framework , as otherwise borrower countries will have to reduce their non-rrf spending once the currently suspended fiscal rules are re-activated; agrees with the commission that all member states should preserve or broadly preserve their nationally financed investment and stresses that these should be countercyclical and targeted towards investments that ensure long-term environmental and social sustainability;


### 9. considers that it is crucial to coordinate national reform and investment efforts and the exchange of best practices in order to increase the convergence and resilience of our economies , promote sustainable and inclusive growth , and improve institutional frameworks; ### 9. considers that it is crucial to coordinate national reform and investment efforts and the exchange of best practices in order to increase the convergence and resilience of our economies , promote sustainable and inclusive growth , and improve institutional frameworks; stresses that the alignment of the semester process with the eu’s long-term climate , environmental and social objectives is crucial and must be accelerated , as per the commission’s engagements under the green deal;


### 10. highlights that the rrf presents an unprecedented and unique opportunity for all member states to address key structural challenges and investment needs and insists that all recovery and resilience plans address all requirements of the rrf regulation , in particular the six pillars; highlights the interplay between the european semester and the rrf; calls on the member states to make the most of this opportunity and to use it to transform their economies and make them sustainable , more competitive and more resilient to future shocks; highlights the role of the european parliament in the implementation of the rrf , as enshrined in the rrf regulation; ### 10. highlights that the rrf presents an unprecedented and unique opportunity for all member states to address key structural challenges and investment needs and insists that all recovery and resilience plans address all requirements of the rrf regulation , in particular the six pillars; highlights the interplay between the european semester and the rrf; calls on the member states to make the most of this opportunity and to use it to transform their economies and make them sustainable , greener , more competitive and more resilient to future shocks; highlights the role of the european parliament in the implementation of the rrf , as enshrined in the rrf regulation; stresses the importance of proper implementation of the reforms and investments under the recovery and resilience plans with full respect of the “do no significant harm” principle and carefully monitoring the full implementation of the non-regression of eu environmental law; calls on the commission to analyse all payment requests in this light and ensure full compliance of all milestones and targets reached with the regulation before granting payments , in particular compliance with the “do no significant harm” principle and the specific requirements of annex vi where relevant;


### 12. notes that many member states are having to contend with old and new structural challenges that are hindering their growth potential; highlights , therefore , that tackling structural challenges is crucial for a sustainable recovery and continued growth; takes the view that implementing reforms to address old and new structural vulnerabilities is key not only to improving the ability to withstand and cope with existing challenges , but also to accomplishing the twin transitions in a sustainable , fair and inclusive manner and to reducing social inequalities; points to the lack of national ownership as one of the main weaknesses in enacting reforms aimed at addressing structural deficiencies; ### 12. notes that many member states are having to contend with old and new structural challenges that are hindering their growth potential; highlights , therefore , that tackling structural challenges is crucial for a long-lasting sustainable recovery and continued growth; takes the view that implementing reforms to address old and new structural vulnerabilities is key not only to improving the ability to withstand and cope with existing challenges , but also to accomplishing the twin transitions in a sustainable , fair and inclusive manner and to reducing social inequalities; points to the lack of national ownership as one of the main weaknesses in enacting reforms aimed at addressing structural deficiencies;


### 14. recognises the importance of the macroeconomic imbalance procedure in identifying , preventing and addressing macroeconomic imbalances in the eu; highlights that continuous monitoring and vigilance will be needed and that member states should address emerging imbalances through reforms that enhance economic and social resilience and promote the digital transformation and green and just transitions; ### 14. recognises the importance of the macroeconomic imbalance procedure in identifying , preventing and addressing macroeconomic imbalances in the eu; highlights that continuous monitoring and vigilance will be needed and that member states should address emerging imbalances through reforms that enhance economic and social resilience and promote the digital transformation and green and just transitions; calls for the mip recommendations to become more forward-looking and symmetrical with regard to over- and undershooting target values; stresses , in particular , that the current account thresholds should be adjusted so as to apply a symmetric approach between account surpluses and deficits; further calls for the introduction of indicators on households’ disposable income , poverty , capital unit costs , as well as indicators to measure progress towards investment in environmental sustainability and innovation , with respective alert thresholds signalling the build-up of imbalances;


### a. whereas the eib signed loans for eur 95 billion in 2021; ### a. whereas the eib signed loans for eur 95 billion in 2021 , of which eur 75 billion were linked to the eib group operations and the remaining loans were in the framework of the european guarantee fund (egf).


### 3. welcomes the new cohesion orientation , which commits to increasing eib lending activities to 45 % of total eu-27 lending in cohesion regions by 2025 and to 23 % in least developed regions; ### 3. welcomes the new cohesion orientation , which commits to increasing eib lending activities to 45 % of total eu-27 lending in cohesion regions by 2025 and to 23 % in least developed regions; stresses the importance of increased climate action in the regions concerned with a view to promoting economic , social and territorial convergence and cohesion and a just transition leaving no-one behind; calls on the eib to continue addressing systemic deficiencies that prevent certain regions or countries from taking full advantage of eib financial opportunities , inter alia by strengthening its efforts to expand its loan activities by providing technical assistance and advisory support;


### 4. applauds the timeliness of the european guarantee fund to help mitigate the negative social and economic impacts of the covid-19 pandemic; ### 4. applauds the timeliness of the european guarantee fund to help mitigate the negative social and economic impacts of the covid-19 pandemic; calls for a detailed analysis of its impact , its role in the recovery , and its additionality , transparency and adequacy , including geographical coverage , as the instrument is phased out;


### 5. takes note of the new environmental and social sustainability framework (essf); calls for its swift implementation; ### 5. takes note of the new environmental and social sustainability framework (essf); welcomes the adoption of sustainable finance as an operating model; calls for its swift implementation and to establish clear and stringent procedures to carry out its due diligence , and to ensure that all provisions in the essf are properly reflected in contracts;


### 6. welcomes the fact that 43 % of lending in 2021 was climate and environment related and applauds the intention to meet the climate lending target in 2022; stresses that the climate bank roadmap (cbr) alone is not enough to ensure alignment with the objective of the paris agreement of limiting global warming to 1.5°c; calls for an immediate halt to carbon markets and offsetting and for all action plans for the implementation of the cbr to be made public; ### 6. welcomes the fact that 43 % of lending in 2021 was climate and environment related and applauds the intention to meet the climate landing target in 2022; reiterates that all financial flows of the bank should be fully consistent with net zero emissions by 2050 at the latest , and with the union’s increased climate objective for 2030; stresses that the climate bank roadmap (cbr) alone is not enough to ensure alignment with the paris objective to limit global warming to 1.5°c; calls for an immediate halt to carbon markets and offsetting and for all action plans for its implementation to be made public in order to provide an overview of the actions planned to achieve the targets , and to assess their adequacy;;


### 7. looks forward to the cbr’s mid-term review; calls for it to include a solid assessment of less carbon-intensive alternatives and ‘scope 3’ emissions for each project; expects detailed annual progress reports on the cbr , including the degree to which it is aligned with the paris agreement; ### 7. looks forward to the cbr’s mid-term review; expects all lending to be harmonized with the 1.5 degree objective and the eu climate and environmental commitments; calls for it to include a solid assessment of less carbon-intensive alternatives and“scope 3” emissions for each project; expects detailed annual progress reports including the degree of paris alignment and the ghg emissions reduction linked to all operations as of 2023;


### 8. welcomes the paris alignment for counterparties; reiterates its call for financial intermediaries and not only corporate clients to have decarbonisation plans as soon as possible and by the end of 2025 at the latest; calls for a focus on the credibility of short-term decarbonisation plans; expects the eib to systematically check and ensure compliance , in particular as regards essf implementation; ### 8. welcomes the paris alignment of counterparties and expects its full implementation; reiterates its call for financial intermediaries and not only corporate clients to have decarbonisation plans as soon as possible and by the end of 2025 at the latest; calls for a focus on the credibility of short-term decarbonisation plans and their full alignment with the 1.5°c target; calls for stringent implementation of these plans and ghg emissions reduction targets , and calls for them to be included in contract clauses between the eib and its clients; expects the eib to systematically check and ensure compliance in particular as regards essf implementation;


### 9. welcomes the eib’s climate adaptation plan and the commitment to grow the share of spending on climate action for adaptation to 15 % of the overall climate target by 2025; ### 9. welcomes the adaptation plan and the commitment to grow the share of climate action for adaptation to 15% of the overall climate target by 2025; reiterates its call for harmonized screening methods to assess physical climate risk for all its lending activities , including those through financial intermediaries;


### 10. expresses , in view of the upcoming review of the energy lending policy , its full support for the statement of president hoyer: ‘we believe that we have a mission to concentrate on sustainability and achieving the paris goals with the means of a long-term investor institution.[...] therefore i don’t see a change in our energy lending policy’; calls for the eib to retain the possibility to apply stricter criteria than the eu taxonomy and finance fossil-free energy only , and in particular to exclude financing for so-called low-carbon gas , especially for district heating , grey or blue hydrogen and forest biomass; ### 10. expresses , in view of the upcoming review of the energy lending policy , its full support for the statement of president hoyer: ‘we believe that we have a mission to concentrate on sustainability and achieving the paris goals with the means of a long-term investor institution.[...] therefore i don’t see a change in our energy lending policy’; calls for the eib to retain the possibility to apply stricter criteria than the eu taxonomy and finance fossil-free energy only , and in particular to exclude financing for so-called low-carbon gas , especially for district heating , grey or blue hydrogen and forest biomass , as they are bound to be stranded assets;


### 11. regrets the delays in the transport lending policy review; expects a proposal fully aligned with the 1.5°c target of the paris agreement; expects no new loans to be granted that hinder transport decarbonisation or the transition towards zero emission mobility; ### 11. regrets the delays in the transport lending policy review; expects a proposal fully aligned with 1.5°c , including a vision for the eib’s role in decarbonising mobility with a specific focus on company level transition; expects no new loans to be granted that hinder transport decarbonisation or the transition towards a more sustainable and affordable zero emission mobility with rail as the backbone; expects , in particular , no new financing to be awarded for the expansion of airports or an increase in air traffic , for increased road capacity , and in particular no highways nor motorways , for portexpansions in europe and related infrastructure , including the creation of special economic zones , or for the shipping of liquefied natural gas , including vessels; warns against the high risk of stranded assets in the transport sector; believes that more funding should be directed at zero emission mobility , especially cycling and public transport development and modernisation , multimodal services , also in the context of sustainable urban design projects , better transport services for underserved communities and localities , and electrification of transport; calls for more funding to decarbonise the maritime sector , especially developing wind-powered vessels both for commercial and passenger shipping.


### 12. welcomes the updated essf standard 4 and calls for its diligent implementation; welcomes the efforts made to strengthen biodiversity risk assessment and due diligence; is concerned , however , at the use of outdated data; expects the eib to comply with articles 11 and 191 tfue and to stop disbursing funds , and , if necessary , withdraw them , if there is evidence or a serious risk of adverse impacts; ### 12. welcomes the updated essf standard 4 , namely the inclusion of “halt and reverse biodiversity loss” as a principle , and limiting offsetting , in particular in high biodiversity areas , and calls for its diligent implementation; welcomes the efforts made to strengthen biodiversity risk assessment and due diligence through the integrated biodiversity assessment tool; is concerned , however , at the use of outdated data provided by project promoters and used in the modelling; expects the eib to comply with articles 11 and 191 tfue by diligently applying the precautionary principle and to stop disbursing funds , and , if necessary , to withdraw them , if there is evidence or a serious risk of adverse impacts on climate and/or the environment and/or local communities;


### 13. acknowledges the challenges and progress achieved during the implementation of the natural capital financing facility; calls for an independent evaluation embedded in a broader assessment of supporting ecosystem and biodiversity restoration; ### 13. acknowledges the challenges and progress achieved during the implementation of the natural capital financing facility reiterates its call for a grant component to be provided under the facility or any successor instrument to support initial scaling up of local projects and facilitate revenue generation; calls for an independent evaluation embedded in a broader assessment of supporting ecosystem and biodiversity restoration;


### 15. welcomes the inclusion of labour rights in essf standard 8; ### 15. welcomes the inclusion of labour rights in essf standard 8 covering all supply chains linked to eib operations; calls for its stringent implementation;


### 16. calls on the eib to collect gender-disaggregated data; urges the eib to assess the gender impact of projects; ### 16. calls on the eib to collect gender-disaggregated data; urges the eib to assess the gender impact of projects in order to assess and address gender inequality in lending; considers that data should be collected on projects to demonstrate how they are contributing to gender equality and women’s empowerment; urges the eib to assess the gender impact of projects and to liaise with independent experts to this end;


### 17. expresses its support for eib global; expects full alignment of investments in non-eu countries with intra-eu lending and eu external action; calls for public consultation on the strategies linked to eib global with a particular focus on the role of recipient countries and specific chapters on human rights due diligence; ### 17. expresses its support for eib global; recalls that the eib’s geographical scope is aligned with that of the world bank; expects full alignment of investments in third countries with eu climate , biodiversity and social standards in intra-eu lending and eu external action; calls for public consultation on the strategies linked to eib global with a particular focus on the role of recipient countries and specific chapters on human rights due diligence; calls for full accountability and transparency of the eib global governing body and its advisory council; calls for upscaling expertise and staff for development to implement eu global and team europe initiatives;


### 18. regrets that the new essf includes no significant improvement in human rights protection or procedures to prevent human rights violations; calls for this to be addressed in the statement on human rights; is very concerned that in some cases , the eib has continued to disburse loans despite clear human rights abuses; ### 18. regrets that the new essf includes no significant improvement in human rights protection or procedures to prevent human rights violations , despite repeated calls , inter alia from the european parliament; regrets the lack of a clear system of human rights due diligence and explicit requirements for clients to conduct human rights impact assessments as well as an explicit statement that the responsibility to respect of the human rights also applies to financial institutions and that the eib approach requires further clarification as to human rights are integrated into eib’s due diligence in the contribution by the united nations human rights high commissioner1a; calls for this to be addressed in the statement on human rights; is very concerned that in some cases , the eib continued to disburse loans despite clear human rights retaliations; calls for the eib to make every effort to protect local communities , including by withdrawing funding , where appropriate; expects furthermore immediate action where a client or a beneficial owner is involved in reprisals against a human rights or environment defender; expects the eib to implement parliament’s longstanding requests for it to avoid such situations , in particular via establishing contractual requirements , including onensuring free prior informed consent with local communities , also for projects financed via financial intermediaries; expects the eib to request clients to conduct human rights impact assessments at project level , as well as to continuously monitor the implementation of projects on the ground , in order to prevent any abuse , unfair expropriation or violence against local populations; calls in this regard to engage actively with local communities , and to inform them accordingly of their rights , with a special focus on implementing free , prior and informed consent , including their access to the complaints mechanism;


### 19. is very concerned by the decline of transparency at the eib: in 2010 , 96.1 % of all projects were published three weeks before board approval , falling to only 60 % in 2020; calls for more transparency and accountability , also towards eu institutions , in particular parliament; ### 19. is very concerned by the fall in transparency : in 2010 , 96.1 % of all projects were published 3 weeks before board approval , falling to only 60 % in 2020; calls for more transparency and accountability , also towards eu institutions , in particular parliament , as transparency is one of the cornerstones of democracy; recalls that eib funds are public money and should always be subject to public scrutiny and accountability , highlights furthermore , that even the projects requiring a strategic environmental impact assessment have been published after approval recently ; furthermore , reminds that the industry best standard with private investors is publication of all its projects at least 30 days before approval;


### 20. considers the new transparency policy (tp) a major setback; regrets that the eib has totally ignored parliament’s very clear demands to improve its tp in line with other financial institutions’ best practices and standards; calls for the tp to be aligned with that of the european bank for reconstruction and development on mandatory disclosure for intermediaries of projects with high environmental risks; ### 20. considers the new transparency policy (tp) a major setback; regrets that the eib has totally ignored parliament’s very clear demands to improve its tp in line with other financial institutions’ best practices and standards; regrets that the new policy makes only minor advances for proactive publication , including for projects of more than 50 million implemented by financial intermediaries , despite the need for the eib to operate on the basis of the ‘presumption of disclosure’ to fulfil its mission as the eu’s public bank; is particularly concerned that the new policy does not create an obligation for the eib to proactively publish information on project selection , in particular due diligence information , before the decision by the eib board , in line with ifi practices as well as about the creation of new exceptions for access to document based on third party commercial interests and the market abuse directive; in addition , regrets that the policy fails to provide for timely disclosure of the minutes of the board and management committee; calls for these shortcomings to be addressed urgently; calls for the tp to be aligned with that of the ebrd on mandatory disclosure for intermediaries of projects with high environmental risks and reiterates its calls for the extension of the transparency requirements aligned with those for hydropower to all infrastructure projects , including those financed by financial intermediaries;


### 22. takes note of the updated code of conduct; regrets that there is no provision excluding vice-presidents from overseeing operations in their countries of origin and insists that this be addressed in the next review; ### 22. takes note of the updated code of conduct and welcomes the more stringent rules on conflicts of interest and the commitment for periodic review; regrets that , despite repeated requests , there is no provision excluding vice-presidents from overseeing operations in their countries of origin and insists that this be addressed in the next review;


### 25. takes note of the new anti-fraud policy; is concerned about the opaque way in which it was adopted; ### 25. takes note of the new anti-fraud policy; is concerned about the opaque way in which it was adopted; is highly concerned that the policy fails to address major shortcomings , namely the inclusion of the requirements from the eu directive on the fight against money laundering , in particular publication of ‘know your customer’ checks before approval of any project; also deplores the lack of improvement of transparency standards , namely making the granting of direct and indirect loans subject to publication by the beneficiaries of tax and accounting data country by country , and to the sharing of beneficial ownership data on the beneficiaries and financial intermediaries involved in financing operations; regrets the lack of commitment for independent audits to reveal any shortcomings in the application of anti-money laundering standards;


### 26. expects thorough monitoring that fully takes into account concerns expressed by relevant parties and stakeholders , in particular for human rights and rule of law violations; ### 26. recalls that the commission asked the eib to share more information on the effective application of contractual clauses enabling the eib to halt or withdraw funding and expects parliament to have full access to this information; expects thorough monitoring that fully takes into account concerns expressed by relevant parties and stakeholders , in particular for human rights and rule of law violations;


### 27. is very concerned that , at least once , the eib disbursed funding despite a very clear eib complaints mechanism report concluding that its environmental and social standards had been breached; calls for any such project to be halted immediately; ### 27. reiterates its demand to strengthen the autonomy and efficiency of the complaint mechanism office and the fraud investigation division; is very concerned that , at least on one occasion , following a very clear eib complaints mechanism report concluding that the eib’s environmental and social standards had been breached in a project that might involve conflict of interest , it still remains unclear how the caused harm will be mitigated ; calls for any such project to be halted immediately , and for immediate remedial actions where possible;


### 28. welcomes the working arrangement with the european public prosecutor’s office and calls for its full and diligent implementation , in particular as regards reporting; ### 28. welcomes the working arrangement with eppo andcalls for its full and diligent implementation , in particular as regards reporting; reiterates its call on the eib to enhance its cooperation with the european ombudsman and the european anti-fraud office (olaf)


### (26) in order to help union funding for security research to develop its full potential and address the needs of drugs policy , the agency should assist the commission in identifying key research themes , drawing up and implementing the union framework programmes for research and innovation that are relevant to the agency’s objectives. where the agency assists the commission in identifying key research themes , drawing up and implementing a union framework programme , it should not receive funding from that programme in order to avoid a potential conflict of interest. finally , the agency should participate in union-wide initiatives addressing research and innovation to ensure that technologies necessary for its activities are developed and available for use. ### (26) in order to help union funding for security research to develop its full potential and address the needs of drugs policy , the agency should assist the commission in identifying key research themes and in drawing up and implementing the union framework programmes for research and innovation that are relevant to the agency’s objectives. where the agency assists the commission in identifying key research themes and in drawing up and implementing a union framework programme , it should not receive funding from that programme and take all necessary measures to avoid conflicts of interest. finally , the agency should participate in union-wide initiatives addressing research and innovation to ensure that technologies necessary for its activities are developed and available for use. planned research and innovation activities should be set out in the single programming document containing the agency's multiannual and annual work programme.


### (27) the management board should be assisted by an executive board to prepare its decisions. the agency should be headed by an executive director. a scientific committee should continue assisting the management board and the executive director with regard to relevant scientific matters. ### (27) the agency should be organised as follows: a management board , composed of representatives from the member states and the commission and an expert appointed by the european parliament , should be responsible for overseeing the work of the agency. it should be assisted by an executive board to prepare its decisions. the member states , the commission and the european parliament should ensure gender balance in their appointments and particularly regarding the composition of the management board as a body. it should be possible for the executive board to take specific decisions in clearly defined cases. the agency should be headed by an executive director , who should be responsible for the day-to-day management of the agency. a scientific committee should assist the management board and the executive director with regard to relevant scientific matters.


### (29) the agency should be properly resourced to carry out its tasks and granted an autonomous budget. it should be mainly financed by a contribution from the general budget of the union. the union budgetary procedure should be applicable as far as the union contribution and any other subsidies chargeable to the general budget of the union are concerned. the auditing of accounts should be undertaken by the court of auditors of the european union. ### (29) the agency should be provided with the necessary human and financial resources to fulfil the objectives , tasks and responsibilities assigned to it under this regulation. it should be granted an autonomous budget. it should be mainly financed by a contribution from the general budget of the union , with the necessary appropriations drawn exclusively from unallocated margins under the relevant heading of the multiannual financial framework and/or through the mobilisation of the relevant special instruments. the union budgetary procedure should be applicable as far as the union contribution and any other subsidies chargeable to the general budget of the union are concerned. the auditing of accounts should be undertaken by the court of auditors of the european union.


### 1. the agency shall assist the commission and the member states in identifying key research themes , drawing up and implementing the union framework programmes for research and innovation activities that are relevant to achieve its general task set out in article 4. where the agency assists the commission in identifying key research themes , drawing up and implementing a union framework programme , the agency shall not receive funding from that programme. ### 1. the agency shall assist the commission and the member states in identifying key research themes and in drawing up and implementing the union framework programmes for research and innovation activities that are relevant to achieve its general and specific tasks set out in articles 4 and 5. where the agency assists the commission in identifying key research themes , drawing up and implementing a union framework programme , the agency shall not receive funding from that programme. the agency shall take all necessary measures to avoid conflicts of interest.


### 2. the agency shall proactively monitor and contribute to research and innovation activities to achieve its general task set out in article 4 , support related activities of member states , and implement its research and innovation activities regarding matters covered by this regulation , including the development , training , testing and validation of algorithms for the development of tools. the agency shall disseminate the results of that research to the european parliament , to the member states and to the commission in accordance with article 49. ### 2. the agency shall proactively monitor and contribute to research and innovation activities to achieve its general and specific tasks set out in articles 4 and 5 , support related activities of member states , and implement its research and innovation activities regarding matters covered by this regulation , including the development , training , testing and validation of algorithms for the development of tools. the agency shall disseminate the results of that research to the european parliament , to the member states and to the commission in accordance with article 49.


### adopt its rules of procedure; ### adopt its rules of procedure , including practical arrangements for the prevention and management of conflicts of interest;


### 1. the scientific committee shall consist of at most fifteen scientists appointed by the management board in view of their scientific excellence and their independence , following the publication of a call for expression of interest in the official journal of the european union. the selection procedure shall ensure that the specialist fields of the members of the scientific committee cover the most relevant fields linked to the objectives of the agency. ### 1. the scientific committee shall consist of at most fifteen scientists appointed by the management board in view of their scientific excellence and their independence and ensuring gender balance , following the publication of a call for expression of interest in the official journal of the european union and after having consulted the competent committee of the european parliament. the selection procedure shall ensure that the specialist fields of the members of the scientific committee cover the most relevant fields linked to the objectives of the agency.


### 1. the scientific committee shall consist of at most fifteen scientists appointed by the management board in view of their scientific excellence and their independence , following the publication of a call for expression of interest in the official journal of the european union. the selection procedure shall ensure that the specialist fields of the members of the scientific committee cover the most relevant fields linked to the objectives of the agency. ### 1. the scientific committee shall consist of at most fifteen scientists appointed by the management board in view of their scientific excellence and their independence , following the publication of a call for expression of interest in the official journal of the european union. the selection procedure shall ensure that the specialist fields of the members of the scientific committee cover the most relevant fields linked to the objectives of the agency and shall pay due attention to gender balance.


### by 15 december of each year , the management board shall adopt a draft single programming document containing multi-annual and annual programming as well as all the documents listed in article 32 of commission delegated regulation (eu) 2019/71565 , based on a draft put forward by the executive director , after consulting the scientific committee , taking into account the opinion of the commission , and in relation to multiannual programming after consulting the european parliament. it shall forward it to the european parliament , the council and the commission by 31 january of the following year. ### by 15 december of each year , the management board shall adopt a draft single programming document containing multi-annual and annual programming as well as all the documents listed in article 32 of commission delegated regulation (eu) 2019/71565 , based on a draft put forward by the executive director , after consulting the scientific committee , taking into account the opinion of the commission , and in relation to multiannual programming after consulting the european parliament. if the management board decides not to take into account elements of the opinion of the commission or of the scientific committee , it shall provide a thorough justification. the obligation to provide a thorough justification shall also apply to the elements raised by the european parliament when it is consulted. the management board shall forward the single programming document to the european parliament , the council and the commission by 31 january of the following year.


### annual or multi-annual programming shall include the information about the implementation of the international cooperation framework referred to in article 20 and the actions linked to this strategy. ### annual or multi-annual programming shall include the information about the implementation of the international cooperation framework referred to in article 20 and the actions linked to this strategy. it shall also include the agency's planned research and innovation activities referred to in article 21.


### 2. the executive director shall be appointed by the management board , from a list of candidates proposed by the commission , following an open and transparent selection procedure. ### 2. the executive director shall be appointed by the management board , from a list of candidates proposed by the commission , following an open and transparent selection procedure. the commission shall pay due attention to gender balance when drawing up the list of candidates.


### 2. the executive director shall be appointed by the management board , from a list of candidates proposed by the commission , following an open and transparent selection procedure. ### 2. the executive director shall be appointed by the management board , from a list of candidates proposed by the commission , following an open and transparent selection procedure. the commission shall ensure gender balance when drawing up the list of candidates.


### (2) the european monitoring centre for drugs and drug addiction was set up to provide factual , objective , reliable and comparable information concerning drugs , drug addiction and their consequences at union level to provide the union and the member states with evidence to inform policymaking and guide initiatives to tackle drugs and thus give them added value when , in their respective areas of competence , they take measures or decide on action to address the drugs phenomenon. the creation of the european monitoring centre for drugs and drug addiction has manifestly improved the availability of information on drugs and drug addiction across europe. ### (2) the european monitoring centre for drugs and drug addiction was set up to provide factual , objective , reliable and comparable information concerning drugs , drug addiction and their consequences at union level to provide the union and the member states with an overall view and evidence to inform policymaking and guide initiatives to tackle drugs and thus give them added value when , in their respective areas of competence , they take measures or decide on action to address the drugs phenomenon. the work of the european monitoring centre for drugs and drug addiction has manifestly improved the availability of information on drugs and drug addiction , and their consequences , across europe.


### (3) whereas its general objective is still valid and should be retained , regulation (ec) no 1920/2006 as such no longer fits for addressing the current and future drug challenges. therefore , the mandate of the european monitoring centre for drugs and drug addiction should be revised , including its replacement and renaming into “european union drugs agency” (‘the agency’). since substantial amendments to regulation (ec) no 1920/2006 are needed to accommodate the common approach for union decentralised agencies48 and to take account of the developments of the drug phenomenon , in the interest of clarity that regulation should be replaced by a new regulation. ### (3) whereas its general objective is still valid and should be retained , regulation (ec) no 1920/2006 as such no longer fits for addressing the current and future drug challenges. therefore , the mandate of the european monitoring centre for drugs and drug addiction should be revised , including its replacement and renaming into “european union drugs agency” (‘the agency’). since substantial amendments to regulation (ec) no 1920/2006 are needed to accommodate the common approach for union decentralised agencies48 , to protect and promote public health , including health literacy , to implement the evidence-based , integrated , balanced and multidisciplinary approach to the drugs phenomenon , incorporating a gender equality and health equity perspective , enshrined in the eu drugs strategy 2021-2025 , and to take account of the developments of the drug phenomenon , in the interest of clarity and efficiency that regulation should be replaced by a new regulation.


### (4) the main focus of regulation (ec) no 1920/2006 was on health-related issues. however , addressing also drug markets and drug supply issues , is necessary to understand the impacts of the drug phenomenon on public health , reduce the availability of drugs in the union and curb drug demand. health- and supply-related issues are intrinsically linked. the agency should therefore address the drug phenomenon more holistically. ### (4) the main focus of regulation (ec) no 1920/2006 was on health-related issues , which should continue to be the main focus and a priority for the agency. however , addressing drug markets and drug supply , is also necessary to understand the impacts of the drug phenomenon on public health , reduce the availability of drugs in the union and curb drug demand. health- and supply-related issues regarding the drug phenomenon are intrinsically linked. the agency should therefore address the drug phenomenon more holistically , by applying a multidisciplinary approach incorporating a human rights , gender equality , public and human health , health equity , sustainable development and social perspective in relation to drugs , drug use , drug use disorders and addictions , prevention , treatment , care , risk and harm reduction , rehabilitation , social reintegration and recovery , drug supply , including illicit production and trafficking , and other relevant drug-related issues and their consequences , including the potential unintended negative consequences associated with the implementation of policies and actions.


### (5) the work of the agency should be carried out with due regard to the respective powers of the union and its member states in the area of drugs. it should cover the various facets of the drugs phenomenon and the solutions applied. in doing so , the agency should be guided by relevant strategies and action plans adopted by the union , in particular the applicable eu drugs strategy and action plan. ### (5) the work of the agency should be carried out with due regard to the respective powers of the union and its member states in the areas of drugs and the protection and improvement of public and human health. it should cover the various facets of the drugs phenomenon and the solutions applied. in doing so , the agency should be guided by the evidence-based , integrated , balanced and multidisciplinary approach to the drugs phenomenon , which should include a gender equality and health equity perspective , as enshrined in relevant strategies and action plans adopted by the union , in particular the applicable eu drugs strategy and action plan.


### (6) in pursuing its activities , the agency should cooperate with other union agencies and bodies , in particular the european union agency for law enforcement cooperation (europol) , the european union agency for law enforcement training (cepol) , the european union agency for criminal justice cooperation (eurojust) , the european medicines agency (ema) , the european centre for disease prevention and control (ecdc) , and the european education and culture executive agency (eacea) , and should take account of their activities in order to avoid duplication. cooperation should also take place on an international level with relevant authorities and bodies in third countries and on the united nations level. ### (6) in pursuing its activities , the agency should cooperate with relevant union bodies , offices and agencies , within their mandates and in full compliance with fundamental rights and data protection rules , and should take account of their activities in order to avoid duplication. cooperation should also take place on an international level with relevant authorities and bodies in third countries and on the united nations level. cooperation should comply with the international human rights obligations of the union.


### (3) the introduction of eu emissions trading for the buildings and road transport sectors , as set out in directive 2003/87/ec of the european parliament and of the council2 , may give rise to short term social impacts. to address this challenge , regulation (eu) [xxx] final of the european parliament and of the council established3 a social climate fund , to be financed by the general budget of the union under the multiannual financial framework. the ceiling for commitment appropriations of heading 3 , ‘natural resources and environment’ , and the ceiling for payment appropriations should therefore be adapted for the years 2025 , 2026 and 2027. ### (3) the introduction of eu emissions trading for the buildings and road transport sectors , as set out in directive 2003/87/ec of the european parliament and of the council2 , may give rise to short term social impacts. to address this challenge , regulation (eu) [xxx] final of the european parliament and of the council established3 a social climate fund , to be financed by the general budget of the union under the multiannual financial framework. the ceiling for commitment appropriations of heading 3 , ‘natural resources and environment’ , and the ceiling for payment appropriations should therefore be adapted for the years 2024 , 2025 , 2026 and 2027. in the event of a higher carbon price above eur 48/tonne3a , an additional allocation should be made available for the social climate fund on an annual basis commensurately with the increase of the carbon price , in order to further support vulnerable households and users of transport in the transition towards climate neutrality. such annual reinforcements should be accommodated within the mff by means of an automatic carbon price fluctuation adjustment of the ceiling for commitment appropriations of heading 3 , ‘natural resources and environment’ , and the ceiling for payment appropriations.


### (2) the following article 4a is inserted: ‘article 4a ### (2) the following articles are inserted:‘article 4a


### 1. takes note of draft amending budget no 2/2022 as submitted by the commission , which is devoted solely to the budgeting of the 2021 surplus , for an amount of eur 3 227 ,1 million , in accordance with article 18(3) of the financial regulation; ### 1. takes note of draft amending budget no 2/2022 as submitted by the commission , which is devoted solely to the budgeting of the 2021 surplus , for an amount of eur 3 227 ,1 million , in accordance with article 18(3) of the financial regulation; notes that the 2021 surplus of eur 3 227 ,1 million is particularly high; reiterates , in this context , that the commission shall adhere to the principles of sound financial management in its implementation of the budget in accordance with article 317 tfeu and article 33 of the financial regulation;


### (1) the transition to a low-carbon , more sustainable , resource-efficient , circular and fair economy is key to ensuring the long-term competitiveness of the economy of the union and the well-being of its peoples. in 2016 , the union concluded the paris agreement31 . article 2(1) , point (c) , of the paris agreement sets out the objective of strengthening the response to climate change by , among other means , making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development. ### (1) the transition to a climate neutral , more sustainable , energy and resource-efficient , circular and fair economy is key to ensuring the long-term competitiveness of the economy of the union and the well-being of its peoples. in 2016 , the union concluded the paris agreement31 . article 2(1) , point (c) , of the paris agreement sets out the objective of strengthening the response to climate change by , among other means , making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.


### (2) the european green deal investment plan of 14 january 202032 envisages the establishment of a standard for environmentally sustainable bonds to further increase investment opportunities and facilitate the identification of environmentally sustainable investments through a clear label. in its december 2020 conclusions , the european council invited the commission to put forward a legislative proposal for a green bond standard33 . ### (2) in its resolution of 29 may 2018 on sustainable finance , the european parliament stressed the insufficient regulation of the green bond market and called for a legislative initiative to create a unified standard for the issuance of green bonds , building on the eu taxonomy regulation. the european green deal investment plan of 14 january 202032 envisages the establishment of a standard for environmentally sustainable bonds to further increase investment opportunities and facilitate the identification of environmentally sustainable investments through a clear label. in its december 2020 conclusions , the european council invited the commission to put forward a legislative proposal for a green bond standard33 .


### (3) environmentally sustainable bonds are one of the main instruments for financing investments related to low-carbon technologies , energy and resource efficiency as well as sustainable transport infrastructure and research infrastructure. financial or non-financial undertakings or sovereigns can issue such bonds. various existing initiatives for environmentally sustainable bonds do not ensure common definitions of environmentally sustainable economic activities. this prevents investors from easily identifying bonds the proceeds of which are aligned with , or are contributing to environmental objectives as laid down in the paris agreement. ### (3) even though environmentally sustainable bonds are one of the main instruments for financing investments related to technologies necessary for the decarbonisation of our society , energy and resource efficiency as well as zero-emission transport infrastructure and research infrastructure , the regulatory burden of directing private capital flows towards sustainable investments should not fall exclusively on such bonds , but on all debt instruments. additional requirements are therefore needed to increase the environmental sustainability of all newly issued debt instruments.


### (6) the lack of harmonised rules for the procedures used by external reviewers to review environmentally sustainable bonds and the diverging definitions of environmentally sustainable activities make it increasingly difficult for investors to effectively compare bonds across the internal market with respect to their environmental objectives. the market for environmentally sustainable bonds is inherently international , with market participants trading bonds and making use of external review services from third party providers across borders. action at union level could reduce the risk of fragmentation of the internal market for environmentally sustainable bonds and bond-related external review services , and ensure the application of regulation (eu) 2020/852 of the european parliament and of the council34 in the market for such bonds. ### (6) the lack of harmonised rules for the procedures used by external reviewers to review environmentally sustainable bonds and the diverging definitions of environmentally sustainable activities make it increasingly difficult for investors to effectively compare bonds across the internal market with respect to their environmental objectives and environmental impact. the market for environmentally sustainable bonds is inherently international , with market participants trading bonds and making use of external review services from third party providers across borders. action at union level could reduce the risk of fragmentation of the internal market for environmentally sustainable bonds and bond-related external review services , and ensure the application of regulation (eu) 2020/852 of the european parliament and of the council34 in the market for such bonds.


### (7) a uniform set of specific requirements should therefore be laid down for bonds issued by financial or non-financial undertakings or sovereigns that voluntarily wish to use the designation ‘european green bond’ or ‘eugb’ for such bonds. specifying quality requirements for european green bonds in the form of a regulation should ensure that there are uniform conditions for the issuance of such bonds by preventing diverging national requirements that could result from a transposition of a directive , and should also ensure that those conditions are directly applicable to issuers of such bonds. issuers that voluntarily use the designation ‘european green bond’ or ‘eugb’ should follow the same rules across the union , to increase market efficiency by reducing discrepancies and thereby also reducing the costs of assessing those bonds for investors. ### (7) a set of harmonised requirements should therefore be laid down for bonds issued by financial or non-financial undertakings or sovereigns that are marketed as environmentally sustainable , including those that are marketed as ‘european green bond’ or ‘eugb’. specifying quality requirements for those bonds in the form of a regulation should ensure that there are uniform conditions for the issuance of such bonds by preventing diverging national requirements that could result from a transposition of a directive , and should also ensure that those conditions are directly applicable to issuers of such bonds. issuers that use the designation ‘european green bond’ or ‘eugb’ should follow the same rules across the union , to increase market efficiency by reducing discrepancies and thereby also reducing the costs of assessing those bonds for investors. in order to achieve a union green bond market that is consistent with the union’s taxonomy , the european green bond standard should progressively become the prime green bond standard within the union. therefore , it should become mandatory for newly issued green bonds within three years after entry into force of this regulation. in order to enhance transparency , comparability and counter greenwashing during the period in which the european green bond standard remains voluntary , bonds marketed as environmentally sustainable issued in the union without using the designation ‘european green bond’ or ‘eugb’ should also disclose their alignment with the eu taxonomy , adhere to the “do no significant harm” principle set out in article 17 of regulation (eu) 2020/852 and ensure external review of pre- and post-issuance information


### (8) in accordance with article 4 of regulation (eu) 2020/852 , and in order to provide investors with clear , quantitative , detailed and common definitions , the requirements set out in article 3 of that regulation should be used to determine whether an economic activity qualifies as environmentally sustainable. proceeds of bonds that use the designation ‘european green bond’ or ‘eugb’ should exclusively be used to fund economic activities that either are environmentally sustainable and are thus aligned with the environmental objectives set out in article 9 of regulation (eu) 2020/852 , or contribute to the transformation of activities to become environmentally sustainable. those bonds can however be used both to finance such environmentally sustainable activities directly through the financing of assets and expenditures that relate to economic activities that meet the requirements set out in article 3 of regulation (eu) 2020/852 , or indirectly through financial assets that finance economic activities that meet those requirements. it is therefore necessary to specify the categories of expenditures and assets that can be financed with the proceeds of bonds that use the designation ‘european green bond’ or ‘eugb’. ### (8) in accordance with article 4 of regulation (eu) 2020/852 , and in order to provide investors with clear , quantitative , detailed and common definitions , the requirements set out in article 3 of that regulation should be used to determine whether an economic activity qualifies as environmentally sustainable. proceeds of bonds that use the designation ‘european green bond’ or ‘eugb’ should exclusively be used to fund new economic activities that meet the requirements set out in article 3 of regulation (eu) 2020/852 and are thus environmentally sustainable , or to contribute to the transformation of activities so that they can meet those requirements and can thereby become environmentally sustainable. those bonds can however be used both to finance such environmentally sustainable activities directly through the financing of assets and expenditures that relate to economic activities that meet the requirements set out in article 3 of regulation (eu) 2020/852 , or indirectly through financial assets that finance economic activities that meet those requirements. it is therefore necessary to specify the categories of expenditures and assets that can be financed with the proceeds of bonds that use the designation ‘european green bond’ or ‘eugb’.


### (11) article 4 of regulation (eu) 2020/852 requires member states and the union to apply the criteria set out in article 3 of that regulation to determine whether an economic activity qualifies as environmentally sustainable for the purposes of any measure setting out requirements for financial market participants or issuers in respect of financial products or corporate bonds that are made available as environmentally sustainable. it is therefore logical that the technical screening criteria referred to in article 3 , point (d) , of regulation (eu) 2020/852 should determine which fixed assets , expenditures and financial assets can be financed by the proceeds of european green bonds. in view of the expected technological progress in the field of environmental sustainability , the delegated acts adopted pursuant to articles 10(3) , 11(3) , 12(2) , 13(2) , 14(2) or 15(2) of regulation (eu) 2020/852 are likely to be reviewed and amended over time. regardless of such changes , in order to provide legal certainty to issuers and investors and prevent amendments to the technical screening criteria from having a negative impact on the price of european green bonds that have already been issued , issuers should be able to apply the technical screening criteria applicable at the moment the european green bond was issued when allocating the proceeds of such bonds to eligible fixed assets or expenditures , until maturity of the bond. to ensure legal certainty for european green bonds whose proceeds are allocated to financial assets , it is necessary to clarify that the underlying economic activities funded by those financial assets should comply with the technical screening criteria applicable at the moment the financial assets were created. where the relevant delegated acts are amended , the issuer should allocate proceeds by applying the amended delegated acts within five years. ### (11) article 4 of regulation (eu) 2020/852 requires member states and the union to apply the criteria set out in article 3 of that regulation to determine whether an economic activity qualifies as environmentally sustainable for the purposes of any measure setting out requirements for financial market participants or issuers in respect of financial products or corporate bonds that are made available as environmentally sustainable. it is therefore logical that the technical screening criteria referred to in article 3 , point (d) , of regulation (eu) 2020/852 should determine which fixed assets , expenditures and financial assets can be financed by the proceeds of european green bonds. in view of the expected technological progress in the field of environmental sustainability , the delegated acts adopted pursuant to articles 10(3) , 11(3) , 12(2) , 13(2) , 14(2) or 15(2) of regulation (eu) 2020/852 are likely to be reviewed and amended over time. where the relevant delegated acts are amended , the issuer should allocate proceeds by applying the amended delegated acts within five years.


### (16) unlike issuers that are financial or non-financial undertakings , issuers that are sovereigns can use the proceeds of european green bonds to indirectly finance economic activities that are aligned with the taxonomy requirements through the use of programmes of tax expenditures or programmes of transfers , including subsidies. in such cases , sovereigns ensure that economic activities funded by such programmes comply with the terms and conditions of those programmes. for that reason , when providing pre- and post-issuance reviews of european green bonds issued by sovereigns and the proceeds of which are allocated to tax expenditures or subsidies in accordance with terms and conditions that are aligned with taxonomy requirements , external reviewers should not be required to assess the taxonomy-alignment of each economic activity funded by such programmes. where that is the case , it should be sufficient for external reviewers to assess the alignment of the terms and conditions of the funding programmes concerned with the taxonomy requirements. ### (16) unlike issuers that are financial or non-financial undertakings , issuers that are sovereigns can use the proceeds of european green bonds to indirectly finance economic activities that are aligned with the taxonomy requirements through the use of programmes of transfers , including subsidies. in such cases , sovereigns ensure that economic activities funded by such programmes comply with the terms and conditions of those programmes. for that reason , when providing pre- and post-issuance reviews of european green bonds issued by sovereigns and the proceeds of which are allocated to tax subsidies in accordance with terms and conditions that are aligned with taxonomy requirements , external reviewers should not be required to assess the taxonomy-alignment of each economic activity funded by such programmes. where that is the case , it should be sufficient for external reviewers to assess the alignment of the terms and conditions of the funding programmes concerned with the taxonomy requirements.


### (18) to improve transparency , issuers should also disclose the environmental impact of their bonds by means of the publication of impact reports , which should be published at least once during the lifetime of the bond. in order to provide investors with all information relevant to assess the environmental impact of european green bonds , impact reports should clearly specify the metrics , methodologies and assumptions applied in the assessment of the environmental impacts. to strengthen the comparability of european green bonds and to facilitate the localisation of relevant information , it is necessary to lay down templates for the disclosure of such information. ### (18) to improve transparency , issuers should also disclose the environmental impact of their bonds by means of the publication of impact reports , which should be published at least every five years until the bond matures and at least once after the bond matures. in order to provide investors with all information relevant to assess the environmental impact of european green bonds , impact reports should clearly specify the metrics , methodologies and assumptions applied in the assessment of the environmental impacts. to strengthen the comparability of european green bonds and to facilitate the localisation of relevant information , it is necessary to lay down templates for the disclosure of such information. the information contained in the impact reports should be subject to the assessment of external reviewers.


### (20) to ensure the efficiency of the market for european green bonds , issuers should publish on their websites details about the european green bonds they issue. to ensure the reliability of information and investor confidence , they shall also publish the pre-issuance review as well as any post-issuance reviews. ### (20) to ensure the efficiency of the market for bonds marketed as environmentally sustainable , issuers should publish on their websites details about the bonds marketed as environmentally sustainable they issue. to ensure the reliability of information and investor confidence , they shall also publish the pre-issuance review as well as any post-issuance reviews.


### (24) to ensure the independence of external reviewers , external reviewers should avoid situations of conflict of interest and manage those conflicts adequately when they are unavoidable. external reviewers should therefore disclose conflicts of interest in a timely manner. they should also keep records of all significant threats to their independence , to that of their employees and to that of other persons involved in the external review process. they should also keep records of the safeguards applied to mitigate those threats. ### (24) to ensure the independence of external reviewers , external reviewers should avoid situations of conflict of interest and manage those conflicts adequately when they are unavoidable. external reviewers should not be entitled to conduct an external review in case of conflict of interest that cannot be properly addressed. external reviewers should therefore disclose conflicts of interest in a timely manner. they should also keep records of all significant threats to their independence , to that of their employees and to that of other persons involved in the external review process. they should also keep records of the safeguards applied to mitigate those threats.


### (37) the objectives of this regulation are twofold. on the one hand , it aims to ensure that uniform requirements apply to the use of the designation of ‘european green bond’ or ‘eugb’. on the other hand , it aims to establish a simple registration system and supervisory framework for external reviewers by entrusting a single supervisory authority with the registration and supervision of external reviewers in the union. both aims should facilitate capital raising for projects that pursue environmentally sustainable objectives. since those objectives cannot be sufficiently achieved by the member states but can be better achieved at union level , the union may adopt measures in accordance with the principle of subsidiarity as set out in article 5 of the treaty on european union. in accordance with the principle of proportionality , as set out in that article , this regulation does not go beyond what is necessary in order to achieve those objectives , ### (37) the objectives of this regulation are twofold. on the one hand , it aims to ensure that uniform requirements apply to the use of bonds that are marketed as environmentally sustainable , including those that are using the designation of ‘european green bond’ or ‘eugb’. these requirements improve the ability of investors to compare different environmentally sustainable bonds , including by comparing the alignment of the proceeds of such bonds with the technical screening criteria set out according to article 19 of regulation (eu)2020/852. it also ensures that no environmentally sustainable bond can finance economic activities that cause significant harm to the environment , irrelevant of the way they are designated. on the other hand , it aims to establish a simple registration system and supervisory framework for external reviewers by entrusting a single supervisory authority with the registration and supervision of external reviewers in the union. both aims should facilitate capital raising for projects that pursue environmentally sustainable objectives , ensure the integrity of environmental claims made by issuers of european green bonds , and increase the transparency on the environmental performance of other bonds that are marketed as environmentally sustainable. since those objectives cannot be sufficiently achieved by the member states but can be better achieved at union level , the union may adopt measures in accordance with the principle of subsidiarity as set out in article 5 of the treaty on european union. in accordance with the principle of proportionality , as set out in that article , this regulation does not go beyond what is necessary in order to achieve those objectives ,


### this regulation lays down uniform requirements for issuers of bonds that wish to use the designation ‘european green bond’ or ‘eugb’ for their environmentally sustainable bonds made available to investors in the union , and establishes a registration system and supervisory framework for external reviewers of european green bonds. ### this regulation lays down transparency requirements for bonds that are marketed in the union as sustainable , stipulates uniform requirements for issuers of such bonds and issuers that wish to use the designation ‘european green bond’ or ‘eugb’ for their environmentally sustainable bonds , and establishes a registration system and supervisory framework for external reviewers of european green bonds and other bonds marketed as environmentally sustainable.


### this regulation lays down uniform requirements for issuers of bonds that wish to use the designation ‘european green bond’ or ‘eugb’ for their environmentally sustainable bonds made available to investors in the union , and establishes a registration system and supervisory framework for external reviewers of european green bonds. ### this regulation lays down uniform requirements for issuers of bonds marketed as environmentally sustainable and issuers that wish to use the designation ‘european green bond’ or ‘eugb’ for their environmentally sustainable bonds , and establishes a registration system and supervisory framework for external reviewers of european green bonds and other bonds marketed as environmentally sustainable.


### a company of private law fully owned by one or more of the entities referred to in points (a) to (e); ### deleted


### conditions for the use of the designation ‘european green bond’ or ‘eugb’ ### conditions for the use of the designation ‘european green bond’ or ‘eugb’ and for marketing other bonds as environmentally sustainable


### conditions for the use of the designation ‘european green bond’ or ‘eugb’ ### conditions for the use of the designation ‘european green bond’ or ‘eugb’ and for marketing other bonds as ‘environmentally sustainable’


### designation ### designation of "european green bond" or "eugb"


### the designation ‘european green bond’ or ‘eugb’ shall only be used for bonds that comply with the requirements set out in this title until their maturity. ### the designation ‘european green bond’ or ‘eugb’ shall only be used for bonds that comply with the requirements set out in this regulation until their maturity.


### 1. before maturity of the bond , the proceeds of european green bonds shall be exclusively and fully allocated , without deducting costs , to the following , or a combination thereof: ### 1. until maturity of the bond , the proceeds of european green bonds shall be exclusively and fully allocated , without deducting costs , to the following , or a combination thereof:


### operating expenditures that were incurred more recently than three years prior to the issuance of the european green bond; ### deleted


### for the purposes of this paragraph , capital expenditures shall mean either additions to fixed tangible and fixed intangible assets during the financial year considered before depreciation , amortisation and any re-measurements , including the additions resulting from revaluations and impairments for the financial year concerned , and excluding fair value or any additions to fixed tangible and fixed intangible assets resulting from business combinations. ### for the purposes of this paragraph , capital expenditures shall mean either additions to fixed tangible and fixed intangible assets during the financial year considered before depreciation , amortisation and excluding any re-measurements , revaluations and impairments for the financial year concerned , as well as fair value or any additions to fixed tangible and fixed intangible assets resulting from business combinations.


### for the purposes of this paragraph , operating expenditures shall mean direct non-capitalised costs which relate to research and development , education and training , building renovation measures , short-term lease , maintenance and repair , and any other direct expenditures relating to the day-to-day servicing of fixed tangible or fixed intangible assets of property , plant and equipment that are necessary to ensure the continued and effective functioning of such assets. ### deleted


### tax relief referred to in point 20.167 of annex a to regulation (eu) no 549/2013 that was granted more recently than three years prior to the issuance of the european green bond; ### deleted


### subsidies referred to in point 4.30 of annex a to regulation (eu) no 549/2013 that were transferred more recently than three years prior to the issuance of the european green bond; ### deleted


### 3. a european green bond may be refinanced by issuing a new european green bond. ### 3. a european green bond may be refinanced by issuing a new european green bond provided that the use of proceeds of the refinanced bond comply with the requirements set out in article 6 at the time of the refinancing.


### 2. the proceeds of the financial assets referred to in paragraph 1 shall only be allocated to fixed assets that are not financial assets as referred to in article 4(1) , point (a) , capital expenditures as referred to in article 4(1) , point (b) , or operating expenditures as referred to in article 4(1) , point (c). ### 2. the proceeds of the financial assets referred to in paragraph 1 shall only be allocated to fixed assets that are not financial assets as referred to in article 4(1) , point (a) , capital expenditures as referred to in article 4(1) , point (b).


### 3. by way of derogation from paragraph 2 , the proceeds of the financial asset referred to in paragraph 1 may be allocated to other financial assets provided that the proceeds from those financial assets are allocated according to paragraph 2. ### 3. by way of derogation from paragraph 2 , the proceeds of the financial asset referred to in paragraph 1 may be allocated to other financial assets provided that the proceeds from those financial assets are allocated according to paragraph 2 and that the final use of proceeds is clearly and unambiguously demonstrable to an external reviewer.


### 3. by way of derogation from paragraph 2 , the proceeds of the financial assets referred to in paragraph 1 may be allocated to other financial assets provided that the proceeds from those financial assets are allocated according to paragraph 2. ### 3. by way of derogation from paragraph 2 , the proceeds of the financial assets referred to in paragraph 1 may be allocated to other financial assets provided that the proceeds from those financial assets are allocated according to paragraph 2 and that such allocation does not hamper the ability of external reviewers to effectively review the final allocation of proceeds.


### 1. the use of proceeds referred to in article 4 shall relate to economic activities that meet the taxonomy requirements , or that will meet the taxonomy requirements within a defined period of time as set out in a taxonomy-alignment plan. ### 1. the use of proceeds referred to in article 4 shall be allocated to finance economic activities that meet the taxonomy requirements , or to the transformation of existing economic activities so that they will meet the taxonomy requirements within a defined period of time as set out in a taxonomy-alignment plan.


### the use of proceeds referred to in article 4 shall relate to economic activities that meet the taxonomy requirements , or that will meet the taxonomy requirements within a defined period of time as set out in a taxonomy-alignment plan. ### the use of proceeds referred to in article 4 shall be allocated to new economic activities that meet the taxonomy requirements , or to the transformation of existing economic activities so that they will meet the taxonomy requirements within a defined period of time as set out in a taxonomy-alignment plan. transitional economic activities within the meaning of article 10(2) of regulation 2020/852 and activities referred to under article 7(2a) of this regulation shall not be part of the taxonomy-alignment plan.


### the taxonomy-alignment plan referred to in the first subparagraph shall describe the actions and expenditures that are necessary for an economic activity to meet the taxonomy requirements within the specified period of time. ### the taxonomy-alignment plan referred to in the first subparagraph shall describe in detail the actions and expenditures that are necessary for the transformation of an economic activity to meet the taxonomy requirements within the specified period of time.


### the taxonomy-alignment plan referred to in the first subparagraph shall describe the actions and expenditures that are necessary for an economic activity to meet the taxonomy requirements within the specified period of time. ### the taxonomy-alignment plan referred to in the first subparagraph shall describe the detailed actions and expenditures , including the annual intermediate steps referred to in paragraph 2a , that are necessary for the transformation of an economic activity in order to meet the taxonomy requirements within the specified period of time


### the period referred to in the first and second subparagraph shall not exceed five years from bond issuance , unless a longer period of up to ten years is justified by the specific features of the economic activities concerned as documented in a taxonomy-alignment plan. ### the period referred to in the first and second subparagraph shall not exceed five years from bond issuance , unless a longer period of up to ten years is duly justified by the specific features of the economic activities concerned as documented in a taxonomy-alignment plan.