### (50) when designing policy measures to fulfil the energy savings obligation , member states should respect the climate and environmental standards and priorities of the union and comply with the principle of ‘do no significant harm’ within the meaning of regulation (eu) 2020/85271 . member states should not promote activities that are not environmentally sustainable such as use of solid fossil fuels. the energy savings obligation aims at strengthening the response to climate change by promoting incentives to member states to implement a sustainable and clean policy mix , which is resilient , and mitigates climate change. therefore , energy savings from policy measures regarding the use of direct fossil fuel combustion will not be eligible energy savings under energy savings obligation as of transposition of this directive. it will allow aligning the energy savings obligation with the objectives of the european green deal , the climate target plan , the renovation wave strategy , and mirror the need for action identified by the iea in its net zero report72 . the restriction aims at encouraging member states to spend public money into future-proof , sustainable technologies only. it is important that member states provide a clear policy framework and investment certainty to market actors. the implementation of the calculation methodology under energy savings obligation should allow all market actors to adapt their technologies in a reasonable timeframe. where member states support the uptake of efficient fossil fuel technologies or early replacement of such technology , for example through subsidy schemes or energy efficiency obligation schemes , energy savings may not be eligible anymore under the energy savings obligation. while energy savings resulting , for example , from the promotion of natural gas-based cogeneration would not be eligible , the restriction would not apply for indirect fossil fuel usage , for example where the electricity production includes fossil fuel generation. policy measures targeting behavioural changes to reduce the consumption of fossil fuel , for example through information campaigns , eco-driving , should remain eligible. the energy savings from policy measures targeting building renovations may contain measures such as a replacement of fossil fuel heating systems together with building fabric improvements , which should be limited to those technologies that allow achieving the required energy savings according to the national building codes established in a member state. nevertheless , member states should promote upgrading heating systems as part of deep renovations in line with the long-term objective of carbon neutrality , i.e. reducing the heating demand and covering the remaining heating demand with a carbon-free energy source. ### (50) when designing policy measures to fulfil the energy savings obligation , member states should respect the climate and environmental standards and priorities of the union and comply with the principle of ‘do no significant harm’ within the meaning of regulation (eu) 2020/85271 . member states should not promote activities that are not environmentally sustainable such as use of solid fossil fuels. the energy savings obligation aims at strengthening the response to climate change by promoting incentives to member states to implement a sustainable and clean policy mix , which is resilient , and mitigates climate change. the restriction aims at encouraging member states to spend public money into future-proof , sustainable technologies only. it is important that member states provide a clear policy framework and investment certainty to market actors. the implementation of the calculation methodology under energy savings obligation should allow all market actors to adapt their technologies in a reasonable timeframe. where member states support the uptake of efficient fossil fuel technologies or early replacement of such technology , for example through subsidy schemes or energy efficiency obligation schemes , energy savings may not be eligible anymore under the energy savings obligation. both energy savings resulting , from the promotion of natural gas-based cogeneration and indirect fossil fuel usage , for example where the electricity production includes fossil fuel generation , would be eligible. policy measures targeting behavioural changes to reduce the consumption of fossil fuel , for example through information campaigns , eco-driving , should remain eligible. the energy savings from policy measures targeting building renovations may contain measures such as are placement of fossil fuel heating systems together with building fabric improvements , which should be limited to those technologies that allow achieving the required energy savings according to the national building codes established in a member state. nevertheless , member states should promote upgrading heating systems as part of deep renovations in line with the long-term objective of carbon neutrality , i.e. reducing the heating demand and covering the remaining heating demand with a carbon-free energy source.


### (51) member states' energy efficiency improvement measures in transport are eligible to be taken into account for achieving their end-use energy savings obligation. such measures include policies that are , inter alia , dedicated to promoting more efficient vehicles , a modal shift to cycling , walking and collective transport , or mobility and urban planning that reduces demand for transport. in addition , schemes which accelerate the uptake of new , more efficient vehicles or policies fostering a shift to fuels with reduced levels of emissions , except policy measures regarding the use of direct fossil fuel combustion , that reduce energy use per kilometre are also capable of being eligible , subject to compliance with the rules on materiality and additionality set out in annex v to this directive. policy measures promoting the uptake of new fossil fuel vehicles should not qualify as eligible measures under the energy savings obligation. ### (51) member states' energy efficiency improvement measures in transport are eligible to be taken into account for achieving their end-use energy savings obligation. such measures include policies that are , inter alia , dedicated to promoting more efficient vehicles , a modal shift to cycling , walking and collective transport , or mobility and urban planning that reduces demand for transport. in addition , schemes which accelerate the uptake of new , more efficient vehicles or policies fostering a shift to fuels with reduced levels of emissions , except policy measures regarding the use of direct fossil fuel combustion , that reduce energy use per kilometre are also capable of being eligible , subject to compliance with the rules on materiality and additionality set out in annex v to this directive.


### (54) member states and obligated parties should make use of all available means and technologies , except regarding the use of direct fossil fuel combustion technologies , to achieve the cumulative end-use energy savings required , including by promoting sustainable technologies in efficient district heating and cooling systems , efficient heating and cooling infrastructure and energy audits or equivalent management systems , provided that the energy savings claimed comply with the requirements laid down in article 8 and annex v to this directive. member states should aim for a high degree of flexibility in the design and implementation of alternative policy measures. member states should encourage actions resulting in energy savings over the long lifetimes. ### (54) member states and obligated parties should make use of all available means and technologies , to achieve the cumulative end-use energy savings required , including by promoting sustainable technologies in efficient district heating and cooling systems , efficient heating and cooling infrastructure and energy audits or equivalent management systems , provided that the energy savings claimed comply with the requirements laid down in article 8 and annex v to this directive. member states should aim for a high degree of flexibility in the design and implementation of alternative policy measures. member states should encourage actions resulting in energy savings over the long lifetimes.


### (123) energy generated on or in buildings from renewable energy technologies reduces the amount of energy supplied from fossil fuels. the reduction of energy consumption and the use of energy from renewable sources in the buildings sector are important measures to reduce the union's energy dependence and greenhouse gas emissions , especially in view of ambitious climate and energy objectives set for 2030 as well as the global commitment made in the context of the paris agreement. for the purposes of their cumulative energy savings obligation member states may take into account energy savings from policy measures promoting renewable technologies to meet their energy savings requirements in accordance with the calculation methodology provided in this directive . energy savings from policy measures regarding the use of direct fossil fuel combustion should not be counted. ### (123) energy generated on or in buildings from renewable energy technologies reduces the amount of energy supplied from fossil fuels. the reduction of energy consumption and the use of energy from renewable sources in the buildings sector are important measures to reduce the union's energy dependence and greenhouse gas emissions , especially in view of ambitious climate and energy objectives set for 2030 as well as the global commitment made in the context of the paris agreement. for the purposes of their cumulative energy savings obligation member states may take into account energy savings from policy measures promoting renewable technologies to meet their energy savings requirements in accordance with the calculation methodology provided in this directive.


### (123) energy generated on or in buildings from renewable energy technologies reduces the amount of energy supplied from fossil fuels. the reduction of energy consumption and the use of energy from renewable sources in the buildings sector are important measures to reduce the union's energy dependence and greenhouse gas emissions , especially in view of ambitious climate and energy objectives set for 2030 as well as the global commitment made in the context of the paris agreement. for the purposes of their cumulative energy savings obligation member states may take into account energy savings from policy measures promoting renewable technologies to meet their energy savings requirements in accordance with the calculation methodology provided in this directive . energy savings from policy measures regarding the use of direct fossil fuel combustion should not be counted. ### (123) energy generated on or in buildings from renewable energy technologies reduces the amount of energy supplied from fossil fuels. the reduction of energy consumption and the use of energy from renewable sources in the buildings sector are important measures to reduce the union's energy dependence and greenhouse gas emissions , especially in view of ambitious climate and energy objectives set for 2030 as well as the global commitment made in the context of the paris agreement. for the purposes of their cumulative energy savings obligation member states may take into account energy savings from policy measures promoting renewable technologies to meet their energy savings requirements in accordance with the calculation methodology provided in this directive .


### this directive lays down rules designed to implement energy efficiency as a priority across all sectors , remove barriers in the energy market and overcome market failures that impede efficiency in the supply and use of energy. it also provides for the establishment of indicative national energy efficiency contributions for 2030. ### this directive lays down rules designed to implement energy efficiency as a priority across all sectors , remove barriers in the energy market and overcome market failures that impede efficiency in the supply and use of energy. it also provides for the establishment of indicative national energy efficiency targets for 2030.


### (5) ‘final energy consumption’ means all energy supplied to industry , transport (including energy consumption in international aviation) , households , public and private services , agriculture , forestry and fishing and other end-users (final consumers of energy) . it excludes energy consumption in international maritime bunkers , ambient heat and deliveries to the transformation sector , and the energy sector and losses due to transmission and distribution (definitions in annex a of regulation (ec) no 1099/2008 apply) ; ### (5) ‘final energy consumption’ means all energy supplied to industry , transport (including energy consumption in international aviation) , households , public and private services , agriculture , forestry and fishing and other end-users (final consumers of energy) . it excludes energy consumption in international maritime bunkers , ambient heat and deliveries of primary energy to the transformation sector , the energy sector (except activities listed as industry under group c of the nace rev.2 statistical classification of economic activities in the european community and losses due to transmission) and distribution;


### a. until 31 december 2025 , a system using at least 50% renewable energy , 50% waste heat , 75% cogenerated heat or 50% of a combination of such energy and heat; ### deleted


### b. from 1 january 2026 , a system using at least 50% renewable energy , 50% waste heat , 80% of high-efficiency cogenerated heat or at least a combination of such thermal energy going into the network where the share of renewable energy is at least 5% and the total share of renewable energy , waste heat or high-efficiency cogenerated heat is at least 50%; ### deleted


### c. from 1 january 2035 , a system using at least 50% renewable energy and waste heat , where the share of renewable energy is at least 20%; ### deleted


### d. from 1 january 2045 , a system using at least 75 % renewable energy and waste heat , where the share of renewable energy is at least 40%; ### deleted


### e. from 1 january 2050 , a system using only renewable energy and waste heat , where the share of renewable energy is at least 60%. ### deleted


### 2. member states shall ensure that where a district heating and cooling system is built or substantially refurbished it meets the criteria set out in paragraph 1 applicable at such time when it starts or continues its operation after the refurbishment. in addition , member states shall ensure that when a district heating and cooling system is built or substantially refurbished , there is no increase in the use of fossil fuels other than natural gas in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment , and that any new heat sources in that system do not use fossil fuels other than natural gas. ### 2. member states shall ensure that where a district heating and cooling system is built or substantially refurbished it meets the criteria set out in paragraph 1 applicable at such time when it starts or continues its operation after the refurbishment , with the exception of reserve plants (operational during fewer than 180 days in the year). in addition , member states shall ensure that when a district heating and cooling system is built or substantially refurbished , there is no increase in the use of fossil fuels other than natural gas in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment , and that any new heat sources in that system do not use fossil fuels other than natural gas.


### a thermal electricity generation installation with an average annual total energy input exceeding 5 mw , in order to assess the cost and benefits of providing for the operation of the installation as a high-efficiency cogeneration installation; ### a thermal electricity generation installation with an average annual total energy input exceeding 5 mw , with the exception of campaign plants (operational during fewer than 180 days in the year) in order to assess the cost and benefits of providing for the operation of the installation as a high-efficiency cogeneration installation;


### 9. where appropriate , national regulatory authorities may require transmission system operators and distribution system operators to encourage high-efficiency cogeneration to be sited close to areas of heat demand by reducing the connection and use-of-system charges. ### 9. where appropriate , national regulatory authorities may require transmission system operators and distribution system operators to encourage high-efficiency cogeneration to be sited close to areas of heat demand by reducing the connection and use-of-system charges or to encourage decentralised renewable energy production at end users to avoid network losses. by 2024 , the commission shall adopt an implementing act laying down the methodology for the calculation and verification of avoided network losses.


### member states cannot count reduced energy use in sectors , including the transport and building sector , that would have occurred in any event as a result of emission trading pursuant to the eu ets directive towards the fulfilment of the energy savings obligation pursuant to article 8(1). if an entity is an obligated party under a national energy efficiency obligation scheme under article 9 of this directive and under the eu emissions trading system for buildings and road transport [com(2021) 551 final ,2021/0211 (cod)] , the monitoring and verification system shall ensure that the carbon price passed through when releasing fuel for consumption [according article 1(21) of com(2021) 551 final ,2021/0211 (cod)] is taken into account when calculating and reporting the energy savings of its energy saving measures; ### member states cannot double count reduced energy use in industry already covered by the eu ets , that would have occurred in any event as a result of emission trading pursuant to the eu ets directive towards the fulfilment of the energy savings obligation pursuant to article 8(1). if an entity is an obligated party under a national energy efficiency obligation scheme under article 9 of this directive and under the eu emissions trading system for scheme under article 9 of this the eu emissions trading system for industry , energy savings of projects have to be assessed on a case-by-case basis. the assessment should determine the part of the energy saving from the project that is induced by the energy saving obligation scheme above the savings that would have occurred as a result of the ets carbon price. this part of the reduced energy use should count towards the fulfilment of the energy savings obligation pursuant to article 8(1).


### policies with the purpose of encouraging higher levels of energy efficiency of products , equipment , transport systems , vehicles and fuels , buildings and building elements , processes or markets shall be permitted , except those policy measures regarding the use of direct combustion of fossil fuel technologies that are implemented as from 1 january 2024 ; ### policies with the purpose of encouraging higher levels of energy efficiency of products , equipment , transport systems , vehicles and fuels , buildings and building elements , processes or markets shall be permitted;


### energy savings as a result of policy measures regarding the use of direct fossil fuel combustion in products , equipment , transport systems , vehicles , buildings or works shall not count towards the fulfilment of energy savings obligation as from 1 january 2024; ### energy savings as a result of policy measures regarding the use of direct fossil fuel combustion in products , equipment , transport systems , vehicles , buildings or works shall count maximum only for with a lifespan of 3 years towards the fulfilment of energy savings obligation as from 1 january 2024;


### for policies that accelerate the uptake of more efficient products and vehicles , except those regarding the use of direct fossil fuel combustion , full credit may be claimed , provided that it is shown that such uptake takes place before expiry of the average expected lifetime of the product or vehicle , or before the product or vehicle would usually be replaced , and the savings are claimed only for the period until end of the average expected lifetime of the product or vehicle to be replaced; ### for policies that accelerate the uptake of more efficient products and vehicles , full credit may be claimed , provided that it is shown that such uptake takes place before expiry of the average expected lifetime of the product or vehicle , or before the product or vehicle would usually be replaced , and the savings are claimed only for the period until end of the average expected lifetime of the product or vehicle to be replaced;


### (3) it is necessary to ensure that clear taxation rules for energy products and electricity continue to contribute to the smooth functioning of the internal market while at the same time tackling the climate and environmental-related challenges in the context of the communication from the commission ‘the european green deal’28. energy taxation can contribute to the ambition of at least 55 % reduction in net greenhouse gas emissions by 2030 compared to 1990 , as well as to the objective of zero pollution through the implementation of the polluter-pays principle , by ensuring that the taxation of motor fuels , heating fuels and electricity better reflects the impact they have on the environment and on health. the contribution of energy taxation to those objectives has been endorsed by the council conclusions on the eu energy taxation framework29. ### deleted


### (4) environmental taxation can be a cost-effective mean for member states to achieve the targeted reductions of greenhouse gasses. the proper functioning of the internal market requires common rules on that taxation. ### (4) environmental taxation can be a cost-effective mean for member states to achieve the targeted reductions of greenhouse gasses. the proper functioning of the internal market requires common rules on that taxation , while preserving member states' flexibility and sovereignty over tax prerogatives , not least with respect to promoting economic and social development of their insular , peripheral and remote regions.


### (4) environmental taxation can be a cost-effective mean for member states to achieve the targeted reductions of greenhouse gasses. the proper functioning of the internal market requires common rules on that taxation. ### (4) environmental taxation can be a cost-effective mean for member states to achieve the targeted reductions of greenhouse gasses. the proper functioning of the internal market requires common rules on that taxation , while preserving the competitiveness of the union economy and member states' flexibility and sovereignty over tax prerogatives , not least with respect to promoting economic and social development of their insular , peripheral and remote regions.


### (4) environmental taxation can be a cost-effective mean for member states to achieve the targeted reductions of greenhouse gasses. the proper functioning of the internal market requires common rules on that taxation. ### (4) there are measures other than taxation which can influence behaviour and bring about the energy transition in a more effective and less costly way.


### (5) member states should , however , be able to use the energy taxation of motor fuels , heating fuels and electricity for a variety of purposes not necessarily nor specifically or exclusively related to the reduction of greenhouse gases. ### (5) member states should , however , be able to calibrate the energy taxation of motor fuels , heating fuels and electricity for a variety of purposes not necessarily nor specifically or exclusively related to the reduction of greenhouse gases.


### (8) as a party to the united nations framework convention on climate change , the union has ratified the paris agreement. the taxation of energy products and , where appropriate , electricity is one of the instruments available for achieving the paris agreement objectives. ### (8) as a party to the united nations framework convention on climate change , the union has ratified the paris agreement. however , the taxation of energy products or , where appropriate , electricity is not currently a suitable or viable instrument for achieving the paris agreement objectives.


### (11) member states should also replicate at any time the ranking of minimum levels of taxation as laid down in the annex in relation to different products for each given use in order to ensure an environmentally tailored structure of rates. the minimum levels of energy taxation should be automatically aligned every year to take into account the evolution of their real value in order to preserve the current level of rate harmonization and therefore reduce the volatility stemming from energy and food prices. this alignment should be made on the basis of the changes in the union-wide harmonised index of consumer prices excluding energy and unprocessed food as published by eurostat. ### deleted


### (13) as a general principle , member states should apply to energy products and electricity levels of taxation not less than the minimum levels of taxation as set out by the directive. member states should be permitted to comply with the union minimum taxation levels by taking into account the total charge levied in respect of all indirect taxes which they have chosen to apply (excluding vat). ### deleted


### (21) the union and the member states have concluded multilateral agreements regarding air services and air transport , or bilateral agreements with third countries. those agreements include provisions related to the taxation of aviation fuel. aviation fuel has traditionally had a privileged tax regime. the need to pursue the objectives of the directive requires that , without prejudice to those international agreements , energy products and electricity supplied for intra-eu air navigation , except cargo-only flights should be taxed. the exemption for the fuel used by cargo-only flights is still needed in the absence of more efficient alternatives. ### deleted


### (22) in order to ensure a smooth implementation of this directive , the minimum levels of taxation for motor fuels used for intra-eu non-business and non-pleasure flights would be reached over a transitional period of ten years , whereas sustainable alternative fuels and electricity would be subject to a zero minimum rate for ten years. energy products and electricity used for intra-eu business aviation and pleasure flights should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states. ### deleted


### (23) fuel used for waterborne navigation , including fishing , should also be taxed , and the member states party to international agreements providing for the exemption of that fuel , have to , by the date of the application of this directive , ensure they eliminate the incompatibilities. it is necessary to allow for a different level of taxation to be applied to the use of energy products and electricity for intra-eu waterborne regular service navigation , fishing and freight transport and their respective at berth activities. considering the specificity of those uses , the minimum levels of taxation should be lower than the ones applicable to general motor fuel use. in order to provide an incentive to the use of sustainable alternative fuels and electricity , such fuels and electricity should be exempted from taxation for ten years. energy products and electricity used for the remaining intra-eu waterborne navigation should be subject to the standard levels of taxation applicable to motor fuels and electricity in the member states. ### deleted


### (25) member states should be permitted to apply certain other exemptions or reduced levels of taxation , where that will not be detrimental to the environmental objectives , to the proper functioning of the internal market and will not result in distortions of competition. ### (25) member states should be permitted to apply certain other exemptions or reduced levels of taxation , where necessary to offset the rise in energy costs caused by exogenous factors.


### (27) targeted reductions in the tax level may prove necessary to incentivise the achievement of environmental protection objectives and improvements in energy efficiency of the union productive sector. ### (27) targeted reductions in the tax level may prove necessary to incentivise the achievement of the objectives of economic recovery , territorial cohesion , social stability , employment and environmental protection and improvements in energy efficiency of the union productive sector.


### (28) targeted reductions in the tax level may prove necessary to tackle the social impact of energy taxes. an exemption from taxation may temporarily prove necessary to protect vulnerable households. ### (28) targeted reductions in the tax level may prove necessary to tackle the social impact of energy taxes. an exemption from taxation may temporarily prove necessary to protect vulnerable households; the concept of energy poverty should cover not only those without the economic means to afford energy but also households that spend a large share of their disposable income on energy services , as well as those obliged to reduce their energy spending because of their income.


### (29) in view of the financial , economic and environmental effects on each member state , such as the need of electrification of the transport sector , it is necessary to provide for a procedure authorising the introduction by member states , for a set period , of other exemptions or reduced levels of taxation. for reasons of protection of environment and human health , including the reduction of air pollution , it is necessary to provide for a procedure authorising the introduction by member states , for a set period , of specific increased rates. such authorisation , following a justified request by member states and on a proposal from the commission , should be adopted by means of a council implementing decision in accordance with article 291 of the tfeu. such measures should be under regular review. ### (29) in view of the financial , economic and environmental effects on each member state , such as the need to decarbonise the transport sector , each member state may provide for exemptions or reduced levels of taxation , which should be reviewed periodically. for reasons of protection of the economic recovery , territorial cohesion , social stability , the environment and human health , including the reduction of air pollution , it is necessary to provide for a procedure that allows member states to introduce , for a set period , rates calibrated as above.


### (35) reference should be made to the version presently applicable of the combined nomenclature. in order to ensure that the references to combined nomenclature (cn) codes in this directive are updated whenever necessary , and that the minimum rates of taxation reflect prices evolution , the power to adopt acts in accordance with article 290 of the tfeu should be delegated to the commission in respect of updating the reference to those cn codes , and in respect of updating the minimum tax rates based on yearly variations of the consumer price index. it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement of 13 april 2016 on better law-making. in particular , to ensure equal participation in the preparation of delegated acts , the council receives all documents at the same time as member states’ experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts. ### (35) reference should be made to the version presently applicable of the combined nomenclature. in order to ensure that the references to combined nomenclature (cn) codes in this directive are updated whenever necessary , and that the maximum rates of taxation reflect prices evolution , the power to adopt acts in accordance with article 290 of the tfeu should be delegated to the commission in respect of updating the reference to those cn codes , and in respect of updating the maximum tax rates based on yearly variations of the consumer price index. it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement of 13 april 2016 on better law-making. in particular , to ensure equal participation in the preparation of delegated acts , the council receives all documents at the same time as member states’ experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts.


### (36) every five years and for the first time five years after the entry into force of this directive , the commission should report to the council on the application of this directive , examining in particular the minimum levels of taxation , the impact of innovation and technological developments , especially as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report should take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the wider relevant objectives of the treaties. ### (36) every five years and for the first time five years after the entry into force of this directive , the commission should report to the council on the application of this directive , examining in particular the minimum levels of taxation , the impact of innovation and technological developments , especially as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report should take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation , the impact of this directive on the connectivity of remote , peripheral and insular regions and territories with significant island complexes , the possible impact of the provisions of this directive on the competitiveness of the union economy , and any distortions thereto , as well as and the wider relevant objectives of the treaties.


### (36) every five years and for the first time five years after the entry into force of this directive , the commission should report to the council on the application of this directive , examining in particular the minimum levels of taxation , the impact of innovation and technological developments , especially as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report should take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the wider relevant objectives of the treaties. ### (36) every five years and for the first time five years after the entry into force of this directive , the commission should report to the council on the application of this directive , examining in particular the minimum and maximum levels of taxation , the impact of innovation and technological developments , especially as regards energy efficiency , the use of different types of fuel and electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report should take into account the proper functioning of the internal market , economic , strategic , environmental and social considerations , the real value of the minimum levels of taxation and the wider relevant objectives of the treaties.


### (36) every five years and for the first time five years after the entry into force of this directive , the commission should report to the council on the application of this directive , examining in particular the minimum levels of taxation , the impact of innovation and technological developments , especially as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report should take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the wider relevant objectives of the treaties. ### (36) every five years and for the first time five years after the entry into force of this directive , the commission should report to the council on the application of this directive , examining in particular the minimum levels of taxation , the impact of innovation and technological developments , especially as regards energy efficiency , the use of renewable energy sources in transport , their contribution to reducing emissions and the justification for the exemptions , reductions and differentiations laid down in this directive. the report should take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the wider relevant objectives of the treaties.


### 1. the levels of taxation which member states shall apply to the energy products and electricity listed in article 2 may not be less than the minimum levels of taxation prescribed by this directive. ### 1. the levels of taxation which member states shall apply to the energy products and electricity listed in article 2 may not be more than the maximum levels of taxation prescribed by this directive.


### for the purposes of the first subparagraph , each use for which a minimum level of taxation is identified , respectively , in tables a , b and c of annex i shall be considered to be a single use , unless otherwise specified in this directive. ### for the purposes of the first subparagraph , each use for which a maximum level of taxation is identified , respectively , in tables a , b and c of annex i shall be considered to be a single use , unless otherwise specified in this directive.


### 2. the minimum levels of taxation laid down in this directive shall be adapted every year starting from 1 january 2024 to take account of the changes in the harmonised index of consumer prices excluding energy and unprocessed food as published by eurostat. the minimum levels shall be adapted automatically , by increasing or decreasing the base amount in euro by the percentage change in that index over the preceding calendar year. ### deleted


### the commission is empowered to adopt delegated acts in accordance with article 29 to amend the minimum levels of taxation as referred to in the first subparagraph. ### deleted


### as from 1 january 2023 , the minimum levels of taxation applicable to motor fuels shall be fixed as set out in table a of annex i. ### as from 1 january 2023 , the maximum levels of taxation applicable to motor fuels shall be fixed as set out in table a of annex i.


### without prejudice to article 5(2) , when a transitional period is applicable as provided for in table a of annex i , the increase in the minimum levels of taxation shall be fixed at one tenth per year until 1 january 2033. for low-carbon fuels , the minimum level of taxation set for the first year of the transitional period shall apply until 1 january 2033. ### deleted


### as from 1 january 2023 , notwithstanding article 7 , the minimum levels of taxation applicable to products used as motor fuel for the purposes set out in paragraph 2 of this article shall be fixed as set out in table b of annex i . ### as from 1 january 2023 , notwithstanding article 7 , the maximum levels of taxation applicable to products used as motor fuel for the purposes set out in paragraph 2 of this article shall be fixed as set out in table b of annex i .


### without prejudice to article 5(2) , when a transitional period is applicable as provided for in table c of annex i , the increase in the minimum levels of taxation shall be fixed at one tenth per year until 1 january 2033. for low-carbon fuels , the minimum level of taxation set for the first year of the transitional period shall apply until 1 january 2033. ### deleted


### 2. by derogation from paragraph 1 , member states may , for reasons of environmental policy , subject the products referred to in paragraph 1 to taxation without having to respect the minimum levels of taxation laid down in this directive. in such case , the taxation of those products shall replicate the ranking between the minimum levels of taxation as laid down in annex i and shall not be taken into account for the purposes of satisfying the minimum level of taxation on electricity laid down in article 10. ### deleted


### renewable fuels of non-biological origin , advanced sustainable biofuels , bioliquids , biogas and advanced sustainable products falling within cn codes 4401 and 4402; ### renewable fuels of non-biological origin , advanced sustainable biofuels , bioliquids , biogas and advanced sustainable products falling within cn codes 38249955and 38249980 , 38249985 , 38249986 , 38249992 (excluding anti-rust preparations containing amines as active constituents and inorganic composite solvents and thinners for varnishes and similar products) , 38249993 , 38249996 (excluding anti-rust preparations containing amines as active constituents and inorganic composite solvents and thinners for varnishes and similar products) , 38260010 and 38260090 for their components produced from biomass , 4401 and 4402;


### 2. the power to adopt the delegated acts referred to in article 2(8) and article 5(2) shall be conferred on the commission for an indeterminate period of time from 1 january 2023. ### 2. the power to adopt the delegated acts referred to in article 2(8) shall be conferred on the commission for an indeterminate period of time from 1 january 2023.


### 2. the power to adopt the delegated acts referred to in article 2(8) and article 5(2) shall be conferred on the commission for an indeterminate period of time from 1 january 2023. ### deleted


### 3. the delegation of power referred to in article 2(8) and article 5(2) may be revoked at any time by the council. a decision to revoke shall put an end to the delegation of the power specified in that decision. it shall take effect the day following the publication of the decision in the official journal of the european union or at a later date specified therein. it shall not affect the validity of any delegated acts already in force. ### 3. the delegation of power referred to in article 2(8) may be revoked at any time by the council. a decision to revoke shall put an end to the delegation of the power specified in that decision. it shall take effect the day following the publication of the decision in the official journal of the european union or at a later date specified therein. it shall not affect the validity of any delegated acts already in force.


### 6. a delegated act adopted pursuant to article 2(8) and article 5(2) shall enter into force only if no objection has been expressed by the council within a period of two months of notification of that act to the council or if , before the expiry of that period , the council have informed the commission that it will not object. that period shall be extended by two months at the initiative of the council. ### 6. a delegated act adopted pursuant to article 2(8) shall enter into force only if no objection has been expressed by the council within a period of two months of notification of that act to the council or if , before the expiry of that period , the council have informed the commission that it will not object. that period shall be extended by two months at the initiative of the council.


### every five years and for the first time five years after 1 january 2023 , the commission shall submit to the council a report on the application of this directive. ### every five years and for the first time five years after 1 january 2023 , the commission shall submit to the european parliament and to the council a report on the application of this directive.


### the report by the commission shall , inter alia , examine the minimum levels of taxation , the impact of innovation and technological developments , in particular as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report shall take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the relevant wider objectives of the treaties. ### the report by the commission shall , inter alia , examine the minimum levels of taxation , the impact of innovation and technological developments , in particular as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report shall take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation , the impact of this directive on the connectivity of remote , peripheral and insular regions and territories with significant island complexions , the possible impact of the provisions of this directive on the competitiveness of the european economy , and any distortions thereto , as well as and the relevant wider objectives of the treaties.


### the report by the commission shall , inter alia , examine the minimum levels of taxation , the impact of innovation and technological developments , in particular as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report shall take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the relevant wider objectives of the treaties. ### the report by the commission shall , inter alia , examine the minimum levels of taxation , the impact of innovation and technological developments , in particular as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report shall take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation , the impact of this directive on air connectivity and the economic and social welfare of insular , peripheral and remote regions as well as the relevant wider objectives of the treaties.


### the report by the commission shall , inter alia , examine the minimum levels of taxation , the impact of innovation and technological developments , in particular as regards energy efficiency , the use of electricity in transport and the justification for the exemptions , reductions and differentiations laid down in this directive. the report shall take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the relevant wider objectives of the treaties. ### the report by the commission shall , inter alia , examine the minimum levels of taxation , the impact of innovation and technological developments , in particular as regards energy efficiency , the use of renewable energy sources in transport , their contribution to reducing emissions and the justification for the exemptions , reductions and differentiations laid down in this directive. the report shall take into account the proper functioning of the internal market , environmental and social considerations , the real value of the minimum levels of taxation and the relevant wider objectives of the treaties.


### (15) energy prices are key elements of energy , transport and environment policies in the union. ### (15) energy prices are key elements of energy , transport , industrial and social policies in the union.


### member states may also refund to the producer some or all of the amount of tax paid by the consumer on electricity produced from products specified in this paragraph. ### member states may also refund to the producer , including active customers , renewable energy self-consumers , renewable energy communities and local energy communities , some or all of the amount of tax paid by the consumer on electricity produced from products specified in this paragraph.


### without prejudice to article 5 , as applicable as a single use , member states may apply tax reductions , which shall not go below the relevant minima as set out in tables b , c and d of annex i on the consumption of energy products used for heating purposes or for the purposes of article 8(2) , points (b) and (c) , and on electricity in the following cases: ### without prejudice to article 5 , as applicable as a single use , member states may apply tax reductions on the consumption of energy products used for heating purposes or for the purposes of article 8(2) , points (b) and (c) , and on electricity in the following cases:


### an entity producing electricity for its own use is regarded as a distributor. notwithstanding article 13 , member states may exempt small producers of electricity provided that they tax the energy products used for the production of that electricity. ### an entity producing electricity for its own use is regarded as a distributor and therefore exempt from the tax on energy products.


### 2. measures such as tax exemptions , tax reductions , tax differentiation and tax refunds within the meaning of this directive might constitute state aid and in those cases have to be notified to the commission pursuant to article 108 (3) of the treaty on the functioning of the european union. ### deleted


### (7) the establishment of appropriate union minimum levels of taxation may enable existing differences in the national levels of taxation to be reduced. ### (7) the establishment of appropriate union maximum levels of taxation may enable existing differences in the national levels of taxation to be reduced.


### (10) in the interest of fiscal neutrality , the same minimum levels of taxation should apply for each component of energy taxation , to all energy products put to a given use. where equal minimum levels of taxation are thus set , member states should , also for reason of fiscal neutrality , ensure equal levels of national taxation on all products concerned. ### (10) in the interest of fiscal neutrality , the same maximum levels of taxation should apply for each component of energy taxation , to all energy products put to a given use. where equal maximum levels of taxation are thus set , member states should , also for reason of fiscal neutrality , ensure equal levels of national taxation on all products concerned.


### (17) it is necessary to establish different union minimum levels of taxation according to the use of the energy products and electricity. ### (17) it is necessary to establish different union maximum levels of taxation according to the use of the energy products and electricity.


### (34) in order to ensure uniform conditions for the implementation of this directive , implementing powers should be conferred on the commission to determine whether the control and movement provisions of directive 2008/118/ec are to apply to the products giving rise to evasion , avoidance or abuse. those powers should be exercised in accordance with regulation (eu) no 182/2011 of the european parliament and of the council34. ### deleted


### those delegated acts shall not result in any changes in the minimum tax rates set in this directive or in the addition or removal of any energy products and electricity. ### those delegated acts shall not result in any changes in the maximum tax rates set in this directive or in the addition or removal of any energy products and electricity.


### member states shall be free to give effect to the exemptions or reductions in the level of taxation prescribed by this directive either: ### member states shall be free to make the appropriate adjustments to the level of taxation prescribed by this directive either:


### without prejudice to article 5(2) , when a transitional period is applicable as provided for in table b of annex i , the increase in the minimum levels of taxation shall be fixed at one tenth per year until 1 january 2033. for low-carbon fuels , the minimum level of taxation set for the first year of the transitional period shall apply until 1 january 2033. ### deleted


### as from 1 january 2023 , the minimum levels of taxation applicable to heating fuels shall be fixed as set out in table c of annex i. ### as from 1 january 2023 , the maximum levels of taxation applicable to heating fuels shall be fixed as set out in table c of annex i.


### for the purposes of point (c) , energy products and electricity used by households recognised as vulnerable may be exempt for a maximum period of ten years after the entry into force of this directive. for the purposes of this paragraph , ‘vulnerable households’ shall mean households significantly affected by the impacts of this directive which , for the purpose of this directive , means that they are below the ‘at risk of poverty’” threshold , defined as 60% of the national median equivalised disposable income; ### for the purposes of point (c) , energy products and electricity used by households recognised as vulnerable may be exempt for a maximum period of ten years after the entry into force of this directive. for the purposes of this paragraph , ‘vulnerable households’ shall mean households significantly affected by the impacts of this directive which , for the purpose of this directive , means that they are below the ‘at risk of poverty’” threshold , defined as 60% of the national median equivalised disposable income. as set out in the proposal for a directive of the european parliament and of the council on energy efficiency (recast) (com(2021)558) , energy poverty means a household’s inability to secure a basic energy supply and to afford the basic energy services it needs for basic levels of comfort and health and a decent standard of living , including adequate heating and cooling , lighting , and energy to power appliances , against the backdrop of the national context , social policy and other relevant policies , as a result of an insufficient disposable income.


### in addition to the provisions set out in the previous articles , in particular in articles 14 , 15 , 16 , 17 and 18 , the council , acting unanimously on a proposal from the commission , may adopt implementing acts , authorising any member state to introduce further exemptions or reductions for specific policy considerations. where it is necessary , for reasons of protection of environment and human health , including the reduction of air pollution , the council , acting unanimously on a proposal from the commission , may adopt implementing acts , authorising any member state to introduce specific increased rates derogating from the ranking between the minimum levels of taxation as laid down in annex i. ### in addition to the provisions set out in the previous articles , in particular in articles 14 , 15 , 16 , 17 and 18 , the council , acting unanimously on a proposal from the commission , may adopt implementing acts , authorising any member state to introduce further exemptions or reductions for specific policy considerations.


### 3. if the commission considers that the measures provided for in paragraph 1 are no longer sustainable , particularly in terms of fair competition or distortion of the operation of the internal market , or in terms of union policy in the areas of health , protection of the environment , energy and transport , it shall submit appropriate proposals to the council. the council shall take a unanimous decision on these proposals. ### deleted


### (9) rules should be laid down to base energy taxation on the energy content of energy products and electricity , coupled with their environmental performances. for those purposes , reference should be made to the definitions of directive 2012/27/eu of the european parliament and of the council30 , to directive (eu) 2018/2001 of the european parliament and of the council31 , and to regulation (eu) 2020/852 of the european parliament and of the council32 . moreover , the list of energy products should be updated to include certain energy products , in order to ensure a unified and standardised treatment of those fuels. ### (9) rules should be laid down to base energy taxation on the energy content of energy products and electricity , coupled with their environmental performances , including their greenhouse gas savings performance. for those purposes , reference should be made to the definitions of directive 2012/27/eu of the european parliament and of the council30 , to directive (eu) 2018/2001 of the european parliament and of the council31 , and to regulation (eu) 2020/852 of the european parliament and of the council32 . moreover , the list of energy products should be updated to include certain energy products , in order to ensure a unified and standardised treatment of those fuels.


### falling within cn codes 2207 , 2208 90 91 and 2208 90 99 if these are intended for use as heating fuel or motor fuel and are exempted from the harmonized excise duty on alcohol and alcoholic beverages in accordance with article 27(1) , points (a) or (b) , of directive 92/83/ec35 ; ### falling within cn codes 2207 , 2208 90 91 and 2208 90 99 if these are intended for use as heating fuel or motor fuel;


### products falling within cn codes 2207 , 2208 90 91 and 2208 90 99 if these are intended for use as heating fuel or motor fuel and are exempted from the harmonized excise duty on alcohol and alcoholic beverages in accordance with article 27(1)(a) or (b) of directive 92/83/ec42 ; ### products falling within cn codes 2207 , 2208 90 91 and 2208 90 99 if these are intended for use as heating fuel or motor fuel;


### 2. reiterates its call for the commission to put forward a contingency plan to mitigate the risk of under-implementation and decommitments due to the late start of the cohesion policy programmes , through a legislative proposal and , if need be , a corresponding revision of the multiannual financial framework; ### 2. reiterates its call for the commission to put forward a contingency plan to mitigate the risk of under-implementation and decommitments due to the late start of the cohesion policy programmes , through a legislative proposal and , if need be , a corresponding revision of the multiannual financial framework; calls for the programmes already received by the commission , even if only provisional , to be swiftly implemented;


### 2. is of the opinion that a revision of the mff may have to be accompanied by a revision of the neighbourhood , development and international cooperation (ndici) - global europe instrument and the third instrument for pre-accession assistance (ipa iii) to reflect any policy changes in the relevant instruments and any changes in countries’ status and eligibility for eu funding; ### 2. is of the opinion that a revision of the mff may have to be accompanied by a revision of the neighbourhood , development and international cooperation (ndici) - global europe instrument and the third instrument for pre-accession assistance (ipa iii) to reflect any policy changes in the relevant instruments and any changes in countries’ status and eligibility for eu funding , especially in light of the new reality deriving from russia’s war of aggression against ukraine and the actions undertaken by the union in this regard;


### 2. calls on the commission to adopt , in early 2023 , an ambitious mff revision proposal that substantially increases the resources for heading 6; urges the member states to agree to a significant increase in ceilings; ### 2. calls on the commission to adopt , in early 2023 , an ambitious mff revision proposal that substantially increases the resources for heading 6 to an extent that is ambitious enough to address the current challenges of eu external action; urges the member states to agree to a significant increase in ceilings;


### 3. underlines the necessity of providing the regions with appropriate financial means in order to deal with the waves of migration caused by the russian aggression against ukraine and its multifaceted consequences; emphasises the need to address the grave difficulties that the current rise in energy costs is causing for the regions , and to identify suitable financial instruments to deal with them at a regional level; ### 3. underlines the necessity of providing the towns and regions with appropriate and immediately accessible financial means in order to deal with the waves of migration caused by the russian aggression against ukraine and its multifaceted consequences; emphasises the need to address the grave difficulties that the current rise in energy and agricultural product costs , and the breakdown of a number of value chains , is causing for the regions , and to identify suitable financial instruments to deal with them at a regional level;


### 3. underlines its undivided solidarity with the people of ukraine and recalls the need to mobilise all available eu budget instruments to provide the strongest possible economic and financial support to ukraine and to people fleeing the war; calls for work to start on a marshall-plan-like facility within the eu budget (ukraine solidarity trust fund) to rebuild ukraine after the war , and for a massive investment programme to be launched; ### 3. underlines its undivided solidarity with the people of ukraine and recalls the need to mobilise all available eu budget instruments to provide the strongest possible economic , financial , and immediate humanitarian support to ukraine and to people fleeing the war; calls for work to start on a marshall-plan-like facility within the eu budget (ukraine solidarity trust fund) to rebuild ukraine after the war , and for a massive investment programme to be launched;


### 3. notes that the global humanitarian funding gap continues to grow; stresses that the humanitarian aid instrument must receive significantly more funding in the revised mff to match the eu’s ambition to be a leading humanitarian donor; ### 3. notes that the global humanitarian funding gap continues to grow , currently standing at usd 36.9 billion – the highest ever; stresses that the humanitarian aid instrument must receive significantly more funding in the revised mff to match the eu’s ambition to be a leading humanitarian donor and lead by example in encouraging other donors to increase their financial contribution to humanitarian aid;


### 4. calls for a significant increase in the european union solidarity fund (eusf) budget , which would help regions to anticipate and mitigate the effects of climate change , and for the scope of the eusf to be broadened , so that it can also support more climate-resilient restoration or construction of public and private infrastructure; ### 4. calls for a significant increase in the european union solidarity fund (eusf) budget , which would help regions to anticipate , mitigate and adapt to the effects of climate change , and for the scope of the eusf to be broadened , so that it can also support more climate-resilient restoration or construction of public and private infrastructure , especially infrastructure for the health sector and for the transition to an older eu;


### 4. welcomes the commission’s upcoming proposal for a european defence investment programme (edip) , the aim of which would be to introduce joint procurement and life cycle management of military capabilities , in particular those necessary to harness eu defence over the decades to counter a military threat from russia; calls on all member states to complement eu funding with funding from their national defence budgets; invites the commission to open this programme to key strategic partners and allies; ### 4. welcomes the commission’s upcoming proposal for a european defence investment programme(edip) , the aim of which would be to introduce joint procurement and life cycle management of military capabilities , in particular those critical and strategic capabilities deemed necessary to harness eu defence over the decades to counter a military threat from russia and other actors , as well as to guarantee eu security against the threats emanating from every strategic directions (both east and south) , and to empower the union to be a decisive player in its external action; calls on all member states to complement eu funding with funding from their national defence budgets in a cooperative way with the aim to create a concrete added value for the whole union; invites the commission to open this programme to key strategic partners and allies that share our interests and values , building on the already existing guidelines on the participation of third parties;


### 5. underlines that the existing possibility of transfers from the cohesion policy funds to other eu instruments of up to 5 % of the initial allocation provides for sufficient flexibility; strongly opposes the proposal of additional transfers from the cohesion policy funds put forward under the repowereu initiative. ### 5. underlines that the existing possibility of transfers from the cohesion policy funds to other eu instruments of up to 5 % of the initial allocation provides for sufficient flexibility; strongly opposes the proposal of additional transfers from the cohesion policy funds put forward under the repowereu initiative and calls on the commission to mobilise funds from the brexit reserve to finance this initiative.


### 5. calls for stronger defence cooperation with ukraine and moldova to be established , including by enhancing the financial capabilities of the european defence agency (eda) to help identify where ukraine should participate in eu defence capability development over the years to come. ### 5. calls for stronger defence cooperation with ukraine and moldova to be established , including by enhancing the financial capabilities of the european defence agency (eda) to help identify where the aforementioned countries should participate in eu defence capability development over the years to come.


### 5. calls for the mff revision to provide additional funds to the neighbourhood , development and international cooperation instrument (ndici) – global europe instrument , particularly to reinforce the budget lines most in demand recently and to meet the additional needs caused by the russian war against ukraine without diverting money from other geographic regions; ### 5. calls for the mff revision to provide additional funds to the neighbourhood , development and international cooperation instrument (ndici) – global europe instrument , particularly to reinforce the budget lines most in demand recently and to meet the additional needs caused by the russian war against ukraine without diverting money from other geographic regions and thematic lines;


### 1. reiterates its concern as regards the significant delay in the implementation of cohesion policy for the 2021-2027 period , as well as its call for the commission and the member states to speed up the adoption of the partnership agreements and programmes , without undermining their quality and while respecting the eu’s political priorities and the applicable principles; reiterates the need for special consideration to be given to less-developed regions and islands in this context; ### 1. reiterates its concern as regards the significant delay in the implementation of cohesion policy for the 2021-2027 period , as well as its call for the commission and the member states to speed up the adoption of the partnership agreements and programmes , without undermining their quality and while respecting the eu’s political priorities and the applicable principles; stresses that this delay is hampering the implementation of post-covid recovery policies and could cause less-developed regions , including the outermost regions , to fall further behind; reiterates the need for special consideration to be given to less-developed regions and islands in this context;


### 1. reiterates that , from the very beginning of the new multiannual financial framework (mff) , the available margins under heading 6 have been limited and have been shrinking further , including through early depletion of the cushion; encourages the commission to propose an ambitious early revision of the mff in order to meet needs more effectively; ### 1. reiterates that , from the very beginning of the new multiannual financial framework (mff) , the available margins under heading 6 have been limited and have been shrinking further , including through early depletion of the cushion; encourages the commission to propose an ambitious early revision of the mff in order to more effectively meet needs that emerge or escalate;


### (1) the purpose of this regulation is to improve the functioning of the internal market by laying down a uniform legal framework in particular for the development , marketing and use of artificial intelligence in conformity with union values. this regulation pursues a number of overriding reasons of public interest , such as a high level of protection of health , safety and fundamental rights , and it ensures the free movement of ai-based goods and services cross-border , thus preventing member states from imposing restrictions on the development , marketing and use of ai systems , unless explicitly authorised by this regulation. ### (1) the purpose of this regulation is to improve the functioning of the internal market by laying down a uniform legal framework in particular for the development , marketing and use of artificial intelligence in conformity with union values and the charter of fundamental rights of the european union. this regulation pursues a number of overriding reasons of public interest , such as a high level of protection of health , safety and fundamental rights , and it ensures the free movement of ai-based goods and services cross-border , thus preventing member states from imposing restrictions on the development , marketing and use of ai systems , unless explicitly authorised by this regulation.


### (1) the purpose of this regulation is to improve the functioning of the internal market by laying down a uniform legal framework in particular for the development , marketing and use of artificial intelligence in conformity with union values. this regulation pursues a number of overriding reasons of public interest , such as a high level of protection of health , safety and fundamental rights , and it ensures the free movement of ai-based goods and services cross-border , thus preventing member states from imposing restrictions on the development , marketing and use of ai systems , unless explicitly authorised by this regulation. ### (1) the purpose of this regulation is to improve the functioning of the internal market by laying down a uniform legal framework in particular for the development , marketing and use of trustworthy artificial intelligence in conformity with union values. this regulation pursues a number of overriding reasons of public interest , such as a high level of protection of health , safety , the environment , and fundamental rights , and it ensures the free movement of ai-based goods and services cross-border , thus preventing member states from imposing restrictions on the development , marketing and use of ai systems , unless explicitly authorised by this regulation.


### (5) a union legal framework laying down harmonised rules on artificial intelligence is therefore needed to foster the development , use and uptake of artificial intelligence in the internal market that at the same time meets a high level of protection of public interests , such as health and safety and the protection of fundamental rights , as recognised and protected by union law. to achieve that objective , rules regulating the placing on the market and putting into service of certain ai systems should be laid down , thus ensuring the smooth functioning of the internal market and allowing those systems to benefit from the principle of free movement of goods and services. by laying down those rules , this regulation supports the objective of the union of being a global leader in the development of secure , trustworthy and ethical artificial intelligence , as stated by the european council33 , and it ensures the protection of ethical principles , as specifically requested by the european parliament34. ### (5) a union legal framework laying down harmonised rules on artificial intelligence is therefore needed to foster the development , use and uptake of artificial intelligence in the internal market that at the same time meets a high level of protection of public interests , such as health and safety and the protection of fundamental rights , as recognised and protected by union law. to achieve that objective , rules regulating the placing on the market and putting into service of certain ai systems should be laid down , thus ensuring the smooth functioning of the internal market and allowing those systems to benefit from the principle of free movement of goods and services. by laying down those rules , this regulation supports the objective of the union of being a global leader in the development of secure and trustworthy artificial intelligence based on fundamental rights , as stated by the european council33 , and it ensures the protection of ethical principles , as specifically requested by the european parliament34.


### (13) in order to ensure a consistent and high level of protection of public interests as regards health , safety and fundamental rights , common normative standards for all high-risk ai systems should be established. those standards should be consistent with the charter of fundamental rights of the european union (the charter) and should be non-discriminatory and in line with the union’s international trade commitments. ### (13) in order to ensure a consistent and high level of protection of public interests as regards health , safety and fundamental rights , common normative standards for all ai systems should be established to restrict or prevent the use or marketing of systems known to be high-risk. those standards should be consistent with the charter of fundamental rights of the european union (the charter) and should be non-discriminatory and in line with the union’s international trade commitments.


### (13) in order to ensure a consistent and high level of protection of public interests as regards health , safety and fundamental rights , common normative standards for all high-risk ai systems should be established. those standards should be consistent with the charter of fundamental rights of the european union (the charter) and should be non-discriminatory and in line with the union’s international trade commitments. ### (13) in order to ensure a consistent and high level of protection of public interests as regards health , safety and fundamental rights , common normative standards for all ai systems should be established. those standards should be consistent with the charter of fundamental rights of the european union (the charter) and should be non-discriminatory and in line with the union’s international trade commitments.


### (18) the use of ai systems for ‘real-time’ remote biometric identification of natural persons in publicly accessible spaces for the purpose of law enforcement is considered particularly intrusive in the rights and freedoms of the concerned persons , to the extent that it may affect the private life of a large part of the population , evoke a feeling of constant surveillance and indirectly dissuade the exercise of the freedom of assembly and other fundamental rights. in addition , the immediacy of the impact and the limited opportunities for further checks or corrections in relation to the use of such systems operating in ‘real-time’ carry heightened risks for the rights and freedoms of the persons that are concerned by law enforcement activities. ### (18) the use of ai systems for ‘real-time’ remote biometric identification of natural persons in publicly accessible spaces for the purpose of law enforcement improperly encroaches on the rights and freedoms of persons and is detrimental to the private life of a large part of the population in that it makes constant surveillance possible and , in so doing , makes it difficult to exercise freedom of assembly and other fundamental rights. in addition , the immediacy of the impact and the limited opportunities for further checks or corrections in relation to the use of such systems operating in ‘real-time’ carry heightened risks for the rights and freedoms of the persons that are concerned by law enforcement activities.


### (18) the use of ai systems for ‘real-time’ remote biometric identification of natural persons in publicly accessible spaces for the purpose of law enforcement is considered particularly intrusive in the rights and freedoms of the concerned persons , to the extent that it may affect the private life of a large part of the population , evoke a feeling of constant surveillance and indirectly dissuade the exercise of the freedom of assembly and other fundamental rights. in addition , the immediacy of the impact and the limited opportunities for further checks or corrections in relation to the use of such systems operating in ‘real-time’ carry heightened risks for the rights and freedoms of the persons that are concerned by law enforcement activities. ### (18) the use of ai systems for biometric or biometrics-based identification of natural persons in publicly accessible spaces for the purpose of law enforcement is considered particularly intrusive in the rights and freedoms of the concerned persons , to the extent that it may affect the private life of a large part of the population , evoke a feeling of constant surveillance and indirectly dissuade the exercise of the freedom of assembly and other fundamental rights. in addition , the immediacy of the impact and the limited opportunities for further checks or corrections carry heightened risks for the rights and freedoms of the persons that are concerned by law enforcement activities.


### (19) the use of those systems for the purpose of law enforcement should therefore be prohibited , except in three exhaustively listed and narrowly defined situations , where the use is strictly necessary to achieve a substantial public interest , the importance of which outweighs the risks. those situations involve the search for potential victims of crime , including missing children; certain threats to the life or physical safety of natural persons or of a terrorist attack; and the detection , localisation , identification or prosecution of perpetrators or suspects of the criminal offences referred to in council framework decision 2002/584/jha38if those criminal offences are punishable in the member state concerned by a custodial sentence or a detention order for a maximum period of at least three years and as they are defined in the law of that member state. such threshold for the custodial sentence or detention order in accordance with national law contributes to ensure that the offence should be serious enough to potentially justify the use of ‘real-time’ remote biometric identification systems. moreover , of the 32 criminal offences listed in the council framework decision 2002/584/jha , some are in practice likely to be more relevant than others , in that the recourse to ‘real-time’ remote biometric identification will foreseeably be necessary and proportionate to highly varying degrees for the practical pursuit of the detection , localisation , identification or prosecution of a perpetrator or suspect of the different criminal offences listed and having regard to the likely differences in the seriousness , probability and scale of the harm or possible negative consequences. ### (19) the use of those systems in publicly accessible spaces should therefore be prohibited as a matter of principle.


### (19) the use of those systems for the purpose of law enforcement should therefore be prohibited , except in three exhaustively listed and narrowly defined situations , where the use is strictly necessary to achieve a substantial public interest , the importance of which outweighs the risks. those situations involve the search for potential victims of crime , including missing children; certain threats to the life or physical safety of natural persons or of a terrorist attack; and the detection , localisation , identification or prosecution of perpetrators or suspects of the criminal offences referred to in council framework decision 2002/584/jha38 if those criminal offences are punishable in the member state concerned by a custodial sentence or a detention order for a maximum period of at least three years and as they are defined in the law of that member state. such threshold for the custodial sentence or detention order in accordance with national law contributes to ensure that the offence should be serious enough to potentially justify the use of ‘real-time’ remote biometric identification systems. moreover , of the 32 criminal offences listed in the council framework decision 2002/584/jha , some are in practice likely to be more relevant than others , in that the recourse to ‘real-time’ remote biometric identification will foreseeably be necessary and proportionate to highly varying degrees for the practical pursuit of the detection , localisation , identification or prosecution of a perpetrator or suspect of the different criminal offences listed and having regard to the likely differences in the seriousness , probability and scale of the harm or possible negative consequences. ### (19) the use of biometric or biometrics-based systems that can be used for monitoring large numbers of persons , be it in public or private spaces , should therefore be prohibited.


### (19) the use of those systems for the purpose of law enforcement should therefore be prohibited , except in three exhaustively listed and narrowly defined situations , where the use is strictly necessary to achieve a substantial public interest , the importance of which outweighs the risks. those situations involve the search for potential victims of crime , including missing children; certain threats to the life or physical safety of natural persons or of a terrorist attack; and the detection , localisation , identification or prosecution of perpetrators or suspects of the criminal offences referred to in council framework decision 2002/584/jha38 if those criminal offences are punishable in the member state concerned by a custodial sentence or a detention order for a maximum period of at least three years and as they are defined in the law of that member state. such threshold for the custodial sentence or detention order in accordance with national law contributes to ensure that the offence should be serious enough to potentially justify the use of ‘real-time’ remote biometric identification systems. moreover , of the 32 criminal offences listed in the council framework decision 2002/584/jha , some are in practice likely to be more relevant than others , in that the recourse to ‘real-time’ remote biometric identification will foreseeably be necessary and proportionate to highly varying degrees for the practical pursuit of the detection , localisation , identification or prosecution of a perpetrator or suspect of the different criminal offences listed and having regard to the likely differences in the seriousness , probability and scale of the harm or possible negative consequences. ### (19) the use of those systems for the purpose of law enforcement must therefore be prohibited , as a matter of principle and without any general exceptions. only in exceptional cases and on the basis of decisions taken by the judicial authority competent on the matter and in the territory of one of the member states , within the scope of the following three exhaustively listed and narrowly defined situations , may the use of such systems be permitted to the extent and for the time period strictly necessary to achieve an extremely substantial public interest , the importance of which is considered by the relevant judicial authority to prevail over the risks. those situations involve the search for potential victims of crime , including missing children; certain threats to the life or physical safety of natural persons or of a terrorist attack; and the detection , localisation , identification or prosecution of perpetrators or suspects of the criminal offences referred to in council framework decision 2002/584/jha38 if those criminal offences are punishable in the member state concerned by a custodial sentence or a detention order for a maximum period of at least ten years and as they are defined in the law of that member state. such threshold for the custodial sentence or detention order in accordance with national law contributes to ensure that the offence should be serious enough to potentially justify the use of ‘real-time’ remote biometric identification systems. moreover , of the 32 criminal offences listed in the council framework decision 2002/584/jha , some are in practice likely to be more relevant than others , in that the recourse to ‘real-time’ remote biometric identification will foreseeably be necessary and proportionate to highly varying degrees for the practical pursuit of the detection , localisation , identification or prosecution of a perpetrator or suspect of the different criminal offences listed and having regard to the likely differences in the seriousness , probability and scale of the harm or possible negative consequences.


### (20) in order to ensure that those systems are used in a responsible and proportionate manner , it is also important to establish that , in each of those three exhaustively listed and narrowly defined situations , certain elements should be taken into account , in particular as regards the nature of the situation giving rise to the request and the consequences of the use for the rights and freedoms of all persons concerned and the safeguards and conditions provided for with the use. in addition , the use of ‘real-time’ remote biometric identification systems in publicly accessible spaces for the purpose of law enforcement should be subject to appropriate limits in time and space , having regard in particular to the evidence or indications regarding the threats , the victims or perpetrator. the reference database of persons should be appropriate for each use case in each of the three situations mentioned above. ### deleted


### (21) each use of a ‘real-time’ remote biometric identification system in publicly accessible spaces for the purpose of law enforcement should be subject to an express and specific authorisation by a judicial authority or by an independent administrative authority of a member state. such authorisation should in principle be obtained prior to the use , except in duly justified situations of urgency , that is , situations where the need to use the systems in question is such as to make it effectively and objectively impossible to obtain an authorisation before commencing the use. in such situations of urgency , the use should be restricted to the absolute minimum necessary and be subject to appropriate safeguards and conditions , as determined in national law and specified in the context of each individual urgent use case by the law enforcement authority itself. in addition , the law enforcement authority should in such situations seek to obtain an authorisation as soon as possible , whilst providing the reasons for not having been able to request it earlier. ### deleted


### (21) each use of a ‘real-time’ remote biometric identification system in publicly accessible spaces for the purpose of law enforcement should be subject to an express and specific authorisation by a judicial authority or by an independent administrative authority of a member state. such authorisation should in principle be obtained prior to the use , except in duly justified situations of urgency , that is , situations where the need to use the systems in question is such as to make it effectively and objectively impossible to obtain an authorisation before commencing the use. in such situations of urgency , the use should be restricted to the absolute minimum necessary and be subject to appropriate safeguards and conditions , as determined in national law and specified in the context of each individual urgent use case by the law enforcement authority itself. in addition , the law enforcement authority should in such situations seek to obtain an authorisation as soon as possible , whilst providing the reasons for not having been able to request it earlier. ### (21) each use of a ‘real-time’ remote biometric identification system in publicly accessible spaces for the purpose of law enforcement must be subject to an express and specific authorisation by an independent judicial authority of a member state. such authorisation absolutely must be obtained prior to the use.


### (22) furthermore , it is appropriate to provide , within the exhaustive framework set by this regulation that such use in the territory of a member state in accordance with this regulation should only be possible where and in as far as the member state in question has decided to expressly provide for the possibility to authorise such use in its detailed rules of national law. consequently , member states remain free under this regulation not to provide for such a possibility at all or to only provide for such a possibility in respect of some of the objectives capable of justifying authorised use identified in this regulation. ### deleted


### (23) the use of ai systems for ‘real-time’ remote biometric identification of natural persons in publicly accessible spaces for the purpose of law enforcement necessarily involves the processing of biometric data. the rules of this regulation that prohibit , subject to certain exceptions , such use , which are based on article 16 tfeu , should apply as lex specialis in respect of the rules on the processing of biometric data contained in article 10 of directive (eu) 2016/680 , thus regulating such use and the processing of biometric data involved in an exhaustive manner. therefore , such use and processing should only be possible in as far as it is compatible with the framework set by this regulation , without there being scope , outside that framework , for the competent authorities , where they act for purpose of law enforcement , to use such systems and process such data in connection thereto on the grounds listed in article 10 of directive (eu) 2016/680. in this context , this regulation is not intended to provide the legal basis for the processing of personal data under article 8 of directive 2016/680. however , the use of ‘real-time’ remote biometric identification systems in publicly accessible spaces for purposes other than law enforcement , including by competent authorities , should not be covered by the specific framework regarding such use for the purpose of law enforcement set by this regulation. such use for purposes other than law enforcement should therefore not be subject to the requirement of an authorisation under this regulation and the applicable detailed rules of national law that may give effect to it. ### (23) the use of ai systems for ‘real-time’ remote biometric identification of natural persons in publicly accessible spaces necessarily results in the processing of biometric data. the rules of this regulation that prohibit , subject to certain exceptions , such use , which are based on article 16 tfeu , should apply as lex specialis in respect of the rules on the processing of biometric data contained in article 10 of directive (eu) 2016/680.


### (23) the use of ai systems for ‘real-time’ remote biometric identification of natural persons in publicly accessible spaces for the purpose of law enforcement necessarily involves the processing of biometric data. the rules of this regulation that prohibit , subject to certain exceptions , such use , which are based on article 16 tfeu , should apply as lex specialis in respect of the rules on the processing of biometric data contained in article 10 of directive (eu) 2016/680 , thus regulating such use and the processing of biometric data involved in an exhaustive manner. therefore , such use and processing should only be possible in as far as it is compatible with the framework set by this regulation , without there being scope , outside that framework , for the competent authorities , where they act for purpose of law enforcement , to use such systems and process such data in connection thereto on the grounds listed in article 10 of directive (eu) 2016/680. in this context , this regulation is not intended to provide the legal basis for the processing of personal data under article 8 of directive 2016/680. however , the use of ‘real-time’ remote biometric identification systems in publicly accessible spaces for purposes other than law enforcement , including by competent authorities , should not be covered by the specific framework regarding such use for the purpose of law enforcement set by this regulation. such use for purposes other than law enforcement should therefore not be subject to the requirement of an authorisation under this regulation and the applicable detailed rules of national law that may give effect to it. ### deleted


### (23) the use of ai systems for ‘real-time’ remote biometric identification of natural persons in publicly accessible spaces for the purpose of law enforcement necessarily involves the processing of biometric data. the rules of this regulation that prohibit , subject to certain exceptions , such use , which are based on article 16 tfeu , should apply as lex specialis in respect of the rules on the processing of biometric data contained in article 10 of directive (eu) 2016/680 , thus regulating such use and the processing of biometric data involved in an exhaustive manner. therefore , such use and processing should only be possible in as far as it is compatible with the framework set by this regulation , without there being scope , outside that framework , for the competent authorities , where they act for purpose of law enforcement , to use such systems and process such data in connection thereto on the grounds listed in article 10 of directive (eu) 2016/680. in this context , this regulation is not intended to provide the legal basis for the processing of personal data under article 8 of directive 2016/680. however , the use of ‘real-time’ remote biometric identification systems in publicly accessible spaces for purposes other than law enforcement , including by competent authorities , should not be covered by the specific framework regarding such use for the purpose of law enforcement set by this regulation. such use for purposes other than law enforcement should therefore not be subject to the requirement of an authorisation under this regulation and the applicable detailed rules of national law that may give effect to it. ### (23) the use of ai systems for ‘real-time’ remote biometric identification of natural persons in publicly accessible spaces for the purpose of law enforcement necessarily involves the processing of biometric data. the rules of this regulation that prohibit , subject to certain exceptions , such use , which are based on article 16 tfeu , should apply as lex specialis in respect of the rules on the processing of biometric data contained in article 10 of directive (eu) 2016/680 , thus regulating such use and the processing of biometric data involved in an exhaustive manner. therefore , such use and processing should only be possible in as far as it is compatible with the framework set by this regulation , without there being scope , outside that framework , for the competent authorities , where they act for purpose of law enforcement , to use such systems and process such data in connection thereto on the grounds listed in article 10 of directive (eu) 2016/680. in this context , this regulation is not intended to provide the legal basis for the processing of personal data under article 8 of directive 2016/680.


### (27) high-risk ai systems should only be placed on the union market or put into service if they comply with certain mandatory requirements. those requirements should ensure that high-risk ai systems available in the union or whose output is otherwise used in the union do not pose unacceptable risks to important union public interests as recognised and protected by union law. ai systems identified as high-risk should be limited to those that have a significant harmful impact on the health , safety and fundamental rights of persons in the union and such limitation minimises any potential restriction to international trade , if any. ### (27) high-risk ai systems should only be placed on the union market or put into service if they comply with certain mandatory requirements. those requirements should ensure that high-risk ai systems available in the union or whose output is otherwise used in the union do not pose unacceptable risks to important union public interests as recognised and protected by union law. ai systems identified as high-risk should be limited to those that have a harmful impact on the health , safety and fundamental rights of persons in the union and such limitation minimises any potential restriction to international trade , if any.