### (5) the use of semiconductors is critical for multiple economic sectors and societal functions in the union and therefore , a resilient supply is essential for the functioning of the internal market. given the wide circulation of semiconductor products across borders , the resilience and security of supply of semiconductors can be best addressed through union harmonising legislation based on article 114 of the treaty. with a view to enabling coordinated measures for building resilience , harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the union are necessary. the proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain. ### (5) the use of semiconductors is critical for multiple economic sectors and societal functions in the union and therefore , a resilient supply is essential for the functioning and improvement of the internal market. given the wide circulation of semiconductor products across borders , the resilience and security of supply of semiconductors can be best addressed through union harmonising legislation based on article 114 of the treaty. with a view to enabling coordinated measures for building resilience , harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the union are necessary. the proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain without distorting the internal market level playing field.


### (27) the internal market would greatly benefit from common standards for green , trusted and secure chips. future smart devices , systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green , trust and cybersecurity requirements which will largely depend on the features of the underlying technology. to that end , the union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact. ### (27) the internal market would greatly benefit from common standards for green , trusted and secure chips. future smart devices , systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green , trust and cybersecurity requirements which will largely depend on the features of the underlying technology. to that end , the union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies.


### (28) in light of this , the commission , in consultation with the european semiconductor board , should prepare the ground for a certification of green , trusted and secure chips and embedded systems that rely on or make extensive use of semiconductor technologies. in particular , they should discuss and identify the relevant sectors and products in need of such certification. ### (28) in light of this , the commission , in consultation with the european semiconductor board , should identify the relevant sectors and products to prepare the ground for a certification of green , trusted and secure chips that rely on or make extensive use of semiconductor technologies.


### (30) due to the complex , quickly evolving and interlinked semiconductor value chains with various actors , a coordinated approach to regular monitoring is necessary to increase the ability to mitigate risks that may negatively affect the supply of semiconductors. member states should monitor the semiconductor value chain focusing on early warning indicators and the availability and integrity of the services and goods provided by key market actors , in such a way that it would not represent an excessive administrative burden for undertakings. ### (30) due to the complex , quickly evolving , vulnerable and interlinked semiconductor value chains with various actors , a coordinated approach to regular monitoring is necessary to increase the ability to mitigate risks that may negatively affect the supply of semiconductors. member states should monitor the semiconductor value chain , without exposing the undertakers to excessive administrative burden. member states should focus on early warning indicators and the availability of the services and goods provided by key market actors.


### (40) as part of the monitoring , member states could specifically consider the availability and integrity of the services and goods of key markets actors. such issues could be brought to the attention of the european semiconductor board by the member state concerned. ### (40) as part of the monitoring , member states could specifically consider the availability of the services and goods of key markets actors. such issues could be brought to the attention of the european semiconductor board by the member state concerned.


### (42) the semiconductor crisis stage should be triggered in the presence of concrete , serious , and reliable evidence of such a crisis. a semiconductor crisis occurs in case of serious disruptions to the supply of semiconductors leading to significant shortages which entail significant delays and negative effects on one or more important economic sectors in the union , either directly or through ripple effects of the shortage , given that the union’s industrial sectors represent a strong user base of semiconductors. alternatively or in addition , a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant shortages which prevent the supply , repair and maintenance of essential products used by critical sectors , for instance medical and diagnostic equipment. ### (42) the semiconductor crisis stage should be triggered in the presence of concrete and reliable evidence of such a crisis. a semiconductor crisis occurs in case of serious disruptions to the supply of semiconductors , preventing the functioning of the critical industrial sectors and thereby affecting important economic sectors , given that the union’s industries represent a strong user base of semiconductors.


### (16) ‘critical sector’ means any sector referred to in the annex of the commission proposal for a directive of the european parliament and of the council on the resilience of critical entities , the defence sector and other activities that are relevant for public safety and security; ### (16) ‘critical sector’ means any sector referred to in the annex of the commission proposal for a directive of the european parliament and of the council on the resilience of critical entities and the defence sector.


### (17) ‘crisis-relevant product’ means semiconductors , intermediate products and raw materials required to produce semiconductors or intermediate products , that are affected by the semiconductor crisis or of strategic importance to remedy the semiconductor crisis or economic effects thereof; ### (17) ‘crisis-relevant product’ means semiconductors , intermediate products , critical raw materials and gases required to produce semiconductors or intermediate products , that are materially affected by the semiconductor crisis or of strategic importance to remedy the semiconductor crisis or economic effects thereof;


### 1 monitoring ### 1 monitoring and enhanced transparency


### member states shall carry out regular monitoring of the semiconductor value chain. in particular , they shall: ### the commission , in cooperation with member states shall carry out regular monitoring of the semiconductor value chain. in particular , they shall:


### member states shall provide relevant findings to the european semiconductor board in the form of regular updates. ### they shall provide relevant findings to the european semiconductor board in the form of regular updates.


### 2. member states shall invite the main users of semiconductors and other relevant stakeholders to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. to facilitate the exchange of information , member states shall provide for a mechanism and administrative set-up for these updates. ### 2. the commission , in cooperation with member states shall invite the main users of semiconductors and other relevant stakeholders to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. to facilitate the exchange of information , member states shall provide for a mechanism and administrative set-up for these updates.


### 3. national competent authorities designated pursuant to article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. national competent authorities in such case will pay particular attention to smes to minimise administrative burden resulting from the request and will privilege digital solutions for obtaining such information. any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in article 27. ### 3. national competent authorities designated pursuant to article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. requests that confidential data shall be kept to the minimum necessary and shall be appropriately motivated. national competent authorities in such case shall pay attention to minimise administrative burden resulting from the request and will privilege digital solutions for obtaining such information. any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in article 27.


### 3. national competent authorities designated pursuant to article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. national competent authorities in such case will pay particular attention to smes to minimise administrative burden resulting from the request and will privilege digital solutions for obtaining such information. any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in article 27. ### 3. the commission , in cooperation with national competent authorities designated pursuant to article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. they will provide for standardised and secure means for the information collection and processing for the purpose of paragraph 1 , with due regard to minimizing the administrative burden , in particular for smes , and will privilege digital solutions for obtaining such information. any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in article 27.


### convene an extraordinary meeting of the european semiconductor board to coordinate the following actions: ### convene an extraordinary meeting of the european semiconductor board , including relevant stakeholders in the semiconductor supply chain , to coordinate the following actions:


### enter into consultations or cooperation , on behalf of the union , with relevant third countries with a view to seeking cooperative solutions to address supply chain disruptions , in compliance with international obligations. this may involve , where appropriate , coordination in relevant international fora. ### enter into consultations or cooperation , on behalf of the union , with relevant third countries with a view to seeking cooperative solutions to address supply chain disruptions , in compliance with international obligations. this shall involve , where appropriate , coordination in relevant international fora.


### enter into consultations or cooperation , on behalf of the union , with relevant third countries with a view to seeking cooperative solutions to address supply chain disruptions , in compliance with international obligations. this may involve , where appropriate , coordination in relevant international fora. ### enter into consultations or cooperation , on behalf of the union , with relevant third countries with a view to seeking solutions to address supply chain disruptions or third country decisions , such as those related to extraterritorial export restrictions , that could cause such disruptions , in compliance with international obligations. this may involve , where appropriate , coordination in relevant international fora or other diplomatic measures , while ensuring robust engagement with the stakeholder community.


### 1. the commission shall , after consulting the european semiconductor board , assess risks that may disrupt , compromise or negatively affect the supply of semiconductors (union risk assessment). in the union risk assessment , the commission shall identify early warning indicators. ### 1. the commission shall , after consulting the european semiconductor board and representative organisations of undertakings operating along the semiconductor supply chain , assess risks that may disrupt , compromise or negatively affect the supply of semiconductors (union risk assessment). in the union risk assessment , the commission shall identify early warning indicators.


### 1. the commission shall , after consulting the european semiconductor board , assess risks that may disrupt , compromise or negatively affect the supply of semiconductors (union risk assessment). in the union risk assessment , the commission shall identify early warning indicators. ### 1. the commission shall develop a list of early warning indicators in cooperation with the european semiconductor board with a view to identify risks that may disrupt , compromise or negatively affect the supply of semiconductors.


### 2. the commission shall review the union risk assessment including the early warning indicators as necessary. ### 2. the commission shall review the union risk assessment including the early warning indicators as necessary , following consultations with representative organisations of undertakings operating along the semiconductor supply chain.


### 2. the commission shall review the union risk assessment including the early warning indicators as necessary. ### 2. the commission shall review the early warning indicators as necessary.


### 3. when monitoring the semiconductor value chain pursuant to article 15 , member states shall monitor the early warning indicators identified by the commission. ### 3. when monitoring the semiconductor value chain pursuant to article 15 , member states shall monitor the early warning indicators identified by the commission and the european semiconductor board.


### activation of the crisis stage ### activation of a crisis stage


### 3. before the expiry of the duration for which the crisis stage was activated , the commission shall , after consulting the european semiconductor board , assess whether the activation of the crisis stage should be prolonged. where the assessment concludes that a prolongation is appropriate , the commission may prolong the activation by means of implementing acts. the duration of the prolongation shall be specified in the implementing acts adopted in accordance with article 33(2). the commission may repeatedly decide to prolong the activation of the crisis stage where this is appropriate. ### 3. before the expiry of the duration for which the crisis stage was activated , the commission shall , after consulting the european semiconductor board and relevant stakeholders in the semiconductor supply chain , assess whether the activation of the crisis stage should be prolonged. where the assessment concludes that a prolongation is appropriate , the commission may prolong the activation by means of implementing acts. the duration of the prolongation shall be specified in the implementing acts adopted in accordance with article 33(2). the commission may repeatedly decide to prolong the activation of the crisis stage where this is appropriate.


### 4. during the crisis stage , the commission shall , upon request from a member state or on its own initiative , convene extraordinary meetings of the european semiconductor board as necessary. member states shall work closely with the commission and coordinate any national measures taken with regard to the semiconductor supply chain within the european semiconductor board. ### 4. during the crisis stage , the commission shall , upon request from a member state or on its own initiative , convene extraordinary meetings of the european semiconductor board as necessary , including stakeholders in the semiconductor supply chain. member states shall work closely with the commission and coordinate any national measures taken with regard to the semiconductor supply chain within the european semiconductor board.


### emergency toolbox ### crisis emergency toolbox


### 1. where the crisis stage is activated and where appropriate in order to address the semiconductor crisis in the union , the commission shall take the measure provided for in article 20 under the conditions laid down therein. in addition , the commission may take the measures provided for in article 21 or article 22 , or both , under the conditions laid down therein. ### 1. where a semiconductor crisis stage is activated in the union , the commission shall take the measure provided for in article 20 under the conditions laid down therein. in addition , the commission may take the measures provided for in article 21 or article 22 , or both , under the conditions laid down therein.


### 2. the commission may , after consulting the european semiconductor board , limit the measures provided for in articles 21 and 22 to certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor crisis. ### 2. the commission may , after consulting the european semiconductor board and with representative organisations of undertakings operating along the semiconductor supply chain , limit the measures provided for in articles 21 and 22 to certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor crisis.


### 1. the commission may , upon the request of two or more member states , establish a mandate to act as a central purchasing body on behalf of the participating member states (‘participating member states’) for their public procurement of crisis-relevant products for certain critical sectors (‘common purchasing’). ### 1. the commission may , upon the request of two or more member states , establish a mandate to act as a central purchasing body on behalf of the participating member states (‘participating member states’) for their public procurement of crisis-relevant products for certain critical sectors (‘common purchasing’). the commission should only exercise this power in relation to a semiconductor crisis and upon the request of the member states concerned.


### 2. the commission shall , in consultation with the european semiconductor board , assess the utility , necessity and proportionality of the request. where the commission intends not to follow the request , it shall inform the member states concerned and the european semiconductor board and give reasons for its refusal. ### 2. the commission shall , in consultation with the european semiconductor board , assess the utility , necessity and proportionality of the request in order to address supply disruptions of semiconductors during a crisis. the commission shall inform the member states concerned and the european semiconductor board about the reasons for refusing to follow a request no later than 7 days from receipt of notification. where the commission intends not to follow the request , it shall inform the member states concerned and the european semiconductor board and give reasons for its refusal.


### (9) member states are primarily responsible for sustaining a strong union industrial , competitive , sustainable and innovative base. however , the nature and scale of the innovation challenge in the semiconductor sector requires action to be taken collaboratively at union level. ### (9) member states are primarily responsible for sustaining a strong union industrial , competitive , sustainable and innovative base. however , the nature and scale of the innovation challenge in the semiconductor sector requires action to be taken collaboratively at union level. the union shall also ensure that the sector does not develop monopolistic structures.


### (10) the horizon europe framework programme established by regulation (eu) 2021/695 of the european parliament and of the council51 (horizon europe) – the framework programme for research and innovation , has the objective to strengthen the european research area (era) , encouraging it to become more competitive , including in its industry , while promoting all research and innovation (r&i) activities to deliver on the union's strategic priorities and commitments , which ultimately aim to promote peace , the union's values and the well-being of its peoples. as a major priority of the union , the total financial resources allocated to the programme should not be reduced and the reduction of the financial resources of the programme , aimed to reinforce the financial envelope of the digital europe programme with the aim of contributing to the chips initiative , should be compensated by another source. consequently , without prejudice to the institutional prerogatives of the european parliament and of the council , an amount of commitment appropriations equivalent to the reduction should be made available to horizon europe over the period 2023-2027 , resulting from total or partial non-implementation of projects belonging to that programme or its predecessor , as provided for in article 15(3) of regulation (eu , euratom) 2018/1046 of the european parliament and of the council52 (the financial regulation). this amount will be in addition to the eur 0.5 billion (in 2018 prices) already mentioned in the joint declaration by the european parliament , the council and the commission on the re-use of decommitted funds in relation to the research programme. ### (10) the horizon europe framework programme established by regulation (eu) 2021/695 of the european parliament and of the council51 (horizon europe) – the framework programme for research and innovation , has the objective to strengthen the european research area (era) , encouraging it to become more competitive , including in its industry , while promoting all research and innovation (r&i) activities to deliver on the union's strategic priorities and commitments , which ultimately aim to promote peace , the union's values and the well-being of its peoples. as a major priority of the union , the total financial resources allocated to the programme should not be reduced and the reduction of the financial resources of the programme , aimed to reinforce the financial envelope of the digital europe programme with the aim of contributing to the chips initiative , should be fully compensated by another source. consequently , without prejudice to the institutional prerogatives of the european parliament and of the council , an amount of commitment appropriations equivalent to the reduction should be made available to horizon europe over the period 2023-2027 , resulting from total or partial non-implementation of projects belonging to that programme or its predecessor , as provided for in article 15(3) of regulation (eu , euratom) 2018/1046 of the european parliament and of the council52 (the financial regulation). this amount will be in addition to the eur 0.5 billion (in 2018 prices) already mentioned in the joint declaration by the european parliament , the council and the commission on the re-use of decommitted funds in relation to the research programme.


### (12) in order to achieve its general objective , and address both the supply and demand side challenges of the current semiconductor ecosystem , the initiative should include five main components. first , to reinforce europe’s design capacity , the initiative should support actions to build a virtual platform that is available across the union. the platform should connect the communities of design houses , smes and start-ups , intellectual property and tool suppliers , with research and technology organisations to provide virtual prototype solutions based on co-development of technology. second , in order to strengthen the security and resilience of supply and reducing the union’s dependency on third country production , the initiative should support development and access to pilot lines. the pilot lines should provide for the industry a facility to test , experiment and validate semiconductor technologies and system design concepts at the higher technology readiness levels beyond level 3 but under level 8 while reducing environmental impacts as much as possible. union investments along member states investment and with the private sector in pilot lines is necessary to address the existing structural challenge and market failure where such facilities are not available in the union hindering innovation potential and global competitiveness of the union. third , in order to enable investments in alternative technologies , such as quantum technologies , conducive to the development of the semiconductors sector , the initiative should support actions including on design libraries for quantum chips , pilot lines for building quantum chips and testing and experimentation facilities for quantum components. fourth , in order to promote the use of the semiconductor technologies , to provide access to design and pilot line facilities , and to address skills gaps across the union , the initiative should support establishment of the competence centres on semiconductors in each member state. access to publicly funded infrastructure , such as pilot and testing facilities , and to the competence network , should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings , while smes can benefit from preferential access or reduced prices. such access , including for international research and commercial partners , can lead to broader cross-fertilisation and gains in know-how and excellence , while contributing to cost recovery. fifth , the commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘chips fund’) proposing both equity and debt solutions , including a blending facility under the investeu fund established by regulation (eu) 2021/523 of the european parliament and council53 , in close cooperation with the european investment bank group and together with other implementing partners such as national promotional banks and institutions. the ‘chips fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and smes as well as investments across the value chain , including for other companies in the semiconductor value chains. in this context , the european innovation council will provide further dedicated support through grants and equity investments to high risk , market creating innovators. ### (12) in order to achieve its general objective , and address both the supply and demand side challenges of the current semiconductor ecosystem , the initiative should include five main components. first , to reinforce europe’s design capacity , the initiative should support actions to build a virtual platform that is available across the union. the platform should connect the communities of design houses , smes and start-ups , intellectual property and tool suppliers , with research and technology organisations to provide virtual prototype solutions based on co-development of technology. second , in order to strengthen the security and resilience of supply and reducing the union’s dependency on third country production , the initiative should support development and access to pilot lines. the pilot lines should have a broad geographic coverage and provide for the industry a facility to test , experiment and validate semiconductor technologies and system design concepts at the higher technology readiness levels beyond level 3 but under level 8 while reducing environmental impacts as much as possible. union investments along member states investment and with the private sector in pilot lines is necessary to address the existing structural challenge and market failure where such facilities are not available in the union hindering innovation potential and global competitiveness of the union. third , in order to enable investments in alternative technologies , such as quantum technologies , conducive to the development of the semiconductors sector , the initiative should support actions including on design libraries for quantum chips , pilot lines for building quantum chips and testing and experimentation facilities for quantum components. fourth , in order to promote the use of the semiconductor technologies , to provide access to design and pilot line facilities , and to address skills gaps across the union , the initiative should support establishment of the competence centres on semiconductors in each member state. access to publicly funded infrastructure , such as pilot and testing facilities , and to the competence network , should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings , while smes can benefit from preferential access or reduced prices. such access , including for international research and commercial partners , can lead to broader cross-fertilisation and gains in know-how and excellence , while contributing to cost recovery. fifth , the commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘chips fund’) proposing both equity and debt solutions , including a blending facility under the investeu fund established by regulation (eu) 2021/523 of the european parliament and council53 , in close cooperation with the european investment bank group and together with other implementing partners such as national promotional banks and institutions. the ‘chips fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and smes as well as investments across the value chain , including for other companies in the semiconductor value chains. in this context , the european innovation council will provide further dedicated support through grants and equity investments to high risk , market creating innovators.


### 1. the general objective of the initiative is to support large-scale technological capacity building and innovation throughout the union to enable development and deployment of cutting-edge and next generation semiconductor and quantum technologies that will reinforce the union advanced design , systems integration and chips production capabilities , as well as contribute to the achievement of the twin digital and green transition. ### 1. the general objective of the initiative is to support large-scale technological capacity building and innovation throughout the union and the semiconductor value chain to enable development and deployment of cutting-edge and next generation semiconductor and quantum technologies that will reinforce the union advanced design , systems integration and chips production capabilities , as well as contribute to the achievement of the twin digital and green transition , improving the sustainability , reducing the environmental impact of next generation chips and strengthening the circular economy processes , and address security needs by enabling secure and resilient designs that defend against cybersecurity threats.


### 1. the general objective of the initiative is to support large-scale technological capacity building and innovation throughout the union to enable development and deployment of cutting-edge and next generation semiconductor and quantum technologies that will reinforce the union advanced design , systems integration and chips production capabilities , as well as contribute to the achievement of the twin digital and green transition. ### 1. the general objective of the initiative is to support large-scale technological capacity building and innovation throughout the union’s semiconductor value chain and to enable development and deployment of cutting-edge and next generation semiconductor and quantum technologies that will reinforce the union advanced design , systems integration and chips production and packaging capabilities. it shall also contribute to the achievement of the twin digital and green transition , improving the sustainability , reducing the environmental impact of next generation chips and strengthening the circular economy processes , and address security needs by enabling secure and resilient designs that defend against cybersecurity threats.


### (2) upgrading the design capacity with ongoing innovative developments , such as processor architectures based on the open-source reduced instruction set computer architecture (risc-v); ### (2) upgrading the design capacity with ongoing innovative developments , such as processor architectures based on the open-source instruction set architectures (e.g. risc-v) and architectures that are built on "security by design";


### (2) upgrading the design capacity with ongoing innovative developments , such as processor architectures based on the open-source reduced instruction set computer architecture (risc-v); ### (2) upgrading the design capacity with ongoing innovative developments , such as reprogrammable chips based on field programmable gate arrays (fpgas) , new 3d and heterogenous system architectures , processor architectures based on open-source instruction set architectures (e.g. risc-v) and architectures that are built by “security by design” and including a commercialisation roadmap to ensure that any elements subject to intellectual property rights are ready to meet production quality standards;


### enhancing existing and developing new advanced pilot lines. this operational objective shall be achieved through: ### enhancing existing and developing new advanced pilot lines , ensuring broad geographical coverage. this operational objective shall be achieved through:


### enhancing existing and developing new advanced pilot lines. this operational objective shall be achieved through: ### enhancing existing and developing new advanced pilot lines ensuring broad geographical coverage. this operational objective shall be achieved through:


### (1) strengthen capacities and offer a wide range of expertise to the stakeholders , including end-user smes and start-ups , facilitating access to and effective use of the above capacities and facilities; ### (1) strengthen skills , knowledge and capacities and offer a wide range of expertise to the stakeholders , including end-user smes and start-ups , facilitating access to and effective use of the above capacities and facilities;


### (2) address the skills shortage , attracting and mobilising new talent and supporting the emergence of a suitably skilled workforce for strengthening the semiconductor sector , including via reskilling and upskilling of workers. ### (2) address the skills shortage , training , attracting and mobilising new talent and supporting the emergence of a suitably skilled workforce for strengthening the semiconductor sector , including via reskilling and upskilling of workers and by enhancing collaboration between the academia and industry.


### (3) accelerating investment in the field of semiconductor manufacturing technologies and chip design and to leveraging funding from both the public and the private sectors , while increasing the security of supply for the whole semiconductor value chain. ### (3) accelerating investment in the field of semiconductor manufacturing technologies and chip design and to leveraging funding from both the public and the private sectors , while increasing the security of supply and protection of intellectual property for the whole semiconductor value chain.


### (3) accelerating investment in the field of semiconductor manufacturing technologies and chip design and to leveraging funding from both the public and the private sectors , while increasing the security of supply for the whole semiconductor value chain. ### (3) accelerating investment in the field of semiconductor manufacturing technologies and chip design and to leveraging funding from both the public and the private sectors , while increasing the security of supply and intellectual property protection for the whole semiconductor value chain.


### 3. member states shall designate candidate competence centres in accordance with its national procedures , administrative and institutional structures through an open and competitive process. the commission shall , by means of implementing acts , set the procedure for establishing competence centres , including selection criteria , and further tasks and functions of the centres with respect to the implementation of the actions under the initiative , the procedure for establishing the network as well to adopt decisions on the selection of entities forming the network. those implementing acts shall be adopted in accordance with the examination procedure referred to in article 33(2). ### 3. member states shall designate candidate competence centres in accordance with its national procedures , administrative and institutional structures through an open and competitive process. the commission shall , by means of implementing acts , set the procedure for establishing competence centres , including selection criteria , and further tasks and functions of the centres with respect to the implementation of the actions under the initiative , the procedure for establishing the network as well to adopt decisions on the selection of entities forming the network , taking into account the need to have the entire union’s semiconductor value chain represented. those implementing acts shall be adopted in accordance with the examination procedure referred to in article 33(2). the network shall avoid fragmentation of activities and duplication of efforts.


### 3. member states shall designate candidate competence centres in accordance with its national procedures , administrative and institutional structures through an open and competitive process. the commission shall , by means of implementing acts , set the procedure for establishing competence centres , including selection criteria , and further tasks and functions of the centres with respect to the implementation of the actions under the initiative , the procedure for establishing the network as well to adopt decisions on the selection of entities forming the network. those implementing acts shall be adopted in accordance with the examination procedure referred to in article 33(2). ### 3. member states shall designate candidate competence centres in accordance with its national procedures , administrative and institutional structures through an open and competitive process. the commission shall , by means of delegated acts , set the procedure for establishing competence centres , including selection criteria , and further tasks and functions of the centres with respect to the implementation of the actions under the initiative , the procedure for establishing the network as well to adopt decisions on the selection of entities forming the network. those delegated acts shall be adopted in accordance with the examination procedure referred to in article 33(2).


### 4. the network shall have substantial overall autonomy to lay down its organisation , composition and working methods. however , the organisation , composition and working methods of the network shall be in accordance with and contribute to the aims and objectives of this regulation and the initiative. ### 4. the network shall have substantial overall autonomy to lay down its organisation , composition and working methods. however , the organisation , composition and working methods of the network shall represent the union’s entire semiconductor value chain , from materials to chip design , and be in accordance with and contribute to the aims and objectives of this regulation and the initiative.


### 4. the network shall have substantial overall autonomy to lay down its organisation , composition and working methods. however , the organisation , composition and working methods of the network shall be in accordance with and contribute to the aims and objectives of this regulation and the initiative. ### 4. the network shall have substantial overall autonomy to lay down its organisation , composition and working methods. however , the organisation , composition and working methods of the network shall represent the union’s semiconductor valuechain , and be in accordance with and contribute to the aims and objectives of this regulation and the initiative.


### 2. in order to reach security of supply in the union , member states may , without prejudice to articles 107 and 108 of the treaty , apply support schemes and provide for administrative support to integrated production facilities and open eu foundries in accordance with article 14. ### 2. in order to reach security of supply in the union , member states may , without prejudice to articles 107 and 108 of the treaty , apply support schemes and provide for administrative support to integrated production facilities and open eu foundries in accordance with article 14. the commission shall commit to assess in a timely manner the intended state aid support schemes for first-of-a-kind semiconductor facilities pursuant to article 107 (3) (c) tfeu.


### 2. where an assessment of the commission provides concrete , serious , and reliable evidence of a semiconductor crisis , the commission may activate the crisis stage by means of implementing acts in accordance with article 33(2). the duration of the activation shall be specified in the implementing act. where , in view of the scope and gravity of the semiconductor crisis , duly justified imperative grounds of urgency so require , the procedure provided for in article 33(3) shall apply to implementing acts adopted pursuant to this article. ### 2. where an assessment of the commission provides concrete , serious , and reliable evidence of a semiconductor crisis , the commission may , after consulting the european semiconductor board , activate the crisis stage by means of implementing acts in accordance with article 33(2). the duration of the activation shall be specified in the implementing act. the commission shall report on a regular basis to the european semiconductor board. where , in view of the scope and gravity of the semiconductor crisis , duly justified imperative grounds of urgency so require , the procedure provided for in article 33(3) shall apply to implementing acts adopted pursuant to this article.


### 1. the commission shall , after consulting the european semiconductor board , request representative organisations of undertakings or , if necessary , individual undertakings operating along the semiconductor supply chain to inform the commission about their production capabilities , production capacities , current primary disruptions and provide other existing data necessary to assess the nature of the semiconductor crisis or to identify and assess potential mitigation or emergency measures at national or union level. ### 1. the commission shall , after consulting the european semiconductor board , request representative organisations of undertakings or , if necessary , individual undertakings operating along the semiconductor supply chain to inform the commission about their , production capacities , current primary disruptions. the requested information shall be limited to what is the minimum necessary to assess the nature of the semiconductor crisis or to identify and assess potential mitigation or emergency measures at national or union level. the commission shall substantiate its targeted requests for sensitive and business confidential data and shall keep them to the minimum. the commission shall develop the request for information in cooperation with the european semiconductor board. the commission shall provide for secure means for the information collection and processing that ensures confidentiality , business secrecy and cybersecurity with due regard to minimising the administrative burden on smes.


### 4. the obligations under paragraph 1 , 2 and 3 shall be enacted by the commission via decision. the decision shall be taken in accordance with all applicable union legal obligations , having regard to the circumstances of the case , including the principles of necessity and proportionality. the decision shall in particular have regard for the legitimate aims of the undertaking concerned and the cost and effort required for any change in production sequence. in its decision , the commission shall state the legal basis of the priority rated order , fix the time-limit within which the order is to be performed , and , where applicable , specify the product and quantity , and state the penalties provided for in article 28 for non-compliance with the obligation. the priority rated order shall be placed at fair and reasonable price. ### 4. the obligations under paragraph 1 , 2 and 3 shall be enacted by the commission via decision. the decision shall be a last resort measure taken after consulting the european semiconductor board , in accordance with all applicable union legal obligations , having regard to the circumstances of the case , including the principles of necessity and proportionality. the beneficiary of such a priority order has a due-diligence obligation and should be able to show that it has exhausted all other preventative mitigation measures , such as finding alternative suppliers or creating stockpiles. the decision shall only be made when all other measures have been exhausted and in particular have regard for the preventative mitigation measures taken by the critical sector requesting the priority order and the legitimate aims of the undertaking concerned and the cost and effort required for any change in production sequence. in its decision , the commission shall state the legal basis of the priority rated order , fix the time-limit within which the order is to be performed , and , where applicable , specify the product and quantity , and state the penalties provided for in article 28 for non-compliance with the obligation. the priority rated order shall be placed at fair and reasonable price.


### (13) in order to overcome the limitations of the current fragmented public and private investments efforts , facilitate integration , cross-fertilisation , and return on investment on the ongoing programmes and to pursue a common strategic union vision on semiconductors as a means to realising the ambition of the union and of its member states to ensure a leading role in the digital economy , the chips for europe initiative should facilitate better coordination and closer synergies between the existing funding programmes at union and national levels , better coordination and collaboration with industry and key private sector stakeholders and additional joint investments with member states. the implementation set up of the initiative is built to pool resources from the union , member states and third countries associated with the existing union programmes , as well as the private sector. the success of the initiative can therefore only be built on a collective effort by member states , with the union , to support both the significant capital costs and the wide availability of virtual design , testing and piloting resources and diffusion of knowledge , skills and competences. where appropriate , in view of the specificities of the actions concerned , the objectives of the initiative , specifically the ‘chips fund’ activities , should also be supported through a blending facility under the investeu fund. ### (13) in order to overcome the limitations of the current fragmented public and private investments efforts , facilitate integration , cross-fertilisation , and return on investment on the ongoing programmes and to pursue a common strategic union vision on semiconductors as a means to realising the ambition of the union and of its member states to ensure a leading role in the digital economy , the chips for europe initiative should facilitate better coordination and closer synergies between the existing funding programmes at union and national levels , better coordination and collaboration with industry and key private sector stakeholders and additional joint investments with member states as well encourage the collaborative development and sharing of technology under free and open source licences and follow the principles of open access and open science , in particular in public procurement and in cases of public funding , to secure the longevity , sustainability , and reusability of such programmes and its outcomes. the implementation set up of the initiative is built to pool resources from the union , member states and third countries associated with the existing union programmes , as well as the private sector. the success of the initiative can therefore only be built on a collective effort by member states , with the union , to support both the significant capital costs and the wide availability of virtual design , testing and piloting resources and diffusion of knowledge , skills and competences. where appropriate , in view of the specificities of the actions concerned , the objectives of the initiative , specifically the ‘chips fund’ activities , should also be supported through a blending facility under the investeu fund.


### (10) ‘first-of-a-kind facility’ means an industrial facility capable of semiconductor manufacturing , including front-end or back-end , or both , that is not substantively already present or committed to be built within the union , for instance with regard to the technology node , substrate material , such as silicon carbide and gallium nitride , and other product innovation that can offer better performance , process innovation or energy and environmental performance; ### (10) ‘first-of-a-kind facility’ means an industrial facility capable of semiconductor manufacturing , including front-end or back-end , or both , or capable of manufacturing materials or equipment exclusively used in semiconductor manufacturing , that is not substantively already present or committed to be built within the union , for instance with regard to the technology node , substrate material , such as silicon carbide , indium phosphide and gallium nitride , and other product innovation that can offer better performance , process innovation or energy and environmental performance;


### (2) supporting large scale innovation through access to new or existing pilot lines for experimentation , test , and validation of new design concepts integrating key functionalities , such as novel materials and architectures for power electronics fostering sustainable energy and electro mobility , lower energy consumption , security , higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (ai) chips , integrated photonics , graphene and other 2d material based technologies; ### (2) supporting large scale innovation through access to new or existing pilot lines for experimentation , test , and validation of new design concepts integrating key functionalities , such as novel materials and architectures for power electronics fostering sustainable energy and electro mobility , lower energy consumption , security , higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (ai) chips , integrated photonics , graphene and other 2d material based technologies and integration of electronics , photonics and microfluidics in heterogenous systems;


### 1. integrated production facilities are first-of-a-kind semiconductor design and manufacturing facilities , including front-end or back-end , or both , in the union that contribute to the security of supply for the internal market. ### 1. integrated production facilities are first-of-a-kind semiconductor design , or capable of manufacturing materials or equipment exclusively used in semiconductor manufacturing and manufacturing facilities , including front-end or back-end , or both , in the union that contribute to the security of supply for the internal market.


### its establishment and operation have a clear positive impact on the union’s semiconductor value chain with regard to ensuring the security of supply and increasing qualified workforce; ### its establishment and operation have a clear positive impact on the union’s semiconductor value chain with regard to ensuring the security of supply and increasing qualified workforce and contributing to the union’s green transition;


### its establishment and operation have a clear positive impact on the union’s semiconductor value chain with regard to ensuring the security of supply and increasing qualified workforce , taking into account in particular the extent to which it offers front-end or back-end , or both , production capacity to undertakings not related to the facility , if there is sufficient demand; ### its establishment and operation have a clear positive impact on the union’s semiconductor value chain with regard to ensuring the security of supply , increasing the qualified workforce and contributing to the union’s green transition , taking into account in particular the extent to which it offers front-end or back-end , or both , production capacity to undertakings not related to the facility , if there is sufficient demand;


### 1. a semiconductor crisis shall be considered to occur when there are serious disruptions in the supply of semiconductors leading to significant shortages , which: ### 1. a semiconductor crisis shall be considered to occur as defined in article 2(1)(16a) when there are serious disruptions in the supply of semiconductors leading to significant shortages , which:


### entail significant delays or significant negative effects on one or more important economic sectors in the union , or ### entail significant delays or significant negative effects on one or more critical sectors in the union


### 2. the request for information shall state its legal basis , be proportionate in terms of the granularity and volume of the data and frequency of access to the data requested , have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available , and set out the time limit within which the information is to be provided. it shall also indicate the penalties provided for in article 28. ### 2. the request for information shall state its legal basis , be proportionate in terms of the granularity and volume of the data and frequency of access to the data requested , have regard for the legitimate aims of the undertaking , take into account the protection of trade secrets and business sensitive information , the cost and effort required to make the data available , and set out the time limit within which the information is to be provided. it shall also indicate the penalties provided for in article 28.


### 1. the european semiconductor board shall be composed of representatives of the member states and shall be chaired by a representative of the commission. ### 1. the european semiconductor board shall be composed of representatives of the member states , three representatives of the industrial alliance on processors and semiconductor technologies , and shall be chaired by a representative of the commission.


### 4. the commission may establish standing or temporary sub-groups for the purpose of examining specific questions. where appropriate , the commission may invite organisations representing the interests of the semiconductor industry , including the industrial alliance on processors and semiconductor technologies and users of semiconductors at union level , to such sub-groups in the capacity of observers. a sub-group including union research and technology organisations shall be established for the purpose of examining specific aspects on strategic technology directions and reporting on this to the european semiconductor board. ### 4. the commission may establish standing or temporary sub-groups for the purpose of examining specific questions. where appropriate , the commission should invite organisations representing the interests of the semiconductor industry , including members of the industrial alliance on processors and semiconductor technologies and users of semiconductors at union level , to participate in such sub-groups as observers that enjoy speaking rights , but no voting rights. a sub-group including union research and technology organisations shall be established for the purpose of examining specific aspects on strategic technology directions and reporting on this to the european semiconductor board.


### 4. the commission may appoint observers to take part in the meetings , as appropriate. the commission may invite experts with specific expertise , including from relevant stakeholder organisations , with respect to a subject matter on the agenda to take part in the meetings of the european semiconductor board on an ad hoc basis. the commission may facilitate exchanges between the european semiconductor board and other union bodies , offices , agencies and advisory groups. the commission shall invite a representative from the european parliament as an observer to the european semiconductor board. the commission shall ensure the participation of relevant other union institutions and bodies as observers to the european semiconductor board with respect to meetings concerning chapter iv on monitoring and crisis response. observers and experts shall not have voting rights and shall not participate in the formulation of opinions , recommendations or advice of the european semiconductor board and its sub-groups. ### 4. the commission should involve industry and civil society stakeholders in their respective roles , meaning that the commission is encouraged to appoint observers to take part in the meetings , as appropriate. the commission may invite experts with specific expertise , including from relevant stakeholder organisations , such as the industrial alliance for processors and semiconductor technologies , with respect to a subject matter on the agenda to take part in the meetings of the european semiconductor board on an ad hoc basis. the commission may facilitate exchanges between the european semiconductor board and other union bodies , offices , agencies and advisory groups. the commission shall invite a representative from the european parliament as an observer to the european semiconductor board. the commission shall ensure the participation of relevant other union institutions and bodies as observers to the european semiconductor board with respect to meetings concerning chapter iv on monitoring and crisis response. observers and experts shall not have voting rights but may be invited to participate in the formulation of opinions , recommendations or advice of the european semiconductor board and its sub-groups.


### 5. the european semiconductor board shall take the necessary measures to ensure the safe handling and processing of confidential information. ### 5. the european semiconductor board shall take the necessary measures to ensure the safe handling and processing of confidential information , including trade secrets or content protected by intellectual property rights.


### 1. the commission and the national competent authorities , their officials , servants and other persons working under the supervision of these authorities as well as officials and civil servants of other authorities of the member states shall not disclose information acquired or exchanged by them pursuant to this regulation and of the kind covered by the obligation of professional secrecy. they shall respect the confidentiality of information and data obtained in carrying out their tasks and activities in such a manner as to protect in particular intellectual property rights and sensitive business information or trade secrets. this obligation shall apply to all representatives of member states , observers , experts and other participants attending meetings of the european semiconductor board pursuant to article 23 and the members of the committee pursuant to article 33(1). ### 1. the commission and the national competent authorities , their officials , servants and other persons working under the supervision of these authorities as well as officials and civil servants of other authorities of the member states shall not disclose information acquired or exchanged by them pursuant to this regulation and of the kind covered by the obligation of professional secrecy. they shall respect the confidentiality of information and data obtained in carrying out their tasks and activities in such a manner as to protect any intellectual property rights and sensitive business information and trade secrets. they shall take appropriate technical and organisational measures to preserve the confidentiality of sensitive business information and trade secrets. this obligation shall apply to all representatives of member states , key market actors observers , experts and other participants attending meetings of the european semiconductor board pursuant to article 23 and the members of the committee pursuant to article 33(1).


### 2. the commission and member states may exchange , where necessary , confidential information with competent authorities of third countries with which they have agreed on bilateral or multilateral confidentiality arrangements to provide an adequate level of confidentiality. ### deleted


### 2. fines imposed in the cases referred to in paragraph 1 (a) and (b) shall not exceed 300 000 eur. ### 2. fines imposed in the cases referred to in paragraph 1 (a) and (b) shall not exceed 300 000 eur. if the concerned undertaking is an sme , the fines imposed shall not exceed 100 000 eur.


### 3. periodic penalty payments imposed in the cases referred to in paragraph 1 (c) shall not exceed 1.5 % of the average daily turnover in the preceding business year for each working day of non-compliance with the obligation pursuant to article 21 calculated from the date established in the decision. ### 3. periodic penalty payments imposed in the cases referred to in paragraph 1 (c) shall not exceed 1.5 % of the average daily turnover in the preceding business year for each working day of non-compliance with the obligation pursuant to article 21 calculated from the date established in the decision. if the concerned undertaking is an sme , the periodic penalty payments imposed shall not exceed 1 % of the average daily turnover of the sme concerned.


### (15) ‘key market actors’ means undertakings in the union semiconductor sector , the reliable functioning of which is essential for the semiconductor supply chain; ### (15) ‘key market actors’ means undertakings in the union semiconductor value chain , the reliable functioning of which is essential for the semiconductor supply chain;


### (1) strengthening technological capabilities in next generation chips production technologies , by integrating research and innovation activities and preparing the development of future technology nodes , including leading-edge nodes below two nanometres , fully depleted silicon on insulator (fd-soi) at 10 nanometres and below , and 3d heterogeneous systems integration and advanced packaging; ### (1) strengthening technological capabilities in next generation chips production technologies , by integrating research and innovation activities and preparing the development of future technology nodes , including leading-edge nodes below two nanometres , fully depleted silicon on insulator (fd-soi) at 10 nanometres and below , and 3d heterogeneous systems integration and advanced packaging and assembly;


### discussing and preparing the identification of specific sectors and technologies with potential high social impact and respective security significance in need of certification for trusted products; ### discussing and preparing , with involvement of key market actors , the identification of specific sectors and technologies with potential high social impact and respective security significance in need of certification for trusted products;


### 3. the european semiconductor board shall support the commission in international cooperation , including information gathering and crisis assessment , in line with international obligations. ### 3. the european semiconductor board shall support the commission in international cooperation , including aggregated information gathering and crisis assessment , in line with international obligations.


### impose fines , where a representative organisations of undertakings or an undertaking , intentionally or through gross negligence , supplies incorrect , incomplete or misleading information in response to a request made pursuant to article 20 , or does not supply the information within the prescribed time limit; ### impose fines , where a representative organisations of undertakings or an undertaking , intentionally or through gross negligence , supplies incorrect , incomplete or misleading information in response to a request made pursuant to article 20 and 27a , or does not supply the information within the prescribed time limit;


### impose periodic penalty payments , where an undertaking , intentionally or through gross negligence , does not comply with an obligation to prioritise the production of crisis-relevant products pursuant to article 21. ### impose periodic penalty payments , where an undertaking , intentionally or through gross negligence , does not comply with an obligation to prioritise the production of crisis-relevant products pursuant to article 21 or fails to cease or abandon a breach pursuant to article 27a.


### 1. welcomes the positive georgian progress in implementing the dcfta , notably the approximation to the eu law for deepening economic integration into the single market , further welcomes that the eu is the leading trade partner of georgia , as around 21% of its total trade takes place with the eu; ### 1. welcomes the positive georgian progress in implementing the deep and comprehensive free trade area (dcfta) , notably the approximation to the eu law for deepening economic integration into the single market , further welcomes that the eu is the leading trade partner of georgia , as around 21% of its total trade takes place with the eu;


### 3. calls on the georgian government to steadily continue the working on approximating the rule of law standards , particularly those ensuring transparency , an independent judiciary system and good governance and its proper reform implementation; in addition , calls on the commission to closely monitor the development of the rule of law situation , and to explore the possibilities to or limit the direct funding and even suspending the mfa if the situation further deteriorates; ### 3. calls on the georgian government to steadily continue the working on approximating the rule of law standards , particularly those ensuring transparency , an independent judiciary system and good governance and its proper reform implementation; in addition , calls on the commission to closely monitor the development of the rule of law situation in line with the macro-financial assistance (mfa) obligations;


### 9. calls on georgia to enhance its engagement in the fight against climate change and the eu commission to facilitate georgian participation in the european green deal and to ensure that the dcfta doesn't contradict climate imperatives , social and environmental objectives and initiatives set out therein; ### 9. emphasises that in its repowereu plan , the eu wishes to swiftly reduce its dependence on russian fossil fuels and to accelerate the green transition; highlights that in line with the repowereu plan , the eu should further support georgia in ensuring reliable and sustainable energy; calls on georgia to enhance its engagement in the fight against climate change and the eu commission to facilitate georgian participation in the european green deal and to ensure that the dcfta doesn't contradict climate imperatives , social and environmental objectives and initiatives set out therein;


### — having regard to the opinion of the council of europe’s venice commission of 20 june 2022 on the december 2021 amendments to the organic law on common courts , its urgent opinion of 2 july 2021 on the amendments to the organic law on common courts , its urgent joint opinion of 5 july 2022 on the revised draft amendments to the election code , its opinion of 8 october 2020 on the draft organic law amending the organic law on common courts and its urgent opinion of 16 april 2019 on the selection and appointment of supreme court judges , ### — having regard to the urgent opinion of the council of europe’s venice commission of 26 august 2022 on the draft law on the amendments to the criminal procedure code adopted by the parliament of georgia on 7 june 2022 , its opinion of 20 june 2022 on the december 2021 amendments to the organic law on common courts , its urgent opinion of 2 july 2021 on the amendments to the organic law on common courts , its urgent joint opinion of 5 july 2022 on the revised draft amendments to the election code , its opinion of 8 october 2020 on the draft organic law amending the organic law on common courts and its urgent opinion of 16 april 2019 on the selection and appointment of supreme court judges ,


### a. whereas the recent external shocks caused by violent conflicts , pandemics and arbitrary disruptions of supply chains have tested the resilience of economies worldwide; whereas the eu’s economy has shown itself to be highly dependent on 137 products , in particular those related to energy and raw materials , medicines and health products , cutting-edge and cloud technologies , batteries and semiconductors; ### a. whereas the recent external shocks caused by russia’s war of aggression against ukraine , the covid-19 pandemic and in the resulting disruptions of supply chains have tested the resilience of economies worldwide; whereas the eu’s economy has shown to be resilient and recovering quickly due to the coordinated eu level response; whereas the eu economy is highly dependent on 137 products , in particular those related to energy and critical raw materials , medicines and health products , cutting-edge and cloud technologies , batteries and semiconductors;


### 1. welcomes the new eu action plan on critical raw materials and stresses that eu trade policy can play a key role as a vehicle for improving eu access to these materials; notes that the covid-19 outbreak has exposed the lack of resilience of global value chains for certain key products , showing the need for more robust and resilient supply chains for critical raw materials; ### 1. welcomes the new eu action plan on critical raw materials and stresses that the eu's trade policy plays a key role as a vehicle for improving eu access to these materials; notes that the covid-19 outbreak has exposed the lack of resilience of global value chains for certain key products , showing the need for more robust and resilient supply chains for critical raw materials;


### 1. recalls its demand in its resolution of 10 february 2021 on the new circular economy action plan1 for binding eu reduction targets for primary raw materials use; requests that the commission include all possible options to minimise resource consumption in its demand scenarios for critical raw materials (crm); ### 1. recalls its demand in its resolution of 10 february 2021 on the new circular economy action plan1 for binding eu reduction targets for primary raw materials use; requests that the commission , without delay , explores all possible options to minimise and optimize resource consumption in its demand scenarios for critical raw materials (crm);


### 1. recalls its demand in its resolution of 10 february 2021 on the new circular economy action plan1 for binding eu reduction targets for primary raw materials use; requests that the commission include all possible options to minimise resource consumption in its demand scenarios for critical raw materials (crm); ### 1. recalls its demand in its resolution of 10 february 2021 on the new circular economy action plan1 for binding eu reduction targets for primary raw materials use within planetary boundaries by 2050 at the latest; requests that the commission include all possible options to minimise resource consumption in its demand scenarios for critical raw materials (crm);


### 1. recalls its demand in its resolution of 10 february 2021 on the new circular economy action plan1 for binding eu reduction targets for primary raw materials use; requests that the commission include all possible options to minimise resource consumption in its demand scenarios for critical raw materials (crm); ### 1. recalls its demand in its resolution of 10 february 2021 on the new circular economy action plan1 for binding eu reduction targets for primary raw materials use; requests that the commission include all possible options to minimise resource consumption in its demand scenarios for critical raw materials (crm); notes that elements newly included in the 2020 crm list will be vital for the eu decarbonisation strategy and green mobility1a and this could lead to a high increase in demand;


### 1. considers that waste collection and product design are ‘low hanging fruit’ strategies to increase crm supply; notes that crm substitution , while having its limits in product efficiency , is an inherent goal of industry because of high prices and dependency; ### 1. considers that an integrated approach along the value chain , from product design to material recovery are ‘low hanging fruit’ strategies to increase crm supply; notes that crm substitution , while having its limits in product efficiency , is an inherent goal of industry because of high prices and dependency;


### 2. notes that demand for raw materials is projected to double by 2050 and that the eu is highly reliant on non-eu countries for critical raw materials , making diversified sourcing essential to increase the eu’s security of supply; calls , therefore , on the commission to diversify the supply sources of critical raw materials as much as possible , and reduce current reliance on a few countries; calls on the commission to focus also on securing supplies by establishing strategic stocks and appropriate stockpiling of critical raw materials in europe , particularly in light of the uncertainties linked to the evolution of the geopolitical situation worldwide and the potential trade tensions with rich non-eu producer countries; ### 2. welcomes the commission's flagship policies of the green and the digital transition , notes that critical raw materials have an important role to play in facilitating these transitions and that their demand is projected to double by 2050; acknowledges that an increase in demand globally is likely to lead to an increase in price and encourages the commission to present analysis on this point; believes that this analysis should be complemented by a strong communication strategy , explaining potential trade-offs to citizens; notes that the eu is highly reliant on non-eu countries for critical raw materials , making diversified sourcing essential to increase the eu’s security of supply; calls , therefore , on the commission to diversify the supply sources of critical raw materials as much as possible , and reduce current reliance on a few countries; calls on the commission to continue monitoring the eu's strategic dependencies in order to identify potential vulnerabilities , and conduct a detailed analysis on the role strategic stockpiles could play in addressing these vulnerabilities;


### 2. notes that demand for raw materials is projected to double by 2050 and that the eu is highly reliant on non-eu countries for critical raw materials , making diversified sourcing essential to increase the eu’s security of supply; calls , therefore , on the commission to diversify the supply sources of critical raw materials as much as possible , and reduce current reliance on a few countries; calls on the commission to focus also on securing supplies by establishing strategic stocks and appropriate stockpiling of critical raw materials in europe , particularly in light of the uncertainties linked to the evolution of the geopolitical situation worldwide and the potential trade tensions with rich non-eu producer countries; ### 2. notes that demand for raw materials is projected to double by 2050 and that the eu is highly reliant on non-eu countries for critical raw materials , making diversified sourcing essential to increase the eu’s security of supply; calls , therefore , on the commission to diversify the supply sources of critical raw materials as much as possible , and reduce current reliance on a few countries; underlines the potential of the arctic in this regard; calls on the commission to focus also on securing supplies by establishing strategic stocks and appropriate stockpiling of critical raw materials in europe , particularly in light of the uncertainties linked to the evolution of the geopolitical situation worldwide and the potential trade tensions with rich non-eu producer countries;


### 2. asks the commission to set ambitious product design requirements for easy removal of crms; calls for ambitious minimum recycled crm content targets; requests that the commission propose new collection schemes to increase collection rates of waste products containing crms; asks the commission to propose dedicated recycling targets for crms , by extending the approach suggested in the proposal for a regulation on batteries and waste batteries (com(2020)0798) to other product groups; ### 2. asks the commission to set ambitious product design requirements for easy removal of all those crms that do not get used up in the production process; calls for ambitious minimum recycled crm content targets; requests that the commission propose new collection and recovery schemes to increase collection and recovery rates of waste products containing crms , their conversion to a usable form and where applicable their efficient use; asks the commission to propose dedicated recycling targets for crms , by extending the approach suggested in the proposal for a regulation on batteries and waste batteries (com(2020)0798) to other product groups;


### 2. asks the commission to set ambitious product design requirements for easy removal of crms; calls for ambitious minimum recycled crm content targets; requests that the commission propose new collection schemes to increase collection rates of waste products containing crms; asks the commission to propose dedicated recycling targets for crms , by extending the approach suggested in the proposal for a regulation on batteries and waste batteries (com(2020)0798) to other product groups; ### 2. asks the commission to set ambitious product design requirements for easy removal of parts or components containing crms; calls for ambitious minimum recycled crm content targets; requests that the commission propose new collection schemes to increase collection rates of waste products containing crms; asks the commission to propose dedicated recycling targets for crms , based on life-cycle assessments , and extending the approach suggested in the proposal for a regulation on batteries and waste batteries (com(2020)0798) to other product groups;


### 2. stresses that crm sourcing is tied to geographic location , highly dependent on the availability of low-carbon and renewable energy , and at risk of indirect and direct carbon leakage and exposure to unfair competition; ### 2. stresses that crm sourcing is tied to geographic location , highly dependent on the availability of low-carbon and renewable energy , and at risk of indirect and direct carbon leakage and exposure to unfair competition; notes the favourable circumstances for low-emission and green mining activities in the eu and further explore sourcing possibilities in crm rich member states;


### 3. underlines that future eu free trade agreements (ftas) should include a specific focus on raw materials; calls on the commission to further enhance the enforcement of ftas to ensure that commitments and obligations on sourcing of critical raw materials are met by trading partners; calls on the commission to strengthen cooperation on sustainable sourcing of raw materials with third countries under existing eu policies and instruments , including enlargement , neighbourhood , development and cooperation policies; ### 3. underlines that future eu free trade agreements (ftas) should include specific provisions on critical raw materials; calls on the commission to further enhance the enforcement of ftas to ensure that commitments and obligations on responsible sourcing of critical raw materials are met by trading partners; calls on the commission to strengthen cooperation on sustainable sourcing of critical raw materials with third countries , particularly with likeminded partners such as the us , under existing and future eu policies and instruments , including enlargement , neighbourhood , development and cooperation policies , as well as in its engagement at the wto;


### 3. calls on the commission and the european raw materials alliance to prioritise crm extraction from existing mines and waste dumps over new mining; requests that the commission assess whether current due diligence and environment rules are sufficient to guarantee minimal environmental impact of potential new mining projects in the eu; ### 3. calls on the commission and the european raw materials alliance to promote crm from domestic extraction from existing mines and waste dumps over new mining where possible , which must be extracted and restored using the best available techniques; requests that the commission assess as soon as possible , whether current due diligence and environmental rules should be reinforced to guarantee minimal environmental impact of potential new mining projects in the eu;


### 3. calls on the commission and the european raw materials alliance to prioritise crm extraction from existing mines and waste dumps over new mining; requests that the commission assess whether current due diligence and environment rules are sufficient to guarantee minimal environmental impact of potential new mining projects in the eu; ### 3. calls on the commission and the european raw materials alliance to prioritise crm extraction from existing mines and waste dumps over new mining; requests that the commission assess whether current due diligence and environment rules are sufficient to guarantee minimal environmental impact of both existing and potential new mining projects in and outside the eu and that the eu demand is not satisfied with crm sourced from disputed 1a or indigenous territories2a;


### 4. underlines that a fully functioning rules-based multilateral trading system is also key to ensuring open trade flows of critical raw materials; renews its call on the commission , in this regard , to pursue its efforts for the modernisation , strengthening and substantial reactivation of the world trade organization to fight distortions of international trade and guarantee effective competition worldwide; ### 4. underlines that a fully functioning rules-based multilateral trading system is key to ensuring open trade flows of critical raw materials; expresses concern at the use of export restrictions on critical raw materials by some wto members , including china , and urges all members to refrain from pursuing such policies; renews its call on the commission to redouble its efforts for the modernisation , strengthening and substantial reactivation of the world trade organization to provide a stable and predictable international trading environment and guarantee fair competition worldwide;


### 4. believes that mining permits should include requirements for the proper recovery of all crms; requests that the commission urgently implement parliament’s demands in its resolution of 27 april 2017 on implementation of the mining waste directive2 ; ### 4. believes that mining permits should include requirements for the proper recovery of all economically and technically recoverable crms as well as the highly important management of crm mining waste; requests that the commission urgently implement parliament’s demands in its resolution of 27 april 2017 on implementation of the mining waste directive2 ;


### 4. believes that mining permits should include requirements for the proper recovery of all crms; requests that the commission urgently implement parliament’s demands in its resolution of 27 april 2017 on implementation of the mining waste directive2 ; ### 4. believes that mining permits should include requirements for the proper , safe and sustainable recovery of all crms; requests that the commission urgently implement parliament’s demands in its resolution of 27 april 2017 on implementation of the mining waste directive2;


### 5. welcomes the commission’s proposal to shift eu import payments for critical raw materials from other international currencies to the euro , so as to achieve lower levels of price volatility and help to break the dependence of eu importers and third-country exporters on us dollar funding markets. ### 5. agrees with the commission’s assessment that shifting eu import payments for critical raw materials from other international currencies to the euro , would have some advantages such as reducing levels of price volatility and helping make eu importers and third-country exporters less dependent on us dollar funding markets.


### 5. encourages a comprehensive assessment of the mining sector’s inclusion in the scope of the industrial emissions directive; ### 5. encourages a comprehensive assessment of the steps of the extractive cycle that could be included in the scope of the industrial emissions directive; furthermore , based on this assessment , invites the commission to review directive 2010/75/eu on industrial emissions (ied).


### 5. calls on the commission to pay attention not only to crms but also to the potential criticality of other raw materials needed for the twin transition; ### 5. calls on the commission to pay attention not only to crms but also to the potential criticality of other raw materials needed for the twin transition; underlines that , in addition to specialised minerals , 'commonly produced' minerals , such as copper are also becoming critical as demand for them increases in a carbon neutral society. notes that copper is also a metal where recycling is efficient but its circulation is very slow in some applications;


### 6. believes that mining should be forbidden in nature conservation areas; calls on the commission to evaluate legislative options to ensure that local communities are fully involved in the permit procedures for new industrial and new mining projects. ### 6. recalls that according to international recommendations by the iucn , environmentally damaging industrial activities and infrastructure development should be prohibited in all categories of protected area , therefore believes that mining should be prohibited in protected areas , which at the eu level corresponds to those areas comprised within the natura 2000 network; calls on the commission to evaluate how to ensure that local communities are involved in the permit procedures for new industrial and new mining projects and that are compensated if necessary.


### 8. calls on the commission and the member states to create an important project of common european interest (ipcei) on crms; ### 8. calls on the commission and the member states to create an important project of common european interest (ipcei) on crms; highlights that the projects should unlock the unused potential in crm rich countries where large untapped sources of natural graphite are present;


### 18. notes that while smart product design , the reuse of materials , recycled sources and substitution can significantly reduce primary demand , responsible and sustainable sourcing is needed when supply cannot be met; ### 18. notes that while smart product design , the reuse of materials , recycled sources and substitution can significantly reduce primary demand , responsible and sustainable sourcing is needed when supply cannot be met; further highlights that the development of recycling can be used to respond to future raw material needs;


### 20. welcomes the commission’s plan to deploy earth-observation programmes and remote sensing for resource exploration , operations and post-closure environmental management; ### 20. welcomes the commission’s plan to deploy earth-observation programmes and remote sensing for resource exploration , operations and post-closure environmental management; points out that in-service regulatory oversight can be enhanced with the use of remote sensing methods;


### 21. underlines the importance of maintaining and further developing expertise and skills in mining and processing technologies in the eu; ### 21. underlines the importance of maintaining and further developing expertise and skills in mining and processing technologies in the eu , especially in crm rich countries where large untapped sources of natural graphite are present; notes that raw materials currently mined in europe need to be often exported to asia for refining , as the relevant know-how and technology can be found there , pointing out to many ways dependencies can manifest themselves;


### 27. reiterates its call in its resolution of 25 march 2021 on a new eu-africa strategy – a partnership for sustainable and inclusive development8 for fair and sustainable exploitation of crms in africa , which account for 49 % of eu imports from africa , and supports the commission in its endeavours to conclude new crm partnerships with african countries; ### 27. reiterates its call in its resolution of 25 march 2021 on a new eu-africa strategy – a partnership for sustainable and inclusive development8 for fair and sustainable exploitation of crms in africa , which account for 49 % of eu imports from africa; supports the commission in its endeavours to conclude new crm partnerships with african countries strengthening the value chain in africa to be ethically , environmentally and technologically more sustainable and enable eu-support incapacity building;


### 1. recalls that the damage to the planet’s biodiversity is almost at the point of no return and that biodiversity loss is a driver of zoonotic pathogens such as covid-19; highlights the scientific evidence on the role of trade in biodiversity loss , in particular with regard to trade in minerals , biomass and certain agricultural commodities , and biodiversity loss due to land-use changes , invasive alien species , overexploitation of resources and pollution; ### 1. recalls that the damage to the planet’s biodiversity is almost at the point of no return and that biodiversity loss is a driver of zoonotic pathogens such as covid-19; highlights the scientific evidence on the role of unsustainable trade in biodiversity loss , in particular with regard to trade in minerals , biomass and certain agricultural commodities , and biodiversity loss due to land-use changes , invasive alien species , overexploitation of resources and pollution;


### 1. stresses that the degradation of ecosystems and the stress on them caused by climate change is leading to the extinction of species and the loss of biodiversity at unprecedented rates and is threatening the human rights of current and future generations , such as the rights to life , health , food , water and sanitation , as well as the rights of the most vulnerable people , including women and children , the rights of indigenous peoples and the rights of rural and natural-resource-dependent communities; also emphasises that the degradation of and stress on ecosystems is undermining progress towards the achievement of most of the 2030 sustainable development goals , in particular the objectives of ending poverty and hunger , achieving food security and ensuring healthy lives; ### 1. stresses that the degradation of ecosystems and the stress on them caused by climate change is leading to the extinction of species and the loss of biodiversity at unprecedented rates and is threatening the human rights of current and future generations , such as the rights to life , health , food , water and sanitation , as well as the rights of the most vulnerable people , including women and children , the rights of indigenous peoples and the rights of rural and natural-resource-dependent communities; also emphasises that the degradation of and stress on ecosystems is undermining progress towards the achievement of most of the 2030 sustainable development goals , in particular the objectives of ending poverty and hunger , achieving food security , ensuring water and sanitation and ensuring healthy lives;


### 2. underlines the need for urgent efforts to maintain biodiversity , in particular by taking effective actions to simultaneously protect human rights and conserve and sustainably use nature; calls in this regard for the development of a holistic and human-rights-based eu policy approach aimed at preventing biodiversity loss and degradation; also stresses the need to strengthen international environment and human rights law , environmental legislation and procedural environmental and human rights , in particular by improving access to information , public participation and access to justice , and by supporting the crucial role of local communities , indigenous peoples and environmental human rights defenders in maintaining biodiversity; ### 2. underlines the need for urgent efforts to maintain biodiversity , in particular by taking effective actions to simultaneously protect human rights and conserve and sustainably use nature; calls in this regard for the development of a holistic and human-rights-based eu policy approach aimed at preventing biodiversity loss and degradation; highlights the importance of biodiversity conservation in our overseas countries and territories and outermost regions , and emphasizes in this regard , the need to continue with eu funds and programs that support the conservation of biodiversity; also stresses the need to strengthen international environment and human rights law , environmental legislation and procedural environmental and human rights , in particular by improving access to information , public participation and access to justice , and by supporting and promoting the crucial role of local communities , indigenous peoples and environmental human rights defenders in maintaining biodiversity;


### 3. welcomes progress towards recognition of the linkage between human rights and the health of the biosphere at international and national level; fully supports in this respect the efforts by the un special rapporteur on human rights and the environment to develop guidance on human rights obligations relating to the environment , ecosystems and biodiversity; ### 3. welcomes progress towards recognition of the linkage between human rights and the health of the biosphere at international and national level; fully supports in this respect the efforts by the un special rapporteur on human rights and the environment to develop guidance on human rights obligations relating to the environment , ecosystems and biodiversity , including the protection of nature and oceans , the drastic decline of bees and other insects and a transition towards agriculture that produces food without chemical pesticides;