### for the high performance computing specific objective a joint undertaking is deemed the most suited implementation mechanism , in particular to coordinate national and union strategies and investments in high performance computing infrastructure and research and development , pool resources from public and private funds , and safeguard the economic and strategic interests of the union63 . moreover , high performance computing competence centres in member states will provide high performance computing services to industry , academia and public administrations . __________________ 63 impact assessment accompanying the document ' proposal for a council regulation on establishing the eurohpc joint undertaking ' ### for the high performance computing specific objective the hpc joint undertaking is deemed the most suited implementation mechanism , in particular to coordinate national and union strategies and investments in high performance computing infrastructure and research and development , pool resources from public and private funds , and safeguard the economic and strategic interests of the union63 . the eurohpc ju will enable member states to coordinate together with the union their supercomputing strategies and investments . moreover , high performance computing competence centres in member states will provide high performance computing services to industry , academia and public administrations . the programme should therefore finance the eurohpc ju for the sole purpose of investing in high performance computing under the programme . __________________ 63 impact assessment accompanying the document ' proposal for a council regulation on establishing the eurohpc joint undertaking '


### in its resolution of 1 june 2017 on digitising european industry64 the european parliament highlighted the importance of a common european cybersecurity approach , recognising the need to raise awareness and considered cyber - resilience as a crucial responsibility for business leaders and national and european industrial security policymakers . __________________ 64 document ref . a8 - 0183 / 2017 , available at : http : / / www . europarl . europa . eu / sides / getdoc . do ? type=ta&language=en&reference=p8 - ta - 2017 - 0240 ### in its resolution of 1 june 2017 on digitising european industry64 the european parliament highlighted , in the context of potential vulnerabilities as regards cyberattacks , sabotage , manipulation of data or industrial espionage , the importance of a common european cybersecurity approach , recognising the need to raise awareness on enhancing cybersecurity and considered cyber - resilience as a crucial responsibility for business leaders and national and european industrial security policymakers and the need to make cybersecurity requirements mandatory for public procurement with regard to it equipment and iot products . __________________ 64 document ref . a8 - 0183 / 2017 , available at : http : / / www . europarl . europa . eu / sides / getdoc . do ? type=ta&language=en&reference=p8 - ta - 2017 - 0240


### the european council in its conclusions of 19 october 2017 stressed that to successfully build a digital europe , the union needs in particular labour markets , training and education systems fit for the digital age and that there is a need to invest in digital skills , to empower and enable all europeans ; ### the european council in its conclusions of 19 october 2017 stressed that to successfully build a digital europe , the union needs in particular labour markets , training and education systems fit for the digital age and that there is a need to invest in digital skills and digital education programmes , to empower and enable all europeans ;


### in its resolution of 1 june 2017 on digitising european industry67 the european parliament stated that education , training and lifelong learning are the cornerstone of social cohesion in a digital society . __________________ 67 document ref . a8 - 0183 / 2017 , available at : http : / / www . europarl . europa . eu / sides / getdoc . do ? type=ta&language=en&reference=p8 - ta - 2017 - 0240 ### in its resolution of 1 june 2017 on digitising european industry67 the european parliament stated that education , training and lifelong learning are the cornerstone of social cohesion in a digital society . they are of utmost importance for fighting digital exclusion and for promoting inclusiveness and the competitiveness of european regions . __________________ 67 document ref . a8 - 0183 / 2017 , available at : http : / / www . europarl . europa . eu / sides / getdoc . do ? type=ta&language=en&reference=p8 - ta - 2017 - 0240


### modernising public administrations and services through digital means is crucial to reducing administrative burden on industry and on citizens in general by making their interactions with public authorities faster , more convenient and less costly , as well as by increasing the efficiency and the quality of the services provided to citizens and businesses . since a number of services of public interest already have a union dimension , the support to their implementation and deployment at union level should ensure that citizens and businesses will benefit from the access to high quality digital services across europe . ### modernising public administrations and services through digital means is crucial to reducing administrative burden on industry , business and research as well as on citizens in general by making their interactions with public authorities including judiciaries faster , more convenient and less costly , as well as by increasing the efficiency and the quality of the services provided to citizens and businesses . since a number of services of public interest already have a union dimension , the support to their implementation and deployment at union level should ensure that citizens and businesses will benefit from the access to high quality digital services across europe .


### the annual growth survey published by the commission in 201769 shows that the quality of european public administrations has a direct impact on the economic environment and is therefore crucial to stimulating productivity , competitiveness , economic cooperation , growth and employment . in particular , efficient and transparent public administration and effective justice systems are necessary to support economic growth and deliver high quality services for firms and citizens . __________________ 69 com 725 final ### the annual growth survey published by the commission in 201769 shows that the quality of european public administrations has a direct impact on the economic environment and is therefore crucial to stimulating productivity , competitiveness , economic cooperation , sustainable growth , employment and high - quality work . in particular , efficient and transparent public administration and effective justice systems are necessary to support economic growth and deliver high quality services for firms and citizens . __________________ 69 com 725 final


### the general data protection regulation , applicable from may 2018 onwards , by providing for a single set of rules directly applicable in the member states legal orders , will guarantee the free flow of personal data between eu member states and reinforce trust and security of the individuals , two indispensable elements for a real digital single market . the actions undertaken under this programme , when they involve the processing of personal data , should therefore support the application of the gdpr , for instance in the field of artificial intelligence and block chain technology . ### the general data protection regulation , applicable from may 2018 onwards , by providing for a single set of rules directly applicable in the member states legal orders , will guarantee the free flow of personal data between eu member states and reinforce trust and security of the individuals , two indispensable elements for a real digital single market . the actions undertaken under this programme , when they involve the processing of personal data , should therefore support the application of the gdpr in all new technologies . moreover , product and services should be developed and used in full respect of other eu data protection rules , considering the principles of fairness , transparency , purpose limitation , data minimisation , accountability and privacy by design and by default .


### the programme has the following general objective : to support the digital transformation of the european economy and society and bring its benefits to european citizens and businesses . the programme will : ### the programme has the following general objective : to support the digital transformation of the european economy and society , reinforce the competitive position&#160 ; and bring its benefits to european citizens and businesses . the programme will :


### deploy ready to use / operational technology resulting from research and innovation to build an integrated union high performance computing ecosystem , covering all scientific and industrial value chain segments , including hardware , software , applications , services , interconnections and digital skills ; ### deploy ready to use / operational technology resulting from research and innovation , in particular technologies that have previously benefited or that currently benefit from union funding , to build an integrated union high performance computing ecosystem , covering all scientific and industrial value chain segments , including hardware software , applications , services , interconnections and digital skills ;


### the digital innovation hubs may receive funding in the form of grants . ### the digital innovation hubs may receive contributions from member states , participating third countries or public authorities within them , contributions from international bodies or institutions , contributions from members , shareholders or partners of the digital innovation hub , revenues generated by the digital innovation hubs own assets and activities , bequest , donations and contributions from individuals or funding in the form of grants including from the programme and other union programmes .


### the digital innovation hubs which receive funding shall be involved in the implementation of the programme to : ### the digital innovation hubs shall be involved in the implementation of the programme to :


### provide digital transformation services - including testing and experimentation facilities - targeted towards smes and midcaps , also in sectors that are slow in the uptake of digital and related technologies ; ### provide digital transformation services and technological expertise - including testing and experimentation facilities - targeted towards smes and midcaps , also in sectors that are slow in the uptake of digital and related technologies ;


### transfer expertise and know - how between regions , in particular by networking smes and midcaps established in one region with digital innovation hubs established in other regions which are best suited to provide relevant services ; ### transfer expertise and know - how between regions , in particular by networking smes and midcaps established in one region with digital innovation hubs established in other regions which are best suited to provide relevant services and offer coaching consultancy ;


### legal entities established in : ### legal entities established and , if applicable , liable to pay corporate tax in :


### the interim evaluation of the programme shall be performed once there is sufficient information available about the implementation of the programme , but no later than four years after the start of the implementation of the programme . ### the interim evaluation of the programme shall be performed once there is sufficient information available about the implementation of the programme , but no later than three years after the start of the implementation of the programme . the interim evaluation shall present the findings necessary to make a decision about a follow - up to the programme beyond 2027 and its objectives .


### at the end of the implementation of the programme , but no later than four years after the end of the period specified in article [ 1 ] , a final evaluation of the programme shall be carried out by the commission . ### at the end of the implementation of the programme , but no later than two years after the end of the period specified in article [ 1 ] , a final evaluation of the programme shall be carried out by the commission .


### as part of the control system , the audit strategy may be based on the financial audit of a representative sample of expenditure . that representative sample shall be complemented by a selection based on an assessment of the risks related to expenditure . ### as part of the control system , the audit strategy shall be based on the financial audit of at least a representative sample of expenditure . that representative sample shall be complemented by a selection based on an assessment of the risks related to expenditure .


### the deployment of ready to use / operational technology : supercomputing as a service resulting from r&i to build an integrated european hpc ecosystem , covering all scientific and industrial value chain segments . ### the deployment of ready to use / operational technology : supercomputing as a service resulting from r&i , in particular new technologies that have previously benefitted or that currently benefit from union funding , to build an integrated european hpc ecosystem , covering all scientific and industrial value chain segments .


### all interventions will be designed and implemented primarily through the digital innovation hubs , as defined in article 15 . ### all interventions will be designed and implemented primarily through the digital innovation hubs , as defined in article 16 .


### 1 . ensure that eu citizens can access , share , use , and manage their personal health data securely across borders irrespective of their location or the location of the data . complete the ehealth digital service infrastructure and extend it by new digital services , support deployment of the european exchange format for electronic health records . ### 1 . ensure that eu citizens can access , share , use , and manage their personal health data securely and in a way that guarantees their privacy across borders irrespective of their location or the location of the data . complete the ehealth digital service infrastructure and extend it by new digital services , support deployment of the european exchange format for electronic health records .


### this regulation aims to ensure that all the necessary measures are taken to safeguard an uninterrupted supply of gas throughout the union , in particular to protected customers in the event of difficult climatic conditions or disruptions of the gas supply . these objectives should be achieved through the most cost - effective measures and in such a way that energy markets are not distorted . ### this regulation aims to ensure that all the necessary non - discriminatory measures are taken to safeguard an uninterrupted supply of gas throughout the union , in particular to protected customers in the event of difficult climatic conditions or disruptions of the gas supply . these objectives should be achieved through the most cost - effective intra - and interregional measures and in such a way that energy markets are not distorted and the minimum damage level in the case of installations with a continuous operating flow is not affected . account should also be taken in the broader context of the security of gas supply , which should also be achieved through better diversification of supplies from third countries , new energy interconnections between member states and the use of alternative energy sources . at the same time , it is essential to increase energy - security cooperation with the union’s neighbouring countries , with strategic partners . it would complement union action including funding aimed at increasing energy efficiency .


### the commission communication ‘ framework strategy for a resilient energy union with a forward - looking climate change policy’14 from february 2015 , highlights the fact that the energy union rests on solidarity and trust , which are necessary features of energy security . this regulation should aim to boost solidarity and trust between the member states and should put in place the measures needed to achieve these aims , thus paving the way for implementing the energy union . __________________ 14 communication from the commission to the european parliament and the council , the european economic and social committee , the committee of the regions and the european investment bank , com 80 final . ### the commission communication ‘ framework strategy for a resilient energy union with a forward - looking climate change policy’14 from february 2015 , highlights the fact that the energy union rests on solidarity and trust , which are necessary features of energy security and sustainability . this regulation should aim to boost solidarity and trust between the member states and should put in place the measures needed to achieve these aims , thus paving the way for creating the energy union . __________________ 14 communication from the commission to the european parliament and the council , the european economic and social committee , the committee of the regions and the european investment bank , com 80 final .


### an internal gas market that operates smoothly is the best guarantee of security of energy supply across the union and to reduce the exposure of individual member states to the harmful effects of supply disruptions . where a member state’s security of supply is threatened , there is a risk that measures developed unilaterally by that member state may jeopardise the proper functioning of the internal gas market and damage the gas supply to customers in other member states . to allow the internal gas market to function even in the face of a shortage of supply , provision must be made for solidarity and coordination in the response to supply crises , as regards both preventive action and the reaction to actual disruptions of supply . ### eliminating energy islands , and an effectively interconnected internal gas market that operates smoothly , are the best guarantees of security of energy supply and energy sustainability across the union and to reduce the exposure of individual member states to the harmful effects of supply disruptions . where a member state’s security of supply is threatened , there is a risk that measures developed unilaterally by that member state may jeopardise the proper functioning of the internal gas market and damage the gas supply to customers in other member states . to allow the internal gas market to function even in the face of a shortage of supply , provision must be made for solidarity and coordination in the response to supply crises , as regards both preventive action and the reaction to actual disruptions of supply .


### in a spirit of solidarity , regional cooperation , involving both public authorities and natural gas undertakings , should be the guiding principle of this regulation , to identify the relevant risks in each region and optimise the benefits of coordinated measures to mitigate them and to implement the most cost - effective measures for union consumers . ### in a spirit of solidarity , regional cooperation , involving both public authorities and natural gas undertakings should be the guiding principle of this regulation , to identify the relevant risks in each region and optimise the benefits of coordinated measures at local , regional and cross - border level , in order to mitigate them and consolidate the security of the gas supply and to implement the most cost - effective measures for union consumers . regional cooperation should further increase the role of the union in supporting cross - border cooperation efforts and should be complemented with a stronger union perspective , allowing recourse to all available supplies and tools in the entire internal gas market . this could be facilitated by providing in - depth analysis at union level on the relevant emergency supply corridors , based on gas supply sources common for a group of member states . in the framework of the regional cooperation the existing and the new infrastructure projects can be developed so that cross - border interconnections enhance security of gas supply . a further possibility to take into account when defining the regional groups should be the inclusion of future member states involved in an enlargement process .


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


### a regional approach to assessing risks and defining and adopting preventive and mitigating measures enables efforts to be coordinated , bringing significant benefits in terms of the effectiveness of measures and optimisation of resources . this applies particularly to measures designed to guarantee a continued supply , under very demanding conditions , to protected customers , and to measures to mitigate the impact of an emergency . assessing correlated risks at regional level , which is both more comprehensive and more precise , will ensure that member states are better prepared for any crises . moreover , in an emergency , a coordinated and pre - agreed approach to security of supply ensures a consistent response and reduces the risk of negative spill - over effects that purely national measures could have in neighbouring member states . ### a regional approach to assessing risks and defining and adopting preventive and mitigating measures enables efforts to be coordinated , bringing significant benefits in terms of the effectiveness of measures and optimisation of resources . this applies particularly to measures designed to guarantee a continued supply , under very demanding conditions , to protected customers , and to measures to mitigate the impact of an emergency . assessing correlated risks at regional level , taking both gas and electricity systems into account , which is both more comprehensive and more precise , will ensure that member states are better prepared for any crises . moreover , in an emergency , a coordinated and pre - agreed approach to security of supply ensures a consistent response and reduces the risk of negative spill - over effects that purely national measures could have in neighbouring member states . as preparation for a coordinated and pre - agreed approach , it is important that member states , have also assessed and implemented the cost - effective demand reduction measures available in their areas , especially for the reduction of heating and cooling demand in buildings , but also by improving industrial processes using gas . the regional approach should not lift the responsibility from individual member states to comply with their national security of supply standards , and should not prevent inter - regional cooperation outside the regions established in annex i of this regulation .


### a regional approach to assessing risks and defining and adopting preventive and mitigating measures enables efforts to be coordinated , bringing significant benefits in terms of the effectiveness of measures and optimisation of resources . this applies particularly to measures designed to guarantee a continued supply , under very demanding conditions , to protected customers , and to measures to mitigate the impact of an emergency . assessing correlated risks at regional level , which is both more comprehensive and more precise , will ensure that member states are better prepared for any crises . moreover , in an emergency , a coordinated and pre - agreed approach to security of supply ensures a consistent response and reduces the risk of negative spill - over effects that purely national measures could have in neighbouring member states . ### a flexible regional approach to assessing risks and defining and adopting preventive and mitigating measures enables efforts to be coordinated , bringing significant benefits in terms of the effectiveness of measures and optimisation of resources . this applies particularly to measures designed to guarantee a continued supply , under very demanding conditions , to protected customers , and to measures to mitigate the impact of an emergency . assessing correlated risks at regional level , which is both more comprehensive and more precise , will ensure that member states are better prepared for any crises , including where appropriate through membership of more than one region , where such regions are to be established in accordance with specific risks identified in national risks assessments . moreover , in an emergency , a coordinated and pre - agreed approach to security of supply ensures a consistent response and reduces the risk of negative spill - over effects that purely national measures could have in neighbouring member states .


### in order to make the regional cooperation feasible , member states should establish a cooperation mechanism within each region . such mechanism or mechanisms should be developed sufficiently in time to allow for conducting the risk assessment and drawing up meaningful plans at regional level . member states are free to agree on a cooperation mechanism best suited for a given region . the commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies . in absence of an agreement on the cooperation mechanism , the commission may propose a suitable cooperation mechanism for a given region . ### in order to make the regional cooperation feasible , member states , together with the commission , should establish a cooperation mechanism within each region . such a mechanism or mechanisms should be developed sufficiently in time to allow for conducting the risk assessment and drawing up meaningful plans at regional level . member states are free to agree on a cooperation mechanism best suited for a given region . the commission should have a facilitating role in the overall process and share best practices for arranging regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies . in absence of an agreement on the cooperation mechanism , the commission should propose a suitable cooperation mechanism for a given region .


### when conducting a comprehensive risk assessment to be prepared at regional level , competent authorities should assess natural , technological , commercial , financial , social , political and market - related risks , and any other relevant ones , including , where appropriate , the disruption of the supplies from the single largest supplier . all risks should be addressed by effective , proportionate and non - discriminatory measures to be developed in the preventive action plan and the emergency plan . the results of the risk assessments should also contribute to the all hazard risk assessments foreseen under article 6 of decision no 1313 / 2013 / eu18 . __________________ 18 decision no 1313 / 2013 / eu of the european parliament and of the council of 17 december 2013 on a union civil protection mechanism . ### when conducting a comprehensive risk assessment to be prepared at regional level , competent authorities should assess natural , technological , infrastructural , commercial , financial , social , political , geopolitical , environmental , climate , market - related , and any other relevant risks , including , where appropriate , disruption of supplies from dominant suppliers . all risks should be addressed by effective , proportionate and non - discriminatory measures to be developed in preventive action plan and emergency plan and include both demand - side as well as supply - side measures . the results of the risk assessments should also contribute to the all risk assessments provided for in article 6 of decision no 1313 / 2013 / eu of the european parliament and of the council . __________________ 18 decision no 1313 / 2013 / eu of the european parliament and of the council of 17 december 2013 on a union civil protection mechanism .


### to provide input to the risk assessments , the european network of transmission system operators for gas , in consultation with the gas coordination group and with the european network of transmission system operators for electricity , should carry out union - wide simulations similar to the stress test conducted in 2014 . ### to provide input to the risk assessments , the european network of transmission system operators for gas , in consultation with the gas coordination group and the european network of transmission system operators for electricity , should carry out integrated union - wide simulations similar to the stress test conducted in 2014 . such simulations should be updated at least every two years . a smarter integration of european gas and electricity systems and demand side management can significantly improve european resilience and energy security while decreasing investment in gas infrastructure . the gas coordination group , the union - wide simulations carried out by entsog , national assessments , preventive and emergency action plans shall evolve to reflect the integration of energy systems .


### to ensure maximum preparedness , so as to avoid a supply disruption and mitigate its effects should it nevertheless occur , the competent authorities of a given region must draw up preventive action plans and emergency , after consulting stakeholders . regional plans should take account of the specific characteristics of each member state . they should also clearly define the roles and responsibilities of the natural gas undertakings and the competent authorities . national measures to be designed should take fully account of the regional measures set out in the preventive action plan and emergency plan . they should be so designed as to address national risks in a way that takes full advantage of the opportunities provided by regional cooperation . the plans should be technical and operational in nature , their function being to help prevent the occurrence or escalation of an emergency and to mitigate its effects . the plans should take the security of electricity systems into account and be consistent with the energy union ' s strategic planning and reporting tools . ### to ensure maximum preparedness , so as to avoid a supply disruption and mitigate the effects of such a disruption should it nevertheless occur , the competent authorities of a given region should draw up preventive action plans and emergency plans , after consulting the stakeholders . regional plans should take account of the specific characteristics of each member state , including their cost - effective potential for reducing gas demand , particularly in the building sector for heating and cooling . they should also clearly define the roles and responsibilities of the natural gas undertakings and the competent authorities as well as , where appropriate , electricity undertakings . national measures to be designed should take fully account of the regional measures set out in the preventive action plan and emergency plan . they should be designed so as to address national risks in a way that takes full advantage of the opportunities provided by regional cooperation , energy efficiency and integration with the electricity system . the plans should be technical and operational in nature , their function being to help prevent the occurrence or escalation of an emergency and to mitigate its effects . the plans should take the security of electricity systems into account and be consistent with the eu ' s climate and energy objectives the energy union ' s strategic planning and reporting tools .


### to ensure maximum preparedness , so as to avoid a supply disruption and mitigate its effects should it nevertheless occur , the competent authorities of a given region must draw up preventive action plans and emergency , after consulting stakeholders . regional plans should take account of the specific characteristics of each member state . they should also clearly define the roles and responsibilities of the natural gas undertakings and the competent authorities . national measures to be designed should take fully account of the regional measures set out in the preventive action plan and emergency plan . they should be so designed as to address national risks in a way that takes full advantage of the opportunities provided by regional cooperation . the plans should be technical and operational in nature , their function being to help prevent the occurrence or escalation of an emergency and to mitigate its effects . the plans should take the security of electricity systems into account and be consistent with the energy union’s strategic planning and reporting tools . ### to ensure maximum preparedness , so as to avoid a supply disruption and mitigate its effects should it nevertheless occur , the competent authorities of a given region must draw up preventive action plans and emergency , after consulting stakeholders . regional plans should take account of the specific characteristics of each member state . they should also clearly define the roles and responsibilities of the natural gas undertakings and the competent authorities . national measures to be designed should take fully account of the regional measures set out in the preventive action plan and emergency plan . they should be so designed as to address national risks in a way that takes full advantage of the opportunities provided by regional cooperation . the plans should be technical and operational in nature , their function being to help prevent the occurrence or escalation of an emergency , to mitigate its effects and to avoid the emergence of unfair costs for consumers . the plans should take the security of electricity systems into account and be consistent with the energy union’s strategic planning and reporting tools .


### the roles and responsibilities of all natural gas undertakings and competent authorities should therefore be defined precisely in order to keep the internal gas market functioning properly , particularly in the event of supply disruptions and crises . such roles and responsibilities should be established in such a way as to ensure that a three - level approach is respected which would involve first the relevant natural gas undertakings and industry , then member states at national or regional level , and then the union . this regulation should enable natural gas undertakings and customers to rely on market mechanisms for as long as possible when coping with disruptions . however , it should also provide for mechanisms that can be deployed when markets alone are no longer able to deal adequately with a gas supply disruption . ### the roles and responsibilities of all natural gas undertakings and competent authorities , as well as , where appropriate electricity undertakings , should therefore be defined precisely in order to keep the internal gas market functioning properly , particularly in the event of supply disruptions and crises . such roles and responsibilities should be established in such a way as to ensure that a three - level approach is respected which would involve first the relevant natural gas and electricity undertakings and industry , then member states at national or regional level , , including when appropriate , building regulatory authorities , and then the union . to that end , effective information - sharing across all levels should provide early warning with regard to disruption and the means of mitigation . this regulation is intended to enable natural gas and electricity undertakings and customers to rely on market mechanisms for as long as possible when coping with disruptions . however , it is also intended to provide for mechanisms that can be deployed when markets alone are no longer able to deal adequately with a gas supply disruption .


### demand - side measures , such as fuel switching or reducing the gas supply to large industrial consumers in an economically efficient order , may have a valuable role to play in ensuring energy security , if they can be applied quickly and significantly reduce demand in response to a supply disruption . more should be done to promote efficient energy use , particularly where demand - side measures are needed . the environmental impact of any demand and supply - side measures proposed must be taken into account , with preference being given , as far as possible , to measures that have least impact on the environment . at the same time , security of supply and competitiveness aspects must be taken into account . ### demand - side measures , such as fuel switching or reducing the gas supply to large industrial consumers in an economically efficient order , may have a valuable role to play in ensuring energy security , if they can be applied quickly and significantly reduce demand in response to a supply disruption . more should be done to promote efficient energy use , particularly where demand - side measures are needed . priority should be given to investments aimed at exploiting the sustainable energy potential at local level . the environmental impact of any demand and supply - side measures proposed must be taken into account , with preference being given , as far as possible , to measures that have least impact on the environment . at the same time , security of supply and competitiveness aspects must be taken into account .


### the preventive action plans and emergency plans should be updated regularly and published . they should be subject to peer review . the peer review process allows for early identification of inconsistencies and measures that could endanger other member states’ security of supply , thereby ensuring that plans from different regions are consistent with one another . it also enables member states to share best practice . ### the regional preventive action plans and emergency plans , correlated with those at national level , must be updated regularly and published . they should be subject to peer review . the peer review process allows for early identification of inconsistencies and measures that could endanger other member states’ security of supply , thereby ensuring that plans from different regions are consistent with one another . it also enables member states to share best practice .


### to ensure that the emergency plans are always up - to - date and effective , member states should carry out tests between the updates of the plans by simulating high and medium - impact scenarios and responses in real time . the competent authorities should present the test results at the gas coordination group . ### to ensure that the emergency plans are always up - to - date and effective , the competent authorities should carry out tests between the updates of the plans by simulating high and medium - impact scenarios and responses in real time and by taking into account the risk of stranded assets . the competent authorities should present the test results at the gas coordination group .


### as demonstrated by the october 2014 stress test , solidarity is needed to ensure security of supply across the union and to keep overall costs to a minimum . if an emergency is declared in any member state , a two - step approach should be applied to strengthen solidarity . firstly , all member states which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid . secondly , if the first step fails to provide the necessary supply , further measures by neighbouring member states , even if not in an emergency situation , should be triggered to ensure the supply to households , essential social services and district heating installations in the member state experiencing the emergency . member states should identify and describe the details of these solidarity measures in their emergency plans , ensuring fair and equitable compensation of the natural gas undertakings . ### as demonstrated by the october 2014 stress test , solidarity is needed to ensure security of supply across the union and to keep overall costs to a minimum . if an emergency is declared in any member state , a two - step approach should be applied to strengthen solidarity . all member states which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid . if the first step fails to provide the necessary supply , further measures by neighbouring member states and , where appropriate , electricity undertakings , even if not in an emergency situation , should be taken to ensure the supply to households , essential social services and district heating installations in the member state experiencing the emergency . member states should identify and describe the details of these solidarity measures in their emergency plans , ensuring fair and equitable compensation for the natural gas and , where appropriate , electricity undertakings . .


### as demonstrated by the october 2014 stress test , solidarity is needed to ensure security of supply across the union and to keep overall costs to a minimum . if an emergency is declared in any member state , a two - step approach should be applied to strengthen solidarity . firstly , all member states which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid . secondly , if the first step fails to provide the necessary supply , further measures by neighbouring member states , even if not in an emergency situation , should be triggered to ensure the supply to households , essential social services and district heating installations in the member state experiencing the emergency . member states should identify and describe the details of these solidarity measures in their emergency plans , ensuring fair and equitable compensation of the natural gas undertakings . ### as demonstrated by the october 2014 stress test , solidarity is needed to ensure security of supply across the union and to keep overall costs to a minimum . if an emergency is declared in any member state , a two - step approach should be applied to strengthen solidarity . firstly , all member states which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid . secondly , if the first step fails to provide the necessary supply , further measures by neighbouring member states , even those indirectly interconnected through a non eu country and even if not in an emergency situation , should be triggered to ensure the supply to households , essential social services and district heating installations in the member state experiencing the emergency . member states should identify and describe the details of these solidarity measures in their emergency plans , ensuring fair and equitable compensation of the natural gas undertakings .


### as demonstrated by the october 2014 stress test , solidarity is needed to ensure security of supply across the union and to keep overall costs to a minimum . if an emergency is declared in any member state , a two - step approach should be applied to strengthen solidarity . firstly , all member states which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid . secondly , if the first step fails to provide the necessary supply , further measures by neighbouring member states , even if not in an emergency situation , should be triggered to ensure the supply to households , essential social services and district heating installations in the member state experiencing the emergency . member states should identify and describe the details of these solidarity measures in their emergency plans , ensuring fair and equitable compensation of the natural gas undertakings . ### as demonstrated by the october 2014 stress test , solidarity based on regional cooperation is needed to ensure security of supply across the union and to keep overall costs to a minimum . this solidarity should be defined on three levels of action – bilateral or regional , interregional and union – and it should not be left to an individual regional group alone if a consistent and uniform approach at the union level is needed . if an emergency is declared in any member state , a two - step approach should be applied to strengthen solidarity . firstly , all member states which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid . secondly , if the first step fails to provide the necessary supply , further measures by neighbouring member states , even if not in an emergency situation , should be triggered to ensure the supply to households , essential social services and district heating installations in the member state experiencing the emergency . member states should identify and describe the details of these solidarity measures in their emergency plans , ensuring fair and equitable compensation of the natural gas undertakings .


### in march 2015 , the european council concluded that gas supply contracts with suppliers from third countries should be made more transparent and compatible with the union energy security provisions . in this context an efficient and targeted mechanism for member states ' access to key gas supply contracts should ensure a comprehensive assessment of relevant risks that can lead to a supply disruption or interfere with the necessary mitigating measures should a crisis nevertheless occur . under that mechanism certain key gas supply contracts should be automatically notified , immediately after their conclusion , to the member states . however , any obligation to notify a contract automatically needs to be proportionate . applying this obligation to contracts between a supplier and a buyer covering 40% of the national market strikes the right balance in terms of administrative efficiency and lays down clear obligations for market participants . this does not mean that other gas supply contracts are not relevant to security of supply . accordingly , member states should have the right to request other contracts which might negatively affect security of supply of a member state or region or of the union as a whole . the commission should have the same access to the gas supply contracts as member states , given its role in assessing the consistency and effectiveness of the preventive action plans and emergency plans to address risks to security of supply at national , regional and eu level . the commission may call on the member states to amend the plans so as to take account of the information obtained from the contracts . the confidentiality of commercially sensitive information should be ensured . improved commission access to information on commercial contracts should not affect the commission ' s ongoing efforts to monitor the gas market , and the commission should intervene if violations of the union law are identified . the provisions of this regulation should be without prejudice to the right of the commission to launch infringement proceedings in accordance with article 258 of the treaty on the functioning of the european union and to enforce competition rules , including state aid , . ### completing the internal energy market will create a level playing field , ensuring that all energy supply contracts throughout the union are based on market prices and competition rules . in march 2015 , the european council concluded that agreements related to the buying of gas with suppliers from third countries should be made more transparent and compatible with the union energy security provisions . in this context an efficient and targeted mechanism for member states ' access to key gas supply contracts may contribute to develop a comprehensive assessment of relevant risks that can lead to a supply disruption or interfere with the necessary mitigating measures should a crisis nevertheless occur . under that mechanism certain info of key gas supply contracts should be automatically notified , immediately after their conclusion , to the member states . however , any obligation to notify a contract automatically needs to be proportionate . applying this obligation to contracts between a supplier or its affiliates and a buyer or its affiliates that jointly cover at least 60 % of imports from third countries to the member state strikes the right balance in terms of administrative efficiency and lays down clear obligations for market participants . this does not automatically imply that other gas supply contracts are not relevant to security of supply . accordingly , member states should have the right to request similar info of other contracts which might negatively affect security of supply of a member state or a region or the union in duly and justified circumstances . if considered that the commission should have access to some info provided to member states , given its role in assessing the consistency and effectiveness of the preventive action plans and the emergency plans to address risks to security of supply at national , regional and union level , it should be done in an aggregated basis . the commission should be able to recommend member states to amend the plans so as to take account of the information obtained . the confidentiality of commercially sensitive information should be ensured . increased commission access to other agreements related to the buying of gas should not affect the commission ' s ongoing efforts to monitor the gas market , and the commission should intervene if violations of the union law are identified . the provisions of this regulation should be without prejudice to the right of the commission to launch infringement proceedings in accordance with article 258 of the treaty on the functioning of the european union and to enforce competition rules , including with regard to state aid


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


### since gas supplies from third countries are central to the security of the union gas supply , the commission should coordinate action with regard to third countries , work with supplying and transit countries on arrangements to handle crisis situations and ensure a stable gas flow to the union . the commission should be entitled to deploy a task force to monitor gas flows into the union in crisis situations , in consultation with the third countries involved , and , where a crisis arises from difficulties in a third country , to act as mediator and facilitator . ### since gas supplies from third countries are central to the security of the union gas supply , the commission should coordinate action with regard to third countries , assess their sustainability , carbon footprint and long - term viability , work with supplying and transit countries on arrangements to handle crisis situations and ensure a stable gas flow to the union . the commission should be entitled to deploy a task force to monitor gas flows into the union in crisis situations , in consultation with the third countries involved , and , where a crisis arises from difficulties in a third country , to act as mediator and facilitator .


### since gas supplies from third countries are central to the security of the union gas supply , the commission should coordinate action with regard to third countries , work with supplying and transit countries on arrangements to handle crisis situations and ensure a stable gas flow to the union . the commission should be entitled to deploy a task force to monitor gas flows into the union in crisis situations , in consultation with the third countries involved , and , where a crisis arises from difficulties in a third country , to act as mediator and facilitator . ### since gas supplies from third countries are central to the security of the union gas supply , the commission should coordinate action with regard to third countries , work with supplying and transit countries on arrangements to handle crisis situations and ensure a stable gas flow to the union . this can be achieved when energy and external policies are coordinated in a consistent manner . the commission should be entitled to deploy a task force to monitor gas flows in particular in crisis situations , in consultation with the third countries involved , and , where a crisis arises from difficulties in a third country , to act as mediator and facilitator . the commission should continue its active involvement in the renewal of trilateral talks with gazprom and ukraine on russian gas supplies to ukraine in order to ensure that gas supplies from russia to ukraine are no longer used as a weapon in the russia - ukraine conflict and that ukraine continues to be a reliable gas partner and transit country .


### the member states acting on their own cannot satisfactorily achieve the objective of this regulation , namely to guarantee a secure gas supply within the union . given the scale or effects of the action , it is better achieved at union level . the union may therefore adopt measures , in accordance with the principle of subsidiarity set out in article 5 of the treaty on european union . in accordance with the principle of proportionality set out in that article , this regulation does not go beyond what is necessary to achieve that objective . ### the member states acting on their own cannot satisfactorily achieve the objective of this regulation , namely to guarantee a secure gas supply within the union . given the scale or effects of the action , it is better achieved at union level . the union may therefore adopt measures , with respect to national requirements in terms of security of supply and in accordance with the principle of subsidiarity set out in article 5 of the treaty on european union . in accordance with the principle of proportionality set out in that article , this regulation does not go beyond what is necessary to achieve that objective .


### when implementing the measures provided for in this regulation , the competent authority shall establish the roles and responsibilities of the different actors involved in such a way as to ensure that a three - level approach is respected which involves first the relevant natural gas undertakings and industry , then member states at national or regional level , and then the union . ### when implementing the measures provided for in this regulation , the competent authority shall establish the roles and responsibilities of the different actors involved in such a way as to ensure a three - level approach which involves first the relevant natural gas and , where appropriate , electricity undertakings , and industry , then member states at national or regional level , and then the union .


### the measures to ensure the security of supply contained in the preventive action plans and in the emergency plans shall be clearly defined , transparent , proportionate , non - discriminatory and verifiable , shall not unduly distort competition and the effective functioning of the internal market in gas and shall not endanger the security of gas supply of other member states or of the union as a whole . ### the preventive regional action plans and emergency plans shall be based on national plans for security of gas supply . the measures to ensure the security of supply contained in the regional preventive action plans correlated with those at national level and in the emergency plans shall be clearly defined , transparent , proportionate , non - discriminatory , verifiable , sustainable and consistent with the union’s climate and energy objectives shall not unduly distort competition and the effective functioning of the internal market in gas and shall not endanger the security of gas supply of other member states , regions or of the union as a whole .


### existing and planned interconnections and interconnection capacity between member states as well as the supply patterns ; ### existing interconnections which directly or indirectly pass through a non - eu member state , planned interconnections and interconnection capacity between member states as well as the supply patterns ;


### existing and planned interconnections and interconnection capacity between member states as well as the supply patterns ; ### existing and planned interconnections , interconnection capacity between member states , existing interconnections across non - eu states as well as the supply patterns ;


### each member state or , where a member state so provides , the competent authority shall ensure that the necessary measures are taken so that in the event of a disruption of the single largest gas infrastructure , the technical capacity of the remaining infrastructure , determined according to the n &#8211 ; 1 formula as provided in point 2 of annex ii , is able , without prejudice to paragraph 2 of this article , to satisfy total gas demand of the calculated area during a day of exceptionally high gas demand occurring with a statistical probability of once in 20 years . this is without prejudice to the responsibility of system operators to make the corresponding investments and to the obligations of transmission system operators as laid down in directive 2009 / 73 / ec and regulation no 715 / 2009 . ### each member state or , where a member state so provides , the competent authority shall ensure that the necessary measures are taken so that in the event of a disruption of the single largest gas infrastructure , the technical capacity of the remaining infrastructure , determined according to the n &#8211 ; 1 formula as provided in point 2 of annex ii , is able , without prejudice to paragraph 2 of this article , to satisfy total gas demand of the calculated area during a day of exceptionally high gas demand occurring with a statistical probability of once in 20 years . this should be done having regard to gas consumption trends , taking the long - term impacts of energy efficiency measures and the utilisation rates of existing capacities into account . this is without prejudice to the responsibility of system operators to make the corresponding investments and to the obligations of transmission system operators as laid down in directive 2009 / 73 / ec and regulation no 715 / 2009 .


### the competent authority shall ensure that any new transmission infrastructure contributes to the security of supply through the development of a well - connected network , including , where appropriate , by means of a sufficient number of cross - border entry and exit points according to market demand and the risks identified . the competent authorities shall assess in the risk assessment whether internal bottlenecks exist and whether national entry capacity and infrastructures , in particular transmission networks , are capable of adapting the national and cross border gas flows to the scenario of the disruption of the single largest gas infrastructure at national level and the single largest gas infrastructure of common interest to the region identified in the risk assessment . ### the competent authority shall ensure that any new transmission infrastructure contributes to the security of supply through the development of a well - connected network , including , where appropriate , by means of a sufficient number of cross - border entry and exit points according to market demand and the risks identified . the competent authorities shall assess in the risk assessment whether , with an integrated perspective on gas and electricity systems , internal bottlenecks exist and whether national entry capacity and infrastructures , in particular transmission networks , are capable of adapting the national and cross border gas flows to the scenario of the disruption of the single largest gas infrastructure at national level and the single largest gas infrastructure of common interest to the region identified in the risk assessment .


### the competent authority shall require the natural gas undertakings , that it identifies , to take measures to ensure the supply of gas to the protected customers of the member state in each of the following cases : ### the national regulatory authority shall require the natural gas undertakings , that it identifies , to take measures , in close collaboration with electricity undertakings , to ensure the supply of gas to the protected customers of the member state in each of the following cases :


### the competent authority shall identify the natural gas undertakings referred to in the first subparagraph and specify them in the preventive action plan . any new measures envisaged to ensure the supply standard shall comply with the procedure established in article 8 . ### the competent authority shall identify the natural gas and , where appropriate , electricity undertakings referred to in the first subparagraph and specify them in the preventive action plan . any new measures envisaged to ensure the supply standard , such as enhanced energy efficiency measures , notably in buildings , shall comply with the procedure established in article 8 .


### member states may comply with the obligation laid down in the first subparagraph by replacing the gas with different source of energy to the extent that the same level of protection is achieved . ### member states may comply with the obligation laid down in the first subparagraph of this paragraph by reducing the demand for gas through the implementation of energy efficiency measures or by replacing the gas with a different source of energy , in particular renewable energy , to the extent that the same level of protection is achieved .


### natural gas undertakings shall be allowed to meet their obligations under this article at a regional or union level , where appropriate . the competent authorities shall not require the standards laid down in this article to be met based on infrastructure located only within its territory . ### natural gas undertakings shall be allowed to meet their obligations under this article at a regional or union level , where appropriate . the competent authorities shall not require the standards laid down in this article to be met based on infrastructure or demand - side measures located only within its territory .


### the risk assessment once agreed by all member states in the region shall be notified to the commission for the first time no later than on 1 september 2018 . the risk assessment shall be updated every four years unless circumstances warrant more frequent updates . the risk assessment shall take account of progress made in investments needed to cope with the infrastructure standard defined in article 4 and of country - specific difficulties encountered in the implementation of new alternative solutions . it shall also build on the experience acquired through the simulation of the emergency plans contained in article 9 . ### the risk assessment once agreed by all member states in the region shall be notified to the commission for the first time no later than on 1 september 2018 . the risk assessment shall be updated every four years unless circumstances warrant more frequent updates . the risk assessment shall take account of progress made in investments , including energy efficiency investments , needed to cope with the infrastructure standard defined in article 4 and of country - specific difficulties encountered in the implementation of new alternative solutions . it shall also build on the experience acquired through the simulation of the emergency plans contained in article 9 .


### obligations imposed on natural gas undertakings and other relevant bodies likely to have an impact on security of gas supply , such as obligations for the safe operation of the gas system ; ### obligations imposed on natural gas and , where appropriate , electricity undertakings and other relevant bodies likely to have an impact on security of gas supply , such as obligations for the safe operation of the gas system ;


### define the role and responsibilities of natural gas undertakings and of industrial gas customers including relevant electricity producers , taking account of the different extent to which they are affected in the event of gas supply disruptions , and their interaction with the competent authorities and where appropriate with the national regulatory authorities at each of the crisis levels defined in article 10 ; ### define the role and responsibilities of natural gas and , where appropriate , electricity undertakings and of industrial gas customers including relevant electricity producers , taking account of the different extent to which they are affected in the event of gas supply disruptions , and their interaction with the competent authorities and where appropriate with the national regulatory authorities at each of the crisis levels defined in article 10 ;


### as long as the supply to households , essential social services and district heating installations in the member state having declared the emergency is not satisfied , despite the application of the measure in paragraph 1 , the gas supply to customers other than households , essential social services and district heating installations in any other member state , directly connected to the member state which declared the emergency , shall not continue to the extent necessary to supply the households , essential social services and district heating installations in the member states having declared the emergency . ### without prejudice to the safe and reliable operation of the gas transmission system of a member state , as long as the supply to households , essential social services and district heating installations in the member state having declared the emergency is not satisfied , despite the application of the measure in paragraph 1 , and where all market - based measures have been exhausted , including but not limited to market - based measures which may be available in member states which are not connected directly to the member state in the emergency situation , the gas supply to customers other than households , essential social services and district heating installations in any other member state , directly connected to the member state which declared the emergency , shall not continue to the extent necessary to supply the households , essential social services and district heating installations in the member states having declared the emergency .


### information on the measures planned to be undertaken and already implemented by the competent authority to mitigate the emergency , and information on their effectiveness ; ### information on the measures planned to be undertaken and already implemented by the competent authority to mitigate the emergency , including demand - side measures , and information on their effectiveness ;


### in duly justified circumstances irrespective of a declaration of emergency , the competent authority may require gas undertakings to provide the information referred to in paragraph 1 or additional information necessary to assess the overall situation of the gas supply in the member state or other member states , including contractual information . the commission may request from the competent authorities the information provided by natural gas undertakings . ### in duly justified circumstances irrespective of a declaration of emergency , the national competent authority may require gas undertakings to provide the information referred to in paragraph 1 to assess the overall situation of the gas supply in the member state , including contractual information on volumes . the commission may request from the competent authorities the information provided by natural gas undertakings


### to the competent authority and to the commission immediately after their conclusion or modification the gas supply contracts with a duration of more than 1 year concluded or modified after [ op : please insert the date of entry in force of this regulation ] that individually or cumulatively with other contracts with the same supplier or its affiliates provide more than 40% of yearly natural gas consumption in the member state concerned . the notification obligation shall not apply to the modifications related only to the gas price . the notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract . ### to the competent authority and to the commission immediately after their conclusion or modification the gas supply contracts with the same supplier from a third country or from its affiliates , with a duration of more than 1 year concluded or modified after [ op : please insert the date of entry in force of this regulation ] that individually or cumulatively with contracts with the same supplier or its affiliates provide more than 60% of yearly natural gas consumption in the member state concerned . the notification obligation shall not apply to the gas price and other clauses which do not ensure a comprehensive assessment of relevant risks to security of supply . the notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract . to that end , the national regulatory authorities shall monitor the market supply structure and inform the relevant natural gas undertakings once the 40% threshold is exceeded .


### to the competent authority and to the commission immediately after their conclusion or modification the gas supply contracts with a duration of more than 1 year concluded or modified after [ op : please insert the date of entry in force of this regulation ] that individually or cumulatively with other contracts with the same supplier or its affiliates provide more than 40% of yearly natural gas consumption in the member state concerned . the notification obligation shall not apply to the modifications related only to the gas price . the notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract . ### to the competent authority and to the commission immediately after their conclusion or modification the gas supply contracts with a duration of more than 1 year concluded or modified after [ op : please insert the date of entry in force of this regulation ] that individually or cumulatively with other contracts with the same supplier or its affiliates provide more than 40% of yearly natural gas consumption in the member state concerned . the notification obligation shall not apply to the modifications related only to the gas price . the notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract . the national regulatory authorities shall monitor the market supply structure and inform the relevant natural gas undertakings once the 40% threshold is exceeded .


### the competent authorities and the commission shall preserve the confidentiality of commercially sensitive information . ### the competent authorities and the commission shall preserve the strict confidentiality of commercially sensitive information made available through article 13 .


### the second sentence of article 3 , article 3 , article 4 , and , article 5 , point of article 6 , points and of article 7 , points , , , of article 8 , point and of article 8 , points and of article 9 , article 9 , article 10 , article 11 and article 12 shall create obligations for the members states towards an energy community contracting party subject to the following procedure : ### the second sentence of article 3 , article 3 , article 4 , and , article 5 , point of article 6 , points and of article 7 , points , , , of article 8 , point and of article 8 , points and of article 9 , article 9 , article 10 , article 11 and article 12 shall create reciprocal obligations between the members states and the energy community contracting party subject to the following procedure :


### the second sentence of article 3 , article 3 , article 4 , and , article 5 , point of article 6 , points and of article 7 , points , , , of article 8 , point and of article 8 , points and of article 9 , article 9 , article 10 , article 11 and article 12 shall create obligations for the members states towards an energy community contracting party subject to the following procedure : ### the second sentence of article 3 , article 3 , article 4 , and , article 5 , point of article 6 , points and of article 7 , points , , , of article 8 , point and of article 8 , points and of article 9 , article 9 , article 10 , article 11 shall create obligations for the members states towards an energy community contracting party subject to the following procedure :


### in the european defence action plan , adopted on 30 november 2016 , the commission committed to complement , leverage and consolidate collaborative efforts by member states in developing defence capabilities to respond to security challenges , as well as to foster a competitive and innovative european defence industry . it proposed in particular to launch a european defence fund to support investment in joint research and the joint development of defence equipment and technologies . the fund would support cooperation during the whole cycle of defence product and technology development . ### in the european defence action plan , adopted on 30 november 2016 , the commission committed to complement , leverage and consolidate collaborative efforts by member states in developing and acquiring appropriate and sufficient defence capabilities , enabling it to respond to security challenges , to foster a competitive , transparent , effective and innovative european defence industry &#8211 ; ensuring a sustainable supply chain &#8211 ; and to contribute to the strategic autonomy and technological and industrial independence of the union . it proposed in particular to launch a european defence fund , enhancing synergies and budgetary efficiency , to support investment in joint research and the joint development of defence equipment and technologies . the fund would support cooperation during the whole cycle of defence product and technology development .


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


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


### in order to ensure that the funded actions will contribute to the competitiveness of the european defence industry , they should be market - oriented and demand driven . therefore , the fact that member states have already committed to jointly produce and procure the final product or technology , possibly in a coordinated way , should be taken into account in the award criteria . ### in order to ensure that the funded actions will contribute to the competitiveness of the european defence industry , they should be market - oriented and demand driven , including for dual - use technologies . therefore , the fact that member states have already committed to jointly produce and procure the final product or technology , possibly in a coordinated way , should be taken into account in the award criteria .


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


### the commission should draw up an implementation report at the end of the programme , examining the financial activities in terms of financial implementation results and where possible , impact . this report should also analyse the cross border participation of smes in projects under the programme as well as the participation of smes to the global value chain . ### the commission should draw up an implementation and evaluation report of the programme at the end of each financial year , examining the financial activities in terms of financial implementation results and where possible , impact . this report should also analyse the cross border participation of smes in projects under the programme as well as the participation of smes to the global value chain .


### to support and leverage the cooperation between undertakings , including small and medium - sized enterprises , in the development of technologies or products in line with defence capability priorities commonly agreed by member states within the union ; ### to support and leverage the cooperation between eu member states and between undertakings , including smes and mid - cap companies , in the development of technologies or products in line with defence capability priorities commonly agreed by member states by promoting compatibility , interoperability and standardisation , in particular through the definition of common technical specifications relating thereto ;


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


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


### actions proposed for funding under the programme shall be evaluated on the basis of the following cumulative criteria : ### actions proposed for funding under the programme shall be evaluated with regard to the objectives laid down in article 2 and on the basis of the following cumulative criteria :


### contribution to the security and defence interests of the union by enhancing defence technologies which contribute to implement defence capability priorities commonly agreed by member states within the union ; and , ### contribution to the security and defence interests of the union by enhancing defence technologies which contribute to the implementation of the defence capability priorities commonly agreed by member states within the union , as part of the capacity development plan or coordinated annual defence review , and ;


### the commission shall regularly monitor the implementation of the programme and annually report on the progress made in accordance with article 38 of regulation 966 / 2012 . to this end , the commission shall put in place necessary monitoring arrangements . ### the commission shall regularly monitor and evaluate the implementation of the programme and annually report on the progress made in accordance with article 38 of regulation 966 / 2012 . to this end , the commission shall put in place necessary monitoring arrangements .


### to support greater efficiency and effectiveness of future union policy actions , the commission shall draw up a retrospective evaluation report and send it to the european parliament and to the council . the report - building on relevant consultations of member states and key stakeholders - shall notably assess the progress made towards the achievement of objectives set out in article 2 . it shall also analyse cross border participation of smes in projects implemented under the programme as well as the participation of smes to the global value chain . ### the commission shall draw up an annual monitoring report examining the efficiency and effectiveness of supported actions in terms of financial implementation , results , costs and , where possible , impact . to support greater efficiency and effectiveness of future union policy actions , the commission shall draw up an evaluation report annually and send it to the european parliament and to the council . the report - building on relevant consultations of member states and key stakeholders - shall notably assess the progress made towards the achievement of objectives set out in article 2 . it shall also analyse cross border participation of smes in projects implemented under the programme as well as the participation of smes to the global value chain .


### to support greater efficiency and effectiveness of future union policy actions , the commission shall draw up a retrospective evaluation report and send it to the european parliament and to the council . the report - building on relevant consultations of member states and key stakeholders - shall notably assess the progress made towards the achievement of objectives set out in article 2 . it shall also analyse cross border participation of smes in projects implemented under the programme as well as the participation of smes to the global value chain . ### to support greater efficiency and effectiveness of future union policy actions , the commission shall draw up a retrospective evaluation report and send it to the european parliament and to the council . the report - building on relevant consultations of member states and key stakeholders - shall notably assess the progress made towards the achievement of objectives set out in article 2 . it shall also analyse cross border participation of smes in projects implemented under the programme as well as the participation of smes to the global value chain . moreover , it evaluates the impact on arms exports which benefit from the programme .


### the european parliament , in its resolutions on ' a policy framework for climate and energy in the period from 2020 to 2030 ' and on ' the renewable energy progress report ' , has favoured a binding union 2030 target of at least 30% of total final energy consumption from renewable energy sources , stressing that that target should be implemented by means of individual national targets taking into account the individual situation and potential of each member state . ### the european parliament , in its resolutions on ' a policy framework for climate and energy in the period from 2020 to 2030 ' and on ' the renewable energy progress report ' , has favoured a binding union 2030 target of at least 30% of total final energy consumption from renewable energy sources , stressing that that target should be implemented by means of individual national targets taking into account the individual situation and potential of each member state . in its resolution of 23 june 2016 on ' the renewable energy progress report ' , the european parliament went further , stressing that , in light of the paris agreement , a union target significantly more ambitious was desirable .


### the commission should facilitate the exchange of best practices between the competent national or regional authorities or bodies , for instance through regular meetings to find a common approach to promote a higher uptake of cost - efficient renewable energy projects , encourage investments in new , flexible and clean technologies , and set out an adequate strategy to manage the retirement of technologies which do not contribute to the reduction of emissions or deliver sufficient flexibility , based on transparent criteria and reliable market price signals . ### the commission should facilitate the exchange of best practices between the competent national or regional and local authorities or bodies , for instance through regular meetings to find a common approach to promote a higher uptake of cost - efficient renewable energy projects , encourage investments in new , flexible and clean technologies , and set out an adequate strategy to manage the retirement of technologies which do not contribute to the reduction of emissions or deliver sufficient flexibility , based on transparent criteria and reliable market price signals .


### electricity generation from renewable sources should be deployed at the lowest possible cost for consumers and taxpayers . when designing support schemes and when allocating support , member states should seek to minimise the overall system cost of deployment , taking full account of grid and system development needs , the resulting energy mix , and the long term potential of technologies . ### electricity generation from renewable sources , including energy storage , should be deployed at the lowest possible cost for consumers and taxpayers . when designing support schemes and when allocating support , member states should seek to minimise the overall system cost of deployment , taking full account of grid and system development needs , the resulting energy mix , and the long term potential of technologies .


### member states should be encouraged to pursue all appropriate forms of cooperation in relation to the objectives set out in this directive . such cooperation can take place at all levels , bilaterally or multilaterally . apart from the mechanisms with effect on target renewable energy share calculation and target compliance , which are exclusively provided for in this directive , namely statistical transfers between member states , joint projects and joint support schemes , cooperation can also take the form of , for example , exchanges of information and best practices , as provided for , in particular , in the e - platform established by regulation [ governance ] , and other voluntary coordination between all types of support schemes . ### member states should be encouraged to pursue all appropriate forms of cooperation in relation to the objectives set out in this directive . such cooperation can take place at all levels , bilaterally or multilaterally . apart from the mechanisms with effect on target renewable energy share calculation and target compliance , which are exclusively provided for in this directive , namely statistical transfers between member states , joint projects and joint support schemes , cooperation should also take place within the framework of macro - regional partnership as established by regulation [ governance ] and can also take the form of , for example , exchanges of information and best practices , as provided for , in particular , in the e - platform established by regulation [ governance ] , and other voluntary coordination between all types of support schemes . the european commission ' s trans - european networks for energy strategy should support the objectives of this directive and set out additional incentives for cross - border cooperation as well as regional cooperation between member states in the area of renewable energy .


### at national and regional level , rules and obligations for minimum requirements for the use of energy from renewable sources in new and renovated buildings have led to considerable increases in the use of energy from renewable sources . those measures should be encouraged in a wider union context , while promoting the use of more energy - efficient applications of energy from renewable sources through building regulations and codes . ### at national , regional and local level , rules and obligations for minimum requirements for the use of energy from renewable sources in new and renovated buildings have led to considerable increases in the use of energy from renewable sources . those measures should be encouraged in a wider union context , while promoting the use of more energy - efficient applications of energy from renewable sources through building regulations and codes .


### it is important to provide information on how the supported electricity is allocated to final customers . in order to improve the quality of that information to consumers , member states should ensure that guarantees of origin are issued for all units of renewable energy produced . in addition , with a view to avoiding double compensation , renewable energy producers already receiving financial support should not receive guarantees of origin . however , those guarantees of origin should be used for disclosure so that final consumers can receive clear , reliable and adequate evidence on the renewable origin of the relevant units of energy . moreover , for electricity that received support , the guarantees of origin should be auctioned to the market and the revenues should be used to reduce public subsidies for renewable energy . ### it is important to provide information on how the renewable energy sources injected into electricity and gas grids are allocated to final customers . in order to improve the quality of that information to consumers , member states should ensure that guarantees of origin are issued for all units of renewable energy produced and injected into both electricity and gas grid . in addition , with a view to avoiding double compensation , renewable energy producers already receiving financial support should not receive guarantees of origin . however , those guarantees of origin should be used for disclosure so that final consumers can receive clear , reliable and adequate evidence on the renewable origin of the relevant units of energy . moreover , for renewable energy that received support , the guarantees of origin should be auctioned to the market and the revenues should be used to reduce public subsidies for renewable energy .


### with the growing importance of self - consumption of renewable electricity , there is a need for a definition of renewable self - consumers and a regulatory framework which would empower self - consumers to generate , store , consume and sell electricity without facing disproportionate burdens . collective self - consumption should be allowed in certain cases so that citizens living in apartments for example can benefit from consumer empowerment to the same extent as households in single family homes . ### with the growing importance of self - consumption of renewable electricity , there is a need for a definition of renewable self - consumers and a regulatory framework which would empower self - consumers to generate , store , consume and sell electricity without facing disproportionate burdens . collective self - consumption should be allowed for citizens living in apartments who for example can benefit from consumer empowerment to the same extent as households in single family homes .


### the specific characteristics of local renewable energy communities in terms of size , ownership structure and the number of projects can hamper their competition on equal footing with large - scale players , namely competitors with larger projects or portfolios . measures to offset those disadvantages include enabling energy communities to operate in the energy system and easing their market integration . ### the specific characteristics of local renewable energy communities in terms of size , ownership structure and the number of projects can hamper their competition on equal footing with large - scale players , namely competitors with larger projects or portfolios . measures to offset those disadvantages include enabling energy communities to operate in the energy system , aggregate their offers , and to ease their market integration and participation .