### the esf + shall support , complement and add value to the policies of the member states to ensure equal opportunities , access to the labour market , fair working conditions , social protection and inclusion , and a high level of human health protection . ### the esf + shall support , complement and add value to the policies of the member states to ensure equal opportunities , non - discrimination , equal access to the labour market , fair working conditions , social protection and inclusion for all , and a high level of human health protection . all actions under the esf + shall respect the charter of fundamental rights of the european union .


### member states shall allocate an appropriate amount of their esf + resources under shared management to address challenges identified in relevant country - specific recommendations adopted in accordance with article 121 tfeu and article 148 tfeu and in the european semester falling within the scope of the esf + as set out in article 4 . ### member states shall allocate an appropriate amount of their esf + resources under shared management to address challenges identified in relevant country - specific recommendations adopted in accordance with article 121 tfeu and article 148 tfeu and in the european semester falling within the scope of the esf + as set out in article 4 , taking into account the rights and principles enshrined in the charter of fundamental rights of the european union .


### a modern internal market promotes competition and benefits consumers , businesses and employees . making better use of the ever evolving internal market in services should help european businesses create jobs and grow across borders , offer wider choice of services at better prices , and maintain high standards for consumers and workers . to achieve this , the programme should contribute to the removal of remaining barriers , and to ensure a regulatory framework that can accommodate new innovative business models . ### a modern internal market promotes competition and benefits consumers , businesses and employees . making better use of the ever evolving internal market in services should help european businesses , irrespective of their size , create new jobs and grow across borders , offer a wider choice of services at better prices , and maintain high standards for consumers and workers . to achieve this , the programme should contribute to the removal of remaining barriers , and to ensure a regulatory framework that can accommodate new innovative business models .


### the programme should also promote the correct and full implementation and application of the union legal framework for anti - money laundering and countering terrorism financing by the member states and the development of future policies to address new challenges in the field . it should also support the relevant activities of the international organisations of european interest , such as the committee of experts on the evaluation of anti - money laundering measures and the financing of terrorism of the council of europe . ### the programme should also promote the correct and full implementation and application of the union legal framework for anti - money laundering and countering terrorism financing by the member states and the development of future policies to address new challenges in the field , in order to pinpoint and implement the means of preventing and combating these phenomena . it should also support the relevant activities of the international organisations of european interest , such as the committee of experts on the evaluation of anti - money laundering measures and the financing of terrorism of the council of europe .


### many of the union ' s competitiveness problems involve smes ' difficulties in obtaining access to finance because they struggle to demonstrate their credit - worthiness and have insufficient collateral . additional financing challenges arise from smes ' need to stay competitive by engaging e . g . in digitization , internationalization and innovation activities and skilling up their workforce . limited access to finance has a negative effect on businesses creation , growth and survival rates , as well as on the readiness of new entrepreneurs to take over viable companies in the context of a business succession . ### many of the union ' s competitiveness problems involve smes ' difficulties in obtaining access to finance because they struggle to demonstrate their credit - worthiness and have insufficient collateral . additional financing challenges arise from smes ' need to stay competitive by engaging e . g . in digitization , internationalization and innovation activities and skilling up their workforce . limited access to finance has a negative effect on businesses creation , growth , the local economy and survival rates , as well as on the readiness of new entrepreneurs to take over viable companies in the context of a business succession .


### placing on the market of products that are not compliant with union law puts those who comply at disadvantage and may endanger consumers . many entrepreneurs disregard the rules either through lack of knowledge or intentionally to gain a competitive advantage . market surveillance authorities are often underfunded and constrained by national boundaries , while entrepreneurs trade at union or even global level . in particular , in the case of e - commerce , market surveillance authorities have great difficulties in tracing non - compliant products imported from third countries and identifying the responsible entity within their jurisdiction . the programme should therefore seek to strengthen product compliance by providing the right incentives to entrepreneurs , intensifying compliance checks and promoting closer cross - border cooperation among enforcement authorities . the programme should also contribute to the consolidation of the existing framework for market surveillance activities , encourage joint actions of market surveillance authorities from different member states , improve the exchange of information and promote convergence and closer integration of market surveillance activities . ### placing on the market of products that are not compliant with union law or type - approved puts those who comply at a disadvantage and may endanger consumers . many entrepreneurs disregard the rules either through lack of knowledge or intentionally to gain a competitive advantage . market surveillance authorities are often underfunded and constrained by national boundaries , while entrepreneurs trade at union level , at a cross - border level , or even at a global level . in particular , in the case of e - commerce , market surveillance authorities have great difficulties in tracing non - compliant products imported from third countries and identifying the responsible entity within their jurisdiction . the programme should therefore seek to strengthen product compliance by providing the right incentives to entrepreneurs , intensifying compliance checks and promoting closer cross - border cooperation among enforcement authorities . the programme should also contribute to the consolidation of the existing framework for market surveillance activities , encourage joint actions of market surveillance authorities from different member states , improve the exchange of information and promote convergence and closer integration of market surveillance activities .


### contributing to a high level of health for humans , animals and plants along the food chain and in related areas , including by preventing and eradicating diseases and pests , and to support the improvement of the welfare of animals as well as a sustainable food production and consumption ; ### contributing to a high level of health for humans , animals and plants along the agricultural and food supply chain and in related areas , including by preventing and eradicating diseases and pests , also by means of emergency measures in the event of large - scale crisis situations and unforeseeable events affecting animal or plant health , and to support the improvement of the welfare of animals as well as a sustainable agri - food production and consumption ;


### persons who work for an organisation or are in contact with it in the context of their work - related activities are often the first to know about threats or harm to the public interest which arise in this context . by ' blowing the whistle ' they play a key role in exposing and preventing breaches of the law and in safeguarding the welfare of society . however , potential whistleblowers are often discouraged from reporting their concerns or suspicions for fear of retaliation . ### persons who work or worked for an organisation or are or were in contact with it are often the first to know about threats , harm or criminal or illegal activities . by ' blowing the whistle ' they play a key role in unveiling violations of fundamental rights and in safeguarding the welfare of society . whistleblowers play a crucial role in unveiling wrongdoing or unethical and dishonest conduct to the public interest that is not unlawful . it is often difficult for them to assess the lawfulness of facts . therefore according to the european court of human rights the legal assessment is not the task of the whistleblowers . 4 it is sufficient that they act in good faith that the facts are correct . however , potential whistleblowers are often discouraged from reporting their concerns or suspicions for fear of retaliation . 4echr , v . section , 27 . 07 . 2011 - 28274 / 08 , heinisch / germany .


### persons need specific legal protection where they acquire the information they report through their work - related activities and therefore run the risk of work - related retaliation . the underlying reason for providing them with protection is their position of economic vulnerability vis - à - vis the person on whom they de facto depend for work . when there is no such work - related power imbalance there is no need for protection against retaliation . ### persons need specific legal protection where they acquire the information they report through their work - related activities and therefore run the risk of work - related retaliation . the underlying reason for providing them with protection is their position of economic vulnerability vis - à - vis the person on whom they de facto depend for work .


### effective detection and prevention of breaches of union law requires ensuring that potential whistleblowers can easily and in full confidentiality bring the information they possess to the attention of the relevant competent authorities which are able to investigate and to remedy the problem , where possible . ### effective detection and prevention of breaches of union law requires ensuring that potential whistleblowers can easily , anonymously or in full confidentiality , bring the information they possess to the attention of the relevant competent authorities which are able to investigate and to remedy the problem , where possible .


### establish independent and autonomous external reporting channels , which are both secure and ensure confidentiality , for receiving and handling information provided by the reporting person ; ### establish independent and autonomous external reporting channels , which are secure , ensure confidentiality and allow for anonymous disclosures , for receiving and processing information provided by the reporting person ;


### persons who report information about threats or harm to the public interest obtained in the context of their work - related activities make use of their right to freedom of expression . the right to freedom of expression , enshrined in article 11 of the charter of fundamental rights of the european union and in article 10 of the european convention on human rights , encompasses media freedom and pluralism . ### persons who report information particularly about threats or harm to the public interest make use of their right to freedom of expression . the right to freedom of expression , enshrined in article 11 of the charter of fundamental rights of the european union and in article 10 of the european convention on human rights , encompasses freedom of information as well as media freedom and pluralism .


### coercion , intimidation , harassment or ostracism at the workplace ; ### coercion , intimidation , harassment or ostracism ;


### in certain policy areas , breaches of union law may cause serious harm to the public interest , in the sense of creating significant risks for the welfare of society . where weaknesses of enforcement have been identified in those areas , and whistleblowers are in a privileged position to disclose breaches , it is necessary to enhance enforcement by ensuring effective protection of whistleblowers from retaliation and introducing effective reporting channels . ### in certain policy areas , breaches of union law may cause serious harm to the public interest , in the sense of creating significant risks for the welfare of society . if whistleblowers make a disclosure in the public interest , their effective protection from retaliation must be insured and effective internal and external reporting channels must be introduced .


### as a rule , reporting persons should first use the internal channels at their disposal and report to their employer . however , it may be the case that internal channels do not exist or that their use is not mandatory , or that they were used but did not function properly . ### reporting persons can first use the internal channels at their disposal and report to their employer .


### the detailed description referred to in point of paragraph 1 shall include the exceptional cases in which confidentiality of personal data may not be ensured , including where the disclosure of data is a necessary and proportionate obligation required under union or national law in the context of investigations or subsequent judicial proceedings or to safeguard the freedoms of others including the right of defence of the concerned person , and in each case subject to appropriate safeguards under such laws . ### the detailed description referred to in point of paragraph 1 shall include the exceptional cases in which confidentiality of personal data may be breached , including where the disclosure of data is a necessary and proportionate obligation required under union or national law in the context of investigations or subsequent judicial proceedings or to safeguard the freedoms of others including the right of defence , and in each case subject to appropriate safeguards under such laws .


### persons making a public disclosure directly should also qualify for protection in cases where a breach remains unaddressed despite having been reported internally and / or externally following a tiered use of available channels ; or in cases where reporting persons have valid reasons to believe that there is collusion between the perpetrator of the breach and the competent authority is reasonably suspected , that evidence may be concealed or destroyed , or that the effectiveness of investigative actions by competent authorities might be jeopardised ; or in cases of imminent and manifest danger for the public interest , or where there is a risk of irreversible damage , including , inter alia , harm to physical integrity . ### persons making a public disclosure directly should also qualify for protection where the public has an overriding interest in being informed directly or in cases where a breach remains unaddressed despite having been reported internally and / or externally following a tiered use of available channels ; or in cases where reporting persons have valid reasons to believe that there is collusion between the perpetrator of the breach and the competent authority is reasonably suspected , that evidence may be concealed or destroyed , or that the effectiveness of investigative actions by competent authorities might be jeopardised ; or in cases of imminent and manifest danger for the public interest , or where there is a risk of irreversible damage , including , inter alia , harm to physical integrity .


### member states shall ensure that competent authorities keep records of every report received . ### member states shall ensure that competent authorities keep records of every report received . the reports will be stored only for as long as it is deemed necessary and proportionate after which they will be deleted .


### in other cases , internal channels could not reasonably be expected to function properly , for instance , where the reporting persons have valid reasons to believe that they would suffer retaliation in connection with the reporting ; that their confidentiality would not be protected ; that the ultimate responsibility holder within the work - related context is involved in the breach ; that the breach might be concealed ; that evidence may be concealed or destroyed ; that the effectiveness of investigative actions by competent authorities might be jeopardised or that urgent action is required ( for instance because of an imminent risk of a substantial and specific danger to the life , health and safety of persons , or to the environment . in all such cases , persons reporting externally to the competent authorities and , where relevant , to bodies , offices or agencies of the union shall be protected . moreover , protection is also to be granted in cases where union legislation allows for the reporting person to report directly to the competent national authorities or bodies , offices or agencies of the union , for example in the context of fraud against the union budget , prevention and detection of money laundering and terrorist financing or in the area of financial services . ### in other cases , internal channels could not reasonably be expected to function properly , for instance , where the reporting persons have valid reasons to believe that they would suffer retaliation in connection with the reporting ; that their confidentiality would not be protected or their anonymous report would not be investigated ; that the ultimate responsibility holder within the work - related context is involved in the breach ; that the breach might be concealed ; that evidence may be concealed or destroyed ; that the effectiveness of investigative actions by competent authorities might be jeopardised or that urgent action is required ( for instance because of an imminent risk of a substantial and specific danger to the life , health and safety of persons , or to the environment . in all such cases , persons reporting externally to the competent authorities and , where relevant , to bodies , offices or agencies of the union shall be protected and anonymous reports shall be investigated upon , if well evidenced . moreover , protection is also to be granted in cases where union legislation allows for the reporting person to report directly to the competent national authorities or bodies , offices or agencies of the union , for example in the context of fraud against the union budget , prevention and detection of money laundering and terrorist financing or in the area of financial services .


### a person reporting to relevant bodies , offices or agencies of the union on breaches falling within the scope of this directive shall qualify for protection as laid down in this directive under the same conditions as a person who reported externally in accordance with the conditions set out in paragraph 2 . ### a person reporting to relevant bodies , offices , elected officials or agencies of the union on breaches falling within the scope of this directive shall qualify for protection as laid down in this directive under the same conditions as a person who reported in accordance with the conditions set out in paragraph 1 ) .


### any processing of personal data carried out pursuant to this directive , including the exchange or transmission of personal data by the competent authorities , shall be made in accordance with regulation 2016 / 679 and directive 2016 / 680 . any exchange or transmission of information by competent authorities at union level should be undertaken in accordance with regulation no 45 / 2001 . personal data which are not relevant for the handling of a specific case shall be immediately deleted . ### any processing of personal data carried out pursuant to this directive , including the exchange or transmission of personal data by the competent authorities , shall be made in accordance with regulation 2016 / 679 and directive 2016 / 680 . any exchange or transmission of information by competent authorities at union level should be undertaken in accordance with regulation no 45 / 2001 . personal data which are not relevant for the handling of a specific case shall not be collected or , if accidentally collected , shall be immediately deleted .


### accordingly , common minimum standards ensuring effective whistleblower protection should apply in those acts and policy areas where i ) there is a need to strengthen enforcement ; ii ) under - reporting by whistleblowers is a key factor affecting enforcement , and iii ) breaches of union law cause serious harm to the public interest . ### accordingly , common minimum standards ensuring effective whistleblower protection should apply in all union and national laws and areas .


### give feedback to the reporting person about the follow - up of the report within a reasonable timeframe not exceeding three months or six months in duly justified cases ; ### give feedback to the reporting person about the follow - up of the report within a reasonable timeframe not exceeding 60 days or 120 months in duly justified cases ;


### a person reporting to relevant bodies , offices or agencies of the union on breaches falling within the scope of this directive shall qualify for protection as laid down in this directive under the same conditions as a person who reported externally in accordance with the conditions set out in paragraph 2 . ### a person reporting to relevant bodies , offices or agencies of the union on breaches falling within the scope of this directive shall qualify for protection as laid down in this directive under the same conditions as a person who reported in accordance with the conditions set out in paragraph 1 .


### persons who work for an organisation or are in contact with it in the context of their work - related activities are often the first to know about threats or harm to the public interest which arise in this context . by ' blowing the whistle ' they play a key role in exposing and preventing breaches of the law and in safeguarding the welfare of society . however , potential whistleblowers are often discouraged from reporting their concerns or suspicions for fear of retaliation . ### persons who work for an organisation or are in contact with it are often the first to know about threats or harm to the public interest which arise in this context . by ' blowing the whistle ' they play a key role in exposing and preventing breaches of the law , in safeguarding the welfare of society and in protecting the fundamental right to freedom of expression and information . however , potential whistleblowers are often discouraged from reporting their concerns or suspicions for fear of retaliation .


### the requirement of a tiered use of reporting channels , as a general rule , is necessary to ensure that the information gets to the persons who can contribute to the early and effective resolution of risks to the public interest as well as to prevent unjustified reputational damage from public disclosure . at the same time , some exceptions to its application are necessary , allowing the reporting person to choose the most appropriate channel depending on the individual circumstances of the case . moreover , it is necessary to protect public disclosures taking into account democratic principles such as transparency and accountability , and fundamental rights such as freedom of expression and media freedom , whilst balancing the interest of employers to manage their organisations and to protect their interests with the interest of the public to be protected from harm , in line with the criteria developed in the case - law of the european court of human rights57 . _________________ 57 one of the criteria for determining whether retaliation against whistleblowers making public disclosures interferes with freedom of expression in a way which is not necessary in a democratic society , is whether the persons who made the disclosure had at their disposal alternative channels for making the disclosure ; see , for instance , guja v . moldova [ gc ] , no 14277 / 04 , echr 2008 . ### the use of the different reporting channels necessary to ensure that the information gets to the persons who can contribute to the early and effective resolution of risks to the public interest . at the same time , some rules to its application are necessary , allowing the reporting person to choose the most appropriate channel depending on the individual circumstances of the case . moreover , it is necessary to protect public disclosures taking into account democratic principles such as transparency and accountability , and fundamental rights such as freedom of expression and media freedom .


### this regulation guarantees the right to respect for private and family life and to the protection of personal data , as set out in articles 7 and 8 of the charter of fundamental rights of the european union . ### this regulation guarantees the right to respect for private and family life , to the protection of personal data , non - discrimination and gender equality as set out in articles 7 , 8 , 21 and 23 of the charter of fundamental rights of the european union .


### asylum and managed migration statistics are fundamental for the study , definition and evaluation of a wide range of policies , particularly as regards responses to the arrival of persons seeking protection in europe . ### asylum and managed migration statistics are fundamental for the study , definition and evaluation of a wide range of policies , particularly as regards responses to the arrival of persons seeking protection in europe , with the aim of achieving the best solutions .


### other union instruments and programmes also provide a significant contribution to improving conditions underpinning certain investments in member states , which can be conducive to or be part of such reforms . in particular , the union funds covered by regulation no yyy / xx of the european parliament and of the council [ cpr ] link investment to enabling conditions , foresee a macroeconomic governance mechanism and may finance costs of structural reforms linked to investments in policy areas relevant for cohesion policy . however , currently , no instrument foresees direct financial support that provides incentives for the member states to implement reforms in all policy areas , in response to challenges identified in the european semester . moreover , there is currently no instrument providing specific and targeted financial and technical support to member states whose currency is not the euro in their efforts to implement reforms that are relevant for joining the euro area . ### however , currently , no instrument foresees direct financial support that provides incentives for the member states to implement reforms in all policy areas , in response to challenges identified in the european semester . moreover , there is currently no instrument providing specific and targeted financial and technical support to member states whose currency is not the euro in their efforts to implement reforms that are relevant for joining the euro area .


### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . it is further appropriate to provide that the commission services may issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used . ### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting costs or prices may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials or energy , are not the result of free market forces because they are affected by unfair government intervention , including low environmental , social and tax standards . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : there are significant differences in the environmental performance of production , such as with regard to carbon emissions , or in labour standards , including as a result of non - ratification or non - implementation of core ilo conventions , or corporate tax standards , including low levels of taxation and lack of transparency ; and state interference with respect to export prices or costs . it is further appropriate to provide that the commission services issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used .


### it is further appropriate to recall that costs should normally be calculated on the basis of records kept by the exporter or producer under investigation . however , where there are significant distortions in the exporting country with the consequence that costs reflected in the records of the party concerned are artificially low , such costs may be adjusted or established on any reasonable basis , including information from other representative markets or from international prices or benchmarks . in the light of experience gained in past proceedings , it is appropriate to further clarify that , for the purposes of applying the provisions introduced by this regulation , due account should be taken of all relevant evidence , including relevant assessment reports regarding the circumstances prevailing on the domestic market of the exporting producers and the evidence on which they are based , which has been placed on the file , and upon which interested parties have had an opportunity to comment . ### it is further appropriate to recall that costs should normally be calculated on the basis of records kept by the exporter or producer under investigation . however , where there are significant distortions in the exporting country with the consequence that costs reflected in the records of the party concerned are artificially low , such costs may be adjusted or established on any reasonable basis , including information from other representative markets or from international prices or benchmarks . in the light of experience gained in past proceedings , it is appropriate to further clarify that , for the purposes of applying the provisions introduced by this regulation , due account should be taken of all relevant evidence , including relevant assessment reports regarding the circumstances prevailing on the domestic market of the exporting producers and the evidence on which they are based , which has been placed on the file , and upon which interested parties have had an opportunity to comment . it is especially the case in the absence of equivalent environmental and social standards or when overcapacities have an important impact on prices and costs . overcapacities are defined when the commercial surpluses start being structural without any comparative advantage in the country , when domestic prices and export prices are lower than the prices on the world market or when investments in new production capacities are realised in discordance with a growing commercial surplus . notes that trade unions can provide a specific insight in terms of health and safety conditions as well as environmental and social standards .


### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . it is further appropriate to provide that the commission services may issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used . ### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting costs or prices may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials or energy , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , decision , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; distortion in the operation of the privatised economy ; lack of implementation of company law with adequate corporate governance rules ; lack of effective legal framework for the conduct of business and non - proper functioning of a free - market economy including intellectual property rights or bankruptcy laws ; access to finance granted by institutions implementing public policy objectives ; lack of existence of a genuine financial sector and low social and environmental standards leading to unfair competition . it is further appropriate to provide that the commission services shall issue a report describing the specific situation concerning these criteria in a certain country or a certain sector in taking into consideration the specific situation of european industries where their fixed cost linked to investment represent more than 5% of the turnover in the market economy ; that such report and the evidence on which it is based shall be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used .


### articles 2 and 2 of regulation 2016 / 1036 stipulate the basis on which normal value should be determined in the case of imports from non - market economy countries . in view of developments with respect to certain countries that are members of the wto , it is appropriate that , for those countries , normal value should be determined on the basis of paragraphs 1 to 6a of article 2 of regulation 2016 / 1036 , with effect from the date on which this regulation enters into force , and subject to the provisions of this regulation . in the case of countries which are , at the date of initiation , not members of the wto and listed in annex i of regulation 2015 / 7552 , norma1 value should be determined on the basis of paragraph 7 of article 2 of regulation 2016 / 1036 , as amended by this regulation . this regulation should be without prejudice to establishing whether or not any wto member is a market economy . __________________ 2 regulation 2015 / 755 of the european parliament and of the council of 29 april 2015 on common rules for imports from certain third countries . ### in view of developments in world trade , concerning also members of the wto , including their effects on domestic industry , it is appropriate to determine normal value on the basis of paragraphs 1 to 6a of article 2 of regulation 2016 / 1036 , with effect from the date on which this regulation enters into force , and subject to the provisions of this regulation . in the case of non - market - economy countries which are members of the wto or that , at the date of initiation , are not members of the wto and listed in annex i of regulation 2015 / 7552 , norma1 value should be determined on the basis of paragraph 7 of article 2 of regulation 2016 / 1036 , as amended by this regulation . __________________ 2 regulation 2015 / 755 of the european parliament and of the council of 29 april 2015 on common rules for imports from certain third countries .


### when appropriate , the commission services may issue a report describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file . ### when appropriate or at the request of a sector of industry or a trade union , the commission services must issue a report describing the specific situation concerning at least the criteria listed in point , whose application is compulsory , in a certain country or a certain sector . the european parliament must be informed of this . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file . the report must be updated annually .


### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . it is further appropriate to provide that the commission services may issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used . ### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces , e . g . by affecting production costs and product prices , may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces because they are affected by government intervention , including low environmental social and tax standards . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; access to finance granted by institutions implementing public policy objectives ; the presence of significant differences in the environmental performance of production , such as with regards to carbon emissions , or in labour standards , including as a result of non - ratification or non - implementation of core ilo conventions , or tax standards , including low levels of taxation and lack of transparency . it is further appropriate to provide that the commission services issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used .


### significant distortions for the product concerned within the meaning of point may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces as they are affected by government intervention . in considering whether or not significant distortions exist regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . ### significant distortions for the product concerned within the meaning of point may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces as they are affected by government intervention or come about as a result of social and / or environmental dumping . in considering whether or not significant distortions exist regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; access to finance granted by institutions implementing public policy objectives ; price dumping involving infringement of labour law or environmental protection law .


### the parties to the investigation shall be informed shortly after initiation about the relevant sources that the commission intends to use for the purpose of point and shall be given 10 days to comment . for this purpose , interested parties shall be given access to the file , including any evidence on which the investigating authority relies , without prejudice to article 19 . ### the parties including trade unions and smes to the investigation shall be informed shortly after initiation about the relevant sources that the commission intends to use for the purpose of point and shall be given 10 days to comment . for this purpose , interested parties shall be given access to the file , including any evidence on which the investigating authority relies , without prejudice to article 19 .


### the union industry may rely on the report referred to in point for the calculation of normal value when filing a complaint in accordance with article 5 or a request for a review in accordance with article 11 . ### the union industry and trade unions may rely on the report referred to in point for the calculation of normal value when filing a complaint in accordance with article 5 or a request for a review in accordance with article 11 . insists on the fact that the european union should do more to help trade unions and firms to take advantages of eu measures to combat dumping , in that sense , trade unions and smes should be accompanied by a help desk for filing complaints and providing guidance in investigation proceedings . the desk could even help them to put together the initial evidence of economic injury needed to justify launching an anti - dumping investigation .


### when appropriate , the commission services may issue a report describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file . ### when appropriate , the commission services may issue a report describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . such report may also be requested from the commission by the european parliament , member states and european companies . it shall follow a set of criteria that shall be determined by the commission following a stakeholder meeting with interested parties and under consultation with the european parliament . further , such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . that report shall also include data on lack of respect for internationally - recognised standards on taxation and the environment that may unduly reduce the cost of production or increase product prices , as well as other unjustified low tax arrangements or environmental or labour costs . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file .


### when appropriate , the commission services may issue a report describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file . ### when appropriate , the commission services shall issue a public report every year describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties such as trade unions and smes shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file . insists that trade unions and smes should have the possibility to submit anti - dumping complaints .


### advise the commission on the technical screening criteria referred to in article 14 , and the possible need to update those criteria ; ### advise the commission on the technical screening criteria referred to in article 14 , especially in order to secure the principle of subsidiarity and within that remit the precautionary principle , and the possible need to update those criteria ;


### to avoid market fragmentation as well as harm to consumer interests due to divergent notions of environmentally sustainable economic activities , national requirements that market actors should comply with when they wish to market financial products or corporate bonds as being environmentally sustainable , should build on the uniform criteria for environmentally sustainable economic activities . those market actors include financial market participants offering “green” financial products and non - financial companies issuing “green” corporate bonds . ### to avoid market fragmentation as well as harm to consumer interests due to divergent notions regarding the degree of environmental sustainability of economic activities , national requirements that market actors should comply with when they wish to market financial products or corporate bonds as defined in this regulation as being environmentally sustainable , should build on the uniform criteria for environmentally sustainable economic activities . those market actors include financial market participants offering sustainable financial products or services and non - financial companies issuing sustainable corporate bonds .


### the minimum safeguards referred to in article 3 shall be procedures implemented by the undertaking that is carrying out an economic activity to ensure that the principles and rights set out in the eight fundamental conventions identified in the international labour organisation’s declaration on fundamental rights and principles at work , namely : the right not to be subjected to forced labour , the freedom of association , workers ' right to organise , the right to collective bargaining , equal remuneration for men and women workers for work of equal value , non - discrimination in opportunity and treatment with respect to employment and occupation , as well as the right not to be subjected to child labour , are observed . ### the minimum safeguards referred to in article 3 shall be procedures implemented by the undertaking that is carrying out an economic activity to ensure that the following are observed : principles and rights set out in the eight fundamental conventions identified in the international labour organisation’s declaration on fundamental rights and principles at work , namely : the right not to be subjected to forced labour , the freedom of association , workers ' right to organise , the right to collective bargaining , equal remuneration for men and women workers for work of equal value , non - discrimination in opportunity and treatment with respect to employment and occupation , as well as the right not to be subjected to child labour ; the un sendai framework for disaster risk reduction 2015 - 2030 ; where relevant and applicable : the foa voluntary guidelines on the responsible governance of tenure of land , fisheries and forests in the context of national food security and the un declaration on the rights of indigenous people .


### improving energy efficiency ; ### improving energy efficiency in line with the energy efficiency directive ;


### experts representing relevant private stakeholders ; ### experts representing national promoting banks and institutions ;


### ' sustainable forest management ' means using forests and forest land in a way , and at a rate , that maintains their biodiversity , productivity , regeneration capacity , vitality and their potential to fulfil , now and in the future , relevant ecological , economic and social functions , at local , national , and global levels , and that does not cause damage to other ecosystems . ### ' sustainable forest management ' means using degraded forests and degraded forest land in a way that maintains and restores their biodiversity , productivity , regeneration capacity , vitality and their potential to fulfil , and deliver at least at equal scale , now and in the future , relevant ecological , economic and social functions , at local , national , and global levels , and that does not cause damage to other ecosystems ;


### this regulation establishes the criteria for determining whether an economic activity is environmentally sustainable for the purposes of establishing the degree of environmental sustainability of an investment . ### this regulation establishes the criteria for determining whether an economic activity is environmentally sustainable for the purposes of establishing the&#160 ; environmental sustainability of a particular investment project , based on its carbon exposure .


### establishing criteria for environmentally sustainable economic activities may encourage firms to disclose on their websites , on a voluntary basis , information on the environmentally sustainable economic activities they carry out . this information will not only help relevant actors in the financial markets to easily identify which firms carry out environmentally sustainable economic activities , but it will also facilitate for these firms to raise funding for their green activities . ### the information on the environmental and social impact of activities will help relevant actors in the financial markets to easily determine the degree of sustainability of the economic activities carried out by firms , also facilitating firms to raise funding for their sustainable activities .


### the application of this regulation should be reviewed regularly in order to assess the progress on the development of technical screening criteria for environmentally sustainable activities , the use of the definition of environmentally sustainable investment , and whether compliance with the obligations requires the establishment of a verification mechanism . the review should include also an assessment of whether the scope of this regulation should be extended to cover social sustainability objectives . ### the application of this regulation should be reviewed regularly and at least after two years in order to assess the progress on the development of technical screening criteria and harmonised indicators for environmentally and socially sustainable activities , the use of the definition of environmentally and socially sustainable investment , and whether compliance with the obligations requires the establishment of a verification mechanism . the first review by 31 december 2021 will also include an assessment of the extended to which , and when , the scope of this regulation could be extended to cover objectives relating to the social aspects of the sustainable developments goals meant to become the eu ' s new long - term development strategy .


### moreover if market participants do not provide any explanation to investors of how the activities they invest in contribute to environmental objectives , or if they use different concepts in their explanation of what is a ‘ sustainable’ economic activity , investors will find it disproportionately burdensome to check and compare these different financial products . it has been found that this discourages investors from investing into green financial products . furthermore , the lack of investor confidence has major detrimental effects on the market for sustainable investment . it has further been shown that national rules or market - based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market . if financial market participants disclose how the financial products they claim are environment - friendly meet environmental objectives , and they use for such disclosures common criteria across the union of what is an environmentally sustainable economic activity , this will help investors compare environment - friendly investment opportunities across borders . investors will invest in green financial products with higher confidence across the union , improving the functioning of the internal market . ### moreover if market participants do not disclose how the activities they invest in contribute negatively or positively to environmental objectives , or if they use different metrics and criteria for determining the impact in their explanation of the degree of environmental sustainability of an economic activity , investors will find it disproportionately burdensome to check and compare different financial products . it has been found that this discourages investors from investing into sustainable financial products . furthermore , the lack of investor confidence has major detrimental effects on the market for sustainable investment . it has further been shown that national rules or market - based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market . if financial market participants disclose how the financial products they claim are environment - friendly meet environmental objectives , and they use for such disclosures common criteria across the union of what is an environmentally sustainable economic activity , this will help investors compare the environmental impact of investment opportunities across borders . investors will invest in green financial products with higher confidence across the union , improving the functioning of the internal market .


### financial market participants offering financial products as environmentally sustainable investments or as investments having similar characteristics . ### financial market participants offering financial products .


### measures adopted by member states or by the union setting out any requirements on market actors in respect of financial products or corporate bonds that are marketed as environmentally sustainable . ### measures adopted by member states or by the union setting out any sustainability - related requirements on market actors in respect of financial products or corporate bonds labelled as environmentally sustainable in order to prevent greenwashing .


### avoiding incineration and disposal of waste ; ### avoiding incineration , disposal and landfilling of waste in line with the waste hierarchy ;


### offering financial products which pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities . national requirements for marketing as sustainable investments financial products and corporate bonds , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation economic operators will find it easier to raise funding for their green activities across borders , as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union . ### offering financial products and services which pursue environmentally sustainable objectives is an effective way of shifting private investments from activities with negative environmental impact into more sustainable activities . national requirements for marketing as sustainable investments financial products , services and corporate bonds , as defined in this regulation , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence and awareness of risks , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria and indicators as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria and indicators will direct investments in an environmentally ineffective , and in some cases counterproductive , manner and lead to unmet environmental and sustainability targets . that absence thus increases costs and creates a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria and indicators for determining the degree of sustainability of an economic activity should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation of information , of metrics and of criteria , economic operators will find it easier to raise funding for their environmentally sustainable activities across borders , as their economic activities can be compared against uniform criteria and indicators in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union .


### measures adopted by member states or by the union setting out any requirements on market actors in respect of financial products or corporate bonds that are marketed as environmentally sustainable . ### measures adopted by member states or by the union setting out any sustainability - related requirements on market actors in respect of financial products or corporate bonds .


### for the purposes of this regulation , an economic activity shall be considered to contribute substantially to healthy ecosystems where that activity contributes substantially to protecting , conserving and enhancing biodiversity and ecosystem services in line with the relevant legislative and non - legislative union instruments , through any of the following means : ### for the purposes of this regulation , an economic activity shall be considered to contribute substantially to biodiversity and healthy ecosystems or the restoration of degraded ecosystems where that activity contributes substantially to protecting , conserving and enhancing or restoring biodiversity and ecosystem services in line with the relevant legislative and non - legislative union instruments , through any of the following means :


### moreover if market participants do not provide any explanation to investors of how the activities they invest in contribute to environmental objectives , or if they use different concepts in their explanation of what is a ‘ sustainable’ economic activity , investors will find it disproportionately burdensome to check and compare these different financial products . it has been found that this discourages investors from investing into green financial products . furthermore , the lack of investor confidence has major detrimental effects on the market for sustainable investment . it has further been shown that national rules or market - based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market . if financial market participants disclose how the financial products they claim are environment - friendly meet environmental objectives , and they use for such disclosures common criteria across the union of what is an environmentally sustainable economic activity , this will help investors compare environment - friendly investment opportunities across borders . investors will invest in green financial products with higher confidence across the union , improving the functioning of the internal market . ### moreover if market participants do not provide any explanation to investors of how the activities they invest in contribute to environmental objectives , or if they use different concepts in their explanation of what is a ‘ sustainable’ economic activity , investors will find it disproportionately burdensome to check and compare these different financial products . it has been found that this discourages investors from investing into green financial products . furthermore , the lack of investor confidence has major detrimental effects on the market for sustainable investment . it has further been shown that national rules or market - based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market . if financial market participants disclose how the financial products they claim are environment - friendly meet environmental objectives , and they use for such disclosures common criteria across the union of what is an environmentally sustainable economic activity , this will help investors compare environment - friendly investment opportunities across borders and will incentivise investee companies to make their business models more sustainable . investors will invest in green financial products with higher confidence across the union , improving the functioning of the internal market .


### in march 2018 , the commission published its action plan ' financing sustainable growth ' 25 setting up an ambitious and comprehensive strategy on sustainable finance . one of the objectives set out in that action plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth . the establishment of a unified classification system for sustainable activities is the most important and urgent action envisaged by the action plan . the action plan recognises that the shift of capital flows towards more sustainable activities has to be underpinned by a shared understanding of what ' sustainable ' means . as a first step , clear guidance on activities qualifying as contributing to environmental objectives , should help inform investors about the investments that fund environmentally sustainable economic activities . further guidance on the activities contributing to other sustainability objectives , including social objectives , may be developed at a later stage . _________________ 25 com 97 final . ### in march 2018 , the commission published its action plan ' financing sustainable growth ' 25 setting up an ambitious and comprehensive strategy on sustainable finance . one of the objectives set out in that action plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth . the establishment of a unified classification system for sustainable activities and of indicators for identifying the degree of sustainability of activities are the most important and urgent action envisaged by the action plan . the action plan recognises that the shift of capital flows towards more sustainable activities has to be underpinned by a shared , holistic understanding of the impact of economic activities and investments in terms of sustainability . as a first step , clear guidance on activities qualifying as contributing to environmental objectives , should help inform investors about the investments that fund environmentally sustainable economic activities . in parallel , further guidance on the activities contributing to social objectives , are developed , recognising that the un sustainable development goals cover all three pillars of sustainability : environmental , social and economic / governance . this also reflects the european council conclusions of 20 june 2017 that confirmed the commitment of the union and the member states to the implementation of the 2030 agenda in full , coherent , comprehensive , integrated and effective manner . _________________ 25 com 97 final .


### circular economy and waste prevention and recycling , where that activity leads to significant inefficiencies in the use of materials in one or more stages of the life - cycle of products , including in terms of durability , reparability , upgradability , reusability or recyclability of products ; or where that activity leads to a significant increase in the generation , incineration or disposal of waste ; ### circular economy and waste prevention and recycling , where that activity leads to significant inefficiencies in the use of materials in one or more stages of the life - cycle of products , including in terms of durability , reparability , upgradability , reusability or recyclability of products ; or where that activity leads to a significant increase in the generation and disposal of waste , including incineration and landfilling , in contrast with article 4 of the directive 2008 / 98 / ce


### given the specific technical details needed to assess the environmental impact of an economic activity and the fast - changing nature of both science and technology , the criteria of environmentally sustainable economic activities should be adapted regularly to those changes . for the criteria to be up to date , based on scientific evidence and input from experts as well as relevant stakeholders , the conditions for substantial contribution and significant harm should be specified with more granularity for different economic activities and should be updated regularly . to that purpose , granular and calibrated technical screening criteria for the different economic activities should be laid down by the commission , on the basis of the technical input of a multi - stakeholders platform on sustainable finance . ### given the specific technical details needed to assess the environmental impact of an economic activity and the fast - changing nature of both science and technology , the criteria relevant for determining the degree of environmental sustainability of economic activities should be adapted regularly to those changes . for the criteria and indicators to be up to date , based on scientific evidence and input from experts as well as relevant stakeholders , the conditions for substantial contribution and significant harm should be specified with more granularity for different economic activities and should be updated regularly . to that purpose , granular and calibrated technical screening criteria and a set of harmonised indicators for the different economic activities should be laid down by the commission , on the basis of the technical input of a multi - stakeholders platform on sustainable finance .


### increasing preparing for re - use and recycling of waste ; ### increasing preparing for re - use and recycling of waste according to the waste hierarchy ;


### in order to specify the requirements set out in this regulation , and particularly to establish and update granular and calibrated technical screening criteria for different economic activities as to what constitutes a substantial contribution and significant harm to the environmental objectives , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the information required to comply with the disclosure obligation set out in article 4 , and the technical screening criteria mentioned in article 6 , article 7 , article 8 , article 9 , article 10 and article 11 . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law - making of 13 april 2016 . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council should receive all documents at the same time as member states’ experts , and the experts of the european parliament and the council should systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts . ### in order to specify the requirements set out in this regulation , and particularly to establish and update granular and calibrated technical screening criteria for different economic activities as to what constitutes a substantial contribution and significant harm to the environmental objectives , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the information required to comply with the disclosure obligation set out in article 4 , and the technical screening criteria mentioned in article 6 , article 7 , article 8 , article 9 , article 10 and article 11 . it is of particular importance that the commission carry out appropriate public consultations during its preparatory work , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law - making of 13 april 2016 . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council should receive all documents at the same time as member states’ experts , and the experts of the european parliament and the council should systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts .


### the use of the definition of environmentally sustainable investment in union law , and at member state level , including the appropriateness of setting up verification mechanism of compliance with the criteria set out in this regulation . ### the use of the definition of environmentally sustainable investment and investments with negative environmental impact in union law , and at member state level , including the appropriateness of setting up verification mechanism of compliance with the criteria based on indicators set out in this regulation .


### the application of this regulation should be reviewed regularly in order to assess the progress on the development of technical screening criteria for environmentally sustainable activities , the use of the definition of environmentally sustainable investment , and whether compliance with the obligations requires the establishment of a verification mechanism . the review should include also an assessment of whether the scope of this regulation should be extended to cover social sustainability objectives . ### the application of this regulation should be reviewed regularly and at least after three years in order to assess the progress on the development of technical screening criteria and harmonised indicators for environmentally sustainable activities , the use of the definition of environmentally sustainable investment or investments having a negative environmental impact , and whether compliance with the obligations requires the establishment of a verification mechanism . the review should include also an assessment of the provisions required for extending the scope of this regulation to cover social sustainability objectives .


### advise the commission on the possible need to amend this regulation . ### advise the commission on the possible need to amend this regulation , especially concerning the necessity of establishing a union classification of environmentally sustainable economic activities and investments in order to counter incentives to lower national implementation of the criteria .


### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices . the platform should also advise the commission on whether the technical screening criteria are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment . ### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities , the european investment bank and national promotional banks and institutions . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices . the platform should also advise the commission on whether the technical screening criteria are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment .


### the application of this regulation should be reviewed regularly in order to assess the progress on the development of technical screening criteria for environmentally sustainable activities , the use of the definition of environmentally sustainable investment , and whether compliance with the obligations requires the establishment of a verification mechanism . the review should include also an assessment of whether the scope of this regulation should be extended to cover social sustainability objectives . ### the application of this regulation should be reviewed regularly in order to assess the progress on the development of technical screening criteria for environmentally and socially sustainable activities , the use of the definition of environmentally and socially sustainable investment , and whether compliance with the obligations requires the establishment of a verification mechanism .


### for the purposes of this regulation , the following shall be environmental objectives : ### for the purposes of this regulation , the following shall be environmental and social objectives :


### ' sustainable forest management ' means using forests and forest land in a way , and at a rate , that maintains their biodiversity , productivity , regeneration capacity , vitality and their potential to fulfil , now and in the future , relevant ecological , economic and social functions , at local , national , and global levels , and that does not cause damage to other ecosystems . ### ' sustainable forest management ' means using degraded forests and degraded forest land in a way that maintains and restores their biodiversity , productivity , regeneration capacity , vitality and their potential to fulfil , and deliver at least at equal scale , now and in the future , relevant ecological , economic and social functions , at local , national , and global levels , and that does not cause damage to other ecosystems ;


### avoiding incineration and disposal of waste ; ### avoiding incineration , disposal and landfilling of waste in line with the waste hierarchy ;


### the progress on the implementation of this regulation with regard to the development of technical screening criteria for environmentally sustainable economic activities ; ### the progress on the implementation of this regulation with regard to the development of technical screening criteria for environmentally sustainable economic activities , especially how the principle of subsidiarity and the division of competences between the union and member states has been respected ;


### be qualitative or quantitative , or both , and contain thresholds where possible ; ### be qualitative or quantitative , or both , and contain thresholds where possible , taking into account the overall benefits in terms of environmental and social sustainability ;


### in march 2018 , the commission published its action plan ' financing sustainable growth ' 25 setting up an ambitious and comprehensive strategy on sustainable finance . one of the objectives set out in that action plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth . the establishment of a unified classification system for sustainable activities is the most important and urgent action envisaged by the action plan . the action plan recognises that the shift of capital flows towards more sustainable activities has to be underpinned by a shared understanding of what ' sustainable ' means . as a first step , clear guidance on activities qualifying as contributing to environmental objectives , should help inform investors about the investments that fund environmentally sustainable economic activities . further guidance on the activities contributing to other sustainability objectives , including social objectives , may be developed at a later stage . _________________ 25 com 97 final . ### in march 2018 , the commission published its action plan ' financing sustainable growth ' 25 setting up an ambitious and comprehensive strategy on sustainable finance . one of the objectives set out in that action plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth . the establishment of a unified classification system for sustainable activities is the most important and urgent action envisaged by the action plan . the action plan recognises that the shift of capital flows towards more sustainable activities has to be underpinned by a shared understanding of what ' sustainable ' means . as a first step , clear guidance on activities qualifying as contributing to environmental objectives , should help inform investors about the investments that fund environmentally sustainable economic activities . further guidance on the activities contributing to other sustainability objectives , including social objectives , should be developed in parallel . _________________ 25 com 97 final .


### in march 2018 , the commission published its action plan ' financing sustainable growth ' 25 setting up an ambitious and comprehensive strategy on sustainable finance . one of the objectives set out in that action plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth . the establishment of a unified classification system for sustainable activities is the most important and urgent action envisaged by the action plan . the action plan recognises that the shift of capital flows towards more sustainable activities has to be underpinned by a shared understanding of what ' sustainable ' means . as a first step , clear guidance on activities qualifying as contributing to environmental objectives , should help inform investors about the investments that fund environmentally sustainable economic activities . further guidance on the activities contributing to other sustainability objectives , including social objectives , may be developed at a later stage . _________________ 25 com 97 final . ### in march 2018 , the commission published its action plan ' financing sustainable growth ' 25 setting up an ambitious and comprehensive strategy on sustainable finance . one of the objectives set out in that action plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth . the establishment of a unified classification system and of indicators for identifying sustainable activities are the most important and urgent actions envisaged by the action plan . the action plan recognises that the shift of capital flows towards more sustainable activities has to be underpinned by a shared , holistic understanding of economic activities and investments on environmental and social sustainability and resource efficiency . as a first step , clear guidance on activities qualifying as contributing to environmental objectives , should help inform investors about the investments that sustainable economic activities . further guidance on the activities contributing to other sustainability objectives , including social objectives , may be developed at a later stage . _________________ 25 com 97 final .


### the minimum safeguards referred to in article 3 shall be procedures implemented by the undertaking that is carrying out an economic activity to ensure that the principles and rights set out in the eight fundamental conventions identified in the international labour organisation’s declaration on fundamental rights and principles at work , namely : the right not to be subjected to forced labour , the freedom of association , workers ' right to organise , the right to collective bargaining , equal remuneration for men and women workers for work of equal value , non - discrimination in opportunity and treatment with respect to employment and occupation , as well as the right not to be subjected to child labour , are observed . ### the minimum safeguards referred to in article 3 shall be procedures implemented by the undertaking that is carrying out an economic activity , to ensure at least the following :


### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices . the platform should also advise the commission on whether the technical screening criteria are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment . ### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria and the harmonised indicators should also involve relevant stakeholders and build on scientific evidence , best practice and the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria and the harmonised indicators , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria based on harmonised indicators were considered as sustainable assets or assets having a negative environmental impact under existing market practices . the platform should also advise the commission on whether the technical screening criteria and indicators are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment .


### an economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings . the technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives . when establishing and updating the technical screening criteria , the commission should ensure that those criteria are based on available scientific evidence and are updated regularly . where scientific evaluation does not allow for the risk to be determined with sufficient certainty , the precautionary principle should apply , in line with article 191 tfeu . ### an economic activity should not be considered environmentally sustainable if it does not bring about a net benefit to the environment . the technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives . when establishing and updating the technical screening criteria , the commission should ensure that those criteria are based on available scientific evidence and are updated regularly . where scientific evaluation does not allow for the risk to be determined with sufficient certainty , the precautionary principle should apply , in line with article 191 tfeu .