### (24) the need for the union to improve its energy efficiency should be expressed in primary and final energy consumption , to be achieved in 2030 , indicating additional level of efforts required when compared to the measures in place or planned measures in the national energy and climate plans. the 2020 reference scenario projects 864 mtoe of final energy consumption and 1124 mtoe of primary energy consumption to be reached in 2030 (excluding ambient heat and including international aviation). an additional reduction of 9% results in 787 mtoe and 1023 mtoe in 2030 respectively. compared to 2005 levels , it means that final energy consumption in the union should be reduced by some 23% and primary energy consumption should be reduced by some 32%. there are no binding targets at member state level in the 2020 and 2030 perspective , and member states should establish their contributions to the achievement of the union’s energy efficiency target taking into account the formula provided in this directive. member states should be free to set their national objectives based either on primary or final energy consumption or primary or final energy savings , or on energy intensity. this directive amends the way how member states should express their national contributions to the union´s target. member states’ contributions to the union’s target should be expressed in final and primary energy consumption to ensure consistency and monitoring of progress. a regular evaluation of progress towards the achievement of the union's 2030 targets is necessary and is provided for in regulation (eu) 2018/1999. ### (24) the need for the union to improve its energy efficiency should be expressed in primary and final energy consumption , to be achieved in 2030 , indicating additional level of efforts required when compared to the measures in place or planned measures in the national energy and climate plans. the 2020 reference scenario projects 864 mtoe of final energy consumption and 1124 mtoe of primary energy consumption to be reached in 2030 (excluding ambient heat and including international aviation). an additional reduction of 19% results in 700 mtoe and 911 mtoe in 2030 respectively. this corresponds to a reduction of 43% for final and 45.5% for primary energy consumption respectively when compared to the 2007 reference scenario projections for 2030. there are no binding targets at member state level in the 2020. for the 2030 target , national contributions should become binding and member states should establish their contributions to the achievement of the union’s energy efficiency target taking into account the formula provided in this directive. member states should be free to set their national objectives based either on primary or final energy consumption or primary or final energy savings , or on energy intensity. this directive amends the way how member states should express their binding national contributions to the union´s binding target. member states’ binding contributions to the union’s target should be expressed in final and primary energy consumption to ensure consistency and monitoring of progress. a regular evaluation of progress towards the achievement of the union's 2030 targets is necessary and is provided for in regulation (eu) 2018/1999.


### (27) to lead by example , the public sector should set its own decarbonisation and energy efficiency goals. energy efficiency improvements in the public sector should reflect the efforts required at union level. to comply with the final energy consumption target , the union should decrease its final energy consumption by 19% by 2030 as compared to the average energy consumption in years 2017 , 2018 and 2019. an obligation to achieve an annual reduction of the energy consumption in the public sector by at least 1 ,7% should ensure that the public sector fulfils its exemplary role. member states retain full flexibility regarding the choice of energy efficiency improvement measures to achieve a reduction of the final energy consumption. requiring an annual reduction of final energy consumption has a lower administrative burden than establishing measurement methods for energy savings. ### (27) to lead by example , the public sector should set its own decarbonisation and energy efficiency goals. energy efficiency improvements in the public sector should reflect the efforts required at union level. an obligation to achieve an annual reduction of the energy consumption in the public sector by at least 2% should ensure that the public sector fulfils its exemplary role. member states retain full flexibility regarding the choice of energy efficiency improvement measures to achieve a reduction of the final energy consumption. requiring an annual reduction of final energy consumption has a lower administrative burden than establishing measurement methods for energy savings.


### (32) buildings and transport , alongside industry , are the main energy users and main source of emissions.61 buildings are responsible for about 40% of the union’s total energy consumption and for 36% of its ghg from energy.62 the commission communication entitled renovation wave63 addresses the twin challenge of energy and resource efficiency and affordability in the building sector and aims at doubling the renovation rate. it focusses on the worst performing buildings , energy poverty and on public buildings. moreover , buildings are crucial to achieving the union objective of reaching climate neutrality by 2050. buildings owned by public bodies account for a considerable share of the building stock and have high visibility in public life. it is therefore appropriate to set an annual rate of renovation of buildings owned by public bodies on the territory of a member state to upgrade their energy performance. member states are invited to set a higher renovation rate , where that is cost-effective in the framework of the renovation of their buildings stock in conformity with their long term renovation strategies or national renovation programmes. that renovation rate should be without prejudice to the obligations with regard to nearly-zero energy buildings (nzebs) set in directive 2010/31/eu of the european parliament and of the council.64 during the next review of directive 2010/31/eu , the commission should assess the progress member states achieved regarding the renovation of public bodies’ buildings. the commission should consider submitting a legislative proposal to revise the renovation rate , while taking into account the progress achieved by the member states , substantial economic or technical developments , or where needed , the union´s commitments for decarbonisation and zero pollution. the obligation to renovate public bodies’ buildings in this directive complements that directive , which requires member states to ensure that when existing buildings undergo major renovation their energy performance is upgraded so that they meet the requirements on nzebs. ### (32) buildings and transport , alongside industry , are the main energy users and main source of emissions.61 buildings are responsible for about 40% of the union’s total energy consumption and for 36% of its ghg from energy.62 the commission communication entitled renovation wave63 addresses the twin challenge of energy and resource efficiency and affordability in the building sector and aims at doubling the renovation rate. it focusses on the worst performing buildings , energy poverty and on public buildings. moreover , buildings are crucial to achieving the union objective of reaching climate neutrality by 2050. the renovation of buildings should combine public and private buildings. in private residential buildings , the renovation wave should prioritise those areas of vulnerability and energy poverty that have been identified following the completion of the proposed audit of the eu building stock. it is therefore appropriate to set an annual rate of renovation of buildings owned by public and private bodies on the territory of a member state to upgrade their energy performance. member states are invited to set a higher renovation rate , where that is cost-effective in the framework of the renovation of their buildings stock in conformity with their long term renovation strategies or national renovation programmes. that renovation rate should be without prejudice to the obligations with regard to nearly-zero energy buildings (nzebs) set in directive 2010/31/eu of the european parliament and of the council.64 during the next review of directive 2010/31/eu , the commission should assess the progress member states achieved regarding the renovation of public bodies’ buildings. the commission should consider submitting a legislative proposal to revise the renovation rate , while taking into account the progress achieved by the member states , substantial economic or technical developments , or where needed , the union´s commitments for decarbonisation and zero pollution. the obligation to renovate public bodies’ buildings in this directive complements that directive , which requires member states to ensure that when existing buildings undergo major renovation their energy performance is upgraded so that they meet the requirements on nzebs.


### (32) buildings and transport , alongside industry , are the main energy users and main source of emissions.61 buildings are responsible for about 40% of the union’s total energy consumption and for 36% of its ghg from energy.62 the commission communication entitled renovation wave63 addresses the twin challenge of energy and resource efficiency and affordability in the building sector and aims at doubling the renovation rate. it focusses on the worst performing buildings , energy poverty and on public buildings. moreover , buildings are crucial to achieving the union objective of reaching climate neutrality by 2050. buildings owned by public bodies account for a considerable share of the building stock and have high visibility in public life. it is therefore appropriate to set an annual rate of renovation of buildings owned by public bodies on the territory of a member state to upgrade their energy performance. member states are invited to set a higher renovation rate , where that is cost-effective in the framework of the renovation of their buildings stock in conformity with their long term renovation strategies or national renovation programmes. that renovation rate should be without prejudice to the obligations with regard to nearly-zero energy buildings (nzebs) set in directive 2010/31/eu of the european parliament and of the council.64 during the next review of directive 2010/31/eu , the commission should assess the progress member states achieved regarding the renovation of public bodies’ buildings. the commission should consider submitting a legislative proposal to revise the renovation rate , while taking into account the progress achieved by the member states , substantial economic or technical developments , or where needed , the union´s commitments for decarbonisation and zero pollution. the obligation to renovate public bodies’ buildings in this directive complements that directive , which requires member states to ensure that when existing buildings undergo major renovation their energy performance is upgraded so that they meet the requirements on nzebs. ### (32) buildings and transport , alongside industry , are the main energy users and main source of emissions.61 buildings are responsible for about 40% of the union’s total energy consumption and for 36% of its ghg from energy.62 the commission communication entitled renovation wave63 addresses the twin challenge of energy and resource efficiency and affordability in the building sector and aims at doubling the renovation rate. it focusses on the worst performing buildings , energy poverty and on public buildings. moreover , buildings are crucial to achieving the union objective of reaching climate neutrality by 2050. buildings owned by public bodies account for a considerable share of the building stock and have high visibility in public life. it is therefore appropriate to set an annual rate of deep renovation of buildings owned by public bodies on the territory of a member state to upgrade their energy performance. member states are invited to set a higher renovation rate , where that is cost-effective in the framework of the renovation of their buildings stock in conformity with their long term renovation strategies or national renovation programmes. that renovation rate should be without prejudice to the obligations with regard to nearly-zero energy buildings (nzebs) set in directive 2010/31/eu of the european parliament and of the council.64 during the next review of directive 2010/31/eu , the commission should assess the progress member states achieved regarding the renovation of public bodies’ buildings. the commission should consider submitting a legislative proposal to revise the renovation rate , while taking into account the progress achieved by the member states , substantial economic or technical developments , or where needed , the union´s commitments for decarbonisation and zero pollution. the obligation to deeply renovate public bodies’ buildings in this directive complements that directive , which requires member states to ensure that when existing buildings undergo significant renovation their energy performance is upgraded so that they meet the requirements on nzebs.


### (33) to set the rate of renovations , member states need to have an overview of the buildings that do not reach the nzeb level. therefore , member states should publish and keep updated an inventory of public buildings as part of an overall database of energy performance certificates. that inventory should enable also private actors including energy service companies to propose renovation solutions and they can be aggregated by the union building stock observatory. ### (33) to set the rate of renovations , member states need to have an overview of the buildings that do not reach the nzeb level. to this aim , the ec should promote an audit of the energy efficiency of the eu building stock in order to be able to identify the focal points where the first efforts to renovate buildings should be focused. therefore , member states should publish and keep updated an inventory of public buildings as part of an overall database of energy performance certificates. that inventory should enable also private actors including energy service companies to propose renovation solutions and they can be aggregated by the union building stock observatory.


### (34) in 2020 , more than half of the world’s population lives in urban areas. that figure is expected to reach 68% by 205065 . in addition , half of the urban infrastructures by 2050 are still to be built66 . cities and metropolitan areas are centres of economic activity , knowledge generation , innovation and new technologies. cities influence the quality of life of the citizens who live or work in them. member states should support municipalities technically and financially. a number of municipalities and other public bodies in the member states have already put into place integrated approaches to energy saving and energy supply , for example via sustainable energy action plans , such as those developed under the covenant of mayors initiative , and integrated urban approaches which go beyond individual interventions in buildings or transport modes. ### (34) in 2020 , more than half of the world’s population lives in urban areas. that figure is expected to reach 68% by 205065 . in addition , half of the urban infrastructures by 2050 are still to be built66. green and blue infrastructure can contribute to the achievement of energy efficient targets and to more energy efficient performance of buildings. green roofs can reduce the energy required for heating and cooling and contribute to biodiversity in urban areas creating important synergies and providing broad array of social services.1a cities and metropolitan areas are centres of economic activity , knowledge generation , innovation and new technologies. cities influence the quality of life of the citizens who live or work in them. member states should support municipalities technically and financially. a number of municipalities and other public bodies in the member states have already put into place integrated approaches to energy saving and energy supply , for example via sustainable energy action plans , such as those developed under the covenant of mayors initiative , and integrated urban approaches which go beyond individual interventions in buildings or transport modes.


### (45) the energy savings obligation established by this directive should be increased and should also apply after 2030 . that ensures stability for investors and thus encourage long-term investments and long-term energy efficiency measures , such as the deep renovation of buildings with the long-term objective of facilitating the cost effective transformation of existing buildings into nzebs. the energy savings obligation has an important role in the creation of local growth , jobs , competitiveness and alleviating energy poverty. it should ensure that the union can achieve its energy and climate objectives by creating further opportunities and to break the link between energy consumption and growth. cooperation with the private sector is important to assess the conditions on which private investment for energy efficiency projects can be unlocked and to develop new revenue models for innovation in the field of energy efficiency. ### (45) the energy savings obligation established by this directive should be increased and should also apply after 2030 . that ensures stability for investors and thus encourage long-term investments and long-term energy efficiency measures , such as the deep renovation of buildings with the long-term objective of facilitating the cost effective transformation of existing buildings into nzebs. deep renovations that improve the energy performance of a building by at least 60% are currently annually carried out only in 0.2% of the building stock , and in only a fifth of the cases , energy efficiency is significantly improved. the energy savings obligation has an important role in the creation of local growth , jobs , competitiveness and alleviating energy poverty. it should ensure that the union can achieve its energy and climate objectives by creating further opportunities and to break the link between energy consumption and growth. cooperation with the private sector is important to assess the conditions on which private investment for energy efficiency projects can be unlocked and to develop new revenue models for innovation in the field of energy efficiency.


### (46) energy efficiency improvement measures also have a positive impact on air quality , as more energy efficient buildings contribute to reducing the demand for heating fuels , including solid heating fuels. energy efficiency measures therefore contribute to improving indoor and outdoor air quality and help achieve , in a cost effective manner , the objectives of the union's air quality policy , as established in particular by directive (eu) 2016/2284 of the european parliament and of the council70 . ### (46) energy efficiency improvement measures also have a positive impact on air quality , as more energy efficient buildings contribute to reducing the demand for heating fuels , including solid heating fuels. energy efficiency measures therefore contribute to improving indoor and outdoor air quality and help achieve , in a cost effective manner , the objectives of the union's air quality policy , as established in particular by directive (eu) 2016/2284 of the european parliament and of the council70. energy efficiency improvement measures pursuant to this directive should also include a strategy to reduce the use of solid fuels and reduce indoor and outdoor pollution. exposure reduction targets should be implemented at local and regional level where the use of solid heating fuels is part of the local or regional energy mix. air pollution reduction measures pursuant to article 23 should be implemented based on the assessment of real indoor and outdoor air quality measurements.


### (47) member states are required to achieve cumulative end-use energy savings for the entire obligation period up to 2030 , equivalent to new annual savings of at least 0 ,8% of final energy consumption up to 31 december 2023 and of at least 1 ,5% as of 1 january 2024 . that requirement could be met by new policy measures that are adopted during the obligation period from 1 january 2021 to 31 december 2030 or by new individual actions as a result of policy measures adopted during or before the previous period , provided that the individual actions that trigger energy savings are introduced during the following period. to that end , member states should be able to make use of an energy efficiency obligation scheme , alternative policy measures , or both. ### (47) member states are required to achieve cumulative end-use energy savings for the entire obligation period up to 2030 , equivalent to new annual savings of at least 0 ,8% of final energy consumption up to 31 december 2023 and of at least 2% as of 1 january 2024 . that requirement could be met by new policy measures that are adopted during the obligation period from 1 january 2021 to 31 december 2030 or by new individual actions as a result of policy measures adopted during or before the previous period , provided that the individual actions that trigger energy savings are introduced during the following period. to that end , member states should be able to make use of an energy efficiency obligation scheme , alternative policy measures , or both.


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


### (60) in accordance with article 9 of the treaty , the union's energy efficiency policies should be inclusive and should therefore ensure equal access to energy efficiency measures for all consumers affected by energy poverty. improvements in energy efficiency should , be implemented as a priority among vulnerable customers and final users , people affected by energy poverty , and , where appropriate , among medium-income households and people living in social housing , elderly people and those living in rural and remote areas . in this context , specific attention should be paid to particular groups which are more at risk of being affected by energy poverty or more susceptible to the adverse impacts of energy poverty , such as women , persons with disabilities , elderly people , children , and persons with a minority racial or ethnic background. member states can require obligated parties to include social aims in energy-saving measures in relation to energy poverty and this possibility had already been extended to alternative policy measures and energy efficiency national funds. that should be transformed into an obligation to protect and empower vulnerable customers and final users and to alleviate energy poverty , while allowing member states to retain full flexibility with regard to the type of policy measure , their size , scope and content. if an energy efficiency obligation scheme does not permit measures relating to individual energy consumers , the member state may take measures to alleviate energy poverty by means of alternative policy measures alone. within its policy mix , member states should ensure that other policy measures do not have an adverse effect on vulnerable customers , final users , people affected by energy poverty and , where applicable , people living in social housing. member states should make best possible use of public funding investments into energy efficiency improvement measures , including funding and financial facilities established at union level. ### (60) in accordance with article 9 of the treaty , the union's energy efficiency policies should be inclusive and should therefore ensure equal access to energy efficiency measures for all consumers affected by energy poverty. improvements in energy efficiency should , be implemented as a priority among vulnerable customers and final users , people affected by energy poverty , and , where appropriate , among medium-income and low-income households and people living in social housing , elderly people and those living in rural and remote areas . in this context , specific attention should be paid to particular groups which are more at risk of being affected by energy poverty or more susceptible to the adverse impacts of energy poverty , such as women , persons with disabilities , elderly people , children , and persons with a minority racial or ethnic background. member states can require obligated parties to include social aims in energy-saving measures in relation to energy poverty and this possibility had already been extended to alternative policy measures and energy efficiency national funds. that should be transformed into an obligation to protect and empower vulnerable customers and final users and to alleviate energy poverty , while allowing member states to retain full flexibility with regard to the type of policy measure , their size , scope and content. if an energy efficiency obligation scheme does not permit measures relating to individual energy consumers , the member state may take measures to alleviate energy poverty by means of alternative policy measures alone. within its policy mix , member states should ensure that other policy measures do not have an adverse effect on vulnerable customers , final users , people affected by energy poverty and , where applicable , people living in social housing. member states should make best possible use of public funding investments into energy efficiency improvement measures , including funding and financial facilities established at union level.


### (66) the information and communications technology (ict) sector another important sector which receives increasing attention. in 2018 the energy consumption of data centres in the eu was 76 ,8 twh. this is expected to rise to 98.5 twh by 2030 , a 28% increase. this increase in absolute terms can as well be seen in relative terms: within the eu , data centres accounted for 2 ,7% of electricity demand in 2018 and will reach 3 ,21% by 2030 if development continues on the current trajectory75 . europe’s digital strategy already highlighted the need for highly energy-efficient and sustainable data centres and calls for transparency measures for telecommunication operators on their environmental footprint. to promote sustainable development in the ict sector , particularly of data centres , member states should collect and publish data , which is relevant for the energy performance and water footprint of data centres. member states should collect and publish data only about data centres with a significant footprint , for which appropriate design or efficiency interventions , for new or existing installations respectively , can result in a considerable reduction of the energy and water consumption or in the reuse of waste heat in nearby facilities and heat networks. a data centre sustainability indicator can be established on the basis of that data collected ### (66) the information and communications technology (ict) sector another important sector which receives increasing attention. in 2018 the energy consumption of data centres in the eu was 76 ,8 twh. this is expected to rise to 98.5 twh by 2030 , a 28% increase. this increase in absolute terms can as well be seen in relative terms: within the eu , data centres accounted for 2 ,7% of electricity demand in 2018 and will reach 3 ,21% by 2030 if development continues on the current trajectory75 . europe’s digital strategy already highlighted the need for highly energy-efficient and sustainable data centres and calls for transparency measures for telecommunication operators on their environmental footprint. to promote sustainable development in the ict sector , particularly of data centres , member states should collect and publish data based on common european standardised framework which is relevant for the energy performance and water footprint of data centres. member states should collect and publish data only about data centres with an installed it power demand equal to or greater than 100 kw , for which appropriate design or efficiency interventions , for new or existing installations respectively , can result in a considerable reduction of the energy and water consumption or in the reuse of waste heat in nearby facilities and heat networks. a data centre sustainability indicator can be established on the basis of that data collected


### (67) the data centre sustainability indicators can be used to measure four basic dimensions of a sustainable data centre , namely how efficiently it uses energy , how much of that energy comes from renewable energy sources , the reuse of any waste heat that it produces and the usage of freshwater. the data centre sustainability indicators should raise awareness amongst data centre owners and operators , manufactures of equipment , developers of software and services , users of data centre services at all levels as well as entities and organisations that deploy , use or procure cloud and data centre services. it should also give confidence about the actual improvements following efforts and measures to increase the sustainability in new or existing data centres. finally , it should be used as a basis for transparent and evidence-based planning and decision-making. use of the data centre sustainability indicators should be optional for member states. use of the data centre sustainability indicator should be optional for member states. ### (67) the data centre sustainability indicators can be used to measure four basic dimensions of a sustainable data centre , namely how efficiently it uses energy , how much of that energy comes from renewable energy sources , the reuse of any waste heat that it produces and the usage of freshwater. the data centre sustainability indicators should raise awareness amongst data centre owners and operators , manufactures of equipment , developers of software and services , users of data centre services at all levels as well as entities and organisations that deploy , use or procure cloud and data centre services. it should also give confidence about the actual improvements following efforts and measures to increase the sustainability in new or existing data centres. finally , it should be used as a basis for transparent and evidence-based planning and decision-making. use of the data centre sustainability indicators should be optional for member states. use of the data centre sustainability indicator should be mandatory for member states.


### (72) taking advantage of new business models and technologies , member states should endeavour to promote and facilitate the uptake of energy efficiency measures , including through innovative energy services for large and small customers. ### (72) taking advantage of new business models and technologies , member states should endeavour to promote and facilitate the uptake of energy efficiency measures , including through innovative energy services for large and small customers. the capacity to innovate and evolve as a “first mover” , especially in the area of energy efficiency and climate change , provides the european industry and society with an important competitive advantage.


### (91) greater consumer protection should be guaranteed by the availability of effective , independent out-of-court dispute settlement mechanisms for all consumers , such as an energy ombudsperson , a consumer body or a regulatory authority. member states should , therefore , introduce speedy and effective complaint-handling procedures. ### (91) greater consumer protection should be guaranteed by the availability of effective , independent out-of-court dispute settlement mechanisms for all consumers , such as an energy ombudsperson including for vulnerable customers , a consumer body or a regulatory authority. member states should , therefore , introduce speedy and effective complaint-handling procedures.


### (95) a fair transition towards a climate-neutral union by 2050 is central to the european green deal. the european pillar of social rights , jointly proclaimed by the european parliament , the council and the commission on 17 november 2017 , includes energy among the essential services which everyone is entitled to access. support for access to such services must be available for those in need81 . ### (95) a fair transition towards a climate-neutral union by 2050 is central to the european green deal. the european pillar of social rights , jointly proclaimed by the european parliament , the council and the commission on 17 november 2017 , includes energy among the essential services which everyone is entitled to access. support for access to such services must be available for those in need81. the realisation of principles of just transition depend also on the actions re-affirmed during the porto summit. 81a


### this directive lays down rules designed to implement energy efficiency as a priority across all sectors , remove barriers in the energy market and overcome market failures that impede efficiency in the supply and use of energy. it also provides for the establishment of indicative national energy efficiency contributions for 2030. ### this directive lays down rules designed to implement energy efficiency as a priority across all sectors , remove barriers in the energy market and overcome market failures that impede efficiency in the supply and use of energy. it also provides for the establishment of indicative national energy efficiency contributions for 2030 in order to reduce energy dependence and to reach climate neutrality by 2050 at the latest and the 2030 climate targets as set in the regulation (eu) 2021/1119.


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


### (45) ‘data centre’ means a structure , or group of structures , with the purpose of centralized accommodation , interconnection and operation of information technology and network telecommunications equipment providing data storage , processing and transport services together with all the facilities and infrastructures for power distribution and environmental control and the necessary levels of resilience and security required to provide the desired service availability; ### (45) ‘data centre’ means a structure , or group of structures , with the purpose of centralized accommodation , interconnection and transparent operation of information technology and network telecommunications equipment providing data storage , processing and transport services together with all the facilities and infrastructures for power distribution and environmental control and the necessary levels of resilience and security required to provide the desired service availability;


### (48) ‘energy poverty’ means a household’s lack of access to essential energy services that underpin a decent standard of living and health , including adequate warmth , cooling , lighting , and energy to power appliances , in the relevant national context , existing social policy and other relevant policies; ### (48) 'energy poverty’ means a household’s inability due to non-affordability , to meet its basic energy supply needs and lack of access to essential energy services needed to guarantee basic levels of comfort and health , a decent standard of living , including adequate heating and cooling , lighting , and energy to power appliances , in the relevant national context , existing social policy and other relevant policies , as a result of insufficient disposable income.


### a) implement energy efficiency improvement measures to mitigate distributional effects from other policies and measures , such as taxation measures implemented according to article 10 of this directive , or the application of emission trading in the buildings and transport sector according to the ets directive [com(2021) 551 final , 2021/0211 (cod)]; ### a) implement energy efficiency improvement measures to mitigate distributional effects from other policies and measures , such as taxation measures implemented according to article 10 of this directive , or the application of carbon pricing systems;


### member states may entrust the same network of experts: ### member states shall entrust the same network of experts:


### be based on the information and data provided in the comprehensive assessments carried out pursuant to paragraph 1 and provide an estimate and mapping of the potential for increasing energy efficiency , including via waste heat recovery , and renewable energy in heating and cooling in that particular area; ### be based on the information and data provided in the comprehensive assessments carried out pursuant to paragraph 1 and provide an estimate and mapping of the potential for increasing energy efficiency , including via high-efficiency cogeneration , waste heat recovery , and renewable energy in heating and cooling in that particular area;


### member states shall ensure that the public is given the opportunity to participate the preparation of heating and cooling plans , the comprehensive assessment and the policies and measures. ### member states shall ensure that the public , including relevant heat and electricity stakeholders , is given the opportunity to participate the preparation of heating and cooling plans , the comprehensive assessment and the policies and measures.


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


### b. from 1 january 2026 , a system using at least 50% renewable energy , 50% waste heat , 80% of high-efficiency cogenerated heat or at least a combination of such thermal energy going into the network where the share of renewable energy is at least 5% and the total share of renewable energy , waste heat or high-efficiency cogenerated heat is at least 50%; ### b. from 1 january 2026 , a system using at least 50% renewable energy , 50% waste heat , 75% of cogenerated heat or at least a combination of such thermal energy going into the network where the share of renewable energy is at least 5% and the total share of renewable energy , waste heat or high-efficiency cogenerated heat is at least 50%;


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


### c. from 1 january 2035 , a system using at least 50% renewable energy and waste heat , where the share of renewable energy is at least 20%; ### c. from 1 january 2035 , a system using at least 50% renewable energy and waste heat , where the share of renewable energy is at least 20% or a system using at least 75% of high efficiency cogenerated heat and renewable energy , where the share of renewable energy is at least 10%;


### c. from 1 january 2035 , a system using at least 50% renewable energy and waste heat , where the share of renewable energy is at least 20%; ### c. from 1 january 2035 , a system using at least 50% renewable energy and waste heat , where the share of renewable energy is at least 25%;


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


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


### d. from 1 january 2045 , a system using at least 75 % renewable energy and waste heat , where the share of renewable energy is at least 40%; ### d. from 1 january 2045 , a system using at least 75 % renewable energy and waste heat , where the share of renewable energy is at least 45%;


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


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


### e. from 1 january 2050 , a system using only renewable energy and waste heat , where the share of renewable energy is at least 60%. ### e. from 1 january 2050 , a system using only renewable energy and waste heat , where the share of renewable energy is at least 65%.


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


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


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


### a data centre with a total rated energy input exceeding 1 mw level , to assess the cost and benefits of utilising the waste heat to satisfy economically justified demand , and of the connection of that installation to a district heating network or an efficient/res-based district cooling system. the analysis shall consider cooling system solutions that allow removing or capturing the waste heat at useful temperature level with minimal ancillary energy inputs. ### a data centre with a total rated energy input exceeding 1 mw level , to assess the cost and benefits of utilising the waste heat to satisfy economically justified demand for local reuse of waste heat. the analysis shall consider cooling system solutions that allow removing or capturing the waste heat at useful temperature level with minimal ancillary energy inputs and connection of installation to a district heating network or any other projects economically feasible where waste heat could be reused.


### data centres whose waste heat is or will be used in a district heating network or directly for space heating , domestic hot water preparation or other uses in the building or group of buildings where it is located. ### data centres whose waste heat is or will be used in a district heating network or directly for space heating , domestic hot water preparation or other uses in the building or group of buildings where it is located or other uses in the locality around the data centre.


### 2. member states shall ensure that gas and electricity transmission and distribution system operators apply the energy efficiency first principle in accordance with article 3 of this directive in their network planning , network development and investment decisions. while taking security of supply and market integration into account , member states shall ensure that transmission system operators and distribution system operators do not invest in stranded assets to contribute to climate change mitigation. national regulatory authorities shall provide methodologies and guidance on how to assess alternatives in the cost-benefit analysis , taking into account wider benefits , and verify the implementation of the energy efficiency first principle by the transmission system operators or distribution system operators when approving , verifying or monitoring the projects submitted by the transmission system operators or distribution system operators. ### 2. member states shall ensure that gas and electricity transmission and distribution network operators apply the energy and system efficiency first principle in accordance with article 3 of this directive in their network planning , network development and investment decisions. while taking security of supply and market integration into account , member states shall ensure that transmission system operators and distribution system operators do invest in future proof assets to contribute to climate change mitigation. national regulatory authorities should provide methodologies and guidance on how to assess alternatives in the cost-benefit analysis , taking into account wider benefits such as security of supply and affordability of energy , and verify the implementation of the energy efficiency first principle by the transmission system operators or distribution system operators when approving , verifying or monitoring the projects submitted by the transmission system operators or distribution system operators.


### 4. member states shall assess by 31 december 2024 and every four years thereafter whether the schemes ensure the necessary level of competences for energy services providers , energy auditors , energy managers , independent experts and installers of building elements pursuant to directive 2010/31/eu , and shall make the assessment and recommendations thereof publically available. ### 4. member states shall assess by 31 december 2024 and every four years thereafter whether the schemes ensure the necessary level of competences and an acceptable gender balance for energy services providers , energy auditors , energy managers , independent experts and installers of building elements pursuant to directive 2010/31/eu , and shall make the assessment and recommendations thereof publically available.


### 7. for the purpose of supporting the proper functioning of the energy services market , member states may establish an individual mechanism or designate an ombudsperson to ensure the efficient handling of complaints and out-of-court settlement of disputes arising from energy service and energy performance contracts. ### 7. for the purpose of supporting the proper functioning of the energy services market , member states shall establish an individual mechanism or designate an ombudsperson as outlined in article 24(5) , to ensure the efficient handling of complaints and out-of-court settlement of disputes arising from energy service and energy performance contracts.


### — direct emissions of the carbon dioxide from cogeneration production that is fuelled with fossil fuels , are less than 270 gco2 per 1 kwh of energy output from the combined generation (including heating/cooling , power and mechanical energy). ### — direct emissions of the carbon dioxide from cogeneration production that is fuelled with fossil fuels , are less than 270 gco2 per 1 kwh of energy output from the combined generation (combining electrical , heating and cooling , power and mechanical energy) as of 1 january 2030. when calculating the abovementioned threshold , the operating conditions of cogeneration units , including seasonal changes of heat curve and ancillary services provided to electricity grid , shall be taken into account.


### — direct emissions of the carbon dioxide from cogeneration production that is fuelled with fossil fuels , are less than 270 gco2 per 1 kwh of energy output from the combined generation (including heating/cooling , power and mechanical energy). ### — direct emissions of the carbon dioxide from cogeneration production that is fuelled with fossil fuels , are less than 250 gco2 per 1 kwh of energy output from the combined generation (including heating/cooling , power and mechanical energy).


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


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


### 1. welcomes the findings of the european court of auditors (‘the court’) that the consolidated accounts of the european union for 2021 present fairly , in all material respects , the union’s financial position; regrets that the estimated level of error in expenditure has increased up to 3%; ### 1. welcomes the findings of the european court of auditors (‘the court’) that the consolidated accounts of the european union for 2021 present fairly , in all material respects , the union’s financial position; regrets that the estimated level of error in expenditure has increased up to 3% and recommends the european commission to improve the monitoring of expenditures;


### 1. notes that 2021 was the first implementation year of the 2021-2027 mff and that the legal bases of the new erasmus+ , creative europe and european solidarity corps programmes were formally adopted in may 2021; ### 1. notes that 2021 was the first implementation year of the 2021-2027 mff and that the legal bases of the new erasmus+ , creative europe and european solidarity corps programmes were formally adopted in may 2021; recalls that these initiatives are meant to be for all , regardless of age , gender , employment or education level and reiterates the need to make sure that all programmes are accessible across europe , in particular by small organizations , disadvantaged and vulnerable people and people from remote , rural and isolated areas;


### 1. stresses that a gender equality perspective should be integrated and ensured into all policy areas , particularly in light of the multiple gendered impacts of various ongoing climate , energy and social crises; reiterates therefore its call for the implementation of gender budgeting at all stages of the budgetary process; ### 1. stresses that a gender equality perspective should be integrated and ensured into all policy areas , particularly in light of the multiple gendered impacts of various ongoing climate , energy and social crises; reiterates therefore its call for the implementation of gender budgeting at all stages of the budgetary process; stresses the importance of gender budgeting in all recovery and alleviation measures to make use of eu programmes for mitigating gendered impacts of various crises;


### 1. questions the large-scale tapping of the cushion within the neighbourhood , development and international cooperation instrument – global europe , established by regulation (eu) 2021/947 of the european parliament and of the council1 , for other purposes than the response to new needs it is aimed for; calls on the member states to cover from their budgets any additional funding for syrian refugees in türkiye; ### 1. questions the large-scale tapping of the cushion within the neighbourhood , development and international cooperation instrument – global europe , established by regulation (eu) 2021/947 of the european parliament and of the council1 , for other purposes than the response to new needs it is aimed for; calls on member states to ensure that the cushion is mobilised only for purposes within its intended scope;


### 3. notes that the last call for proposals of the cef programme 2014-2020 was completed in 2021 , selecting 77 actions , with a total cef contribution of more than eur 280 million , triggering an overall investment of more than eur 500 million , nevertheless , regrets that the 1st cef 2021-2027 call for proposals was published only in september 2021 and the first commitments came in mid-2022; ### 3. notes that the last call for proposals of the cef programme 2014-2020 was completed in 2021 , selecting 77 actions , with a total cef contribution of more than eur 280 million , triggering an overall investment of more than eur 500 million , nevertheless , regrets that the 1st cef 2021-2027 call for proposals was published only in september 2021 and the first commitments came in mid-2022 due to the delayed negotiations on the mff 2021-2027;


### 3. acknowledges the mitigating measures taken by the commission and eacea to safeguard programme implementation , in particular eacea’s efforts to deliver calls for proposals and tailored support for applicants at a high pace in the second half of the year; ### 3. acknowledges the mitigating measures taken by the commission and eacea to safeguard programme implementation , in particular eacea’s efforts to deliver calls for proposals and tailored support for applicants at a high pace in the second half of the year; calls on the eacea to continue its efforts to help applicants and beneficiaries of programmes in the context of the current crisis;


### 4. underlines that the covid-19 pandemic continued to have a heavy impact on learners , teachers , young people , cultural professionals and athletes in 2021; ### 4. underlines that the covid-19 pandemic continued to have a heavy impact on learners , teachers , young people , cultural professionals and athletes in 2021 and requests additional financial resources for them to better address the challenges arising from the inflation and price hikes;


### 4. emphasises the value of service delivery through local ngos in developing countries; encourages the commission to prioritise that when possible and to provide capacity-building for local ngos with potential to become important service deliverers; ### 4. emphasises the value of service delivery through local ngos in developing countries; encourages the commission to prioritise that when possible and to provide capacity-building for local ngos with potential to become important service deliverers; highlights the efficacy of local ownership in project implementation as concerns prioritisation , allocation of resources and building local know-how;


### 5. notes that the first year of the new mff saw the launch or further development of several major policy initiatives; ### 5. notes that the first year of the new mff saw the launch or further development of several major policy initiatives; considers there to be a structural lack of eu funding for education , youth , solidarity and culture in the face of new priorities and requests that this be addressed when deciding on any programme adjustments in the mff revision;


### 6. underlines that the funding of the ten-t network revision shall well reflect and further focus on the extension of connection towards the eastern neighbourhood; in this regard insists to not further delay the acceptation of bulgaria and romania to the schengen area to ensure seamless transport connection to the east; ### 6. underlines that the funding of the ten-t network revision shall well reflect and further focus on the extension of connection towards the eastern neighbourhood; in this regard insists to not further delay the acceptation of bulgaria , romania and croatia to the schengen area to ensure seamless transport connection to the east to reduce the costs of companies outside the schengen area;


### 7. notes the low amount of payment appropriations of 2 million of military mobility which operates with regrettable low financial envelope; ### 7. notes the low amount of payment appropriations of 2 million of military mobility which operates with regrettable low financial envelope , therefore considers that it is necessary to provide a bigger budget for this field to meet the needs;


### 2. takes note that the implementation of the 2021 budget was significantly impacted by the delays in the adoption of new legal bases and the new rules for structural funds; ### 2. takes note that the implementation of the 2021 budget was significantly impacted by the delays in the adoption of new legal bases and the new rules for structural funds , as well as the ongoing covid-19 crisis and its social consequences , and their impact on the budget in the social area that was adopted before the crisis;


### 2. supports the ambition to bring together public and private actors and achieve synergies between different policies through the global gateway (gg) strategy; stresses that allocations of official development assistance involved should be firmly guided by agenda 2030 and that policy coherence for development should consistently be applied; notes that the only role for parliament in the governance arrangements adopted by the member states is that as an observer in the gg board; stresses the need to ensure proper influence for parliament in strategic choices involving union funds; ### 2. acknowledges the ambition to bring together public and private actors and achieve synergies between different policies through the global gateway (gg) strategy; stresses that allocations of official development assistance involved should be firmly aligned with agenda 2030 and the paris agreement and that policy coherence for development should consistently be applied; notes that the only role for parliament in the governance arrangements adopted by the member states is that as an observer in the gg board; stresses the need to ensure proper influence for parliament in strategic choices involving union funds given its scrutiny role through ndici global europe and as the budgetary authority;


### 12. underlines the increasing need to ensure the transparency of ngos and of their funding , as they are important actors in the implementation of the union budget , especially in the area of external action; demands the commission to re-evaluate its identification of entities as ngos , improving the reliability of information (making sure to have them registered as lobbyists , having clearly established whether they stand for the topics they claim they represent , and having insight into their financing); demands the disclosure of their financing be it private (e.g. ngos financed by the industrial actors) or public; recalls that as regards public funding , the union basic acts regulate how transparency and visibility in this regard need to be handled , therefore reminds the commission about the responsibility it has to check the compliance with rules and procedures , especially rules and procedures on sub-granting to ngos; moreover , demands that the commission provides the discharge authority with clear information about the total amount of union funds implemented by ngos; ### 12. underlines the increasing need to ensure the transparency of ngos and intermediaries with regard to their funding and accountability , as they are important actors in the implementation of the union budget regarding direct and indirect management; demands the commission to re-evaluate its identification of entities as ngos , improving the reliability of information (making sure to have them registered as lobbyists , having clearly established whether they stand for the topics they claim they represent , and having insight into their financing); demands the disclosure of their financing be it private (e.g. ngos financed by the industrial actors) or public; recalls that as regards public funding , the union basic acts regulate how transparency and visibility in this regard need to be handled , therefore reminds the commission about the responsibility it has to check the compliance with rules and procedures , especially rules and procedures on sub-granting to ngos and intermediaries of financial institutions; moreover , demands that the commission provides the discharge authority with clear information about the total amount of union funds implemented by ngos;


### 18. notes the successful efforts of the commission to raise funds on the financial markets to provide the financial means for the rrf; is concerned by the resulting debts , the rising interest rates and the resulting uncertain capacity to repay the loans and the risk this poses for the union budget and union policies; ### 18. notes the successful efforts of the commission to raise funds on the financial markets to provide the financial means for the rrf; is concerned by interest rates and the uncertain capacity to repay the loans and the risk this poses for the union budget and agreed union policies;


### 19. expresses concern about the limited number of cross-border projects under the rrf , which calls into question the union added value of this instrument; ### 19. expresses concern about the limited number of cross-border projects under the rrf while understands that the main focus of the rrf has been to support economic recovery in the eu member states after the covid-19 pandemic; stresses that the alignment of the national recovery and resilience plans with the eu policy objectives materialises the union added value of this instrument;


### 19. expresses concern about the limited number of cross-border projects under the rrf , which calls into question the union added value of this instrument; ### 19. notes the limited number of cross-border projects under the rrf , which calls into question the union added value of this instrument;


### 15. welcomes the rrf's contribution to preventing a strong economic downturn following the covid-19 pandemic; notes that the rrf has been instrumental in making progress with the implementation of the country specific recommendations (csrs) stemming from the european semester in almost all member states; notes however that several csrs remain unaddressed , despite the financial incentives stemming from the rrf ### 15. welcomes the rrf's contribution to preventing a strong economic downturn following the covid-19 pandemic; notes that the rrf is instrumental in making make european economies and societies more sustainable , resilient and better prepared for the challenges and opportunities of the green and digital transitions; notes that the recovery and resilience plans will drive the member states’ reform and investment agenda for the years to come , while the european semester , with its broader scope and multilateral surveillance , will usefully guide and complement the implementation of the recovery and resilience plans;


### 16. is concerned by the findings of the court in its first annual assessment of the rrf; considers that the implementation of the rrf takes place under time pressure , with however a much more straight forward delivery model that puts much , lighter requirements on the commission , and reduces the control burden from the commission towards the member states , in particular in comparison with the cohesion policy; is therefore concerned by the types of findings of the court which fundamentally calls into question whether the commission can handle even this reduced control burden; calls on the commission not to apply the performance based delivery model as used in the implementation of the rrf for other policies until the advantages and disadvantages are more clear , following the evaluation of the implementation of the rrf by 20 february 2024; ### 16. notes the findings and conclusions of the court in its first annual assessment of the rrf; understands that the implementation of the rrf takes place under time pressure , with however a much more straight forward delivery model , in comparison with the cohesion policy; calls on the commission to assess the advantages and disadvantages of this performance-based delivery model as part of the evaluation of the implementation of the rrf due by 20 february 2024;


### 16. is concerned by the findings of the court in its first annual assessment of the rrf; considers that the implementation of the rrf takes place under time pressure , with however a much more straight forward delivery model that puts much , lighter requirements on the commission , and reduces the control burden from the commission towards the member states , in particular in comparison with the cohesion policy; is therefore concerned by the types of findings of the court which fundamentally calls into question whether the commission can handle even this reduced control burden; calls on the commission not to apply the performance based delivery model as used in the implementation of the rrf for other policies until the advantages and disadvantages are more clear , following the evaluation of the implementation of the rrf by 20 february 2024; ### 16. notes the findings of the court in its first annual assessment of the rrf; understands that the implementation of the rrf takes place under time pressure , with however a much more straight forward delivery model that puts much , lighter requirements on the commission , and reduces the control burden from the commission towards the member states , in particular in comparison with the cohesion policy; is therefore concerned by the types of findings of the court which fundamentally calls into question whether the commission can handle even this reduced control burden; calls on the commission not to apply the performance based delivery model as used in the implementation of the rrf for other policies until the advantages and disadvantages are more clear , following the evaluation of the implementation of the rrf by 20 february 2024;


### 17. welcomes the agreement reached in the inter-institutional negotiations on repowereu on the bi-annual publication of the 100 biggest final beneficiaries per member state on the rrf scoreboard; reiterates its call for the list of all final beneficiaries and projects to be made available to auditors and the discharge authority; ### 17. welcomes the agreement reached in the inter-institutional negotiations on repowereu on the bi-annual publication of the 100 biggest final beneficiaries per member state on the rrf scoreboard; reiterates its call to make the data at the commission's disposal available in the framework of discharge , for the discharge authority;


### 31. expresses its support for the audit approach and methodology of the court; notes with concern the divergences between the error rates and risk at payment as calculated by the court and the commission; highlights that these differences do not occur in all expenditure areas; remarks the fact that the commission’s estimates for risk at payment are consistently in the lower range or below the statistical estimations of the court and is concerned that this represents a systematic underestimation of the existing error level by the commission; is worried that the commission , acting on potentially underestimated risks , is not able to effectively protect the financial interests of the union; is also concerned by the confusion this creates for the discharge authority and union citizens , as the commission on the one hand embraces the court’s error rate in areas where this is below the materiality threshold (natural resources) , however presents its own estimated error at payment in areas where the court’s error rate is above the materiality threshold; ### 31. underlines that , although the error rate calculated by the court is a statistical summary providing a convenient single indicator of the lawfulness and regularity of eu spending , it does not offer a differentiated view regarding the nature and gravity of the various errors resulting; notes that the methodology of the court is based on international audit standards requiring the testing of a random transaction sample and that a representative sample cannot be wholly risk-based; notes with concern the divergences between the error rates and risk at payment as calculated by the court and the commission; highlights that these differences do not occur in all expenditure areas; remarks the fact that the commission’s estimates for risk at payment are consistently in the lower range or below the statistical estimations of the court; expresses its concern at the confusion that these two different methodologies create for the discharge authority and union citizens and once more calls on the court and the commission to cooperate in order to attenuate the differences between their methodologies and the discrepancies in the error rates calculated by them on this basis;


### 34. notes that the court divides their audit population into high risk (mainly reimbursement based payments) and low risk (mainly entitlement based payments) expenditure; notes with concern however , that the commission in its annual management and performance report categorises the expenditure into higher , medium and lower risk segments; emphasises that the use of different risk categories by the court and the commission impedes the work of the discharge authority in making a comparative analysis of the respective reports; notes with concern the discrepancy between the court’s calculation of high-risk expenditure as 63.2 % compared to commission’s calculation of 22 %; ### 34. notes that the court divides their audit population into high risk (mainly reimbursement based payments) and low risk (mainly entitlement based payments) expenditure; notes however , that the commission in its annual management and performance report categorises the expenditure into higher , medium and lower risk segments; , notes that the commission’s analysis of where the risks are is based on checks performed by national authorities , other partners and the commission itself every year , at the most granular level;


### 34. notes that the court divides their audit population into high risk (mainly reimbursement based payments) and low risk (mainly entitlement based payments) expenditure; notes with concern however , that the commission in its annual management and performance report categorises the expenditure into higher , medium and lower risk segments; emphasises that the use of different risk categories by the court and the commission impedes the work of the discharge authority in making a comparative analysis of the respective reports; notes with concern the discrepancy between the court’s calculation of high-risk expenditure as 63.2 % compared to commission’s calculation of 22 %; ### 34. notes that the court divides their audit population into high risk (mainly reimbursement based payments) and low risk (mainly entitlement based payments) expenditure; notes with concern however , that the commission in its annual management and performance report categorises the expenditure into higher , medium and lower risk segments; emphasises that the use of different risk categories by the court and the commission presents a challenge to the discharge authority in making a comparative analysis of the respective reports; notes with concern that this is causing a discrepancy between the court’s calculation of high-risk expenditure as 63.2 % compared to commission’s calculation of 22 %;


### 37. notes that , despite the fact that the court considers the rrf expenditure accepted in the accounts for the year ended 31 december 2021 as legal and regular in all material respects , there is one milestone in the payment to spain that is not satisfactorily fulfilled , casting doubt on the commission’s assessment of the milestone and targets associated with the related rrf expenditure; recalls that the only reason the identified error was not quantified was the absence of a methodology for partial payments by the commission; ### 37. recalls that the objective of the court’s audit of the rrf was to contribute to the statement of assurance and provide the basis for its opinion on the regularity of 2021 rrf expenditure; notes that the audit population comprised the only 2021 disbursement , a payment to spain , and the clearing of the related pre-financing; welcomes that the court considers the rrf expenditure accepted in the accounts for the year ended 31 december 2021 as legal and regular in all material aspects; notes that the court considers one milestone in the payment to spain as not satisfactorily fulfilled , which was found to be non-material error;


### 37. notes that , despite the fact that the court considers the rrf expenditure accepted in the accounts for the year ended 31 december 2021 as legal and regular in all material respects , there is one milestone in the payment to spain that is not satisfactorily fulfilled , casting doubt on the commission’s assessment of the milestone and targets associated with the related rrf expenditure; recalls that the only reason the identified error was not quantified was the absence of a methodology for partial payments by the commission; ### 37. notes that , despite the fact that the court considers the rrf expenditure accepted in the accounts for the year ended 31 december 2021 as legal and regular in all material respects , there is one milestone in the 2021 payment to spain that the court does not consider to be satisfactorily reached; recalls that the only reason the identified error was not quantified was the absence of a methodology for partial payments by the commission;


### e. work with the court to align the respective risk categorisation methodologies; ### deleted


### 96. notes from the commissioner’s replies to written questions that smes participate in calls from the edf; notes that the commission provides general technical support to potential beneficiaries of funds from the european defence fund through the funding and tenders portal; notes further that the commission considers that participation of smes in calls from the edf are supported through simplified costs options , which benefit all participants , and organisation of info days; considers that for smes this might not be sufficient given the problems encountered by these enterprises , that mainly have to do with a lack of specific knowledge of union funding and administrative capacity; ### 96. notes from the commissioner’s replies to written questions that smes participate in calls from the edf and make up 43% of the entities involved in selected proposals; notes that the commission provides general technical support to potential beneficiaries of funds from the european defence fund through the funding and tenders portal; notes further that the commission considers that participation of smes in calls from the edf are supported through simplified costs options , which benefit all participants , and organisation of info days; considers that for smes this might not be sufficient given the problems encountered by these enterprises , that mainly have to do with a lack of specific knowledge of union funding and administrative capacity;


### 119. takes note that the court , in its special report 19/2022 “eu covid-19 vaccine procurement” states that the union has created a tailor-made procurement system for covid-19 vaccines; welcomes that negotiations secured a diversified vaccine portfolio for member states; notes that the commission supported contract implementation but had limited leverage to overcome supply challenges; ### 119. takes note that the court , in its special report 19/2022 “eu covid-19 vaccine procurement” states that the union has created a tailor-made procurement system for covid-19 vaccines; welcomes that negotiations secured a diversified vaccine portfolio for member states; notes that the commission supported contract implementation , but without furnishing concrete statistics on the content of those contracts , showing a lack of transparency; the lack of answers providing concrete data on the content of contracts is creating increased discontent among european citizens and affecting their credibility in some eu institutions;


### a. report comprehensively on the covid-19 related expenditure and report back to the discharge authority; ### a. report comprehensively on the covid-19 related expenditure and report back to the discharge authority , including with a detailed overview of vaccine procurement contracts;


### 123. notes the commission’s activities to issue securities on the international capital markets necessary to fund the rrf , for which the commission raised , by the end of 2021 , eur 71 ,0 billion of long-term funding and eur 20 billion of short-term funding; notes the issuing of the first ngeu green bond with a value of eur 12 ,0 billion , that requires implementation of reporting on the precise use of proceeds green bonds and on the impact of investments; recalls the issues concerning performance reporting identified by the court and the reputational and financial risks that this can bring for the green bonds; considers that the first interest costs have been incurred for these borrowed amounts , including a negative interest rate of over eur 20 billion in deposit at the ecb; notes the introduction of interest rate risk for the union budget because of ngeu’s funding needs; ### 123. notes the commission’s activities to issue securities on the international capital markets necessary to fund the 'next generation eu' recovery instrument , for which the commission raised , by the end of 2021 , eur 71 ,0 billion of long-term funding and eur 20 billion of short-term funding; notes the issuing of the first ngeu green bond with a value of eur 12 ,0 billion , that requires implementation of reporting on the precise use of proceeds green bonds and on the impact of investments; recalls the issues concerning performance reporting identified by the court and the reputational and financial risks that this can bring for the green bonds; considers that the first interest costs have been incurred for these borrowed amounts , including a negative interest rate of over eur 20 billion in deposit at the ecb;


### 123. notes the commission’s activities to issue securities on the international capital markets necessary to fund the rrf , for which the commission raised , by the end of 2021 , eur 71 ,0 billion of long-term funding and eur 20 billion of short-term funding; notes the issuing of the first ngeu green bond with a value of eur 12 ,0 billion , that requires implementation of reporting on the precise use of proceeds green bonds and on the impact of investments; recalls the issues concerning performance reporting identified by the court and the reputational and financial risks that this can bring for the green bonds; considers that the first interest costs have been incurred for these borrowed amounts , including a negative interest rate of over eur 20 billion in deposit at the ecb; notes the introduction of interest rate risk for the union budget because of ngeu’s funding needs; ### 123. notes the commission’s activities to issue securities on the international capital markets necessary to fund the rrf , for which the commission raised , by the end of 2021 , eur 71 ,0 billion of long-term funding and eur 20 billion of short-term funding; notes the issuing of the first ngeu green bond with a value of eur 12 ,0 billion , that requires implementation of reporting on the precise use of proceeds green bonds and on the impact of investments; recalls the issues concerning performance reporting identified by the court and the reputational and financial risks that this can bring for the green bonds; considers that the first interest costs have been incurred for these borrowed amounts , including a negative interest rate of over eur 20 billion in deposit at the ecb;


### 122. notes that the commission approved 22 national recovery and resilience plans (rrps) in 2021 , committing eur 154 billion in loans and eur 291 billion in grants; notes that the commission disbursed pre-financing for loans with a total value of eur 18 billion , with the biggest two recipients being italy (eur 15 ,9 billion) and greece (eur 1 ,65 billion); notes that the commission disbursed pre-financing for grants with a total value of eur 36 ,3 billion , with the biggest two recipients being spain (eur 9 ,04 billion) and italy (eur 8 ,95 billion); notes that the commission disbursed one payment , to spain , with a value of eur 10 ,0 billion; notes that the payment to spain was accompanied by the clearing of eur 1 ,5 billion of pre-financing of the eur 9 ,04 billion received as pre-financing by that member state , in accordance with article 5(3) of the financing agreement between the commission and the kingdom of spain; ### 122. notes that the commission approved 22 national recovery and resilience plans (rrps) in 2021 , committing eur 154 billion in loans and eur 291 billion in grants; notes that the commission disbursed pre-financing for loans with a total value of eur 18 billion , with the biggest two recipients being italy (eur 15 ,9 billion) and greece (eur 1 ,65 billion); recalls that the council's approval of the nrrps enabled the member states to receive pre-financing up to 13 % of the financial contribution; notes that the commission disbursed pre-financing for grants with a total value of eur 36 ,3 billion , with the biggest two recipients being spain (eur 9 ,04 billion) and italy (eur 8 ,95 billion); notes that the commission disbursed one payment , to spain , with a value of eur 10 ,0 billion; notes that the payment to spain was accompanied by the clearing of eur 1 ,5 billion of pre-financing of the eur 9 ,04 billion received as pre-financing by that member state , in accordance with article 5(3) of the financing agreement between the commission and the kingdom of spain;


### 124. notes the court’s observation regarding the rrf in its 2021 annual report concerning the first payment request from spain; notes that the court assessed the commission’s ex-ante work on all milestones associated with the payment to spain in 2021; observes that it will not be possible for the court to assess all milestones associated with future payments; ### 124. notes the court’s observation regarding the rrf in its 2021 annual report concerning the first payment request from spain; notes that the court assessed the commission’s ex-ante work on all milestones associated with the payment to spain in 2021; observes that it will not be possible for the court to assess all milestones associated with future payments; nonetheless expects the court to include , in its sample for 2022 , the milestones and targets for all payments made in 2022;


### 124. notes the court’s observation regarding the rrf in its 2021 annual report concerning the first payment request from spain; notes that the court assessed the commission’s ex-ante work on all milestones associated with the payment to spain in 2021; observes that it will not be possible for the court to assess all milestones associated with future payments; ### 124. notes the court’s observation in its 2021 annual report concerning the rrf and the only payment made in 2021 , to spain; notes that the court examined the commission’s ex-ante work on all milestones associated with this payment; observes that the court had not been able to examine other payments in 2021 , and will not be able to assess all milestones associated with future payments to all member states , which will have an impact on its future analyses;


### 125. is worried by the court’s serious finding that for the payment made to spain in 2021 , one milestone was not satisfactorily fulfilled; regrets to note that the court was not able to quantify this error because of the absence of a methodology to quantify the impact of (partially) not achieving a milestone or target; notes the commission’s internal auditor also observed the absence of this methodology; considers it grave negligence of the commission to not have this methodology in place before making payments , as this calls into question the commission’s sincerity of assessing the satisfactory fulfilment of milestones and targets; ### 125. notes the court's conclusion that , for the payment made to spain in 2021 , one of the 52 milestones was not satisfactorily fulfilled , although this is not considered by the court as a material error; notes that the element identified by the court as not fulfilled is not in the milestone , but is contained in the description of the measure , which is a separate part of the cid as per article 20(5)(c) of the rrf regulation , and whose elements are not always relevant for the commission's assessment on the satisfactory fulfilment of milestones and targets; highlights that the commission considers that the concerned element is not directly or indirectly referred to in the milestone , nor is directly or indirectly relevant for the fulfilment of that milestone; understands , therefore , that it cannot be considered as a basis for assessing this milestone as not having been satisfactorily met;


### 126. notes that the commission’s internal audit service did not perform any audit engagement as regards the ngeu programme in 2021; notes that the internal auditor draws attention to the need to continue work on control design and implementation of appropriate financial management , and audit and control strategies; considers the internal auditor to be an essential element of internal checks and balances within the commission and that independent and objective information derived from its own audit activities is indispensable for the internal auditor to function effectively; underlines that the work by the court as external auditor cannot substitute the work of the internal audit service; ### 126. notes that the commission’s internal audit service started an audit engagement as regards the ngeu programme in 2021; notes that following the work done the internal auditor draws in its 2021 overall opinion on commission financial management also attention to the need to continue work on control design and implementation of appropriate financial management , and audit and control strategies; considers the internal auditor to be an essential element of internal checks and balances within the commission and that independent and objective information derived from its own audit activities is indispensable for the internal auditor to function effectively; underlines that according to international internal audit standards the work by the court as external auditor and the work of the internal audit service should be coordinated;


### 127. recalls the cont committee’s opinion to the committee on budgets and the committee on economic and monetary affairs on the proposal for a european parliament and council regulation establishing the rrf; recalls the call therein for a list of all final beneficiaries and projects of the facility; considers that article 22(2) (d) of that regulation puts the requirement on the member states to keep these records , and that the provisions in article 22(3) call for making the data concerned available in the framework of discharge , for the discharge authority; ### 127. recalls the cont committee’s opinion to the committee on budgets and the committee on economic and monetary affairs on the proposal for a european parliament and council regulation establishing the rrf; recalls the call therein for the member states to keep records of the economic operators and their beneficial owners for the purpose of audit and control , as well as a call for a list of all final beneficiaries of the facility in full compliance with data protection regulation; welcomes that the rrf regulation adopted by the eu co-legislators follows this line , as its article 22(2) (d) puts the requirement on the member states to keep these records (i) for the purpose of audit and control and (ii) to provide for comparable information on the use of funds; notes , furthermore , that the provisions in article 22(3) call for making the personal data only processed by member states and by the commission for the purpose of discharge , audit and control proceedings , as well as for making the data at the commission's disposal available in the framework of discharge , for the discharge authority;


### 128. welcomes the agreement reached in the inter-institutional negotiations on repowereu on the bi-annual publication of the 100 biggest beneficiaries of repowereu and the rrf by february 2024 at the latest; considers however that this does not replace the requirement to provide the list of all final beneficiaries and projects to auditors and the discharge authority for every financial year; ### 128. welcomes the agreement reached in the inter-institutional negotiations on the repowereu regulation amending the rrf regulation to make it mandatory for the member states the bi-annual publication of the 100 biggest beneficiaries of repowereu and the rrf in each member state by february 2024 at the latest; notes that in the guidance adopted on 1 february 2023 , the commission has invited the member states to publish such a list as soon as april 2023 to increase the transparency on the rrf;


### 128. welcomes the agreement reached in the inter-institutional negotiations on repowereu on the bi-annual publication of the 100 biggest beneficiaries of repowereu and the rrf by february 2024 at the latest; considers however that this does not replace the requirement to provide the list of all final beneficiaries and projects to auditors and the discharge authority for every financial year; ### 128. welcomes the agreement reached in the inter-institutional negotiations on repowereu on the bi-annual publication of the 100 biggest beneficiaries of repowereu and the rrf in each member state by february 2024 at the latest; considers however that this does not replace the requirement to provide the list of all final beneficiaries and projects to auditors and the discharge authority for every financial year;