### member states shall ensure that . customers have access to simple , fair , transparent , independent , effective and efficient out - of - court dispute resolution mechanisms for the settlement of disputes concerning rights and obligations established under this directive . where the costumer is a consumer within the meaning of directive 2013 / 11 / eu of the european parliament and of the council46 , such out - of - court mechanisms shall comply with the quality requirements established in directive 2013 / 11 / eu and provide , where warranted , for a system of reimbursement and / or compensation . __________________ 46 oj l 165 , 18 . 6 . 2013 , p . 63–79 ### member states shall ensure that an independent mechanism such as an energy ombudsman or a consumer body is in place in order to ensure efficient treatment of complaints and out - of - court dispute settlements . customers have access to simple , fair , transparent , independent , effective and efficient out - of - court dispute resolution mechanisms for the settlement of disputes concerning rights and obligations established under this directive . member states shall ensure that an independent mechanism such as an energy ombudsman or a consumer body is in place in order to ensure efficient treatment of complaints and out - of - court dispute settlements . those mechanisms shall be extended to all energy service providers , aggregators and all contracts with energy components , including bundled offers and local energy communities whose participation shall be mandatory . member states shall not allow suppliers to disconnect vulnerable customers until any dispute between the supplier and the customer is settled . member states shall ensure that electricity suppliers , energy service providers and aggregators provide information on the out - of - court dispute settlement on their website and in all communication with their customers . member states shall regularly assess the functioning of the out - of - court dispute settlement mechanisms , especially with regards to the participation and compliance of electricity suppliers , energy service providers , aggregators and intermediaries , and consider strengthening their mandatory participation in out - of - court dispute settlement mechanisms . __________________ 46 oj l 165 , 18 . 6 . 2013 , p . 63–79


### by way of derogation from paragraph 2 , member states may choose to permit suppliers to charge contract termination fees to customers willingly terminating fixed term supply contracts before their maturity . such fees may only be charged if customers receive a demonstrable advantage from these contracts . in addition , such fees shall not exceed the direct economic loss to the supplier of the customer terminating the contract , including the cost of any bundled investments or services already provided to the customer as part of the contract . ### by way of derogation from paragraph 2 , member states may choose to permit suppliers to charge contract termination fees to customers willingly terminating fixed term supply contracts before their maturity . such fees may only be charged if customers receive a demonstrable advantage from these contracts . in addition , such fees shall be proportionate to the advantage provided to the customer and shall not exceed the direct economic loss to the supplier of the customer terminating the contract , including the cost of any bundled investments or services already provided to the customer as part of the contract . the burden of proof of the direct economic loss shall always be on the supplier and monitored by the national regulatory authority . in the case of bundled investment in equipment , the economic loss shall be determined on the basis of whichever amount is smaller , either the pro rata temporis residual value of subsidised equipment bundled with the contract at the moment of the contract conclusion or the remaining part of the service fee until the end of the contract .


### such facilities are necessary for the distribution system operators to fulfil their obligations under this directive for the efficient , reliable and secure operation of the distribution system ; and ### such facilities are used by the distribution system operator exclusively for the purpose of fulfilling its obligations under this directive for the efficient , reliable and secure operation of the distribution system , and they are not used to sell electricity to the market .


### member states should maintain a wide discretion to impose public service obligations on electricity undertakings in pursuing objectives of general economic interest . member states should ensure that household customers and , where member states deem it appropriate , small enterprises , enjoy the right to be supplied with electricity of a specified quality at clearly comparable , transparent and competitive prices . nevertheless , public service obligations in the form of supply price regulation constitute a fundamentally distortive measure that often leads to the accumulation of tariff deficits , limitation of consumer choice , poorer incentives for energy saving and energy efficiency investments , lower standards of service , lower levels of consumer engagement and satisfaction , restriction of competition as well as fewer innovative products and services on the market . consequently , member states should apply other policy tools , and in particular targeted social policy measures , to safeguard the affordability of electricity supply to their citizens . interventions in price setting should only be applied in limited exceptional circumstances . a fully liberalised retail electricity market would stimulate price and non - price competition among existing suppliers and incentivise new market entries therefore improving consumers ' choice and satisfaction . ### member states should maintain a wide discretion to impose public service obligations on electricity undertakings in pursuing objectives of general economic interest . member states should ensure that household customers and , where member states deem it appropriate , small enterprises , enjoy the right to be supplied with electricity of a specified quality at clearly comparable , transparent and competitive prices . consequently , member states should be allowed to apply social or other energy policy tools to safeguard the affordability of energy supply to their citizens . to ensure the affordability of energy bills of vulnerable customers , interventions in price setting should be shifted to interventions in investments in the improvement of the energy efficiency of appliances and buildings . the design of the energy efficiency interventions must overcome the typical barriers where vulnerable consumers are confronted with . a fully liberalised retail electricity market would stimulate price and non - price competition among existing suppliers and incentivise new market entries therefore improving consumers ' choice and satisfaction .


### member states that proceed with deployment shall adopt and publish the minimum functional and technical requirements for the smart metering systems to be rolled out in their territories in line with the provisions laid down in article 20 and annex iii . member states shall ensure the interoperability of these smart metering systems as well as their connectivity with consumer energy management platforms . to this respect , member states shall have due regard to the use of relevant available standards including those enabling interoperability , best practices and the importance of the development of the internal market in electricity . ### member states that proceed with deployment shall adopt and publish the minimum functional and technical requirements for the smart metering systems to be rolled out in their territories in line with the provisions laid down in article 20 and annex iii , while taking into account the existing functionalities of smart metering systems that are already installed . member states shall ensure the interoperability of these smart metering systems as well as their connectivity with consumer energy management platforms . to this respect , member states shall have due regard to the use of relevant available standards including those enabling interoperability , best practices and the importance of the development of the internal market in electricity .


### at least every two years , transmission system operators shall submit to the regulatory authority a ten - year network development plan based on existing and forecast supply and demand after having consulted all the relevant stakeholders . that network development plan shall contain efficient measures in order to guarantee the adequacy of the system and the security of supply . ### at least every two years , transmission system operators shall submit to the regulatory authority a ten - year network development plan based on existing and forecast supply and demand after having consulted all the relevant stakeholders . that network development plan shall contain efficient measures and demonstrate the use of demand response , energy storage facilities or other resources that the transmission system operator is using as an alternative to system expansion in order to guarantee the adequacy of the system and the security of supply .


### member states which are affected by energy poverty and which have not yet done so should therefore develop national action plans or other appropriate frameworks to tackle this problem , aiming at decreasing the number of people suffering such situation . low income , high energy expenditure , and poor energy efficiency of homes are relevant factors in designing indicators for the measurement of energy poverty . in any event , member states should ensure the necessary energy supply for vulnerable and energy poor customers . in doing so , an integrated approach , such as in the framework of energy and social policy , could be used and measures could include social policies or energy efficiency improvements for housing . at the very least , this directive should allow national policies in favour of vulnerable and energy poor customers . ### member states which are affected by energy poverty and which have not yet done so should develop national action plans or other appropriate frameworks to tackle this problem , aiming at decreasing the number of consumers at risk of energy poverty . low income , high energy expenditure , and poor energy efficiency of homes are relevant factors in designing union - wide indicators for the measurement of energy poverty . in any event , member states should ensure the necessary energy supply for vulnerable and energy poor customers . in doing so , an integrated approach , such as in the framework of energy and social policy , could be used and measures could include social policies or energy efficiency improvements for housing . as a minimum , this directive should support national policies in favour of vulnerable and energy poor customers .


### member states which are affected by energy poverty and which have not yet done so should therefore develop national action plans or other appropriate frameworks to tackle this problem , aiming at decreasing the number of people suffering such situation . low income , high energy expenditure , and poor energy efficiency of homes are relevant factors in designing indicators for the measurement of energy poverty . in any event , member states should ensure the necessary energy supply for vulnerable and energy poor customers . in doing so , an integrated approach , such as in the framework of energy and social policy , could be used and measures could include social policies or energy efficiency improvements for housing . at the very least , this directive should allow national policies in favour of vulnerable and energy poor customers . ### energy poverty is a growing problem in the union . member states which are affected by energy poverty and which have not yet done so should therefore develop national action plans or other appropriate frameworks to tackle energy poverty this problem , aiming at decreasing the number of energy poor customers . low income , high energy expenditure , and poor energy efficiency of homes are relevant factors in designing indicators for the measurement of energy poverty . in any event , member states should ensure the necessary energy supply for vulnerable and energy poor customers . in doing so , an integrated approach , such as in the framework of energy and social policy , could be used and measures could include social policies or energy efficiency improvements for housing . this directive should enhance national policies in favour of vulnerable and energy poor customers .


### energy services are fundamental to safeguard the well - being of the union citizens . adequate warmth , cooling , lighting and the energy to power appliances are essential services to guarantee a decent standard of living and citizens ' health . furthermore , access to these energy services empowers european citizens to fulfil their potential and it enhances social inclusion . energy poor households are unable to afford these energy services due to a combination of low income , high energy expenditure and poor energy efficiency of their homes . member states should collect the right information to monitor the number of households in energy poverty . accurate measurement should assist member states to identify those households affected by energy poverty in order to provide targeted support . the commission should actively support the implementation of the provisions on energy poverty by facilitating the sharing of good practices between member states . ### energy supply is fundamental to safeguard the well - being of the union citizens . heating , cooling , lighting and the energy to power appliances are essential to guarantee a decent standard of living and citizens ' health . furthermore , access to energy empowers european citizens to fulfil their potential and it enhances social inclusion . energy poor households are unable to afford these energy services due to a combination of low income , high energy expenditure and poor energy efficiency of their homes . member states should collect the right information to monitor the number of households in energy poverty . accurate measurement should assist member states to identify those households affected by energy poverty in order to provide targeted support through their social welfare systems or other policy measures . the commission should actively support the implementation of the provisions on energy poverty by facilitating the sharing of good practices between member states .


### member states shall define a common data format and a transparent procedure for eligible parties to have access to the data listed under article 23 , in order to promote competition in the retail market and avoid excessive administrative costs for the eligible parties . ### member states shall define a common data format and a transparent procedure for eligible parties to have access to the data listed under article 23 , in order to promote competition in the retail market and avoid excessive administrative costs for the eligible parties until two years after the entry into force of this directive .


### eur 1 000 000 000 to the objective referred to in article 3 ; ### eur 2 772 000 000 in 2018 prices to the objective referred to in article3 ;


### the financial envelope for the implementation of the programme for the period 2021 to 2027 shall be eur 4 088 580 000 in current prices . ### the financial envelope for the implementation of the programme for the period 2021 to 2027 shall be eur 5 514 000 000 in 2018 prices .


### making the internal market more effective , facilitating the prevention and removal of obstacles , supporting the development , implementation and enforcement of the union law in the areas of the internal market for goods and services , public procurement , market surveillance as well as in the areas of company law and contract and extra - contractual law , anti - money laundering , free movement of capital , financial services and competition , including the development of governance tools ; ### making the internal market more effective , promoting local economic development , facilitating the prevention and removal of obstacles , supporting the development , implementation and enforcement of the union law in the areas of the internal market for goods and services , social economy and social entrepreneurship , public procurement , market surveillance as well as in the areas of company law and contract and extra - contractual law , anti - money laundering , free movement of capital , financial services and competition , including the development of governance tools ;


### the programme should provide effective support for smes throughout their life - cycle . it should build on the unique knowledge and expertise developed with regard to smes and industrial sectors and on a long experience in working with european , national and regional stakeholders . this support should build on the successful experience of the enterprise europe network as a one - stop - shop to improve smes competitiveness and develop their business in the single market and beyond . the network plans to continue delivering services on behalf of other union programmes , notably for the horizon2020 programme , using the financial resources of these programmes . also the mentoring scheme for new entrepreneurs should remain the tool to enable new or aspiring entrepreneurs to gain business experience by matching with an experienced entrepreneur from another country and thus allow strengthening entrepreneurial talents . the programme should further strive to grow and extend its geographical coverage and thus offer wider range of matching possibilities to entrepreneurs in complementarity with other union initiatives where relevant . ### the programme should provide effective support for smes throughout their life - cycle . it should build on the unique knowledge and expertise developed with regard to smes and industrial and entrepreneurial sectors and on a long experience in working with european , national and regional stakeholders . this support should build on the successful experience of the enterprise europe network as a one - stop - shop to improve smes competitiveness and develop their business in the single market and beyond . the network plans to continue delivering services on behalf of other union programmes , notably for the horizon2020 programme , using the financial resources of these programmes . also the mentoring scheme for new entrepreneurs - erasmus for entrepreneurs - should remain the tool to enable new or aspiring entrepreneurs to gain business experience by matching with an experienced entrepreneur from another country and thus allow strengthening entrepreneurial talents . the programme should further strive to grow and extend its geographical coverage and thus offer wider range of matching possibilities to entrepreneurs in complementarity with other union initiatives where relevant .


### eur 1 000 000 000 to the objective referred to in article 3 ; ### eur 2772 000 000 in 2018 prices to the objective referred to in article 3 ;


### the internal market is a cornerstone of the union . since its inception , it has proved a major contributor to growth , competitiveness and employment . it has generated new opportunities and economies of scale for european businesses , notably micro , small and medium sized enterprises , and strengthened their industrial competitiveness . the internal market contributed to the creation of jobs and offered greater choice at lower prices for consumers . it continues to be an engine for building a stronger , more balanced and fairer economy . it is one of the union ' s major achievements and its best asset in an increasingly global world . ### the internal market is a cornerstone of the union . since its inception , it has proved a major contributor to growth , competitiveness and employment . it has generated new opportunities and economies of scale for european businesses , notably micro , small and medium sized enterprises , clusters , enterprise networks and consortium of companies , and strengthened their industrial competitiveness , and has also aimed to create and to reinforce the value chain where businesses are involved in all aspects of the process . the internal market contributed to the creation of jobs and offered greater choice at lower prices for consumers . it continues to be an engine for ensuring economic growth and for building a stronger , more balanced and fairer economy . it is one of the union ' s major achievements and its best asset in an increasingly global world .


### to preserve the environmental benefit of emission reductions in the union while actions by other countries do not provide comparable incentives to industry to reduce emissions , free allocation should continue to installations in sectors and sub - sectors at genuine risk of carbon leakage . experience gathered during the operation of the eu ets confirmed that sectors and sub - sectors are at risk of carbon leakage to varying degrees , and that free allocation has prevented carbon leakage . while some sectors and sub - sectors can be deemed at a higher risk of carbon leakage , others are able to pass on a considerable share of the costs of allowances to cover their emissions in product prices without losing market share and only bear the remaining part of the costs so that they are at a low risk of carbon leakage . the commission should determine and differentiate the relevant sectors based on their trade intensity and their emissions intensity to better identify sectors at a genuine risk of carbon leakage . where , based on these criteria , a threshold determined by taking into account the respective possibility for sectors and sub - sectors concerned to pass on costs in product prices is exceeded , the sector or sub - sector should be deemed at risk of carbon leakage . others should be considered at a low risk or at no risk of carbon leakage . taking into account the possibilities for sectors and sub - sectors outside of electricity generation to pass on costs in product prices should also reduce windfall profits . ### to preserve the environmental benefit of emission reductions in the union while actions by other countries do not provide comparable incentives to industry to reduce emissions , free allocation at benchmark levels of efficiency should continue to installations in sectors and sub - sectors at genuine risk of carbon leakage . the commission should determine the relevant sectors based on their trade intensity and their emissions intensity to better identify sectors at a genuine risk of carbon leakage such that best performers can produce and grow without incurring a carbon cost penalty . where , based on these criteria , a threshold determined by taking into account the respective possibility for sectors and sub - sectors concerned to pass on costs in product prices is exceeded , the sector or sub - sector should be deemed at risk of carbon leakage .


### if the eib recommends not financing an investment and provides reasons for this recommendation , a decision shall only be adopted if a majority of two - thirds of all members vote in favour . the member state in which the investment will take place and the eib shall not be entitled to cast a vote in this case . for small projects funded through loans provided by a national promotional bank or through grants contributing to the implementation of a national programme serving specific objectives in line with the objectives of the modernisation fund , provided that not more than 10% of the member states ' share set out in annex iib is used under the programme , the two preceding sentences shall not apply . ### if the eib recommends not financing an investment and provides reasons for this recommendation , a decision shall only be adopted if a majority of the beneficiary member states vote in favour . the member state in which the investment will take place and the eib shall not be entitled to cast a vote in this case .


### by derogation from article 10a to , member states which had in 2013 a gdp per capita in &#8364 ; at market prices below 60% of the union average may give a transitional free allocation to installations for electricity production for the modernisation of the energy sector . ### by derogation from article 10a to , member states which had in 2013 a gdp per capita in &#8364 ; at market prices below 60% of the union average may give a transitional free allocation to installations for electricity and heat production for the modernisation of the energy sector .


### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of ccs and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed . ### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of ccs and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 75% of the relevant costs of projects may be supported , out of which up to 25% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed . the commission shall publish the state aid guidelines for member state co - financing of eligible projects .


### each year , the management committee shall report to the commission on experience with the evaluation and selection of investments . the commission shall review the basis on which projects are selected by 31 december 2024 and , where appropriate , make proposals to the management committee . ### each year , the advisory board shall report to the commission on experience with the evaluation and selection of investments . the commission shall review the basis on which projects are selected by 31 december 2024 and , where appropriate , make proposals to the advisory board .


### the fund shall also finance small - scale investment projects in the modernisation of energy systems and energy efficiency . to this end , the investment board shall develop guidelines and investment selection criteria specific to such projects . ### the fund shall also finance small - scale investment projects in the modernisation of energy systems and energy efficiency , and projects in non - ets sector , with an aim to reduce ghg emissions . to this end , the beneficiary member states shall develop rules and investment selection criteria specific to such projects , in line with the objectives of the fund and the guidance elaborated by the eib referred to in paragraph 4 .


### a list of installations covered by this directive for the five years beginning on 1 january 2021 shall be submitted by 30 september 2018 , and lists for the subsequent five years shall be submitted every five years thereafter . each list shall include information on production activity , transfers of heat and gases , electricity production and emissions at sub - installation level over the five calendar years preceding its submission . free allocations shall only be given to installations where such information is provided . ### a list of installations covered by this directive for the two years beginning on 1 january 2021 shall be submitted by 30 september 2018 , and lists for the subsequent two years shall be submitted every two years thereafter . each list shall include information on production activity , transfers of heat and gases , electricity production and emissions at sub - installation level over the two calendar years preceding its submission . free allocations shall only be given to installations where such information is provided .


### the fund shall also finance small - scale investment projects in the modernisation of energy systems and energy efficiency . to this end , the investment board shall develop guidelines and investment selection criteria specific to such projects . ### the fund shall also finance small - scale investment projects in the modernisation of energy systems and energy efficiency . to this end , the beneficiary member states shall develop rules and investment selection criteria specific to such projects , in line with the objectives of the fund and the guidance elaborated by an advisory board referred to in paragraph 4 .


### a list of installations covered by this directive for the five years beginning on 1 january 2021 shall be submitted by 30 september 2018 , and lists for the subsequent five years shall be submitted every five years thereafter . each list shall include information on production activity , transfers of heat and gases , electricity production and emissions at sub - installation level over the five calendar years preceding its submission . free allocations shall only be given to installations where such information is provided . ### a list of installations covered by this directive for the two years beginning on 1 january 2021 shall be submitted by 30 september 2018 , and lists for the subsequent two years shall be submitted every two years thereafter . each list shall include information on production activity , transfers of heat and gases , electricity production and emissions at sub - installation level over the five calendar years preceding its submission . free allocations shall only be given to installations where such information is provided .


### the fund shall be governed by an investment board and a management committee , which shall be composed of representatives from the beneficiary member states , the commission , the eib and three representatives elected by the other member states for a period of 5 years . the investment board shall be responsible to determine an union - level investment policy , appropriate financing instruments and investment selection criteria . the management committee shall be responsible for the day - to - day management of the fund . ### the beneficiary member states shall be responsible for the governance of the fund . they shall be assisted by an advisory board , which shall be composed of representatives from the beneficiary member states , the commission , the eib , three experts selected by the other member states for a period of 5 years and three individuals from interested parties without voting rights . the advisory board shall take into account member states circumstances and specificities and shall guarantee procedural transparency and accountability of the selection process . the beneficiary member states shall be responsible for the day - to - day management of the fund .


### to preserve the environmental benefit of emission reductions in the union while actions by other countries do not provide comparable incentives to industry to reduce emissions , free allocation should continue to installations in sectors and sub - sectors at genuine risk of carbon leakage . experience gathered during the operation of the eu ets confirmed that sectors and sub - sectors are at risk of carbon leakage to varying degrees , and that free allocation has prevented carbon leakage . while some sectors and sub - sectors can be deemed at a higher risk of carbon leakage , others are able to pass on a considerable share of the costs of allowances to cover their emissions in product prices without losing market share and only bear the remaining part of the costs so that they are at a low risk of carbon leakage . the commission should determine and differentiate the relevant sectors based on their trade intensity and their emissions intensity to better identify sectors at a genuine risk of carbon leakage . where , based on these criteria , a threshold determined by taking into account the respective possibility for sectors and sub - sectors concerned to pass on costs in product prices is exceeded , the sector or sub - sector should be deemed at risk of carbon leakage . others should be considered at a low risk or at no risk of carbon leakage . taking into account the possibilities for sectors and sub - sectors outside of electricity generation to pass on costs in product prices should also reduce windfall profits . ### to preserve the environmental benefit of emission reductions in the union while actions by other countries do not provide comparable incentives to industry to reduce emissions , free allocation should continue to installations in sectors and sub - sectors at genuine risk of carbon leakage . the aim of the free allocation is not to give operational subsidies to the firm but to incentivize and finance investments in mitigation technologies against climate change in the industry . the commission should determine the relevant sectors at a genuine risk of carbon leakage . where a certain threshold is exceeded , the sector or sub - sector should be deemed at risk of carbon leakage . others should be considered at no risk of carbon leakage .


### the commission shall be empowered to adopt a delegated act in accordance with article 23 . this act shall also provide for additional allocation from the new entrants reserve for significant production increases by applying the same thresholds and allocation adjustments as apply in respect of partial cessations of operation . ### the commission shall be empowered to adopt a delegated act in accordance with article 23 . this act shall also provide for additional allocation from the new entrants reserve for significant production changes . any 10% increase or decrease in production expressed as a rolling average of verified production data for the two preceding years compared to the production activity reported in accordance with article 11 should be adjusted with a corresponding amount of allowances by placing allowances into and releasing allowances from the reserve referred to in paragraph 7 .


### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of ccs and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed . ### the allowances shall be made available for the entire range of innovation in low - carbon industrial technologies and processes and concepts for existing and new installations as well as support for demonstration projects for the development of a wide range of ccs , ccu and innovative renewable energy technologies and concepts that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 75% of the relevant costs of projects may be supported , out of which up to 55% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed .


### sectors and sub - sectors where the product exceeds 0 . 2 from multiplying their intensity of trade with third countries , defined as the ratio between the total value of exports to third countries plus the value of imports from third countries and the total market size for the european economic area , by their emission intensity , measured in kgco2 divided by their gross value added , shall be deemed to be at risk of carbon leakage . such sectors and sub - sectors shall be allocated allowances free of charge for the period up to 2030 at 100% of the quantity determined in accordance with the measures adopted pursuant to article 10a . ### sectors where their intensity of trade with third countries exceeds 15% , defined as the ratio between the total value of exports to third countries plus the value of imports from third countries and the total market size for the european economic area , and their emission intensity exceeds 5 , 5 , measured in kgco2 divided by their gross value added , shall be deemed to be at very high risk of carbon leakage . such sectors and sub - sectors shall be allocated allowances free of charge for the period up to 2030 at 100% of the quantity determined in accordance with the measures adopted pursuant to article 10a


### the investments supported shall be consistent with the aims of this directive and the european fund for strategic investments . ### the investments supported shall be consistent with the aims of this directive , the european fund for strategic investments and the energy union .


### the fund shall also finance small - scale investment projects in the modernisation of energy systems and energy efficiency . to this end , the investment board shall develop guidelines and investment selection criteria specific to such projects . ### the fund shall also finance small - scale investment projects in the modernisation of energy systems and energy efficiency . to this end , the beneficiary member states shall develop national rules , guidelines and investment selection criteria specific to such projects in line with the objectives of the fund and with the criteria set in paragraph 1 of this article , while taking due account of the opinion of the advisory board referred to in paragraph 4 .


### the european council confirmed that the modalities , including transparency , of the optional free allocation to modernise the energy sector in certain member states should be improved . investments with a value of €10 million or more should be selected by the member state concerned through a competitive bidding process on the basis of clear and transparent rules to ensure that free allocation is used to promote real investments modernising the energy sector in line with the energy union objectives . investments with a value of less than €10 million should also be eligible for funding from the free allocation . the member state concerned should select such investments based on clear and transparent criteria . the results of this selection process should be subject to public consultation . the public should be duly kept informed at the stage of the selection of investment projects as well as of their implementation . ### the european council confirmed that the modalities , including transparency , of the optional free allocation to modernise the energy sector in certain member states should be improved . investments with a value of €20 million or more should be selected by the member state concerned through a competitive bidding process on the basis of clear and transparent rules to ensure that free allocation is used to promote real investments modernising the energy sector in line with the energy union objectives . investments with a value of less than €20 million should also be eligible for funding from the free allocation . the member state concerned should select such investments based on clear and transparent criteria . the results of this selection process should be subject to public consultation . the public should be duly kept informed at the stage of the selection of investment projects as well as of their implementation .


### the european council confirmed that the modalities , including transparency , of the optional free allocation to modernise the energy sector in certain member states should be improved . investments with a value of €10 million or more should be selected by the member state concerned through a competitive bidding process on the basis of clear and transparent rules to ensure that free allocation is used to promote real investments modernising the energy sector in line with the energy union objectives . investments with a value of less than €10 million should also be eligible for funding from the free allocation . the member state concerned should select such investments based on clear and transparent criteria . the results of this selection process should be subject to public consultation . the public should be duly kept informed at the stage of the selection of investment projects as well as of their implementation . ### the european council confirmed that the modalities , including transparency , of the optional free allocation to modernise the energy sector in certain member states should be improved . investments with a value of €10 million or more should be selected by the member state concerned through a competitive bidding process on the basis of clear and transparent rules to ensure that free allocation is used to promote real investments modernising the energy sector in line with the energy union objectives . the list of projects , both selected and not , should be public . investments with a value of less than €10 million should also be eligible for funding from the free allocation . the member state concerned should select such investments based on clear and transparent criteria set in this directive . the results of this selection process should be subject to public consultation . the public should be duly kept informed at the stage of the selection of investment projects as well as of their implementation .


### sectors and sub - sectors where the product exceeds 0 . 2 from multiplying their intensity of trade with third countries , defined as the ratio between the total value of exports to third countries plus the value of imports from third countries and the total market size for the european economic area , by their emission intensity , measured in kgco2 divided by their gross value added , shall be deemed to be at risk of carbon leakage . such sectors and sub - sectors shall be allocated allowances free of charge for the period up to 2030 at 100% of the quantity determined in accordance with the measures adopted pursuant to article 10a . ### to determine the exposure to risk of carbon leakage for sectors and sub - sectors and in view of avoiding windfall profits , their intensity of trade with third countries , defined as the ratio between the total value of exports to third countries plus the value of imports from third countries and the total market size for the european economic area , shall be multiplied by their emission intensity , measured in kgco2 divided by their gross value added . if this product exceeds 1 . 6 , these sectors and sub - sectors shall be deemed at high risk of carbon leakage and be allocated allowances free of charge for the period up to 2030 at 100% of the quantity determined in accordance with the measures adopted pursuant to article 10a . if this product exceeds 0 . 9 , these sectors and sub - sectors shall be deemed at medium risk of carbon leakage and be allocated allowances free of charge for the period up to 2030 at 75% of the quantity determined in accordance with the measures adopted pursuant to article 10a . if this product exceeds 0 . 2 , these sectors and sub - sectors shall be deemed at low risk of carbon leakage and be allocated allowances free of charge for the period up to 2030 at 50% of the quantity determined in accordance with the measures adopted pursuant to article 10a . if this product is below 0 , 2 , these sectors and sub - sectors shall be deemed at insignificant risk of carbon leakage and shall not be allocated allowances free of charge for the period up to 2030 .


### the funds shall be distributed based on a combination of a 50% share of verified emissions and a 50% share of gdp criteria , leading to the distribution set out in annex iib . ### the eib is responsible for the monetization of the 2% allowances referred to in article 10 in equal volumes each year of the period 2021 - 2030 . the monetization calendar should be defined in consultation with the beneficiary member states . the funds shall be distributed among the beneficiary member states based on a combination of a 50% share of verified emissions and a 50% share of gdp criteria , leading to the distribution set out in annex iib .


### to preserve the environmental benefit of emission reductions in the union while actions by other countries do not provide comparable incentives to industry to reduce emissions , free allocation should continue to installations in sectors and sub - sectors at genuine risk of carbon leakage . experience gathered during the operation of the eu ets confirmed that sectors and sub - sectors are at risk of carbon leakage to varying degrees , and that free allocation has prevented carbon leakage . while some sectors and sub - sectors can be deemed at a higher risk of carbon leakage , others are able to pass on a considerable share of the costs of allowances to cover their emissions in product prices without losing market share and only bear the remaining part of the costs so that they are at a low risk of carbon leakage . the commission should determine and differentiate the relevant sectors based on their trade intensity and their emissions intensity to better identify sectors at a genuine risk of carbon leakage . where , based on these criteria , a threshold determined by taking into account the respective possibility for sectors and sub - sectors concerned to pass on costs in product prices is exceeded , the sector or sub - sector should be deemed at risk of carbon leakage . others should be considered at a low risk or at no risk of carbon leakage . taking into account the possibilities for sectors and sub - sectors outside of electricity generation to pass on costs in product prices should also reduce windfall profits . ### to preserve the environmental benefit of emission reductions in the union while actions by other countries do not provide comparable incentives to industry to reduce emissions , free allocation at benchmark levels of efficiency should continue to installations in sectors and sub - sectors at genuine risk of carbon leakage . the commission should determine the relevant sectors based on their trade intensity and their emissions intensity to better identify sectors at a genuine risk of carbon leakage such that best performers can produce and grow without incurring a carbon cost penalty . where , based on these criteria , a threshold determined by taking into account the respective possibility for sectors and sub - sectors concerned to pass on costs in product prices is exceeded , the sector or sub - sector should be deemed at risk of carbon leakage .


### 400 million allowances shall be available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe capture and geological storage of co2 as well as demonstration projects of innovative renewable energy technologies , in the territory of the union . ### 600 million allowances shall be available to leverage investment in support innovation in low - carbon products , technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration and pilot projects that aim at the environmentally safe capture and geological storage of co2 or the environmentally safe capture and re - use of co2 , as well as demonstration and pilot projects of innovative renewable energy technologies and energy storage , in the territory of the union . the leveraging can take the form of future contracts based on an anticipated co2 price of 30 euros / t by 2030 and guaranteed / refundable by the ecb .


### the auctioning of allowances remains the general rule , with free allocation as the exception . consequently , and as confirmed by the european council , the share of allowances to be auctioned , which was 57% over the period 2013 - 2020 , should not be reduced . the commission ' s impact assessment18 provides details on the auction share and specifies that this 57% share is made up of allowances auctioned on behalf of member states , including allowances set aside for new entrants but not allocated , allowances for modernising electricity generation in some member states and allowances which are to be auctioned at a later point in time because of their placement in the market stability reserve established by decision 2015 / … of the european parliament and of the council19 . __________________ 19 decision 2015 / … of the european parliament and of the council of … concerning the establishment and operation of a market stability reserve for the union greenhouse gas emission trading scheme and amending directive 2003 / 87 / ec . ### the share of allowances to be auctioned should be the 52% . this 52% share is made up of allowances auctioned on behalf of member states , including allowances set aside for new entrants but not allocated , allowances for modernising electricity generation in some member states and allowances which are to be auctioned at a later point in time because of their placement in the market stability reserve established by decision 2015 / 1814 of the european parliament and of the council 19 . __________________ 19 decision 2015 / 1814 of the european parliament and of the council of 6 october 2015 concerning the establishment and operation of a market stability reserve for the union greenhouse gas emission trading scheme and amending directive 2003 / 87 / ec .


### 400 million allowances shall be available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe capture and geological storage of co2 as well as demonstration projects of innovative renewable energy technologies , in the territory of the union . ### 600 million allowances shall be available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe capture and geological storage and use of co2 and demonstration projects of innovative renewable energy technologies , as well as electric batteries and smart grid infrastructures notably for the deployment of electric mobility , in the territory of the union .


### article 191 of the treaty on the functioning of the european union requires that union policy is based on the principle that the polluter should pay and , on this basis , directive 2003 / 87 / ec provides for a transition to full auctioning over time . avoiding carbon leakage is a justification to postpone full transition , and targeted free allocation of allowances to industry is justified in order to address genuine risks of increases in greenhouse gas emissions in third countries where industry is not subject to comparable carbon constraints as long as comparable climate policy measures are not undertaken by other major economies . ### article 191 of the treaty on the functioning of the european union requires that union policy is based on the principle that the polluter should pay and , on this basis , directive 2003 / 87 / ec provides for a transition to full auctioning over time . avoiding carbon leakage and the risk of ' investment attentism ' is a justification to postpone full transition , and targeted free allocation of allowances to industry is justified in order to address genuine risks of increases in greenhouse gas emissions in third countries where industry is not subject to comparable carbon constraints as long as comparable climate policy measures are not undertaken by other major economies .


### in order to respect the auctioning share set out in article 10 , the sum of free allocations in every year where the sum of free allocations does not reach the maximum level that respects the member state auctioning share , the remaining allowances up to that level shall be used to prevent or limit reduction of free allocations to respect the member state auctioning share in later years . where , nonetheless , the maximum level is reached , free allocations shall be adjusted accordingly . any such adjustment shall be done in a uniform manner . ### in order to respect the auctioning share set out in article 10 , the sum of free allocations in every year where the sum of free allocations does not reach the maximum level that respects the member state auctioning share , the remaining allowances up to that level shall be used to prevent or limit reduction of free allocations to respect the member state auctioning share in later years . where , nonetheless , the maximum level is reached , free allocations shall be adjusted accordingly . any such adjustment shall be done in a uniform manner . the commission shall assess the effects on supply and demand for share .


### a fund to support investments in modernising energy systems and improving energy efficiency in member states with a gdp per capita below 60% of the union average in 2013 shall be established for the period 2021 - 30 and financed as set out in article 10 . ### a fund to support investments in modernising energy systems and improving energy efficiency in member states with a gdp per capita below 60% of the union average in 2013 or in 2014 , or in 2015 , shall be established for the period 2021 - 30 and financed as set out in article 10 .


### the commission shall be empowered to adopt a delegated act in accordance with article 23 . this act shall also provide for additional allocation from the new entrants reserve for significant production increases by applying the same thresholds and allocation adjustments as apply in respect of partial cessations of operation . ### the commission shall be empowered to adopt a delegated act in accordance with article 23 . this act shall also provide for additional allocation from the new entrants reserve for significant production increases by applying the same thresholds and allocation adjustments as apply in respect of partial cessations of operation . the act shall also provide for measures for the transfer of allowances in the event of plant rationalisation . thresholds and reference years should allow for the use of recent production data .


### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of ccs and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed . ### the allowances shall be made available for innovation in low - carbon industrial products , technologies and processes in existing and new installations and support for demonstration and pilot projects for the development of a wide range of ccs , ccu and innovative renewable energy technologies that are not yet commercially viable , ensuring a degree of geographical and sectoral balance in geographically balanced locations . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed .


### other sectors and sub - sectors are considered to be able to pass on more of the cost of allowances in product prices , and shall be allocated allowances free of charge for the period up to 2030 at 30% of the quantity determined in accordance with the measures adopted pursuant to article 10a . ### other sectors and sub - sectors are considered not at risk of carbon leakage and shall not be allocated allowances free of charge for the period up to 2030 .


### other sectors and sub - sectors are considered to be able to pass on more of the cost of allowances in product prices , and shall be allocated allowances free of charge for the period up to 2030 at 30% of the quantity determined in accordance with the measures adopted pursuant to article 10a . ### other sectors and sub - sectors are considered to be able to pass on more of the cost of allowances in product prices , and shall not be allocated allowances free of charge for the period up to 2030 .


### 400 million allowances shall be available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe capture and geological storage of co2 as well as demonstration projects of innovative renewable energy technologies , in the territory of the union . ### 400 million allowances from the share of allowances to be allocated for free shall be made available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe capture and geological storage of co2 as well as demonstration projects of innovative renewable energy technologies , in the territory of the union .


### the fund shall be governed by an investment board and a management committee , which shall be composed of representatives from the beneficiary member states , the commission , the eib and three representatives elected by the other member states for a period of 5 years . the investment board shall be responsible to determine an union - level investment policy , appropriate financing instruments and investment selection criteria . the management committee shall be responsible for the day - to - day management of the fund . ### the fund shall be governed by the beneficiary member states assisted by an advisory board , which shall be composed of representatives from the beneficiary member states and bei . the advisory board shall be responsible to elaborate guidelines in relation to objectives of the union - level investment policy related to this fund and investment selection criteria which should take into account national circumstances .


### the commission shall be empowered to adopt a delegated act in accordance with article 23 . ### the commission shall be empowered to adopt a delegated act in accordance with article 23 , taking due account of the following principles : - projects should focus on research and innovation for the design and development of breakthrough solutions and implementation of demonstration programmes , including in real industrial environments ; - projects should deliver ambitious reduction in specific ghg emission intensity of at least 20% , with respect to the best available technologies ; - the activities should run close - to - market in production plants to demonstrate the viability of breakthrough technologies in overcoming the technological as well as non - technological barriers ; - projects should address technological solutions that could have widespread applications and may combine different technologies ; - solutions and technologies should ideally have the potentials to be transferred within the sector and possibly to other sectors .


### the main long - term incentive from this directive for the capture and storage of co2 , new renewable energy technologies and breakthrough innovation in low - carbon technologies and processes is the carbon price signal it creates and that allowances will not need to be surrendered for co2 emissions which are permanently stored or avoided . in addition , to supplement the resources already being used to accelerate demonstration of commercial ccs facilities and innovative renewable energy technologies , eu ets allowances should be used to provide guaranteed rewards for deployment of ccs facilities , new renewable energy technologies and industrial innovation in low - carbon technologies and processes in the union for co2 stored or avoided on a sufficient scale , provided an agreement on knowledge sharing is in place . the majority of this support should be dependent on verified avoidance of greenhouse gas emissions , while some support may be given when pre - determined milestones are reached taking into account the technology deployed . the maximum percentage of project costs to be supported may vary by category of project . ### the main long - term incentive from this directive for the capture and storage of co2 , capture and re - use of co2 , new renewable energy and substitution technologies and breakthrough innovation in low - carbon technologies , bio - based materials and products substituting carbon intensive materials and processes is the carbon price signal it creates and that allowances will not need to be surrendered for co2 emissions which are permanently stored or avoided . in addition , to supplement the resources already being used to accelerate demonstration of commercial ccs / ccu facilities and innovative renewable energy technologies , eu ets allowances should be used to provide guaranteed rewards for deployment of ccs / ccu facilities , new renewable energy technologies and industrial innovation in low - carbon technologies and processes in the union for co2 stored or avoided on a sufficient scale , provided an agreement on knowledge sharing is in place . the majority of this support should be dependent on verified avoidance of greenhouse gas emissions , while some support may be given when pre - determined milestones are reached taking into account the technology deployed . the maximum percentage of project costs to be supported may vary by category of project .


### the beneficiary member states shall report annually to the management committee on investments financed by the fund . the report shall be made public and include : ### the beneficiary member states shall report annually to the advisory board on investments financed by the fund . the report shall be made public and include :


### sectors and sub - sectors where the product exceeds 0 . 2 from multiplying their intensity of trade with third countries , defined as the ratio between the total value of exports to third countries plus the value of imports from third countries and the total market size for the european economic area , by their emission intensity , measured in kgco2 divided by their gross value added , shall be deemed to be at risk of carbon leakage . such sectors and sub - sectors shall be allocated allowances free of charge for the period up to 2030 at 100% of the quantity determined in accordance with the measures adopted pursuant to article 10a . ### to determine the exposure to risk of carbon leakage for sectors and sub - sectors and in view of avoiding windfall profits , their intensity of trade with third countries , defined as the ratio between the total value of exports to third countries plus the value of imports from third countries and the total market size for the european economic area , shall be multiplied by their emission intensity , measured in kgco2 divided by their gross value added . if this product exceeds 2 , 5 , these sectors and sub - sectors shall be deemed at high risk of carbon leakage and be allocated allowances free of charge for the period up to 2030 at 100% of the quantity determined in accordance with the measures adopted pursuant to article 10a . if this product exceeds 1 . 0 , these sectors and sub - sectors shall be deemed at medium risk of carbon leakage and be allocated allowances free of charge for the period up to 2030 at 80% of the quantity determined in accordance with the measures adopted pursuant to article 10a . if this product exceeds 0 , 2 , these sectors and sub - sectors shall be deemed at low risk of carbon leakage and be allocated allowances free of charge for the period up to 2030 at 60% of the quantity determined in accordance with the measures adopted pursuant to article 10a . if this product is below 0 , 2 , these sectors and sub - sectors shall be deemed at insignificant risk of carbon leakage and shall not be allocated allowances free of charge for the period up to 2030 .


### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of ccs and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed . ### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of ccs , ccu , energy efficiency savings and innovative renewable energy technologies / concepts that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 75% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed .


### by 31 december 2019 , the commission shall adopt a delegated act for the preceding paragraphs for activities at a 4 - digit level as concerns paragraph 1 , in accordance with article 23 , based on data for the three most recent calendar years available . ### by 31 december 2019 , the commission shall adopt a delegated act for the preceding paragraphs for activities at a 4 - digit level as concerns paragraph 1 , in accordance with article 23 , based on data for the three most recent calendar years available . in cases of marked heterogeneity within certain nace - 4 level subsectors , as evidenced by i . e . substantially different energy consumption and emission profile characteristics , evaluations shall also be performed at prodcom level to ensure that products with similar characteristics in different nace 4 subsectors are treated equally , and that emissions profiles for the entire production chain is taken into account .


### eu ets funding should be coherent with other union funding programmes , including european structural and investment funds , so as to ensure the effectiveness of public spending . ### eu ets funding should be consistent with the with the european and member states ' climate and energy policy objectives and in line with the goals of the energy union with forward looking climate policy and other union funding programmes , so as to ensure the effectiveness of public spending .


### specific conservation measures for groups 3 to 7 ### specific conservation measures


### no less than five years after the entry into force of this regulation , and every five years thereafter , the commission shall ensure an evaluation of the impact of the plan on the stocks to which this regulation applies and on the fisheries exploiting those stocks . it shall submit the results of this evaluation to the european parliament and to the council . ### no less than three years after the entry into force of this regulation , and every five years thereafter , the commission shall ensure an evaluation of the impact of the plan on the stocks to which this regulation applies and on the fisheries exploiting those stocks . it shall submit the results of this evaluation to the european parliament and to the council .


### cod in subarea iv and divisions viid and iiia west , hereafter referred to as north sea cod ; ### cod in subarea iv and divisions viid and iiia west , hereafter referred to as cod in subarea iv and divisions viid and iiia west ;


### in the absence of scientific advice on fishing mortality rate consistent with maximum sustainable yield , fishing opportunities shall be consistent with scientific advice to ensure the sustainability of the stocks in line with the precautionary approach . ### in the absence of scientific advice and data on the fishing mortality rate consistent with maximum sustainable yield , fishing opportunities and measures shall be decided on in line with the precautionary approach set out in article 4 of regulation no 1380 / 2013 , and in keeping with the targets set in article 3 of this regulation .


### where the targets relating to msy are not available , the precautionary approach should apply . ### where the targets relating to the maximum sustainable yield are not available , the multi - annual plan should establish measures on the basis of the precautionary approach as defined in article 4 of regulation no 1380 / 2013 . these measures must guarantee a degree of conservation of the relevant stocks that is at least comparable to exploitation rates in accordance with the maximum sustainable yield , as set out in article 9 of regulation no 1380 / 2013 .


### without prejudice to article 8 , the tac for the stock of norway lobster in ices zones iia and iv shall be the sum of the catch limits of the functional units and of the statistical rectangles outside the functional units . ### for the stock of norway lobster in ices zones iia and iv , catch limits for each functional unit and a joint tac for the statistical rectangles outside the functional units shall be established .


### the plan shall contribute to the achievement of the objectives of the common fisheries policy listed in article 2 of regulation no 1380 / 2013 , in particular by applying the precautionary approach to fisheries management , and shall aim to ensure that exploitation of living marine biological resources restores and maintains populations of harvested species above levels which can produce the maximum sustainable yield . ### the plan shall contribute to the achievement of the objectives of the common fisheries policy listed in article 2 of regulation no 1380 / 2013 , in particular by applying the precautionary approach to fisheries management in accordance with article 4 of regulation no 1380 / 2013 , and shall aim to ensure that exploitation of living marine biological resources restores and maintains populations of harvested species above levels which can produce the maximum sustainable yield . the level of fishing which allows the maximum sustainable yield is to be achieved , as quickly as possible and , on a gradual , incremental basis by 2020 at the latest for all stocks affected by this regulation under all circumstances , and it is to be maintained from that point in time . for stocks where no scientific advice and data exist , the targets set in article 9 of regulation no 1380 / 2013 are to be met . those targets guarantee that the relevant stocks will be preserved at a level which is at least comparable with the targets for the highest sustainable yield .


### annex i target fishing mortality group 1 2 . group 2 ### annex i target fishing mortality group 1 figures in the table come from the most recent ices special request advice , the “eu request to ices to provide fmsy ranges for selected north sea and baltic sea stocks” 2 . group 2 figures in the table come from the most recent ices special request advice , the “eu request to ices to provide fmsy ranges for selected north sea and baltic sea stocks”


### stocks of group 5 shall be managed based on the precautionary approach in line with scientific advice . ### stocks of group 5 shall be managed based on the precautionary approach under article 4 of regulation no 1380 / 2013 , and in accordance with the targets set in article 3 and article 3 of this regulation .


### when scientific advice indicates that the spawning stock biomass of any of the stocks concerned is below the blim or the abundance of any of the norway lobster functional units is below abundancelimit as set out in annex ii , column b to this regulation , further appropriate remedial measures shall be taken to ensure rapid return of the stock or functional unit concerned to levels above the level capable of producing maximum sustainable yield . in particular , those remedial measures shall include , by way of derogation from paragraphs 2 and 4 of article 4 , suspending the targeted fishery for the stock concerned and the adequate reduction of fishing opportunities . ### when the best available scientific advice indicates that the spawning stock biomass of any of the stocks concerned is below the blim or the abundance of any of the norway lobster functional units is below abundancelimit as set out in annex ii , column b to this regulation , further appropriate remedial measures shall be taken to ensure rapid return of the stock or functional unit concerned to levels above the level capable of producing maximum sustainable yield . in particular , those remedial measures shall include , by way of derogation from paragraphs 2 and 4 of article 4 , suspending the targeted fishery for the stock concerned and the adequate reduction of fishing opportunities .


### fishing opportunities for the stocks of groups 3 and 4 shall be consistent with scientific advice related to maximum sustainable yield . ### fishing opportunities for the stocks of groups 3 and 4 shall be consistent with the best available scientific advice related to maximum sustainable yield .


### saithe in subareas iv and vi and division iiia , hereafter referred to as saithe ; ### saithe in subareas iv and vi and in division iiia , hereafter referred to as saithe in subareas iv and vi and division iiia ;


### if , on the basis of scientific advice or evidence , it is necessary to avoid serious harm to a stock caused by intra - or inter - species stock dynamics ; or ### if , on the basis of the best available scientific advice , it is necessary to avoid serious harm to a stock caused by intra - or inter - species stock dynamics ; or


### the target fishing mortality shall be achieved as soon as possible , and on a progressive , incremental basis by 2020 for the stocks of groups 1 and 2 , and shall be maintained thereafter within the ranges set out in annex i . ### the target fishing mortality shall be achieved as soon as possible , and on a progressive , incremental basis by 2020 for the stocks of groups 1 and 2 , and shall be maintained thereafter within the ranges set out in annex i and shall comply with the goals set out in article 3 .


### if , on the basis of scientific advice or evidence , it is necessary for the achievement of the objectives laid down in article 3 in the case of mixed fisheries ; ### if , on the basis of the best available scientific advice , it is necessary for the achievement of the objectives laid down in article 3 in the case of mixed fisheries ;


### when scientific advice indicates that remedial action is required for the conservation of any of the demersal stocks of groups 3 to 7 , or when the spawning biomass of any of the stocks in group 1 or abundance of any of the functional units in group 2 for a given year is below the conservation reference points set out in annex ii , column a to this regulation , the commission is empowered to adopt delegated acts in accordance with article 18 of this regulation and article 18 of regulation no 1380 / 2013 regarding : ### when the best available scientific advice indicates that remedial action is required to ensure that all stocks to which this regulation applies are managed in accordance with the objectives set out in article 3 of this regulation , the commission is empowered to adopt delegated acts in accordance with article 18 of this regulation and article 18 of regulation no 1380 / 2013 regarding :


### when scientific advice indicates that for a given year the spawning biomass of any of the stocks in group 1 is below the msy btrigger or that the abundance of any of the functional units in group 2 is below the abundancebuffer set out in annex ii , column a , all appropriate remedial measures shall be adopted to ensure rapid return of the stock or functional unit concerned to levels above those capable of producing maximum sustainable yield . in particular , by way of derogation from article 4 fishing opportunities shall be set at levels consistent with a fishing mortality , taking into account the decrease in biomass or abundance , that is reduced below the range laid down in annex i , column a . ### when the best available scientific advice indicates that for a given year the spawning biomass of any of the stocks in group 1 is below the msy btrigger or that the abundance of any of the functional units in group 2 is below the abundancebuffer set out in annex ii , column a , all appropriate remedial measures shall be adopted to ensure rapid return of the stock or functional unit concerned to levels above those capable of producing maximum sustainable yield . in particular , by way of derogation from article 4 fishing opportunities shall be set at levels consistent with a fishing mortality , taking into account the decrease in biomass or abundance , that is reduced below the range laid down in annex i , column a in proportion to the decrease in biomass , following the ices advice rule . the ices advice rule under article 2 of this regulation shall apply .


### &#8220 ; demersal stocks&#8221 ; means : those roundfish and flatfish species and norway lobster that live at or near the bottom of the water column . ### &#8220 ; demersal stocks&#8221 ; means : those roundfish , flatfish and cartilaginous fish species , norway lobster and northern prawn that live at or near the bottom of the water column .


### contribute to the fulfilment of other relevant descriptors contained in annex i to directive 2008 / 56 / ec in proportion to the role played by fisheries in their fulfilment . ### the fulfilment of other relevant descriptors contained in annex i to directive 2008 / 56 / ec in proportion to the role played by fisheries in their fulfilment .


### sole in subarea iv , hereafter referred to as north sea sole ; ### sole in subarea iv , hereafter referred to as sole in subarea iv ;


### haddock in subarea iv and divisions via and iiia west hereafter referred to as haddock ; ### haddock in subarea iv and divisions via and iiia west hereafter referred to as haddock in subarea iv and divisions via and iiia west ;


### in order to comply with the landing obligation established by article 15 of regulation no 1380 / 2013 , the plan should provide for additional management measures . ### in order to comply with the landing obligation established by article 15 of regulation no 1380 / 2013 , the plan should provide for other conservation measures , in particular measures to gradually eliminate discards , taking into account the best available scientific advice , or to minimise the negative impact of fishing on the ecosystem , to be further specified , where appropriate , in accordance with article 18 of regulation no 1380 / 2013 .


### whiting in subarea iv and division viid , hereafter referred to as north sea whiting . ### whiting in subarea iv and division viid , hereafter referred to as whiting in subarea iv and division viid ; .


### sole in division iiia and subdivisions 22–24 , hereafter referred to as kattegat sole ; ### sole in division iiia and subdivisions 22–24 , hereafter referred to as sole in division iiia and subdivisions 22 - 24 ;


### periodic measurements of so2 , nox and particulate matter shall be required at least every three years for medium combustion plants the rated thermal input of which is greater than 1 mw and less than 20 mw , and at least annually for medium combustion plants the rated thermal input of which is equal to or greater than 20 mw but less than 50 mw . ### periodic measurements of so2 , nox and particulate matter shall be required at least every two years for medium combustion plants the rated thermal input of which is greater than 1 mw and less than 5 mw , and at least annually for medium combustion plants the rated thermal input of which is equal to or greater than 5 mw but less than 50 mw .


### in case the second subparagraph of article 5 is used , a declaration signed by the operator to operate the plant not more than 300 hours per year ; ### in case the third subparagraph of article 5 or the second subparagraph of article 5 are used , a declaration signed by the operator to operate the plant not more than 500 hours per year ;


### measurements are only required for pollutants for which an emission limit value is laid down in annex ii for the plant concerned . ### member states shall take the necessary measures to ensure that measurements are carried out also for carbon monoxide .


### ‘ operating hours’ means the time , expressed in hours , during which a combustion plant is discharging emissions into the air ; ### ‘ operating hours’ means the time , expressed in hours , during which a combustion plant is operating and discharging emissions into the air , excluding start - up and shut - down periods ;


### in order to ensure the control of emissions of sulphur dioxide , nitrogen oxides and particulate matter into the air , each medium combustion plant should operate only if it is at least registered by the competent authority , based on notification by the operator . ### in order to ensure the control of emissions of sulphur dioxide , nitrogen oxides and particulate matter into the air , each medium combustion plant should operate only if it is at least registered by the competent authority or if it has been granted a permit by that authority , based on notification by the operator .


### periodic measurements of so2 , nox and particulate matter shall be required at least every three years for medium combustion plants the rated thermal input of which is greater than 1 mw and less than 20 mw , and at least annually for medium combustion plants the rated thermal input of which is equal to or greater than 20 mw but less than 50 mw . ### periodic measurements of so2 , nox , co and particulate matter shall be required at least every three years for medium combustion plants the rated thermal input of which is greater than 1 mw and less than 20 mw , and at least annually for medium combustion plants the rated thermal input of which is equal to or greater than 20 mw but less than 50 mw .


### the commission in its communication a digital single market strategy for europe30 and in its communication eu e - government action plan 2016 - 2020 : accelerating the digital transformation of government31 stressed the role of public administrations in helping businesses to easily set up business , operate online and expand across borders . the eu e - government action plan specifically recognised the importance of improving the use of digital tools when complying with company law related requirements . furthermore , in the 2017 tallinn declaration on egovernment , member states made a strong call to step up efforts for the provision of efficient , user - centric electronic procedures in the union . __________________ 30 com 192 final of 6 may 2015 . 31 com 179 final of 19 april 2016 . ### the commission in its communication a digital single market strategy for europe30 and in its communication eu e - government action plan 2016 - 2020 : accelerating the digital transformation of government31 stressed the role of public administrations in helping entrepreneurs to easily set up business , operate online and expand across borders . the eu e - government action plan specifically recognised the importance of improving the use of digital tools when complying with company law related requirements . furthermore , in the 2017 tallinn declaration on egovernment , member states made a strong call to step up efforts for the provision of efficient , user - centric electronic procedures in the union . __________________ 30 com 192 final of 6 may 2015 . 31 com 179 final of 19 april 2016 .


### enabling the fully online registration of companies and branches and the fully online filing of documents and information would allow companies to use digital tools in their contacts with competent authorities of member states . in order to enhance trust , member states should ensure that secure electronic identification and the use of trust services is possible for national as well as cross - border users in accordance with regulation no 910 / 2014 of the european parliament and of the council34 . furthermore , in order to enable cross - border electronic identification , member states should set up electronic identification schemes which provide for authorised electronic identification means . such national schemes would be used as a basis for the recognition of electronic identification means issued in another member state . in order to ensure the high level of trust in cross - border situations , only electronic identification means which comply with article 6 of regulation no 910 / 2014 should be recognised . however , member states may also recognise other identification means such as a scanned copy of a passport . in any event , this directive should only oblige member states to enable online registration of companies and their branches and online filing by union citizens through the recognition of their electronic identification means . _________________ 34 regulation no 910 / 2014 of the european parliament and of the council of 23 july 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing directive 1999 / 93 / ec . ### enabling the online registration of companies and branches and the online filing of documents and information would allow companies to use digital tools in their contacts with competent authorities of member states . in order to enhance trust , member states should ensure that secure electronic identification and the use of trust services is possible for national as well as cross - border users in accordance with highest assurance level defined in regulation no 910 / 2014 of the european parliament and of the council34 . furthermore , in order to enable cross - border electronic identification , member states should set up electronic identification schemes which provide for authorised electronic identification means . such national schemes would be used as a basis for the recognition of electronic identification means issued in another member state . in order to ensure the high level of trust in cross - border situations , only electronic identification means which comply with article 6 of regulation no 910 / 2014 should be recognised . however , member states may also recognise other identification means such as identification via videoconference or other online means that provide a real - time audio - visual connection . in any event , this directive should only oblige member states to enable online registration of companies and their branches and online filing by union citizens through the recognition of their electronic identification means . _________________ 34 regulation no 910 / 2014 of the european parliament and of the council of 23 july 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing directive 1999 / 93 / ec .


### member states shall ensure that the online registration is completed within a period of five working days from the later of the following : ### member states shall ensure that the online registration is completed within a period of fifteen working days from the later of the following :


### furthermore , in order to tackle fraud and company hijacking and to provide safeguards for the reliability and trustworthiness of documents and information contained within national registers , provisions concerning the online registration of companies and their branches should also include controls on the identity and legal capacity of persons seeking to establish a company or branch . however , the means and methods to achieve these controls should be left to member states to develop and adopt . those rules could include , amongst others , verification by means of video - conference or other online means that provide a real - time audio - visual connection . to that effect member states should be able to require the involvement of notaries or lawyers as a part of the online registration process , however , such involvement should not prevent the completion of the registration procedure in its entirety online . ### furthermore , in order to tackle fraud , money - laundering and company hijacking and to provide safeguards for the reliability and trustworthiness of documents and information contained within national registers , provisions concerning the online registration of companies and their branches and subsequent online filing should also include legality controls and controls on the identity and legal capacity of persons seeking to establish a company or branch or to file documents and information . however , the means and methods to achieve these controls should be left to member states to develop and adopt . those rules could include , amongst others , verification by means of video - conference or other online means that provide a real - time audio - visual connection . to that effect member states should be able to require the involvement of notaries or lawyers as a part of the online registration and filing process , however , such involvement should not prevent the completion of the registration and filing procedure in its entirety online .


### member states shall ensure that the registration of companies may be carried out fully online without the necessity for the applicants , or their representatives , to appear in person before any competent authority or before any other person or body dealing with the application for registration , subject to the proviso laid down in article 13b . however , member states may decide not to provide fully online registration procedures for those types of companies listed in annex i . ### member states shall ensure that the registration of companies by natural persons may be carried out fully online without the necessity for the applicants to appear in person before any competent authority or before any other person or body dealing with , making or assisting in making the application for registration , subject to the proviso laid down in article 13b . however , member states may decide not to provide fully online registration procedures for those types of companies listed in annex ii other than those listed in annex iia . the online registration of companies by representatives shall be excluded .


### without prejudice to paragraphs 1 to 3 , member states may take measures which could require a physical presence for the purposes of verifying the identity of persons before any authority competent to deal with online registration or online filing , in cases of genuine suspicion of fraud based on reasonable grounds . ### where justified by an overriding reason of public interest , member states may require the applicants or their representatives to appear in person before any competent authority , or before any other person or body dealing with , making or assisting in making the application for registration or filing , for procedural steps for which this physical presence is necessary . member states shall ensure that physical presence may only be required on a case by case basis and that any other steps of the procedure can be completed online .


### in order to respect member states’ existing traditions of company law , it is important to allow flexibility as regards the manner in which they ensure a fully online system of registration of companies and branches , including in relation to the role of notaries or lawyers in such a process . matters concerning online registration of companies and branches which are not regulated in this directive should be governed by national law . ### in order to respect member states’ existing traditions of company law , it is important to allow flexibility as regards the manner in which extend they ensure an online system of registration of companies and branches , including in relation to the role of notaries or lawyers in such a process . matters concerning online registration of companies and branches which are not regulated in this directive should be governed by national law .


### in order to assist businesses , in particular start - ups , in setting - up their business , it should be possible to register a private limited liability company with the use of templates which are model instruments of constitution which should be available online . such models may contain a pre - defined set of options in accordance with national law . the applicants should be able to choose between using this model or registering a company with bespoke instruments of constitution and member states should have the option to provide templates also for other types of companies . ### in order to assist businesses , in particular micro , small , medium - sized companies and start - ups in setting - up their enterprise , it should be possible to register a private limited liability company with the use of pre - defined templates which are model instruments of constitution which should be available online . such models may contain a pre - defined set of options in accordance with national law . the applicants should be able to choose between using this model or registering a company with bespoke instruments of constitution and member states should have the option to provide templates also for other types of companies .


### in order to assist businesses , in particular start - ups , in setting - up their business , it should be possible to register a private limited liability company with the use of templates which are model instruments of constitution which should be available online . such models may contain a pre - defined set of options in accordance with national law . the applicants should be able to choose between using this model or registering a company with bespoke instruments of constitution and member states should have the option to provide templates also for other types of companies . ### in order to assist businesses , in particular start - ups , in setting - up their business , it should be possible to register a private limited liability company with the use of templates which are model instruments of constitution which should be available online in at least one eu language apart from that of the member state concerned . such models may contain a pre - defined set of options in accordance with national law . the applicants should be able to choose between using this model or registering a company with bespoke instruments of constitution and member states should have the option to provide templates also for other types of companies .


### without prejudice to paragraphs 1 to 3 , member states may take measures which could require a physical presence for the purposes of verifying the identity of persons before any authority competent to deal with online registration or online filing , in cases of genuine suspicion of fraud based on reasonable grounds . ### without prejudice to paragraphs 1 to 3 , member states may take measures which could require a physical presence for the purposes of verifying the identity of persons before any authority or natural or legal person appointed as competent to deal with online registration where there is significant and justified concern in the public interest as regards security and law and order , especially when it comes to combating crimes such as money laundering , fraud , tax evasion and opacity connected with the risk of letterbox companies and , more generally , to ensuring more robust monitoring , which can help increase the reliability of business registers .


### in order to respect member states’ existing traditions of company law , it is important to allow flexibility as regards the manner in which they ensure a fully online system of registration of companies and branches , including in relation to the role of notaries or lawyers in such a process . matters concerning online registration of companies and branches which are not regulated in this directive should be governed by national law . ### in order to respect member states’ existing traditions of company law , it is important to allow flexibility as regards the manner in which they ensure a fully online system of registration of companies and branches and filing of documents and information , including in relation to the role of notaries or lawyers in such a process . matters concerning online registration of companies and branches and filing of documents and information , which are not regulated in this directive should be governed by national law .


### member states shall ensure that the templates , referred to in paragraph 1 of this article , may be used by applicants as part of the online registration procedure , referred to in article 13f . where those templates are used by the applicant in compliance with the rules referred to in point of article 13f , where applicable , the requirement to have the company instruments of constitution drawn up and certified in due legal form as laid down in article 10 shall be deemed to be fulfilled . ### member states shall ensure that the templates referred to in paragraph 1 of this article , may be used by applicants as part of the online registration procedure referred to in article 13f , in compliance with the provisions thereof .


### the procedures to provide for the role of a notary or any other person or body mandated by the member state to submit an application for registration ; ### the procedures to provide for the role of a notary or any other person or body involved in the process of registration within the meaning of national law . ”