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


### improving the efficient use of raw materials in production , including through reducing the use of primary raw materials and increasing the use of by - products and waste ; ### improving the efficient use of raw materials&#160 ; in production , including through reducing the use of primary raw materials and increasing the use of by - products and waste , including secondary raw materials ;


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


### transition to a circular economy , waste prevention and recycling ; ### transition to a circular economy , including waste prevention and boosting the uptake of secondary raw materials ;


### an economic activity shall be considered to contribute substantially to the transition to a circular economy and waste prevention and recycling where that activity contributes substantially to that environmental objective through any of the following means : ### an economic activity shall be considered to contribute substantially to the transition to a circular economy and waste prevention and recycling where that activity , in line with the eu waste acquis , contributes substantially to that environmental objective through any of the following means :


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


### the economic activity contributes substantially to one or more of the environmental objectives set out in article 5 in accordance with articles 6 to 11 ; ### the economic activity contributes or will contribute&#160 ; substantially to one or more of the environmental or social objectives set out in article 5 in accordance with articles 6 to 11a ;


### the platform on sustainable finance shall be chaired by the commission . ### the platform on sustainable finance shall follow the principle of rotation and shall be chaired by the commission .


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


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


### significant harm to environmental objectives ### significant harm to environmental and social objectives


### generating , storing or using renewable energy or climate - neutral energy , including through using innovative technology with a potential for significant future savings or through necessary reinforcement of the grid ; ### generating , storing , distributing or using renewable energy or climate - neutral energy , including through using innovative technology with a potential for significant future savings or through necessary reinforcement of the grid ;


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


### the economic activity complies with technical screening criteria , where the commission has specified those in accordance with articles 6 , 7 , 8 , 9 , 10 and 11 . ### the economic activity complies with technical screening criteria , including sustainable performance indicators at company or plant levels belonging to the economic activity , where the commission has specified those in accordance with articles 6 , 7 , 8 , 9 , 10 and 11 . those technical screening criteria shall take into account planned investments pursuing one or more of the environmental objectives set out in article 5 .


### improving water efficiency , facilitating water reuse , or any other activity that protects or improves quality of union’s water bodies in accordance with directive 2000 / 60 / ec ; ### improving water management and efficiency , facilitating water reuse , systems of rainwater management or any other activity that protects or improves quality and quantity of union’s water bodies in accordance with directive 2000 / 60 / ec ;


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


### an economic activity shall be considered to contribute substantially to climate change mitigation where that activity substantially contributes to the stabilization of greenhouse gas concentrations in the atmosphere at a level which prevents dangerous anthropogenic interference with the climate system by avoiding or reducing greenhouse gas emissions or enhancing greenhouse gas removals through any of the following means , including through process or product innovation : ### an economic activity shall be considered to contribute substantially to climate change mitigation where that activity substantially contributes to the stabilization of greenhouse gas concentrations in the atmosphere at a level which prevents dangerous anthropogenic interference with the climate system by avoiding or reducing greenhouse gas emissions or enhancing greenhouse gas removals through any of the following means , including through process or product innovation , work and services , software and maintenance activities ;


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


### the economic activity contributes substantially to one or more of the environmental objectives set out in article 5 in accordance with articles 6 to 11 ; ### the economic activity contributes substantially to one or more of the environmental or social objectives set out in article 5 in accordance with articles 6 to 11 ;


### some economic activities have a negative impact on the environment , and a substantial contribution to one or more environmental objectives can be achieved by reducing that negative impact . for those economic activities , it is appropriate to set out technical screening criteria that require a substantial improvement in environmental performance compared to , inter alia , the industry average . those criteria should consider also the long term impact of a specific economic activity . ### some economic activities have a negative impact on the environment , and a substantial contribution to one or more environmental objectives can be achieved by reducing that negative impact . for those economic activities , it is appropriate to set out technical screening criteria that require a substantial improvement in environmental performance compared to , inter alia , the industry average . those criteria should consider also the long term impact of a specific economic activity , in particular the environmental benefits of products and services and the contribution of intermediate products , and thus provide an assessment of the impact of all the phases of manufacturing and use throughout the value chain and life cycle .


### the economic activity does not significantly harm any of the environmental objectives set out in article 5 in accordance with article 12 ; ### the economic activity does not or will not significantly harm any of the environmental objectives set out in article 5 in accordance with article 12 ;


### to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that all relevant economic activities within a specific sector can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the criteria . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter . ### to encourage environmentally sustainable innovation and to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that relevant economic activities within major economic sectors , including among others agriculture , construction , energy , transportation and production , can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the criteria . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter .


### pollution prevention and control where that activity leads to significant increase in emissions of pollutants to air , water and land , as compared to the situation before this activity started ; ### pollution prevention and control where that activity leads to significant increase in emissions of pollutants to air , water and land or significant consumption of fertile land , as compared to the situation before this activity started ;


### the possible need to revise the criteria set out in this regulation for considering an economic activity environmentally sustainable ; ### the possible need to revise the criteria set out in this regulation for considering an economic activity environmentally or socially sustainable ;


### switching to use of renewable materials ; ### switching to or increasing the use of renewable materials substituting especially fossile based materials ;


### before adopting a delegated act , the commission shall consult experts designated by each member state in accordance with the principles laid down in the interinstitutional agreement of 13 april 2016 on better law - making . ### before adopting a delegated act , the commission shall carry out appropriate consultations , including at public level , during its preparatory work . these consultations shall be conducted in accordance with the principles laid down in the interinstitutional agreement of 13 april 2016 on better law - making . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council receive all documents at the same time as technical and member states experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts ;


### for the purposes of determining whether an economic activity is environmentally sustainable , an exhaustive list of environmental objectives should be laid down . ### for the purposes of determining whether an economic activity is environmentally sustainable , an exhaustive list of environmental objectives should be laid down , ensuring coherence with existing union legislation , such as the clean energy package .


### the power to adopt delegated acts referred to in articles 4 , 6 , 7 , 8 , 9 , 10 and 11 shall be conferred on the commission for an indeterminate period from [ date of entry into force of this regulation ] . ### the power to adopt delegated acts referred to in articles 4 , 6 , 7 , 8 , 9 , 10 and 11 shall be conferred on the commission for an indeterminate period from [ date of entry into force of this regulation ] . the power to adopt delegated acts shall not limit national competence or undermine the principle of subsidiarity , especially in relation to national application of the adopted text of the ministerial conference on the protection of forests in europe .


### protection of healthy ecosystems . ### protection of healthy ecosystems and the remediation of areas of high environmental impact ;


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


### the economic activity contributes substantially to one or more of the environmental objectives set out in article 5 in accordance with articles 6 to 11 ; ### the economic activity contributes or will contribute&#160 ; substantially to one or more of the environmental or social objectives set out in article 5 in accordance with articles 6 to 11a ;


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


### financial market participants offering financial products as environmentally sustainable investments , or as investments having similar characteristics , shall disclose information on how and to what extent the criteria for environmentally sustainable economic activities set out in article 3 are used to determine the environmental sustainability of the investment . where financial market participants consider that an economic activity which does not comply with the technical screening criteria set out in accordance with this regulation or for which those technical screening criteria have not been established yet , should be considered environmentally sustainable , they may inform the commission . ### financial market participants offering financial products shall disclose information in order to define the degree of environmental and social sustainability of those products pursuant to the criteria of article 3 . where financial market participants consider that an economic activity which does not comply with the technical screening criteria set out in accordance with this regulation or for which those technical screening criteria have not been established yet , should be considered environmentally and socially sustainable , they shall inform the commission . financial market participants shall not offer financial products as environmentally or socially sustainable investments , or as investments having similar characteristics , if those products do not qualify as environmentally or socially sustainable .


### financial market participants offering financial products as environmentally sustainable investments , or as investments having similar characteristics , shall disclose information on how and to what extent the criteria for environmentally sustainable economic activities set out in article 3 are used to determine the environmental sustainability of the investment . where financial market participants consider that an economic activity which does not comply with the technical screening criteria set out in accordance with this regulation or for which those technical screening criteria have not been established yet , should be considered environmentally sustainable , they may inform the commission . ### financial market participants offering financial products shall disclose information on whether the products they offer qualify as environmentally sustainable investments pursuant to the criteria of article 3 or as investments having a negative environmental impact pursuant to the criteria set out in article 3a . where financial market participants consider that an economic activity for which technical screening criteria have not been established yet , should be considered environmentally sustainable , they shall inform the commission . financial market participants shall not offer financial products as environmentally sustainable investments , or as investments having similar characteristics , if those products do not qualify as environmentally sustainable .


### activities funded by the participating states through their national funding bodies without union contribution , addressing increasingly also the higher technology readiness levels and consisting in : ### activities funded by the participating states through their national funding bodies without union contribution , addressing low to high technology readiness levels .


### the proposals shall be selected following transnational calls for proposals and through a two - step procedure . step 1 shall consist of a review at national or transnational level of proposals submitted by legal entities eligible for funding under the relevant national programmes . step 2 shall consist of a single independent international peer review organised by the prima - is . under step 2 , the proposals shall be evaluated with the assistance of at least three independent experts , on the basis of the following award criteria : excellence , impact , quality and efficiency of the implementation . ### the proposals shall be selected following transnational calls for proposals and through a two - step procedure . step 1 shall consist of a review at national or transnational level of proposals submitted by legal entities eligible for funding under the relevant national programmes . step 2 shall consist of a single independent international peer review organised by the prima - is . under step 2 , the proposals shall be evaluated with the assistance of at least three independent experts , on the basis of the following selection and award criteria : relevance , scientific and technological excellence , impact , scientific quality and efficiency of the implementation .


### over the period covered by this decision , the eib should endeavour to sustain the current high level of climate - relevant operations , while the minimum volume of those operations shall represent at least 25 % of the total eib financing operations . ### over the period covered by this decision , the eib should endeavour to sustain a high level of climate - relevant operations , the volume of which shall represent at least 25 % of the total eib financing operations outside the union , gradually increasing this target to at least 35 % by 2020 .


### ‘ port’ means a place or a geographical area made up of such improvement works and equipment as to permit the reception of ships , including the anchorage area within the jurisdiction of the port ; ### ‘ port’ means a place or a geographical area made up of such improvement works and equipment as to permit the reception of ships ;


### the ‘ green ship’ concept should be further developed in relation to waste management , so that an effective reward system can be implemented for those vessels that reduce their waste on board . ### voluntary application of reduced fees for vessels that demonstrate good waste management practices beyond the required standards which result in the generation of reduced quantities of waste , should be welcomed .


### the fees shall be reduced if the ship’s design , equipment and operation are such that it can be demonstrated that the ship produces reduced quantities of waste , and manages its waste in a sustainable and environmentally sound manner . the commission shall be empowered by means of delegated acts in accordance with article 19 , to define the criteria for determining that a ship meets the requirements stated in this paragraph in relation to the ship’s on - board waste management . ### the fees may be reduced if the ship’s design , equipment and operation are such that it can be demonstrated that the ship produces reduced quantities of waste , and manages its waste in a sustainable and environmentally sound manner .


### all ships , irrespective of their flag , calling at , or operating within , a port of a member state , with the exception of any warship , naval auxiliary or other ship owned or operated by a state and used , for the time being , only on a government non - commercial basis ; ### all ships , irrespective of their flag , calling at , or operating within , a port of a member state , with the exception of any warship or naval auxiliary ship owned or operated by a state and used , for the time being , only on a government non - commercial basis ;


### description of the cost recovery systems ; and ### description of the cost recovery systems , including the fees and the basis on which they have been calculated ; and


### categories of costs for the operation and administration of prf ### categories of costs and net revenues related to the operation and administration of prf


### the ‘ green ship’ concept should be further developed in relation to waste management , so that an effective reward system can be implemented for those vessels that reduce their waste on board . ### the ‘ green ship’ concept should be further developed in relation to waste management . minimum requirements should be established at eu level so that an effective reward system can be implemented for those vessels that reduce their waste on board . the commission should also encourage the exchange of good practices on the development of bottom - up schemes which evaluate ' green ships ' .


### in order to take account of developments at international level , and to promote environmentally sound waste management practices on board , the power to adopt acts in accordance with article 290 tfeu should be delegated to the commission in respect of amending this directive to update the references to international instruments and the annexes and to change references to international instruments , in order to prevent , if necessary , changes to those international instruments from applying for the purposes of this directive , and to develop common criteria for recognising ' green ships ' for the purpose of granting a reduced waste fee to those ships . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and the council . ### in order to take account of developments at international level , and to promote environmentally sound waste management practices on board , the commission should encourage the exchange of good practises on the development of bottom - up schemes which evaluate ' greenships ' for the purpose of granting a reduced waste fee to those ships . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level .


### the indirect fee shall not cover the waste from exhaust gas cleaning systems , the costs of which shall be covered on the basis of the types and quantities of waste delivered . ### the indirect fee of subparagraph shall not cover hazardous waste ;


### member states shall ensure that the costs of operating port reception facilities for the reception and treatment of waste from ships , other than cargo residues , shall be covered through the collection of a fee from ships . those costs include the elements listed in annex 4 . ### member states shall ensure that the costs of operating port reception facilities for the reception and treatment of waste from ships , other than cargo residues , shall be covered through the collection of a fee from ships , respecting ' the polluter pays ' principle . those costs include the elements listed in annex 4 .


### member states shall adopt and publish , by 31st of december 2020 at the latest , the laws , regulations and administrative provisions necessary to comply with this directive . they shall forthwith communicate to the commission the text of those provisions . ### member states shall adopt and publish , by 31st of december 2021 at the latest , the laws , regulations and administrative provisions necessary to comply with this directive . they shall forthwith communicate to the commission the text of those provisions .


### ‘ waste from ships’ means all waste , including cargo residues , which is generated during the service of a ship or during loading , unloading and cleaning operations , or waste that is collected in nets during fishing operations , and falls under the scope of annexes i , ii , iv , v and vi to marpol ; ### ' waste from ships’ means all waste , including cargo residues , which is generated during the service of a ship , a fixed or floating platform , or during loading , unloading and cleaning operations , or waste that is collected in nets during fishing operations , and falls under the scope of annexes i , ii , iv , v and vi to marpol ;


### all ports of the member states normally visited by ships falling under the scope of point . ### all ports of the member states normally visited by ships falling under the scope of point , including european ports located on inland waterways .


### where the goods for which the mutual recognition declaration is being supplied are also subject to a union act requiring an eu declaration of conformity , the mutual recognition declaration may be included as part of that eu declaration of conformity . ### where the goods for which the lawful marketing declaration regarding mutual recognition is being supplied are also subject to a union act requiring an eu declaration of conformity , the mutual recognition declaration may be attached to the eu declaration of conformity .


### this article applies if an economic operator affected by an administrative decision has submitted the decision to the internal market problem solving network and , during the solvit procedure , the home centre asks the commission to give an opinion to assist in solving the case . ### this article applies if an economic operator affected by an administrative decision has submitted the decision to the internal market problem solving network and , during the solvit procedure , the home centre or the economic operator concerned asks the commission to give an opinion to assist in solving the case . the economic operator may request such an opinion where the solvit centres are unable to reach a solution&#160 ; within the time limits established by the solvit procedure .


### the declaration , together with any evidence reasonably required by the competent authority to verify the information contained in it , shall be accepted by the competent authority as sufficient to demonstrate that the goods are lawfully marketed in another member state ; and ### the declaration , together with any evidence required by the competent authority to verify the information contained in it and the characteristics of the goods or type of goods , shall be accepted by the competent authority as sufficient to demonstrate that the goods are lawfully marketed in another member state ; and


### cooperation between competent authorities is essential for the smooth functioning of the mutual recognition principle and for creating a mutual recognition culture . product contact points and national competent authorities should therefore be required to cooperate and exchange information and expertise in order to ensure a correct and consistent application of the principle and of this regulation . ### cooperation between competent authorities is essential for the smooth functioning of the mutual recognition principle and for creating a mutual recognition culture . product contact points and national competent authorities should therefore be required to cooperate and exchange information and expertise in order to ensure a correct and consistent application of the principle and of this regulation . the union should finance activities aiming at enhancing this cooperation between competent authorities such as trainings and exchanges of good practices .


### the evidence required to demonstrate that goods are lawfully marketed in another member state varies significantly from member state to member state . this causes unnecessary burdens delays and additional costs for economic operators , while preventing national authorities from obtaining the information necessary for assessing the goods in a timely manner . this may inhibit application of the mutual recognition principle . it is therefore essential to make it easier for economic operators to demonstrate that their goods are lawfully marketed in another member state . economic operators should be able to benefit from a process of self - declaration , which should provide competent authorities with all necessary information on the goods and on their compliance with the rules applicable in that other member state . the use of the declaration does not prevent national authorities from taking a decision restricting market access , on the condition that such a decision is proportionate and respects the mutual recognition principle and this regulation . ### the evidence required to demonstrate that goods are lawfully marketed in another member state varies significantly from member state to member state . this causes unnecessary burdens delays and additional costs for economic operators , while preventing national authorities from obtaining the information necessary for assessing the goods in a timely manner . this may inhibit application of the mutual recognition principle . it is therefore essential to make it easier for economic operators to demonstrate that their goods are lawfully marketed in another member state . economic operators should be able to benefit from a process of self - declaration , which should provide competent authorities with information on the goods and on their compliance with the rules applicable in that other member state . the use of the declaration does not prevent national authorities from taking a decision restricting market access , on the condition that such a decision is proportionate and respects the mutual recognition principle and this regulation .


### the legitimate public interest ground on which the decision is justified ; ### the date and the number of the notification of the draft national technical rule under the directive 2015 / 1535 ;


### regulation no 765 / 2008 of the european parliament and of the council23 establishes a system of accreditation which ensures the mutual acceptance of the level of competence of conformity assessment bodies . the competent authorities of member states should therefore not refuse test reports and certificates issued by an accredited conformity assessment body on grounds related to the competence of that body . furthermore , in order to avoid as far as possible the duplication of tests and procedures which have been already carried out in another member state , member states should also accept test reports and certificates issued by other conformity assessment bodies in accordance with union law . competent authorities should be required to take due account of the content of the test reports or certificates presented . _________________ 23 regulation no 765 / 2008 of the european parliament and of the council of 9 july 2008 setting out the requirements for accreditation and market surveillance relating to the marketing of products and repealing regulation no 339 / 93 . ### regulation no 765 / 2008 of the european parliament and of the council23 establishes a system of accreditation which ensures the mutual acceptance of the level of competence of conformity assessment bodies . the competent authorities of member states should therefore not refuse test reports and certificates issued by an accredited conformity assessment body on grounds related to the competence of that body . furthermore , in order to avoid as far as possible the duplication of tests and procedures which have been already carried out in another member state , member states also have to take into due consideration test reports and certificates issued by other conformity assessment bodies in accordance with union law . competent authorities should be required to take due account of the content of the test reports or certificates presented . _________________ 23 regulation no 765 / 2008 of the european parliament and of the council of 9 july 2008 setting out the requirements for accreditation and market surveillance relating to the marketing of products and repealing regulation no 339 / 93 .


### the concept of overriding reasons of public interest is an evolving concept developed by the court of justice in its case - law in relation to articles 34 and 36 of the treaty . this concept covers , inter alia , the effectiveness of fiscal supervision , the fairness of commercial transactions , protection of consumers , protection of the environment , the maintenance of press diversity and the risk of seriously undermining the financial balance of the social security system . such overriding reasons , where legitimate differences exist from one member state to another , may justify the application of national rules by the competent authorities . however , such decisions need to be duly justified , and the principle of proportionality must always be respected , regard being had to whether the competent authority has in fact made the least restrictive decision possible . furthermore , administrative decisions restricting or denying market access in respect of goods lawfully marketed in another member state must not be based on the mere fact that the goods under assessment fulfil the legitimate public objective pursued by the member state in a different way from the way that domestic goods in that member state fulfil that objective . ### the concept of overriding reasons of public interest is an evolving concept developed by the court of justice in its case - law in relation to articles 34 and 36 of the treaty . this concept covers , inter alia , the effectiveness of fiscal supervision , the preserving the financial equilibrium of the social security system , the protection of consumers , recipients of services and workers , the safeguarding of the proper administration of justice , fairness of trade transactions , the combating of fraud and the prevention of tax evasion and avoidance , as well as the safe guarding of the effectiveness of fiscal supervision ; road transport safety , the guaranteeing of the quality of craft work , the promotion of research and development ; the protection of the environment and the urban environment , the health of animals ; intellectual property and the safeguarding and conservation of the national historic and artistic heritage , social policy objectives and cultural policy objectives . such overriding reasons , where legitimate differences exist from one member state to another , may justify the application of national rules by the competent authorities . however , such decisions need to be duly justified , and the principle of proportionality must always be respected . the principle means that decisions need to be legitimate , appropriate , and do not go beyond what is necessary to achieve its objective . furthermore , administrative decisions restricting or denying market access in respect of goods lawfully marketed in another member state must not be based on the mere fact that the goods under assessment fulfil the legitimate public objective pursued by the member state in a different way from the way that domestic goods in that member state fulfil that objective .


### distribution tariffs shall reflect the cost of use of the distribution network by system users including active customers , and may be differentiated based on system users’ consumption or generation profiles . where member states have implemented the deployment of smart metering systems , regulatory authorities may introduce time differentiated network tariffs , reflecting the use of the network , in a transparent and foreseeable way for the consumer . ### distribution tariffs shall reflect the cost of use of the distribution network by system users including active customers , and may be differentiated based on system users’ consumption or generation profiles . where member states have implemented the deployment of smart metering systems , regulatory authorities may introduce time differentiated network tariffs , reflecting the use of the network , in a transparent and foreseeable and cost efficient way for the consumer . regulatory authorities should also assess the need to introduce more capacity - based network tariffs where these can provide for a more efficient system use .


### the european resource adequacy assessment shall cover the overall adequacy of the electricity system to supply current and projected demands for electricity for a ten - year period from the date of that assessment , in a yearly resolution . ### the european resource adequacy assessment shall cover the overall adequacy of the electricity system to supply current and projected demands for electricity in the union , within the relevant member states forming a region and for each member state one , five and ten years ahead from the date of that assessment .


### the procurement of balancing capacity shall be facilitated on a regional level in accordance with point 8 of annex i . the procurement shall be based on a primary market and organised in such a way as to be non - discriminatory between market participants in the prequalification process individually or through aggregation . ### the procurement of balancing capacity shall be facilitated on a regional level in accordance with point 8 of annex i . the procurement shall be based on a primary market and be non - discriminatory between market participants in the prequalification process including in particular where participation takes place individually or through aggregation .


### while preparing the proposals pursuant to the tasks referred to in article 27 , the entso for electricity shall conduct an extensive consultation process , at an early stage and in an open and transparent manner , involving all relevant stakeholders , and , in particular , the organisations representing all stakeholders , in accordance with the rules of procedure referred to in article 26 . that consultation shall also involve national regulatory authorities and other national authorities , supply and generation undertakings , system users including customers , distribution system operators , including relevant industry associations , technical bodies and stakeholder platforms . it shall aim at identifying the views and proposals of all relevant parties during the decision - making process . ### while preparing the - proposals pursuant to the tasks referred to in article 27 the entso for electricity shall conduct an extensive consultation process , at an early stage and in an open and transparent manner , involving all relevant stakeholders and , in particular , the organisations representing all stakeholders , in accordance with the rules of procedure referred to in article 26 . that consultation shall also involve national regulatory authorities and other national authorities , supply and generation undertakings , system users including customers and their representatives , distribution system operators , including relevant industry associations , technical bodies and stakeholder platforms . it shall aim at identifying the views and proposals of all relevant parties during the decision - making process . an independent advisory council of stakeholder representatives , in particular system users and final customers , shall be established to provide independent advice to the board of the entso for electricity on : the elaboration of network codes as set out in article 27 the union wide development plans as set out in article 27 the annual work - programme as set out in article 27 and the annual report as set out in article 27 .


### regional operational centres shall submit an annual report concerning their performance to entso for electricity , the agency , the regulatory authorities of the system operation region and the electricity coordination group established pursuant to article 1 of commission decision 2012 / c 353 / 0237 . _________________ 37 commission decision of 15 november 2012 setting up the electricity coordination group . ### regional coordination centres shall submit an annual report with the data resulting from their continuous monitoring pursuant to paragraph 1 and on their performance to entso for electricity , the agency , the regulatory authorities of the system operation region and the electricity coordination group established pursuant to article 1 of commission decision 2012 / c 353 / 02 .


### generating installations using high - efficiency cogeneration shall only be subject to downward redispatching or curtailment if , other than curtailment or downward redispatching of generating installations using renewable energy sources , no other alternative exists or if other solutions would result in disproportionate costs or risks to network security ; ### electricity generated in a high - efficiency cogeneration process shall only be subject to downward redispatching or curtailment if , other than curtailment or downward redispatching of generating installations using renewable energy sources , no other alternative exists or if other solutions would result in disproportionate costs or risks to network security ;


### the medium to long - term resource adequacy assessment set out in this regulation has a different purpose than the seasonal outlooks as set out in article 9 [ regulation on risk preparedness as proposed by com 862 ] . medium - to long - term assessments are mainly used to assess the need for capacity mechanisms whereas seasonal outlooks are used to alert to risks that might occur in the following six months that are likely to result in a significant deterioration of the electricity supply situation . in addition , regional operational centres also carry out regional adequacy assessments as defined in european legislation on electricity transmission system operation . these are very short - term adequacy assessments used in the context of system operation . ### the medium to long - term resource adequacy assessment set out in this regulation has a different purpose than the seasonal outlooks as set out in article 9 [ regulation on risk preparedness as proposed by com 862 ] . medium - to long - term assessments are mainly used to assess the need for capacity mechanisms whereas seasonal outlooks are used to alert to risks that might occur in the following six months that are likely to result in a significant deterioration of the electricity supply situation . in addition , regional coordination centres also carry out regional adequacy assessments as defined in european legislation on electricity transmission system operation . these are very short - term adequacy assessments used in the context of system operation .


### member states shall monitor resource adequacy within their territory based on the european resource adequacy assessment pursuant to article 19 . ### member states shall monitor resource adequacy within their territory in compliance with the european resource adequacy&#160 ; methodology pursuant to article 19 , par . 4 .


### distribution system operators which are not part of a vertically integrated undertaking or which are unbundled according to the provisions of article 35 [ recast of directive 2009 / 72 / ec as proposed by com 864 / 2 ] , shall cooperate at union level through a european entity for distribution system operators , in order to promote the completion and functioning of the internal market in electricity , and to promote optimal management and a coordinated operation of distribution and transmission systems . distribution system operators who wish to participate in the eu dso entity shall become registered members of the entity . ### all distribution system operators shall cooperate at union level through a european entity for distribution system operators , in order to promote the completion and functioning of the internal market in electricity and gas to support the development of a sustainable , decentralised and more integrated energy system , and to promote optimal management and a coordinated operation of distribution and transmission systems . distribution system operators and associations that represent them at union level who wish to participate in the eu dso entity shall become registered members of the entity . statuses shall ensure that decision - making process takes into account regional differences of distribution network .


### the commission shall , after consulting the agency , the entso for electricity and the other relevant stakeholders , establish a priority list every three years , identifying the areas set out in paragraph 1 to be included in the development of network codes . if the subject - matter of the network code is directly related to the operation of the distribution system and less relevant for the transmission system , the commission may require the eu dso entity for electricity instead of the entso for electricity to convene a drafting committee and submit a proposal for a network code to the agency . ### the commission shall , after consulting the agency , the entso for electricity , the eu dso entity for electricity as well as the other relevant stakeholders , establish a priority list every three years , identifying the areas set out in paragraph 1 to be included in the development of network codes following a thorough cost - benefit analysis . if the subject - matter of the network code is directly related to the operation of the distribution system and less relevant for the transmission system , the commission may require the eu dso entity for electricity instead of the entso for electricity to convene a drafting committee and submit a proposal for a network code to the agency .


### there shall be no maximum limit of the wholesale electricity price unless it is set at the value of lost load as determined in accordance with article 10 . there shall be no minimum limit of the wholesale electricity price unless it is set at a value of minus 2000 &#8364 ; or less and , in the event that it is or anticipated to be reached , set at a lower value for the following day . this provision shall apply , inter alia , to bidding and clearing in all timeframes and include balancing energy and imbalance prices . ### there shall be no maximum and no minimum limit of the wholesale electricity price . this provision shall apply , inter alia , to bidding and clearing in all timeframes and include balancing energy and imbalance prices .


### charges applied by network operators for access to networks , including charges for connection to the networks , charges for use of networks , and , where applicable , charges for related network reinforcements , shall be transparent , take into account the need for network security and flexibility and reflect actual costs incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non - discriminatory manner . in particular , they shall be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level , either positively or negatively . they shall not discriminate against energy storage and shall not create disincentives for participation in demand response . without prejudice to paragraph 3 , those charges shall not be distance - related . ### charges applied by network operators for access to networks , including charges for connection to the networks , charges for use of networks , and , where applicable , charges for related network reinforcements , &#160 ; shall be transparent , take into account the need for network security and flexibility&#160 ; and reflect&#160 ; actual costs&#160 ; incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non - discriminatory manner . in particular , they shall be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level , either positively or negatively . they shall not discriminate against energy storage and aggregation and shall not create disincentives for self - generation , self - consumption and for participation in demand response . &#160 ; without prejudice to paragraph 3 , &#160 ; those charges shall not be distance - related .


### each regional operational centre shall perform all the following functions in the system operation region where it is established and regional operational centres shall perform at least the following functions , set out in more detail in annex i : ### in the system operation region , the transmission system operators shall perform at least the following functions jointly , within the scope of regional security centres , regional operational centres or other format for joint operations , set out in more detail in annex i :


### market operators shall allow market participants to trade energy as close to real time as possible and at least up to the intraday cross - zonal gate closure time determined in accordance with article 59 of regulation 2015 / 1222 . ### market operators shall allow market participants to trade energy as close to real time as possible and at least up to 15 minutes before real time across all bidding zones .


### capacity mechanisms shall not create unnecessary market distortions and not limit cross - border trade . the amount of capacity committed in the mechanism shall not go beyond what is necessary to address the concern . ### capacity mechanisms shall not create unnecessary market distortions , further distortions that would increase the costs of the decarbonisation , hinder the objectives set in the renewable energy directive , not limit cross - border trade and shall be non - discriminatory and open to all generation technologies , interconnection capacities , demand - side response resources , storage and energy efficiency . the amount of capacity committed in the mechanism shall not go beyond what is necessary to address the concern . capacity mechanisms shall be designed in the least intrusive way possible , the costs shall be fairly distributed and shall not create unnecessary burden especially to consumers in fuel poverty . generation capacity providers shall be selected on the basis of transparent criteria , including flexibility criteria and least costs to society .


### the day - to - day operation of regional operational centres shall be managed through cooperative decision - making . the cooperative - decision making process shall be based on : ### the performance of functions of regional coordination centres shall be managed through cooperative processes that rely on the involvement of the transmission system operators of the region , including arrangements for coordination between regional coordination centres where relevant . the cooperative process shall be based on :


### long - term hedging opportunities , which allow market participants to hedge against price volatility risks on a market basis , and eliminate uncertainty on future returns on investment shall be tradable on exchanges in a transparent manner subject to compliance with eu treaty rules on competition . ### long - term hedging opportunities , which allow market participants to hedge against price volatility risks on a market basis , and mitigate uncertainty on future returns on investment shall be tradable on exchanges in a transparent manner subject to compliance with eu treaty rules on competition .


### short - term markets will improve liquidity and competition by enabling more resources to participate fully in the market , especially those that are more flexible . effective scarcity pricing will encourage market participants to be available when the market most needs it and ensures that they can recover their costs in the wholesale market . it is therefore critical to ensure that , as far as possible , administrative and implicit price caps are removed to allow scarcity prices to increase up to the value of lost load . when fully embedded in the market structure , short - term markets and scarcity pricing will contribute to the removal of other measures , such as capacity mechanisms , to ensure security of supply . at the same time , scarcity pricing without price caps on the wholesale market should not jeopardize the possibility for reliable and stable prices for final customers , in particular households and smes . ### short - term markets will improve liquidity and competition by enabling more resources to participate fully in the market , especially those that are more flexible . effective scarcity pricing will encourage market participants to be available when the market most needs it and ensures that they can recover their costs in the wholesale market . it is therefore critical to ensure that administrative and implicit price caps are removed to allow scarcity pricing . when fully embedded in the market structure , short - term markets and scarcity pricing will contribute to the removal of other measures , such as capacity mechanisms and other subsidies , to ensure security of supply . at the same time , scarcity pricing without price caps on the wholesale market should not jeopardize the possibility for reliable and stable prices for final customers , in particular households and smes .


### regional operational centres shall be equipped with all the human , technical , physical and financial resources necessary for fulfilling their obligations under this regulation and carrying out their functions . ### regional coordination centres shall be equipped with all the human , technical , physical and financial resources necessary for fulfilling their obligations under this regulation and carrying out their functions , ensuring in particular geographically balanced representation and equitable treatment between members .


### member states shall publish a timeline for adopting measures to eliminate any identified regulatory distortions . when addressing resource adequacy concerns member states shall in particular consider removing regulatory distortions , enabling scarcity pricing , developing interconnection , energy storage , demand side measures and energy efficiency . ### member states shall publish a timeline and an implementation plan for adopting measures to eliminate any identified regulatory distortions and actions to address market failures . when addressing resource adequacy concerns member states shall in particular consider removing regulatory distortions , enabling scarcity pricing , developing interconnection , energy storage , demand side measures and energy efficiency .


### generating installations using renewable energy sources shall only be subject to downward redispatching or curtailment if no other alternative exists or if other solutions would result in disproportionate costs or risks to network security ; ### generating installations using renewable energy sources shall only be subject to downward redispatching or curtailment in very exceptional cases if no other alternative exists or if other solutions would result in significantly disproportionate costs or significant risks to network security ;


### transmission system operators shall not limit the volume of interconnection capacity to be made available to other market participants in order to solve congestion inside their own control area or as a means of managing flows on a border between two control areas observed even without any transaction , that is to say flows over control areas caused by origin and destination within one control area . ### transmission system operators shall not limit the volume of interconnection capacity to be made available to market participants in order to solve congestion inside their own control area , except for congestion on internal network elements having cross - border relevance . transmission system operators may limit the volume of interconnection capacity to be made available to market participants as a means of managing flows on a border between two control areas observed even without any transaction , that is to say flows over control areas caused by origin and destination within one control area which are below the level of threshold established within the capacity calculation region .


### all market participants shall have access to the balancing market , be it individually or through aggregation . balancing market rules and products shall respect the need to accommodate increasing shares of variable generation as well as increased demand responsiveness and the advent of new technologies . ### all market participants , including those providing electricity generated from variable renewable sources and demand side response and storage services&#160 ; shall have full access to the balancing market , be it individually or through aggregation . balancing market rules and products shall respect the need to accommodate increasing shares of variable generation as well as increased demand responsiveness and the advent of new technologies .


### regional operational centres shall adopt binding decisions addressed to the transmission system operators in respect of the functions referred to in points , , and of article 34 . transmission system operators shall implement the binding decisions issued by the regional operational centres except in cases when the safety of the system will be negatively affected . ### regional coordination centres shall adopt binding decisions addressed to the transmission system operators only in respect of the functions referred to in points , and of article 34 . transmission system operators shall implement the binding decisions issued by the regional coordination centres except in cases when the safety of the system will be negatively affected . transmission system operators shall justify why the safety of the system is negatively affected .


### draft amendments to any network code adopted under article 55 may be proposed to the agency by persons who are likely to have an interest in that network code , including the entso for electricity , the eu dso entity , transmission system operators , system users and consumers . the agency may also propose amendments on its own initiative . ### draft amendments to any network code adopted under article 55 may be proposed to the agency by persons who are likely to have an interest in that network code , including the entso for electricity , the eu dso entity , transmission and distribution system operators , system users and consumers . the agency may also propose amendments on its own initiative .


### detailed rules for facilitating effective cross - border participation in capacity mechanisms other than reserve schemes should be laid down . transmission system operators across the borders should facilitate interested generators wanting to participate in capacity mechanisms in other member states . therefore , they should calculate capacities up to which cross - border participation would be possible , enable participation and check availabilities . national regulatory authorities should enforce the cross - border rules in the member states . ### detailed rules for facilitating effective cross - border participation in capacity mechanisms other than strategic reserves should be laid down . transmission system operators across the borders should facilitate interested generators wanting to participate in capacity mechanisms in other member states . therefore , they should calculate capacities up to which cross - border participation would be possible , enable participation and check availabilities . national regulatory authorities should enforce the cross - border rules in the member states .


### by [ op : twelve months after entry into force ] , all transmission system operators shall establish regional operational centres in accordance with the criteria set out in this chapter . regional operational centres shall be established in the territory of one of the member states of the region where it will operate . ### by [ op : twelve months after entry into force ] , all transmission system operators of a system operation region shall submit to the regulatory authorities of the region for a review a proposal for the establishment of regional coordination centres in accordance with the criteria set out in this chapter . the proposal shall include the following information : member state where the regional coordination centre will be located ; the organisational , financial and operational arrangements necessary to ensure the efficient , secure and reliable operation of the interconnected transmission system ; an implementation plan for the entry into operation of the regional coordination centres ; the statutes and rules of procedure of regional coordination centres ; a description of cooperative processes in accordance with article 35 ; a description of the arrangements concerning the liability of regional coordination centres in accordance with article 44 .


### by way of derogation from paragraph 1 , until [ op : two years after entry into force ] market operators may apply limits on maximum clearing prices for day - ahead and intraday timeframes in accordance with articles 41 and 54 of regulation 2015 / 1222 . in the event that limits are , or are anticipated to be , reached , they shall be raised for the following day . ### by way of derogation from paragraph 1 , market operators may apply technical limits on maximum clearing prices for day - ahead and intraday timeframes in accordance with articles 41 and 54 of regulation 2015 / 1222 . in the event that those technical limits are , or are anticipated to be , reached , they shall be adjusted .


### regional operational centres should carry out functions where their regionalisation brings added value compared to functions performed at national level . the functions of regional operational centres should cover the functions carried out by regional security coordinators as well as additional system operation , market operation and risk preparedness functions . the functions carried out by regional operational centres should exclude real time operation of the electricity system . ### regional coordination centres should carry out functions where their regionalisation brings added value compared to functions performed at national level . the functions of regional operational centres should cover the functions carried out by regional security coordinators as well as additional functions with regional importance . the functions carried out by regional coordination centres should exclude real time operation of the electricity system .


### there shall be no maximum limit of the wholesale electricity price unless it is set at the value of lost load as determined in accordance with article 10 . there shall be no minimum limit of the wholesale electricity price unless it is set at a value of minus 2000 &#8364 ; or less and , in the event that it is or anticipated to be reached , set at a lower value for the following day . this provision shall apply , inter alia , to bidding and clearing in all timeframes and include balancing energy and imbalance prices . ### there shall be no maximum and no minimum limit of the wholesale electricity price . this provision shall apply , inter alia , to bidding and clearing in all timeframes and include balancing energy and imbalance prices .


### regional operational centres established pursuant to article 32 shall annually calculate the maximum entry capacity available for the participation of foreign capacity taking into account the expected availability of interconnection and the likely concurrence of system stress between the system where the mechanism is applied and the system in which the foreign capacity is located . a calculation is required for each bidding zone border . ### transmission system operators shall annually calculate , in coordination with the tsos concerned , the maximum entry capacity available for the participation of foreign capacity taking into account the expected availability of interconnection and the likely concurrence of system stress between the system where the mechanism is applied and the system in which the foreign capacity is located . a calculation is required for each bidding zone border .


### where a member state wishes to implement a capacity mechanism , it shall consult on the proposed mechanism at least with its electrically connected neighbouring member states . ### the decision of a member state to implement a capacity mechanism shall be based on the adequacy assessment performed by the concerned member state in compliance with the eu adequacy methodology developed by entso - e .


### digitalisation of distribution networks including deployment of smart grids and intelligent metering systems ; ### improve the digitalisation of distribution networks including deployment of smart grids and intelligent metering systems ;


### all market participants shall have access to the balancing market , be it individually or through aggregation . balancing market rules and products shall respect the need to accommodate increasing shares of variable generation as well as increased demand responsiveness and the advent of new technologies . ### all market participants shall have full access to the balancing market , be it individually or through aggregation . balancing market rules and products shall respect the need to accommodate increasing shares of variable generation as well as increased demand responsiveness and the advent of new technologies .


### member states shall monitor resource adequacy within their territory based on the european resource adequacy assessment pursuant to article 19 . ### member states shall monitor , report and publish&#160 ; resource adequacy within their territory based on the european resource adequacy assessment pursuant to article 19 .


### the resources curtailed or redispatched shall be selected amongst generation or demand facilities submitting offers for curtailment or redispatching using market - based mechanisms and be financially compensated . non - market - based curtailment or redispatching of generation or redispatching of demand response shall only be used where no market - based alternative is available , where all available market - based resources have been used , or where the number of generation or demand facilities available in the area where suitable generation or demand facilities for the provision of the service are located is too low to ensure effective competition . the provision of market - based resources shall be open to all generation technologies , storage and demand response , including operators located in other member states unless technically not feasible . ### the resources curtailed or redispatched shall be selected amongst generation or demand facilities using market - based mechanisms and be financially compensated . non - market - based curtailment or redispatching of generation or redispatching of demand response shall only be used for operational security reasons and where no market - based alternative is available or where all available market - based resources have been used . the provision of market - based resources shall be open to all generation technologies , storage and demand response , including operators located in other member states unless technically not feasible .


### actions which prevent price formation on the basis of demand and supply or constitute a disincentive to the development of more flexible generation , low carbon generation , or more flexible demand shall be avoided ; ### actions which prevent price formation on the basis of demand and supply shall be avoided ;


### distribution system operators which are not part of a vertically integrated undertaking or which are unbundled according to the provisions of article 35 [ recast of directive 2009 / 72 / ec as proposed by com 864 / 2 ] , shall cooperate at union level through a european entity for distribution system operators , in order to promote the completion and functioning of the internal market in electricity , and to promote optimal management and a coordinated operation of distribution and transmission systems . distribution system operators who wish to participate in the eu dso entity shall become registered members of the entity . ### all distribution system operators shall cooperate at union level through a european entity for distribution system operators , in order to promote the completion and functioning of the internal market in electricity and gas to support the development of a sustainable , decentralised and more integrated energy system , and to promote optimal management and a coordinated operation of distribution and transmission systems . distribution system operators and associations that represent them at union level who wish to participate in the eu dso entity shall become registered members of the entity . statuses shall ensure that decision - making process takes into account regional differences of distribution network .


### ' capacity mechanism ' means an administrative measure to ensure the achievement of the desired level of security of supply by remunerating resources for their availability not including measures relating to ancillary services ; ### ' capacity mechanism ' means an administrative measure to ensure the achievement of the necessary level of security of supply by remunerating resources for their availability not including measures relating to ancillary services ;


### long - term hedging opportunities , which allow market participants to hedge against price volatility risks on a market basis , and eliminate uncertainty on future returns on investment shall be tradable on exchanges in a transparent manner subject to compliance with eu treaty rules on competition . ### long - term hedging opportunities , which allow market participants to hedge against price volatility risks on a market basis , and mitigate uncertainty on future returns on investment , shall be tradable on exchanges in a transparent manner ; similarly , long - term supply contracts shall be negotiated over the counter ; both shall be compliant with eu rules


### regional operational centres shall adopt binding decisions addressed to the transmission system operators in respect of the functions referred to in points , , and of article 34 . transmission system operators shall implement the binding decisions issued by the regional operational centres except in cases when the safety of the system will be negatively affected . ### regional coordination centres shall adopt recommendations addressed to the transmission system operators in respect of the functions referred to in article 34 . transmission system operators shall do their utmost to follow those recommendations .


### charges applied by network operators for access to networks , including charges for connection to the networks , charges for use of networks , and , where applicable , charges for related network reinforcements , shall be transparent , take into account the need for network security and flexibility and reflect actual costs incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non - discriminatory manner . in particular , they shall be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level , either positively or negatively . they shall not discriminate against energy storage and shall not create disincentives for participation in demand response . without prejudice to paragraph 3 , those charges shall not be distance - related . ### charges applied by network operators for access to networks , including charges for connection to the networks , charges for use of networks , and , where applicable , charges for related network reinforcements , &#160 ; shall be transparent , take into account the need for network security and flexibility&#160 ; and reflect&#160 ; actual costs&#160 ; incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non - discriminatory manner . in particular , they shall be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level , either positively or negatively . they shall not discriminate against energy storage and aggregation and shall not create disincentives for self - generation , self - consumption and for participation in demand response . &#160 ; without prejudice to paragraph 3 , &#160 ; those charges shall not be distance - related .


### regional operational centres shall complement the role of transmission system operators by performing functions of regional relevance . they shall establish operational arrangements in order to ensure the efficient , secure and reliable operation of the interconnected transmission system . ### regional coordination centres shall complement the role of transmission system operators by performing functions of regional relevance . the transmission system operators shall be responsible for managing electricity flows and ensuring a secure , reliable and efficient electricity system in accordance with article 40 of the [ recast of directive 2009 / 72 / ec as proposed by com 864 / 2 ] .


### a procedure for consulting the transmission system operators of the system operation region in the exercise of its operational duties and tasks , in accordance with article 37 ; ### a procedure for consulting the transmission system operators and relevant stakeholders of the system operation region in accordance with article 37 ;


### ‘ congestion’ means a situation in which all requests from market participants to trade between two bidding zones cannot be accommodated because they would significantly affect the physical flows on network elements which cannot accommodate those flows ; ### ‘ congestion’ means a situation in which all requests from market participants to trade cannot be accommodated because they would significantly affect the physical flows on network elements which cannot accommodate those flows ;


### to address residual concerns that cannot be eliminated by the measures pursuant to article 18 , member states may introduce capacity mechanisms , subject to the provisions of this article and to the union state aid rules . ### capacity mechanisms other than strategic reserve shall : not create unnecessary market distortions and not limit cross - border trade ; not go beyond what is necessary to address the adequacy concern in the member states , and perform in compliance with the eu adequacy methodology developed by entso - e ; select capacity providers by means of a transparent , non - discriminatory and market - based process ; be technology neutral ; be temporary and approved by the commission for no longer than five years ; apply capacity products which are issued for not longer than two years ; provide incentives for capacity providers to be available in times of expected system stress ; ensure that the remuneration is determined through a market - based process ; set out the required technical conditions for the participation of capacity providers in advance of the selection process ; be open to participation of all resources , including renewable energy , storage and demand side management that are capable of providing the required technical performance ; apply appropriate penalties to capacity providers when not available in the event of system stress ; not be open for generation capacity emitting 450 gr co2 / kwh or more at the entry into force of this regulation ; be phased - out or at least phased down to a strategic reserve after a pre - defined period of time , based on the full implementation of the measures outlined in the roadmap pursuant to article 18 .


### by way of derogation from paragraph 1 , until [ op : two years after entry into force ] market operators may apply limits on maximum clearing prices for day - ahead and intraday timeframes in accordance with articles 41 and 54 of regulation 2015 / 1222 . in the event that limits are , or are anticipated to be , reached , they shall be raised for the following day . ### by way of derogation from paragraph 1 , market operators may apply technical limits on maximum and minimum bidding limits for day - ahead and intraday timeframes in accordance with articles 41 and 54 of regulation 2015 / 1222 . in the event that these limits are , or are anticipated to be , reached , they shall be adjusted for the following day . technical price limits shall be harmonised for the common market area .


### regional operational centres shall take the necessary steps to cover liability related to the execution of their tasks , in particular , where they adopt decisions binding on transmission system operators . the method employed to provide the cover shall take into account the legal status of the regional operational centre and the level of commercial insurance cover available . ### in the proposal for the establishment of regional coordination centres in accordance with article 32 , the transmission system operators of the system operation region shall include arrangements to cover liability related to the execution of its tasks . the method employed to provide the cover shall take into account the legal status of the regional coordination centre and the level of commercial insurance cover available .


### regional week ahead to intraday system adequacy forecasts and preparation of risk reducing actions ; ### regional week ahead to intraday system adequacy forecasts and preparation of risk reducing actions in accordance with the methodology set out article 8 of [ regulation on risk preparedness as proposed by com862 ] and the procedures set out in article 81 of [ the commission regulation establishing a guideline on electricity transmission system operation ] ;