### whereas the level of overall investment in the union is increasing , investment in higher - risk activities such as research and innovation is still inadequate . the resulting underinvestment in research and innovation is damaging to the industrial and economic competitiveness of the union and the quality of life of its citizens . the investeu fund should provide the appropriate financial products to cover different stages in the innovation cycle and a wide range of stakeholders , in particular to allow the upscaling of and deployment of solutions at a commercial scale in the union , in order to make such solutions competitive on world markets . ### whereas the level of overall investment in the union is increasing , investment in higher - risk activities such as social enterprise , research and innovation is still inadequate . the resulting underinvestment in research and innovation is damaging to the industrial and economic competitiveness of the union and the quality of life of its citizens . the investeu fund should provide appropriate and suited financial products to cover different stages in the innovation cycle and a wide range of stakeholders , in particular to allow the upscaling of and deployment of solutions at a commercial scale in the union , in order to make such solutions competitive on world markets .


### whereas the level of overall investment in the union is increasing , investment in higher - risk activities such as research and innovation is still inadequate . the resulting underinvestment in research and innovation is damaging to the industrial and economic competitiveness of the union and the quality of life of its citizens . the investeu fund should provide the appropriate financial products to cover different stages in the innovation cycle and a wide range of stakeholders , in particular to allow the upscaling of and deployment of solutions at a commercial scale in the union , in order to make such solutions competitive on world markets . ### whereas the level of overall investment in the union is increasing , investment in higher - risk activities such as research and innovation is still inadequate . the resulting underinvestment in research and innovation is damaging to the industrial and economic competitiveness of the union , the quality of life of its citizens and to the achievement of the energy and climate goals . the investeu fund should provide the appropriate financial products to cover different stages in the innovation cycle and a wide range of stakeholders , in particular to allow the upscaling of and deployment of solutions at a commercial scale in the union , in order to make such solutions competitive on world markets .


### small and medium - sized enterprises play a crucial role in the union . however , they face challenges when accessing finance because of their perceived high risk and lack of sufficient collateral . additional challenges arise from smes ' need to stay competitive by engaging in digitisation , internationalisation and innovation activities and skilling up their workforce . moreover , compared to larger enterprises , they have access to a more limited set of financing sources : they typically do not issue bonds , have only limited access to stock exchanges or large institutional investors . the challenge in accessing finance is even greater for those smes whose activities focus on intangible assets . smes in the union rely heavily on banks and debt financing in the form of bank overdrafts , bank loans or leasing . supporting smes that face the above challenges and providing more diversified sources of funding is necessary for increasing the ability of smes to finance their creation , growth and development , withstand economic downturns , and for making the economy and the financial system more resilient during economic downturn or shocks . this is also complementary to the initiatives already undertaken in the context of the capital markets union . the investeu fund should provide an opportunity to focus on specific , more targeted financial products . ### small and medium - sized enterprises play a crucial role as they are the main factor for the creation of jobs and growth , in a level close to 98% of the overall growth rates of the union . however , they face challenges when accessing finance because of their perceived high risk and lack of sufficient collateral . additional challenges arise from smes ' need to stay competitive by engaging in digitisation , internationalisation and innovation activities and skilling up their workforce . moreover , compared to larger enterprises , they have access to a more limited set of financing sources : they typically do not issue bonds , have only limited access to stock exchanges or large institutional investors . the lack of access to capital is also intensified by the comparative weakness of the private equity and venture capital industry in europe . the challenge in accessing finance is even greater for those smes whose activities focus on intangible assets . smes in the union rely heavily on banks and debt financing in the form of bank overdrafts , bank loans or leasing . supporting smes that face the above challenges and providing more diversified sources of funding is necessary for increasing the ability of smes to finance their creation , growth and development , withstand economic downturns , and for making the economy and the financial system more resilient during economic downturn or shocks . this is also complementary to the initiatives already undertaken in the context of the capital markets union . the investeu fund should provide an opportunity to focus on specific , more targeted financial products .


### small and medium - sized enterprises play a crucial role in the union . however , they face challenges when accessing finance because of their perceived high risk and lack of sufficient collateral . additional challenges arise from smes ' need to stay competitive by engaging in digitisation , internationalisation and innovation activities and skilling up their workforce . moreover , compared to larger enterprises , they have access to a more limited set of financing sources : they typically do not issue bonds , have only limited access to stock exchanges or large institutional investors . the challenge in accessing finance is even greater for those smes whose activities focus on intangible assets . smes in the union rely heavily on banks and debt financing in the form of bank overdrafts , bank loans or leasing . supporting smes that face the above challenges and providing more diversified sources of funding is necessary for increasing the ability of smes to finance their creation , growth and development , withstand economic downturns , and for making the economy and the financial system more resilient during economic downturn or shocks . this is also complementary to the initiatives already undertaken in the context of the capital markets union . the investeu fund should provide an opportunity to focus on specific , more targeted financial products . ### small and medium - sized enterprises play a crucial role in the union . however , they face challenges when accessing finance because of their perceived high risk , lack of sufficient collateral and lack of capital . additional challenges arise from smes ' need to stay competitive by engaging in digitisation , internationalisation and innovation activities and skilling up their workforce . moreover , compared to larger enterprises , they have access to a more limited set of financing sources : they typically do not issue bonds , have only limited access to stock exchanges or large institutional investors . the challenge in accessing finance is even greater for those smes whose activities focus on intangible assets . smes in the union rely heavily on banks and debt financing in the form of bank overdrafts , bank loans or leasing . supporting smes that face the above challenges and providing more diversified sources of funding is necessary for increasing the ability of smes to finance their creation , growth and development , withstand economic downturns , and for making the economy and the financial system more resilient during economic downturn or shocks . this is also complementary to the initiatives already undertaken in the context of the capital markets union . the investeu fund should provide an opportunity to focus on specific , more targeted financial products .


### as set out in the reflection paper on the social dimension of europe16 and the european pillar of social rights17 , building a more inclusive and fairer union is a key priority for the union to tackle inequality and foster social inclusion policies in europe . inequality of opportunities affects in particular access to education , training and health . investment in the social , skills and human capital - related economy , as well as in the integration of vulnerable populations in the society , can enhance economic opportunities , especially if coordinated at union level . the investeu fund should be used to support investment in education and training , help increase employment , in particular among the unskilled and long - term unemployed , and improve the situation with regard to intergenerational solidarity , the health sector , homelessness , digital inclusiveness , community development , the role and place of young people in society as well as vulnerable people , including third country nationals . the investeu programme should also contribute to the support of european culture and creativity . to counter the profound transformations of societies in the union and of the labour market in the coming decade , it is necessary to invest in human capital , microfinance , social enterprise finance and new social economy business models , including social impact investment and social outcomes contracting . the investeu programme should strengthen nascent social market eco - system , increasing the supply of and access to finance to micro - and social enterprises , to meet the demand of those who need it the most . the report of the high - level task - force on investing in social infrastructure in europe18 has identified investment gaps in social infrastructure and services , including for education , training , health and housing , which call for support , including at the union level . therefore , the collective power of public , commercial and philanthropic capital , as well as support from foundations , should be harnessed to support the social market value chain development and a more resilient union . __________________ 16 com 206 . 17 com 250 . 18 published as european economy discussion paper 074 in january 2018 . ### as set out in the reflection paper on the social dimension of europe16 , and the european pillar of social rights17 and the eu framework on the implementation of the un convention on the rights of persons with disabilities , building a more inclusive and fairer union is a key priority for the union to tackle inequality and foster social inclusion policies in europe . inequality of opportunities affects in particular access to education , training , culture , employment and health . investment in the social , skills and human resources - related economy , as well as in the integration of vulnerable populations in the society , can enhance economic opportunities , especially if coordinated at union level . the investeu fund should be used to support investment in education and training , help increase a good quality employment , in particular among the unskilled and long - term unemployed , and improve the situation with regard to equal opportunities , intergenerational solidarity , the health sector , homelessness , digital inclusiveness , community development , the deinstitutionalisation process of children and adults , the role and place of young people in society as well as vulnerable people , including third country nationals . the investeu programme should also contribute to the support of european culture and creativity . to counter the profound transformations of societies in the union and of the labour market in the coming decade , it is necessary to invest in human resources , microfinance and the social economy . the investeu programme should strengthen nascent social market eco - system , increasing the supply of and access to finance to micro - and social enterprises , to meet the demand of those who need it the most . the report of the high - level task - force on investing in social infrastructure in europe18 has identified investment gaps in social infrastructure and services , including for education , training , health , housing , and social inclusion , which call for support , including at the union level . therefore , the collective power of public and private resources should be harnessed to support the social market value chain development and a more resilient union . __________________ 16 com 206 . 17 com 250 . 18 published as european economy discussion paper 074 in january 2018 .


### as set out in the reflection paper on the social dimension of europe16 and the european pillar of social rights17 , building a more inclusive and fairer union is a key priority for the union to tackle inequality and foster social inclusion policies in europe . inequality of opportunities affects in particular access to education , training and health . investment in the social , skills and human capital - related economy , as well as in the integration of vulnerable populations in the society , can enhance economic opportunities , especially if coordinated at union level . the investeu fund should be used to support investment in education and training , help increase employment , in particular among the unskilled and long - term unemployed , and improve the situation with regard to intergenerational solidarity , the health sector , homelessness , digital inclusiveness , community development , the role and place of young people in society as well as vulnerable people , including third country nationals . the investeu programme should also contribute to the support of european culture and creativity . to counter the profound transformations of societies in the union and of the labour market in the coming decade , it is necessary to invest in human capital , microfinance , social enterprise finance and new social economy business models , including social impact investment and social outcomes contracting . the investeu programme should strengthen nascent social market eco - system , increasing the supply of and access to finance to micro - and social enterprises , to meet the demand of those who need it the most . the report of the high - level task - force on investing in social infrastructure in europe18 has identified investment gaps in social infrastructure and services , including for education , training , health and housing , which call for support , including at the union level . therefore , the collective power of public , commercial and philanthropic capital , as well as support from foundations , should be harnessed to support the social market value chain development and a more resilient union . _________________ 16 com 206 . 17 com 250 . 18 published as european economy discussion paper 074 in january 2018 . ### as set out in the reflection paper on the social dimension of europe16 and the european pillar of social rights17 , and the eu framework for the un convention on the rights of persons with disabilities , building a more inclusive and fairer union is a key priority for the union to tackle inequality and foster social inclusion policies in europe . inequality of opportunities affects in particular access to education , training , culture and cultural heritage , employment , health and social services . investment in the social , skills and human capital - related economy , as well as in the integration of vulnerable populations in the society , in particular people with disabilities , can enhance economic opportunities , especially if coordinated at union level . the investeu fund should be used to support investment in education and training , help increase employment , in particular among the unskilled and long - term unemployed , and improve the situation with regard to intergenerational solidarity , the health and social services sector , social housing , homelessness , digital inclusiveness , community development , the role and place of young people in society as well as vulnerable people , including people with disabilities and third country nationals . the investeu programme should also contribute to the support of european culture and creativity . to counter the profound transformations of societies in the union and of the labour market in the coming decade , it is necessary to invest in human capital , social infrastructure , sustainable and social finance , microfinance , social enterprise finance and new social economy business models , including social impact investment and social outcomes contracting . the investeu programme should strengthen nascent social market eco - system , increasing the supply of and access to finance to micro - and social enterprises and social solidarity institutions , to meet the demand of those who need it the most . the report of the high - level task - force on investing in social infrastructure in europe18 has identified a total investment gap of at least eur 1 , 5 trillion for the period between 2018 and 2030 in social infrastructure and services , including for education , training , health and housing , which call for support , including at the union level . therefore , the collective power of public , commercial and philanthropic capital , as well as support from alternative types of financial providers such as ethical , social and sustainable actors , and from foundations , should be harnessed to support the social market value chain development and a more resilient union . _________________ 16 com 206 . 17 com 250 . 18 published as european economy discussion paper 074 in january 2018 .


### as set out in the reflection paper on the social dimension of europe16 and the european pillar of social rights17 , building a more inclusive and fairer union is a key priority for the union to tackle inequality and foster social inclusion policies in europe . inequality of opportunities affects in particular access to education , training and health . investment in the social , skills and human capital - related economy , as well as in the integration of vulnerable populations in the society , can enhance economic opportunities , especially if coordinated at union level . the investeu fund should be used to support investment in education and training , help increase employment , in particular among the unskilled and long - term unemployed , and improve the situation with regard to intergenerational solidarity , the health sector , homelessness , digital inclusiveness , community development , the role and place of young people in society as well as vulnerable people , including third country nationals . the investeu programme should also contribute to the support of european culture and creativity . to counter the profound transformations of societies in the union and of the labour market in the coming decade , it is necessary to invest in human capital , microfinance , social enterprise finance and new social economy business models , including social impact investment and social outcomes contracting . the investeu programme should strengthen nascent social market eco - system , increasing the supply of and access to finance to micro - and social enterprises , to meet the demand of those who need it the most . the report of the high - level task - force on investing in social infrastructure in europe18 has identified investment gaps in social infrastructure and services , including for education , training , health and housing , which call for support , including at the union level . therefore , the collective power of public , commercial and philanthropic capital , as well as support from foundations , should be harnessed to support the social market value chain development and a more resilient union . _________________ 16 com 206 . 17 com 250 . 18 published as european economy discussion paper 074 in january 2018 . ### as set out in the reflection paper on the social dimension of europe16 and the european pillar of social rights17 , building a more inclusive and fairer union is a key priority for the union to tackle inequality and foster social inclusion policies in europe . inequality of opportunities affects in particular access to education , training , health , culture and cultural heritage . investment in the social , skills and human capital - related economy , as well as in the integration of vulnerable populations , and in particular persons with a disability , in the society , can enhance economic opportunities , especially if coordinated at union level . the investeu fund should be used to support investment in education and training , as well as in maintenance and modernisation of educational facilities , including seismic retrofit and the elimination of architectural barriers , help increase employment , in particular among the unskilled and long - term unemployed , and improve the situation with regard to intergenerational solidarity , the health sector , homelessness , digital inclusiveness , community development , gender equality , the role and place of young people in society as well as vulnerable people , including persons with a disability and third country nationals . the investeu programme should also contribute to the support of culture and creativity in europe , whereby cultural and creative industries are key - drivers for growth and do play a role traditionally at local and regional level , ensuring the socio - economic inclusion and allowing for an integrated sustainable urban regeneration . to counter the profound transformations of societies in the union and of the labour market in the coming decade , it is necessary to invest in human capital , microfinance , social enterprise finance and new social economy business models , including social impact investment and social outcomes contracting . the investeu programme should strengthen the nascent social market eco - system , increasing the supply of and access to finance to micro - and social enterprises , ensuring that it meets the demand of those who need it the most . the report of the high - level task - force on investing in social infrastructure in europe18 has identified investment gaps in social infrastructure and services , including for education , training , health and housing , which call for support , including at the union level . therefore , the collective power of public , commercial and philanthropic capital , as well as support from foundations , should be harnessed to support the social market value chain development and a more resilient union . _________________ 16 com 206 final . 17 com 250 final . 18 published as european economy discussion paper 074 in january 2018 .


### as set out in the reflection paper on the social dimension of europe16 and the european pillar of social rights17 , building a more inclusive and fairer union is a key priority for the union to tackle inequality and foster social inclusion policies in europe . inequality of opportunities affects in particular access to education , training and health . investment in the social , skills and human capital - related economy , as well as in the integration of vulnerable populations in the society , can enhance economic opportunities , especially if coordinated at union level . the investeu fund should be used to support investment in education and training , help increase employment , in particular among the unskilled and long - term unemployed , and improve the situation with regard to intergenerational solidarity , the health sector , homelessness , digital inclusiveness , community development , the role and place of young people in society as well as vulnerable people , including third country nationals . the investeu programme should also contribute to the support of european culture and creativity . to counter the profound transformations of societies in the union and of the labour market in the coming decade , it is necessary to invest in human capital , microfinance , social enterprise finance and new social economy business models , including social impact investment and social outcomes contracting . the investeu programme should strengthen nascent social market eco - system , increasing the supply of and access to finance to micro - and social enterprises , to meet the demand of those who need it the most . the report of the high - level task - force on investing in social infrastructure in europe18 has identified investment gaps in social infrastructure and services , including for education , training , health and housing , which call for support , including at the union level . therefore , the collective power of public , commercial and philanthropic capital , as well as support from foundations , should be harnessed to support the social market value chain development and a more resilient union . _________________ 16 com 206 . 17 com 250 . 18 published as european economy discussion paper 074 in january 2018 . ### as set out in the reflection paper on the social dimension of europe16 and the european pillar of social rights17 , and the eu framework for the un convention on the rights of persons with disabilities , building a more inclusive and fairer union is a key priority for the union to tackle inequality and foster social inclusion policies in europe . inequality of opportunities affects in particular access to education , training , culture , employment , health and social services . investment in the social , skills and human capital - related economy , as well as in the integration of vulnerable populations in the society , can enhance economic opportunities , especially if coordinated at union level . the investeu fund should be used to support investment in education and training , help increase employment , in particular among the unskilled and long - term unemployed , and improve the situation with regard to intergenerational solidarity , the health and social services sector , social housing , homelessness , digital inclusiveness , community development , the role and place of young people in society as well as vulnerable people , including third country nationals . the investeu programme should also contribute to the support of european culture and creativity . to counter the profound transformations of societies in the union and of the labour market in the coming decade , it is necessary to invest in human capital , social infrastructure , sustainable and social finance , microfinance , social enterprise finance and new social economy business models , including social impact investment and social outcomes contracting . the investeu programme should strengthen nascent social market eco - system , increasing the supply of and access to finance to micro - and social enterprises and social solidarity institutions , to meet the demand of those who need it the most . the report of the high - level task - force on investing in social infrastructure in europe18 has identified a total investment gap of at least eur 1 , 5 trillion for the period between 2018 and 2030 in social infrastructure and services , including for education , training , health and housing , which call for support , including at the union level . therefore , the collective power of public , commercial and philanthropic capital , as well as support from alternative types of financial providers such as ethical , social and sustainable actors , and from foundations , should be harnessed to support the social market value chain development and a more resilient union . _________________ 16 com 206 . 17 com 250 . 18 published as european economy discussion paper 074 in january 2018 .


### the eu guarantee underpinning the investeu fund should be implemented indirectly by the commission relying on implementing partners with outreach to final recipients . a guarantee agreement allocating guarantee capacity from the investeu fund should be concluded by the commission with each implementing partner , to support its financing and investment operations meeting the investeu fund objectives and eligibility criteria . the investeu fund should be provided with a specific governance structure to ensure the appropriate use of the eu guarantee . ### the eu guarantee underpinning the investeu fund should be implemented indirectly by the commission relying on implementing partners with outreach to final recipients . a guarantee agreement allocating guarantee capacity from the investeu fund should be concluded by the commission with each implementing partner , to support its financing and investment operations meeting the investeu fund objectives and tailor made eligibility criteria . the investeu fund should be provided with a specific governance structure to ensure the appropriate use of the eu guarantee .


### in selecting implementing partners for the deployment of the investeu fund , the commission should consider the counterpart ' s capacity to fulfil the objectives of the investeu fund and contribute its own resources , in order to ensure adequate geographical coverage and diversification , to crowd - in private investors and to provide sufficient risk diversification as well as new solutions to address market failures and sub - optimal investment situations . given its role under the treaties , its capacity to operate in all member states and the existing experience under the current financial instruments and the efsi , the european investment bank group should remain a privileged implementing partner under the investeu fund ' s eu compartment . in addition to the eib group , national promotional banks or institutions should be able to offer a complementary financial product range given that their experience and capabilities at regional level could be beneficial for the maximisation of the impact of public funds on the territory of the union . moreover , it should be possible to have other international financial institutions as implementing partners , in particular when they present a comparative advantage in terms of specific expertise and experience in certain member states . it should also be possible for other entities fulfilling the criteria laid down in the financial regulation to act as implementing partners . ### in selecting implementing partners for the deployment of the investeu fund , the commission should consider the counterpart ' s capacity to fulfil the objectives of the investeu fund and contribute its own resources , in order to ensure adequate geographical coverage and diversification for all member states , to crowd - in private investors and to provide sufficient risk diversification as well as new solutions to address market failures and sub - optimal investment situations . investment through the investeu fund should contribute to decrease of regional development disparities . given its role under the treaties , its capacity to operate in all member states and the existing experience under the current financial instruments and the efsi , the european investment bank group should remain a privileged implementing partner under the investeu fund ' s eu compartment . in addition to the eib group , national promotional banks or institutions should be able to offer a complementary financial product range given that their experience and capabilities at regional level could be beneficial for the maximisation of the impact of public funds on the territory of the union . moreover , it should be possible to have other international financial institutions as implementing partners , in particular when they present a comparative advantage in terms of specific expertise and experience in certain member states . it should also be possible for other entities fulfilling the criteria laid down in the financial regulation to act as implementing partners .


### in selecting implementing partners for the deployment of the investeu fund , the commission should consider the counterpart ' s capacity to fulfil the objectives of the investeu fund and contribute its own resources , in order to ensure adequate geographical coverage and diversification , to crowd - in private investors and to provide sufficient risk diversification as well as new solutions to address market failures and sub - optimal investment situations . given its role under the treaties , its capacity to operate in all member states and the existing experience under the current financial instruments and the efsi , the european investment bank group should remain a privileged implementing partner under the investeu fund ' s eu compartment . in addition to the eib group , national promotional banks or institutions should be able to offer a complementary financial product range given that their experience and capabilities at regional level could be beneficial for the maximisation of the impact of public funds on the territory of the union . moreover , it should be possible to have other international financial institutions as implementing partners , in particular when they present a comparative advantage in terms of specific expertise and experience in certain member states . it should also be possible for other entities fulfilling the criteria laid down in the financial regulation to act as implementing partners . ### in selecting implementing partners for the deployment of the investeu fund , the commission should consider the counterpart ' s capacity to fulfil the objectives of the investeu fund and contribute its own resources , in order to ensure adequate geographical coverage and diversification , to crowd - in private investors and to provide sufficient risk diversification as well as new solutions to address market failures and sub - optimal investment situations . given its role under the treaties , its capacity to operate in all member states and the existing experience under the current financial instruments and the efsi , the european investment bank group should remain a privileged implementing partner under the investeu fund ' s eu compartment . in addition to the eib group , national promotional banks or institutions should be able to offer a complementary financial product range given that their experience and capabilities at regional level could be beneficial for the maximisation of the impact of public funds on all the territory of the union . moreover , it should be possible to have other international financial institutions as implementing partners , in particular when they present a comparative advantage in terms of specific expertise and experience in certain member states . it should also be possible for other entities fulfilling the criteria laid down in the financial regulation to act as implementing partners .


### the eu guarantee under the member state compartment should be allocated to any implementing partner eligible according to [ article 62 ] of the [ financial regulation ] , including national or regional promotional banks or institutions , the eib , the european investment fund and other multilateral development banks . when selecting implementing partners under the member state compartment , the commission should take into account the proposals made by each member state . in accordance with [ article 154 ] of the [ financial regulation ] , the commission must carry out an assessment of the rules and procedures of the implementing partner to ascertain that they provide a level of protection of the financial interest of the union equivalent to the one provided by the commission . ### the eu guarantee under the member state compartment should be allocated to any implementing partner eligible according to [ article 62 ] of the [ financial regulation ] , including national or regional promotional banks or institutions , the eib , the european investment fund and other multilateral development banks . where the deployment of the member state compartment is to target policy actions already addressed by the eu compartment through similar financing and investment operations , the member state compartment and the eu compartment shall have the same implementing partners . when selecting implementing partners under the member state compartment , the commission should take into account the proposals made by each member state . in accordance with [ article 154 ] of the [ financial regulation ] , the commission must carry out an assessment of the rules and procedures of the implementing partner to ascertain that they provide a level of protection of the financial interest of the union equivalent to the one provided by the commission .


### in order to ensure a wide geographic outreach of the advisory services across the union and to successfully leverage local knowledge about the investeu fund , a local presence of the investeu advisory hub should be ensured , where needed , taking into account existing support schemes , with a view to provide tangible , proactive , tailor - made assistance on the ground . ### in order to ensure a wide geographic outreach of the advisory services across the union and to successfully leverage local knowledge about the investeu fund , a local presence of the investeu advisory hub in each member state and in regions facing difficulties in developing projects under the investeu fund should be ensured , where needed , taking into account existing support schemes , with a view to provide tangible , proactive , tailor - made assistance on the ground .


### in order to ensure a wide geographic outreach of the advisory services across the union and to successfully leverage local knowledge about the investeu fund , a local presence of the investeu advisory hub should be ensured , where needed , taking into account existing support schemes , with a view to provide tangible , proactive , tailor - made assistance on the ground . ### in order to ensure a wide and fair geographic outreach of the advisory services across the union and to successfully leverage local knowledge about the investeu fund , a local presence of the investeu advisory hub should be ensured in every member state , especially in areas performing poorest in the awarding of contracts , taking into account existing support schemes , with a view to provide tangible , proactive , tailor - made assistance on the ground .


### to support financing and investment operations in research , innovation and digitisation ; ### to support financing and investment operations in research , innovation , the circular economy and digitisation ;


### the amount referred to in paragraph 3 may also be used for technical and administrative assistance for the implementation of the investeu programme , such as preparatory , monitoring , control , audit and evaluation activities including corporate information technology systems . ### the amount referred to in paragraph 3 may also be used for technical and administrative assistance for the implementation of the investeu programme , such as information , training , preparatory , monitoring , control , audit and evaluation activities including corporate information technology systems .


### be consistent with the policy objectives and comply with the eligibility criteria set out in the rule on the union programme under which the support is decided ; ### be consistent with the policy objectives and comply with the eligibility criteria set out in the rule on the union programme under which the support is decided ; not a single financing or investment operation covered by the eu guarantee may undermine or go against the implementation of the sdgs , the eu ' s commitments in the paris agreement , the eu ' s 2030 climate and energy objectives and the achievement of a net - zero greenhouse gas emissions economy by 2050 ;


### sustainable infrastructure policy window : comprises sustainable investment in the areas of transport , energy , digital connectivity , supply and processing of raw materials , space , oceans and water , waste , nature and other environment infrastructure , equipment , mobile assets and deployment of innovative technologies that contribute to the environmental or social sustainability objectives of the union , or to both , or meet the environmental or social sustainability standards of the union ; ### sustainable infrastructure policy window : comprises sustainable investment in the areas of transport and logistics , urban mobility , energy , energy efficiency , communication , digital and broadband connectivity , tourism , supply and processing of raw materials , space , oceans and water , waste , the circular economy , nature and other environment infrastructure , cultural heritage , equipment , mobile assets and deployment of innovative technologies that contribute to the environmental or social sustainability objectives of the union , or to both , as well as to the long - term sustainable development of the region in which the operation is taking place ;


### social investment and skills policy window : comprises microfinance , social enterprise finance and social economy ; skills , education , training and related services ; social infrastructure ; social innovation ; health and long - term care ; inclusion and accessibility ; cultural activities with a social goal ; integration of vulnerable people , including third country nationals . ### social and cultural investment and skills policy window : comprises microfinance , social enterprise finance , social economy and the not - for - profit sector ; skills , education , training and related services ; social infrastructure ; social innovation ; health and long - term care ; inclusion and accessibility ; cultural and sports activities with a social goal ; actions relating to young people , especially those not in education , employment or training ; cultural and creative industries and organisations with intercultural dialogue and cohesion goals as well as integration of vulnerable people , including third country nationals .


### social investment and skills policy window : comprises microfinance , social enterprise finance and social economy ; skills , education , training and related services ; social infrastructure ; social innovation ; health and long - term care ; inclusion and accessibility ; cultural activities with a social goal ; integration of vulnerable people , including third country nationals . ### social investment window : comprises microfinance , social enterprise finance and social economy ; a just transition for workers , skills , education , training and related services ; social infrastructure ; health and long - term care with a particular focus on the poorer members of society ; and the integration of the most vulnerable people , including third country nationals legally residing in one of the member states of the eu .


### social investment and skills policy window : comprises microfinance , social enterprise finance and social economy ; skills , education , training and related services ; social infrastructure ; social innovation ; health and long - term care ; inclusion and accessibility ; cultural activities with a social goal ; integration of vulnerable people , including third country nationals . ### social investment and skills policy window : comprises ethical and sustainable finance , microfinance , workers buyouts , social enterprise finance and social economy ; skills , education , training and related services ; social infrastructure ; social innovation ; health and long - term care ; inclusion and accessibility ; cultural activities with a social goal ; cultural and creative sectors , including with intercultural dialogue and social cohesion goals ; integration of vulnerable people , including third country nationals .


### financing and investment operations under the sustainable infrastructure policy window referred to in point of paragraph shall be subject to climate , environmental and social sustainability proofing with a view to minimise detrimental impacts and maximise benefits on climate , environment and social dimension . for that purpose , promoters requesting financing shall provide adequate information based on guidance to be developed by the commission . projects below a certain size defined in the guidance shall be excluded from the proofing . ### financing and investment operations under the sustainable infrastructure policy window referred to in point of paragraph shall be subject to climate , environmental and social sustainability proofing with a view to minimising detrimental impacts , and maximising the benefits , in terms of climate , the environment , the efficient use of resources and the social dimension . for that purpose , promoters requesting financing shall provide adequate information based on guidance to be developed by the commission . projects below a certain size defined in the guidance shall be excluded from the proofing .


### the implementing partner or partners which have expressed their interest and the obligation of the commission to inform the member state about the implementing partner or partners selected ; ### the implementing partner or partners selected in agreement with the member state ;


### support of the eu guarantee may be granted for financing and investment operations covered by this regulation for an investment period ending on 31 december 2027 . contracts between the implementing partner and the final recipient or the financial intermediary or other entity referred to in article 13 shall be signed by 31 december 2028 . ### support of the eu guarantee may be granted for financing and investment operations covered by this regulation for an investment period ending on 31 december 2027 . this support must entail higher provisioning rates for smes which show that they are facing objective difficulties in gaining access to credit . contracts between the implementing partner and the final recipient or the financial intermediary or other entity referred to in article 13 shall be signed by 31 december 2028 .


### the commission shall be advised by an advisory board which shall have two configurations , namely representatives of implementing partners and representatives of member states . ### the commission shall be advised by an&#160 ; advisory board which shall have two configurations , namely representatives of&#160 ; implementing partners and representatives of member states . both&#160 ; configuration shall strive to ensure gender balance among their members . &#160 ;


### four members shall be permanent members of all four configurations of the investment committee . in addition , the four configurations shall each have two experts with experience in investment in sectors covered by that policy window . at least one of the permanent members shall have expertise in sustainable investment . the commission shall assign the investment committee members to its appropriate configuration or configurations . the investment committee shall elect a chairperson from among its permanent members . ### four members shall be permanent members of all four configurations of the investment committee . in addition , the four configurations shall each have three experts with experience in investment in sectors covered by that policy window . at least one of the permanent members shall have expertise in sustainable investment , and one in cultural and creative policies . their vote should be taken into account when deciding in the matters of their competence . the commission shall assign the investment committee members to its appropriate configuration or configurations . the investment committee shall elect a chairperson from among its permanent members .


### the scoreboard shall be publicly available after the signature of a financing or investment operation or sub - project , if applicable . the publication shall not contain commercially sensitive information or personal data not to be disclosed under the union data protection rules . ### the scoreboard shall be publicly available after the signature of a financing or investment operation or sub - project , if applicable . the publication shall not contain commercially sensitive information or personal data not to be disclosed under the union data protection rules . the rate of the projects rejected over the projects accepted per member state should be included annually . a justification of acceptance or rejection should be provided for every project .


### the scoreboard shall be publicly available after the signature of a financing or investment operation or sub - project , if applicable . the publication shall not contain commercially sensitive information or personal data not to be disclosed under the union data protection rules . ### the scoreboard shall be publicly available after the signature of a financing or investment operation or sub - project , if applicable . the publication shall not contain commercially sensitive information or personal data not to be disclosed under the union data protection rules . a rate of the projects rejected over the projects accepted per member state should be included annually . a justification of acceptance or rejection should be provided for every project .


### the investeu advisory hub shall be available as a component under each policy window referred to in article 7 covering all the sectors under that window . in addition , cross - sectoral advisory services shall be available . ### the investeu advisory hub shall be available as a component under each policy window referred to in article 7 covering all the sectors under that window . in addition , cross - sectoral and capacity building advisory services shall be available .


### the investeu advisory hub shall be available as a component under each policy window referred to in article 7 covering all the sectors under that window . in addition , cross - sectoral advisory services shall be available . ### the investeu advisory hub shall be available as a component under each policy window referred to in article 7 covering all the sectors under that window , in particular for those contributing to eu climate objectives . in addition , cross - sectoral advisory services shall be available .


### supporting actions and leveraging local knowledge to facilitate the use of the investeu fund support across the union and contributing actively where possible to the objective of sectorial and geographical diversification of the investeu fund by supporting the implementing partners in originating and developing potential financing and investment operations ; ### supporting actions and leveraging local knowledge to facilitate the use of the investeu fund support across the union and contributing actively to the objective of sectorial and geographical diversification of the investeu fund by supporting the implementing partners in originating and developing potential financing and investment operations ;


### the investeu advisory hub shall have local presence , where necessary . it shall be established in particular in member states or regions that face difficulties in developing projects under the investeu fund . the investeu advisory hub shall assist in the transfer of knowledge to the regional and local level with a view to building up regional and local capacity and expertise for support referred to in paragraph 1 . ### the invest eu advisory hub shall assist in the transfer of knowledge to the regional and local level , taking into account the existing local landscape , with a view to building up regional and local capacity and expertise for support referred to in paragraph1 . the invest eu advisory hub may have a local presence in member states or regions that face persistent difficulties in developing projects under the invest eu fund . in the latter case , this local presence shall have a strong focus on the creation of a sustainable local / regional / national advisory environment .


### in addition , each implementing partner shall submit every six months a report to the commission on the financing and investment operations covered by this regulation , broken down by the eu compartment and the member state compartment by member state , as appropriate . the report shall include an assessment of compliance with the requirements on the use of the eu guarantee and with the key performance indicators laid down in annex iii to this regulation . the report shall also include operational , statistical , financial and accounting data on each financing and investment operation and at the compartment , policy window and the investeu fund level . one of those reports shall contain the information the implementing partners shall provide in accordance with [ article 155 ] of the [ financial regulation ] . ### in addition , each implementing partner shall submit every three months a report to the commission on the financing and investment operations covered by this regulation , broken down by the eu compartment and the member state compartment by member state , as appropriate . the report shall include an assessment of compliance with the requirements on the use of the eu guarantee and with the key performance indicators laid down in annex iii to this regulation . the report shall also include operational , statistical , financial and accounting data on each financing and investment operation and at the compartment , policy window and the investeu fund level . one of those reports shall contain the information the implementing partners shall provide in accordance with [ article 155 ] of the [ financial regulation ] .


### expansion of the generation , supply or use of clean and sustainable renewable energy ; ### expansion of the generation , supply , storage&#160 ; or use of clean and sustainable renewable energy ;


### smart and sustainable urban mobility projects ; ### smart and sustainable urban mobility projects , including inland waterway and air transport ;


### projects and enterprises that implement circular economy by integrating resource efficiency aspects in the production and product life - cycle , including the sustainable supply of primary and secondary raw materials ; ### projects and enterprises that implement circular economy by integrating resource efficiency aspects in the production and product life - cycle , including the sustainable supply of primary and secondary raw materials as well as the eventual re - use and recycling ;


### financial support to entities employing up to 3 000 employees , with a particular focus on smes and small mid - cap companies , in particular through : ### financial support to entities employing up to 3 000 employees , with a particular focus on smes , small mid cap companies and social enterprises , in particular through :


### microfinance , social enterprise finance and social economy ; ### ethical and sustainable finance , microfinance , social enterprise finance and social economy ;


### to foster the competitiveness of space systems and technologies , addressing in particular vulnerability of supply chains ; ### to foster the competitiveness of space systems and technologies , addressing in particular independence of supply chains ;


### the european fund for sustainable development should be composed of regional investment platforms , which will combine financing from existing blending facilities and the efsd guarantee . the existing blending facilities for africa are created by commission decision c5210 and by commission implementing decision c3436 for the neighbourhood . each regional investment platform should have an operational board that supports the commission in defining regional and sectorial investment goals , regional , sectorial and thematic investment windows , formulates opinions on the blending operations and discusses the use of the efsd guarantee in line with the investment windows to be defined . ### the efsd should be composed of regional investment platforms , which will combine financing from existing blending facilities and the efsd guarantee . the regional investment platforms should be created by transforming the existing blending facilities created by commission decisions . the regional investment platforms for africa and the neighbourhood should be established first , and the geographical scope of the efsd could be extended by a delegated act . each regional investment platform should have an operational board that supports the commission in defining regional and sectorial investment goals , regional , sectorial and thematic investment windows , formulates opinions on the blending operations and discusses the use of the efsd guarantee in line with the investment windows to be defined .


### coordination and coherence of the efsd with the european investment bank ' s external lending mandate as set out in decision [ to be adopted ] , including the eib resilience initiative , as well as with the acp investment facility23 should be ensured through the strategic board of the efsd . __________________ 23 annex ii to the cotonou agreement ### a strategic board of the efsd should be created to support the commission in setting strategic guidance and overall investment goals as well as in ensuring an appropriate and diversified geographical and thematic coverage for investment windows . it should support overall coordination , complementarity and coherence between the regional investment platforms , between the three pillars of the eip , between the eip and the union ' s other initiatives on migration , as well as with union external financing instruments and trust funds , with the eib’s external lending mandate , including the eib resilience initiative , and with the acp investment facility23 . __________________ 23 annex ii to the cotonou agreement


### as the funds of the edf are to be used for the countries eligible under the 11th european development fund 25 , it requires the allocation of a minimum of eur 400 000 000 of efsd guarantee coverage for investments throughout the implementation period of the efsd guarantee . the efsd guarantee should only become available when eur 400 000 000 of 11th edf funds have been allocated to the efsd guarantee fund . __________________ 25 internal agreement between the representatives of the governments of the member states of the european union , meeting within the council , on the financing of european union aid under the multiannual financial framework for the period 2014 to 2020 , in accordance with the acp - eu partnership agreement and on the allocation of financial assistance for the overseas countries and territories to which part four of the treaty on the functioning of the european union applies . ### as the funds of the edf are to be used for the countries eligible under the 11th european development fund 25 , it requires the allocation of a minimum of eur 400 000 000 of efsd guarantee coverage for investments throughout the implementation period of the efsd guarantee . the efsd guarantee should only become available when a contribution of eur 400 000 000 of 11th edf funds to the efsd guarantee fund has been confirmed . __________________ 25 internal agreement between the representatives of the governments of the member states of the european union , meeting within the council , on the financing of european union aid under the multiannual financial framework for the period 2014 to 2020 , in accordance with the acp - eu partnership agreement and on the allocation of financial assistance for the overseas countries and territories to which part four of the treaty on the functioning of the european union applies .


### the commission should report annually to the european parliament and the council on the financing and investment operations covered by the efsd guarantee with a view to ensuring accountability to the european citizens . the report should be made public in order to allow relevant stakeholders , including civil society , to express their views . the commission should also report annually to the european parliament and the council on the management of the efsd guarantee fund so that accountability and transparency are ensured . ### the commission should report annually to the european parliament and the council and the joint parliamentary assembly acp - eu on the financing and investment operations covered by the efsd guarantee with a view to ensuring accountability to the european citizens and partner countries . the report should be made public in order to allow relevant stakeholders , including civil society , to express their views . the commission should also report annually to the european parliament and the council on the management of the efsd guarantee fund so that accountability and transparency are ensured .


### the efsd shall contribute to the achievement of the sustainable development goals of the 2030 agenda with a particular focus on sustainable growth , job creation , socio - economic sectors and on the support to micro , small and medium sized enterprises , thus addressing root causes of migration and contributing to sustainable reintegration of returned migrants in their countries of origin while maximising additionality , delivering innovative products and crowding in private sector funds . ### the efsd shall contribute to the achievement of the sustainable development goals of the 2030 agenda and be guided by the objectives set out in article 21 of the treaty on european union and article 208 tfeu and the internationally agreed development effectiveness principles , thus contributing to the union ' s development and neighbourhood policies and the new partnership framework with third countries under the european agenda on migration , with a particular focus on poverty eradication , long - term sustainable and inclusive growth , the creation of decent jobs , socio - economic sectors and on the support to micro , small and medium sized enterprises . in so doing , the efsd shall , inter alia , contribute to addressing the specific socio - economic root causes of migration , foster the sustainable reintegration of migrants returning to their countries of origin and strengthen the resilience of host communities .


### the efsd shall contribute to the achievement of the sustainable development goals of the 2030 agenda with a particular focus on sustainable growth , job creation , socio - economic sectors and on the support to micro , small and medium sized enterprises , thus addressing root causes of migration and contributing to sustainable reintegration of returned migrants in their countries of origin while maximising additionality , delivering innovative products and crowding in private sector funds . ### the efsd shall contribute to the achievement of the sustainable development goals of the 2030 agenda and be guided by the objectives set out in article 21 of the treaty on european union and article 208 tfeu and the internationally agreed development effectiveness principles , thus contributing to the union ' s development and neighbourhood policies , with a particular focus on poverty eradication , long - term sustainable and inclusive growth , job creation , socio - economic sectors and on the support to micro , small and medium sized enterprises . in so doing , the efsd shall , inter alia , contribute to addressing the specific socio - economic root causes of migration and foster sustainable reintegration of migrants returning to their countries of origin or transit , as well as strengthen resilience of host communities .


### the efsd shall contribute to the achievement of the sustainable development goals of the 2030 agenda with a particular focus on sustainable growth , job creation , socio - economic sectors and on the support to micro , small and medium sized enterprises , thus addressing root causes of migration and contributing to sustainable reintegration of returned migrants in their countries of origin while maximising additionality , delivering innovative products and crowding in private sector funds . ### the efsd shall contribute to the achievement of the sustainable development goals of the 2030 agenda and be guided by the objectives set out in article 21 of the treaty on european union and article 208 tfeu and the internationally agreed development effectiveness principles , thus contributing to the union ' s development and neighbourhood policies and the new partnership framework with third countries under the european agenda on migration , with a particular focus on poverty eradication , long - term sustainable and inclusive growth , job creation , socio - economic sectors and on the support to micro , small and medium sized enterprises . in so doing , the efsd shall , inter alia , contribute to addressing the specific socio - economic root causes of migration and foster sustainable reintegration of migrants returning to their countries of origin or transit , as well as strengthen resilience of host communities .


### the efsd shall be composed of regional investment platforms , which will combine financing from existing blending facilities and the efsd guarantee . ### the efsd shall be composed of regional investment platforms , established on the basis of existing external action blending facilities of the union and combining their blending operations and the efsd guarantee .


### it shall provide strategic guidance and support the commission in setting overall investment goals as regards the use of the efsd guarantee . the strategic board shall also support overall coordination and coherence between the regional investment platforms and with the external lending mandate operations managed by the eib , including the eib resilience initiative . ### the strategic board shall provide strategic guidance and support the commission in setting overall investment goals as regard the use of the efsd guarantee , as well as in monitoring an appropriate and diversified geographical and thematic coverage for investment windows , while giving special attention to least developed countries and fragile states . it shall make sure that the efsd operations support the strategic priorities of union external action and development policy , and in particular its guiding principles and objectives as referred to article 21 teu and 208 tfeu respectively .


### the union shall provide an irrevocable and unconditional guarantee on first demand to the eligible counterpart for the financing and investment operations covered by this regulation starting in the african and neighbourhood partner countries . ### the union shall provide an irrevocable and unconditional guarantee on first demand to the eligible counterpart for the financing and investment operations covered by this regulation .


### contribute to economic and social development , with particular focus on sustainability and job creation , thus addressing root causes of migration and contributing to sustainable reintegration of returned migrants in their countries of origin ; ### contribute to economic and social development and to the achievement of the un sustainable development goals , with a particular focus on poverty eradication , sustainability and fostering decent employment , economic opportunities and entrepreneurship , promoting , in particular , gender equality and the empowerment of women and young people , thus addressing specific root causes of migration , enhancing resilience and contributing to the sustainable reintegration of migrants returned to their countries of origin , while strengthening the rule of law , good governance and human rights ;


### target socio - economic sectors , in particular infrastructure including sustainable energy , water , transport , information and communications technologies , environment , sustainable use of natural resources and blue growth , social infrastructure , human capital , in order to improve the socio - economic environment ; ### strengthen socio - economic sectors , in particular infrastructure including renewable and sustainable energy , water and waste , transport , information and communications technologies , environment , sustainable use of natural resources and blue growth , social infrastructure , human capital , in order to improve the socio - economic environment ;


### the efsd guarantee shall support financing and investment operations which in particular : ### the efsd guarantee shall support financing and investment operations which address market failures or sub - optimal investment situations and which :


### are economically and financially viable , taking also into account the possible support from , and co - financing by , private and public partners to the project ; ### are economically and financially viable , with due regard to the possible support from , and co - financing by , private and public partners to the project , while taking into account the specific operating environment and capacities of countries identified as experiencing fragility or conflict , least - developed countries and heavily indebted poor countries where more concessional terms can be given ;


### the commission may define investment windows for specific regions or partner countries or for both , for specific sectors , for specific projects or for specific categories of final beneficiaries or for both to be funded by instruments referred to in article 9 to be covered by the efsd guarantee up to a fixed amount . all requests for financial support within investment windows shall be made to the commission . ### the commission shall define investment windows for specific regions or partner countries or for both , for specific sectors , for specific projects or for specific categories of final beneficiaries or for both to be funded by instruments referred to in article 9 to be covered by the efsd guarantee up to a fixed amount . the choice of investment windows shall be duly justified by an analysis of market failure or sub - optimal investment situations . that analysis shall be carried out by the commission in cooperation with potentially eligible counterparts and stakeholders . investment windows shall be defined with a view to allocating a significant share of the efsd guarantee to fragile and conflict - affected countries , landlocked countries and least - developed countries .


### the commission may define investment windows for specific regions or partner countries or for both , for specific sectors , for specific projects or for specific categories of final beneficiaries or for both to be funded by instruments referred to in article 9 to be covered by the efsd guarantee up to a fixed amount . all requests for financial support within investment windows shall be made to the commission . ### the commission shall define investment windows for specific regions or partner countries or for both , for specific sectors , for specific projects or for specific categories of final beneficiaries or for both to be funded by instruments referred to in article 9 to be covered by the efsd guarantee up to a fixed amount . the choice of investment windows shall be duly justified by an analysis of the market failure or sub - optimal investment situations . such analysis shall be carried out by the commission in cooperation with potentially eligible counterparts and stakeholders . investment windows shall be defined with a view to allocating a significant share of the efsd guarantee to fragile and conflict - affected countries , landlocked countries and least - developed countries .


### coverage and terms of the efsd guarantee agreements ### coverage and terms of the efsd guarantee


### at the request of the member states , the contributions made by them may be earmarked for the initiation of projects in specific regions , countries , sectors or investment windows . ### at the request of the member states and subject to approval by the strategic board , the contributions made by them may be earmarked for the initiation of projects in specific regions or existing investment windows .


### at least eur 400 000 000 of efsd guarantee coverage shall be allocated for investments in the partner countries eligible under the 11th edf throughout the implementation period of the efsd guarantee . ### at least eur 400 000 000 of efsd guarantee coverage shall be allocated for investments in the partner countries eligible under the 11th edf throughout the implementation period of the efsd guarantee , in line with the objectives of the cotonou partnership agreement .


### the remuneration of the guarantee ; ### the remuneration of the guarantee , which shall reflect the risk level . it shall be possible for the remuneration to be partly subsidised in order to give more concessional terms , in duly justified cases , in particular in the countries referred to in point of article 8 ;


### any surplus shall be paid to the general budget of the union ; ### without prejudice to paragraph 8 , any surplus shall constitute internal assigned revenue in accordance with article 21 of regulation no 966 / 2012 to the benefit of union development cooperation and neighbourhood instruments ;


### after a call on the efsd guarantee , endowments to the efsd guarantee fund provided for in points , and of paragraph 2 exceeding the resources necessary to reach the provisioning rate at the level referred to in paragraph 5 shall be used within the limits of the initial investment period provided for in article 7 to restore the efsd guarantee up to its initial amount . ### after a call on the efsd guarantee , endowments to the efsd guarantee fund provided for in points , and of paragraph 2 exceeding the resources necessary to reach the provisioning rate at the level referred to in paragraph 5 or any surplus provided for in point of paragraph 6 shall first be used within the limits of the maximum period provided for in article 7 to restore the efsd guarantee up to its initial amount .


### by 31 december 2020 and every three years thereafter , the commission shall evaluate the use of the efsd guarantee fund . the commission shall submit its evaluation report to the european parliament and the council . that evaluation report shall be accompanied by an opinion of the court of auditors . ### by 31 december 2019 and every three years thereafter , the commission shall evaluate the use of the efsd guarantee fund . the commission shall submit its evaluation report to the european parliament and the council . that evaluation report shall be accompanied by an opinion of the court of auditors .


### transparency and public disclosure of information ### transparency , communication and public disclosure of information


### in their financing and investment operations , the eligible counterparts shall not support any activities carried out for illegal purposes , including money laundering , terrorist financing , organised crime , tax fraud and tax evasion , corruption , and fraud affecting the financial interests of the union . the eligible counterparts shall not participate in any financing or investment operation through a vehicle located in a non - cooperative jurisdiction , in accordance with its policy towards weakly regulated or non - cooperative jurisdictions based on policies of the union , the organisation for economic co - operation and development or the financial action task force . ### in their financing and investment operations , the eligible counterparts shall not support any activities carried out for illegal purposes , including money laundering , terrorist financing , organised crime , tax fraud and tax evasion , corruption , and fraud affecting the financial interests of the union . in particular , the eligible counterparts shall neither participate in any financing or investment operation through a vehicle located in a jurisdiction that does not cooperate with the union in relation to the application of the internationally agreed tax standards on transparency and the exchange of information nor maintain business relations with entities established in such a jurisdiction . in their financing and investment operations covered by this regulation , the eligible counterparts shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes , or practices that do not comply with union tax good governance principles , as set out in union law , including commission recommendations and communications . when concluding agreements with financial intermediaries , the eligible counterparts shall transpose the requirements referred to in this paragraph in the relevant contracts and shall request country - by - country reporting concerning their observance .


### the paris agreement , inter alia , sets out a long - term goal in line with the objective to keep the global temperature increase well below 2°c above pre - industrial levels and to pursue efforts to keep it to 1 . 5°c above pre - industrial levels . in order to achieve this goal , the parties should prepare , communicate and maintain successive nationally determined contributions . the paris agreement replaces the approach taken under the 1997 kyoto protocol which will not be continued beyond 2020 . the paris agreement also calls for a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century , and invites parties to take action to conserve and enhance , as appropriate , sinks and reservoirs of greenhouse gases , including forests . ### the paris agreement , inter alia , sets out a long - term goal in line with the objective to keep the global temperature increase well below 2°c above pre - industrial levels and to pursue efforts to keep it to 1 . 5°c above pre - industrial levels . in order to achieve this goal , the parties should prepare , communicate and maintain successive nationally determined contributions . the paris agreement replaces the approach taken under the 1997 kyoto protocol which will not be continued beyond 2020 . the paris agreement also calls for a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century , and invites parties to take action to conserve and enhance , as appropriate , sinks and reservoirs of greenhouse gases , including forests . parties acknowledge that adaptation action should follow a fully transparent approach , taking into account ecosystems and should be based on and guided by the best available science .


### the european council of 23 - 24 october 2014 also acknowledged the multiple objectives of the agriculture and land use sector , with their lower mitigation potential as well as the need to ensure coherence between the union food security and climate change objectives . the european council invited the commission to examine the best means of encouraging the sustainable intensification of food production , while optimising the sector ' s contribution to greenhouse gas mitigation and sequestration , including through afforestation , and to establish policy on how to include land use , land use change and forestry into the 2030 greenhouse gas mitigation framework as soon as technical conditions allow and in any case before 2020 . ### the european council of 23 - 24 october 2014 also acknowledged the multiple objectives of the agriculture and land use sector , with their lower mitigation potential as well as the need to ensure coherence between the union food security and climate change objectives . the european council invited the commission to examine the best means of encouraging the sustainable intensification of food production , while optimising the sector ' s contribution to greenhouse gas mitigation and sequestration , including through afforestation , and to establish policy on how to include land use , land use change and forestry into the 2030 greenhouse gas mitigation framework as soon as technical conditions allow and in any case before 2020 . it is the role of other policies , e . g . the cap , to incentivize practices going beyond the legal baseline and beyond good standard practice and which represent genuine adaptation , mitigation of climate change and maintenance of the carbon sink , as provision of public goods . - actions should be taken to implement and support , including through result - based payment , activities relating to mitigation and adaptation approaches for the integral and sustainable management of forests , including non - intervention action considering as well non - carbon benefits associated with such approaches , e . g . flood management , resilience and biodiversity . - actions should be taken to implement and support agricultural activities , including through result - based payment , relating to mitigation and adaptation approaches for the integral and sustainable management of cropland , grassland and wetlands , considering as well non - carbon benefits associated with such approaches , e . g . drought and flood management , resilience and biodiversity .


### the european council of 23 - 24 october 2014 also acknowledged the multiple objectives of the agriculture and land use sector , with their lower mitigation potential as well as the need to ensure coherence between the union food security and climate change objectives . the european council invited the commission to examine the best means of encouraging the sustainable intensification of food production , while optimising the sector ' s contribution to greenhouse gas mitigation and sequestration , including through afforestation , and to establish policy on how to include land use , land use change and forestry into the 2030 greenhouse gas mitigation framework as soon as technical conditions allow and in any case before 2020 . ### the european council of 23 - 24 october 2014 also acknowledged the multiple objectives of the agriculture and land use sector , with their lower mitigation potential as well as the need to ensure coherence between the union food security and climate change objectives . in addition , the implementation of technology solutions in agriculture and forestry sectors contribute to enhancing production and reducing the environmental footprint . the european council invited the commission to examine the best means of encouraging the sustainable intensification of food production , while optimising the sector ' s contribution to greenhouse gas mitigation and sequestration , including through afforestation , and to establish policy on how to include land use , land use change and forestry into the 2030 greenhouse gas mitigation framework as soon as technical conditions allow and in any case before 2020 .


### emissions and removals from forest land depend on a number of natural circumstances , age - class structure , as well as past and present management practices . the use of a base year would not make it possible to reflect those factors and resulting cyclical impacts on emissions and removals or their interannual variation . the relevant accounting rules should instead provide for the use of reference levels to exclude the effects of natural and country - specific characteristics . in the absence of the international review under the unfccc and the kyoto protocol , a review procedure should be established to ensure transparency and improve the quality of accounting in this category . ### emissions and removals from forest land depend on a number of natural circumstances , age - class structure , as well as past and present management practices . the use of a base year would not make it possible to reflect those factors and resulting cyclical impacts on emissions and removals or their interannual variation . the relevant accounting rules should instead provide for the use of reference levels , which should be calculated for the year or period as close to 2020 as possible that will reflect the condition of forests as accurately as possible , to exclude the effects of natural and country - specific characteristics . in the absence of the international review under the unfccc and the kyoto protocol , a review procedure should be established to ensure transparency and improve the quality of accounting in this category .


### the increased sustainable use of harvested wood products can substantially limit emissions into and enhance removals of greenhouse gases from the atmosphere . the accounting rules should ensure that member states accurately reflect in accounts the changes in the harvested wood products pool when they take place , to provide incentives for enhanced use of harvested wood products with long life cycles . the commission should provide guidance on methodological issues related to the accounting for harvested wood products . ### the increased sustainable use of harvested wood products can substantially limit emissions by the substitution effect , and enhance removals of greenhouse gases from the atmosphere . the accounting rules should ensure that member states accurately reflect in accounts the changes in the harvested wood products pool when they take place , and to recognize , welcome and incentivize enhanced use of harvested wood products with long life cycles over use for energy purposes . the commission should provide guidance on methodological issues related to the accounting for harvested wood products .


### natural disturbances , such as wildfires , insect and disease infestations , extreme weather events and geological disturbances that are beyond the control of , and not materially influenced by , a member state , may result in greenhouse gas emissions of a temporary nature in the lulucf sector , or may cause the reversal of previous removals . as reversal can also be the result of management decisions , such as decisions to harvest or plant trees , this regulation should ensure that human - induced reversals of removals are always accurately reflected in lulucf accounts . moreover , this regulation should provide member states with a limited possibility to exclude emissions resulting from disturbances that are beyond their control from their lulucf accounts . however , the manner in which member states apply those provisions should not lead to undue under - accounting . ### natural disturbances , such as wildfires , insect and disease infestations , extreme weather events and geological disturbances that are beyond the control of , and not materially influenced by , a member state , may result in greenhouse gas emissions of a temporary nature in the lulucf sector , or may cause the reversal of previous removals . as reversal can also be the result of management decisions , such as decisions to harvest or plant trees , this regulation should ensure that human - induced reversals of removals are always accurately reflected in lulucf accounts . moreover , this regulation should provide member states with a limited possibility to exclude emissions resulting from disturbances that are beyond their control from their lulucf accounts . however , the manner in which member states apply those provisions should not lead to undue under - accounting . where there is a correlation between management practice and the occurrence of natural disaster it shall be considered as human - induced . it shall be , individually or where possible in general , subject to the formal recognition by the scientific authorities .


### this regulation should be reviewed as of 2024 and every 5 years thereafter in order to assess its overall functioning . this review can also be informed by the results of the global stocktake of the paris agreement . ### in the light of the 2018 facilitative dialogue , the commission shall report to the european parliament and to the council by 28 february 2019 on the adequacy of the level of ambition of this regulation . this regulation should be reviewed as of 2023 and every 3 years thereafter in order to assess its overall functioning . this review can also be informed by the results of the global stocktake of the paris agreement .


### member states shall include in their accounts for each land accounting category any change in the carbon stock of the carbon pools listed in annex i , section b . member states may choose not to include in their accounts changes in carbon stocks for carbon pools where the carbon pool is not a source , except for above - ground biomass and harvested wood products on managed forest land . ### member states shall include in their accounts for each land accounting category any change in the carbon stock of the carbon pools listed in annex i , section b . member states may choose not to include in their accounts changes in carbon stocks for carbon pools where the carbon pool is not a source , except for above - ground biomass , deadwood on managed forest land and harvested wood products on managed forest land .


### member states shall demonstrate consistency between the methods and data used to establish the forest reference level in the national forestry accounting plan and those used in the reporting for managed forest land . at the latest at the end of the period from 2021 to 2025 or from 2026 to 2030 , a member state shall submit to the commission a technical correction of its reference level if necessary to ensure consistency . ### member states shall demonstrate consistency between the methods and data used to establish the forest reference level in the national forestry accounting plan and those used in the reporting for managed forest land . at the latest 24 months after the end of the period from 2021 to 2025 or from 2026 to 2030 , a member state shall submit to the commission a technical correction of its reference level and the national forestry accounting report if necessary to ensure consistency . in particular , where the result of the calculation referred to in paragraph 1 is negative and where the commercial harvest levels recorded over the period are lower than the projected levels set out in the accounting report , the harvest level in the report shall be adjusted and a corresponding adjustment shall be made to the projected reference level . this compulsory adjustment shall consist in bringing the projected harvest levels in the report down to a level where , following final corrections , either the result of the calculation referred to in paragraph 1 or the disparity between the projected harvest levels , as corrected , and the harvest levels recorded is remedied . this compulsory adjustment may also be made on the basis of total harvest levels , where those levels have been established with an equivalent or greater degree of accuracy than that achieved for commercial harvest levels .


### the commission shall report to the european parliament and to the council by 28 february 2024 and every five years thereafter on the operation of this regulation , its contribution to the eu ' s overall 2030 greenhouse gas emission reduction target and its contribution to the goals of the paris agreement , and may make proposals if appropriate . ### in the light of the 2018 facilitative dialogue , the commission shall report to the european parliament and to the council by 28 february 2019 on the adequacy of the level of ambition of this regulation . the commission shall report to the european parliament and to the council by 28 february 2023 and every three years thereafter on the operation of this regulation , its contribution to the eu ' s overall 2030 greenhouse gas emission reduction target and its contribution to the goals of the paris agreement , and shall make proposals .


### reference levels should ensure a robust and credible accounting , to guarantee that emissions and removals resulting from biomass use are properly accounted for ; ### reference levels should ensure a robust and credible accounting , to guarantee that emissions and removals resulting from managed forest land use are properly accounted for and that emissions are balanced towards removals ;


### reference levels should take into account the objective of contributing to the conservation of biodiversity and the sustainable use of natural resources , as set out in the eu forest strategy , member states ' national forest policies , and the eu biodiversity strategy ; ### reference levels should take into account the objective of contributing to the conservation of biodiversity and the sustainable use of natural resources for production of bioenergy and biomaterials in substitution of fossil - based materials , as set out in the eu forest strategy , member states ' national forest programmes and policies and the union’s bioeconomy and biodiversity strategies ;


### member states should regularly transmit to the commission information on the progress made using the common output and result indicators set out in annex i . common output and result indicators could be complemented , where necessary by programme - specific output and result indicators . the information provided by the member states should be the basis on which the commission should report on the progress towards the achievement of specific objectives over the whole programming period using for this purpose a core set of indicators set out in annex ii . ### member states should regularly transmit to the commission information on the progress made using the common output and result indicators set out in annex i . common output and result indicators could be complemented , where necessary by programme - specific output and result indicators . the information provided by the member states should be the basis on which the commission should report on the progress towards the achievement of specific objectives over the whole programming period using for this purpose a core set of quantitative and qualitative indicators set out in annex ii .


### pursuant to paragraph 22 and 23 of the inter - institutional agreement for better law - making of 13 april 2016 , there is a need to evaluate the funds on the basis of information collected through specific monitoring requirements , while avoiding overregulation and administrative burdens , in particular on member states . these requirements , where appropriate , can include measurable indicators , as a basis for evaluating the effects of the funds on the ground . ### pursuant to paragraph 22 and 23 of the inter - institutional agreement for better law - making of 13 april 2016 , there is a need to evaluate the funds on the basis of information collected through specific monitoring requirements , while avoiding overregulation and administrative burdens , in particular on member states . these requirements , where appropriate , can include measurable quantitative and qualitative indicators , as a basis for evaluating the effects of the funds on the ground .


### within the framework of sustainable urban development , it is considered necessary to support integrated territorial development in order to more effectively tackle the economic , environmental , climate , demographic and social challenges affecting urban areas , including functional urban areas , while taking into account the need to promote urban - rural linkages . the principles for selecting the urban areas where integrated actions for sustainable urban development are to be implemented , and the indicative amounts for those actions , should be set out in the programmes under the investment for jobs and growth goal with a minimum target of 6% of the erdf resources allocated at national level for that purpose . it should also be established that this percentage should be respected throughout the programming period in the case of transfer between priorities within a programme or between programmes , including at the mid - term review . ### within the framework of sustainable urban development , it is considered necessary to support integrated territorial development in order to more effectively tackle the economic , environmental , climate , demographic and social challenges affecting urban areas , including functional urban areas , while taking into account the need to promote urban - rural linkages and to reduce the digital divide . the principles for selecting the urban areas where integrated actions for sustainable urban development are to be implemented , and the indicative amounts for those actions , should be set out in the programmes under the investment for jobs and growth goal with a minimum target of 6% of the erdf resources allocated at national level for that purpose . it should also be established that this percentage should be respected throughout the programming period in the case of transfer between priorities within a programme or between programmes , including at the mid - term review .


### since the objective of this regulation , namely to reinforce economic , social and territorial cohesion by redressing the main regional imbalances in the union , cannot be sufficiently achieved by the member states but can rather , by reason of the extent of the disparities between the levels of development of the various regions and the backwardness of the least favoured regions and the limit on the financial resources of the member states and regions , be better achieved at union level , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 of the teu . in accordance with the principle of proportionality , as set out in that article , this regulation does not go beyond what is necessary in order to achieve that objective , ### since the objective of this regulation , namely to reinforce economic , social and territorial cohesion by redressing the main regional imbalances in the union through citizens oriented approach aimed at supporting community led development and fostering active citizenship , cannot be sufficiently achieved by the member states but can rather , by reason of the extent of the disparities between the levels of development of the various regions and the backwardness of the least favoured regions and the limit on the financial resources of the member states and regions , be better achieved at union level , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 of the teu . in accordance with the principle of proportionality , as set out in that article , this regulation does not go beyond what is necessary in order to achieve that objective ,


### reaping the benefits of digitisation for citizens , companies and governments ; ### reaping the benefits of digitisation for citizens , companies , governments and public institutions ;


### developing skills for smart specialisation , industrial transition and entrepreneurship ; ### developing skills and training programmes , including blended learning , for smart specialisation , industrial transition and entrepreneurship ;


### improving access to inclusive and quality services in education , training and life long learning through developing infrastructure ; ### improving access to inclusive and quality services in formal , non - formal and informal education , training and life long learning through developing infrastructure and quality education and training programmes , including moocs and blended learning ;