ANNEX II

Technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental objectives

1. Forestry 151

1.1. Afforestation 151

1.2. Rehabilitation and restoration of forests, including reforestation and natural forest regeneration after an extreme event 156

1.3. Forest management 163

1.4. Conservation forestry 168

2. Environmental protection and restoration activities 173

2.1. Restoration of wetlands 173

3. Manufacturing 176

3.1. Manufacture of renewable energy technologies 176

3.2. Manufacture of equipment for the production and use of hydrogen 178

3.3. Manufacture of low carbon technologies for transport 180

3.4. Manufacture of batteries 183

3.5. Manufacture of energy efficiency equipment for buildings 185

3.6. Manufacture of other low carbon technologies 188

3.7. Manufacture of cement 190

3.8. Manufacture of aluminium 191

3.9. Manufacture of iron and steel 193

3.10. Manufacture of hydrogen 196

3.11. Manufacture of carbon black 198

3.12. Manufacture of soda ash 200

3.13. Manufacture of chlorine 202

3.14. Manufacture of organic basic chemicals 204

3.15. Manufacture of anhydrous ammonia 207

3.16. Manufacture of nitric acid 209

3.17. Manufacture of plastics in primary form 211

4. Energy 213

4.1. Electricity generation using solar photovoltaic technology 213

4.2. Electricity generation using concentrated solar power (CSP) technology 215

4.3. Electricity generation from wind power 216

4.4. Electricity generation from ocean energy technologies 218

4.5. Electricity generation from hydropower 220

4.6. Electricity generation from geothermal energy 223

4.7. Electricity generation from renewable non-fossil gaseous and liquid fuels 225

4.8. Electricity generation from bioenergy 227

4.9. Transmission and distribution of electricity 229

4.10. Storage of electricity 231

4.11. Storage of thermal energy 233

4.12. Storage of hydrogen 235

4.13. Manufacture of biogas and biofuels for use in transport and of bioliquids 236

4.14. Transmission and distribution networks for renewable and low-carbon gases 238

4.15. District heating/cooling distribution 240

4.16. Installation and operation of electric heat pumps 241

4.17. Cogeneration of heat/cool and power from solar energy 243

4.18. Cogeneration of heat/cool and power from geothermal energy 244

4.19. Cogeneration of heat/cool and power from renewable non-fossil gaseous and liquid fuels 246

4.20. Cogeneration of heat/cool and power from bioenergy 248

4.21. Production of heat/cool from solar thermal heating 250

4.22. Production of heat/cool from geothermal energy 251

4.23. Production of heat/cool from renewable non-fossil gaseous and liquid fuels 253

4.24. Production of heat/cool from bioenergy 255

4.25. Production of heat/cool using waste heat 257

5. Water supply, sewerage, waste management and remediation activities 259

5.1. Construction, extension and operation of water collection, treatment and supply systems 259

5.2. Renewal of water collection, treatment and supply systems 260

5.3. Construction, extension and operation of waste water collection and treatment 262

5.4. Renewal of waste water collection and treatment 263

5.5. Collection and transport of non-hazardous waste in source segregated fractions 265

5.6. Anaerobic digestion of sewage sludge 267

5.7. Anaerobic digestion of bio-waste 268

5.8. Composting of bio-waste 270

5.9. Material recovery from non-hazardous waste 272

5.10. Landfill gas capture and utilisation 273

5.11. Transport of CO 2 275

5.12. Underground permanent geological storage of CO 2 277

6. Transport 278

6.1. Passenger interurban rail transport 278

6.2. Freight rail transport 279

6.3. Urban and suburban transport, road passenger transport 281

6.4. Operation of personal mobility devices, cycle logistics 283

6.5. Transport by motorbikes, passenger cars and commercial vehicles 284

6.6. Freight transport services by road 287

6.7. Inland passenger water transport 289

6.8. Inland freight water transport 290

6.9. Retrofitting of inland water passenger and freight transport 292

6.10. Sea and coastal freight water transport, vessels for port operations and auxiliary activities 293

6.11. Sea and coastal passenger water transport 296

6.12. Retrofitting of sea and coastal freight and passenger water transport 298

6.13. Infrastructure for personal mobility, cycle logistics 300

6.14. Infrastructure for rail transport 302

6.15. Infrastructure enabling road transport and public transport 304

6.16. Infrastructure for water transport 306

6.17. Airport infrastructure 309

7. Construction and real estate 311

7.1. Construction of new buildings 311

7.2. Renovation of existing buildings 314

7.3. Installation, maintenance and repair of energy efficiency equipment 316

7.4. Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) 319

7.5. Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings 320

7.6. Installation, maintenance and repair of renewable energy technologies 321

7.7. Acquisition and ownership of buildings 323

8. Information and communication 325

8.1. Data processing, hosting and related activities 325

8.2. Computer programming, consultancy and related activities 327

8.3. Programming and broadcasting activities 328

9. Professional, scientific and technical activities 330

9.1. Engineering activities and related technical consultancy dedicated to adaptation to climate change 330

9.2. Close to market research, development and innovation 331

10. Financial and insurance activities 333

10.1. Non-life insurance: underwriting of climate-related perils 333

10.2. Reinsurance 335

11. Education 337

12. Human health and social work activities 338

12.1. Residential care activities 338

13. Arts, entertainment and recreation 340

13.1. Creative, arts and entertainment activities 340

13.2. Libraries, archives, museums and cultural activities 341

13.3. Motion picture, video and television programme production, sound recording and music publishing activities 343

Appendix A: Classification of climate-related hazards 346

Appendix B: Generic criteria for DNSH to sustainable use and protection of water and marine resources 347

Appendix C: Generic criteria for DNSH to pollution prevention and control regarding use and presence of chemicals 348

Appendix D: Generic criteria for DNSH to protection and restoration of biodiversity and ecosystems 349

1. FORESTRY

1.1. Afforestation

Description of the activity

Establishment of forest through planting, deliberate seeding or natural regeneration on land that, until then, was under a different land use or not used. Afforestation implies a transformation of land use from non-forest to forest, in accordance with the Food and Agriculture Organisation of the United Nations (‘FAO’) definition of afforestation (1), where forest means a land matching the forest definition as set out in national law, or where not available, is in accordance with the FAO definition of forest (2). Afforestation may cover past afforestation as long as it takes place in the period between the planting of the trees and the time when the land use is recognised as a forest.

The economic activities in this category could be associated with NACE code A2 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006. Activities are limited to NACE II 02.10, i.e. silviculture and other forestry activities, 02.20, i.e. logging, 02.30, i.e. gathering of wild growing non-wood products and 02.40, i.e. support services to forestry.

Where an economic activity in this category complies with the substantial contribution criterion specified in point 5, the activity is an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, provided that it meets the technical screening criteria set out in this section.

Technical screening criteria

Substantial contribution to climate change adaptation 1. The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity. 2. The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps: (a) screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime; (b) where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity; (c) an assessment of adaptation solutions that can reduce the identified physical climate risk. The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that: (a) for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale; (b) for all other activities, the assessment is performed using the highest available resolution, state of-the-art climate projections across the existing range of future scenarios (3) consistent with the expected lifetime of the activity, including, at least, 10 to 30 years climate projections scenarios for major investments. 3. The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (4), scientific peer-reviewed publications and open source (5) or paying models. 4. The adaptation solutions implemented: (a) do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; (b) favour nature-based solutions (6) or rely on blue or green infrastructure (7) to the extent possible; (c) are consistent with local, sectoral, regional or national adaptation plans and strategies; (d) are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met; (e) where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity. 5. In order for an activity to be considered as an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, the economic operator demonstrates, through an assessment of current and future climate risks, including uncertainty and based on robust data, that the activity provides a technology, product, service, information, or practice, or promotes their uses with one of the following primary objectives: (a) increasing the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; (b) contributing to adaptation efforts of other people, of nature, of cultural heritage, of assets and of other economic activities. Do no significant harm (‘DNSH’) (1) Climate change mitigation 1. Afforestation plan and subsequent forest management plan or equivalent instrument 1.1. The area on which the activity takes place is covered by an afforestation plan of a duration of at least five years, or the minimum period prescribed in national law, developed prior to the start of the activity, and continuously updated until this area matches the definition of forest as set out in national law or where not available, is in line with the FAO definition of forest. The afforestation plan contains all elements required by the national law relating to environmental impact assessment of afforestation. 1.2. Preferably through the afforestation plan, or if information is missing, through any other document, detailed information is provided on the following points: (a) description of the area according to its gazetting in the land registry; (b) site preparation and its impacts on pre-existing carbon stocks, including soils and above-ground biomass, in order to protect land with high carbon stock (8); (c) management goals, including major constraints; (d) general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle; (e) definition of the forest habitat context, including main existing and intended forest tree species, and their extent and distribution; (f) compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions; (g) measures deployed to establish and maintain the good condition of forest ecosystems; (h) consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law); (i) assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection and adaptation against residual risks; (j) assessment of impact on food security; (k) all DNSH criteria relevant to afforestation. 1.3. When the area becomes a forest, the afforestation plan is followed by a subsequent forest management plan or an equivalent instrument, as set out in national law or, where national law does not define a forest management plan or equivalent instrument, as referred to in the FAO definition of ‘forest area with long-term forest management plan’ (9). The forest management plan or the equivalent instrument covers a period of 10 years or more and is continuously updated. 1.4. Information is provided on the following points that are not already documented in the forest management plan or equivalent system: (a) management goals, including major constraints (10); (b) general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle; (c) definition of the forest habitat context, including main existing and intended forest tree species, and their extent and distribution; (d) definition of the area according to its gazetting in the land registry; (e) compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions; (f) measures deployed to maintain the good condition of forest ecosystems; (g) consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law); (h) assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection and adaptation against residual risks (i) all DNSH criteria relevant to forest management. 1.5. The activity follows the best afforestation practices laid down in national law, or, where no such best afforestation practices have been laid down in national law, the activity complies with one of the following criteria: (a) the activity complies with Delegated Regulation (EU) No 807/2014; (b) the activity follows the ‘Pan-European Guidelines for Afforestation and Reforestation with a special focus on the provisions of the UNFCCC’ (11). 1.6. The activity does not involve the degradation of land with high carbon stock (12). 1.7. The management system associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010. 1.8. The afforestation plan and the subsequent forest management plan or equivalent instrument provides for monitoring that ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area. 2. Audit Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and the DNSH criteria are verified by either of the following: (a) the relevant national competent authorities; (b) an independent third-party certifier, at the request of national authorities or the operator of the activity. In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit. The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity. 3. Group assessment The compliance with the DNSH criteria may be checked: (a) at the level of the forest sourcing area (13) level as defined by Directive (EU) 2018/2001; (b) at the level of a group of forest holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits. (3) Sustainable use and protection of water and marine resources The activity complies with the criteria set out in Appendix B to this Annex. Detailed information referred to in point 1.2. (i) includes provisions to comply with the criteria set out in Appendix B to this Annex. (4) Transition to a circular economy N/A (5) Pollution prevention and control The use of pesticides is reduced and alternative approaches or techniques, which may include non-chemical alternatives to pesticides, are favoured, in accordance with Directive 2009/128/EC, with exception of occasions where the use of pesticides is needed to control outbreaks of pests and of diseases. The activity minimises the use of fertilisers and does not use manure. The activity complies with Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in Annex I, part A, of Regulation (EU) 2019/1021 (14), the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO Recommended Classification of Pesticides by Hazard (15). The activity complies with the relevant national law on active ingredients. Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs. (6) Protection and restoration of biodiversity and ecosystems In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas. There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law. Detailed information referred to in points 1.2(k) (Afforestation plan) and 1.4(i) (Forest management plan or equivalent system) includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following: (a) ensuring the good conservation status of habitat and species, maintenance of typical habitat species; (b) excluding the use or release of invasive species; (c) excluding the use of non-native species unless it can be demonstrated that: (i) the use of the forest reproductive material leads to favourable and appropriate ecosystem conditions (such as climate, soil criteria, and vegetation zone, forest fire resilience); (ii) the native species currently present on the site are not anymore adapted to projected climatic and pedo-hydrological conditions; (d) ensuring the maintenance and improvement of physical, chemical and biological quality of the soil; (e) promoting biodiversity-friendly practices that enhance forests’ natural processes; (f) excluding the conversion of high-biodiverse ecosystems into less biodiverse ones; (g) ensuring the diversity of associated habitats and species linked to the forest; (h) ensuring the diversity of stand structures and maintenance or enhancing of mature stage stands and dead wood.

1.2. Rehabilitation and restoration of forests, including reforestation and natural forest regeneration after an extreme event

Description of the activity

Rehabilitation and restoration of forests as defined by national law. Where national law does not contain such a definition, rehabilitation and restoration refers to a definition with broad agreement in the peer-reviewed scientific literature for specific countries or a definition in line with the FAO concept of forest restoration (16) or a definition in line with one of the definitions of ecological restoration (17) applied to forest, or forest rehabilitation (18) under the Convention on Biological Diversity. The economic activities also include forest activities in line with the FAO definition of ‘reforestation’ (19) and ‘naturally regenerating forest’ (20) after an extreme event, where extreme event is defined by national law, and where national law does not contain such a definition, is in line with the IPCC definition of extreme weather event (21); or after a wildfire, where wildfire is defined by national law, and where national law does not contain such a definition, as defined in the European Glossary for wildfires and forest fires (22).

The economic activities in this category imply no change of land use and occurs on degraded land matching the forest definition as set out in national law, or where not available, is in accordance with the FAO definition of forest (23).

The economic activities in this category could be associated with NACE code A2 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006. The economic activities in this category are limited to NACE II 02.10, i.e. silviculture and other forestry activities, 02.20, i.e. logging 02.30, i.e. gathering of wild growing non-wood products and 02.40, i.e. support services to forestry.

Where an economic activity in this category complies with the substantial contribution criterion specified in point 5, the activity is an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, provided that it meets the technical screening criteria set out in this Section.

Technical screening criteria

Substantial contribution to climate change adaptation 1. The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity. 2. The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps: (a) screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime; (b) where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity; (c) an assessment of adaptation solutions that can reduce the identified physical climate risk. The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that: (a) for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale; (b) for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (24) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments. 3. The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (25), scientific peer-reviewed publications and open source (26) or paying models. 4. The adaptation solutions implemented: (a) do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; (b) favour nature-based solutions (27) or rely on blue or green infrastructure (28) to the extent possible; (c) are consistent with local, sectoral, regional or national adaptation plans and strategies; (d) are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met; (e) where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity. 5. In order for an activity to be considered as an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, the economic operator demonstrates, through an assessment of current and future climate risks, including uncertainty and based on robust data, that the activity provides a technology, product, service, information, or practice, or promotes their uses with one of the following primary objectives: (a) increasing the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; (b) contributing to adaptation efforts of other people, of nature, of cultural heritage, of assets and of other economic activities. Do no significant harm (‘DNSH’) (1) Climate change mitigation 1. Forest management plan or equivalent instrument 1.1. The activity takes place on area that is subject to a forest management plan or an equivalent instrument, as set out in national law or, where national law does not define a forest management plan or equivalent instrument, as referred to in the FAO definition of ‘forest area with long-term forest management plan’ (29). The forest management plan or the equivalent instrument covers a period of 10 years or more, and is continuously updated. 1.2. Information is provided on the following points that are not already documented in the forest management plan or equivalent system: (a) management goals, including major constraints (30); (b) general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle; (c) definition of the forest habitat context, including main existing and intended forest tree species, and their extent and distribution; (d) definition of the area according to its gazetting in the land registry; (e) compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions; (f) measures deployed to maintain the good condition of forest ecosystems; (g) consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law); (h) assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection and adaptation against residual risks; (i) all DNSH criteria relevant to forest management. 1.3. The sustainability of the forest management systems, as documented in the plan referred to in point 1.1, is ensured by choosing the most ambitious of the following approaches: (a) the forest management matches the applicable national definition of sustainable forest management; (b) the forest management matches the Forest Europe definition (31) of sustainable forest management and complies with the Pan-European Operational Level Guidelines for Sustainable Forest Management (32); (c) the management system in place complies with the forest sustainability criteria laid down in Article 29(6) of Directive (EU) 2018/2001, and as of the date of its application with the implementing act on operational guidance for energy from forest biomass adopted under Article 29(8) of that Directive. 1.4. The activity does not involve the degradation of land with high carbon stock (33). 1.5. The management system associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010. 1.6. The forest management plan or equivalent instrument provides for monitoring which ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area. 2. Audit Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and the DNSH criteria are verified by either of the following: (a) the relevant national competent authorities; (b) an independent third-party certifier, at the request of national authorities or the operator of the activity. In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit. The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity. 3. Group assessment The compliance with the DNSH criteria may be checked: (a) at the level of the forest sourcing area (34) as defined by Directive (EU) 2018/2001; (b) at the level of a group of holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits. (3) Sustainable use and protection of water and marine resources The activity complies with the criteria set out in Appendix B to this Annex. Detailed information referred to in point 1.2. (i) includes provisions to comply with the criteria set out in Appendix B to this Annex. (4) Transition to a circular economy The silvicultural change induced by the activity on the area covered by the activity is not likely to result in a significant reduction of sustainable supply of primary forest biomass suitable for the manufacturing of wood products with long-term circularity potential. This criterion may be demonstrated through the climate benefits analysis referred to in point (2). (5) Pollution prevention and control The use of pesticides is reduced and alternative approaches or techniques, which may include non-chemical alternatives to pesticides, are favoured, in accordance with Directive 2009/128/EC, with exception of occasions where the use of pesticides is needed to control outbreaks of pests and of diseases. The activity minimises the use of fertilisers and does not use manure. The activity complies with Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use. Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in Annex I, part A, of Regulation (EU) 2019/1021 (35), the Rotterdam Convention on the Prior prior informed consent procedure for certain hazardous chemicals and pesticides in international trade, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO Recommended Classification of Pesticides by Hazard. The activity complies with the relevant national law on active ingredients. Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs. (6) Protection and restoration of biodiversity and ecosystems In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas. There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law. Detailed information referred to in point 1.2.(i) includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following: (a) ensuring the good conservation status of habitat and species, maintenance of typical habitat species; (b) excluding the use or release of invasive alien species; (c) excluding the use of non-native species unless it can be demonstrated that: (i) the use of the forest reproductive material leads to favourable and appropriate ecosystem conditions (such as climate, soil criteria, and vegetation zone, forest fire resilience); (ii) the native species currently present on the site are not anymore adapted to projected climatic and pedo-hydrological conditions; (d) ensuring the maintenance and improvement of physical, chemical and biological quality of the soil; (e) promoting biodiversity-friendly practices that enhance forests’ natural processes; (f) excluding the conversion of high-biodiverse ecosystems into less biodiverse ones; (g) ensuring the diversity of associated habitats and species linked to the forest; (h) ensuring the diversity of stand structures and maintenance or enhancing of mature stage stands and dead wood.

1.3. Forest management

Description of the activity

Forest management as defined by national law. Where national law does not contain such a definition, forest management refers to any economic activity resulting from a system applicable to a forest that influences the ecological, economic or social functions of the forest. Forest management assumes no change in land use and occurs on land matching the definition of forest as set out in national law, or where not available, in accordance with the FAO definition of forest (36).

The economic activities in this category could be associated with NACE code A2 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006. The economic activities in this category are limited to NACE II 02.10, i.e. silviculture and other forestry activities, 02.20, i.e. logging, 02.30, i.e. gathering of wild growing non-wood products and 02.40, i.e. support services to forestry.

Where an economic activity in this category complies with the substantial contribution criterion specified in point 5, the activity is an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, provided that it meets the technical screening criteria set out in this Section.

Technical screening criteria

Substantial contribution to climate change adaptation 1. The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity. 2. The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps: (a) screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime; (b) where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity; (c) an assessment of adaptation solutions that can reduce the identified physical climate risk. The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that: (a) for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale; (b) for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (37) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments. 3. The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (38), scientific peer-reviewed publications and open source (39) or paying models. 4. The adaptation solutions implemented: (a) do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; (b) favour nature-based solutions (40) or rely on blue or green infrastructure (41) to the extent possible; (c) are consistent with local, sectoral, regional or national adaptation plans and strategies; (d) are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met; (e) where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity. 5. In order for an activity to be considered as an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, the economic operator demonstrates, through an assessment of current and future climate risks, including uncertainty and based on robust data, that the activity provides a technology, product, service, information, or practice, or promotes their uses with one of the following primary objectives: (a) increasing the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; (b) contributing to adaptation efforts of other people, of nature, of cultural heritage, of assets and of other economic activities. Do no significant harm (‘DNSH’) (1) Climate change mitigation 1. Forest management plan or equivalent instrument 1.1. The activity takes place on area that is subject to a forest management plan or an equivalent instrument, as set out in national law or, where national law does not define a forest management plan, as referred to in the FAO definition of ‘forest area with long-term forest management plan’ (42). The forest management plan or equivalent instrument covers a period of 10 years or more and is continuously updated. 1.2. Information is provided on the following points that are not already documented in the forest management plan or equivalent system: (a) management goals, including major constraints (43); (b) general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle; (c) definition of the forest habitat context, including main existing and intended forest tree species, and their extent and distribution; (d) definition of the area according to its gazetting in the land registry; (e) compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions; (f) measures deployed to establish and maintain the good condition of forest ecosystems; (g) consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law); (h) assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection and adaptation against residual risks; (i) all DNSH criteria relevant for forest management. 1.3. The sustainability of the forest management system, as documented in the plan referred to in point 1.1, is ensured by choosing the most ambitious of the following approaches: (a) the forest management matches the applicable national definition of sustainable forest management; (b) the forest management matches the Forest Europe definition (44) of sustainable forest management and complies with the Pan-European Operational Level Guidelines for Sustainable Forest Management (45); (c) the management system in place show compliance with the forest sustainability criteria set out in Article 29(6) of Directive (EU) 2018/2001, and as of the date of its application with the implementing act on operational guidance for energy from forest biomass adopted under Article 29(8) of that Directive. 1.4. The activity does not involve the degradation of land with high carbon stock (46). 1.5. The management system associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010. 1.6. The forest management plan or equivalent document provides for monitoring which ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area. 2. Audit Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and the DNSH criteria are verified by either of the following: (a) the relevant national competent authorities; (b) an independent third-party certifier, at the request of national authorities or the operator of the activity. In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit. The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity. 3. Group assessment The compliance with the DNSH criteria may be checked: (a) at the level of the forest sourcing area (47) as defined by Directive (EU) 2018/2001; (b) at the level of a group of holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits. (3) Sustainable use and protection of water and marine resources The activity complies with the criteria set out in Appendix B to this Annex. Detailed information referred to in point 1.2. (i) includes provisions to comply with the criteria set out in Appendix B to this Annex. (4) Transition to a circular economy The silvicultural change induced by the activity on the area covered by the activity is not likely to result in a significant reduction of sustainable supply of primary forest biomass suitable for the manufacturing of wood products with long-term circularity potential. This criterion may be demonstrated through the climate benefits analysis referred to in point (2). (5) Pollution prevention and control The use of pesticides is reduced and alternative approaches or techniques, which may include non-chemical alternatives to pesticides, are favoured, in accordance with Directive 2009/128/EC, with exception of occasions where the use of pesticides is needed to control outbreaks of pests and of diseases. The activity minimised the use of fertilisers and does not use manure. The activity complies with Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use. Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in Annex I, part A, of Regulation (EU) 2019/1021 (48), the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO Recommended Classification of Pesticides by Hazard (49). The activity complies with the relevant national law on active ingredients. Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs. (6) Protection and restoration of biodiversity and ecosystems In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas. There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law. Detailed information referred to in in points 1.2.(i) includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following: (a) ensuring the good conservation status of habitat and species, maintenance of typical habitat species; (b) excluding the use or release of invasive alien species; (c) excluding the use of non-native species unless it can be demonstrated that: (i) the use of the forest reproductive material leads to favourable and appropriate ecosystem condition (such as climate, soil criteria, and vegetation zone, forest fire resilience); (ii) the native species currently present on the site are not anymore adapted to projected climatic and pedo-hydrological conditions; (d) ensuring the maintenance and improvement of physical, chemical and biological quality of the soil; (e) promoting biodiversity-friendly practices that enhance forests’ natural processes; (f) excluding the conversion of high-biodiverse ecosystems into less biodiverse ones; (g) ensuring the diversity of associated habitats and species linked to the forest; (h) ensuring the diversity of stand structures and maintenance or enhancing of mature stage stands and dead wood.

1.4. Conservation forestry

Description of the activity

Forest management activities with the objective of preserving one or more habitats or species. Conservation forestry assumes no change in land category and occurs on land matching the forest definition as set out in national law, or where not available, in accordance with the FAO definition of forest (50).

The economic activities in this category could be associated with NACE code A2 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006. The economic activities in this category are limited to NACE II 02.10, i.e. silviculture and other forestry activities, 02.20, i.e. logging, 02.30, i.e. gathering of wild growing non-wood products and 02.40, i.e. support services to forestry.

Where an economic activity in this category complies with the substantial contribution criterion specified in point 5, the activity is an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, provided that it meets the technical screening criteria set out in this Section.

Technical screening criteria

Substantial contribution to climate change adaptation 1. The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity. 2. The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps: (a) screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime; (b) where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity; (c) an assessment of adaptation solutions that can reduce the identified physical climate risk. The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that: (a) for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale; (b) for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (51) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments. 3. The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (52), scientific peer-reviewed publications and open source (53) or paying models. 4. The adaptation solutions implemented: (a) do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; (b) favour nature-based solutions (54) or rely on blue or green infrastructure (55) to the extent possible; (c) are consistent with local, sectoral, regional or national adaptation plans and strategies; (d) are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met; (e) where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity. 5. In order for an activity to be considered as an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, the economic operator demonstrates, through an assessment of current and future climate risks, including uncertainty and based on robust data, that the activity provides a technology, product, service, information, or practice, or promotes their uses with one of the following primary objectives: (a) increasing the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; or (b) contributing to adaptation efforts of other people, of nature, of cultural heritage, of assets and of other economic activities. Do no significant harm (‘DNSH’) (1) Climate change mitigation 1. Forest management plan or equivalent instrument 1.1. The activity takes place on area that is subject to a forest management plan or an equivalent instrument, as set out in national law or, where national regulation dos not define a forest management plan, as referred to in the FAO definition of ‘forest area with long-term forest management plan’ (56). The forest management plan or the equivalent instrument covers a period of 10 years or more and is continuously updated. 1.2. Information is provided on the following points that are not already documented in the forest management plan or equivalent system: (a) management goals, including major constraints; (b) general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle; (c) definition of the forest habitat context, main forest tree species and those intended and their extent and distribution, in accordance to the local forest ecosystem context; (d) definition of the area according to its gazetting in the land registry; (e) compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions; (f) measures deployed to maintain the good condition of forest ecosystems; (g) consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law); (h) assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection and adaptation against residual risks; (i) all DNSH relevant to forest management. 1.3. The forest management plan or the equivalent instrument: (a) shows a primary designated management objective (57) that consists in protection of soil and water (58), conservation of biodiversity (59) or social services (60) based on the FAO definitions; (b) promotes biodiversity-friendly practices that enhance forests’ natural processes; (c) includes an analysis of: (i) impacts and pressures on habitat conservation and diversity of associated habitats; (ii) condition of harvesting minimizing soil impacts; (iii) other activities that have an impact on conservation objectives, such as hunting and fishing, agricultural, pastoral and forestry activities, industrial, mining, and commercial activities. 1.4. The sustainability of the forest management system as documented in the plan referred to in point 1.1 is ensured by choosing the most ambitious of the following approaches: (a) the forest management matches the national definition of sustainable forest management, if any; (b) the forest management matches the Forest Europe definition (61) of sustainable forest management and complies with the Pan-European Operational Level Guidelines for Sustainable Forest Management (62) (c) the management system in place shows compliance with the forest sustainability criteria as defined in Article 29(6) of Directive (EU) 2018/2001, and as of the date of its application with the implementing act on operational guidance for energy from forest biomass adopted under Article 29(8) of that Directive. 1.5. The activity does not involve the degradation of land with high carbon stock (63). 1.6. The management system associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010. 1.7. The forest management plan or equivalent instrument provides for monitoring which ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area. 2. Audit Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and the DNSH criteria are verified by either of the following: (a) the relevant national competent authorities; (b) an independent third-party certifier, at the request of national authorities or the operator of the activity. In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit. The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity. 3. Group assessment The compliance with the DNSH criteria may be checked: (a) at the level of the forest sourcing area (64) as defined by Directive (EU) 2018/2001; (b) at the level of a group of holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits. (3) Sustainable use and protection of water and marine resources The activity complies with the criteria set out in Appendix B to this Annex. Detailed information referred to in point 1.2. (i) includes provisions to comply with the criteria set out in Appendix B to this Annex. (4) Transition to a circular economy The silvicultural change induced by the activity on the area covered by the activity is not likely to result in a significant reduction of sustainable supply of primary forest biomass suitable for the manufacturing of wood products with long-term circularity potential. This criterion may be demonstrated through the climate benefits analysis referred to in point (2). (5) Pollution prevention and control The activity does not use pesticides or fertilisers. Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in Annex I, part A, of Regulation (EU) 2019/1021 (65), the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO Recommended Classification of Pesticides by Hazard (66). The activity complies with the relevant national law on active ingredients. Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs. (6) Protection and restoration of biodiversity and ecosystems In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas. There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law. Detailed information referred to in in point 1.2.(i) includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following: (a) ensuring the good conservation status of habitat and species, maintenance of typical habitat species; (b) excluding the use or release of invasive alien species; (c) excluding the use of non-native species unless it can be demonstrated that: (i) the use of the forest reproductive material leads to favourable and appropriate ecosystem conditions (such as climate, soil criteria, and vegetation zone, forest fire resilience); (ii) the native species currently present on the site are not anymore adapted to projected climatic and pedo-hydrological conditions; (d) ensuring the maintenance and improvement of physical, chemical and biological quality of the soil; (e) promoting biodiversity-friendly practices that enhance forests’ natural processes; (f) excluding the conversion of high-biodiverse ecosystems into less biodiverse ones; (g) ensuring the diversity of associated habitats and species linked to the forest; (h) ensuring the diversity of stand structures and maintenance or enhancing of mature stage stands and dead wood.

2. ENVIRONMENTAL PROTECTION AND RESTORATION ACTIVITIES

2.1. Restoration of wetlands

Description of the activity

Restoration of wetlands refers to economic activities that promote a return to original conditions of wetlands and economic activities that improve wetland functions without necessarily promoting a return to pre-disturbance conditions, with wetlands meaning land matching international definition of wetland (67) or of peatland (68) as set out in the Ramsar Convention on Wetlands of International Importance especially as Waterfowl Habitat (Ramsar Convention) (69). The concerned area matches the Union definition of wetlands, as provided in the Commission Communication on the wise use and conservation of wetlands (70).

The economic activities in this category have no dedicated NACE code as referred to in the statistical classification of economic activities established by Regulation (EC) No 1893/2006, but relate to class 6 of the statistical classification of environmental protection activities (CEPA) established by Regulation (EU) No 691/2011.

Where an economic activity in this category complies with the substantial contribution criterion specified in point 5, the activity is an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, provided that it meets the technical screening criteria set out in this Section.

Technical screening criteria

Substantial contribution to climate change adaptation 1. The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity. 2. The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps: (a) screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime; (b) where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity; (c) an assessment of adaptation solutions that can reduce the identified physical climate risk. The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that: (a) for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale; (b) for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (71) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments. 3. The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (72), scientific peer-reviewed publications and open source (73) or paying models. 4. The adaptation solutions implemented: (a) do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; (b) favour nature-based solutions (74) or rely on blue or green infrastructure (75) to the extent possible; (c) are consistent with local, sectoral, regional or national adaptation plans and strategies; (d) are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met; (e) where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity. 5. In order for an activity to be considered as an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, the economic operator demonstrates, through an assessment of current and future climate risks, including uncertainty and based on robust data, that the activity provides a technology, product, service, information, or practice, or promotes their uses with one of the following primary objectives: (a) increasing the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; (b) contributing to adaptation efforts of other people, of nature, of cultural heritage, of assets and of other economic activities. Do no significant harm (‘DNSH’) (1) Climate change mitigation 1. Restoration plan 1.1. The area is covered by a restoration plan, which is consistent with the Ramsar Convention’s principles and guidelines on wetland restoration, until the area is classified as a wetland and is covered by a wetland management plan, consistent with the Ramsar Convention’s guidelines for management planning for Ramsar sites and other wetlands. For peatlands, the restoration plan follows the recommendations contained in relevant resolutions of the Ramsar Convention, including the resolution XIII/13. 1.2. The restoration plan contains careful consideration of local hydrological and pedological conditions, including the dynamics of soil saturation and the change of aerobic and anaerobic conditions. 1.3. All wetland management relevant DNSH criteria are addressed in the restoration plan. 1.4. The restoration plan provides for monitoring which ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area. 2. Audit Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and with the DNSH criteria are verified by either of the following: (a) the relevant national competent authorities; (b) an independent third-party certifier, at the request of national authorities or the operator of the activity. In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit. The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity. Group assessment The compliance with the DNSH criteria may be checked at the level of a group of holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits. (3) Sustainable use and protection of water and marine resources The activity complies with the criteria set out in Appendix B to this Annex. (4) Transition to a circular economy Peat extraction is minimised. (5) Pollution prevention and control The use of pesticides is minimised and alternative approaches or techniques, which may include non-chemical alternatives to pesticides are favoured, in accordance with Directive 2009/128/EC, with exception of occasions where the use of pesticides is needed to control outbreaks of pest and diseases. The activity minimises the use of fertilisers and does not use manure. The activity complies with Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use. Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in Annex I, part A, of Regulation (EU) 2019/1021 (76), the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO recommended Classification of Pesticides by Hazard (77). The activity complies with the relevant national law on active ingredients. Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs. (6) Protection and restoration of biodiversity and ecosystems In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas. There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law. The plan referred to in point 1 (Restoration Plan) of this Section includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following: (a) ensuring the good conservation status of habitat and species, maintenance of typical habitat species; (b) excluding the use or release of invasive species.

3. MANUFACTURING

3.1. Manufacture of renewable energy technologies

Description of the activity

Manufacture of renewable energy technologies where renewable energy is as defined in Article 2(1) of Directive (EU) 2018/2001.

The economic activities in this category could be associated with several NACE codes, in particular C25, C27, C28 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to climate change adaptation 1. The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity. 2. The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps: (a) screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime; (b) where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity; (c) an assessment of adaptation solutions that can reduce the identified physical climate risk. The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that: (a) for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale; (b) for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (78) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments. 3. The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (79), scientific peer-reviewed publications and open source (80) or paying models. 4. The adaptation solutions implemented: (a) do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; (b) favour nature-based solutions (81) or rely on blue or green infrastructure (82) to the extent possible; (c) are consistent with local, sectoral, regional or national adaptation plans and strategies; (d) are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met; (e) where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity. Do no significant harm (‘DNSH’) (1) Climate change mitigation N/A (3) Sustainable use and protection of water and marine resources The activity complies with the criteria set out in Appendix B to this Annex. (4) Transition to a circular economy The activity assesses the availability of and, where feasible, adopts techniques that support: (a) reuse and use of secondary raw materials and reused components in products manufactured; (b) design for high durability, recyclability, easy disassembly and adaptability of products manufactured; (c) waste management that prioritises recycling over disposal, in the manufacturing process; (d) information on and traceability of substances of concern throughout the life cycle of the manufactured products (5) Pollution prevention and control The activity complies with the criteria set out in Appendix C to this Annex. (6) Protection and restoration of biodiversity and ecosystems The activity complies with the criteria set out in Appendix D to this Annex.

3.2. Manufacture of equipment for the production and use of hydrogen

Description of the activity

Manufacture of equipment for the production and use of hydrogen, where the hydrogen for the production of which equipment is manufactured complies with the life cycle GHG emissions savings requirement of 73,4 % [resulting in life-cycle GHG emissions lower than 3 tCO2e/tH2] and of 70 % for hydrogen-based synthetic fuels relative to a fossil fuel comparator of 94 g CO2e/MJ in analogy to the approach set out in Article 25(2) of and Annex V to Directive (EU) 2018/2001 of the European Parliament and of the Council.

The economic activities in this category could be associated with several NACE codes, in particular C25, C27, C28, in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to climate change adaptation 1. The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity. 2. The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps: (a) screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime; (b) where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity; (c) an assessment of adaptation solutions that can reduce the identified physical climate risk. The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that: (a) for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale; (b) for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (83) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments. 3. The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (84), scientific peer-reviewed publications and open source (85) or paying models. 4. The adaptation solutions implemented: (a) do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; (b) favour nature-based solutions (86) or rely on blue or green infrastructure (87) to the extent possible; (c) are consistent with local, sectoral, regional or national adaptation plans and strategies; (d) are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met; (e) where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity. Do no significant harm (‘DNSH’) (1) Climate change mitigation N/A (3) Sustainable use and protection of water and marine resources The activity complies with the criteria set out in Appendix B to this Annex. (4) Transition to a circular economy The activity assesses the availability of and, where feasible, adopts techniques that support: (a) reuse and use of secondary raw materials and reused components in products manufactured; (b) design for high durability, recyclability, easy disassembly and adaptability of products manufactured; (c) waste management that prioritises recycling over disposal, in the manufacturing process; (d) information on and traceability of substances of concern throughout the life cycle of the manufactured products. (5) Pollution prevention and control The activity complies with the criteria set out in Appendix C to this Annex. (6) Protection and restoration of biodiversity and ecosystems The activity complies with the criteria set out in Appendix D to this Annex.

3.3. Manufacture of low carbon technologies for transport

Description of the activity

Manufacture, repair, maintenance, retrofitting (88), repurposing and upgrade of low carbon transport vehicles, rolling stock and vessels, where the technology is one of the following:

(a) trains, passenger coaches and wagons that have zero direct (tailpipe) CO2 emissions;

(b) trains, passenger coaches and wagons that have zero direct tailpipe CO2 emission when operated on a track with necessary infrastructure, and use a conventional engine where such infrastructure is not available (bimode);

(c) urban, suburban and road passenger transport devices, where the direct (tailpipe) CO2 emissions of the vehicles are zero;

(d) until 31 December 2025, vehicles designated as categories M2 and M3 (89) that have a type of bodywork classified as ‘CA’ (single-deck vehicle), ‘CB’ (double-deck vehicle), ‘CC’ (single-deck articulated vehicle) or ‘CD’ (double-deck articulated vehicle) (90), and comply with the latest EURO VI standard, i.e. both with the requirements of Regulation (EC) No 595/2009 and, from the time of the entry into force of amendments to that Regulation, in those amending acts, even before they become applicable, and with the latest step of the Euro VI standard set out in Table 1 of Appendix 9 to Annex I to Regulation (EU) No 582/2011 where the provisions governing that step have entered into force but have not yet become applicable for this type of vehicle (91). Where such standard is not available, the direct CO2 emissions of the vehicles are zero;

(e) personal mobility devices with a propulsion that comes from the physical activity of the user, from a zero-emissions motor, or a mix of zero-emissions motor and physical activity;

(f) vehicles of category M1 and N1 classified as light-duty vehicles (92) with: (i) until 31 December 2025: specific emissions of CO2, as defined in Article 3(1), point (h), of Regulation (EU) 2019/631, lower than 50 g CO2/km (low- and zero-emission light-duty vehicles); (ii) from 1 January 2026: specific emissions of CO2, as defined in Article 3(1), point (h), of Regulation (EU) 2019/631, are zero;

(g) vehicles of category L (93) with tailpipe CO2 emissions equal to 0g CO2e/km calculated in accordance with the emission test laid down in Regulation (EU) 168/2013;

(h) vehicles of category N2 and N3, and N1classified as heavy-duty vehicles, not dedicated to transporting fossil fuels with a technically permissible maximum laden mass not exceeding 7,5 tonnes that are ‘zero-emission heavy-duty vehicles’ as defined in Regulation (EU) 2019/1242;

(i) vehicles of category N2 and N3 not dedicated to transporting fossil fuels with a technically permissible maximum laden mass exceeding 7,5 tonnes that are zero-emission heavy-duty vehicles’, as defined in Article 3, point (11), of Regulation (EU) 2019/1242 or ‘low-emission heavy-duty vehicles’ as defined in Article 3, point (12) of that Regulation;

(j) inland passenger water transport vessels that: (i) have zero direct (tailpipe) CO2 emissions; (ii) until 31 December 2025, are hybrid or dual fuel vessels using at least 50 % of their energy from zero direct (tailpipe) CO2 emission fuels or plug-in power for their normal operation;

(k) inland freight water transport vessels, not dedicated to transporting fossil fuels, that: (i) have zero direct (tailpipe) CO2 emission; (ii) until 31 December 2025, have direct (tailpipe) emissions of CO2 per tonne kilometre (g CO2/tkm), calculated (or estimated in case of new vessels) using the Energy Efficiency Operational Indicator (94), 50 % lower than the average reference value for emissions of CO2 defined for heavy duty vehicles (vehicle subgroup 5- LH) in accordance with Article 11 of Regulation (EU) 2019/1242;

(l) sea and coastal freight water transport vessels, vessels for port operations and auxiliary activities, that are not dedicated to transporting fossil fuels, that: (i) have zero direct (tailpipe) CO2 emissions; (ii) until 31 December 2025, are hybrid and dual fuel vessels that derive at least 25 % of their energy from zero direct (tailpipe) CO2 emission fuels or plug-in power for their normal operation at sea and in ports; (iii) until 31 December 2025, and only where it can be proven that the vessels are used exclusively for operating coastal and short sea services designed to enable modal shift of freight currently transported by land to sea, the vessels that have direct (tailpipe) CO2 emissions, calculated using the International Maritime Organization (IMO) Energy Efficiency Design Index (EEDI) (95), 50 % lower than the average reference CO2 emissions value defined for heavy duty vehicles (vehicle subgroup 5-LH) in accordance with Article 11 of Regulation (EU) 2019/1242; (iv) until 31 December 2025, the vessels have an attained Energy Efficiency Design Index (EEDI) value 10 % below the EEDI requirements applicable on 1 April 2022 (96) if the vessels are able to run on zero direct (tailpipe) CO2 emission fuels or on fuels from renewable sources (97);

(m) sea and coastal passenger water transport vessels, not dedicated to transporting fossil fuels, that: (i) have zero direct (tailpipe) CO2 emissions; (ii) until 31 December 2025, hybrid and dual fuel vessels derive at least 25 % of their energy from zero direct (tailpipe) CO2 emission fuels or plug-in power for their normal operation at sea and in ports; (iii) until 31 December 2025, the vessels have an attained Energy Efficiency Design Index (EEDI) value 10 % below the EEDI requirements applicable on 1 April 2022 if the vessels are able to run on zero direct (tailpipe) CO2 emission fuels or on fuels from renewable sources (98).

The economic activities in this category could be associated with several NACE codes, in particular C29.1, C30.1, C30.2, C30.9, C33.15, C33.17 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to climate change adaptation 1. The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity. 2. The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps: (a) screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime; (b) where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity; (c) an assessment of adaptation solutions that can reduce the identified physical climate risk. The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that: (a) for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale; (b) for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (99) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments. 3. The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (100), scientific peer-reviewed publications and open source (101) or paying models. 4. The adaptation solutions implemented: (a) do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; (b) favour nature-based solutions (102) or rely on blue or green infrastructure (103) to the extent possible; (c) are consistent with local, sectoral, regional or national adaptation plans and strategies; (d) are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met; (e) where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity. Do no significant harm (‘DNSH’) (1) Climate change mitigation N/A (3) Sustainable use and protection of water and marine resources The activity complies with the criteria set out in Appendix B to this Annex. (4) Transition to a circular economy The activity assesses the availability of and, where feasible, adopts techniques that support: (a) reuse and use of secondary raw materials and reused components in products manufactured; (b) design for high durability, recyclability, easy disassembly and adaptability of products manufactured; (c) waste management that prioritises recycling over disposal, in the manufacturing process; (d) information on and traceability of substances of concern throughout the life cycle of the manufactured products. (5) Pollution prevention and control The activity complies with the criteria set out in Appendix C to this Annex. Where applicable, vehicles do not contain lead, mercury, hexavalent chromium and cadmium, in accordance with Directive 2000/53/EC. (6) Protection and restoration of biodiversity and ecosystems The activity complies with the criteria set out in Appendix D to this Annex.

3.4. Manufacture of batteries

Description of the activity

Manufacture of rechargeable batteries, battery packs and accumulators for transport, stationary and off-grid energy storage and other industrial applications and manufacture of respective components (battery active materials, battery cells, casings and electronic components) that result in substantial GHG emission reductions in transport, stationary and off-grid energy storage and other industrial applications.

Recycling of end-of-life batteries.

The economic activities in this category could be associated with NACE C27.2 and E38.3.2 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to climate change adaptation 1. The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity. 2. The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps: (a) screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime; (b) where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity; (c) an assessment of adaptation solutions that can reduce the identified physical climate risk. The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that: (a) for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale; (b) for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (104) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments. 3. The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (105), scientific peer-reviewed publications and open source (106) or paying models. 4. The adaptation solutions implemented: (a) do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; (b) favour nature-based solutions (107) or rely on blue or green infrastructure (108) to the extent possible; (c) are consistent with local, sectoral, regional or national adaptation plans and strategies; (d) are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met; (e) where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity. Do no significant harm (‘DNSH’) (1) Climate change mitigation N/A (3) Sustainable use and protection of water and marine resources The activity complies with the criteria set out in Appendix B to this Annex. (4) Transition to a circular economy For manufacturing of new batteries, components and materials, the activity assesses the availability of and, where feasible, adopts techniques that support: (a) reuse and use of secondary raw materials and reused components in products manufactured; (b) design for high durability, recyclability, easy disassembly and adaptability of products manufactured; (c) information on and traceability of substances of concern throughout the life cycle of the manufactured products. Recycling processes meet the conditions set out in Article 12 and in Annex III, Part B, of Directive 2006/66/EC, including the use of the latest relevant Best Available Techniques, the achievement of the efficiencies specified for lead-acid batteries, nickel-cadmium batteries and for other chemistries. These processes ensure the recycling of the metal content to the highest degree that is technically feasible while avoiding excessive costs. Where applicable, facilities carrying out recycling processes meet the requirements laid down in Directive 2010/75/EU. (5) Pollution prevention and control The activity complies with the criteria set out in Appendix C to this Annex. Batteries comply with the applicable sustainability rules on the placing on the market of batteries in the Union, including restrictions on the use of hazardous substances in batteries, including Regulation (EC) No 1907/2006 and Directive 2006/66/EC. (6) Protection and restoration of biodiversity and ecosystems The activity complies with the criteria set out in Appendix D to this Annex.

3.5. Manufacture of energy efficiency equipment for buildings

Description of the activity

Manufacture of one or more of the following energy efficiency equipment products and their key components (109) for buildings:

(a) windows with U-value lower or equal to 1,0 W/m2K;

(b) doors with U-value lower or equal to 1,2 W/m2K;

(c) external wall systems with U-value lower or equal to 0,5 W/m2K;

(d) roofing systems with U-value lower or equal to 0,3 W/m2K;

(e) insulating products with a lambda value lower or equal to 0,06 W/mK;

(f) household appliances falling into the highest two populated classes of energy efficiency classes in accordance with Regulation (EU) 2017/1369 and the delegated acts adopted under that Regulation;

(g) light sources rated in the highest two populated classes of energy efficiency in accordance with Regulation (EU) 2017/1369 and delegated acts adopted under that Regulation;

(h) space heating and domestic hot water systems rated in the highest two populated classes of energy efficiency in accordance with Regulation (EU) 2017/1369 and delegated acts adopted under that Regulation;

(i) cooling and ventilation systems rated in the highest two populated classes of energy efficiency in accordance with Regulation (EU) 2017/1369 and delegated acts adopted under that Regulation;

(j) presence and daylight controls for lighting systems;

(k) heat pumps compliant with the technical screening criteria set out in Section 4.16 of this Annex;

(l) façade and roofing elements with a solar shading or solar control function, including those that support the growing of vegetation;

(m) energy-efficient building automation and control systems for residential and non-residential buildings;

(n) zoned thermostats and devices for the smart monitoring of the main electricity loads or heat loads for buildings, and sensoring equipment;

(o) products for heat metering and thermostatic controls for individual homes connected to district heating systems, for individual flats connected to central heating systems serving a whole building, and for central heating systems;

(p) district heating exchangers and substations compliant with the district heating/cooling distribution activity set out in Section 4.15 of this Annex;

(q) products for smart monitoring and regulating of heating system, and sensoring equipment.

The economic activities in this category could be associated with several NACE codes, in particular C16.23, C23.11, C23.20, C23.31, C23.32, C23.43, C.23.61, C25.11, C25.12, C25.21, C25.29, C25.93, C27.31, C27.32, C27.33, C27.40, C27.51, C28.11, C28.12, C28.13, C28.14, in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to climate change adaptation 1. The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity. 2. The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps: (a) screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime; (b) where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity; (c) an assessment of adaptation solutions that can reduce the identified physical climate risk. The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that: (a) for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale; (b) for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (110) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments. 3. The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (111), scientific peer-reviewed publications and open source (112) or paying models. 4. The adaptation solutions implemented: (a) do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; (b) favour nature-based solutions (113) or rely on b