Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing the Copernicus Programme and repealing Regulation (EU) No 911/2010
Date: 2013-05-29
Institutions: European Commission
Subjects: EU financing, EU programme, marketing, observation, public safety, satellite, space research

EUROPEAN 
COMMISSION 

Brussels, 29.5.2013  
COM(2013) 312 final 

2013/0164 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing the Copernicus Programme and repealing Regulation (EU) No 911/2010 

(Text with EEA relevance) 

{SWD(2013) 190 final} 
{SWD(2013) 191 final} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Copernicus is the new name of the European Earth Observation Programme, GMES (Global 
Monitoring  for  Environment  and  Security).  Copernicus  or  rather  its  predecessor  was 
established as an EU programme by the GMES Regulation (EU) No 911/2010. It covers all 
the  activities  for  ensuring  an  uninterrupted  provision  of  accurate  and  reliable  data  and 
information on environmental issues and security matters to users in charge of policy making, 
implementation  and  monitoring,  in  the  EU  and  its  Member  States.  Copernicus  aims  at 
providing Europe with a continuous, independent and reliable access to observation data and 
information.  The  EU  investment  aims  at  filling  the  observation  gaps,  providing  access  to 
existing assets and developing operational services. 

Copernicus  is  structured  in  six  Services:  Marine,  Atmosphere,  Land  and  Climate  change 
monitoring  as  well  as  support  to  Emergency  and  Security.  Copernicus  uses  data  from 
satellites  and  in-situ  sensors  such  as  buoys,  balloons  or  air  sensors  to  provide  timely  and 
reliable  added-value  information  and  forecasting  to  support  for  example,  agriculture  and 
fisheries,  land  use  and  urban  planning,  the  fight  against  forest  fires,  disaster  response, 
maritime transport or air pollution monitoring. 

Copernicus  also  contributes  to  economic  stability  and  growth  by  boosting  commercial 
applications (the so-called downstream services) in many different sectors through a full and 
open  access  to  Copernicus  observation  data  and  information  products.  It  is  one  of  the 
programmes  to  be  delivered  under  the  Europe  2020  strategy  for  smart,  sustainable  and 
inclusive growth and it was included in the industrial policy initiative of Europe 2020, given 
its benefits to a wide range of Union policies. 

Responsibility for funding the exploitation and the renewal of space infrastructure developed 
with  EU  and  intergovernmental  funds  cannot  be  optimally  achieved  by  individual  Member 
States  because  of  the  costs  incurred.  In  the  field  of  space-based  observation  for  operational 
meteorology,  European  States  have  pooled  their  resources  to  develop  and  exploit 
meteorological satellites in the framework of the European Organisation for the Exploitation 
of Meteorological Satellites (EUMETSAT). European States also developed demonstrators of 
environmental satellites either through the European Space Agency (ESA) or through national 
space agencies. They could not, however, find a way to co-operate with regard to the funding 
of sustained operational programmes in the field of environmental monitoring. The need for 
continuing  such  observations  is  becoming  critical,  considering  the  increasing  political 
pressure on public authorities to take informed decisions in the field of environment, security 
and climate change and the need to respect international agreements. 

For  the  services  with  a  pan-European  and  a  global  coverage,  Member  States  cannot 
sufficiently  achieve  the  objectives  of  the  proposed  action,  as  the  inputs  from  different 
Member States have to be aggregated at European level. The provision of other services (e.g. 
emergency maps or thematic land monitoring maps of a more limited geographical scope) can 
be  better  achieved  at  EU  level  for  two  reasons.  First,  a  more  coherent  and  centralised 
management  of  input  data,  from  space  based  or  in-situ  sensors  will  allow  for  economies  of 
scale. 

Secondly, a coordinated provision of Earth monitoring services at Member State level helps to 
avoid duplications and enhances the monitoring of the implementation of EU environmental 
legislation  on  the  basis  of  transparent  and  objective  criteria.  Only  comparable  information 
produced at Member State level will make it possible to ascertain an effective implementation 

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of  environmental  legislation  which  in  many  cases  addresses  truly  borderless  and  therefore 
international problems. 

Moreover, action at European level will create economies of scale leading to a better value for 
public money. Action at EU level thus leads to a clear added value. 

Since the beginning the overall funding allocated to its development by the EU and ESA has 
reached over €3.2 billion. A large part of the GM ES budget was dedicated to the development 
of  observation  satellites:  the  Sentinels.  This  was  done  through  a  contribution  from  the 
Commission of € 738 Mio to the ESA’s GMES Space Component programme (GSC). 

Until the end of 2013, Copernicus is funded by the FP7 Space theme and the GMES and its 
Initial Operations programme. As Copernicus will be ready to enter in its operational phase, a 
new  Regulation  is  required  from  2014  onwards.  In  line  with  the  objectives  of  the 
Communication  “A  Simplification  Agenda  for  the  MFF  2014-2020”1,  this  new  Regulation 
will better define the governance of the programme, in particular the role of the Commission, 
the objectives of the programme and indicators which will allow an effective monitoring of its 
implementation  and  ensure  a  smooth  transition  from  the  current  activities.  The  proposed 
Regulation  includes  as  well  provisions  for  the  establishment  of  proportionate  financial 
procedures in particular for the large part of the programme to be implemented indirectly. In 
the context of simplification and “smart regulation”, it should be noted that Copernicus aims 
at enhancing the quality of legislation by providing evidence-based monitoring tools. 

In  its  Communication  entitled  “A  Budget  for  Europe  2020”,  (COM  (2011)  500  final  of 
29.06.2011) the Commission indicated that given the limits of the EU budget, it was proposed 
to fund GMES outside the multi-annual financial framework in the period from 2014 to 2020. 
This  proposal  was  rejected  by  the  Parliament  in  its  resolution  P7_TA(2012)0062  of  16 
February 2012. The European Council conclusions of 7-8 February 2013 on the Multi-annual 
Financial  Framework  (MFF)  foresee  that  the  programme  should  be  financed  under  sub-
heading 1a of the financial framework, with a maximum level of commitments of EUR 3,786 
million (2011 prices) to be laid down in the MFF Regulation.  

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

Since the creation of the European Commission's GMES Bureau in 2006 a rolling process of 
stakeholders'  consultation  has  been  in  place  on  GMES.  This  consultation  process,  launched 
with the Communication entitled “GMES: from concept to reality”2, led firstly to the adoption 
of  the  2008  Communication  entitled  "GMES:  we  care  for  a  safer  Planet"3.  Further 
consultation was carried out in order to prepare the Commission proposal for a Regulation on 
the  European  Earth  monitoring  programme  (GMES)  and  its  initial  operations  (2011-2013)4 
and the Communication entitled "Global Monitoring for Environment and Security (GMES): 
Challenges and Next Steps for the Space Component"5.  

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COM (2012) 42 final of 8 February 2012 
COM (2005) 565 final of 10 November 2005 
COM (2008)748 final of 11.12.2008 
COM (2009) 223 final of 20.5.2009. Regulation (EU) n°911/2010 of the European Parliament and of 
the Council of 22 September 2010 on the European Earth monitoring programme (GMES) and its initial 
operations (2011-2013) – OJ L276 of 20.10.2010, page 1. 
COM (2009)589 final of 28.10.2009 

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Since  the  entry  into  force  of  the  GMES  Regulation  in  2010,  the  consultation  of  Member 
States and users has continued through the new governance bodies set up by the Regulation 
itself: the GMES Committee and the User Forum composed of public user representatives. 

The  consultation  has  confirmed  the  interest  and  need  for  the  Copernicus  Programme  and  – 
now  that  it  is  indeed  becoming  an  EU  programme  –  it  now  focuses  on  different  design 
options,  in  particular  for  the  Copernicus  Services.  Stakeholders  have  indicated  that  the 
uninterrupted  and  guaranteed  availability  of  the  information  coming  from  the  Copernicus 
Services  is  the  cornerstone  for  the  success  of  the  programme  and  for  its  benefits  to  fully 
materialise. 

An  impact  assessment  was  made  in  2011  and  the  main  conclusions  were  published  in 
Document  SEC  (2011)  867  final  of  28.06.2011,  which  accompanied  the  Commission's 
proposal on the Multiannual Financial Framework, COM (2011) 500. The impact assessment 
has now been adapted and the recommendations of the Impact Assessment Board have been 
taken  into  account.  What  has  changed  since  2011  is  the  political  consideration  of  the 
usefulness  of  funding  the  Copernicus  programme  in  the  MFF.  The  Commission  therefore 
considers that it is now time to make a formal proposal. 

It  should  be  noted,  however,  that  this  proposal  had  to  be  readjusted  to  the  amount  agreed 
under the ceiling of Multiannual Financial Framework, which cut the initial proposal of the 
Commission by over 2 billion EUR. In order to preserve the service delivery, the Commission 
had to cut new developments in the space component to renew and modernise the observation 
capacity. ESA will take over responsibility for the development of the next generation of the 
Sentinels. 

The question of ownership of the Copernicus space component assets is important and cannot 
be  considered  in  isolation  from  the  rights  and  responsibilities  that  such  ownership  confers 
upon the owner. The owner has the fullest possible rights including the right of use, transfer 
and disposal.  

In determining whether to accept ownership of the space component assets, two phases need 
to  be  distinguished:  During  the  first  phase,  i.e.  the  present  Multi-Annual  Financial 
Framework, the EU was only a contributor to an ESA programme at a rate of some 30% and 
was lacking the funds to assume a leading role in shaping the space component of Copernicus. 
Moreover,  the  EU  funds  were  largely  FP7  appropriations  and  were  not  designed  to  fund  an 
operational  programme  on  a  permanent  basis.  The  EU  was  therefore  unable  to  assume 
ownership  during  this  phase.  The  second  phase  will  begin  with  the  next  Multi-Annual 
Financial Framework. It brings about a fundamental change in that the EU will now be able to 
fund 100% of most parts of the Copernicus space component, including the ground segment 
and the cost of operations of the satellites.  

In this new context, as referred to in Article 19, the ownership of the satellites will need to be 
reviewed. The Regulation foresees the option that the EU or a specifically designated body or 
fund could take over the ownership from ESA. In view of an ownership transfer, options will 
need to be assessed, taking account relevant factors including the operation of the satellites; 
legal ownership of the data; data access conditions; and the value of the assets. These options 
will only be considered if disadvantages of EU ownership seem to outweigh its advantages. 
The transfer of ownership from the EU could only be exercised by means of a delegated act.  

The option of a data purchase scheme could also be considered. 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Having  regard  to  Article  189  of  the  Treaty  on  the  Functioning  of  the  European  Union,  the 
proposal is for a new Regulation of the European Parliament and the Council establishing the 
Copernicus Programme. It focuses on the following main aspects 

(1) 

(2) 

Change of name into Copernicus; 

Governance  of  GMES  in  its  operational  phase,  with  a  view  to  allowing  the 
Commission to delegate activities to a number of operators; 

(3) 

Funding over 2014-2020. 

4. 

BUDGETARY IMPLICATION  

The  financial  statement  accompanying  this  proposal  for  a  Regulation  sets  out  indicative 
budget appropriations, which are compatible with the multiannual financial framework 2014 – 
2020,  with  a  maximum  level  of  commitments  of  EUR  3,786  million,  in  2011  prices, 
equivalent to EUR 4,291 million in current prices. 

5. 

OPTIONAL ELEMENTS  

The Commission may adopt delegated acts in order to achieve certain objectives set out in the 
proposal. 

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2013/0164 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing the Copernicus Programme and repealing Regulation (EU) No 911/2010 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 189(2) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 
Having regard to the opinion of the European Economic and Social Committee6,  
Having regard to the opinion of the Committee of the Regions7,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

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Global  Monitoring  for  Environment  and  Security  (GMES)  was  an  Earth  monitoring 
initiative led by the Union and carried out in partnership with the Member States and 
the European Space Agency (ESA) The origin of GMES date back to May 1998, when 
institutions  involved  in  the  development  of  space  activities  in  Europe  made  a  joint 
declaration  known  as  the  "Baveno  Manifesto".  The  Manifesto  called  for  a  long-term 
commitment  to  the  development  of  space-based  environmental  monitoring  services, 
making use of, and further developing, European skills, and technologies. In 2005, the 
Union  made  the  strategic  choice  of  developing  an  independent  European  Earth 
observation  capacity  to  deliver  services  in  the  environmental  and  security  fields8, 
which resulted ultimately in Regulation (EU) No 911/2010 of the European Parliament 
and  of  the  Council  of  22  September  2010  on  the  European  Earth  monitoring 
programme (GMES) and its initial operations (2011 to 2013)9. 

Copernicus  should  be  considered  as  a  European  contribution  to  building  the  Global 
Earth  Observation  System  of  Systems  (GEOSS)  developed  within  the  framework  of 
the Group on Earth Observations (GEO). 

Based  on  the  results  of  that  initiative,  Regulation  (EU)  No  911/2010  established  the 
European Earth monitoring programme (GMES) and the rules for the implementation 
of its initial operations.  

OJ C , , p. . 
OJ C , , p. . 
COM(2005) 565 final of 10 November 2005. 
OJ L 276, 20.10.2010, p. 1. 

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(4)  While  the  programme  set  up  under  Regulation  (EU)  No  911/2010  should  continue 
under  the  new  multiannual  financial  framework,  the  acronym  'GMES'  should  be 
changed  to  'Copernicus'  in  order  to  facilitate  the  communication  with  the  public  at 
large.  The  Commission  has  registered  the  trademark  so  that  it  can  be  used  by  the 
Union institutions and licensed to other interested users, in particular the providers of 
core services. 

(5) 

(6) 

(7) 

(8) 

(9) 

The  objectives  of  the  Copernicus  programme  are  to  provide  accurate  and  reliable 
information in the field of the environment and security, tailored to the needs of users 
and  supporting  other  Union’s  policies,  in  particular  relating  to  the  internal  market, 
transport,  environment,  energy,  civil  protection, cooperation with  third  countries  and 
humanitarian  aid. It builds on capabilities existing  in  Europe,  complemented  by  new 
assets developed in common. 

The  Copernicus  programme  should  be  implemented  consistently  with  other  relevant 
Union  instruments  and  action,  in  particular  with  environmental  and  climate  change 
actions,  and  instruments  in  the  field  of  security,  protection  of  personal  data, 
competitiveness  and  innovation,  cohesion,  research,  transport,  competition  and 
international  cooperation,  with  the  European  Global  Navigation  Satellite  Systems 
(GNSS) programme. Copernicus data should maintain coherence with Member States’ 
spatial  reference  data  and  support  the  development  of  the  infrastructure  for  spatial 
information  in  the  Union  established  by  Directive  2007/2/EC  of  the  European 
Parliament  and  of  the  Council  of  14  March  2007  establishing  an  Infrastructure  for 
Spatial Information in the European Community (INSPIRE)10. Copernicus should also 
complement  the  Shared  Environmental  Information  System  (SEIS)  and  Union 
activities in the field of emergency response. 

Copernicus is a programme to be delivered under the Europe 2020 strategy for smart, 
sustainable  and  inclusive  growth.  It  is  to  benefit  a  wide  range  of  Union  policies  and 
contribute  to  reaching  the  objectives  of  Europe  2020,  in  particular  by  developing  an 
effective space policy to provide the tools to address some of the key global challenges 
and meet the targets on climate change and energy sustainability.  

The  Copernicus  programme  stands  to  benefit  from  the  results  provided  by  Horizon 
2020, the Union's Framework Programme for Research and Innovation 2014-2020, in 
particular through its activities in research and innovation for future Earth Observation 
technologies and applications using remote sensing, airborne and in-situ technologies 
and data to respond to the grand societal challenges. 

In  order  to  attain  its  objectives,  the  Copernicus  programme  should  rely  on  an 
autonomous  Union’s  capacity  for  space-borne  observations  and  provide  operational 
services in the field of environment, civil protection and security. It should also make 
use  of  the  available  in-situ  data  provided,  namely,  by  the  Member  States.  The 
provision  of  operational  services  depends  on  the  well-functioning  and  safety  of  the 
Copernicus space component. The increasing risk of collision with other satellites and 
space debris is the most serious threat to the Copernicus space component. Therefore, 
the  Copernicus  programme  should  support  actions  aimed  at  reducing  such  risks,  in 
particular  by  contributing  to  the  programme  established  by  Decision  [XXX]  of  the 

10 

OJ L 108, 25.4.2007, p. 1. 

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European Parliament and the Council establishing a Space Surveillance and Tracking 
Support Programme11. 

(10)  The  maximum  financial  envelope  needed  for  the  Copernicus  actions  (2014-2020)  is 
EUR 3 786 million in 2011 prices, allotted in a separate budget chapter under Title 2 
of  Heading  1a  of  the  Union's  General  Budget.  Staff  and  administrative  expenditures 
incurred by the Commission in the coordination of the Copernicus programme should 
be funded from the budget of the Union. 

(11)  With  a  view  to  improving  the  implementation  of  Copernicus  and  its  long-term 
planning, the Commission should adopt the annual work programme in line with the 
priorities, objectives and strategies of a multi-annual plan,  

(12)  Copernicus should be user driven, thus requiring the continuous, effective involvement 

of users, particularly regarding the definition and validation of service requirements.  

(13)  The international dimension of Copernicus is of particular relevance in the exchange 
of  data  and  information,  as  well  as  in  access  to  observation  infra-structure.  Such  an 
exchange  system  is  more  cost-efficient  than  data-buy  schemes  and  strengthens  the 
global dimension of the programme. 

(14)  The  EEA  Agreement  and  the  Framework  Agreements  with  candidate  and  potential 
candidate countries provide for participation by those countries in Union programmes. 
Participation  by  other third countries and international organisations  should  be  made 
possible by the conclusion of international agreements to that effect. 

(15)  Member  States,  third  countries  and  international  organisations  should  be  free  to 

contribute to the programmes on the basis of appropriate agreements. 

(16)  The  Commission  should  have 

the  Copernicus 
programme.  It  should  define  its  priorities  and  objectives  and  ensure  the  overall 
coordination and supervision of the programme. 

the  overall  responsibility  for 

(17)  Taking  into  account  the  partnership  dimension  of  Copernicus  and  in  order  to  avoid 
duplication  of  technical  expertise,  the  implementation  of  the  programme  should  be 
delegated to entities with the appropriate technical and professional capacity.  

(18) 

In the implementation of the Copernicus programme, the Commission may rely, where 
appropriate, on competent Union agencies, such as the European Environment Agency 
(EEA), the European Agency for the Management of Operational Cooperation at the 
External  Borders  of  the  Member  States  of  the  European  Union  (FRONTEX),  the 
European Maritime Safety Agency (EMSA) and the European Union Satellite Centre 
(EUSC) or any relevant body potentially eligible for a delegation according to Article 
58 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the 
Council of 25 October 2012 on the financial rules applicable to the annual budget of 
the Union12. 

(19)  Pursuant to Article 61(2) of Regulation (EU, Euratom) No 966/2012, the selection of 
entities (the “operators”) to whom the Commission may entrust implementation tasks, 
should  follow  a  transparent  procedure  based  on  justified  on  objective  grounds  and 
shall  not  give  rise  to  a  conflict  of  interests.  Given  the  particular  nature  of  the  tasks 
involved, an ad-hoc procedure based on a call for expression of interest was chosen to 

11 
12 

OJ L , , p. . 
OJ L 298, 26.10.2012, p. 1. 

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identify the potential operators best suited to be entrusted with indirect management of 
the Copernicus programme. 

(20)  The  operators  of  the  Copernicus  programme  should  be  subject  to  supervision  by  the 
Commission,  whilst  enjoying  the  necessary  autonomy  to  implement  the  tasks  they 
were  entrusted  with.  They  should  submit  an  annual  work  programme  to  the 
Commission with an annual implementation report. 

(21) 

(22) 

It  is  important  that,  in  order  to  meet  its  obligations  under  Article  317  TFEU,  the 
Commission has the necessary means at its disposal to supervise the acts of the entities 
to  which  it  entrusts  implementation  tasks  under  the  Copernicus  programme.  This 
includes not just the powers already conferred to it by Regulation (EU, Euratom) No 
966/2012,  but  also  the  possibility  to  give  instructions  to  the  operator  and  conduct 
inspections.  In  particular,  in  the  case  of  urgency  or  of  unforeseeable  events,  and  in 
every situation where the operator is unable to carry out those tasks, the Commission 
should be able to call back the delegation and act in lieu of the operator. The exercise 
of  this  faculty  should  be  proportional  to  the  goals  to  be  attained  and  therefore  the 
delegation agreement should be suspended for the time needed to perform the required 
acts. 

In order to achieve the objective of Copernicus on a sustainable basis, it is necessary to 
coordinate  the  activities  of  the  various  partners  involved  in  Copernicus,  and  to 
develop, establish and operate a service and observation capacity meeting the demands 
of  users.  In  this  context,  a  committee  should  assist  the  Commission  in  ensuring  the 
coordination  of  contributions  to  Copernicus  by  the  Union,  the  Member  States  and 
inter-governmental agencies, making the best use of existing capacities and identifying 
gaps  to  be  addressed  at  Union  level.  It  should  also  assist  the  Commission  in 
monitoring the coherent implementation of Copernicus. 

(23)  The work of the operators to whom the Commission has delegated tasks should also be 
measured  against  performance 
the  European 
Parliament  and  the  Council  with  an  indication  of  the  progress  of  the  Copernicus 
operations and programme implementation. 

indicators.  This  would  provide 

(24)  The  data  and  information  produced  in  the  framework  of  the  Copernicus  programme 
should be made available to the users on a full, open and free-of-charge basis, in order 
to  promote  their  use  and  sharing,  and  to  strengthen  Earth  observation  markets  in 
Europe, in particular the downstream sector, thereby enabling growth and job creation. 

(25)  Wherever  the  access  or  use  of  Copernicus  or  third  party  data  and  information  may 
endanger  the  security  of  the  Union  and  its  Member  States  or  threaten  their  external 
relations,  the  Commission  should  restrict  their  availability  or  limit  the  licences 
awarded. 

(26)  The question of ownership of the Copernicus space component assets is important and 
cannot  be  considered  in  isolation  from  the  rights  and  responsibilities  that  such 
ownership  confers  upon  the  owner.  In  order  to  have  the  right  of  use,  transfer  and 
disposal,  the  Union  should  become  the  owner.  In  the  case  of  the  Sentinel  satellites, 
ownership implies in particular the right to decide upon the data policy and to manage 
its implementation, to choose the exploitation model and the operator of the Sentinels, 
and to conclude international agreements with third countries on, among other, sharing 
satellite data. 

(27)  The  financial  interests  of  the  Union  should  be  protected  through  proportionate 
measures  throughout  the  expenditure  cycle,  including  the  prevention,  detection  and 

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(28) 

(29) 

investigation of irregularities, the recovery of funds lost, wrongly paid or incorrectly 
used and, where appropriate, administrative and financial penalties in accordance with 
Regulation (EU, Euratom) No 966/2012. 

In  order  to  increase  the  value  of  Copernicus  to  users,  the  Commission  should  be 
assisted  by  representatives  of  mid  and  end-users,  experts  from  Member  States 
including from relevant national agencies or by independent experts. 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation  as 
regards  the  adoption  of  the  annual  work  programme,  the  multi  annual  plan  for  the 
period 2014-2020 and the measures to promote the convergence of Member States in 
the  use  of  Copernicus  data  and  information  and  their  access  to  the  technology  and 
development in Earth Observation, implementing powers should be conferred on  the 
Commission. Those powers should be exercised in accordance with Regulation (EU) 
No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by the 
Member States of the Commission's exercise of implementing powers13. 

(30)  So as to inform Member States and respect the impartiality in the decision-making, the 
advisory  procedure  should  be  used  for  the  adoption  of  measures  to  promote  the 
convergence of Member States in the use of Copernicus data and information and their 
access  to  the  technology  and  development  in  Earth  Observation.  The  examination 
procedure  should  be  used  for  the  adoption  of  the  annual  work  programme  and  the 
multi-annual plan for the period 2014-2020 given that that act relates to a programme 
with substantial implications. 

(31) 

In  order  to  take  into  account  possible  security  risks  as  well  as  bandwidth  and  other 
technical  limitations,  the  power  to  adopt  acts  in  accordance  with  Article  290  of  the 
Treaty  on  the  Functioning  of  the  European  Union  should  be  delegated  to  the 
Commission in respect of the data requirements necessary for the operational services, 
the conditions and procedures regarding access to, registration and use of Copernicus 
data  and  information,  the  conditions  and  procedures  for  the  transmission  and  use  of 
satellite  data  transmitted  to  receiving  stations  not  part  of  the  Copernicus  programme 
and for the archiving of Copernicus data and information, the specific technical criteria 
necessary to prevent he disruption of the Copernicus data and information system and 
the criteria for the restriction of dissemination of Copernicus data and information due 
to conflicting rights or security interests, as well as the criteria for the performance of 
the security assessment. It is of particular importance that the Commission carry out 
appropriate  consultations  during  its  preparatory  work,  including  at  expert  level.  The 
Commission,  when  preparing  and  drawing  up  delegated  acts,  should  ensure  a 
simultaneous,  timely  and  appropriate  transmission  of  relevant  documents  to  the 
European Parliament and to the Council. 

(32)  The actions financed under this Regulation should be monitored and evaluated in order 

to allow for readjustments and new evolutions. 

(33)  Since  the  objective  of  this  Regulation,  namely  the  establishment  of  the  programme 
Copernicus, cannot be sufficiently achieved by the Member States because it will also 
comprise pan-European capacity and depend on the coordinated provision of services 
throughout  the  Member  States  that  needs  to  be  coordinated  at  Union  level  and  can 
therefore, by reason of the scale of the action, be better achieved at Union level, the 

13 

OJ L 55, 28.2.2011, p. 13. 

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Union may adopt measures, in accordance with the principle of subsidiarity as set out 
in  Article  5  of  the  Treaty  on  European  Union.  In  accordance  with  the  principle  of 
proportionality, as set out in that Article, this Regulation does not go beyond what is 
necessary in order to achieve that objective. 

(34) 

It is therefore necessary to repeal Regulation (EU) No 911/2010 in order to establish 
an  appropriate  framework  for  governance  and  funding  and  to  ensure  a  fully 
operational Copernicus programme from 2014 onwards,  

HAVE ADOPTED THIS REGULATION: 

Article 1 
Subject-matter 

This  Regulation  establishes  the  Union  Earth  observation  programme  called  Copernicus  and 
lays down the rules for its execution. 

Article 2 
General objectives 

1. 

The Copernicus programme shall contribute to the following general objectives: 

(a)  protection of the environment and provision of support to civil protection and 

security efforts; 

2. 

3. 

4. 

(b) 

support of the Europe 2020 growth strategy by contributing to the objectives of 
smart,  sustainable  and  inclusive  growth;  in  particular,  it  shall  contribute  to 
economic stability and growth by boosting commercial applications.  

The original data and information produced from space-borne observations, as well 
as from available in-situ data (‘Copernicus data and information’) shall be accurate 
and  reliable,  supplied  on  a  long  term  and  sustainable  basis  and  respond  to  the 
requirements of Copernicus user communities. The access to those data shall be full, 
open and free of charge, subject to the conditions defined in or on the basis of this 
Regulation. 

For  the  purpose  of  paragraph  2,  the  Copernicus  user  communities  are  defined  as 
those comprising the European national, regional or local bodies entrusted with the 
definition, implementation, enforcement or monitoring of a public service or policy 
in areas referred to in point (1) of Article 4. 

The  achievement  of  the  objectives  referred to  in  paragraph  1  shall  be  measured  by 
the following result indicators:  

(a)  data and information made available in accordance with the respective service-
level delivery requirements for environment, civil protection and security; 

(b)  market  penetration  and  competitiveness  of 

the  European  downstream 

operators. 

Article 3 
Specific objectives 

1. 

In  order  to  attain  the  general  objectives  described  in  Article  2,  the  Copernicus 
programme shall address user needs and deliver the operational services referred to 
in  point  (1)  of  Article  4.  This  objective  shall  be  measured  by  the  use  of  data  and 

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information  measured  by  the  progression  in  number  of  users,  by  the  volume  of 
accessed  data  and  added-value  information,  and  by  the  widening  of  distribution 
across Member States; 

2. 

The Copernicus programme shall provide a sustainable and reliable access to space-
borne  observations  from  an  autonomous  Union's  Earth  Observation  capacity,  and 
build  on  existing  assets  and  capabilities,  complementing  them  whenever  necessary. 
This objective shall be measured by the accomplishment of the space infrastructure 
in terms of satellites deployed and data it produces. 

Article 4 
Scope of the Copernicus services 

The Copernicus services, as referred to in point (1) of Article 3 shall include: 

1. 

Operational services: 

(a)  The atmosphere monitoring service shall provide information on air quality on 
a  European  scale  and  of  the  chemical  composition  of  the  atmosphere  on  a 
global scale. It shall in particular provide information for air quality monitoring 
systems at the local to national scales, and should contribute to the monitoring 
of atmospheric chemistry climate variables; 

(b)  The  marine  monitoring  service  shall  provide  information  on  the  state  and 
dynamics  of  physical  ocean  and  marine  ecosystems  for  the  global  ocean  and 
the European regional areas; 

(c)  The land monitoring service shall provide information in support of the global-
to-local  environmental  monitoring  of  biodiversity,  soil,  water,  forests  and 
natural  resources,  as  well  as  in  general  implementation  of  environment, 
agriculture,  development,  energy,  urban  planning,  infrastructure  and  transport 
policies; 

(d)  The  climate  change  monitoring  service  shall  provide  information  to  increase 
the  knowledge  base  to  support  adaptation  and  mitigation  policies.  It  shall  in 
particular  contribute  to  the  provision  of  Essential  Climate  Variables  (ECVs), 
climate  analyses  and  projections  at  temporal  and  spatial  scales  relevant  to 
adaptation  and  mitigation  strategies  for  the  various  Union’s  sectorial  and 
societal benefit areas; 

(e)  The  emergency  response  service  shall  provide  information  for  emergency 
response  in  relation  to  different  types  of  disasters,  including  meteorological 
hazards,  geophysical  hazards,  deliberate  and  accidental  man-made  disasters 
and  other  humanitarian  disasters,  as  well  as  the  prevention,  preparedness, 
response and recovery activities; 

(f)  The  security  service  shall  provide  information  in  support  of  the  security 
challenges  of  Europe  improving  crisis  prevention,  preparedness  and  response 
capacities, in particular for border and maritime surveillance, but also support 
for  the  Union’s  external  action,  through  detection  and  monitoring  of 
trans-regional  security  threats,  risk  assessment  and  early  warning  systems, 
mapping and monitoring of border areas; 

2. 

Development  activities  consisting  in  improving  the  quality  and  performance  of 
operational  services,  including  their  evolution  and  adaptation,  and  in  avoiding  or 
mitigating the operational risks; 

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3. 

Support activities consisting in measures to promote the use of operational services 
by users and downstream applications, as well as communication and dissemination 
activities. 

Article 5 
Space component 

The  Copernicus  space  component  shall  provide  space-borne  observations  to  meet  the 
objectives referred to in Articles 2 and 3, serving primarily the operational services referred to 
in  point  (1)  of  Article  4.  The  Copernicus  space  component  shall  include  the  following 
activities: 

(a)  Provision of space-borne observations, including: 

– 

– 

– 

– 

operation of the Copernicus space infrastructure, including tasking of the 
satellites,  monitoring  and  control  of  the  satellites,  reception  and 
processing,  archiving  and  dissemination  of  data,  and  permanent 
calibration and validation; 

provision  of 
  space-borne observations; 

in-situ  data 

for  calibration  and  validation  of

provision,  archiving  and  dissemination  of  third-party  space-borne
  mission data complementing the Copernicus space infrastructure; 

maintenance of the Copernicus space infrastructure 

(b)  Activities in response to evolving needs of the users, including: 

– 

– 

identification  of  observation  gaps  and  the  specification  of  new  space 
missions on the basis of user requirements. 

developments aiming at modernising and complementing the Copernicus 
space component, including design and procurement of new elements of 
the space infrastructure; 

(c)  Contribution to the protection of satellites against the risk of collision. 

Article 6 
In-situ component 

The in-situ component of the Copernicus programme shall include the following activities: 

(a) 

(b) 

(c) 

coordination and harmonisation of the collection and provision of in-situ data, 
provision of in-situ data to the operational services, including third party in-situ 
data at international level; 

technical assistance to the Commission on the service requirements for in-situ 
observation data; 

cooperation with in-situ operators to promote the consistency  of development 
activities related to the in-situ observation infrastructure and networks. 

1. 

The financial envelope allocated to the Copernicus programme for the period 2014 – 
2020 has a maximum amount of EUR 3 786 million in 2011 prices. 

Article 7 
Funding 

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2. 

3. 

Appropriations  shall  be  authorised  annually  by  the  budgetary  authority  within  the 
limits laid down in the multiannual financial framework. Budgetary commitments for 
activities  extending  over  more  than  one  financial  year  may  be  broken  down  over 
several years into annual instalments. 

The  financial  allocation  for  the  Copernicus  programme  may  also  cover  expenses 
relating to preparatory, monitoring, control, audit and evaluation activities which are 
required  directly  for  the  management  of  the  Copernicus  programme  and  the 
achievement  of  its  objectives,  and  in  particular  studies,  meetings,  information  and 
communication  actions,  as  well  as  expenses  linked  to  IT  networks  focusing  on 
information  processing  and  exchange  of  data.  The  resources  allocated 
to 
communication  actions  under  this  Regulation may  also  contribute  proportionally  to 
covering the institutional communication of the political priorities of the Union. 

4. 

Tasks  entrusted  to  other  bodies  shall  be  subject  to  the  procedure  referred  to  in 
Articles 164 and 165 of Regulation (EU, Euratom) No 966/2012. 

Article 8 
Work programme of the Commission 

The  Commission  shall  adopt,  for  each  year  of  the  implementation  of  the  Copernicus 
programme  a  work  programme  pursuant  to  Article  84  of  the  Regulation  (EU,  Euratom)  No 
966/2012.  That  implementing  act  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in point (3) of Article 21 of this Regulation.  

Article 9 
Cooperation with Member States 

1. 

2. 

The  Commission  shall  co-operate  with  Member  States  in  order  to  improve  the 
exchange of data and information between them and increase the volume of the data 
and information made available to the Copernicus programme 

The Commission may adopt measures to promote the convergence of Member States 
in the use of Copernicus data and information and their access to the technology and 
development in Earth Observation. Such measures shall not have the effect to distort 
free competition. Those implementing acts  shall be adopted in accordance  with  the 
advisory procedure referred to in point (2) of Article 21. 

Article 10 
International cooperation 

1. 

The  Union,  represented  by  the  Commission,  may  enter  into  agreements  with  the 
following third countries: 

(a)  European  Free  Trade  Association  (EFTA)  countries  which  are  Contracting 
Parties to the EEA Agreement in accordance with the conditions laid down in 
the EEA Agreement; 

(b) 

the candidate countries, as well as potential candidate countries in accordance 
with  the  respective  Framework  Agreements  or  a  Protocol  to  an  Association 
Agreement  establishing 
the 
participation of those countries in Union programmes; 

the  general  principles  and  conditions  for 

(c)  Switzerland,  other  third  countries  not  referred  to  in  points  (a)  and  (b),  and 
international  organisations,  in  accordance  with  agreements  concluded  by  the 

EN 

14 

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2. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

1. 

Union  with  such  third  countries  or  international  organisations  pursuant  to 
Article 218 TFEU, which shall lay down the conditions and detailed rules for 
their involvement. 

Third  countries  or  international  organisations  may  provide  financial  support  or 
contributions  in  kind  to  the  programme.  The  financial  support  shall  be  treated  as 
external  assigned  revenue,  in  accordance  with  point  2  of  Article  21  of  Regulation 
(EU,  Euratom)  No  966/2012.  Financial  support  and  contributions  in  kind  shall  be 
admissible  under  the  terms  and  conditions  of  the  agreement  concluded  with  the 
respective third country or international organisation. 

Article 11 
Role of the Commission 

The  Commission  shall  have  the  overall  responsibility  for  the  programme.  It  shall 
define the priorities and objectives of the programme and oversee its implementation, 
in particular with respect to the cost, schedule and performance.  

The  Commission  shall  manage,  on  behalf  of  the  Union  and  in  its  field  of 
competence,  relationships  with  third  countries  and  international  organisations, 
ensuring  the  coordination  of  the  Copernicus  programme  with  activities  at  national, 
Union and international levels. 

The Commission shall coordinate the contributions of Member States aiming at the 
operational  delivery  of  services  and  the  long-term  availability  of  the  data  from 
observation infrastructures needed to operate the services. 

The  Commission  shall  ensure  the  complementarity  and  consistency  of  the 
Copernicus programme with other relevant Union policies, instruments, programmes 
and actions. 

The  Commission  shall  maintain  a  transparent  and  regular  user  involvement  and 
consultation,  enabling  identification  of  user  requirements  at  Union  and  national 
levels. 

The Commission shall adopt delegated acts in accordance with Article 22 concerning 
the  establishment  of  the  data  requirements  necessary  for  the  operational  services, 
making provision for their evolution.  

The Commission shall make the financial resources available for the funding of the 
Copernicus programme.  

Article 12 
Operators  

The Commission may entrust,  in  part or in full, where  duly  justified by the special 
nature  of  the  action  and  specific  expertise  of  the  Union  body  the  implementation 
tasks described in Article 4 to competent Union bodies. Among such agencies are: 

(a) 

(b) 

(c) 

(d) 

the European Environment Agency (EEA); 

the  European  Agency  for  the  Management  of  Operational  Cooperation  at  the 
External Borders of the Member States of the European Union (FRONTEX); 

the European Maritime Safety Agency (EMSA); 

the European Union Satellite Centre (EUSC). 

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15 

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2. 

3. 

4. 

5. 

6. 

1. 

2. 

3. 

4. 

The  choice  of  the  Union  body  shall  take  due  account  of  the  cost  efficiency  of 
entrusting those tasks and the impact on the body's governance structure and on its 
financial and human resources. 

Budget  implementation  tasks  entrusted  exceptionally  to  competent  Union  bodies 
under this Article shall be included in the work programme of such Union body for 
information purposes. 

The  Commission  may  entrust,  in  part  or  in  full,  to  the  European  Space  Agency 
(ESA)  the  development  tasks  of  the  space  component  described  in  point  (b)  of 
Article 5. 

The  Commission  may  entrust,  in  part  or  in  full,  the  operational  tasks  of  the  space 
component described in point (a) of Article 5 to ESA and the European Organisation 
for the Exploitation of Meteorological Satellites (EUMETSAT).  

The  Commission  may  entrust,  in  part  or  in  full,  the  activities  of  the  in-situ 
component described in Article 6 to the operators of the services described in Article 
4. 

Article 13 
Selection of operators  

With the exception of operators identified in Article 12, the Commission shall select 
the  operators  to  whom  it  shall  delegate  the  tasks  to  be  implemented  in  accordance 
with the procedure described in paragraphs 2, 3 and 4 of this Article.  

The Commission shall publish a call of expression of interest to potential operators. 
That  call  shall  include  the  exclusion  and  selection  criteria  in  accordance  with  the 
procedure set out below. 

The  Commission  shall  open  a  dialogue  with  the  entities  that  satisfy  the  selection 
criteria in a transparent and objective manner and without giving rise to a conflict of 
interest.  After  the  dialogue  the  Commission  shall  sign  delegation  agreements  with 
the  entity  or  entities  that  have  proven  experience  and  the  operational  and  financial 
capacity. 

The  Commission  may  enter  into  direct  negotiations  before  signing  delegation 
agreements  with  the  entities  listed  in  Article  12,  or  in  duly  justified  and  properly 
documented exceptional cases, in particular where: 

(a)  no suitable proposals were submitted following a call of expression of interest 

to potential operators; 

(b) 

(c) 

the  tasks  to  be  implemented  have  specific  characteristics  that  require  a 
particular  operator  on  account  of  its  technical  competence,  its  high  degree  of 
specialisation or its administrative power; 

for  reasons  of  extreme  urgency  brought  about  by  unforeseeable  events  not 
attributable  to  the  Union,  compliance  with  the  procedure  referred  to  in 
paragraphs 2 and 3 would unduly compromise the execution of the tasks to be 
implemented. 

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Article 14 
Supervision of operators 

1. 

2. 

3. 

4. 

Additional tasks not provided for in the delegation agreement shall be carried out by 
the  operators  only  upon  authorisation  by  the  Commission.  The  operator  may  not 
claim any indemnity or compensation for the additional or supplemental tasks other 
than the reimbursement of costs. 

The Commission shall ensure that the operators shall allow for full disclosure of their 
accounts and all relevant documents and information. The Commission may conduct 
any inspection, including on-site, required to verify the compliance with the present 
Regulation and the relevant delegation agreements. 

Whenever urgency or unforeseeable events so warrant, or upon justified request by 
the  operator,  the  Commission  may  act  in  lieu  of  the  operator  and  suspend  the 
delegation agreement for the time and acts needed to perform the required acts. 

Complaints on the award of contracts and grants by operators in the execution of the 
delegation agreement or the work programme may be submitted to the Commission. 
Nonetheless,  such  complaints  may  concern  only  deliberate  wrongdoing,  gross 
negligence  or  fraud  and  be  submitted  only  after  all  means  of  recourse  before  the 
operator have been exhausted.  

Article 15 
Copernicus Data and Information Policy 

1. 

Copernicus data and information shall be made available on a full, open and free-of-
charge basis, subject to the following limitations: 

(a) 

licensing conditions attached third party data and information; 

(b)  dissemination formats, characteristics and distribution means; 

(c) 

(d) 

security interests and external relations of the Union or its Member States; 

risk  of  disruption,  for  safety  or  technical  reasons,  of  the  system  producing 
Copernicus data and information. 

Article 16 
Limitations and conditions of access and use 

1. 

The Commission may adopt delegated acts in accordance with Article 22 concerning:  

(a) 

(b) 

(c) 

(d) 

(e) 

the  conditions  and  procedures  as  regards  access  to,  registration  and  use  of 
Copernicus  data  and  information,  including  the  formats,  characteristic  and 
dissemination means;  

the  conditions  and  procedures  for  the  transmission  and  use  of  satellite  data 
transmitted to receiving stations not part of the Copernicus programme; 

the  conditions  and  procedures  for  the  archiving  of  Copernicus  data  and 
information; 

the  specific  technical  criteria  necessary  to  prevent  the  disruption  of  the 
Copernicus data and information system, including priority of access;  

the  criteria  for  the  restriction  of  dissemination  of  Copernicus  data  and 
information due to conflicting rights or security interests; 

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2. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

(f) 

the criteria for the performance of the security assessment. 

The Commission shall establish the relevant licenses for Copernicus and third party 
data and information, and the download of satellite data to reception stations not part 
of the Copernicus programme in compliance with this Regulation and the delegated 
acts referred to in paragraph 1.  

Article 17 
Protection of security interests 

The  Commission  shall  perform  a  prior  security  assessment  on  the  Copernicus  data 
and information to identify data and information which are vital for the protection of 
the interests of Union or national security. 

Member States and third countries participating in the Copernicus programme under 
Article 10 may request the Commission to perform a new security assessment when 
security developments warrant such a new assessment.  

Where  the  prior  security  assessment  is  not  possible  in  the  time  frame  of  the 
Copernicus  data  and  information  collection  and  production,  the  Commission  may 
perform an on-the-spot security assessment. 

The  Commission  shall  issue  instructions  on  the  restrictions  of  the  dissemination  of 
Copernicus  data  and  information  in  individual  cases  based  on  the  criteria  adopted 
pursuant  to  point  (1),  subparagraph  (f)  of  Article  16.  In  case  of  urgency,  the 
Commission instructions shall be adopted in a timeframe as short as necessary to be 
effective.  The  Commission  shall  take  the  least  disruptive  measure  in  view  of  the 
objectives  of  the  Copernicus  programme  and  the  Copernicus  data  and  information 
policy.  Its  instructions  shall  be  proportionate,  including  as  regards  timeliness  and 
territorial scope, and weigh the protection of the security interest at stake against the 
availability of data and information from other sources. 

Article 18 
Protection of the financial interests of the Union 

The  Commission  shall  take  appropriate  measures  ensuring  that,  when  actions 
financed under this Programme are implemented, the financial interests of the Union 
are protected by the application of preventive measures against fraud, corruption and 
any other illegal activities, by effective checks and, if irregularities are detected, by 
the  recovery  of  the  amounts  wrongly  paid  and,  where  appropriate,  by  effective, 
proportionate and dissuasive administrative and financial penalties. 

The  Commission  or  its  representatives  and  the  Court  of  Auditors  shall  have  the 
power  of  audit,  on  the  basis  of  documents  and  on  the  spot,  over  all  grant 
beneficiaries,  contractors  and  subcontractors  who  have  received  Union  funds  under 
the Programme. 

The European Anti-Fraud Office (OLAF) may carry out investigations, including on-
the-spot  checks  and  inspections,  in  accordance  with  the  provisions  and  procedures 
laid down in Regulation (EC) No 1073/1999 of the European Parliament and of the 
Council of 25 May 1999 concerning investigations conducted by the European Anti-
Fraud  Office  (OLAF)  and  Council  Regulation  (Euratom,  EC)  No  2185/96  of  11 
November  1996  concerning  on-the-spot  checks  and  inspections  carried  out  by  the 
Commission  in  order  to  protect  the  European  Communities'  financial  interests 

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against  fraud  and  other  irregularities  with  a  view  to  establishing  whether  there  has 
been fraud, corruption or any other illegal activity affecting the financial interests of 
the  Union  in  connection  with  a  grant  agreement  or  grant  decision  or  a  contract 
funded under the Programme. 

Without  prejudice  to  paragraphs  1,  2  and  3,  cooperation  agreements  with  third 
countries and with international organisations, contracts, grant agreements and grant 
decisions,  resulting  from  the  implementation  of  this  Programme  shall  contain 
provisions expressly empowering the Commission, the Court of Auditors and OLAF 
to conduct such audits and investigations, according to their respective competences. 

Article 19 
Ownership 

The Union or a specifically designated body or fund shall be the owner of all tangible 
and intangible assets created or developed under the Copernicus programme subject 
to  agreements  concluded  with  third  parties,  wherever  appropriate,  with  regard  to 
existing ownership rights.  

The terms and conditions relating to the transfer of ownership to the Union shall be 
laid down in the agreements referred to in paragraph 1. 

The Commission shall adopt delegated acts in accordance with Article 22 to establish 
the  terms  and  conditions  of  any  subsequent  transfer  of  ownership  from  the  Union. 
The  delegated  act  shall  designate  the  subsequent  body  or  fund  on  the  basis  of 
transparent and objective grounds, which shall not give rise to a conflict of interests. 

Article 20 
Assistance to the Commission 

The  Commission  may  be  assisted  by  representatives  of  end  users,  independent 
experts,  in  particular  on  security  issues,  and  by  representatives  of  the  relevant 
national  agencies,  in  particular  national  space  agencies,  to  provide  it  with  the 
necessary technical and scientific expertise and user feedback. 

Article 21 
Committee procedure 

The  Commission  shall  be  assisted  by  a  committee  (the  "Copernicus  Committee"). 
That  committee  shall  be  a  committee  within  the  meaning  of  Regulation  (EU)  No 
182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU)  No 
182/2011 shall apply. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU)  No 
182/2011 shall apply.  

Article 22 
Exercise of the delegation  

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 
conditions laid down in this Article.  

4. 

1. 

2. 

3. 

1. 

1. 

2. 

3. 

1. 

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2. 

3. 

4. 

5. 

1. 

2. 

3. 

4. 

The power to adopt delegated acts referred to in point (1) of Article 16 and point (3) 
of Article 19 shall be conferred on the Commission for an indeterminate period from 
1 January 2014.  

The delegation of power may be revoked at any time by the European Parliament or 
by the Council. A decision to revoke shall put an end to the delegation of the power 
specified  in  that  decision.  The  revocation  shall  take  effect  the  day  following  the 
publication of the decision in the Official Journal of the European Union or at a later 
date specified therein. It shall not affect the validity of any delegated acts already in 
force.  

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 
the European Parliament and to the Council.  

Delegated acts adopted pursuant to point (1) of Article 16 and point (3) of Article 19 
shall enter into force only if no objection has been expressed either by the European 
Parliament or the Council within a period of two months of notification of that act to 
the European Parliament and the Council or if, before the expiry of that period, the 
European Parliament and the Council have both informed the Commission that they 
will not object. That period shall be extended by two months at the initiative of the 
European Parliament or the Council.  

Article 23 
Evaluation 

By  30  June  2018  at  the  latest,  an  evaluation  report  shall  be  established  by  the 
Commission  on  the  achievement  of  the  objectives  of  all  the  tasks  financed  by  the 
Copernicus programme at the level of their results and impacts, their European added 
value and on the efficiency of the use of resources. In particular, the evaluation shall 
address the continued relevance of all objectives, as  well as the  contribution  of  the 
measures to the objectives described in Articles 2 and 3. 

The  Commission  shall  carry  out  the  evaluation  referred  to  in  paragraph  1  in  close 
cooperation  with  the  operators  and  the  user  communities  of  the  Copernicus 
programme  shall  examine  the  effectiveness  and  efficiency  of  the  Copernicus 
programme and its contribution to the objectives referred to in Articles 2 and 3. The 
Commission  shall  communicate  the  result  of  these  evaluations  to  the  European 
Parliament,  the  Council,  the  European  Economic  and  Social  Committee  and  the 
Committee of the Regions. 

The  Commission  may,  whenever  necessary,  be  assisted  by  independent  entities, 
undertake an evaluation of the methods of carrying out projects as well as the impact 
of  their  implementation,  in  order  to  assess  whether  the  objectives,  including  those 
relating to environmental protection, have been attained. 

The Commission may request a Member State to provide a specific evaluation of the 
actions and the linked projects financed under this Regulation or, where appropriate, 
to supply it with the information and assistance required to undertake an evaluation 
of such projects. 

Regulation (EU) No 911/2010 is repealed.  

Article 24 
Repeal 

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References to the repealed Regulation shall be construed as references to this Regulation. 

Article 25 
Entry into force 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

It shall apply from the 1 January 2014. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL 

1.1.  Title of the proposal  

1.2.  Policy area concerned in the ABM/ABB structure 

1.3.  Nature of the proposal  

1.4.  Objectives  

1.5.  Grounds for the proposal 

1.6.  Duration and financial impact  

1.7.  Management methods envisaged  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party participation in financing  

3.3.  Estimated impact on revenue

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL 

1.1. 

Title of the proposal 

Proposal  for  a  Regulation  of  the  European  Parliament  and  the  Council  on 
establishing the European Earth Observation Programme (Copernicus) 
Policy area concerned in the ABM/ABB structure14  

1.2. 

Title 02: Enterprise 

Chapter 02 06: Copernicus 

1.3. 

Nature of the proposal  

(cid:133) The proposal/initiative relates to a new action  

(cid:133)  The  proposal/initiative  relates  to  a  new  action  following  a  pilot  project/preparatory 
action15  

(cid:59) The proposal/initiative relates to the extension of an existing action  

(cid:133) The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objectives 

Copernicus is the new name of the European Earth Observation Programme, GMES (Global 
Monitoring  for  Environment  and  Security).  It  covers  all  the  activities  for  ensuring  an 
uninterrupted provision of accurate and reliable data and information on environmental issues 
and security matters to users in charge of policy making, implementation and monitoring, in 
the  EU  and  its  Member  States.  Copernicus  aims  at  providing  Europe  with  a  continuous, 
independent and reliable access to observation data and information.  

Copernicus  is  a  programme  to  be  delivered  under  the  Europe  2020  strategy  for  smart, 
sustainable  and  inclusive  growth.  Its  contribution  to  growth  and  economic  stability,  to  be 
obtained  by  boosting  value-added  commercial  applications,  makes  it  a  component  of  the 
industrial policy flagship in the wake of the Europe 2020 strategy16.  

Copernicus shall contribute to the following general objectives: 

(a)  protection of the environment and provision of support to civil protection and 

security efforts; 

(b) 

support of the Europe 2020 growth strategy by contributing to the objectives of 
smart,  sustainable  and  inclusive  growth;  in  particular,  it  shall  contribute  to 
economic stability and growth by boosting commercial applications.  

The  Copernicus  user  communities  are  defined  as  those  comprising  the  European  national, 
regional  or  local  bodies  entrusted  with  the  definition,  implementation,  enforcement  or 
monitoring of a public service or policy in areas referred to in Article 4(1) of the Regulation. 
The most affected groups will include: 

14 
15 
16 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 
COM(2013) 108 final of 28.2.2013 

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– 

– 

– 

public  authorities  at  European,  national,  regional  and  local  levels  (as  users  and 
contributors), including in third countries (such as participating countries and those 
benefiting from e.g. the GMES and Africa initiative); 

downstream industry, in particular SMEs; and 

the  final  users  (regional  and  local  authorities,  public  institutions  including 
universities,  research  centres,  even  single  citizens  using  public  services  facilitated 
through Copernicus), customers of the downstream sector. 

1.4.1.  The Commission's multiannual strategic objectives targeted by the proposal  

Copernicus aims to contribute to the Europe 2020 objectives in the following ways: 

– 

– 

– 

– 

– 

– 

« a more resource efficient, greener economy », i.e. in particular the preservation and 
management of environmental resources and ecosystems and biodiversity; achieving 
efficiency gains as a result of better enforcement of EU policies such as transport, by 
e.g. monitoring the ice allowing an improvement of the ships routes; agriculture, by 
e.g. supporting smart farming reducing the needs of entrants; energy, by measuring 
the solar radiation necessary for photovoltaic energy production;  

« a  more  competitive  economy »,  as  a  flagship  on  industrial  and  space  policies, 
Copernicus aims to foster the competitiveness of  EU industry and its technological 
edge in space and beyond; it specifically aims to create business potential for SMEs 
by boosting innovation in the downstream sector, developing new services relying on 
Copernicus information; 

« an  economy  based  on  knowledge »,  Copernicus  aims  to  contribute  to  a  better 
understanding of global challenges, it supports the development of research/science 
by the provision of critical data; 

« an  economy  based  on  innovation »,  Copernicus  allows  the  emergence  of  highly 
innovative downstream services. It aims to create partnerships between research and 
business  communities  and  can  set  benchmarks  for  transfer  of  research  and 
development into business; 

« a  high-employment  economy »,  Copernicus  creates  additional  potential  for  new 
jobs by boosting additional demand for highly-skilled workers; 

« economic, social and territorial cohesion », i.e. need for new ground infrastructure 
in  particular  in  the  EU-12;  creating  new  business  potential  for  SMEs  in  all  EU 
Member States Copernicus will give an impetus to those countries lagging behind in 
land  or  emergency  services  and  will  therefore  contribute  to  the  objective  of  an 
increased cohesion among the Member States. Copernicus services are by definition 
pan-European and respond to European requirements. 

1.4.2. 

Specific objectives and ABM/ABB activities concerned  

The Copernicus programme comprises the following specific objectives:  

Specific objective No. 1: Copernicus Services 

The Copernicus land monitoring service will focus on a Periodic Land Cover mapping service 
on the European, regional and national level, and dynamic Land monitoring activities. 

The Copernicus marine environment monitoring service will provide information on the state 
of  physical  oceans  and  marine  ecosystems  for  the  global  ocean  and  the  European  regional 
areas.  The  application  areas  of  the  Copernicus  marine  services  include  maritime  safety,  the 

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marine environment and coastal regions, marine resources as well as seasonal meteorological 
forecasting and climate monitoring. 

The  Copernicus  atmosphere  environmental  service  will  ensure  the  monitoring  of  air  quality 
on a European scale and of the chemical composition of the atmosphere on a global scale. It 
shall  in  particular  provide  information  for  air  quality  monitoring  systems  at  the  local  to 
national  scales,  and  should  contribute  to  the  monitoring  of  atmospheric  chemistry  climate 
variables. 

The  Copernicus  climate  change  monitoring  service  will  allow  for  the  adaptation  and 
mitigation of its effects. It should in particular contribute to the provision of ECVs (Essential 
Climate  Variables),  climate  analyses  and  projections  on  a  scale  relevant  to  adaptation  and 
mitigation and relevant service delivery.  

The Copernicus emergency response service will offer a combination of maps and/or various 
levels of pre-processed data produced to support emergency response players at international, 
European,  national  or  regional  levels  in  disasters  such  as  storms,  fires  floods,  earthquakes, 
volcanic  eruptions,  deliberate  or  man-made  disasters  or  other  humanitarian  disasters.  The 
service  can  address  all  the  crisis  management  cycle:  prevention,  preparedness,  response  or 
recovery activities. 

The Copernicus security service will provide information in support of the challenges which 
Europe  is  facing  in  the  security  field,  notably  border  control,  maritime  surveillance  and 
support for EU external actions. 

The  Copernicus  in-situ  component  will  ensure  observations  through  airborne,  seaborne  and 
ground-based installations for the service areas. The access to reference data is necessary for 
operating  the  services.  While  this  is  mainly  a  responsibility  of  the  Member  States,  the 
programme  may  contribute  to  cross  border  harmonisation  of  in-situ  data  within  the  EU  and 
additional  collection  of  in-situ  data  outside  the  EU.  Activities  will  be  entrusted  to  entities 
responsible for the Services. 

Horizontal  activities  are  included  as  well,  supporting  the  overall  management  of  the  funds 
allocated  under  this  Regulation,  overseeing  the  implementation  of  all  the  programme 
activities, in particular with respect to the cost, schedule and performance, the establishment 
of appropriate instruments and structural measures necessary to identify, control, mitigate and 
monitor  the  risks  associated  with  the  programme;  the  relationships  with  third  countries  and 
international  organisations;  reporting  activities  to  Member  States;  the  coordination  with 
activities  at  national,  Union  and  international  levels,  notably  GEOSS;  the  coordination  of 
voluntary contributions of Member States; ensuring the complementarity and consistency of 
the programme with other relevant Union policies, instruments and actions; the establishment 
of user needs and the monitoring of their implementation. 

Specific objective No. 2: Space observation 

The  Copernicus  space  component  will  ensure  sustainable  space-borne  observations  for  the 
Copernicus services. 

It  includes  the  operations  of  the  dedicated  space  infrastructure  (i.e.  the  Sentinel  satellites); 
access to third party missions; distribution of data; technical assistance to the Commission for 
federating  service  data  requirements,  identifying  observation  gaps,  contributing  to  the 
specification of new space missions. 

Development  activities  include  design  and  procurement  of  new  elements  of  the  space 
infrastructure; provision of technical support to the Commission for the translation of service 
requirements  into  specifications  of  new  space  missions  with  the  support  of  space 

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infrastructure  operators;  coordination  of  the  development  of  space  activities,  including 
developments aiming at modernising and complementing the Copernicus Space Component. 

1.4.3.  Expected results and impact 

The development of services for ensuring the long term sustainability of the system and for 
covering new users' needs not expressed so far is foreseen. The advantage is that Copernicus 
remains able in a sustainable way to consistently respond to users' needs, thereby increasing 
users' up-take and downstream market development. 

Economic impact: the development of new products and new services will stimulate product 
and process innovation and hence have a long term impact on the European industry. The full 
continuity  of  Copernicus  services  would  significantly  improve  the  boost  to  the  industry's 
competitiveness and the emergence of commercially viable businesses. 

Environmental impact: Availability of long term Copernicus Services supports the objective 
for  Europe  to  be  a  key  player  in  climate  change.  It  will  insure  as  well  a  real  partnership  in 
GEOSS. 

Social impact: new jobs would be created, not only in the satellite industry and in R&D, but 
also  in  businesses  linked  to  the  development  of  new  techniques  for  Earth  observation  and 
related industries and services. More important, the sustainable commitment will facilitate the 
development of the downstream services where the impact in terms of employment would be 
significant.  

1.4.4. 

Indicators of results and impact  

The achievement of the objectives will be measured by the following indicators: 

(a)  data  and  added-value  information  made  available  in  accordance  with  the 

service-level delivery requirements; 

(b)  use  of data  and information measured by the progression in number  of  users, 
by  the  volume  of  accessed  data  and  added-value  information,  and  by  the 
widening of distribution across Member States; 

(c)  market  penetration  and  competitiveness  of 

the  European  downstream 

operators. 

Specific tools will be put in place for measuring regularly those parameters, in particular by 
including  specific  requirements  in  the  delegation  agreements  and/or  contracts  to  be 
established  with  operators.  Ad  hoc  studies  will  be  procured  at  several  milestones  of  the 
programme  to  measure  the  degree  of  satisfaction  of  the  (potential)  users,  as  well  market 
penetration and the effect of Copernicus in the competitiveness of the downstream sector. 

In addition, it is expected that a large part of programme implementation will be delegated to 
third  parties.  Delegation  agreements  will  include  objectives  and  indicators  to  allow 
monitoring  the  performance  of  the  operators.  Those  indicators  will  serve  as  well  for  the 
overall monitoring of the programme. They include: 

– 

– 

– 

– 

the establishment at operational level of the 6 services, all six services being in place 
operationally by 2017; 

the delivery within budget and planning of service information as established in the 
delegation agreements and/or contracts with operators; 

the number of users of services and their degree of satisfaction; 

the development of the downstream sector using Copernicus data and information. 

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– 

– 

the  launch  and  exploitation  of  the  planned  satellites  or  instruments,  including  the 
timely  delivery  of  observation  data  in  the  adequate  format  to  the  identified  users, 
according to the planning to be agreed in the Long Term Scenario document for the 
space component; 

the  definition  and  development  within  budget  and  planning  of  new  satellites  and 
respective  ground  segment,  as  defined  in  the  Long  Term  Scenario  and  in  the 
delegation agreement to be established with ESA; 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

Insufficiently reliable information on the state of the earth to public users  

In  the  last  thirty  years,  substantial  R&D  efforts  in  the  field  of  Earth  observation  have  been 
made by the EU, the European Space Agency (ESA) and their respective Member States, with 
a view to developing infrastructure and pre-operational Earth observation services. However, 
many  of  the  existing  Earth  observation  services  in  Europe  are  insufficient  due  to 
infrastructural  gaps  and  lack  of  guarantees  on  their  availability  in  the  long  term.  Data 
provided through the currently existing services either do not cover all the parameters needed 
by  policy  makers17  or  are  not  provided  on  a  continuous  and  sustainable  basis,  in  particular 
because the lifetime of the service or the underlying observation infrastructure is limited due 
to  budgetary  and/or  technical  constraints.  Failure  to  address  this  problem  will  have  major 
short and long term consequences. For example, in the short term, no maps will be available 
for  civil  protection  in  the  event  of  natural  disasters  and  in  the  longer  term,  vital  climate 
change data will not be available for decision makers. 

Downstream investments at risk 

The  Copernicus  programme  based  on  the  Initial  Operation  Regulation  finances,  during  the 
period 2011 – 2013, a set of operational activities. With the existing programme, covering the 
initial operations, a first step has been made towards an Earth observation system. However, it 
is still limited in time (i.e. 2011-2013). 

This risk of disruption represents a major concern for final users like public authorities, but 
also  for  downstream  service  providers,  as  they  are  not  likely  to  invest  significantly  in  non-
mature, risky markets and will face additional difficulties in raising capital.  

Innovation potential at risk 

Disruption  would  also  imply  that  R&D  investments  are  not  translated  into  innovation. 
Therefore  the  potential  to  unleash  the  innovation  capacity  linked  to  Copernicus,  which  is 
mainly a service related innovation, will not be exploited. This would be regrettable especially 
taking  into  account  that  the  EU  innovation  policy  should  be  more  targeted  to  the  services 
sector, as different studies show18. 

Impact on employment 

Finally,  satellite  application  systems  are  the  main  source  of  income  for  the  European  space 
industry (3.1 billion euro), and are the main domain of exports (with 1.13 billion euro).19 One 

17 

In particular, information aggregated at European or global level with a sufficient quality is currently 
not available to European policy makers.  
See for instance Next generation innovation policy, the future of EU innovation policy to support  

18 
market growth, CEPS and Ernst & Young, 2011. 
19 

The European Space Industry in 2010, ASD-Eurospace, 15th edition, June 2011. 

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of the two most significant segments in terms of income is Earth observation (e.g. Copernicus 
Sentinels). Currently, Earth observation systems account for around 30 % of the total income 
for the European space industry. Besides this direct impact on industry sales, Copernicus has 
a  significant  impact  on  the  competitiveness  and  the  profitability  of  the  European  space 
manufacturing industry. Export and trade vastly depend on the relative competitive position of 
the  sector.  For  these  reasons,  Copernicus  impact  on  employment  in  the  sector  would  be 
significant with an estimated 35,000 jobs over the period 2015-2030.  

1.5.2.  Added value of EU involvement 

The legal basis for a European Earth observation programme (Copernicus) is Article 189 of 
the  TFEU,  which  allows  the  EU  to  develop  its  own  space  programme.  Article  2  of  the 
Regulation  911/2010  on  the  European  Earth  Monitoring  programme  (GMES)  and  its  initial 
operations  already  lists  activities  included  in  the  programme.  Moreover,  the  delivery  of 
Copernicus is a strategic objective of Europe 2020.  

Responsibility for funding the exploitation and the renewal of space infrastructure developed 
with  EU  and  intergovernmental  funds  cannot  be  optimally  achieved  by  individual  Member 
States  because  of  the  costs  incurred.  In  the  field  of  space-based  observation  for  operational 
meteorology,  European  States  have  pooled  their  resources  to  develop  and  exploit 
meteorological satellites in the framework of the European Organisation for the Exploitation 
of Meteorological Satellites (EUMETSAT). European States also developed demonstrators of 
environmental satellites either through ESA or through national space agencies. They could, 
not  however,  find  a  way  to  co-operate  with  regard  to  the  funding  of  sustained  operational 
programmes  in  the  field  of  environmental  monitoring  similar  to  those  in  meteorology.  The 
need  for  continuing  such  observations  is  becoming  critical,  considering  the  increasing 
political pressure on public authorities to take informed decisions in the field of environment, 
security and climate change and the need to respect international agreements. 

For the services with a pan-European or global coverage, Member States cannot sufficiently 
achieve the objectives of the proposed action, as the inputs from different Member States have 
to be aggregated at European level. The provision of other services (e.g. emergency maps or 
thematic land monitoring maps of a more limited geographical scope) can be better achieved 
at EU level for two reasons. First, a more coherent and centralised management of input data, 
from  space  based  or  in  situ  sensors  will  allow  for  economies  of  scale.  Secondly,  an 
uncoordinated  provision  of  Earth  observation  services  at  Member  State  level  would  lead  to 
duplications  and  would  render  the  monitoring  of  the  implementation  of  EU  environmental 
legislation  on  the  basis  of  transparent  and  objective  criteria  difficult  or  even  impossible.  If 
information produced at Member State level is not comparable, it will not be possible for the 
Commission  to  ascertain  whether  environmental  legislation  has  been  implemented  correctly 
in  all  Member  States.  Moreover,  action  at  European  level  will  create  economies  of  scale 
leading  to  a  better  value  for  public  money.  Action  at  EU  level  thus  leads  to  a  clear  added 
value. 

1.5.3.  Lessons learned from similar experiences in the past 

This  proposal  builds  on  the  experience  acquired  during  development  of  Copernicus  as  a 
research  initiative  over  the  last  twelve  years  and  the  initial  operations  phase  in  2011-2013. 
This  experience  proves  that,  while  funding  for  research  is  still  necessary  to  continue  the 
development of Copernicus, it has become necessary to support delivery of Earth observation 
services and operations of satellites in order to reap the full benefits of the investments made 
so far and to respond to the needs identified above. 

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1.5.4.  Coherence and possible synergy with other relevant instruments 

In  the  operational  phase  Copernicus  will  be  able  to  deliver  information  to  policy  makers, 
public  authorities,  businesses  and  European  citizens.  This  means  that  Copernicus,  as  an  EU 
autonomous  source  of  information,  aims  to  support  all  relevant  Union  policies,  instruments 
and actions, where understanding the way our planet changes is paramount. 

Examples of Copernicus' contribution to other EU policies are the following: 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

International  cooperation  policies:  extending  Copernicus  services 
to  Africa 
represents  a  concrete  contribution  to  EU  development  policies.  Satellite  Earth 
Observation,  for  instance,  allows  the  monitoring  of  crop  conditions  during  the 
agriculture  season  and  the  development  of  a  Food  Security  Early  Warning  System 
for  at-risk  regions  worldwide.  In  addition  some  applications  of  Copernicus  could 
provide policy makers with information on natural resources in Africa. 

Transport  policy:  by  optimising  ship  routing  Copernicus  Marine  service  can 
minimise fuel consumption and emissions.  

Environmental  policies:  the  Copernicus  services  provide  systematic  or  periodic 
information  at  various  scales  which  are  necessary  for  monitoring  on  a  continuous 
basis  the  state  of  the  Marine,  Atmosphere  and  Land  environment.  In  this  context 
environmental  images  collected  through  Copernicus  could  provide  the  basis  to 
monitor the targets of the new European biodiversity strategy, or as a tool to monitor 
the  efficient  use  of  resources  such  a  wood,  water,  minerals,  land,  air  (quality)  and 
many others at European and global scale. 

Humanitarian  aid:  Copernicus  services  play  also  an  important  role  in  emergency 
response activities inside and outside EU, providing up-to-date information which is 
crucial for decision makers, operation planners and field teams. 

Energy:  Copernicus  can  provide  Europe  with  a  reliable  source  of  information  on 
solar  energy  and  can  contribute  to  the  monitoring  of  nuclear  proliferation  or 
decommissioning of nuclear sites. 

Regional policy: at Pan-EU level the Copernicus Land Service provides harmonised 
land cover and land cover change products. This information is essential for land use 
and urban policies purposes. 

Climate  change  policy:  there  are  several  Copernicus  services  that  touch  upon 
climate-related  issues  such  as  forest  monitoring  and  land  carbon  information, 
monitoring sea and ice level, analysis of green-house gases and fluxes. 

Security: Copernicus can contribute to border surveillance and maritime surveillance. 
In  this  framework  since  2008,  DG  ENTR  and  DG  HOME  have  established a close 
cooperation.  

Agriculture:  Copernicus  could  contribute  to  the  improvement  of  the  timely  and 
accurate  monitoring  of  agricultural  land  use  and  its  changes  at  European,  national 
and  regional  levels  by  providing  common  methodologies  and  indicators  covering 
various temporal, spatial and thematic scales. The common agriculture policy could 
use Copernicus in order to monitor the ‘set-aside’ policy.  

Marine related policies: Copernicus allows understanding the ocean, its dynamic and 
its  impact  on  climate  change.  Applications  in  this  domain  include:  Maritime 
Security,  Oil  Spill,  Marine  Resources  management,  Climate  Change,  Seasonal 
Forecast, Coastal Activities, Ice Survey and Water Quality. 

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1.6. 

Duration and financial impact  

(cid:59) Proposal/initiative of limited duration  

–  (cid:59)  Proposal/initiative in effect from 2014 to 2020 

–  (cid:59)  Financial impact from 2014 to 2020 

(cid:133) Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 
1.7.  Management modes envisaged20  

(cid:59) Direct management by the Commission  

(cid:59) Indirect management with the delegation of implementation tasks 

–  (cid:133)  executive agencies  
–  (cid:59)  bodies set up by the Communities21  

–  (cid:59)  national public-sector bodies/bodies with public-service mission  

–  (cid:133)  persons entrusted with the implementation of specific actions pursuant to Title 
V of the Treaty on European Union and identified in the relevant basic act within 
the meaning of Article 49 of the Financial Regulation  

(cid:133) Shared management with the Member States  

(cid:133) Decentralised management with third countries  

(cid:59) 

International organisations 

If more than one management mode is indicated, please provide details in the "Comments" section. 

Comments: 

Copernicus builds on capabilities existing in Europe, avoiding unnecessary duplication and, to 
the  contrary,  looking  for  synergies  among  existing  national  or  international  capabilities.  In 
addition,  it  is  considered  that  the  Commission  has  neither  the  internal  workforce  nor  the 
expertise to manage alone this highly complex operational system of systems. This is why, in 
line with the objectives of simplification and of improving the performance of EU spending 
programmes,  it  is  proposed  to  implement  large  parts  of  the  programme  indirectly,  in  the 
meaning Article 58 of the Financial Regulation, delegating implementing powers to a number 
of  relevant  bodies,  in  their  field  of  expertise.  With  delegation  agreements,  the  Commission 
will remain responsible for the programme but will transfer implementation responsibilities to 
a  number  of  operators.  The  Commission,  supported  by  the  committee  and  independent 
experts, will focus on defining the high level programmatic decisions and on monitoring their 
implementation. Operators will be requested to submit annual Work Programmes and Annual 
Activity Reports together with audit certificates. 

Until  2013,  the  development  of  the  Space  component  was  co-funded  by  the  EU  and  ESA 
through  a  contribution  of  the  FP7  Space  theme  and  the  GMES  and  its  initial  operations 
Regulation to the ESA’s GMES Space Component programme. The Commission, on behalf 
of the EU, contributed by one third to the overall budget of the GSC programme, i.e. circa 780 

20 

21 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the 
BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 
As referred to in Article 185 of the Financial Regulation. 

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30 

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million  out  of  €  2.4  billion,  To  that  aim,  a  delegation  agreement  was  established  in  2008 
between the EU, represented by the Commission, and ESA. This agreement was established 
under  the  framework  agreement  between  the  EU  and  ESA.  Recognising  that  ESA  has  a 
unique  expertise  and  is  the  only  agency  for  research  and  development  activities  of  space 
related programmes at European level, it is proposed to continue entrusting it the development 
activities, i.e. design, construction and procurement of satellites and related ground segment, 
of Copernicus. It is considered that ESA can continue co-funding the development activities, 
and  in  particular  developments  of  a  new  generation  of  satellites,  to  be  opposed  to  the 
procurement of recurrent units replicating the design of the already developed units.  

It  is  proposed  as  well  to  entrust  the  operations  of  the  developed  infrastructure  to  both  ESA 
and  EUMETSAT.  ESA  will  be  responsible  for  the  operations  of  Sentinels  1,  2  and  of  the 
processing  of  the  Land  part  of  Sentinel  3.  Having  design  and  coordinated  the  design  and 
procurement of the ground segment, acknowledging its expertise acquired on the operations 
of many scientific missions, ESA is well placed to manage these tasks. EUMETSAT will be 
entrusted  with  the  operations  of  satellites  and  instruments  particularly  relevant  for  the 
atmosphere and marine communities, which are very close, often identical, to its own domain 
of  competences.  It  should  be  recalled  that  Sentinels  4  and  5  are  instruments  carried  on 
EUMETSAT  own  satellites.  In  addition,  reception,  treatment  and  distribution  of  data  will 
mostly  be  done  using  multi-mission  capacities  of  EUMETSAT.  Both  organisations  will  be 
responsible  for  the  access  and  delivery  of  observations  from  contributing  missions,  in  their 
respective domains of expertise. 

One of the key products of the Land service is a comprehensive and timely assessment of land 
cover and land cover change. Corine Land Cover (CLC) datasets have provided a time series 
of land cover and land use information over the European continent since 1990. These allow 
for monitoring changes to the earth’s surface that result from the interaction of both natural 
processes  and  human  activities.  Since  1994,  Corine  is  implemented  by  the  European 
Environment Agency. The EEA is an agency of the European Union which task is to provide 
sound,  independent  information  on  the  environment  to  those  involved  in  developing, 
adopting,  implementing  and  evaluating  environmental  policy,  and  also  the  general  public. 
EEA  is  also  responsible  for  coordinating  the  European  environment  information  and 
observation  network  (Eionet)  in  which  national  experts  contribute  to  the  collection  and 
validation  of  environmental  data.  During  the  GMES  initial  operations  (2011-2013),  the 
coordination of the pan-European and local components of the Land service were entrusted to 
the  EEA  and  implemented  through  centralized  implementation,  with  procurement  via 
framework  and  service  contracts  to  service  providers;  and  decentralized  implementation, 
using  grant  agreements  to  national  agencies  that  are  the  EEA’s  direct  stakeholders.  In 
addition, it should be noted that the Land service relies strongly on in-situ measurements and 
geographical  reference  data.  EEA  is  well  placed  to  arrange  their  furniture  by  national 
environmental  and/or  mapping  agencies.  This  is  why,  acknowledging  the  obvious  synergies 
possible between Copernicus and EEA’s core responsibilities, and the unique position of the 
EEA,  as  coordinator  of  the  Eionet,  vis-à-vis  Copernicus  stakeholders  that  are  the  national 
environmental agencies, it is proposed to continue delegating the implementation of these two 
components of the Land service to the EEA. 

Since  2008,  work  has  been  on-going  to  establish  a  European  Border  Surveillance  System 
(EUROSUR) to reinforce the control of the Schengen external border, especially the southern 
maritime and eastern land borders. EUROSUR will provide Member States with a common 
technical  (infrastructure)  and  operational  framework  (workflow)  in  order  to  increase  the 
situational  awareness  at  their  external  borders  and  improve  the  reaction  capabilities  of  their 
national  authorities  surveying  the  EU  borders.  One  of  the  objectives  agreed  is  to  set  up  a 

EN 

31 

   EN 

 
common application of surveillance tools (satellites, UAVs, aerostats, etc), Frontex acting as a 
facilitator. Frontex is the European Agency for the Management of Operational Cooperation 
at the External Borders of the Member States of the European Union. It promotes, coordinates 
and develops European border management. For the strand on border control of the Security 
service,  the  active  cooperation  of  Frontex  is  instrumental.  Frontex  was  involved  in  all  FP7 
projects preparing the strand, as well as other related projects of the FP7 Security theme. It 
can  be  noted  that  the  need  for  Frontex  to  rely  on  GMES/Copernicus  for  those  activities  is 
recognised in the Commission’ proposal for the EUROSUR Regulation22. It is thus proposed 
to delegate the implementation of this strand to Frontex. 

As  for  the  Security  strand  on  maritime  surveillance,  it  is  proposed  to  delegate  its 
implementation to EMSA, the European Maritime Safety Agency. Indeed, EMSA’s mandate 
includes some responsibilities in maritime security and an obligation to assist the Commission 
in  related  activities.  EMSA  has  a  widely  recognised  expertise  in  the  implementation  of 
CLEANSeaNET, a maritime safety operational programme relying on Earth observations. It 
is  also  actively  involved  in  several  R&D  projects  preparing  for  the  Copernicus  Security 
service. 

22 

COM(2011) 873 final 

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32 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

A  monitoring  system  will  be  put  in  place  to  ensure  the  highest  quality  outputs  and  most 
efficient use of resources. Monitoring will run throughout the life of the programme. It will 
build on regular reports from the implementing partners. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

All the risks relating  to the  programme will  be recorded  centrally in  a register  listing. Each 
risk will be allocated a degree of probability and an impact rating. The risk register will also 
include a list of measures intended to reduce the probability of a risk materialising. The risks 
are classified as follows: 

• 

• 

• 

• 

• 

Technological risks: e.g. satellite uses leading-edge technology which has yet to be 
validated and the specifications of which are constantly evolving. 

Industrial risks: establishing the infrastructure involves many industrial players, in a 
number of countries, whose work has to be coordinated effectively in order to arrive 
at  systems  which  are  reliable  and  fully  integrated,  particularly  with  regard  to 
security. 

Market risk: what has to be avoided is a technical performance that is inferior to that 
promised having a negative effect among users, and the infrastructure not being used 
as a result. 

Timetable  risk:  any  delay  in  the  implementation  would  jeopardize  the  window  of 
opportunity. 

Governance  risk:  governance  of  the  programmes  requires  various  bodies  to  work 
together,  and  an  appropriate  degree  of  stability  and  organisation  has  to  be 
guaranteed.  Moreover,  differences  of  opinion  between  the  various  parties  involved 
have to be taken into account on several major issues. In this context the sharing of 
some risks, including financial and security-related risks, among those players who 
are best placed to cope with them, should be considered. 

Moreover,  the  budget  of  the  Programme  will  be  implemented,  for  the  most  part,  in  indirect 
management,  through  delegation  agreements,  and,  in  a  marginal  part,  in  centralised  mode, 
where  the  Commission  will  make  use  of  grants  and  public  procurement.  The  risks  are 
different for each of these different types of expenditure. Audits carried out by the European 
Court of Auditors and by the Commission’s own ex-post audits have identified the following 
main risks which remain potentially valid for this Programme: 

For delegation agreements: The main risks identified refer to eligibility of the operators (the 
entity with whom the Commission concludes a delegation agreement), contractual compliance 
(transposal  of  the  Commission's  requirements  into  the  contractual  documentation),  process 
compliance  (non-observance  of  processes  prescribed  by  the  Commission)  and  performance 
(non-achievement of pre-defined targets/objectives). 

These risk types will be addressed taking account of the following factors: 

• 

Significant  aspects  of  the  management  and  control  process  are  carried  out  by  the 
operators.  

EN 

33 

   EN 

 
• 

• 

The  Commission  has  to  rely  to  a  significant  extent  on  the  operators'  management 
control systems. 

It is important to ensure the appropriate level of controls along the implementation 
chain with clear responsibilities for all the involved partners. 

For grants: The complex cost eligibility rules and the relatively limited financial management 
expertise of certain beneficiaries could result in a high risk of incorrectly declared costs (e.g. 
overheads and equipment costs).  

The lack of a complete database with information about beneficiaries, projects and declared 
costs  could  make  the  detection  of  risky  beneficiaries  and  of  possible  duplicate  charging  of 
costs or other irregularities difficult and thus result in ineffective antifraud activity.  

For  public  procurement:  Undetected  errors  or  uncorrected  imprecisions  in  tenders  or  tender 
specifications could lead to bad contract execution. 

2.2.2.  Control method(s) envisaged  

Different control methods are envisaged to address the different risks identified above 

2.2.2.1.  Delegation Agreements  

Information on the internal control system set-up 

A management and control system based on the following measures should be established: 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

ex-ante assessment of the operator 

risk based monitoring, included on the basis of standardised reporting, 

preventive  action 
compliance, process compliance and performance requirements; 

the  design  of  appropriate  eligibility,  contractual 

through 

contractual  remedies  allowing  for  corrective  action  in  case  of  implementation  error 
regarding  eligibility,  contractual  compliance,  process  compliance  and  performance 
requirements; 

ex-ante controls on payments from the DG to the trust account of the operator; 

alignment of interest measures; 

participation in governance 

audit access rights concerning operators, affiliated entitites and final beneficiaries;  

a full audit trail covering the implementation chain;  

compliance and performance audits by Commission's agents  

integrated  assurance  building  taking  account  of  the  system  of  internal  controls  and 
internal  auditing  maintained  by  operators  and  affiliated  entitites  addressing 
eligibility,  contractual  compliance,  process  compliance  and  performance 
requirements;  

financial statements audited by external auditors; 

statements of assurance provided by operators on an annual basis. 

The  verification  that  processes  are  working  as  designed  will  be  ensured  through  several 
information channels: 

EN 

34 

   EN 

 
management's  knowledge  about  the  state  of  the  DG's  internal  control  systems,  gathered 
through the day-to-day work and experiences; 

the DG’s formal supervision, follow-up and monitoring arrangements; 

• 

• 

• 

• 

• 

the  results  from 
requirements’); 

the  annual  ICS  review  (‘full  compliance  with  baseline 

the results of the Risk Assessment exercise; 

the  ex-ante  and  ex-post  controls,  including  reports  of  exceptions  and/or  internal 
control weaknesses; 

the results from the DG’s external financial audits; 

the audit and consultancy work performed by the DG's Internal Audit Capability; 

evaluations of the Programmes carried out by external evaluators. 

Auditing by the IAC, the IAS or the ECA will provide further feedback on the adequacy of 
the control system. 

Estimation of the costs and benefits of the controls implied by the control system 

Controls  envisaged  have  been  considered  in  a  broad  sense  in  line  with  the  COSO  model 
definition of internal control defined as "a process designed to provide reasonable assurance 
regarding  the  achievement  of  objectives  in  effectiveness  and  efficiency  of  operations, 
reliability of financial reporting, and compliance with applicable laws and regulations". The 
costs  of  controls  are  estimated  on  a  comprehensive  basis  covering  any  activities  which  are 
directly or indirectly related with the verification of the rights of operators and the regularity 
of  the  expenditure.  Where  possible  they  are  detailed  along  the  various  management  stages, 
and in line with the description of the control system envisaged. 

Adjustments to take account of the expected changes of the new proposal include data for the 
alignment of interest measures and further contractual remedies allowing for corrective action 
in case of implementation error regarding requirements. 

Assessment of the expected level of risk of non-compliance with the applicable rules 

Under the envisaged control system, the expected level of risk of non-compliance (defined as 
the expected risk of error of legality and regularity occurring at the level of transactions) will 
be kept below 2% on a multi-annual basis, however with a lower cost due to risk frequency 
and risk impact mitigation, stemming from the additional measures introduced. 

The  error  rate  is  expected  to  drop  due  to  the  clarification  of  the  applicable  rules  including 
SMART  requirements,  due  to  further  reinforcement  of  contractual  remedies  and  due  to  the 
increased alignment of interest. 

It  is  envisaged  that  a  minor  part  of  this  Programme's  budget  might  be  implemented  under 
centralised direct management (see below) through grants and public procurement. 

2.2.2.2.  Grants  

Information on the internal control system set-up 

The  current  internal  control  framework  is  built  on  the  implementation  of  the  Commission's 
Internal Control Standards, procedures for selecting the best projects and translating them into 
legal instruments, project and contract management throughout the project lifecycle, ex-ante 
checks  on  claims,  including  receipt  of  audit  certificates,  ex-ante  certification  of  cost 
methodologies, ex post audits and corrections, and evaluation.  

EN 

35 

   EN 

 
The documentation of calls for proposal contains detailed guidance about eligibility rules and 
notably  about  the  most  frequent  errors  in  relation  to  staff  costs.  Beneficiaries  are  invited  to 
provide already when making a proposal sufficient details about the envisaged costs allowing 
ex-ante  verification  and  detection  of  possible  errors  or  misunderstandings  and  where 
necessary  changes  of  the  implementation  or  adaptation  of  the  grant  agreement.  This  will 
significantly increase the legal certainty of beneficiaries and decrease the risk of error. 

Ex-post controls will be carried out in order to determine the representative average error rate 
that will remain despite of training, ex-ante checks and corrections. The ex-post audit strategy 
for  expenditure  under  the  Programme  will  be  based  on  the  financial  audit  of  transactions 
defined by Monetary Unit Sampling, complemented by a risk-based sample. The ex-post audit 
strategy  regarding  legality  and  regularity  will  be  complemented  by  reinforced  operational 
evaluation and the anti-fraud strategy. 

Estimation of the costs and benefits of the controls implied by the control system 

A balance will have to be found between, on the one hand, increasing the attractiveness of the 
Programme  by  reducing  the  control  burden  for  the  beneficiaries  (increased  trust  and  risk 
taking using more flat rates, lump sums and scales of unit) and, on the other hand, ensuring 
that the rate of un-corrected errors stays as low as reasonably feasible. 

DG  ENTR  will  establish  a  cost-effective  internal  control  system  that  will  give  reasonable 
assurance that the risk of error, over the course of the multiannual expenditure period is, on a 
annual basis,, is within the range of 2-5%; with the ultimate aim to achieve a residual level of 
error  as  close  as  possible  to  2%  at  the  closure  of  the  multiannual  programmes,  once  the 
financial impact of all audits, correction and recovery measures have been taken into account.  

The audit strategy shall aim at providing a fair and reliable representation of the risk of error 
and  at  effectively  and  efficiently  examining  indications  of  fraud.  The  ex-ante  checks  of 
proposals before signature of the grant agreement and clarification of eligibility rules should 
not  significantly  increase  the  time  to  contract.  The  authorising  officers  by  delegation  shall 
report annually about the costs and benefits of control and the Commission shall report to the 
legislative  authority  in  the  framework  of  the  Mid-Term  Review  about  the  level  of  non 
compliance that could be achieved. 

Assessment of the expected level of risk of non-compliance with the applicable rules 

A. Current sources of error 

Based on results so far, recurring errors have been identified in relation to the following: 

• 

• 

• 

personnel  costs:  charging  average  or  budgeted  costs  (rather  than  actual  costs), 
failure  to  keep  adequate  records  of  time  spent  on  the  programme,  charging  of 
ineligible items (SME owner-manager costs). 

other  direct  costs:  regular  errors  identified  are  subcontracting  without  prior 
authorization, or without respecting the rules of value for money, etc. 

indirect  costs:  in  a  number  of  cases  the  indirect  costs  are  a  flat  rate  percentage  of 
direct  costs,  and  so  the  error  in  indirect  costs  is  proportional  to  the  error  in  direct 
costs. 

B. Proposed simplification opportunities 

The program will benefit from the simplification measures included in the triennial review of 
the Financial Regulation. In this framework the Commission will use the possibility to adopt 
simplification measures as for example scales of unit cost for SME owner managers or the use 
of standard rates for staff costs in line with the beneficiaries usual account principles. 

EN 

36 

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C. Contribution of control changes to the reduction of the expected level of noncompliance 

The starting point is the status quo, based on FP7 grant audits carried out so far. Based on the 
assumptions that: 

• 

• 

the  beneficiaries  of  grants  under  the  future  Copernicus  programme  are  similar  to 
those who participated in FP7, and that 

one third of the sources of errors are estimated to be those listed under point B above, 

the  simplification  measures  included  in  the  Financial  Regulation  are  expected  to  lead  to  a 
reduction  of  the  error  rate.  Another  reduction  of  errors  is  expected  from  the  ex-ante 
clarification of the eligibility rules. 

Conclusion:  taken  all  measures  referred  to  above  together,  the  ultimate  aim  is  to  achieve  a 
residual level of error as close as possible to 2% by the end of the lifecycle. 

This scenario is based on the assumption that the measures of simplification are not subject to 
substantial modifications in the decision making process. 

2.2.2.3.  Public Procurement 

The  internal  control  framework  built  on  the  implementation  of  the  Commission's  Internal 
Control  Standards,  public  procurement  procedures  for  selecting  the  best  proposals  and  for 
contract  management  throughout  the  project  /  contract,  and  ex-ante  checks  on  invoices  and 
payments shall avoid residual errors being above 2%. 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 
In the framework of the Commission's Anti-Fraud Strategy (CAFS)23 and with the assistance 
of OLAF through consultation and participation in the OLAF Fraud Prevention and Detection 
Network  (FPDNet)  DG  ENTR  has  developed  its  own  draft  Anti  Fraud  Strategy  (AFS) 
covering measures for the prevention and detection of fraud and irregularities both internally 
and towards beneficiaries and contractors. The AFS will be updated annually. 

In  particular  for  grants,  the  DG  ENTR  AFS  Action  Plan  foresees  the  creation  of  a  central 
register  of  all  its  beneficiaries  (coordinators,  partners,  subcontractors  and  other  actors)  and 
projects  (reports  and  cost  declarations).  This  database,  in  combination  with  the  planned 
acquisition of powerful data analysis tools for the detection of fraud indicators or 'red flags' 
will significantly improve its control functions and audit capabilities. 

In  order  to  increase  the  knowledge  and  capacity  for  performing  preventive  and  effective 
controls, the DG ENTR AFS Action Plan foresees the offer of specific training courses and 
guidance  material.  Furthermore,  a  control  strategy  for  the  evaluation  of  the  financial  and 
technical  capacity  of  beneficiaries  will  be  developed  and  implemented  as  well  as  a  risk-
categorisation of beneficiaries based on fraud-indicators, registration in IT tools and flagging 
for ex ante / ex post audits. 

In  addition,  audit  procedures  and  guidance  for  risk-based  ex  post  audits  will  be  developed 
focussed on possible fraud cases and irregularities. This AFS will also be better aligned to the 
internal control standards, in particular with the risk assessment exercise, and to the AFS of 
other DGs and sub-delegated entities. 

23 

COM(2011)376, 24.06.2011 

EN 

37 

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

Heading(s) of the multiannual financial framework and expenditure budget line(s) affected  

Existing expenditure budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Heading of 
multiannua
l financial 
framework 

[1] 

[1] 

[1] 

Budget line 

Number  
[Heading……………………………………..] 

02010404 – Support expenditure for 
European Earth observation programme 
(Copernicus)  

Type of 
expenditur
e 

Diff./non-
diff. 

Contribution  

from 
EFTA 
countries 

from 
candidate 
countries 

from 
third 
countries 

within the meaning 
of Article 21(2)(b) of 
the Financial 
Regulation  

Non Diff 

YES 

NO 

YES 

020601 - Operational services (Copernicus) 

Diff 

YES 

NO 

YES 

020602 – Space-borne observations 
(Copernicus) 

Diff 

YES 

NO 

YES 

NO 

NO 

NO 

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38 

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3.2. 

Estimated impact on expenditure  

3.2.1.  Summary of estimated impact on expenditure  

Heading of multiannual financial 
framework:  

1 

Smart and inclusive growth 

EUR million (to 3 decimal places) 

DG Enterprise 

(cid:121) Operational appropriations  

020601 

020602 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

Year 
2021 

TOTAL 

Commitments 

Payments 

Commitments 

Payments 

(1) 

(2) 

(1) 

(2) 

58,500 

179,721 

189,426 

197,952 

208,610 

283,691 

210,291 

1,328,191 

29,215 

195,417 

188,779 

197,673 

207,871 

266,906 

231,030 

11,300 

1,328,191 

301,933 

373,949 

394,141 

411,880 

434,051 

590,279 

437,566 

2,943,799 

150,785 

406,608 

392,796 

412,159 

434,790 

555,362 

480,717 

110,582 

2,943,799 

Appropriations of an administrative nature financed  
from the envelope for specific programmes24  

02010404 

(3) 

2,500 

2,700 

2,700 

2,800 

2,900 

2,900 

3,000 

TOTAL appropriations 
for DG Enterprise 

Commitments 

=1+1a +3 

362,933 

556,370 

586,267 

612,632 

645,561 

876,870 

650,847 

Payments 

=2+2a+3 

182,500 

604,725 

584,275 

612,632 

645,561 

825,168 

714,737 

121,882 

19,500 

4.291,480 

4.291,480 

24 

Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, direct 
research. 

EN 

39 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Heading of multiannual financial framework:  

5 

" Administrative expenditure " 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

EUR million (to 3 decimal places) 

DG: Enterprise 

(cid:121) Human resources  

(cid:121) Other administrative expenditure  

4,497 

5,259

5,894 

5,894

5,894

5,894

5,894

0,343 

0,343 

0,343 

0,343 

0,343 

0,343 

0,343 

TOTAL DG ENTERPRISE 

Appropriations  

4,840

5,602

6,237 

6,237

6,237

6,237

6,237

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total commitments  
= Total payments) 

4,840

5,602

6,237 

6,237

6,237

6,237

6,237

39,226 

2,401 

41,627 

41,627 

EUR million (to 3 decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

Payments 

367,773 

561,972 

592,504 

618,869 

651,798 

883,107 

657,084 

187,340 

610,327 

590,512 

618,869 

651,798 

831,405 

720,974 

121,882 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

Year 
2021 

TOTAL 

4.333,107 

4,333,107 

EN 

40 

EN 

 
  
 
 
 
 
 
 
 
 
 
3.2.2.  Estimated impact on operational appropriations  

– 

– 

(cid:133) The proposal/initiative does not require the use of operational appropriations  

(cid:59) The proposal/initiative requires the use of operational appropriations, as explained below: 

Commitment appropriations in EUR million (to 3 decimal places) 

Objectives 

SPECIFIC OBJECTIVE No 1 Services 

SPECIFIC OBJECTIVE No 2 
Space 

TOTAL COSTS 

YEAR 
2014 

58,500 

YEAR 
2015 

YEAR 
2016 

YEAR 
2017 

YEAR 
2018 

YEAR 
2019 

YEAR 
2020 

179,721 

189,426 

197,952 

208,610 

283,691 

210,291 

301,933 

373,949 

394,141 

411,880 

434,051 

590,279 

437,566 

TOTAL 

1,328,191 

2,943,799 

360,433 

553,670 

583,567 

609,832 

642,661 

873,970 

647,857 

4.271,990 

EN 

41 

EN 

 
  
 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

(cid:133) The proposal/initiative does not require the use of administrative appropriations  

(cid:59)  The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as  explained 
below: 

EUR million (to 3 decimal places) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

25

Outside HEADING 5
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

4,497 

5,259 

5,894

5,894

5,894

5,894 

5,894

0,343 

0,343 

0,343 

0,343 

0,343 

0,343 

0,343 

4,840

5,602 

6,237

6,237

6,237

6,237 

6,237

39,226 

2,401 

41,627 

2,500 

2,700 

2,700 

2,800 

2,900 

2,900 

3,000 

19,500 

TOTAL 

7,340

8,302 

8,937

9,037

9,137

9,137 

9,237

61,127

25 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU 
programmes and/or actions (former "BA" lines), indirect research, direct research. 

EN 

42 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.  Estimated requirements of human resources  

– 

– 

(cid:133) The proposal/initiative does not require the use of human resources  

(cid:59) The proposal/initiative requires the use of human resources, as explained below: 

Estimate to be expressed in full amounts (or at most to one decimal place) 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

(cid:121) Establishment plan posts (officials and temporary agents) 

02 01 01 01 (Headquarters and Commission’s 
Representation Offices) 

28 

34 

39 

39 

39 

39 

39 

02 01 01 02 (Delegations) 

02 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)

26

02 01 02 01 (CA, INT, SNE from the "global 
envelope") 

02 01 02 02 (CA, INT, JED, LA and SNE in the 
delegations) 

02 01 04 yy 27 

- 

- 

02 01 05 02 (CA, INT, SNE - Indirect research) 

10 01 05 02 (CA, INT, SNE - Direct research) 

Other budget lines (specify) 

TOTAL 

14 

14 

14 

14 

14 

14 

14 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

0 

0 

- 

- 

- 

42 

48 

53 

53 

53 

53 

53 

The  human  resources  required  will  be  met  by  staff  from  the  DG  who  are  already  assigned  to 
management of the action and/or have been redeployed within the DG, together if necessary with any 
additional allocation which may be granted to the managing DG under the annual allocation procedure 
and in the light of budgetary constraints. 

The  current  human  resources  in  2013  is  29FTE  (17  Establishment  plan  posts  and  12  External 
personnel):  the  progressive  increase  to  53  FTE  (+  22  Establishment  plan  posts  and  +  2  External 
personal  should  be  covered  as  follows:  After  the  revision  on  2016  of  all  existing  delegation 
agreements, a re-assessment of the resources allocated is necessary to ensure that the objectives can be 
met with the staff in place. The actual figures for 2016 to 2019 are indicative and could be revised. 

– 

26 

27 

for  the  22  additional  establishment  plan  posts  (EPP);  8  would  be  covered  by 
redeployment inside the Directorate G of DG Enterprise (a reorganisation is foreseen 
to merge the Space policy activities and Space research and development activities), 
other 4 EPP would be covered by redeployment inside DG Enterprise. The remaining 
10  additional  EPP  must  be  covered  by  the  pool  of  redeployment  from  the 
Commission and/or by seconded (mis à disposition) personnel from DGs involved in 
the  Copernicus  programme  as  it  was  foreseen  by  the  Commission  decision  on  the 

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young 
Experts in Delegations); LA= Local Agent; SNE= Seconded National Expert;  
Under the ceiling for external personnel from operational appropriations (former "BA" lines). 

EN 

43 

   EN 

 
 
 
 
 
 
 
 
 
 
                                                 
creation  of  GMES  from  2006  (C(2006)673)  A  proposal  of  modification  of  this 
decision will be submit. 

– 

for  the  External  personnel:  2  additional  FTE  requested  in  2014  will  be  covered  by 
internal  redeployment;  and  if  needed;  additional  resources  could  be  requested  after 
the 2016 revision and should be granted to DG Enterprise under the annual allocation 
procedure  

Description of tasks to be carried out: 

Officials and temporary agents 

External personnel 

- Prepare and monitor the implementation of the programme including the definition 
of the users requirements; 
- Select delegate bodies; 
- Negotiate delegation agreements (6-fold increase) 
- Supervise delegate bodies (4-fold increase); 
- Monitor budget implementation in indirect mode 
- Provide legal and regulatory analysis to support the policy-making process;  
- Ensure the compliance of proposed solutions with the applicable rules; 
- Guarantee sound financial management and complete the financial transactions 
related to contract management; 
- Perform activities required to ensure efficient cost control; 
- Follow-up on international cooperation and negotiate international agreements 
- Monitor security aspects of Copernicus 
- Maintain relations with Member States, in particular the in-situ component 
- Risk assessment and mitigation (accrued due to financial exposure of the enhanced 
envelope) 
- Relations with the European Parliament and the Council under art 58, 60-61 
Financial Regulation 
- Prevention of fraud and irregularities and relations with OLAF and the Court of 
Auditors 
- Data policy and its enforcement by all stakeholders 
- Promote user uptake in the Member States 
Support to the tasks described here above 

EN 

44 

   EN 

 
3.2.4.  Compatibility with the current multiannual financial framework  

– 

– 

– 

(cid:59) Proposal/initiative is compatible the current multiannual financial framework. 

(cid:133) Proposal/initiative will entail reprogramming of the relevant heading in the multiannual 
financial framework. 

(cid:133)  Proposal/initiative  requires  application  of  the  flexibility  instrument  or  revision  of  the 
multiannual financial framework28. 

3.2.5.  Third-party contributions  

– 

– 

– 

(cid:133) The proposal/initiative does not provide for co-financing by third parties  

(cid:59) The proposal/initiative provides for the co-financing estimated below: 

(cid:133) The programme will be open for participation to third countries but no formal agreement has 
been concluded yet. 

Appropriations in EUR million (to 3 decimal places) 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Total 

Specify the co-financing 
body  

TOTAL appropriations 
cofinanced  

28 

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

45 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.3. 

Estimated impact on revenue  

– 

– 

(cid:59) Proposal/initiative has no financial impact on revenue. 

(cid:133) Proposal/initiative has the following financial impact: 

–  (cid:133) 

on own resources  

–  (cid:133) 

on miscellaneous revenue  

Appropriations 
available for 
the ongoing 
budget year 

Budget revenue line: 

Article …………. 

EUR million (to 3 decimal places) 

Impact of the proposal/initiative

29

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… insert as many columns as necessary in 
order to reflect the duration of the 
impact (see point 1.6) 

For miscellaneous assigned revenue, specify the budget expenditure line(s) affected. 

. 

Specify the method for calculating the impact on revenue. 

. 

29 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. 
gross amounts after deduction of 25% for collection costs. 

EN 

46 

   EN