Connecting Europe Facility (2021-2027)

KEY POINTS

Objectives

CEF 2.0 has similar objectives to CEF 1.0 (which related to the period 2014-2020), but with a greater emphasis on:

• sustainability, decarbonisation and lower emissions;
• the complementarity of transport modes (as well as synergies between the transport, energy and digital sectors);
• improving military mobility across the EU.

The general objective of CEF 2.0 is to build, develop, modernise and complete the trans-European networks in the transport, energy and digital sectors and facilitate international cooperation in the field of renewable energy, specifically contributing to the following 3 areas.

Transport

• Efficient, interconnected and multimodal Trans-European Transport Networks (TEN-T), and infrastructure projects for smart, interoperable, sustainable, inclusive, accessible, safe and secure mobility.
• Adapting parts of the TEN-T infrastructure to improve both civilian and military mobility (subject to specific eligibility rules).

Energy

• Facilitating cross-border energy cooperation, including renewable energy.
• Development of projects of common interests relating to further integration of an internal energy market, interoperability of networks across borders and sectors, facilitating decarbonisation of the economy, promoting energy efficiency and ensuring security of supply.

Digital sector

• Deployment of and access to safe and secure very high-capacity networks, including 5G systems providing Gigabit connectivity in areas where socioeconomic drivers are located.
• Uninterrupted 5G coverage of major transport paths, including the TEN-T.
• Increased resilience and capacity of EU digital backbone networks by linking to neighbouring territories.
• Digitalisation of transport and energy networks.

Budget (at 2021 prices)

• Transport: €25.81 billion (including €11.29 billion transferred from the Cohesion Fund).
• Energy: €5.84 billion.
• Digital: €2.07 billion.

The CEF provides funding in the form of grants and procurement.

Proposals are submitted by one or more EU Member States or, with the agreement of the Member States concerned, by international organisations, joint undertakings, or by public or private undertakings or bodies, including regional or local authorities.

Non-EU country eligibility

The following non-EU countries can participate in the CEF, under certain conditions:

• members of the European Free Trade Association which are also members of the European Economic Area;
• acceding countries, candidate countries and potential candidates;
• European neighbourhood policy countries;
• other non-EU countries, by specific agreement.

Co-financing

For most transport projects, EU financial support does not exceed 30% of the total eligible cost, increased up to 50% for studies, for the more prioritised actions and the civilian-defence dual-use actions, and up to 85% for projects where funds are transferred from the Cohesion Fund.

For energy projects, the EU financial support does not exceed 50% of the total eligible cost, increased up to 75% for projects providing a high degree of regional or EU-wide security of supply, strengthening EU solidarity or offering highly innovative solutions.

For digital projects, the EU financial support does not exceed 30% of the total eligible cost, increased up to 50% for actions with strong cross-border dimension and up to 75% for Gigabit connectivity for socioeconomic drivers.

In each of the transport, energy and digital sectors, as regards works undertaken in the outermost regions, a specific maximum co-funding rate of 70% shall apply.

To support synergies between the transport, energy and digital sectors, actions to achieve objectives in at least 2 of these sectors can receive a higher co-funding rate in compliance with a work programme addressing at least 2 of these sectors.

The regulation repeals Regulations (EU) No 1316/2013 and (EU) No 283/2014.