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Document 32023R2486

Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to the sustainable use and protection of water and marine resources, to the transition to a circular economy, to pollution prevention and control, or to the protection and restoration of biodiversity and ecosystems and for determining whether that economic activity causes no significant harm to any of the other environmental objectives and amending Commission Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for those economic activities

C/2023/3851

OJ L, 2023/2486, 21.11.2023, ELI: http://data.europa.eu/eli/reg_del/2023/2486/oj (BG, ES, CS, DA, DE, ET, EL, EN, FR, GA, HR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)

Legal status of the document In force

ELI: http://data.europa.eu/eli/reg_del/2023/2486/oj

European flag

Official Journal
of the European Union

EN

Series L


2023/2486

21.11.2023

COMMISSION DELEGATED REGULATION (EU) 2023/2486

of 27 June 2023

supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to the sustainable use and protection of water and marine resources, to the transition to a circular economy, to pollution prevention and control, or to the protection and restoration of biodiversity and ecosystems and for determining whether that economic activity causes no significant harm to any of the other environmental objectives and amending Commission Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for those economic activities

(Text with EEA relevance)

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (1), and in particular Articles 8(4), 12(2), 13(2), 14(2) and 15(2) thereof,

Whereas:

(1)

Regulation (EU) 2020/852 establishes the general framework for determining whether an economic activity qualifies as environmentally sustainable for the purposes of establishing the degree to which an investment is environmentally sustainable. That Regulation applies to measures adopted by the Union or by Member States that set out requirements for financial market participants or issuers in respect of financial products or corporate bonds that are made available as environmentally sustainable, to financial market participants that make available financial products, and to undertakings that are subject to the obligation to publish a non-financial statement pursuant to Article 19a of Directive 2013/34/EU of the European Parliament and of the Council (2) or a consolidated non-financial statement pursuant to Article 29a of that Directive. Economic operators or public authorities that are not covered by Regulation (EU) 2020/852 may also apply that Regulation on a voluntary basis.

(2)

Articles 12(2), 13(2), 14(2) and 15(2) of Regulation (EU) 2020/852 require the Commission to adopt delegated acts establishing the technical screening criteria for determining the conditions under which a specific economic activity qualifies as contributing substantially to the sustainable use and protection of water and marine resources, to the transition to a circular economy, to pollution prevention and control or to the protection and restoration of biodiversity and ecosystems, respectively, and to establish, for each relevant environmental objective laid down in Article 9 of that Regulation, technical screening criteria for determining whether that economic activity causes no significant harm to one or more of those environmental objectives.

(3)

The Communication from the Commission of 6 July 2021‘Strategy for Financing the Transition to a Sustainable Economy’ (3) announced the establishment of technical screening criteria for environmental objectives covering the sustainable use and protection of water and marine resources, to the transition to a circular economy, to pollution prevention and control, and to the protection and restoration of biodiversity and ecosystems. Those technical screening criteria should be adopted in addition to the technical screening criteria established in Commission Delegated Regulation (EU) 2021/2139 (4).

(4)

The technical screening criteria for environmental objectives covering the sustainable use and protection of water and marine resources, the transition to a circular economy, pollution prevention and control, and the protection and restoration of biodiversity and ecosystems, should, like the technical screening criteria established in Delegated Regulation (EU) 2021/2139, where possible, follow the classification of economic activities laid down in the NACE Revision 2 classification system of economic activities established by Regulation (EC) No 1893/2006 of the European Parliament and of the Council (5). To facilitate the identification by undertakings and financial market participants of the relevant economic activities for which technical screening criteria should be established, the specific description of an economic activity should also include indicative references to NACE codes that can be associated with that activity. Those references should be understood as indicative and should not prevail over the specific definition of the economic activity provided in its description.

(5)

The technical screening criteria for economic activities that contribute substantially to the sustainable use and protection of water and marine resources, to the transition to a circular economy, to pollution prevention and control, and to the protection and restoration of biodiversity and ecosystems should ensure that the economic activity concerned has a positive impact on one of those objectives. Those technical screening criteria should therefore refer to thresholds or performance levels that the economic activity should achieve to qualify as contributing substantially to one of those objectives. The technical screening criteria for ‘do no significant harm’ (DNSH) should ensure that the economic activity has no significant negative environmental impacts, including climate-related impacts. Consequently, those technical screening criteria should specify the minimum requirements that the economic activity should meet to qualify as environmentally sustainable.

(6)

The technical screening criteria for determining whether an economic activity contributes substantially to one of the environmental objectives laid down in Article 9 of Regulation (EU) 2020/852 and does no significant harm to any of the other environmental objectives should, where relevant build, on existing Union law, best practices, standards and methodologies, and well-established standards, practices and methodologies developed by internationally reputed public entities. Where those standards, practices and methodologies are not available for a specific policy area, the technical screening criteria should build on well-established standards developed by internationally reputed private bodies.

(7)

Pursuant to Article 19(1), point (h), of Regulation (EU) 2020/852, the technical screening criteria should take into account the nature and the scale of the economic activity and sector that they refer to, and whether the economic activity is an enabling activity as referred to in Article 16 of that Regulation. For the technical screening criteria to meet the requirements of Article 19 of Regulation (EU) 2020/852 in an effective and balanced way, those technical screening criteria should be set as a quantitative threshold or minimum requirement, a relative improvement, a set of qualitative performance requirements, process or practice-based requirements, or a precise description of the nature of the economic activity itself where that activity by its nature can contribute substantially to the environmental objectives.

(8)

The technical screening criteria for determining under which conditions an economic activity qualifies as contributing substantially to the sustainable use and protection of water and marine resources should reflect the need to achieve good status for all water bodies and good environmental status for marine waters, and to prevent the deterioration of water bodies that already have good status or marine waters that are already in good environmental status. It is therefore appropriate to focus first on those economic activities and sectors that have the greatest potential to achieve those aims.

(9)

The Union framework for water protection (6) ensures an integrated approach to water management, respecting the integrity of whole ecosystems. The technical screening criteria should therefore aim at addressing the adverse effects of urban and industrial waste water discharges, protecting human health from the adverse impact of any contamination of water intended for human consumption, improving water management and the efficiency of water use, ensuring the sustainable use of marine ecosystem services, contributing to the good environmental status of marine waters and to the overall achievement and maintenance of good status or good potential of bodies of water, including bodies of surface water and groundwater. Technical screening criteria for urban waste water treatment as activity providing a substantial contribution to one or more environmental objectives should be reviewed and where necessary revised, taking into account relevant Union law, including Council Directive 91/271/EEC (7).

(10)

As regards solutions inspired and supported by nature, which provide environmental, social and economic benefits and help build resilience, the technical screening criteria should aim at preventing and protecting against floods or droughts while enhancing natural water retention, biodiversity and water quality.

(11)

The transition to a circular economy is an enabler of environmental sustainability that generates significant benefits for the sustainable management of water, the protection and conservation of biodiversity, the prevention and control of pollution and the mitigation of climate change. The circular economy reflects the need for economic activities to promote efficient use of resources through appropriate re-use and recycling of resources. The technical screening criteria for determining under which conditions an economic activity qualifies as contributing substantially to the transition to a circular economy should therefore ensure that in the design and production phase, the operator takes into account the long-term value retention and waste reduction of the product over its lifecycle. During its use phase, the product should be subject to maintenance to extend its life, while reducing the amount of waste. The product should be dismantled or treated after its use to ensure that it can be re-used or recycled for the manufacturing of another product. That approach can limit the dependency of the Union’s economy on materials imported from third countries, which is particularly important in respect of critical raw materials. It is therefore appropriate to focus first on those economic activities and sectors that have the greatest potential to achieve those aims.

(12)

When considering the circularity of a product, the design and production phases are key for ensuring durability and potential re-use of the product and for its recyclability. Those phases are also imperative for reducing the content of hazardous substances and substituting substances of very high concern in materials and products throughout their life cycle. The technical screening criteria for manufacturing activities that substantially contribute to the transition to circular economy should therefore set design requirements for products’ longevity, reparability and reuse, as well as requirements on the use of materials, substances and processes that allow for quality recycling of the product. The use of hazardous substances should be minimised. Where possible, the criteria should also require the use of recycled materials for the manufacturing of the product itself.

(13)

In the follow-up to Communications from the Commission of 11 December 2019‘The European Green Deal’ (8), of 11 March 2020 on a new Circular Economy Action Plan (9), of 16 January 2018 on a European Strategy for Plastics (10) and of 30 November 2022 on an EU policy framework on biobased, biodegradable and compostable plastics (11), the technical screening criteria for plastic packaging manufacturing should be complemented, reviewed and where necessary revised and taking into account relevant Union law, including Directive 94/62/EC of the European Parliament and of the Council (12) and its future revisions.

(14)

In the absence of legally agreed sustainability criteria on the role of biomass in plastic packaging, the technical screening criteria for manufacturing of plastic packaging making substantial contribution to the transition to a circular economy focus on use of bio-waste feedstock. Taking into account future technology and policy developments, including the review of Directive (EU) 2018/2001 of the European Parliament and of the Council (13), as well as possible contribution to other environmental objectives, those criteria may need to be reviewed.

(15)

Good waste management is a building block of the circular economy and helps prevent waste from having a negative impact on the environment and human health. The Union legislation on waste (14) improves waste management by setting out a ‘waste hierarchy’ under which waste prevention, preparing for re-use and recycling are the preferred options, followed by other recovery, including energy recovery and only as a last resort, disposal such as incineration without energy recovery or landfilling. The technical screening criteria for determining the conditions under which a specific economic activity qualifies as contributing substantially to the transition to a circular economy should therefore aim at preventing or reducing waste generation, increasing the preparation for re-use and recycling of waste, avoiding down cycling and disposal of waste. Taking into account that materials suitable for being reintroduced into the circular economy, such as metals and inorganic salts, can be recycled from combustion products, in particular from bottom ashes from non-hazardous waste incineration, the establishment of technical screening criteria for that recycling activity is to be considered.

(16)

Construction and demolition is responsible for 37 % of waste in the Union (15). Ensuring that the materials used in the construction and maintenance process of buildings and other civil engineering objects come mainly from re-used or recycled (secondary raw) materials; and are in turn prepared for re-use or recycling when the built asset is demolished, can therefore play an important role in the transition to a circular economy. Technical screening criteria therefore should be laid down for the construction of new buildings, renovation of existing buildings, demolition or wrecking of buildings and other structures, maintenance of roads and motorways and for the use of concrete in civil engineering projects. Considerations of the circularity of the materials and the built asset need to be taken into account in the design phase, up until the dismantling phase. The technical screening criteria should therefore follow the principles of circular design and production of the built asset, as well as a circular use of materials used to produce that asset.

(17)

A whole new range of sustainable services, product-as-a-service business models and digital solutions brings about a better quality of life, innovative jobs and upgraded knowledge and skills. In line with the Communication ‘A new Circular Economy Action Plan – For a cleaner and more competitive Europe’, circular economy provides high-quality, functional and safe products, which are efficient and affordable, last longer and are designed for re-use, repair and high-quality recycling. The technical screening criteria for determining the conditions under which innovative sustainable services qualify as contributing substantially to the transition to a circular economy should therefore be laid down for activities that contribute to prolonging the life of products.

(18)

Digital solutions, including the use of digital product passports, can provide real-time data about an item’s location, condition, and availability, and increase the traceability of materials and that way enhance value retention in every design, manufacturing and consumer decision. That in turn enables economic actors to move to circular business models, including product-as-a-service business model, ultimately decoupling economic activities from the use of natural resources and improving an economic activity’s environmental impacts. Technical screening criteria should therefore be established for new digital solutions that can improve the transparency and efficiency of environmental monitoring and regulatory enforcement, including decision-making within integrated water resources management.

(19)

The technical screening criteria for determining under which conditions an economic activity qualifies as contributing substantially to pollution prevention and control should reflect the need to eliminate pollution in air, water, soil, living organisms and food resources. Pollution can cause illnesses and in consequence may lead to premature deaths. Its most harmful impacts on human health are typically borne by the most vulnerable groups (16). Pollution also threatens biodiversity and contributes to the mass extinction of species. As outlined in the Communication from the Commission of 12 May 2021, Pathway to a Healthy Planet for All EU Action Plan: ‘Towards Zero Pollution for Air, Water and Soil’ (17), the economic benefits of fighting pollution are substantial and the benefits for society far outweigh the required costs.

(20)

Following the ambition of the Communication from the Commission of 14 October 2020‘Chemicals Strategy for Sustainability Towards a Toxic-Free Environment’ (18), to help to prevent and control pollution it is particularly important to progressively phase out the most harmful substances from products for consumer or professional use except when their use has been proven to be essential for society and to substitute or minimise the production and use of substances of concern, as far as possible.

(21)

Pollution caused by certain pharmaceutical ingredients may pose risks to the environment and to human health as outlined in the Communication from the Commission of 11 March 2019‘European Union Strategic Approach to Pharmaceuticals in the Environment’ (19). Technical screening criteria for the manufacturing of active pharmaceutical ingredients or active substances and for the manufacturing of medicinal products should therefore aim at promoting the production and use of ingredients that are naturally occurring substances or are classified as readily biodegradable.

(22)

Preventing and reducing emission of pollutants in the end-of-life phase of products, and the cleaning-up of existing pollution, have a significant potential to protect the environment from pollution and to improve the state of the environment. Technical screening criteria should therefore be established for the collection, transport and treatment of hazardous waste which poses a greater risk to the environment and human health than non-hazardous waste, as well as for remediation of non-conforming landfills and abandoned or illegal waste dumps and of contaminated sites and areas.

(23)

The technical screening criteria for determining under which conditions an economic activity qualifies as contributing substantially to the protection and restoration of biodiversity and ecosystems should reflect the need to protect, conserve or restore biodiversity to achieve the good condition of ecosystems or to protect ecosystems that are already in good condition. Loss of biodiversity and collapse of ecosystems are one of the biggest threats facing humanity in the next decade (20).

(24)

Conservation of biodiversity has direct economic benefits for many sectors of the economy. The technical screening criteria should therefore aim at maintaining or improving the status and trends of terrestrial, freshwater and marine habitats, ecosystems and populations of related fauna and flora species.

(25)

The value of biodiversity and of the associated services provided by healthy ecosystems is important for tourism as it contributes significantly to the attractiveness and quality of tourism destinations, and therefore to their competitiveness. Technical screening criteria should therefore be established for tourism accommodation activities and should aim at ensuring that those activities follow appropriate principles and minimum requirements to protect and sustain the biodiversity and ecosystems, and to contribute to their conservation.

(26)

The technical screening criteria for determining whether the economic activities that contribute substantially to one of the environmental objectives cause no significant harm to any of the other environmental objectives should aim at ensuring that contribution to one of the environmental objectives is not made at the expense of other environmental objectives. The ‘do no significant harm’ criteria play therefore an essential role in ensuring the environmental integrity of the classification of environmentally sustainable activities. The ‘do no significant harm’ criteria for a given environmental objective should be specified for those activities that present a risk of causing significant harm to that objective. Those criteria should take into account and build upon the relevant requirements of existing Union law.

(27)

The technical screening criteria for ensuring that activities that contribute substantially to one of the environmental objectives do not cause significant harm to climate change mitigation should ensure that economic activities that have the potential to contribute substantially to environmental objectives other than climate change mitigation do not lead to significant greenhouse gas emissions.

(28)

Climate change is likely to affect all sectors of the economy. The technical screening criteria for ensuring that economic activities that contribute substantially to one of the environmental objectives do not cause significant harm to climate change adaptation should therefore apply to all of those economic activities. Those criteria should ensure that existing and future risks that are material to the economic activity are identified and that adaptation solutions are implemented to minimise or avoid possible losses or impacts on business continuity.

(29)

The technical screening criteria for ‘do no significant harm’ to sustainable use and protection of water and marine resources should be specified for all activities that may hinder such sustainable use and protection. Those criteria should aim at avoiding that economic activities are detrimental to the good status or the good ecological potential of water bodies, including surface water and groundwater, or to the good environmental status of marine waters, by requiring that environmental degradation risks are identified and addressed, in accordance with a water use and protection management plan or with the Member States’ marine strategies.

(30)

The technical screening criteria for ‘do no significant harm’ to transition to a circular economy should be tailored to specific economic activities to ensure that those activities do not lead to inefficiencies in the use of resources or to lock-in linear production models, and that waste is avoided or reduced and, where unavoidable, managed in accordance with the waste hierarchy. Those criteria should also ensure that economic activities do not undermine the objective of transitioning to a circular economy.

(31)

The technical screening criteria for ‘do no significant harm’ to pollution prevention and control should reflect sector specificities to address the relevant sources and types of pollution into air, water or land, referring, where relevant, to best available techniques conclusions established under Directive 2010/75/EU of the European Parliament and of the Council (21).

(32)

The criteria for ‘do no significant harm’ to protection and restoration of biodiversity and ecosystems should be specified for all activities that can pose risks to the status or condition of habitats, species or ecosystems and should require that, where relevant, environmental impact assessments or other appropriate assessments are undertaken and the conclusions from such assessments are implemented. Those criteria should ensure that even in the absence of a requirement to perform an environmental impact assessment or other appropriate assessment, activities do not lead to the disturbance, capturing or killing of legally protected species or the deterioration of legally protected habitats.

(33)

As climate change is likely to affect all sectors of the economy, all sectors of the economy will need to be adapted to the adverse impact of the current climate and the expected future climate. Technical screening criteria for substantial contribution to climate change adaptation are to be therefore established in the future for all sectors and economic activities that are covered by the technical screening criteria for substantial contribution to the sustainable use and protection of water and marine resources, to the transition to a circular economy, to pollution prevention and control or to the protection and restoration of biodiversity and ecosystems set out in this Regulation.

(34)

The inclusion of new economic activities contributing to environmental objectives pursuant to Articles 12(2), 13(2), 14(2), and 15(2) of Regulation (EU) 2020/852 will widen the coverage of disclosures laid down in Article 8 of that Regulation. Commission Delegated Regulation (EU) 2021/2178 (22), which was adopted on the basis of Article 8(4) of Regulation (EU) 2020/852, should therefore be amended to reflect that widened scope. To address certain technical and legal inconsistencies identified since the application of Delegated Regulation (EU) 2021/2178, targeted amendments should also be introduced to that Regulation.

(35)

Delegated Regulation (EU) 2021/2178 should therefore be amended accordingly.

(36)

The four environmental objectives referred to in Article 9, points (c) to (f), of Regulation (EU) 2020/852 and in Articles 12, 13, 14 and 15 of that Regulation are closely interlinked in terms of the means by which an objective is achieved and the benefits that achieving one of the objectives may have on other objectives. The provisions determining whether an economic activity contributes substantially to the sustainable use and protection of water and marine resources, to the transition to a circular economy, to pollution prevention and control or to the protection and restoration of biodiversity and ecosystems, are thus closely interrelated, and are closely linked to the need to widen the disclosure obligations laid down in Delegated Regulation (EU) 2021/2178. To ensure coherence between those provisions, which should enter into force at the same time, to facilitate a comprehensive view of the legal framework for stakeholders and to facilitate the application of Regulation (EU) 2020/852, it is necessary to include those provisions in a single Regulation.

(37)

To ensure that the application of Regulation (EU) 2020/852 evolves with scientific, technological, market and policy developments, this Regulation should be regularly reviewed and, where appropriate, amended as regards the activities considered to be contributing substantially to the sustainable use and protection of water and marine resources, to the transition to a circular economy, to pollution prevention and control, to the protection and restoration of biodiversity and ecosystems, and the corresponding technical screening criteria.

(38)

This Regulation is consistent with the climate-neutrality objective set out in Article 2(1) of Regulation (EU) 2021/1119 of the European Parliament and of the Council (23) and ensures progress on adaptation as referred to in Article 5 of that Regulation. The Commission assessed the consistency of the technical screening criteria for ensuring that economic activities that contribute substantially to one of the environmental objectives do not cause significant harm to climate change mitigation and climate change adaptation with the objective and targets of Regulation (EU) 2021/1119 as required by Article 6(4) of that Regulation.

(39)

It is necessary to provide non-financial and financial undertakings with sufficient time to assess whether their economic activities comply with the technical screening criteria laid down in this Regulation, and to report on the basis of that assessment in accordance with Delegated Regulation (EU) 2021/2178. The date of application of this Regulation should therefore be deferred, while the amendments to Delegated Regulation (EU) 2021/2178 should ensure that non-financial and financial undertakings have sufficient time to comply with their reporting requirements under that Regulation,

HAS ADOPTED THIS REGULATION:

Article 1

Technical screening criteria related to the sustainable use and protection of water and marine resources

The technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to the sustainable use and protection of water and marine resources and for determining whether that economic activity causes no significant harm to any of the other environmental objectives laid down in Article 9 of Regulation (EU) 2020/852 are set out in Annex I to this Regulation.

Article 2

Technical screening criteria related to the transition to a circular economy

The technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to the transition to a circular economy and for determining whether that economic activity causes no significant harm to any of the other environmental objectives laid down in Article 9 of Regulation (EU) 2020/852 are set out in Annex II to this Regulation.

Article 3

Technical screening criteria related to pollution prevention and control

The technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to pollution prevention and control and for determining whether that economic activity causes no significant harm to any of the other environmental objectives laid down in Article 9 of Regulation (EU) 2020/852 are set out in Annex III to this Regulation.

Article 4

Technical screening criteria related to the protection and restoration of biodiversity and ecosystems

The technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to the protection and restoration of biodiversity and ecosystems and for determining whether that economic activity causes no significant harm to any of the other environmental objectives laid down in Article 9 of Regulation (EU) 2020/852 are set out in Annex IV to this Regulation.

Article 5

Amendments to Delegated Regulation (EU) 2021/2178

Delegated Regulation (EU) 2021/2178 is amended as follows:

(1)

in Article 8, paragraph 5 is deleted;

(2)

in Article 10, the following paragraphs 6 and 7 are added:

‘6.   From 1 January 2024 until 31 December 2024, non-financial undertakings shall only disclose the proportion of Taxonomy-eligible and Taxonomy non-eligible economic activities pursuant to Delegated Regulation (EU) 2023/2486 and Sections 3.18 to 3.21, Sections 6.18 to 6.20 of Annex I to Delegated Regulation (EU) 2021/2139 and Sections 5.13, 7.8, 8.4, 9.3, 14.1 and 14.2 of Annex II to Delegated Regulation (EU) 2021/2139 in their total turnover, capital and operational expenditure and the qualitative information referred to in Section 1.2 of Annex I relevant for that disclosure.

The key performance indicators of non-financial undertakings shall cover the economic activities set out in Delegated Regulation (EU) 2023/2486 and Sections 3.18 to 3.21, Sections 6.18 to 6.20 of Annex I to Delegated Regulation (EU) 2021/2139 and Sections 5.13, 7.8, 8.4, 9.3, 14.1 and 14.2 of Annex II to Delegated Regulation (EU) 2021/2139 from 1 January 2025.

7.   From 1 January 2024 until 31 December 2025, financial undertakings shall only disclose:

(a)

the proportion in their covered assets of exposures to Taxonomy non-eligible and Taxonomy-eligible economic activities pursuant to Delegated Regulation (EU) 2023/2486 and Sections 3.18 to 3.21, Sections 6.18 to 6.20 of Annex I to Delegated Regulation (EU) 2021/2139 and Sections 5.13, 7.8, 8.4, 9.3, 14.1 and 14.2 of Annex II to Delegated Regulation (EU) 2021/2139;

(b)

the qualitative information referred to in Annex XI relating to economic activities referred to in point (a).

The key performance indicators of financial undertakings shall cover the economic activities set out in Delegated Regulation (EU) 2023/2486 and Sections 3.18 to 3.21, Sections 6.18 to 6.20 of Annex I to Delegated Regulation (EU) 2021/2139 and Sections 5.13, 7.8, 8.4, 9.3, 14.1 and 14.2 of Annex II to Delegated Regulation (EU) 2021/2139 from 1 January 2026.’

;

(3)

Annexes I, II, III, IV, V, VII, IX and X are amended in accordance with Annex V to this Regulation;

(4)

Annex VI is replaced by the text set out in Annex VI to this Regulation;

(5)

Annex VIII is replaced by the text set out in Annex VII to this Regulation.

Article 6

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 1 January 2024.

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

Done at Brussels, 27 June 2023.

For the Commission

The President

Ursula VON DER LEYEN


(1)   OJ L 198, 22.6.2020, p. 13.

(2)  Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).

(3)  Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, Strategy for Financing the Transition to a Sustainable Economy (COM(2021) 390 final).

(4)  Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental objectives (OJ L 442, 9.12.2021, p. 1).

(5)  Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 establishing the statistical classification of economic activities NACE Revision 2 and amending Council Regulation (EEC) No 3037/90 as well as certain EC Regulations on specific statistical domains (OJ L 393, 30.12.2006, p. 1).

(6)  In particular Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (OJ L 327, 22.12.2000, p. 1), Directive 2008/105/EC of the European Parliament and of the Council of 16 December 2008 on environmental quality standards in the field of water policy, amending and subsequently repealing Council Directives 82/176/EEC, 83/513/EEC, 84/156/EEC, 84/491/EEC, 86/280/EEC and amending Directive 2000/60/EC of the European Parliament and of the Council (OJ L 348, 24.12.2008, p. 84), Directive 2006/118/EC of the European Parliament and of the Council of 12 December 2006 on the protection of groundwater against pollution and deterioration (OJ L 372, 27.12.2006, p. 19), Council Directive 91/271/EEC of 21 May 1991 concerning urban waste-water treatment (OJ L 135, 30.5.1991, p. 40), Directive (EU) 2020/2184 of the European Parliament and of the Council of 16 December 2020 on the quality of water intended for human consumption (OJ L 435, 23.12.2020, p. 1), Directive 2008/56/EC of the European Parliament and of the Council of 17 June 2008 establishing a framework for community action in the field of marine environmental policy (Marine Strategy Framework Directive) (OJ L 164, 25.6.2008, p. 19), Directive 2006/7/EC of the European Parliament and of the Council of 15 February 2006 concerning the management of bathing water quality and repealing Directive 76/160/EEC (OJ L 64, 4.3.2006, p. 37) and Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources (OJ L 375, 31.12.1991, p. 1).

(7)  Council Directive 91/271/EEC of 21 May 1991 concerning urban waste-water treatment (OJ L 135, 30.5.1991, p. 40).

(8)  Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, The European Green Deal (COM(2019) 640 final).

(9)  Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, A new Circular Economy Action Plan – For a cleaner and more competitive Europe (COM(2020) 98 final).

(10)  Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, A European Strategy for Plastics in a Circular Economy (COM(2018) 28 final).

(11)  Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, EU policy framework on biobased, biodegradable and compostable plastics (COM(2022) 682 final).

(12)  Directive 94/62/EC of the European Parliament and of the Council of 20 December 1994 on packaging and packaging waste (OJ L 365, 31.12.1994, p. 10).

(13)  Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).

(14)  See in particular Article 4 of Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, p. 3).

(15)  Eurostat Statistics Explained database, presenting data collected in accordance with Regulation (EC) No 2150/2002 of the European Parliament and of the Council of 25 November 2002 on waste statistics (OJ L 332, 9.12.2002, p. 1).

(16)  European Environmental Agency Report No 22/2018, Unequal exposure and unequal impacts: social vulnerability to air pollution, noise and extreme temperatures in Europe.

(17)  Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, Pathway to a Healthy Planet for All EU Action Plan: ‘Towards Zero Pollution for Air, Water and Soil’ (COM(2021) 400 final).

(18)  Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, Chemicals Strategy for Sustainability Towards a Toxic-Free Environment (COM(2020) 667 final).

(19)  Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee, European Union Strategic Approach to Pharmaceuticals in the Environment (COM(2019) 128 final).

(20)  World Economic Forum (2020), The Global Risks Report 2020.

(21)  Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (OJ L 334, 17.12.2010, p. 17).

(22)  Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by specifying the content and presentation of information to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EU concerning environmentally sustainable economic activities, and specifying the methodology to comply with that disclosure obligation (OJ L 443, 10.12.2021, p. 9).

(23)  Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).


ANNEX I

Technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to the sustainable use and protection of water and marine resources and for determining whether that economic activity causes no significant harm to any of the other environmental objectives

Table of Contents

1.

Manufacturing 11

1.1.

Manufacture, installation and associated services for leakage control technologies enabling leakage reduction and prevention in water supply systems 11

2.

Water supply, sewerage, waste management and remediation activities 12

2.1.

Water supply 12

2.2.

Urban waste water treatment 15

2.3.

Sustainable urban drainage systems (SUDS) 16

3.

Disaster risk management 18

3.1.

Nature-based solutions for flood and drought risk prevention and protection 18

4.

Information and communication 21

4.1.

Provision of IT/OT data-driven solutions for leakage reduction 21

1.    Manufacturing

1.1.   Manufacture, installation and associated services for leakage control technologies enabling leakage reduction and prevention in water supply systems

Description of the activity

The economic activity manufactures, installs, or provides associated services for leakage control technologies that enable leakage reduction and prevention in water supply systems (WSSs).

The economic activities in this category could be associated with several NACE codes, in particular E36 and F42.99, in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

An economic activity in this category is an enabling activity in accordance with Article 12(1), point (e), of Regulation (EU) 2020/852 where it complies with the technical screening criteria set out in this Section.

Technical screening criteria

Substantial contribution to the sustainable use and protection of water and marine resources

1.

The activity manufactures, installs or provides maintenance, repairs or professional services for leakage control technologies in new or existing water supply systems, aimed at controlling the pressure in district metered areas (DMAs) of the water supply system to a minimum pressure. The leakage control technologies include in particular pressure control valves, pressure transmitters, flow meters and communication devices and special civil works, including manholes to maintain the pressure control valves.

2.

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed with the aim of achieving good water status and good ecological potential as defined in Article 2, points (22) and (23), of Regulation (EU) 2020/852, in accordance with Directive 2000/60/EC (1) and in line with a water use and protection management plan, developed in accordance with that Directive for the potentially affected water body or bodies, in consultation with relevant stakeholders.

Where an Environmental Impact Assessment is carried out in accordance with Directive 2011/92/EU of the European Parliament and of the Council (2) and where that assessment contains an assessment of the impact on water in accordance with Directive 2000/60/EC, no additional assessment of impact on water is required, provided the risks identified have been addressed.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

N/A

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(4)

Transition to a circular economy

The activity assesses the availability of and, where feasible, adopts techniques that support:

(a)

reuse and use of secondary raw materials and reused components in products manufactured;

(b)

design for high durability, recyclability, easy disassembly and adaptability of products manufactured;

(c)

waste management that prioritises recycling over disposal, in the manufacturing process;

(d)

information on and traceability of substances of concern throughout the life cycle of the manufactured products.

(5)

Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

2.    Water supply, sewerage, waste management and remediation activities

2.1.   Water supply

Description of the activity

Construction, extension, operation, and renewal of water collection, treatment and supply systems intended for human consumption based on the abstraction of natural resources of water from surface or ground water sources.

The economic activity includes abstraction of the water resource, necessary treatment to make the quality of water compliant with the applicable legislation and distribution to the population and food business operators in piped systems.

The economic activity does not cover irrigation and abstraction of water resources for desalination of marine or brackish water.

The economic activities in this category could be associated with several NACE codes, in particular E36.00 and F42.9, in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the sustainable use and protection of water and marine resources

1.

For the operation of an existing water supply system providing water supply in a sufficient and healthy quality to consumers, and contributing to water resource efficiency, the activity complies with the following criteria:

(a)

the water supply system complies with Directive (EU) 2020/2184, Commission Implementing Decision (EU) 2022/679 (3), and delegated and implementing acts adopted under that Directive;

(b)

the leakage level of the system is either calculated using the Infrastructure Leakage Index (ILI) (4) rating method and the threshold value equals to or is lower than 2,0, or is calculated using another appropriate method and the threshold value is established in accordance with Article 4 of Directive (EU) 2020/2184. That calculation is to be applied across the extent of a specified part of a water supply (distribution) network, i.e. at water supply zone level, district metered area(s) (DMAs) or pressure managed area(s) (PMAs);

(c)

the water supply systems include metering at consumer level, where water is delivered to a contractual delivery point of the consumers’ own drinking water distribution system.

2.

For the construction and operation of a new water supply system, or an extension of an existing water supply system that provides water to new areas or improves that water supply to existing areas, the activity complies with the following criteria:

(a)

the water supply system complies with Directive (EU) 2020/2184, including the requirements set out in Article 13(8) of that Directive, in Implementing Decision (EU) 2022/679, and in delegated and implementing acts adopted under that Directive;

(b)

the leakage level of the new or extension system is either calculated using the Infrastructure Leakage Index (ILI) rating method and the threshold value equals to or is lower than 1,5 or is calculated using another appropriate method and the threshold value is established in accordance with Article 4 of Directive (EU) 2020/2184. That calculation is to be applied across the extent of the affected and specified part of a water supply (distribution) network where the works are carried out, i.e. at water supply zone level, district metered area(s) (DMAs) or pressure managed area(s) (PMAs);

(c)

the water supply system includes metering at consumer level, where water is delivered to a contractual delivery point of the consumers’ own drinking water distribution system.

3.

For renewal of existing water supply systems, the activity complies with the following criteria:

(a)

the activity closes the gap by at least 20 % either between the current leakage level averaged over three years, calculated using the Infrastructure Leakage Index (ILI) rating method and an ILI of 1,5 or between the current leakage level averaged over three years, calculated using another appropriate method, and the threshold value established in accordance with Article 4 of Directive (EU) 2020/2184. The current leakage level averaged over three years is calculated across the extent of the affected and specified part of a water supply (distribution) network where the works are carried out, i.e. for the renewed water supply (distribution) network at district metered area(s) (DMAs) or pressure managed area(s) (PMAs);

(b)

a plan with goals and timelines for implementing metering at consumer level is issued by the water supplier and approved by the competent authorities.

4.

The water supply system has received the necessary permits for water abstraction. Those abstractions are included in the register for water abstractions, in accordance with Directive 2000/60/EC. An assessment of the actual potential for abstraction has been performed, to ensure that the available groundwater resource is not exceeded by the long-term annual average rate of abstraction or that the surface water body from which water is abstracted is not prevented from achieving good ecological status and ecological potential and the abstractions do not deteriorate status or potential of those water bodies.

The operation of the water supply system does not result in a deterioration of the status of the affected water bodies, nor does it prevent the water body from achieving good status and good ecological potential in accordance with Directive 2000/60/EC (5).

The information in relation to the abstractions, register of abstractions, status of water bodies and pressures and impacts on these is included in a river basin management plan, or, for activities in third countries, in an equivalent water use and protection management plan.

The activity does not involve construction of new supply systems or extensions of existing supply systems where they potentially affect one or more water bodies which are not in good status or potential for reasons related to quantity.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

N/A

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(4)

Transition to a circular economy

N/A

(5)

Pollution prevention and control

N/A

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

2.2.   Urban waste water treatment

Description of the activity

Construction, extension, upgrade, operation and renewal of urban waste water infrastructure including treatment plants, sewer networks, storm water management structures, connections to the waste water infrastructure, decentralised wastewater treatment facilities, including individual and other appropriate systems, and discharge structures for treated effluent. The activity may include innovative and advanced treatments, including the removal of micropollutants.

The economic activities in this category could be associated with several NACE codes, in particular E37.00 and F42.9, in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the sustainable use and protection of water and marine resources

1.

The waste water treatment system does not result in a deterioration of the good status and good ecological potential of any of the affected water bodies and it contributes significantly to the achievement of good status and potential of the affected water bodies, in accordance with Directive 2000/60/EC (6).

The information related to the status of water bodies, to the activities potentially impacting the status and to the measures taken to avoid or minimize such impacts, is included in a river basin management plan, or, for activities in third countries, in an equivalent water use and protection management plan. The waste water treatment system fulfils the discharge requirements set up by the competent local authorities. The waste water treatment system also contributes to achieve or maintain the good environmental status of marine waters in accordance with Directive 2008/56/EC, where applicable.

2.

The waste water treatment system has a collecting system and the provision of secondary treatment. The waste water treatment system complies with the relevant, size-specific requirements for discharges from urban waste water treatment plants set out in Directive 91/271/EEC, in particular Articles 3 to 8 and Article 13 of that Directive and Annex I to that Directive.

3.

Where the waste water treatment plant has a capacity of 100 000 population equivalent (p.e.) (7) or more, or of a daily inflow of a five-day biochemical oxygen demand (BOD5) load of more than 6 000 kg, it uses a sludge treatment such as anaerobic digestion or a technology with the same or a lower net energy demand (considering both energy generation and consumption), to stabilise the sludge.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

An assessment of the direct GHG emissions from the centralised waste water system, including collection (sewer network) and treatment, has been performed. The results are disclosed to investors and clients on demand (8).

For anaerobic digestion of sewage sludge, a monitoring plan is in place for methane leakage at the facility.

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(4)

Transition to a circular economy

N/A

(5)

Pollution prevention and control

Discharges to receiving waters meet the requirements laid down in Directive 91/271/EEC or as required by national provisions stating maximum permissible pollutant levels from discharges to receiving waters.

Measures have been implemented to avoid and mitigate harmful storm water overflows from the waste water collection system, which may include nature-based solutions, separate storm water collection systems, retention tanks and treatment of the first flush.

Sewage sludge is used in accordance with Council Directive 86/278/EEC (9) or as required by national law relating to the spreading of sludge on the soil or any other application of sludge on and in the soil.

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

2.3.   Sustainable urban drainage systems (SUDS)

Description of the activity

Construction, extension, operation and renewal of urban drainage systems facilities that mitigate pollution and flood hazards due to discharges of urban runoff and improve the urban water quality and quantity, by harnessing natural processes, such as infiltration and retention.

The activity includes SUDS promoting infiltration, evaporation and other stormwater treatments (including water butts, site layout and management, pervious pavements, filter drains, swales, filter strips, ponds, wetlands, soakaways, infiltration trenches and basins, green roofs, bioretention areas and stormwater pre-treatment devices, including sand filters or silt removal devices (10)) and other innovative systems.

The activity does not include nature-based solutions for flood and drought risk prevention and protection outside the urban environment (see Section 3.1 of this Annex).

The economic activities in this category could be associated with several NACE codes, in particular E36.00, E37.00 and F42.9 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the sustainable use and protection of water and marine resources

The activity leads to a retention of rainwater in a specific area or to an improvement in water quality by complying with the following criteria:

(a)

the construction and operation of the sustainable urban drainage system is integrated in the urban drainage and waste water treatment system, as demonstrated by means of a flood risk management plan or of other relevant urban planning tools. The activity contributes substantially to achieving the good status and good ecological potential of bodies of surface water and groundwater or to preventing the deterioration of bodies of water that already have good status and good potential, and is carried out to ensure compliance with Directive 2000/60/EC (11) and Directive 2008/56/EC;

(b)

information is provided on the percentage of a specific area, such as a residential or commercial area, where rainwater is not directly drained but retained within the area site;

(c)

the design of the sustainable urban drainage system achieves at least one of the following effects:

(i)

a quantified percentage of rainwater in the catchment area of the drainage system is retained and discharged with a staggered delay to the receiving water bodies;

(ii)

a quantified percentage of pollutants, including oil, heavy metals, hazardous chemicals and microplastics, is removed from urban runoff before discharge to the receiving water bodies;

(iii)

runoff peak flow, with a return period in line with the requirements of flood risk management plans or other local provisions in place, is reduced by a quantified percentage.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

N/A

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(4)

Transition to a circular economy

N/A

(5)

Pollution prevention and control

Depending on the origin of the received water and the different pollutant load, such as rainwater, rainfall run-offs from roofs, rainfall run-offs from roads, or stormwater, SUDS treat these waters before discharging or infiltrating the water into other environmental media.

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

The introduction of invasive alien species is prevented or their spread is managed in accordance with Regulation (EU) No 1143/2014 of the European Parliament and of the Council (12).

3.    Disaster risk management

3.1.   Nature-based solutions for flood and drought risk prevention and protection

Description of the activity

Planning, construction, extension, and operation of large-scale nature-based flood or drought management and coastal, transitional or inland aquatic ecosystem restoration measures contributing to preventing and protecting against flooding or droughts, and enhancing natural water retention, biodiversity and water quality.

These large-scale nature-based flood or drought management measures are applied in peri-urban, rural and coastal areas and are coordinated at river basin, regional or local, such as municipal, scale.

The economic activity includes:

(a)

river or lake related measures, including:

(i)

riparian or floodplain vegetation development or floodplain restoration, including re-connection of a river or lake with its floodplain or off-channel/lateral connectivity improvement to restore the retention capacity of the floodplain and its ecosystem’s function;

(ii)

re-meandering river courses by creating a new meandering course or reconnecting cut-off meanders or reconnecting a lake or group of lakes to a river;

(iii)

restoration of the longitudinal and lateral connectivity of a river (including oxbow lakes) by removing obsolete barriers, including dams and weirs or small barriers across or along the river;

(iv)

substitution of artificial riverbank or lake shore protection with nature-based solutions for bank or bed stabilisation as measures for river or lake restoration;

(v)

measures aimed to improve the diversification of river or lake depth and width to increase habitat variety;

(b)

wetland measures, including:

(i)

installation of ditches for rewetting, removal of drainage installations, replacement with installations that control the discharge, or setting back of dykes to enable flooding;

(ii)

implementation of constructed wetlands for water retention and treatment, both on land and along unvegetated water bodies, in rural and urban contexts;

(iii)

detention basins and retention ponds;

(c)

coastal measures, including:

(i)

conservation or restoration of coastal wetlands including mangrove forests or seagrass beds, which operate as a natural barrier;

(ii)

measures consisting of morphological changes and the removal of barriers to minimise the need of artificial beach nourishment and enhance the conditions of coastal ecosystems, justified on the basis of a sediment balance study;

(iii)

dune reinforcement and restoration, including the planting of dune vegetation;

(iv)

coastal reef conservation or restoration;

(v)

sand nourishments in the coastal zone;

(d)

river basin-wide management measures, including:

(i)

land management measures, including afforestation of reservoir catchments areas, spring or wellhead protection areas and river basin headwaters in general;

(ii)

restoration of natural infiltration for groundwater recharge by facilitating or augmenting soil retention capacity and infiltration;

(iii)

managed aquifer recharge (MAR) (13).

The activity does not include small-scale nature-based solutions to reduce flood and drought, including green and blue solutions applied in an urban setting, such as green roofs, swales, permeable surfaces and infiltration basins for urban storm water management purposes or Sustainable Urban Drainage Systems (see Section 2.3 of this Annex).

The economic activities in this category could be associated with NACE code F42.91 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the sustainable use and protection of water and marine resources

1.

The activity is a quantifiable and time bound measure to achieve the objectives for flood risk reduction in accordance with a flood risk management plan coordinated at river basin scale and developed under Directive 2007/60/EC of the European Parliament and of the Council (14). In relation to drought risk reduction, the activity is a quantifiable and time bound measure to achieve the objectives of Directive 2000/60/EC in accordance with a river basin management plan, or a drought management plan which is part of a river basin management plan.

For activities in third countries, the activity is identified as a flood risk reduction or a drought risk reduction measure either in a water use and protection management plan at river basin scale or in an integrated coastal zone management plan along a coast. Those plans pursue the objectives for the management of flood and drought risks to reduce adverse consequences, where applicable for human health, the environment, cultural heritage and economic activity.

2.

Environmental degradation risks related to preserving water quality and avoiding water stress and preventing deterioration of the status of the affected water bodies are identified and addressed to achieve good water status and good ecological potential as defined in Article 2, points (22) and (23), of Regulation (EU) 2020/852, in accordance with Directive 2000/60/EC, and in line with a river basin management plan, developed thereunder for the potentially affected water body or bodies, in consultation with relevant stakeholders.

Environmental degradation risks related to preserving marine environment are identified and addressed with the aim of achieving or maintaining good environmental status as defined in point 5 of Article 3 of Directive 2008/56/EC.

3.

The activity includes nature restoration or conservation actions that demonstrate specific ecosystem co-benefits, which contribute to achieving good water status or potential in accordance with Directive 2000/60/EC, good environmental status in accordance with Directive 2008/56/EC, and the nature restoration and conservation targets specified in the Communication from the Commission of 20 May 2020 on ‘EU Biodiversity Strategy for 2030’ (15). The activity contains clear and binding targets on nature restoration or conservation over a clearly defined timeframe and describes measures to achieve those targets. Local stakeholders are involved from the outset in the planning and design phase. The activity is based on the principles outlined by the IUCN Global Standard for nature-based solutions.

For activities in third countries, the activity takes into account National Biodiversity Strategies and Action Plans for the setting of nature conservation and restoration targets and for the description of the measures to achieve these targets.

4.

A monitoring programme is in place to evaluate the effectiveness of a nature-based solution scheme in improving the status of the affected water body, achieving the conservation and restoration targets and in adapting to changing climate conditions. The programme is reviewed following the periodic approach of the river basin management plans (including drought management plans, where relevant) and the flood risk management plans.

For activities in third countries, the programme is reviewed at least once per programming period and in any case every 10 years. The programme adheres to and aligns with the prevailing legal and regulatory provisions, being clear on where legal responsibilities and liabilities lie. The programme actively engages local communities and other affected stakeholders.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

The activity does not involve the degradation of land and marine environment with high carbon stock (16).

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(4)

Transition to a circular economy

Operators limit waste generation in processes related to construction and demolition and take into account best available techniques. At least 70 % (by weight) of the non-hazardous construction and demolition waste (excluding naturally occurring material referred to in category 17 05 04 in the European List of Waste established by Decision 2000/532/EC) generated on the construction site is prepared for reuse, recycling and other material recovery, including backfilling operations using waste to substitute other materials, in accordance with the waste hierarchy and the EU Construction and Demolition Waste Management Protocol (17). Operators use selective demolition to enable removal and safe handling of hazardous substances and facilitate reuse and high-quality recycling.

(5)

Pollution prevention and control

The use of pesticides is minimised and alternative approaches or techniques, which may include non-chemical alternatives to pesticides, are favoured, in accordance with Directive 2009/128/EC of the European Parliament and of the Council (18), with exception of occasions where the use of pesticides is needed to control outbreaks of pests and diseases. The activity minimises the use of fertilisers and does not use manure.

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

In addition, the following is to be ensured:

(a)

in the EU, in relation with Natura 2000 sites: the activity does not have significant effects on Natura 2000 sites in view of their conservation objectives on the basis of an appropriate assessment carried out in accordance with Article 6(3) of Council Directive 92/43/EEC (19);

(b)

in the EU, in any area: the activity is not detrimental to the recovery or maintenance of the populations of species protected under Directive 92/43/EEC and Directive 2009/147/EC of the European Parliament and of the Council (20) at a favourable conservation status. The activity is also not detrimental to the recovery or maintenance of the habitat types concerned and protected under Directive 92/43/EEC at a favourable conservation status;

(c)

in the EU, the introduction of invasive alien species is prevented, or their spread is managed in accordance with Regulation (EU) No 1143/2014;

(d)

outside of the EU, activities are conducted in accordance with applicable law related to the conservation of habitats, species and the management of invasive alien species.

4.    Information and communication

4.1.   Provision of IT/OT data-driven solutions for leakage reduction

Description of the activity

The activity manufactures, develops, installs, deploys, maintains, repairs or provides professional services, including technical consulting for design or monitoring, for information technology (IT) or operational technology (OT) data driven solutions (21) to control, manage, reduce and mitigate leakage in water supply systems (WSSs).

The economic activities in this category could be associated with several NACE codes, in particular E36, F42.99 and J62 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

An economic activity in this category is an enabling activity in accordance with Article 12(1), point (e), of Regulation (EU) 2020/852 where it complies with the technical screening criteria set out in this Section.

Technical screening criteria

Substantial contribution to the sustainable use and protection of water and marine resources

1.

The economic activity manufactures, develops, installs, deploys, maintains, repairs or provides professional services, including technical consulting for design or monitoring, to one or more of the following IT/OT data-driven solutions to control, manage, reduce and mitigate leakage in the new or existing water supply systems:

(a)

monitoring systems including holistic IT/OT suites/tools, or add-ons/extensions to such tools that provide identification, tracking and tracing water leakage;

(b)

IT/OT solutions, or add-ons/extensions to such tools, that provide controlling, managing and mitigating water leakage;

(c)

IT/OT solutions, or add-ons/extensions to such tools, that ensure interoperability of systems in district metered areas when new monitoring systems or IT/OT solutions are installed.

2.

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed to achieve good water status and good ecological potential as defined in Article 2, points (22) and (23), of Regulation (EU) 2020/852, in accordance with Directive 2000/60/EC (22) and in line with a water use and protection management plan, developed thereunder for the potentially affected water body or bodies, in consultation with relevant stakeholders.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

N/A

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(4)

Transition to a circular economy

Measures are in place to manage and recycle waste at the end-of life, including through decommissioning contractual agreements with recycling service providers, reflection in financial projections or official project documentation. These measures ensure that components and materials are segregated and treated to maximise recycling and reuse in accordance with the waste hierarchy, EU waste regulation principles and applicable regulations, in particular through the reuse and recycling of batteries and electronics and the critical raw materials therein. These measures also include the control and management of hazardous materials.

Preparation for re-use, recovery or recycling operations, or proper treatment, including the removal of all fluids and a selective treatment are performed in accordance with Annex VII to Directive 2012/19/EU of the European Parliament and of the Council (23).

(5)

Pollution prevention and control

The equipment used meets the requirements laid down in Directive 2009/125/EC of the European Parliament and of the Council (24) for servers and data storage products.

The equipment used does not contain the restricted substances listed in Annex II to Directive 2011/65/EU of the European Parliament and of the Council (25), except where the concentration values by weight in homogeneous materials do not exceed the maximum values listed in that Annex.

(6)

Protection and restoration of biodiversity and ecosystems

N/A


(1)  For activities in third countries, in accordance with applicable national law or international standards which pursue equivalent objectives of good water status and good ecological potential, through equivalent procedural and substantive rules, i.e. a water use and protection management plan developed in consultation with relevant stakeholders which ensures that (1) the impact of the activities on the identified status or ecological potential of potentially affected water body or bodies is assessed; and (2) deterioration or prevention of good status/ecological potential is avoided.

(2)  Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment (OJ L 26, 28.1.2012, p. 1).

(3)  Commission Implementing Decision (EU) 2022/679 of 19 January 2022 establishing a watch list of substances and compounds of concern for water intended for human consumption as provided for in Directive (EU) 2020/2184 of the European Parliament and of the Council (OJ L 124, 27.4.2022, p. 41).

(4)  The Infrastructure Leakage Index (ILI) is calculated as current annual real losses (CARL)/unavoidable annual real losses (UARL). The current annual real losses (CARL) represent the amount of water that is actually lost from the distribution network (i.e. not delivered to final users). The unavoidable annual real losses (UARL) take into consideration that there will always be some leakage in a water distribution network. The UARL is calculated based on factors such as the length of the network, the number of service connections and the pressure at which the network is operating.

(5)  For activities in third countries, in accordance with applicable national law or international standards which pursue equivalent objectives of good water status and good ecological potential, through equivalent procedural and substantive rules, i.e. a water use and protection management plan developed in consultation with relevant stakeholders which ensures that (1) the impact of the activities on the identified status or ecological potential of potentially affected water body or bodies is assessed; and (2) deterioration or prevention of good status/ecological potential is avoided.

(6)  For activities in third countries, in accordance with applicable national law or international standards which pursue equivalent objectives of good water status and good ecological potential, through equivalent procedural and substantive rules, i.e. a water use and protection management plan developed in consultation with relevant stakeholders which ensures that (1) the impact of the activities on the identified status or ecological potential of potentially affected water body or bodies is assessed; and (2) deterioration or prevention of good status/ecological potential is avoided.

(7)  Population equivalent (p.e.) means the organic biodegradable load having a five-day biochemical oxygen demand (BOD5) of 60 g of oxygen per day.

(8)  For example, in line with IPCC guidelines for national GHG inventories for waste water treatment, version of 27.6.2023 available at: https://www.ipcc-nggip.iges.or.jp/public/2019rf/pdf/5_Volume5/19R_V5_6_Ch06_Wastewater.pdf.

(9)  Council Directive 86/278/EEC of 12 June 1986 on the protection of the environment, and in particular of the soil, when sewage sludge is used in agriculture (OJ L 181, 4.7.1986, p. 6).

(10)  As defined in the document JRC Publications Repository – Best Environmental Management Practice for the Public Administration Sector (europa.eu).

(11)  For activities in third countries, in accordance with applicable national law or international standards which pursue equivalent objectives of good water status and good ecological potential, through equivalent procedural and substantive rules, i.e. a water use and protection management plan, developed in consultation with relevant stakeholders which ensures that (1) the impact of the activities on the identified status or ecological potential of potentially affected water body or bodies is assessed; and (2) deterioration or prevention of good status/ecological potential is avoided.

(12)  Regulation (EU) No 1143/2014 of the European Parliament and of the Council of 22 October 2014 on the prevention and management of the introduction and spread of invasive alien species (OJ L 317, 4.11.2014, p. 35).

(13)  Managed aquifer recharge is ‘the process of intentionally recharging an aquifer with water from a different place for subsequent recovery or for environmental benefits’.

(14)  Directive 2007/60/EC of the European Parliament and of the Council of 23 October 2007 on the assessment and management of flood risks (OJ L 288, 6.11.2007, p. 27).

(15)  Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, EU Biodiversity Strategy for 2030 – Bringing nature back into our lives, COM(2020) 380 final.

(16)  Land with high-carbon stock means wetlands, including peatland, and continuously forested areas within the meaning of Article 29(4)(a), (b) and (c) of Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).

(17)  EU Construction & Demolition Waste Management Protocol, September 2016: https://ec.europa.eu/docsroom/documents/20509/.

(18)  Directive 2009/128/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for Community action to achieve the sustainable use of pesticides (OJ L 309, 24.11.2009, p. 71).

(19)  Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora (OJ L 206, 22.7.1992, p. 7).

(20)  Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds (OJ L 20, 26.1.2010, p. 7).

(21)   ‘IT or OT data-driven solutions’ include connectable products, sensors, analytics and other software, and information and communication technologies (ICT) for the transmission, storage and display of data and system management.

(22)  For activities in third countries, in accordance with applicable national law or international standards which pursue equivalent objectives of good water status and good ecological potential, through equivalent procedural and substantive rules, i.e. a water use and protection management plan developed in consultation with relevant stakeholders which ensures that (1) the impact of the activities on the identified status or ecological potential of potentially affected water body or bodies is assessed; and (2) deterioration or prevention of good status/ecological potential is avoided.

(23)  Directive 2012/19/EU of the European Parliament and of the Council of 4 July 2012 on waste electrical and electronic equipment (WEEE) (OJ L 197, 24.7.2012, p. 38).

(24)  Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for the setting of ecodesign requirements for energy-related products (OJ L 285, 31.10.2009, p. 10).

(25)  Directive 2011/65/EU of the European Parliament and of the Council of 8 June 2011 on the restriction of the use of certain hazardous substances in electrical and electronic equipment (OJ L 174, 1.7.2011, p. 88).


Appendix A

Generic criteria for DNSH to climate change adaptation

I.   Criteria

The physical climate risks that are material to the activity have been identified from those listed in the table in Section II of this Appendix by performing a robust climate risk and vulnerability assessment with the following steps:

(a)

screening of the activity to identify which physical climate risks from the list in Section II of this Appendix may affect the performance of the economic activity during its expected lifetime;

(b)

where the activity is assessed to be at risk from one or more of the physical climate risks listed in Section II of this Appendix, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)

an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)

for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)

for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10- to 30-year climate projections scenarios for major investments.

The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications, and open source (3) or paying models.

For existing activities and new activities using existing physical assets, the economic operator implements physical and non-physical solutions (‘adaptation solutions’), over a period of time of up to five years, that reduce the most important identified physical climate risks that are material to that activity. An adaptation plan for the implementation of those solutions is drawn up accordingly.

For new activities and existing activities using newly-built physical assets, the economic operator integrates the adaptation solutions that reduce the most important identified physical climate risks that are material to that activity at the time of design and construction and has implemented them before the start of operations.

The adaptation solutions implemented do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; are consistent with local, sectoral, regional or national adaptation strategies and plans; and consider the use of nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible.

II.   Classification of climate-related hazards (6)

 

Temperature-related

Wind-related

Water-related

Solid mass-related

Chronic

Changing temperature (air, freshwater, marine water)

Changing wind patterns

Changing precipitation patterns and types (rain, hail, snow/ice)

Coastal erosion

Heat stress

 

Precipitation or hydrological variability

Soil degradation

Temperature variability

 

Ocean acidification

Soil erosion

Permafrost thawing

 

Saline intrusion

Solifluction

 

 

Sea level rise

 

 

 

Water stress

 

Acute

Heat wave

Cyclone, hurricane, typhoon

Drought

Avalanche

Cold wave/frost

Storm (including blizzards, dust and sandstorms)

Heavy precipitation (rain, hail, snow/ice)

Landslide

Wildfire

Tornado

Flood (coastal, fluvial, pluvial, ground water)

Subsidence

 

 

Glacial lake outburst

 


(1)  Future scenarios include Intergovernmental Panel on Climate Change representative concentration pathways RCP2.6, RCP4.5, RCP6.0 and RCP8.5.

(2)  Assessment Reports on Climate Change: Impacts, Adaptation and Vulnerability, published periodically by the Intergovernmental Panel on Climate Change (IPCC), the United Nations body for assessing the science related to climate change produces, https://www.ipcc.ch/reports/.

(3)  Such as Copernicus services managed by the European Commission.

(4)  Nature-based solutions are defined as ‘solutions that are inspired and supported by nature, which are cost-effective, simultaneously provide environmental, social and economic benefits and help build resilience. Such solutions bring more, and more diverse, nature and natural features and processes into cities, landscapes and seascapes, through locally adapted, resource-efficient and systemic interventions’. Therefore, nature-based solutions benefit biodiversity and support the delivery of a range of ecosystem services (version of 27.6.2023: https://ec.europa.eu/research/environment/index.cfm?pg=nbs).

(5)  See Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Green Infrastructure (GI) – Enhancing Europe’s Natural Capital (COM(2013) 249 final).

(6)  The list of climate-related hazards in this table is non-exhaustive, and constitutes only an indicative list of most widespread hazards that are to be taken into account as a minimum in the climate risk and vulnerability assessment.


Appendix C

Generic criteria for DNSH to pollution prevention and control regarding use and presence of chemicals

The activity does not lead to the manufacture, placing on the market or use of:

(a)

substances, whether on their own, in mixtures or in articles, listed in Annexes I or II to Regulation (EU) 2019/1021 of the European Parliament and of the Council (1), except in the case of substances present as an unintentional trace contaminant;

(b)

mercury and mercury compounds, their mixtures and mercury-added products as defined in Article 2 of Regulation (EU) 2017/852 of the European Parliament and of the Council (2);

(c)

substances, whether on their own, in mixture or in articles, listed in Annexes I or II to Regulation (EC) No 1005/2009 of the European Parliament and of the Council (3);

(d)

substances, whether on their own, in mixtures or in articles, listed in Annex II to Directive 2011/65/EU, except where there is full compliance with Article 4(1) of that Directive;

(e)

substances, whether on their own, in mixtures or in an article, listed in Annex XVII to Regulation (EC) No 1907/2006 of the European Parliament and of the Council (4), except where there is full compliance with the conditions specified in that Annex;

(f)

substances, whether on their own, or in mixtures or in an article, in a concentration above 0,1 % weight by weight (w/w), and meeting the criteria laid down in Article 57 of Regulation (EC) No 1907/2006 and that were identified in accordance with Article 59(1) of that Regulation for a period of at least 18 months, except if it is assessed and documented by the operators that no other suitable alternative substances or technologies are available on the market, and that they are used under controlled conditions (5).

In addition, the activity does not lead to the manufacture, presence in the final product or output, or placing on the market, of other substances, whether on their own, or in mixtures or in an article, in a concentration above 0,1 % weight by weight (w/w), that meet the criteria of Regulation (EC) No 1272/2008 for one of the hazard classes or hazard categories mentioned in Article 57 of Regulation (EC) No 1907/2006, except if it is assessed and documented by the operators that no other suitable alternative substances or technologies are available on the market, and that they are used under controlled conditions (6).


(1)  Regulation (EU) 2019/1021 of the European Parliament and of the Council of 20 June 2019 on persistent organic pollutants (OJ L 169, 25.6.2019, p. 45).

(2)  Regulation (EU) 2017/852 of the European Parliament and of the Council of 17 May 2017 on mercury, and repealing Regulation (EC) No 1102/2008 (OJ L 137, 24.5.2017, p. 1).

(3)  Regulation (EC) No 1005/2009 of the European Parliament and of the Council of 16 September 2009 on substances that deplete the ozone layer (OJ L 286, 31.10.2009, p. 1).

(4)  Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), establishing a European Chemicals Agency, amending Directive 1999/45/EC and repealing Council Regulation (EEC) No 793/93 and Commission Regulation (EC) No 1488/94 as well as Council Directive 76/769/EEC and Commission Directives 91/155/EEC, 93/67/EEC, 93/105/EC and 2000/21/EC (OJ L 396, 30.12.2006, p. 1).

(5)  The Commission will review the exceptions from the prohibition from manufacturing, placing on the market or use of the substances referred to in point (f) once it will have published horizontal principles on essential use of chemicals.

(6)  The Commission will review the exceptions from the prohibition from manufacture, presence in the final product or output, or placing on the market of the substances referred to in this paragraph once it will have published horizontal principles on essential use of chemicals.


Appendix D

Generic criteria for DNSH to protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening (1) has been completed in accordance with Directive 2011/92/EU (2).

Where an EIA has been carried out, the required mitigation and compensation measures for protecting the environment are implemented.

For sites/operations located in or near biodiversity-sensitive areas (including the Natura 2000 network of protected areas, UNESCO World Heritage sites and Key Biodiversity Areas, as well as other protected areas), an appropriate assessment (3), where applicable, has been conducted and based on its conclusions the necessary mitigation measures (4) are implemented.


(1)  The procedure through which the competent authority determines whether projects listed in Annex II to Directive 2011/92/EU is to be made subject to an environmental impact assessment (as referred to in Article 4(2) of that Directive).

(2)  For activities in third countries, in accordance with equivalent applicable national law or international standards requiring the completion of an EIA or screening, for example, IFC Performance Standard 1: Assessment and Management of Environmental and Social Risks.

(3)  In accordance with Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds (OJ L 20, 26.1.2010, p. 7) and Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora (OJ L 206, 22.7.1992, p. 7). For activities located in third countries, in accordance with equivalent applicable national law or international standards, that aim at the conservation of natural habitats, wild fauna and wild flora, and that require to carry out (1) a screening procedure to determine whether, for a given activity, an appropriate assessment of the possible impacts on protected habitats and species is needed; (2) such an appropriate assessment where the screening determines that it is needed, for example IFC Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources.

(4)  Those measures have been identified to ensure that the project, plan or activity will not have any significant effects on the conservation objectives of the protected area.


ANNEX II

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

Table of Contents

1.

Manufacturing 28

1.1.

Manufacture of plastic packaging goods 28

1.2.

Manufacture of electrical and electronic equipment 32

2.

Water supply, sewerage, waste management and remediation activities 39

2.1.

Phosphorus recovery from waste water 39

2.2.

Production of alternative water resources for purposes other than human consumption 40

2.3.

Collection and transport of non-hazardous and hazardous waste 42

2.4.

Treatment of hazardous waste 44

2.5.

Recovery of bio-waste by anaerobic digestion or composting 46

2.6.

Depollution and dismantling of end-of-life products 47

2.7.

Sorting and material recovery of non-hazardous waste 49

3.

Construction and real estate activities 51

3.1.

Construction of new buildings 51

3.2.

Renovation of existing buildings 55

3.3.

Demolition and wrecking of buildings and other structures 59

3.4.

Maintenance of roads and motorways 61

3.5.

Use of concrete in civil engineering 63

4.

Information and communication 67

4.1.

Provision of IT/OT data-driven solutions 67

5.

Services 71

5.1.

Repair, refurbishment and remanufacturing 71

5.2.

Sale of spare parts 73

5.3.

Preparation for re-use of end-of-life products and product components 74

5.4.

Sale of second-hand goods 76

5.5.

Product-as-a-service and other circular use- and result-oriented service models 79

5.6.

Marketplace for the trade of second-hand goods for reuse 81

1.    Manufacturing

1.1.   Manufacture of plastic packaging goods

Description of the activity

Manufacture of plastic packaging goods.

The economic activities in this category could be associated with NACE code C22.22 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

The activity complies with one of the following criteria:

(a)

use of circular feedstock: until 2028, at least 35 % of the packaging product by weight consists of recycled post-consumer material for non-contact sensitive packaging and at least 10 % for contact sensitive packaging (1). From 2028, at least 65 % of the packaging product by weight consists of recycled post-consumer material for non-contact sensitive packaging and at least 50 % for contact sensitive packaging;

(b)

design for reuse: the packaging product has been designed to be reusable within a reuse system (2) and fulfils the requirements for the use of circular feedstock, as set in point 1(a) with 35 % and 10 % targets for recycled feedstock applying as of 2028 and 65 % and 50 % targets applying as of 2032. The system for reuse is established in a way that ensures the possibility of reuse in a closed-loop or open-loop system which:

(i)

provides a defined governance structure and keeps records on the number of fillings, re-uses, rejects, collection rate, amount of reusable packaging placed on the market and units of sales or equivalent units;

(ii)

provides rules on the product scope and packaging formats, as well as on the collection of reusable packaging, including incentives for consumers;

(iii)

ensures open and equal access and conditions for all economic operators wishing to become part of it, including proporitionate distribution of costs and benefits for all system participants (3);

(c)

use of bio-waste feedstock: at least 65 % of the packaging product by weight consists of sustainable bio-waste feedstock (4). Agricultural based bio-waste used for the manufacture of plastic packaging complies with the criteria laid down in Article 29, paragraphs 2 to 5, of Directive (EU) 2018/2001. Forest based bio-waste used for the manufacture of plastic packaging complies with the criteria laid down in Article 29, paragraphs 6 and 7, of that Directive.

2.

The packaging product is recyclable in practice and at scale. The packaging product demonstrates recyclability in practice and at scale by complying with all of the criteria specified below (5).

2.1.

The unit of packaging (6) is designed to be recyclable, so that it can be sorted and recycled at the end of life and that the resulting recycled material is of such quality that it can be used again in packaging applications. Colours, additives or design elements of the packaging that contaminate the recycling stream once packaging becomes waste and substantially reduce the quality of the resulting recyclates are not used. At best, the unit of packaging is made from the same material (mono-material solution) or, as a minimum, the materials present in the packaging are compatible with the existing recycling streams and sorting processes. Where all packaging components are not compatible with the existing recycling streams and processes, the packaging must allow for separation of its non-recyclable components, either manually by consumers or within the existing sorting and recycling processes.

2.2.

In addition, the packaging is evaluated as recyclable at scale where it complies with one of the following criteria:

(a)

collection, sorting, and recycling is proven to work in practice and at scale: the plastic packaging material of the unit of packaging achieves the minimum recycling rate (7) target for plastic packaging waste set by the Directive 94/62/EC, either in the national jurisdiction where the packaging is put on the market, regardless of the jurisdiction’s size, or in Member States that collectively represent at least 100 million inhabitants;

(b)

collection, sorting and recycling is proven to be on track to work in practice and at scale: sorting and recycling processes are available at the Technology Readiness of Level 9 as defined by ISO 16290:2013 (8).

3.

When the packaging material is produced, the following substances presenting hazardous properties specified below are not added to the feedstock:

(a)

substances meeting the criteria laid down in Article 57 and identified in accordance with Article 59(1) of Regulation (EC) No 1907/2006;

(b)

substances meeting the criteria for classification as carcinogenic category 1 or 2 in accordance with Regulation (EC) No 1272/2008 of the European Parliament and the Council (9);

(c)

substances meeting the criteria for classification as mutagenic category 1 or 2 in accordance with Regulation (EC) No 1272/2008;

(d)

substances meeting the criteria for classification as toxic for reproduction category 1 or 2 in accordance with Regulation (EC) No 1272/2008;

(e)

substances meeting the criteria for classification as endocrine disruption for human health category 1 or as endocrine disruption for environment category 1 in accordance with Regulation (EC) No 1272/2008;

(f)

substances meeting the criteria for classification as persistent, bioaccumulative and toxic in accordance with Regulation (EC) No 1272/2008;

(g)

substances meeting the criteria for classification as very persistent and very bioacumulative in accordance with Regulation (EC) No 1272/2008;

(h)

substances meeting the criteria for classification as persistent, mobile and toxic in accordance with Regulation (EC) No 1272/2008;

(i)

substances meeting the criteria for classification as very persistent and very mobile in accordance with Regulation (EC) No 1272/2008;

(j)

substances meeting the criteria for classification as respiratory sensitiser category 1 in accordance with Regulation (EC) No 1272/2008, except enzymes;

(k)

substances meeting the criteria for classification as skin sensitiser category 1 in accordance with Regulation (EC) No 1272/2008;

(l)

substances meeting the criteria for classification as having chronic hazard to the aquatic environment category 1, 2, 3 or 4 in accordance with Regulation (EC) No 1272/2008;

(m)

substances meeting the criteria for classification as hazardous to the ozone layer in accordance with Regulation (EC) No 1272/2008;

(n)

substances meeting the criteria for classification as having specific target organ toxicity – repeated exposure category 1 or 2 in accordance with Regulation (EC) No 1272/2008;

(o)

substances meeting the criteria for classification as having specific target organ toxicity – single exposure category 1 or 2 in accordance with Regulation (EC) No 1272/2008.

4.

Compostable plastic materials in packaging applications are used only for very lightweight plastic carrier bags; tea, coffee or other beverage bags; tea, coffee or other beverage pads and sticky labels attached to fruit and vegetables.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

For plastic manufactured from chemical recycled feedstock, life-cycle GHG emissions of the manufactured plastic, excluding any calculated credits from the production of fuels, are lower than the life-cycle GHG emissions of the equivalent plastic in primary form manufactured from fossil fuel feedstock. Life-cycle GHG emissions are calculated using Commission Recommendation (EU) 2021/2279 (10) or, alternatively, using ISO 14067:2018 (11) or ISO 14064-1:2018 (12). Quantified life-cycle GHG emissions are verified by an independent third party.

Life-cycle GHG emissions of plastic manufactured from sustainable bio-waste feedstock are lower than the life-cycle GHG emissions of the equivalent plastics in primary form manufactured from fossil fuel feedstock. Life-cycle GHG emissions are calculated using Commission Recommendation 2013/179/EU (13) or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018. Quantified life-cycle GHG emissions are verified by an independent third party.

(2)

Climate change adaptation

The activity complies with criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

The activity complies with criteria set out in Appendix C to this Annex.

For the products manufactured from plastic materials in primary form, emissions from the manufacturing of those plastic materials are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the relevant best available techniques (BAT) conclusions, including:

(a)

the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector (14), for emissions to water where relevant emission thresholds apply;

(b)

the best available techniques (BAT) conclusions for common waste gas management and treatment systems in the chemical sector (15) for emissions to air of new installations (or for existing installations within 4 years of the BATC publication) where relevant conditions apply;

(c)

the Best Available Techniques Reference Document (BREF) for the Production of Polymers (16) for the production processes under conditions not covered by the BATC mentioned above;

(d)

the Best Available Techniques Reference Document (BREF) for the Large Volume Inorganic Chemicals – Solids and Others industry (17);

(e)

the Best Available Techniques Reference Document (BREF) for the manufacture of Large Volume Inorganic Chemicals – Ammonia, Acids and Fertilisers (18);

(f)

the Best Available Techniques Reference Document (BREF) for Manufacture of Organic Fine Chemicals (19);

(g)

the Best Available Techniques Reference Document (BREF) for the production of speciality inorganic chemicals (SIC) (20).

No significant cross-media effects occur.

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with criteria set out in Appendix D to this Annex.

1.2.   Manufacture of electrical and electronic equipment

Description of the activity

Manufacturing of electrical and electronic equipment for industrial, professional and consumer use.

This activity includes manufacturing of rechargeable and non-rechargeable portable batteries (21). The activity does not include manufacturing of other battery categories.

The economic activities in this category could be associated with several NACE codes, in particular C26 and C27 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

Where the economic activity manufactures electrical and electronic equipment complying with all EU Ecolabel criteria applicable to that specific product category, in accordance with Regulation (EC) No 66/2010 of the European Parliament and of the Council (22), the operator of the activity provides the proof of compliance with all requirements listed, in accordance with the verification criteria foreseen by the EU Ecolabel criteria.

2.

Where no product-specific EU Ecolabel criteria exist, or the operator of the activity has not used them, the economic activity manufacturing electrical and electronic equipment complies with all of the following criteria applicable to a relevant product:

2.1.

Design for long lifetime

2.1.1.

Where the product contains software that requires updates, all versions of software components, software support and software/firmware, including updates, are made available to users for the lifetime of an item as defined under Directive 2009/125/EC and implementing acts adopted under that Directive. Where the availability of software updates is not regulated, the availability is at least eight years. Functionality and lifetime of the product are not reduced through software updates or lack of software updates.

2.1.2.

Products incorporating portable batteries ensure that those batteries are readily removable and replaceable by the end-user at any time during the lifetime of the product, without requiring the use of specialised tools (unless the tools are provided free of charge with the product), proprietary tools, thermal energy, or solvents to disassemble, except when batteries are designed in such way to make battery removable and replaceable only by independent professionals in the following case:

(a)

appliances specifically designed to operate primarily in an environment that is regularly subject to splashing water, water streams or water immersion and that are intended to be washable or rinseable and where it is required to ensure the safety of the user and the appliance;

(b)

professional medical imaging and radiotherapy devices, as defined in Article 2(1) of Regulation (EU) 2017/745 of the European Parliament and of the Council (23), and in vitro diagnostic medical devices, as defined in Article 2(2) of Regulation (EU) 2017/746 of the European Parliament and of the Council (24);

(c)

where continuity of power supply is necessary and a permanent connection between the product and the respective portable battery is required to ensure the safety of the user and of the appliance or, for products that collect and supply data as their main function, for data integrity reasons.

2.1.3.

Software is not used in order to negatively affect the circularity of the product, including replacement of a portable battery, and correct battery replacement does not degrade the functioning of the product.

2.2.

Design for repair and guarantee

2.2.1

Where a product-specific repair scoring systems is established in accordance with the Union Law, the operator of the activity ensures that products have the highest populated reparability class (25).

2.2.2.

The operator of the activity provides access to information to professional repairers (26) throughout the lifetime of the product. The information includes the following elements, where applicable:

(a)

the unequivocal appliance identification;

(b)

a disassembly map or exploded view;

(c)

list of necessary repair and test equipment;

(d)

technical details of the components and diagnosis information, such as minimum and maximum theoretical values for measurements;

(e)

wiring and connection diagrams;

(f)

diagnostic fault and error codes, including manufacturer-specific codes;

(g)

data records of reported failure incidents stored on the product;

(h)

technical manual of instructions for repair of the product, including simple electronic board diagrams, that includes marking of the individual steps;

(i)

instructions for software and firmware, including reset software;

(j)

information on how to access data records of reported failure incidents stored on the device, where applicable, with the exception of personal identifiable information such as related to user behaviour and location information.

2.2.3.

Key spare parts (27), whether new or used, such as motors, batteries, circuit boards and any part or component essential to the good functioning of the product, are available to professional repairers and end-users, after placing the last unit of the model on the market, for one additional year compared to the requirements on the availability of spare parts under Directive 2009/125/EC and implementing acts adopted under that Directive. Where the availability of spare parts for the relevant products is not regulated, key spare parts are available for at least eight years after placing the last unit of the model on the market.

2.2.4.

Where there are no significant health and safety risks presented by the product repair, the operator of the activity provides clear disassembly and repair instructions, including through hard or soft copy or a video, and make them publicly available for the lifetime of the product, to enable a non-destructive disassembly of products for the purpose of replacing key components or parts for upgrades or repairs. Where significant safety concerns connected to the repair of the product exist, the operator ensures access to independent certified professional repairers. The operator’s website indicates the process for professional repairers to register for access to relevant information or share the information on a publicly available free access website.

2.2.5.

For electrical and electronic equipment designed for consumer use, the operator of the activity provides commercial guarantee for minimum of 3 years and in line with requirements under Article 17 of Directive (EU) 2019/771 of the European Parliament and of the Council (28) at no extra cost.

2.3.

Design for reuse and remanufacturing

2.3.1.

Where the products are able to store data, and the data is encrypted, a software function that resets the device to its factory settings and erases by default the encryption key is required.

2.3.2.

Where products can transfer stored data, the stored data can be easily and fully transferred to another product, securing data privacy and confidentiality of the data.

2.4.

Design for dismantling

2.4.1.

Information on product’s end-of-life management is publicly available for the lifetime of the product, including all information required under Directive 2012/19/EU. For each type of new product placed for the first time on the Union market, the operator of the activity shares, free of charge, relevant information with centres which prepare for re-use and treatment and recycling facilities through Information for Recyclers Platform (29) or through another relevant channel in accordance with Article 15(1) of Directive 2012/19/EU. Dismantling information includes the sequence of dismantling steps, tools or technologies needed to access the targeted component.

2.4.2.

For electrical and electronic equipment containing printed circuit boards, hard disc drives (HDDs), electric motors, permanent magnets, batteries, fluorescent powders, or any other components identified in Union legislation to be of high critical raw materials recovery potential, the information on product’s end-of-life management referred to under point 2.4.1 includes an indication of the critical raw materials (30) typically contained in the components, information on the location of those components, and on the steps required for their separate removal.

2.4.3.

The activity provides tracking information on substances identified as substance of very high concern (SVHC) and for substances meeting the criteria for substance of very high concern (SVHC), by complying with at least one of the two disclosure frameworks listed below:

(a)

product information on substances is available publicly, in SCIP database (31) for products that contain > 0,1 % (w/w) of an identified substance of very high concern or in a specific public tool provided by company;

(b)

product information on substances is available publicly, following IEC62474 (32) (for electrical and electronic equipment) and future IEC82474-1 (33) (dual logo project).

2.5.

Design for recyclability

The economic activity manufactures products with demonstrated superior recyclability. Assessment of recyclability relies on EN 45555:2019 (34) or on any product-specific EN standard relying on EN 45555:2019. The economic activity complies with the following requirements:

(a)

single polymer or recyclable polymer blends are used;

(b)

plastic enclosures do not contain moulded-in or glue-on metal;

(c)

materials which cannot be recycled together are easy to access and have the ability to be separated;

(d)

improving recyclability does not harm the durability of the system itself;

(e)

parts of the product containing substances, mixtures and components that are to be removed during depollution are easy to identify, such as through marking for sorting provided by the manufacturer, and visible on the product;

(f)

printed circuit boards, hard disc drives (HDDs), electric motors, permanent magnets, batteries, fluorescent powders, or any other components identified in Union legislation to be of high critical raw materials recovery potential are easy to access and to remove from the product;

(g)

parts that reduce the recyclability according to the reference scenario for the end-of-life treatment of products, such as plastic using certain fillers or certain flame retardants, are easy to access and remove;

(h)

joining, fastening or sealing techniques do not prevent the safe and readily achievable removal of the components specified in Directive 2012/19/EU or in Regulation (EU) 2023/1542 of the European Parliament and of the Council on batteries and waste batteries (35), where present.

2.6.

Proactive substitution of hazardous substances

2.6.1.

The economic activity manufactures products which demonstrate proactive substitution of hazardous substances.

2.6.2.

The product does not contain substances of very high concern included in Annex XIV to Regulation (EC) No 1907/2006.

2.6.3.

Exemptions to Restrictions of Hazardous Substances are limited to the following cases:

(a)

lead in high melting temperature type solders covered by the exemption entry 7(a) in Annex III to Directive 2011/65/EU;

(b)

electrical and electronic components containing lead in a glass or ceramic covered by the exemption entries under 7(c) in Annex III to Directive 2011/65/EU.

2.6.4.

The hazardous substances specified in table below are not introduced to or formed in the specified sub-assemblies and component parts at or above the specified concentration limit.

Substance group

Scope of restriction

Concentration limits (where applicable)

(i)

Polymer stabilisers, colourants and contaminant

The following organotin stabiliser compounds are not present in external cables:

 

Dibutyltin oxide

 

Dibutyltin diacetate

 

Dibutyltin dilaurate

 

Dibutyltin maleate

 

Dioctyl tin oxide

 

Dioctyl tin dilaurate

 

External housing do not contain the following colourants: Azo dyes that may cleave to the carcinogenic aryl amines listed in Appendix 8 of the Regulation (EC) No 1907/2006, or Colourant compounds included in the IEC 62474 declarable substances list.

N/A

(ii)

Polymer stabilisers, colourants and contaminant

Polycyclic Aromatic Hydrocarbons (PAHs) are not present at concentrations greater than or equal to individual and sum total concentration limits in any external plastic or man-made rubber surfaces.

The presence and concentration of the following PAHs is verified:

PAHs restricted by the Regulation (EC) No 1907/2006:

 

Benzo[a]pyrene Benzo[e]pyrene

 

Benzo[a]anthracene

 

Chrysen

 

Benzo[b]fluoranthene

 

Benzo[j]fluoranthene

 

Benzo[k]fluoranthene

 

Dibenzo[a,h]anthracene

 

Additional PAHs subject to restriction:

 

Acenaphthene

 

Acenaphthylene

 

Anthracene

 

Benzo[ghi]perylene

 

Fluoranthene

 

Fluorene

 

Indeno[1,2,3-cd]pyrene

 

Naphthalene

 

Phenanthrene

 

Pyrene

The individual concentration limits for PAHs restricted under Regulation (EC) No 1907/2006 is 1 mg/kg

The sum total concentration limit for the 18 listed PAHs is not greater than 10 mg/kg

(iii)

Biocidal products

Biocidal products intended to provide an anti-bacterial function

Derogation for materials sold in hospitals and for healthcare applications

N/A

(v)

Glass fining agents

Arsenic and its compounds is not used in the manufacturing of LCD display unit glass and screen cover glass.

0,0050 % w/w

(vi)

Chlorine-based plastics

Plastic parts > 25 g do not contain chlorinated polymers.

Note: For this specific sub-requirement, plastic cable housing is not considered as a ‘plastic part’.

N/A

2.6.5.

The products do not contain halogen beyond the limits which can be detected in line with the measurement specified in existing standards for all its components: cables (EN IEC 60754-3), plastic parts (EN50642), electronic components (EN IEC 61249-2-21 or JS709C), consumables (EN IEC 61249-2-21 and IPC J-STD-004B).

2.6.6.

The products do not contain fluor gas.

2.6.7.

Use of Tetrabromobisphenol A (TBBPA) is allowed as reactive component for Printed Circuit Boards only.

2.7.

Information to customers:

2.7.1.

The operator of the activity provides information to customers regarding options to use the product considering the environmental benefits, in particular the lifetime extension of the products associated with the different modes of the product.

2.7.2.

The operator of the activity provides information to customers regarding the buy-back, sell-back and take-back options for the product, information on separate collection and collection points for waste electrical and electronic equipment (WEEE), as well as information on re-use options. For portable batteries, information is provided on separate collection and collection points for waste batteries.

2.7.3.

For electrical and electronic equipment, the operator of the activity appropriately marks the product with the symbol indicating separate collection for waste electrical and electronic equipment as set out in Annex IX to the Directive 2012/19/EU. The operator of the activity provides the consumer with relevant information on costs of collection, treatment and disposal of the product in an environmentally sound way as set out in Article 14(1) of that Directive.

2.8.

Producer responsibility:

2.8.1.

The operator of the activity, when placing electrical and electronic equipment on the market of the Member States, establishes an individual extended producer responsibility scheme or participates in collective extended producer responsibility schemes in all the Member States in which the product is placed on the market, in line with Directive 2012/19/EU. The financial contributions to the collective schemes are based on eco modulation and cover the costs of separate collection and treatment of WEEE.

2.8.2.

For portable batteries, the producer establishes waste portable battery take-back and collection systems, which include collection points, in all Member States in which the product is placed on the market.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

Where the manufactured product contains refrigerants, it complies with the GWP performance laid down in the Regulation (EU) No 517/2014 of the European Parliament and of the Council (36). The activity does not manufacture products containing Sulfur hexafluoride (SF6).

Where applicable, the manufactured product does not score lower than the third significantly populated class (37) of energy efficiency in accordance with Regulation (EU) 2017/1369 of the European Parliament and of the Council (38) and delegated acts adopted under that Regulation.

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

The activity complies with criteria set out in Appendix C to this Annex.

For manufacturing of portable batteries, batteries comply with the applicable sustainability rules on the placing on the market of batteries in the Union, including restrictions on the use of hazardous substances in batteries, including Regulation (EC) No 1907/2006 and Directive 2006/66/EC of the European Parliament and of the Council (39).

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

2.    Water supply, sewerage, waste management and remediation activities

2.1.   Phosphorus recovery from waste water

Description of the activity

Construction, upgrade, operation and renewal of facilities for recovery of phosphorus from urban waste water treatment plants (WWTP) (aqueous phase and sludge) and from materials (i.e. ashes) after thermal oxidation (i.e. incineration) of sewage sludge.

The economic activity only includes the facilities and processes that make phosphorus recovery possible, not the previous steps, such as waste water treatment or incineration facilities.

The economic activities in this category could be associated with several NACE codes, in particular E37.00, E38.32 and F42.99 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

For the process integrated at the waste water treatment plant, covering typically phosphorus salts such as struvite–magnesium ammonium phosphate (NH4MgPO4•6H2O), the phosphorus recovery process recovers at least 15 % of the incoming phosphorus load. Only the harvested material, such as struvite, is counted for the calculation of this threshold.

2.

For down-stream recovery after sewage sludge thermal oxidation with chemical phosphorus recovery or after sewage sludge thermal oxidation with thermo chemical phosphorus recovery, the process recovers at least 80 % of the incoming phosphorus load from the respective input material, such as sewage sludge ash.

3.

The phosphorus extracted out of the system is used either as a component material in a fertilising product compliant with Regulation (EU) 2019/1009 of the European Parliament and of the Council (40) or national fertiliser legislation where it is more stringent, or in another field of application where the recovered phosphorus fulfils specified functions in accordance with the respective regulations.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

N/A

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

Key performance parameters, including a mass balance for phosphorus pentoxide (P2O5) and key environmental parameters in relation to the identity and quantity of emissions and waste streams generated, are monitored.

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

2.2.   Production of alternative water resources for purposes other than human consumption

Description of the activity

Construction, extension, operation and renewal of facilities for producing reclaimed water (41), facilities for harvesting rain and storm water and facilities for collection and treatment of grey water (42).

These alternative water resources are used to replace water from abstraction or from the drinking water supply systems and can be used for aquifer recharge, irrigation, industrial reuse, recreation and any other municipal use.

The economic activity only includes the facilities and processes that make it possible for the water to be reused, such as facilities for recharging aquifers or surface water storages, and does not include the previous steps, such as primary and secondary steps in the waste water treatment plant or the subsequent steps, necessary for the final reuse of these alternative water resources, such as irrigation systems.

The economic activity does not include desalination (see Section 5.13 of Annex II to Delegated Regulation (EU) 2021/2139).

This economic activity does not include supply of water for the purpose of human consumption (see Section 2.1 of Annex I).

The economic activities in this category could be associated with several NACE codes, in particular E37.00 and F42.9 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

For production of reclaimed water, the activity complies with the following criteria:

(a)

the reclaimed water is suitable for reuse. For use in agriculture, the reclaimed water complies with EU requirements, such as those set out in Regulation (EU) 2020/741 of the European Parliament and of the Council (43) and national legislation. For uses other than agricultural irrigation, the final quality of reclaimed water is fit for purpose and compliant with existing national legislation and standards;

(b)

the water reuse project has been authorised by the competent authority, in the framework of integrated water management, having as a priority taken into account viable water demand management and efficiency measures, in consultation with the water management authorities. This may be proven by its inclusion in a water management plan or drought management plan. For reuse in agriculture, the assessments of the environmental risks, including those related to the quantitative status of water bodies, are fully taken into account in the risk management plans, required by Regulation (EU) 2020/741.

2.

For facilities for harvesting rain and storm water, the activity complies with the following criteria:

(a)

the resource (rain or storm water) is segregated at source and does not include waste water;

(b)

the water is suitable for use after proper treatment depending on the level of contamination and subsequent use;

(c)

the facility is included in an instrument of urban planning or permitting, such as Master Plan or municipal planning.

3.

For facilities for collection and treatment of grey waters, the activity complies with the following criteria:

(a)

the resource (grey water) is segregated at source;

(b)

the water is suitable for reuse after proper treatment depending on the level of contamination and subsequent reuse;

(c)

the performance is attested by a building certification or is available in the technical design documents.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

For the production of reclaimed water, an assessment of the direct GHG emissions from the reuse treatment, has been performed (44). The results are disclosed to investors and clients on demand.

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

For the uses prescribed in the EU Regulation (EU) 2020/741, the activity complies with that Regulation or with applicable national legislation where it is stricter. Aquifer recharge and infiltration of surface runoff waters comply with the Directive 2006/118/EC or with applicable national legislation where it is stricter.

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

2.3.   Collection and transport of non-hazardous and hazardous waste

Description of the activity

Separate collection and transport of non-hazardous and hazardous (45) waste aimed at preparing for re-use (46) or recycling (47), including the construction, operation and upgrade of facilities involved in the collection and transport of such waste, such as civic amenity centres and waste transfer stations, as a means for material recovery.

The economic activities in this category could be associated with several NACE codes, in particular E38.11, E38.12 and F42.9 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

All separately collected and transported waste that is segregated at source is intended for preparation for reuse or recycling operations.

2.

Source segregated waste consisting of (i) paper and cardboard; (ii) textiles (48); (iii) biowaste; (iv) wood; (v) glass; (vi) waste from electrical and electronic equipment (WEEE); or (vii) any type of hazardous waste is collected separately (i.e. in single fractions) and not commingled with other waste streams.

For source segregated non-hazardous waste other than the fractions mentioned above, collection in commingled fractions takes place only where it meets one of the conditions laid down in Article 10, paragraph 3, indents (a), (b) or (c) of Directive 2008/98/EC of the European Parliament and of the Council (49).

Different types of hazardous waste may be placed together in a hazardous waste box, cabinet or similar solution under the condition that each waste type is properly packaged to keep the waste separate in the box or cabinet and that hazardous waste is sorted in waste types after collection from households.

3.

For municipal waste streams, the activity complies with one of the following criteria:

(a)

the activity carries out municipal solid waste collection mainly via door-to-door collection schemes or supervised collection points to ensure a high level of separate collection and low rates of contamination;

(b)

the activity carries out separate waste collection within publicly organised waste management systems where waste producers are charged based on a pay-as-you-throw (PAYT) mechanism, at least for the residual waste stream or there are other types of economic instruments in place that incentivise waste segregation at source (50);

(c)

the activity carries out separate waste collection outside of publicly organised waste management systems that apply deposit and refund systems or other types of economic instruments that directly incentivise waste segregation at source.

4.

The activity continuously monitors and assesses the quantity and quality of wastes collected based on predefined Key Performance Indicators (KPIs) to comply with all of the following criteria:

(a)

fulfilling reporting obligations vis-a-vis relevant stakeholders, such as public authorities, Extended Producer Responsibility (EPR) schemes;

(b)

periodically communicating relevant information to waste producers and the public in general, in cooperation with relevant stakeholders, such as public authorities, EPR schemes;

(c)

identifying needs for and undertaking corrective action where the KPIs deviate from applicable targets or benchmarks, in cooperation with relevant stakeholders, such as public authorities, EPR schemes, value chain partners.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

N/A

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

1.

The activity utilises waste collection vehicles which conform to at least Euro V standards (51).

2.

Hazardous waste is collected separately from non-hazardous waste to prevent cross-contamination. Appropriate measures are taken to ensure that during separate collection and transport, hazardous waste is not mixed either with other categories of hazardous waste or with other waste, substances or materials. Mixing includes the dilution of hazardous substances.

3.

Proper collection and handling prevent leakage of hazardous waste during collection, transport, storage and delivery to the treatment facility permitted to treat hazardous waste.

4.

Hazardous waste is packaged and labelled in accordance with the international and Union standards in force in the course of collection, transport and temporary storage.

5.

The operator collecting hazardous waste complies with record-keeping obligations, including as regards quantity, nature, origin, destination, frequency of collection, mode of transport and treatment method, set out in applicable Union and national legislation

6.

For waste from electrical and electronic equipment (WEEE):

(a)

the main categories of end-of-life electrical and electronic equipment (EEE) set out in Annex III to Directive 2012/19/EU are collected separately;

(b)

collection and transport preserve the integrity of WEEE and prevent the leakage of hazardous substances, such as ozone-depleting substances, fluorinated greenhouse gases or mercury contained in fluorescent lamps.

7.

A management system is set up by the collection and logistics operator to manage environmental, health and safety risks.

(6)

Protection and restoration of biodiversity and ecosystems

N/A

2.4.   Treatment of hazardous waste

Description of the activity

Construction, upgrade, and operation of dedicated facilities for the treatment of hazardous waste as a means for material recovery operations.

This economic activity covers both in situ and ex situ material recovery operations of waste classified as hazardous waste in accordance with the European List of Waste established by Commission Decision 2000/532/EC (52) and in accordance with Annex III to Directive 2008/98/EC. This includes the following streams:

(a)

solvent reclamation or regeneration;

(b)

regeneration of acids and bases;

(c)

recycling or reclamation of inorganic materials other than metals or metal compounds;

(d)

recovery of components used for pollution abatement;

(e)

recovery of components from catalysts;

(f)

re-refining of oil lubricants and other industrial waste oils (excluding for use as fuel or incineration).

The economic activity does not include the reuse of substances that do not qualify as waste, such as by-products or residues from production activities, in accordance with Article 5 of Directive 2008/98/EC.

The economic activity does not include recovery of materials from batteries, Waste from Electrical and Electronic Equipment (WEEE), End-of-Life Vehicles (ELV), inorganic materials from incineration processes, such as ashes, slags or dust. The economic activity does not include the treatment and recovery of nuclear waste.

The economic activities in this category could be associated with several NACE codes, in particular E38.22, E38.32, F42.9 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

The activities consist of the material recovery of secondary raw materials (including chemical substances and critical raw materials) from source segregated hazardous waste.

2.

The recovered materials are substituting primary raw materials, including critical raw materials, or chemicals in production processes (53).

3.

The recovered materials comply with the applicable industry specifications, harmonised standards, or end-of-waste criteria, as well as relevant applicable Union and national legislation.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

The activity, on a life-cycle basis, does not increase GHG emissions as compared to the production based on the equivalent primary raw material(s).

Life-cycle greenhouse gas emissions are calculated using Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 (54) or ISO 14064-1:2018 (55). Quantified life-cycle GHG emissions are verified by an independent third party.

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

Relevant techniques are deployed for the protection of water and marine resources, as set out in the best available techniques (BAT) conclusions for waste treatment (56).

(5)

Pollution prevention and control

All substances, and mixtures recovered comply with the applicable relevant legislation, such as Regulation (EC) No 1907/2006, Regulation (EU) 2019/1021, Regulation (EC) No 1272/2008 and Directive 2008/98/EC.

The activity deploys relevant techniques for pollution prevention and control, as set out in the best available techniques (BAT) conclusions for waste treatment (57). The activity meets the relevant associated emission limits (BAT-AELs).

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

2.5.   Recovery of bio-waste by anaerobic digestion or composting

Description of the activity

Construction and operation of facilities for the treatment of separately collected bio-waste through anaerobic digestion or composting with the resulting production and utilisation of biogas, biomethane, digestate, compost or chemicals.

The economic activities in this category could be associated with several NACE codes, in particular E38.21 and F42.9 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to circular economy

1.

The bio-waste that is used for anaerobic digestion or composting is source segregated and collected separately. Where bio-waste is collected in biodegradable bags, the bags have the appropriate compostable certification standard EN 13432:2000 (58).

2.

In these anaerobic digestion plants, source segregated bio-waste from separate collection constitutes at least 70 % of the input feedstock, measured in weight, as an annual average. Co-digestion may cover up to 30 % of the input feedstock of advanced bioenergy feedstock listed in Annex IX to Directive (EU) 2018/2001, which may not include contaminated feedstock coming from biomass fraction of mixed municipal and industrial waste. The input does not include feedstock excluded in Part II of Annex II to Regulation (EU) 2019/1009, for Component Material Category (CMC) 3 (Compost) in accordance with point (c) of that category and for Component Material Category (CMC) 5 (Digestate other than fresh crop digestate) in accordance with point (c) of that category.

3.

The activity produces one of the following:

(a)

compost or digestate complying with Regulation (EU) 2019/1009, in particular with requirements of Annex II on the Component Material Categories (CMC), referring specifically to CMC 3 (Compost) and CMC 5 (Digestate other than fresh crop digestate) or with national rules on fertilisers or soil improvers, with equal or stricter requirements compared to those of Regulation 2019/1009;

(b)

chemicals through the conversion of organic waste to carboxylates, carboxylic acids or polymers by fermentation with mixed cultures.

4.

Quality assurance of the production process is performed using Module D1 set out in Regulation (EU) 2019/1009.

5.

Compost and digestate complying with Regulation (EU) 2019/1009 or equivalent national rules is not landfilled.

The digestate is preferably composted after anaerobic digestion to maximise benefits to the soil it is applied to afterwards, and minimises some potential agro-environmental issues such as release of ammonia and nitrates.

6.

Where anaerobic digestion is installed, the produced biogas is used directly for the generation of electricity or heat, upgraded to bio-methane for use as a fuel, directly injected in the gas grid and further used for energy purposes by replacing natural gas, used as industry feedstock to produce other chemicals or converted into hydrogen for use as a fuel.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

A monitoring and contingency plan is in place to minimise methane leakage at the facility.

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

For anaerobic digestion plants treating over 100 tonnes per day and for composting plants treating over 75 tonnes per day, the activity complies with best available techniques (BAT) conclusions for waste treatment (59) or equal or stricter national regulation, in order to reduce emissions to air and to improve the overall environmental performance as well as to select the waste input and to monitor or control the key waste and process parameters.

Emissions to air and water are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set for, respectively, anaerobic and aerobic treatment of waste in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for waste treatment (60).

For anaerobic digestion, the nitrogen content of the digestate used as fertilisers or soil improver is communicated to the buyer or the entity in charge of taking off the digestate, either in compliance with Regulation (EU) 2019/1009, or with tolerance level ± 25 %.

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

2.6.   Depollution and dismantling of end-of-life products

Description of the activity

Construction, operation and upgrade of facilities dismantling and depolluting complex end-of-life products, movable assets and their components for materials recovery or preparation for re-use of components.

The economic activity includes the dismantling of end-of-life products and movable assets and their components of any type, such as automobiles, ships and electrical and electronic equipment (EEE) for material recovery.

The economic activity does not include the treatment of batteries stemming from separate collection or removed during dismantling and depollution activities, and the demolition and wrecking of buildings and other structures (see Section 3.3 of this Annex).

The economic activities in this category could be associated with several NACE codes, in particular E38.31, E38.32 and E42.99 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

The economic activity dismantles and depollutes separately collected waste, in state-of-the-art facilities, from complex end-of-life products, such as automobiles, electrical and electronic equipment (EEE) or ships, in order to:

(a)

harvest parts and components that are suited for re-use;

(b)

separate non-hazardous and hazardous waste fractions suited for material recovery including recovery of critical raw materials;

(c)

remove hazardous substances, mixtures and components, so that these are contained in an identifiable (61) stream or that are an identifiable part of a stream within the treatment process, and send them to facilities permitted for proper treatment including disposal of hazardous waste;

(d)

enclose documentation of the materials that are sent for further treatment or reuse.

2.

The economic activity dismantling and depolluting waste electrical and electronic equipment (WEEE) complies with the requirements set out in Article 8 of Directive 2012/19/EU and in Annexes VII and VIII to that Directive. The economic activity dismantling and depolluting end-of-life vehicles (ELVs) complies with the requirements set out in Article 6 and 7 of Directive 2000/53/EC and in Annex I to that Directive.

3.

For the dismantling and depollution of scrap ships, the facility is included in the European List of ship recycling facilities as laid down in Commission Implementing Decision (EU) 2016/2323 (62). For the construction of a new facility or the upgrade of an existing facility which is not yet included in the European List of ship recycling facilities, the facility fulfils all requirements set out in Article 13 of Regulation (EU) No 1257/2013 of the European Parliament and of the Council (63) and has applied to be included in the European List of ship recycling facilities.

4.

For the dismantling and depollution of Waste from Electrical and Electronic Equipment (WEEE) and End-of-Life vehicles (ELVs), waste originates from collection points meeting the applicable requirements set by Union (64) and national legislation.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

N/A

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

1.

The facility is equipped to manage and store safely and in an environmentally sound manner hazardous substances, mixtures and components removed during the depollution operations.

2.

For end-of-life vehicles (ELVs), the facility complies with the requirements for sites for storage and treatment, depollution and treatment operations set in Annex I to Directive 2000/53/EC.

3.

For waste from electrical and electronic equipment (WEEE), the facility complies with the requirements for proper treatment set out in Article 8 of Directive 2012/19/EU, in particular with the requirements for selective treatment for materials and components of WEEE set out in Annex VII to Directive 2012/19/EU and for storage and treatment operations set out in Annex VIII to Directive 2012/19/EU.

The facility complies with normative requirements relevant to its activities for de-pollution set out in the standards EN 50625-1:2014 (65), EN 50625-2-1:2014 (66), EN 50625-2-2:2015 (67), EN 50625-2-3:2017 (68) and EN 50625-2-4:2017 (69).

Implementation of such measures can also be demonstrated through compliance with regulatory requirements that are equivalent to those set out in the EN standards mentioned above.

For the treatment of WEEE containing volatile fluorocarbons (VFCs) and volatile hydrocarbons (VHCs) and WEEE containing mercury, emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges as set out in the best available techniques (BAT) conclusions for waste treatment (70).

4.

For ship recycling, the facility complies with the requirements set out in Article 13 of Regulation (EU) No 1257/2013 and is included in the European List of ship recycling facilities established under that Regulation. The facility complies with the requirements set out in Article 7 of that Regulation with regards to the preparation of a ship-specific recycling plan prior to any recycling of a ship.

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

2.7.   Sorting and material recovery of non-hazardous waste

Description of the activity

Construction, upgrade, and operation of facilities for the sorting or recovery of non-hazardous waste streams into high quality secondary raw materials using a mechanical transformation process.

The economic activity does not include sorting and recovery of combustible fractions from mixed residual waste for the production of refuse-derived fuel, such as in mechanical and biological treatment plants.

The economic activities in this category could be associated with several NACE codes, in particular E38.32 and F42.9 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.   Origin of the feedstock material

The non-hazardous waste feedstock originates from one or multiple of the following sources:

(a)

separately collected and transported waste, including in commingled fractions (71);

(b)

non-hazardous waste fractions originating from dismantling and depollution activities from end-of-life products;

(c)

construction and demolition waste from selective demolition or otherwise segregated at source;

(d)

non-hazardous waste fractions originating from sorting of mixed waste intended for recycling where the facility meets a defined quality criteria of performance and the waste is coming from areas complying with separate collection obligations laid out in Directive 2008/98/EC.

2.   Material recovery

The activity attains or exceeds existing plant-specific material recovery rates by competent authorities set in applicable waste management plans, permits or contracts or by Extended Producer Responsibility (EPR) schemes. The facility implements internally defined Key Performance Indicators (KPIs) to track performance or attainment of applicable recovery rates.

For materials for which separate collection is mandatory, the activity converts at least 50 %, in terms of weight, of the processed separately collected non-hazardous waste into secondary raw materials that are suitable for the substitution of primary raw materials in production processes.

3.   Proper management of waste

The facility recovering non-hazardous waste has implemented Best Available Techniques (BAT) based on BAT 2 on improving overall environmental performance of the plant set out in the best available techniques (BAT) conclusions for waste treatment (72) including:

(a)

a waste characterisation procedure and a strict waste acceptance procedure regarding the quality of incoming waste;

(b)

a tracking system and inventory aiming to track the location and quantity of waste in the plant;

(c)

an output quality management system to ensure that the output of the waste treatment is in line with applicable quality requirements or standards, using for example existing EN or ISO standards;

(d)

the relevant waste segregation measures or procedures to ensure that waste, after separation, is kept separated depending on its properties in order to enable easier and environmentally safer storage and treatment;

(e)

the relevant measures to ensure waste compatibility prior to mixing or blending of waste;

(f)

the facility has installed the sorting and material recovery technology and processes to meet relevant technical specifications, quality standards or end-of-waste criteria. The activity uses state-of-the-art technologies suited to the waste fractions processed including optical separation by near-infrared spectroscopy or X-ray systems, density separation, magnetic separation or size separation.

4.   Quality of secondary raw materials

The activity converts or allows the conversion of waste into secondary raw materials, including critical raw materials, that are suitable for the substitution of primary raw materials in production processes.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

N/A

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

For activities falling under the scope of the best available techniques (BAT) conclusions for waste treatment (73), the activity implements the relevant techniques for pollution prevention and control and meets the relevant associated emission limits (BAT-AELs).

Plastics recycling facilities have filtration installed prior to wash discharge that is capable of removing at least 75 % of microplastics > 5 μm.

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

3.    Construction and real estate activities

3.1.   Construction of new buildings

Description of the activity

The development of construction projects for residential and non-residential buildings by combining financial, technical, and physical means with a view to sell the building upon delivery or at a later date, as well as the construction of complete residential or non-residential buildings, on own account for sale or on a fee or contract basis.

The economic activities in this category could be associated with several NACE codes, in particular F41.1, F41.2 and F43, in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

All generated construction and demolition waste is treated in accordance with Union waste legislation and with the full checklist of the EU Construction and Demolition Waste Management Protocol, in particular by setting sorting systems and pre-demolition audits (74). The preparing for re-use (75) or recycling (76) of the non-hazardous construction and demolition waste generated on the construction site is at least 90 % (by mass in kilogrammes), excluding backfilling (77). This excludes naturally occurring material referred to in category 17 05 04 in the European List of Waste established by Decision 2000/532/EC. The operator of the activity demonstrates compliance with the 90 % threshold by reporting on the Level(s) indicator 2.2 (78) using the Level 2 reporting format for different waste streams.

2.

The life-cycle Global Warming Potential (GWP) of the building resulting from the construction has been calculated for each stage in the life cycle and is disclosed to investors and clients on demand (79).

3.

Construction designs and techniques support circularity via the incorporation of concepts for design for adaptability and deconstruction as outlined in Level(s) indicators 2.3 and 2.4 respectively. Compliance with this requirement is demonstrated by reporting on the Level(s) indicators 2.3 (80) and 2.4 (81) at Level 2.

4.

The use of primary raw material in the construction of the building is minimised through the use of secondary raw materials (82). The operator of the activity ensures that the three heaviest material categories used to construct the building, measured by mass in kilogrammes, comply with the following maximum total amounts of primary raw material used:

(a)

for the combined total of concrete (83), natural or agglomerated stone, a maximum of 70 % of the material comes from primary raw material;

(b)

for the combined total of brick, tile, ceramic, a maximum of 70 % of the material comes from primary raw material;

(c)

for bio-based materials (84), a maximum of 80 % of the total material comes from primary raw material;

(d)

for the combined total of glass, mineral insulation, a maximum of 70 % of the total material comes from primary raw material;

(e)

for non-biobased plastic, a maximum of 50 % of the total material comes from primary raw material;

(f)

for metals, a maximum of 30 % of the total material comes from primary raw material;

(g)

for gypsum, a maximum of 65 % of the material comes from primary raw material.

The thresholds are calculated by subtracting the secondary raw material from the total amount of each material category used in the works measured by mass in kilogrammes. Where the information on the recycled content of a construction product is not available, it is to be counted as comprising 100 % primary raw material. In order to respect the Waste Hierarchy and thereby favour re-use over recycling, re-used construction products, including those containing non-waste materials reprocessed on site, are to be counted as comprising zero primary raw material. Compliance with this criterion is demonstrated by reporting in accordance with the Level(s) indicator 2.1 (85).

5.

The operator of the activity uses electronic tools to describe the characteristics of the building as built, including the materials and components used, for the purpose of future maintenance, recovery, and reuse, for example using EN ISO 22057:2022 to provide Environmental Product Declarations (86). The information is stored in a digital format and is made available to investors and clients on demand. In addition, the operator ensures the long-term preservation of this information beyond the useful life of the building by using the information managing systems provided by national tools, such as cadastre or public register.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

The building is not dedicated to extraction, storage, transport or manufacture of fossil fuels.

The Primary Energy Demand (PED) (87) setting out the energy performance of the building resulting from the construction does not exceed the threshold set for the nearly zero-energy building (NZEB) requirements in national regulation implementing Directive 2010/31/EU of the European Parliament and of the Council (88). The energy performance is certified using an as built Energy Performance Certificate (EPC).

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

Where installed, except for installations in residential building units, the specified water use for the following water appliances are attested by product datasheets, a building certification or an existing product label in the Union, in accordance with the technical specifications laid down in Appendix E to Annex I to Delegated Regulation (EU) 2021/2139:

(a)

washhand basin taps and kitchen taps have a maximum water flow of 6 litres/min;

(b)

showers have a maximum water flow of 8 litres/min;

(c)

WCs, including suites, bowls and flushing cisterns, have a full flush volume of a maximum of 6 litres and a maximum average flush volume of 3,5 litres;

(d)

urinals use a maximum of 2 litres/bowl/hour. Flushing urinals have a maximum full flush volume of 1 litre.

To avoid impact from the construction site, the activity complies with the criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

Building components and materials used in the construction comply with the criteria set out in Appendix C to this Annex.

Building components and materials used in the construction that may come into contact with occupiers (89) emit less than 0,06 mg of formaldehyde per m3 of test chamber air upon testing in accordance with the conditions specified in Annex XVII to Regulation (EC) No 1907/2006 and less than 0,001 mg of other categories 1A and 1B carcinogenic volatile organic compounds per m3 of test chamber air, upon testing in accordance with CEN/EN 16516 (90) or ISO 16000-3:2011 (91) or other equivalent standardised test conditions and determination methods (92).

Where the new construction is located on a potentially contaminated site (brownfield site), the site has been subject to an investigation for potential contaminants, for example using standard ISO 18400 (93).

Measures are taken to reduce noise, dust and pollutant emissions during construction or maintenance works.

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

The new construction is not built on one of the following:

(a)

arable land and crop land with a moderate to high level of soil fertility and below ground biodiversity as referred to the EU LUCAS survey (94);

(b)

greenfield land of recognised high biodiversity value and land that serves as habitat of endangered species (flora and fauna) listed on the European Red List (95) or the IUCN Red List (96);

(c)

land matching the definition of forest as set out in national law used in the national greenhouse gas inventory, or where not available, is in accordance with the FAO definition of forest (97).

3.2.   Renovation of existing buildings

Description of the activity

Construction and civil engineering works or preparation thereof.

The economic activities in this category could be associated with several NACE codes, in particular F41 and F43 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

All generated construction and demolition waste is treated in accordance with Union waste legislation and the full checklist of the EU Construction and Demolition Waste Management Protocol, in particular by setting sorting systems and pre-demolition audits (98). The preparing for re-use (99) or recycling (100) of the non-hazardous construction and demolition waste generated on the construction site is at least 70 % (by mass in kilogrammes), excluding backfilling (101). This excludes naturally occurring material referred to in category 17 05 04 in the European List of Waste established by Decision 2000/532/EC. The operator of the activity demonstrates compliance with the 70 % threshold by reporting on the Level(s) indicator 2.2 (102) using the Level 2 reporting format for different waste streams.

2.

The life cycle Global Warming Potential (GWP) (103) of the building’s renovation works has been calculated for each stage in the life cycle, from the point of renovation, and is disclosed to investors and clients on demand.

3.

Construction designs and techniques support circularity via the incorporation of concepts for design for adaptability and deconstruction as outlined in Level(s) indicators 2.3 and 2.4 respectively. The operator of the activity demonstrates compliance with this requirement by reporting on the Level(s) indicators 2.3 (104) and 2.4 (105) at Level 2.

4.

At least 50 % of the original building is retained. This is to be calculated based on the gross external floor area retained from the original building using the applicable national or regional measurement methodology, alternatively using the definition of ‘IPMS 1’ contained in the International Property Measurement Standards (106).

5.

The use of primary raw material in the renovation of the building is minimised through the use of secondary raw materials (107). The operator of the activity ensures that the three heaviest material categories that have been newly added to the building in the renovation of the building, measured by mass in kilogrammes, comply with the following thresholds regarding the maximum amount of primary raw material used:

(a)

for the combined total of concrete (108), natural or agglomerated stone, a maximum of 85 % of the material comes from primary raw material;

(b)

for the combined total of brick, tile, ceramic, a maximum of 85 % of the material comes from primary raw material;

(c)

for bio-based materials (109), a maximum of 90 % of the material comes from primary raw material;

(d)

for the combined total of glass, mineral insulation, a maximum of 85 % of the material comes from primary raw material;

(e)

for non-biobased plastic, a maximum of 75 % of the material comes from primary raw material;

(f)

for metals, a maximum of 65 % of the material comes from primary raw material;

(g)

for gypsum, a maximum of 83 % of the material comes from primary raw material.

The thresholds are calculated by subtracting the secondary raw material from the total amount of each material category used in the works measured by mass in kilogrammes. Where the information on the recycled content of the construction product is not available, it is to be counted as comprising 100 % primary raw material. In order to respect the Waste Hierarchy and thereby favour re-use over recycling, re-used construction products, including those containing non-waste materials reprocessed on site, are to be counted as comprising zero primary raw material. Compliance with this criterion is demonstrated by reporting in accordance with the Level(s) indicator 2.1 (110).

6.

The operator of the activity uses electronic tools to describe the characteristics of the building as built, including the materials and components used, for the purpose of future maintenance, recovery, and reuse, for example using EN ISO22057:2022 to provide Environmental Product Declarations (111). The information is stored in a digital format and is made available to investors and clients on demand. In addition, the operator of the activity ensures the long-term preservation of this information beyond the useful life of the building by using the information managing systems provided by national tools, such as cadastre or public register.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

The building is not dedicated to extraction, storage, transport or manufacture of fossil fuels.

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

Where installed as part of the renovation works, except for renovation works in residential building units, the specified water use for the following water appliances are attested by product datasheets, a building certification or an existing product label in the Union, in accordance with the technical specifications laid down in Appendix E to Annex I to Delegated Regulation (EU) 2021/2139:

(a)

wash-hand basin taps and kitchen taps have a maximum water flow of 6 litres/min;

(b)

showers have a maximum water flow of 8 litres/min;

(c)

WCs, including suites, bowls and flushing cisterns, have a full flush volume of a maximum of 6 litres and a maximum average flush volume of 3,5 litres;

(d)

urinals use a maximum of 2 litres/bowl/hour. Flushing urinals have a maximum full flush volume of 1 litre.

(5)

Pollution prevention and control

Building components and materials used in the construction comply with the criteria set out in Appendix C to this Annex.

Building components and materials used in the construction that may come into contact with occupiers (112) emit less than 0,06 mg of formaldehyde per m3 of test chamber air upon testing in accordance with the conditions specified in Annex XVII to Regulation (EC) No 1907/2006 and less than 0,001 mg of other categories 1A and 1B carcinogenic volatile organic compounds per m3 of test chamber air, upon testing in accordance with EN 16516 or ISO 16000-3:2011 (113) or other equivalent standardised test conditions and determination methods.

Measures are taken to reduce noise, dust and pollutant emissions during construction or maintenance works.

(6)

Protection and restoration of biodiversity and ecosystems

N/A

3.3.   Demolition and wrecking of buildings and other structures

Description of the activity

The demolition and wrecking of buildings, roads and runways, railways, bridges, tunnels, waste water treatment works, water treatment works, pipelines, wells and boreholes, power-generating plants, chemical plants, dams and reservoirs, mines and quarries, offshore structures, near shore works, ports, waterway works or land formation and reclamation (114).

For projects associated with the activities ‘Construction of New Buildings’ or ‘Renovation of existing buildings’ (see Sections 3.1 and 3.2 of this Annex), where the demolition works and the construction or renovation works are procured under the same contract, the technical screening criteria for the construction or renovation activities apply.

The economic activity does not include the demolition and wrecking of buildings and other structures carried out as part of the activity ‘Remediation of contaminated sites and areas’ (see Section 2.4 of Annex III).

The economic activities in this category could be associated with NACE code F43.1 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

Prior to the start of the demolition or wrecking activity, at least the following aspects from the Level 1 design concept checklist of the Level(s) indicator 2.2 (115) checklist are discussed and agreed upon with the client:

(a)

definition of key performance indicators and target ambition level;

(b)

identification of project-specific constraints that may compromise the target ambition level (such as time, labour and space) and how to minimise these constraints;

(c)

details of the pre-demolition auditing procedure;

(d)

an outline waste management plan that prioritises selective deconstruction, decontamination and source separation of waste streams. Where these actions are not prioritised, an explanation is provided to justify why selective deconstruction, decontamination or source separation of waste streams are not technologically feasible in the project. Cost or financial considerations are not an acceptable reason to avoid complying with this requirement.

2.

The operator of the activity conducts a pre-demolition audit in line with the EU Construction and Demolition Waste Management Protocol (116).

3.

All demolition waste generated during the demolition or wrecking activity is treated in accordance with Union waste legislation and the full checklist of the EU Construction and Demolition Waste Management Protocol (117).

4.

The preparing for re-use (118) or recycling (119) of the non-hazardous construction and demolition waste generated on the construction site is at least 90 % (by mass in kilogrammes), excluding backfilling (120). This excludes naturally occurring material referred to in category 17 05 04 in the European List of Waste established by Decision 2000/532/EC. The operator of the activity demonstrates compliance with the 90 % threshold by reporting on the Level(s) indicator 2.2 (121) using the Level 3 reporting format for different waste streams. Alternatively, at least 95 % of the mineral (122) fraction and 70 % of the non-mineral fraction of the non-hazardous demolition waste is separately collected and prepared for reuse or recycled.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

The building owner or contractor ensures that during renovation, refurbishing or demolition activities implying the removal of foam panels, or laminated boards installed in cavities or built up structures, that contain foams with Fluorinated greenhouse gases, saturated and unsaturated Hydrofluorocarbons, and Ozone Depleting Substances, as defined in Regulation (EU) No 517/2014 and in Regulation (EU) No 1005/2009, the emissions are avoided to the extent possible by handling the foams or the gases contained therein in a way that ensures the reuse or destruction of the foam panels or the gases contained in the foams. The recovery of the gases contained in the foams is carried out by appropriately trained personnel.

Where recovery of these foams is not technically feasible, the operator draws up documentation providing evidence for the infeasibility of the recovery in the specific case. Such documentation is retained for five years and is made available, on demand.

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

Measures are taken to reduce noise, dust and pollutant emissions during demolition and wrecking works.

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

3.4.   Maintenance of roads and motorways

Description of the activity

Maintenance of streets, roads and motorways, other vehicular and pedestrian ways, surface work on streets, roads, highways, bridges, tunnels, aerodrome runways, taxiways and aprons, defined as all actions undertaken to maintain and restore the serviceability (123) and level of service of roads (124). For bridges and tunnels, the economic activity only includes the maintenance of the road that runs on the bridge or through the tunnel. It does not include the maintenance of the bridge or tunnel itself.

The economic activity includes routine maintenance, which can be scheduled on a periodical basis. The economic activity also includes preventive maintenance and rehabilitation which are defined as works undertaken to preserve or restore serviceability and to extend the service life (125) of an existing road. The maintenance operation is mainly dedicated to pavement management and concerns only the following main elements of the road: binder course, surface course and concrete slabs. The roads in the scope of this economic activity are made of asphalt, concrete or a combination of the two.

The economic activities in this category could be associated with NACE code F42.11 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

Where main road elements (binder course, surface course or concrete slabs) are demolished or removed, the preparing for re-use (126) or recycling (127) of the non-hazardous waste generated onsite is 100 % (by mass in kilogrammes), excluding backfilling (128). This excludes naturally occurring material referred to in category 17 05 04 in the European List of Waste established by Decision 2000/532/EC.

2.

Where the road elements (binder course, surface course and concrete slabs) are newly installed after demolition or removal, including any roads which are built on a temporary basis for the purpose of carrying out the maintenance works, at least 50 % (by mass in kilogrammes) of the structural road elements used are re-used or recycled materials or non-hazardous industrial by-products.

3.

The re-used or recycled materials are not moved over distances greater than 2,5 times the distance between the construction site and the nearest production facility for equivalent primary raw materials, to avoid that the use of re-used or recycled materials leads to higher CO2 emissions than the use of primary raw materials.

4.

Where newly installed, the binder course has a service lifetime no shorter than 20 years (129).

5.

The use of primary raw material for road furniture is minimised through the use of secondary raw materials (130). The operator of the activity ensures that for metals, such as steel restraint systems, a maximum of 30 % of the material come from primary raw material. The threshold is calculated by subtracting the secondary raw material from the total amount of each material category used in the works measured by mass in kilogrammes. Where the information on the recycled content of the construction product is not available, it is to be counted as comprising 100 % primary raw material. In order to respect the Waste Hierarchy and thereby favour re-use over recycling, re-used construction products, including those containing non-waste materials reprocessed on site, are to be counted as comprising zero primary raw material.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

A traffic congestion mitigation plan to be implemented during the maintenance works is presented.

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

Measures are taken to reduce noise, vibrations, dust and pollutant emissions during construction or maintenance works. When choosing road surface types, low noise road surfaces are preferred, in accordance with the comprehensive criterion B7 ‘minimum requirements for low-noise pavement design’ of the EU Green Public Procurement Criteria for Road Design, Construction and Maintenance (131), and considering low-noise road surfaces a priority for all roads under the scope of Directive 2002/49/EC.

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

3.5.   Use of concrete in civil engineering

Description of the activity

Use of concrete for new construction, reconstruction, or maintenance (132) of civil engineering objects, except concrete road surfaces on the following elements: streets, motorways, highways, other vehicular and pedestrian ways, bridges, tunnels and aerodrome runways, taxiways and aprons that are covered under the economic activity ‘Maintenance of roads and motorways’ (See Section 3.4 of this Annex).

An economic activity in this category could be associated with several NACE codes, in particular F42.12, F42.13, F42.2, F42.9, in accordance with the statistical classification for economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

All generated construction and demolition waste is treated in accordance with Union waste legislation and the full checklist of the EU Construction and Demolition Waste Management Protocol, in particular by setting sorting systems (133). The preparing for re-use (134) or recycling (135) of the non-hazardous construction and demolition waste generated on the construction site is at least 90 % (by mass in kilogrammes), excluding backfilling (136). This excludes naturally occurring material referred to in category 17 05 04 in the European List of Waste established by Decision 2000/532/EC. The operator of the activity demonstrates compliance with the 90 % threshold by reporting on the Level(s) indicator 2.2 using the Level 2 reporting format for different waste streams.

2.

Construction designs and techniques support circularity via the incorporation of concepts for design for adaptability and deconstruction as outlined in Level(s) indicators 2.3 and 2.4 respectively. Compliance with this requirement is demonstrated by reporting on the Level(s) indicators 2.3 (137) and 2.4 (138) at Level 2.

3.

The use of primary raw material is minimised through the use of secondary raw materials (139). For concrete, a maximum of 70 % of the material comes from primary raw material. This criterion applies to in situ poured concrete, pre-cast products, and all constituent materials, including any reinforcement. The threshold is calculated by subtracting the secondary raw material from the total amount of material used measured by mass in kilogrammes. Where the information on the recycled content of the construction product is not available, it is to be counted as comprising 100 % primary raw material. In order to respect the Waste Hierarchy and thereby favour re-use over recycling, re-used construction products, including those containing non-waste materials reprocessed on site, are to be counted as comprising zero primary raw material.

4.

The secondary raw materials are not moved over distances greater than 2,5 times the distance between the construction site and the nearest production facility for equivalent primary raw materials, to avoid that the use of re-used or recycled materials leads to higher CO2 emissions than the use of primary raw materials.

5.

The operator of the activity uses electronic tools to describe the characteristics of the building as built, including the materials and components used, for the purpose of future maintenance, recovery, and reuse, for example using EN ISO 22057:2022 to provide Environmental Product Declarations (140). The information is stored in a digital format and is made available to investors and clients on demand. In addition, the operator ensures the long-term preservation of this information beyond the useful life of the building by using the information managing systems provided by national tools, such as cadastre or public register.

6.

Bridges, tunnels, dikes and sluices are inspected regularly by a nationally approved inspector and the data is used to predict maintenance needs.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

The built asset is not dedicated to the extraction, storage, transport or manufacture of fossil fuels.

For the cement used in this activity, the greenhouse gas emissions (141) from the production processes are:

(a)

for grey cement clinker, lower than 0,816 (142) tCO2e per tonne of grey cement clinker;

(b)

for cement from grey clinker or alternative hydraulic binder, lower than 0,530 (143) tCO2e per tonne of cement or alternative binder manufactured.

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

Components and materials used in the construction comply with the criteria set out in Appendix C to this Annex.

Components and materials used in the construction that may come into contact with occupiers (144) emit less than 0,06 mg of formaldehyde per m3 of test chamber air upon testing in accordance with the conditions specified in Annex XVII to Regulation (EC) No 1907/2006 and less than 0,001 mg of other categories 1A and 1B carcinogenic volatile organic compounds per m3 of test chamber air, upon testing in accordance with CEN/EN 16516 (145) or ISO 16000-3:2011 (146) or other equivalent standardised test conditions and determination methods (147).

Where the new construction is located on a potentially contaminated site (brownfield site), the site has been subject to an investigation for potential contaminants, for example by using standard ISO 18400.

Measures are taken to reduce noise, vibrations, dust and pollutant emissions during construction or maintenance works.

Where appropriate, given the sensitivity of the area affected, in particular in terms of the size of population and fauna affected, noise and vibrations from construction, use and maintenance of infrastructure are mitigated by acoustical planning introducing open trenches, wall barriers or other appropriate measures in compliance with Directive 2002/49/EC of the European Parliament and of the Council (148).

(6)

Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

In addition, the following is to be ensured:

(a)

in the EU, in relation with Natura 2000 sites: the activity does not have significant effects on Natura 2000 sites in view of their conservation objectives on the basis of an appropriate assessment carried out in accordance with Article 6(3) of Directive 92/43/EEC;

(b)

in the EU, in any area: the activity is not detrimental to the recovery or maintenance of the populations of species protected under Directive 92/43/EEC and Directive 2009/147/EC at a favourable conservation status. The activity is also not detrimental to the recovery or maintenance of the habitat types concerned and protected under Directive 92/43/EEC at a favourable conservation status;

(c)

outside of the EU, activities are conducted in accordance with applicable law related to the conservation of habitats and species.

4.    Information and communication

4.1.   Provision of IT/OT data-driven solutions

Description of the activity

The activity manufactures, develops, installs, deploys, maintains, repairs or provides professional services, including technical consulting for design or monitoring of:

(a)

software (149) and information technology (IT) or operational technology (OT) systems (150), including artificial intelligence (AI) based solutions, such as for automated machine learning, built for the purpose of remote monitoring and predictive maintenance, including systems for:

(i)

remotely collecting, processing, transferring, and storing data from equipment, products or infrastructure during their use or operation;

(ii)

analysing the data and generating insights about the operational performance and condition of the equipment, product or infrastructure;

(iii)

providing remote maintenance and recommendations about measures required to avoid operational failure and maintain the equipment, product or infrastructure in an optimal operating condition and prolong their useful life and reduce resource use and waste;

(b)

tracking and tracing software and IT or OT systems built for the purpose of providing identification, tracking and tracing of materials, products and assets through their respective value chains (including digital material and product passports) with the predominant objective to support the circularity of material flows and products or other objectives set out in Regulation (EU) 2020/852;

(c)

lifecycle assessment software supporting the lifecycle assessment and related reporting for products, equipment or infrastructures;

(d)

design and engineering software supporting the eco-design of products, equipment, and infrastructure, including waste management and resource efficiency;

(e)

supplier management software supporting green procurement of materials, products and services with low environmental impact, but excluding the operation of market places supporting the trading of such goods;

(f)

lifecycle performance management software supporting the monitoring and assessment of the circularity performance of products, equipment, or infrastructures during their lifecycle.

The economic activities in this category could be associated with several NACE codes, in particular C26, C27, J58.29, J61, J62 and J63.1 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

An economic activity in this category is an enabling activity in accordance with Article 13(1), point (l), of Regulation (EU) 2020/852 where it complies with the technical screening criteria set out in this Section.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

The economic activity manufactures, develops, installs, deploys, maintains, repairs or provides professional services, including technical consulting for design or monitoring, to one or more of the following IT/OT data-driven solutions that provide the capabilities listed below. Such IT/OT data-driven solutions include sensors (such as power, temperature, vibration, video, sound, viscosity), data collection and communication equipment, data repository (edge or cloud), and software. Where these capabilities are part of a broader software or IT/OT offering, only specific software add-ons implementing these capabilities qualify.

2.

For remote monitoring and predictive maintenance systems, at least two of the following capabilities specified in points (a) to (d) are met in their full scope:

(a)

alerting the user to abnormal sensor values, and assessing the status of the product, equipment, or infrastructure, detecting wear and tear or electrical issues, and drawing conclusions about the exact nature of abnormal operating conditions by means of advanced analytical methods;

(b)

predicting the expected remaining lifetime of a product, equipment, or infrastructure, and recommending measures to extend the remaining lifetime;

(c)

predicting an upcoming product, equipment or infrastructure failure and recommending measures to prevent such failure;

(d)

providing recommendations about the highest value next use cycle, such as reuse, recovering components through parts harvesting for remanufacture, or recycling, taking into consideration a combination of factors regarding the product’s condition.

IT/OT systems aimed at (i) monitoring for the replacement of consumables (151), such as printer ink; (ii) remote monitoring and remote maintenance of power generation plants that are more greenhouse gas intensive than 100 gCO2e/kWh; or (iii) monitoring and remote management of any type of fossil fuel engine; do not qualify.

3.

For tracking and tracing software and IT/OT systems, at least one of the following capabilities specified in points (a) to (d) is met in its full scope:

(a)

providing identification, tracking and tracing of materials, products and assets through value chains in order to make accessible structured data (such as material content, substances, environmental information) required for lifecycle assessments or material declarations according to relevant standards, such as Recommendation (EU) 2021/2279, ISO 14067:2018 (152) or ISO 14040:2006 (153), and sharing of such data with value chain partners, consumers, and other economic actors in compliance with relevant standards regarding data modelling, interoperability, data privacy and data security;

(b)

provisioning and sharing of documents and data directly supporting the repair and maintenance of products and equipment, such as repair instruction, test equipment, wiring and connection diagrams, diagnostic fault and error codes, disassembly instructions;

(c)

supporting reverse logistics, including the take-back of products for remanufacturing, refurbishment or recycling, by managing steps and transactions in the take-back process, such as pick-up order placement, tracking of sales transaction data, decomposition of product into materials to be re-injected into circular material flows, and by optimising decisions to prevent downcycling and maximise resource recovery. Digital product passports meeting the minimum requirements in Union law are not considered as taxonomy aligned;

(d)

supporting optimisation and intensification of the use of products, through circular business models such as providing products as a service or peer-to-peer sharing.

4.

For lifecycle assessment software, at least one of the following capabilities specified in points (a) to (c) is met in its full scope:

(a)

supporting the life cycle assessment of products, equipment or infrastructure with software-implemented methods and algorithms according to relevant standards such as Recommendation (EU) 2021/2279, ISO 14067:2018 (154) or ISO 14040:2006 (155);

(b)

providing data required for lifecycle analysis, such as standard carbon emission values and other environmental impacts for frequently used products and materials or production steps;

(c)

providing recommendations for improving the design of a product, equipment, or infrastructure so as to minimise their material and carbon footprint.

5.

For design and engineering software, at least one of the following capabilities specified in points (a) to (e) is met in its full scope:

(a)

supporting users to formulate, document and manage product-specific circularity and other environmental design goals and requirements, such as design-for-remanufacturability, design-for-serviceability, minimal environmental impact from using or operating the product, minimal waste during production or construction and tailored production to eliminate over-specification and reduce material inputs;

(b)

supporting users to explore product designs for the purpose of assessing and optimising product designs against specified circular or other environmental objectives, or finding the best trade-off between conflicting design goals, such as robustness v material use, greener material v costing or installing schedule or cost of downstream reuse and recycling systems;

(c)

validating a design through analysis and simulation against specified circularity and other environmental design goals and requirements;

(d)

supporting the computer-aided product design process – including mechanical, electrical, electronic or recipe design – with data and information about the impact of design and construction decisions on circularity and environmental performance;

(e)

supporting the selection of materials and components with a low environmental impact through the provision of data about market-available materials and components and their cost.

6.

For supplier management software, at least one of the following capabilities specified in points (a) to (e) is met in its full scope:

(a)

providing the user with information about suppliers and supplies of circular products, immediate products, components and materials that are designed for closed loop systems, reuse, remanufacturing or repurposing. The information provided exceeds the minimum information requirements in existing Union law (156);

(b)

supporting the management and tracking suppliers’ compliance with standards and certifications related to the provision of such materials, products, and components;

(c)

supporting the exchange with suppliers of data required to verify the environmental performance of supplied materials, products, and components;

(d)

supporting the trading and matchmaking between suppliers and purchasers of circular, eco-designed or otherwise eco-friendly products, materials, and components;

(e)

supporting reverse logistics.

7.

For lifecycle performance management software, at least one of the following capabilities specified in points (a) to (e) is met in its full scope:

(a)

supporting the monitoring and assessment of the circularity performance (157) of a product, equipment or infrastructure during its lifecycle over time;

(b)

comparing circularity performance against original circularity design goals, analysing deviations and their root causes;

(c)

supporting the planning and documentation of measures required to prolong the useful life of the product, equipment or infrastructure, such as maintenance, retrofit, or other services;

(d)

supporting the impact assessment of such measures on circularity performance;

(e)

providing the user with data required to take decisions on the future use of the product, equipment, or infrastructure, such as retrofit, change of use, decommissioning and recycling.

8.

All IT/OT data-driven solutions should meet the following criteria:

(a)

techniques are adopted that support the reuse and use of secondary raw materials and reused components, and the solutions are designed for high durability, recyclability, easy disassembly, adaptability and upgradability;

(b)

measures are in place to manage and recycle waste at the end-of life, including through decommissioning contractual agreements with recycling service providers, reflection in financial projections or official project documentation. These measures ensure that components and materials are segregated and treated to maximise recycling and reuse in accordance with the waste hierarchy, EU waste regulation principles and applicable regulations, in particular through the reuse and recycling of batteries and electronics and the critical raw materials therein. These measures also include the control and management of hazardous materials;

(c)

preparation for re-use, recovery or recycling operations, or proper treatment, including the removal of all fluids and a selective treatment are performed in accordance with Annex VII to Directive 2012/19/EU.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

N/A

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

The equipment used to operate the software meets the requirements laid down in Directive 2009/125/EC for servers and data storage products.

The equipment used does not contain the restricted substances listed in Annex II to Directive 2011/65/EU, except where the concentration values by weight in homogeneous materials do not exceed the maximum values listed in that Annex.

(6)

Protection and restoration of biodiversity and ecosystems

N/A

5.    Services

5.1.   Repair, refurbishment and remanufacturing

Description of the activity

Repair (158), refurbishment (159) and remanufacturing (160) of goods that have been used for their intended purpose before by a customer (physical person or legal person).

The economic activity does not include replacement of consumables (161), such as printer ink, toner cartridges, lubricants for moving parts or batteries.

The economic activity relates to products that are manufactured by economic activities classified under the NACE codes C13 Manufacture of textiles, C14 Manufacture of wearing apparel, C15 Manufacture of leather and related products, C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials, C22 Manufacture of rubber and plastic products, C23.3 Manufacture of clay building materials, C23.4 Manufacture of other porcelain and ceramic products, C25.1 Manufacture of structural metal products, C25.2 Manufacture of tanks, reservoirs and containers of metal, C25.7 Manufacture of cutlery, tools and general hardware, C25.9 Manufacture of other fabricated metal products, C26 Manufacture of computer, electronic and optical products, C27 Manufacture of electrical equipment, C28.22 Manufacture of lifting and handling equipment, C28.23 Manufacture of office machinery and equipment (except computers and peripheral equipment), C28.24 Manufacture of power-driven hand tools, C28.25 Manufacture of non-domestic cooling and ventilation equipment, C28.93 Manufacture of machinery for food, beverage and tobacco processing, excluding machinery for tobacco processing, C28.94 Manufacture of machinery for textile, apparel and leather production, C28.95 Manufacture of machinery for paper and paperboard production, C28.96 Manufacture of plastic and rubber machinery, C31 Manufacture of furniture and C32 Other manufacturing.

The economic activities in this category have no dedicated NACE codes as referred to in the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

The economic activity consists of extending the lifetime of products by repairing, refurbishing or remanufacturing products that have already been used for their intended purpose by a customer (physical person or legal person).

2.

The economic activity complies with the following criteria:

(a)

the replaced parts, the refurbished products or the remanufactured products are covered by a sales contract where relevant and in accordance with provisions as regards conformity of the product, liability of the seller (162) (including the option of a shorter liability or limitation period for second-hand products), burden of proof, remedies for lack of conformity, the modalities for the exercise of those remedies, repair or replacement of the goods, and commercial guarantees;

(b)

the economic activity implements a waste management plan that ensures that the product’s materials, particularly critical raw materials, and components that have not been reused in the same product are reused elsewhere, or, where reuse is not possible (due to damage, degradation or hazardous substances), are recycled, or, only where reuse and recycling is not viable, are disposed of in accordance with applicable Union and national legislation. For remanufacturing, the waste management plan is accessible to the public.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

Where the activity involves on-site generation of heat/cool or co-generation including power, the direct GHG emissions of the activity are lower than 270 gCO2e/kWh.

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Spare parts installed through repair, refurbishment or remanufacturing comply with all relevant Union rules on the restriction of the use of hazardous substances, of generic nature or with specific relevance to that product category, such as Regulation (EC) No 1907/2006, Directive 2011/65/EU, and Directive (EU) 2017/2102 of the European Parliament and of the Council (163).

For repair or refurbishment activities, those requirements do not apply to the original components that have been retained in the product.

For installations falling within the scope of Directive 2010/75/EU, emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions and ensures at the same time that no significant cross-media effects occur.

(6)

Protection and restoration of biodiversity and ecosystems

N/A

5.2.   Sale of spare parts

Description of the activity

Sale of spare parts (164).

The economic activity does not include replacement of consumables, such as printer ink, toner cartridges, lubricants for moving parts or batteries and maintenance.

The economic activity relates to spare parts that are used in products manufactured by economic activities classified under the NACE codes C26 Manufacture of computer, electronic and optical products, C27 Manufacture of electrical equipment, C28.22 Manufacture of lifting and handling equipment, C28.23 Manufacture of office machinery and equipment (except computers and peripheral equipment), C28.24 Manufacture of power-driven hand tools and C31 Manufacture of furniture.

The economic activities in this category could be associated with several NACE codes, in particular G46 and G47 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

The economic activity consists of the sale of spare parts beyond legal obligations.

2.

The economic activity complies with the following criteria:

(a)

each sold spare part is covered by a sales contract where relevant and in accordance with provisions as regards conformity of the product, liability of the seller (165) (including the option of a shorter liability or limitation period for second-hand products), burden of proof, remedies for lack of conformity, the modalities for the exercise of those remedies, repair or replacement of the goods, and commercial guarantees;

(b)

each sold spare part for a product replaces, or intends to replace in the future, an existing part in order to restore or upgrade the product’s functionality, in particular in case where the existing part is broken.

3.

Where the economic activity involves delivery of packaged products to customers (physical person or legal person) including when the activity is operated as an e-commerce (166), the primary and secondary packaging of the product complies with one of the following criteria:

(a)

the packaging is made of at least 65 % recycled material. Where the packaging is made from paper or cardboard, the remaining primary raw material are certified by the Forest Stewardship Council (FSC), the Programme for the Endorsement of Forest Certification Schemes (PEFC International), or equivalent recognised schemes. Coatings with plastics or metals are not used. For plastic packaging only mono-materials without coatings are used, halogen-containing polymers are not used. A declaration of compliance is provided specifying the material composition of the packaging and the shares of recycled and primary raw material;

(b)

the packaging has been designed to be reusable within a reuse system (167). The system for reuse is established in a way that ensures the possibility of reuse in a closed-loop or open-loop system.

Do no significant harm (‘DNSH’)

(1)

Climate change mitigation

Where the activity involves on-site generation of heat/cool or co-generation including power, the direct GHG emissions of the activity are lower than 270 gCO2e/kWh.

The activity develops a strategy to account for and reduce the GHG emissions arising from transport along the value chain, including shipping and returns, to the extent these are traceable.

(2)

Climate change adaptation

The activity complies with the criteria set out in Appendix A to this Annex.

(3)

Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(5)

Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Sold spare parts comply with all relevant EU rules on the restriction of the use of hazardous substances, of generic nature or with specific relevance to that product category, such as Regulation (EC) No 1907/2006, Directive 2011/65/EU, and Directive (EU) 2017/2102.

(6)

Protection and restoration of biodiversity and ecosystems

N/A

5.3.   Preparation for re-use of end-of-life products and product components

Description of the activity

Preparation for re-use of products and components at the end of life (168).

The economic activity does not include repair activities, which are performed during the product’s use stage.

The economic activity relates to products and their components manufactured by economic activities classified under the NACE codes C13 Manufacture of textiles, C14 Manufacture of wearing apparel, C15 Manufacture of leather and related products, C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials, C18 Printing and reproduction of recorded media, C22 Manufacture of rubber and plastic products, C23.3 Manufacture of clay building materials, C23.4 Manufacture of other porcelain and ceramic products, C25.1 Manufacture of structural metal products, C25.2 Manufacture of tanks, reservoirs and containers of metal, C25.7 Manufacture of cutlery, tools and general hardware, C25.9 Manufacture of other fabricated metal products, C26 Manufacture of computer, electronic and optical products, C27 Manufacture of electrical equipment, C28.22 Manufacture of lifting and handling equipment, C28.23 Manufacture of office machinery and equipment (except computers and peripheral equipment), C28.24 Manufacture of power-driven hand tools, C28.25 Manufacture of non-domestic cooling and ventilation equipment, C28.93 Manufacture of machinery for food, beverage and tobacco processing, excluding machinery for tobacco processing, C28.94 Manufacture of machinery for textile, apparel and leather production, C28.95 Manufacture of machinery for paper and paperboard production, C28.96 Manufacture of plastic and rubber machinery, C29 Manufacture of motor vehicles, trailers and semi-trailers, C30.1 Building of ships and boats, C30.2 Manufacture of railway locomotives and rolling stock, C30.3 Manufacture of air and spacecraft and related machinery, C30.9 Manufacture of transport equipment n.e.c., C31 Manufacture of furniture and C32 Other manufacturing.

The economic activities in this category have no dedicated NACE code as referred to in the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Technical screening criteria

Substantial contribution to the transition to a circular economy

1.

The activity prepares for re-use products or components of products that have become waste so that they can be re-used without any other pre-processing.

2.

The activity’s waste feedstock originates from separately collected and transported waste in source segregated or commingled fractions (169).

3.

The activity has implemented acceptance, safety and inspection procedures that comply with the following criteria:

(a)

a procedure is in place to check the suitability for preparing for re-use or recycling, and that the activity implements a publicly available waste management plan, which ensures that discarded end-of-life products not suitable for preparing for re-use (due to damage, degradation or hazardous substances) are sent for recycling or, only where reuse and recycling is not viable, disposed of;

(b)

the procedure which can be based on visual or manual external inspection against pre-determined criteria is suited to the category of discarded end-of-life products, which are prepared for re-use;

(c)

proper training is provided and ensures that the re-use operators are qualified for the preparing for re-use activities of the discarded end-of-life products at stake.

4.

The activity uses the tools and equipment suited for the preparation for re-use of discarded end-of-life products.

5.

The activity has a system to report recovery rate and, where applicable, targets for preparing for re-use or recycling set out by Union or national legislation.

6.

The activity complies with the following criteria:

(a)

the output of the activity are products or components of products which are suitable for re-use without any other processing;

(b)

sold goods are covered by a sales contract where relevant and in accordance with provisions as regards conformity of the product, liability of the seller (170) (including the option of a shorter liability or limitation period for second-hand products), burden of proof, remedies for lack of conformity, the modalities for the exercise of those remedies, repair or replacement of the goods, and commercial guarantees.