Substantial contribution to climate change mitigation

1. Protection of non-agricultural land with high carbon stock from land use change

(a)Non-perennial crops are not grown on land with high carbon stock, namely on land that had one of the following statuses on the reference date referred to in Articles 29 (3), (4) and (5) of Directive (EU) 2018/2001 of the European Parliament and of the Council 1 and no longer has that status:

(I)wetlands, namely land that is covered with or saturated by water permanently or for a significant part of the year;

(II)continuously forested areas, namely land spanning more than one hectare with trees higher than five metres and a canopy cover of more than 30 %, or trees able to reach those thresholds in situ;

(III)land spanning more than one hectare with trees higher than five metres and a canopy cover of between 10 % and 30 %, or trees able to reach those thresholds in situ;

(IV)peatland, unless evidence is provided that the cultivation and harvesting of the crop does not involve drainage of previously undrained soil.

(b)Where growing of non-perennial crops includes the management of permanent grassland, the permanent grassland is maintained.

2. Establishment of a Farm Sustainability Plan

A Farm Sustainability Plan sets out the agricultural holding’s strategy to contribute significantly to climate change mitigation by both reducing greenhouse gases (GHG) emissions 2 and strengthening land carbon sinks (or, in case of saturation, maintaining land carbon stocks) 3 .

The Farm Sustainability Plan:

(a)describes the holding’s biophysical environment and cropping system including information on land use change referred to in point 1;

(b)measures the holding’s climate baseline, i.e. its average performance in terms of GHG emissions and carbon sequestration in the five years prior to the start of the project;

(c)identifies the management practices with the highest potential to substantially contribute to climate change mitigation, and quantifies this potential contribution;

(d)identifies the management practices that ensure the compliance with the ‘Do No Significant Harm’ (‘DNSH’) criteria set out in (Section 1.1 of) this Annex, where applicable.

3. Compliance with essential management practices

To demonstrate that its activities contribute substantially to climate change mitigation and based on the information presented in the Farm Sustainability Plan, the agricultural holding consistently deploys all of the essential management practices listed in Appendix A to this Annex, except those that are clearly not applicable to that holding.

4. Farm records

The agricultural holding keeps a yearly record of its climate performance, including:

(a)information on the deployment of management practices;

(b)information on GHG emissions and removals that:

(I)is based on best available data;

(II)is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories, including the good practices regarding the consistency between Agriculture, Forestry and Other Land Uses (‘AFOLU’) projects or activities and IPCC inventory guidelines 4 .

5. Verification of the yearly records and the Farm Sustainability Plan

The information in the yearly records and the Farm Sustainability Plan is verified to be complete, correct and of high quality.

That verification is carried out by an independent third-party body at the request of the agricultural holding at the beginning of the investment period and every three years thereafter.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 5 .

Where the activity involves water abstraction, a permit for water abstraction has been granted by the relevant authority for the activity, specifying conditions to avoid significant impact on water bodies.

(4) Transition to a circular economy

Non-natural waste materials generated in the course of growing of non-perennial crops, including used protected cultivation films, unused agrochemicals or fertilisers, packaging or net wraps are collected by certified waste management operator and recycled or disposed, if hazardous or otherwise not recyclable. Natural (organic) materials and other suitable wastes (which may include pesticide washings) are used for agricultural benefit.

(5) Pollution prevention and control

The application of nutrients (fertilisers) and plant protection products, including pesticides and herbicides, is targeted regarding time and area treated, is delivered at appropriate levels and with appropriate equipment and techniques to reduce risk and impacts of pesticide use on human health and the environment and of the loss of excess nutrients 6 .

Particularly in zones affected by nitrogen pollution and waters which could be affected by pollution, nitrogen applications are consistent with good agricultural practice and take into account the characteristics of the vulnerable zone concerned, in particular:

(a) soil conditions, soil type and slope;

(b) climatic conditions, rainfall and irrigation;

(c) land use and agricultural practices, including crop rotation systems.

Nitrogen applications are to be based on a balance between:

(a)the expected nitrogen requirements of the crops;

(b)the nitrogen supply to the crops from the soil and from fertilisation corresponding to:

(I)the amount of nitrogen present in the soil at the moment the crop starts to use it to a significant degree (outstanding amounts at the end of winter);

(II)the supply of nitrogen through the net mineralisation of the reserves of organic nitrogen in the soil;

(III)additions of nitrogen compounds from livestock manure;

(IV)additions of nitrogen compounds from chemical and other fertilisers.

Measures are taken to ensure that, for each agricultural holding, the amount of livestock manure applied to the land each year, including by the animals themselves, does not exceed 170 kg N ha-1 per hectare or different amounts in accordance with the conditions set out in Annex II to Council Directive 91/676/EEC 7 .

Only plant protection products with active substances that ensure high protection of human and animal health and the environment are used 8 .

(6) Protection and restoration of biodiversity and ecosystems

Activities ensure the protection of soil, particularly over winter, to prevent erosion and run-off into water courses/bodies and to maintain soil organic matter 9 .

Activities do not lead to the disturbance, capture or killing of legally protected species or the deterioration of legally protected habitats.

Activities do not lead to the conversion, fragmentation or unsustainable intensification of high-nature-value land, wetlands, forests, or other lands of high-biodiversity value 10 , including highly biodiverse grassland spanning more than one hectare that is one of the following:

(a)natural, namely grassland that would remain grassland in the absence of human intervention and that maintains the natural species composition and ecological characteristics and processes of that grassland;

(b)non-natural, namely grassland that would cease to be grassland in the absence of human intervention and that is species-rich and not degraded and has been identified as being highly biodiverse by the relevant competent authority.

For sites/operations located in or near to biodiversity-sensitive areas (including the Natura 2000 network of protected areas, UNESCO World Heritage sites and Key Biodiversity Areas (‘KBAs’), as well as other protected areas):

(a)activities do not lead to the deterioration of natural habitats and the habitats of species and to disturbance of the species for which the protected area have been designated.

(b)activities are carried out in accordance with the conclusions of an appropriate assessment 11 , where applicable, and necessary mitigation measures 12 have been implemented accordingly 13 .

The cultivation of alien species complies with the applicable rules regarding the risk, monitoring and safeguards in accordance with Regulation (EU) No 1143/2014 of the European Parliament and of the Council 14 . Species on the list of invasive alien species of Union concern and alien species on Member States national lists of species that are considered invasive or high risk are not cultivated. Alien species not included in the above-mentioned lists are cultivated only where there is negligible risk of invasion, following the relevant assessment process.

Management category

Growing of non-perennial crops: essential management practice

Crop management

The holding puts in place on arable land an appropriate crop rotation system for up to five crops including at least one legume or a green manure , taking into account the agronomic crop succession requirements specific to each crops grown and climatic conditions, in order to break weed and disease cycles, build up soil fertility and soil organic matter, reduce external input uses (including pesticides, chemical fertilisers) and associated N2O emissions and to increase soil carbon sequestration.

Cover and catch crops are sown using a locally appropriate species mixture. The living plant coverage of the agricultural holding is at least 75 % and bare soil is avoided. When rice is cultivated on the agricultural holding, measures are in place to minimise emissions of methane from rice cultivation, which may include shallow flooding, mid-season drying events, off-season straw.

Soil management

The Farm Sustainability Plan describes soil management and cropping practices deployed in non-perennial crop production in order to protect and improve soil health and organic matter content. Practices are chosen and applied with appropriate care given to key, site-specific soil threats, including soil erosion from wind and water, loss of organic matter, salinisation, compaction, soil acidification, with the objective to prevent, minimise or mitigate the effect of the relevant soil degradation.

The following practices are not used:

(a)practices that disturb histosols and organic soils;

(b)artificially lowering water tables on histosols and organic soils;

(c)mechanical weeding with inversion tillage between rows;

(d)burning of crop residues (except where an exemption has been granted for plant health reasons). 15

Good soil management practices are in place, including:

(a)practices avoiding or minimizing compaction from the use of heavy machinery;

(b)practices aimed at minimizing soil erosion, which may include selection of appropriate crop and crop rotation, increased surface coverage (cover crops, catch crops, mulching), strip cropping, contour planting, intercropping, riparian buffers, tillage (reduced tillage, no-tillage), terraces, grassed waterways, vegetated buffer strips, windbreaks;

(c)practices aiming to increase soil organic matter, which may include managing crop residues, increase organic inputs (applying animal manure, using composts, mulches, cover crops, green manure, digestate from anaerobic digestion plants);

(d)management practices protecting histosols or peatlands from nutrient leaching and decline in organic matter, which may include decreasing water losses, increasing water supply, enlarging water storage with hollows, active water management, paludiculture on wet/rewetted peatlands;

(e)limiting tillage operations with preference to minimum or non-inversion tillage.

Nutrient management

The Farm Sustainability Plan describes practices performed in non-perennial crop production aiming at minimizing emissions and leaching of excess nutrients to surface and groundwater bodies and nutrient losses to air.

Good nutrient management practices are in place to significantly reduce nutrient losses and the use of fertilisers, going beyond the requirements laid down in Directive 91/676/EEC (and the applicable Nitrate Action Plan) and Directive (EU) 2016/2284 of the European Parliament and of the Council 16  (and the applicable Programme of Action). Relevant practices in this category include:

(a)implementing a crop nutrient management and fertilisation plan, established with the help of guidelines and software, aiming to improve nutrient use efficiency and minimise nutrient surpluses at holding/field level. That plan is based on:

(I)systematic and periodic soil testing to determine, maintain and restore optimum pH range and appropriate nutrient levels in soil;

(II)budgeting on nutrients inputs/outputs at holding/field level by establishing the ratio of nutrients (N, P and K) contained in crop and livestock products exported from the farm/field to nutrient inputs to the farm/field, including as fertiliser and feed, taking into account field cropping and yield history, crop residues, soil nutrient level and nutrient providing capacity and planned yields; relevant farm records can be used to calculate all nutrient inputs and outputs.

(b)application techniques reducing ammonia emissions when slurry, solid manure and chemical fertilisers are applied to agricultural soils, which may include injection of slurry below the soil surface; appropriate timing, spreading rate and care for buffer zones in case of land application; nitrification inhibitors; use of variable rate technology and precision farming techniques and technology combining application of chemical fertiliser with seeding; incorporating solid manure into arable soils as soon as possible after spreading; banded spreading of slurry on grasslands reducing overall surface spreading; store manure heap temporarily on field prior to spreading and away from watercourses, change the storage site from year to year;

(c)in medium- and high-input farms 17 , low-emission nutrient storage and application technologies, which may include cooling of liquid manure, covering manure stores, or slurry acidification, slurry injection, band spreading, incorporating manure in the soil as soon as possible on the day of application to field, fertiliser spreaders with low coefficient of variation, injection.

High-diversity landscape features

A minimum share of 10 % of the agricultural area is covered with high-diversity landscape features, including hedges, tree groups or single trees, or with non-productive landscape features, including flower strips, buffer strips, terrace walls, ponds, to protect against soil erosion and contribute to carbon sequestration.

Energy efficiency

The Farm Sustainability Plan describes how the holding has optimised its energy mix by applying the ‘energy efficiency first’ principle and how energy savings strategies are implemented.

Substantial contribution to climate change mitigation

1. Protection of non-agricultural land with high carbon stock from land use change

(a)Perennial crops are not grown on land with high carbon stock, namely on land that had one of the following statuses on the reference date referred to in Articles 29 (3), (4) and (5) of Directive (EU) 2018/2001 and no longer has that status:

(I)wetlands, namely land that is covered with or saturated by water permanently or for a significant part of the year;

(II)continuously forested areas, namely land spanning more than one hectare with trees higher than five metres and a canopy cover of more than 30 %, or trees able to reach those thresholds in situ;

(III)land spanning more than one hectare with trees higher than five metres and a canopy cover of between 10 % and 30 %, or trees able to reach those thresholds in situ;

(IV)peatland, unless evidence is provided that the cultivation and harvesting of the crop does not involve drainage of previously undrained soil.

(b)Where growing of perennial crops includes the management of permanent grassland, the permanent grassland is maintained.

2. Establishment of a Farm Sustainability Plan

A Farm Sustainability Plan sets out the agricultural holding’s strategy to contribute substantially to climate change mitigation by both reducing GHG emissions 18 and strengthening land carbon sinks (or, in case of saturation, maintaining land carbon stocks) 19 .

The Farm Sustainability Plan:

(a)describes the holding’s biophysical environment and cropping system including information on land use change referred to under point 1;

(b)measures the holding’s climate baseline, i.e. its average performance in terms of GHG emissions and carbon sequestration in the five years prior to the start of the project;

(c)identifies the management practices with the highest potential to substantially contribute to climate change mitigation, and quantify this potential contribution;

(d)identifies the management practices that ensure the compliance with the relevant Do No Significant Harm (‘DNSH’) criteria set out in Section 1.2 of this Annex, where applicable.

3. Compliance with essential management practices

To demonstrate that its activities contribute substantially to climate change mitigation and based on the information presented in the Farm Sustainability Plan, the agricultural holding consistently deploys all of the essential management practices listed in Appendix A to this Annex, except those that are clearly not applicable to that holding.

4. Farm records

The agricultural holding keeps a yearly record of its climate performance, including:

(a)information on the deployment of management practices;

(b)information on GHG emissions and removals, that:

(I)is based on best available data;

(II)is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories, including the good practices regarding the consistency between AFOLU projects or activities and IPCC inventory guidelines 20 .

5. Verification of compliance with technical screening criteria

The information in the yearly records and the Farm Sustainability Plan and is verified to be complete, correct and of high quality.

That verification is carried out by an independent third-party body at the request of the agricultural holding at the beginning of the investment period and every three years thereafter.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 21 .

Where the activity involves water abstraction, a permit for water abstraction has been granted by the relevant authority for the activity, specifying conditions to avoid significant impact on water bodies.

(4) Transition to a circular economy

Non-natural waste materials generated in the course of growing of non-perennial crops, including used protected cultivation films, unused agrochemicals or fertilisers, packaging, net wraps, are collected by certified waste management operator and recycled or disposed, if hazardous or otherwise not recyclable. Natural (organic) materials and other suitable wastes, including pesticide washings are used for agricultural benefit.

(5) Pollution prevention and control

The application of nutrients (fertilisers) and plant protection products, including pesticides and herbicides, is targeted regarding time and area treated, is delivered at appropriate levels and with appropriate equipment and techniques to reduce risk and impacts of pesticide use on human health and the environment and of the loss of excess nutrients 22 .

Particularly in zones affected by nitrogen pollution and waters which could be affected by pollution, nitrogen applications are consistent with good agricultural practice and take into account the characteristics of the vulnerable zone concerned, in particular:

(a) soil conditions, soil type and slope;

(b) climatic conditions, rainfall and irrigation;

(c) land use and agricultural practices, including crop rotation systems.

Nitrogen applications are to be based on a balance between:

(a)the expected nitrogen requirements of the crops;

(b)the nitrogen supply to the crops from the soil and from fertilisation corresponding to:

(I)the amount of nitrogen present in the soil at the moment the crop starts to use it to a significant degree (outstanding amounts at the end of winter);

(II)the supply of nitrogen through the net mineralisation of the reserves of organic nitrogen in the soil;

(III)additions of nitrogen compounds from livestock manure;

(IV)additions of nitrogen compounds from chemical and other fertilisers.

Measures are taken to ensure that, for each agricultural holding, the amount of livestock manure applied to the land each year, including by the animals themselves, does not exceed 170 kg N ha-1 per hectare or different amounts in accordance with the conditions set out in Annex II to Council Directive 91/676/EEC 23 .

Only plant protection products with active substances that ensure high protection of human and animal health and the environment are used 24 .

(6) Protection and restoration of biodiversity and ecosystems

Activities ensure the protection of soil, particularly over winter, to prevent erosion and run-off into water courses/bodies and to maintain soil organic matter 25 .

Activities do not lead to the disturbance, capture or killing of legally protected species or the deterioration of legally protected habitats.

Activities do not lead to the conversion, fragmentation or unsustainable intensification of high-nature-value land, wetlands, forests, or other lands of high-biodiversity value 26 , including highly biodiverse grassland spanning more than one hectare that is one of the following:

(a)natural, namely grassland that would remain grassland in the absence of human intervention and that maintains the natural species composition and ecological characteristics and processes of that grassland;

(b)non-natural, namely grassland that would cease to be grassland in the absence of human intervention and that is species-rich and not degraded and has been identified as being highly biodiverse by the relevant competent authority.

For sites/operations located in or near to biodiversity-sensitive areas (including the Natura 2000 network of protected areas, UNESCO World Heritage sites and Key Biodiversity Areas (‘KBAs’), as well as other protected areas):

(a)activities do not lead to the deterioration of natural habitats and the habitats of species and to disturbance of the species for which the protected area have been designated.

(b)activities are carried out in accordance with the conclusions of an appropriate assessment 27 , where applicable, and necessary mitigation measures 28 have been implemented accordingly 29 .

The cultivation of alien species complies with the applicable rules regarding the risk, monitoring and safeguards in accordance with Regulation (EU) No 1143/2014 30 . Species on the list of invasive alien species of Union concern and alien species on Member States national lists of species that are considered invasive or high risk are not cultivated. Alien species not included in the above-mentioned lists are cultivated only where there is negligible risk of invasion, following the relevant assessment process.

Management category

Growing of perennial crops: essential management practice

Soil management

The Farm Sustainability plan describes practices deployed in perennial crop production aiming to avoid soil compaction, water logging, soil erosion and loss of soil organic matter.

The following practices are not used:

(a)practices that disturb histosols and organic soils;

(b)artificially lowering water tables on histosols and organic soils;

(c)mechanical weeding with inversion tillage between rows;

(d)burning of crop residues, except where an exemption has been granted for plant health reasons 31 .

Good soil management practices are in place, including:

(a)practices avoiding or minimizing compaction from the use of heavy machinery

(b)weeding techniques to conserve moisture and reduce soil disturbance to minimum, which may include mowing of plant cover between the rows

(c)establishing inter-row or between row soil coverage, which may include mulching, grass cover, growing of green manure crops, taking into account local climatic conditions, in order to improve soil moisture and fertility.

Nutrient management

The Farm Sustainability plan describes practices performed in perennial crop production aiming at minimizing emissions and leaching of excess nutrients to surface and groundwater bodies and nutrient losses to air.

Good nutrient management practices are in place to significantly reduce nutrient losses and the use of fertilisers, going beyond the requirements laid down in Directive 91/676/EEC (and the applicable Nitrate Action Plan) and Directive (EU) 2016/2284 (and the applicable Programme of Action). Relevant practices in this category include:

(a)implementing a crop fertilisation management plan, established with the help of guidelines and software, aiming to improve nutrient use efficiency and minimise nutrient surpluses at plantation/orchards level. The crop fertilisation management plan is based on:

(I)systematic and periodic soil testing to determine, maintain and restore optimum pH range and appropriate nutrient levels in soil, in particular at times prior to establishing new plantation/orchards;

(II)regular assessment of the balance of nutrient supply through plant parts and leaves diagnostics;

(b)fertilisation management aims at providing the necessary macro-nutrient and essential micronutrients efficiently throughout the growing seasons in accordance with the crop consumption, taking into consideration the species and varieties, expected yield and performed soil/leaf analysis as appropriate;

(c)application of appropriate fertilisation techniques, which avoids leaching of nutrients, which may include irrigation by drip, micro sprinklers, or micro-jets, enabling fertilisation that delivers the nutrient directly to the rooting system;

(d)maintaining grass cover or green cover/manure in row spacing in order to improve soil organic matter;

(e)in medium- and high-input farms 32 , low-emission nutrient storage and application technologies, which may include cooling of liquid manure, covering manure stores, or slurry acidification, slurry injection, band spreading, incorporating manure in the soil as soon as possible on the day of application to field , fertiliser spreaders with low coefficient of variation, injection. 

High-diversity landscape features

A minimum share of 10 % of the agricultural area is covered with high-diversity landscape features, including hedges, tree groups or single trees, or with non-productive landscape features, including flower strips, buffer strips, terrace walls, ponds, to protect against soil erosion and contribute to carbon sequestration.

Energy efficiency

The Farm Sustainability Plan describes how the holding has optimised its energy mix by applying the ‘energy efficiency first’ principle and energy savings strategies implemented.

Substantial contribution to climate change mitigation

1. Protection of non-agricultural land with high carbon stock from land use change

(a)The livestock production is not undertaken on land with high carbon stock, namely on land that had one of the following statuses on the reference date referred to in Articles 29 (3), (4) and (5) of Directive (EU) 2018/2001 and no longer has that status:

(I)wetlands, namely land that is covered with or saturated by water permanently or for a significant part of the year;

(II)continuously forested areas, namely land spanning more than one hectare with trees higher than five metres and a canopy cover of more than 30 %, or trees able to reach those thresholds in situ;

(III)land spanning more than one hectare with trees higher than five metres and a canopy cover of between 10 % and 30 %, or trees able to reach those thresholds in situ;

(IV)peatland, unless evidence is provided that the cultivation and harvesting of the crop does not involve drainage of previously undrained soil.

(b)Where livestock production includes the management of permanent grassland, the permanent grassland is maintained.

2. Establishment of a Farm Sustainability Plan

A Farm Sustainability Plan sets out the agricultural holding’s strategy to contribute substantially to climate change mitigation by both reducing GHG emissions 33 and strengthening land carbon sinks (or, in case of saturation, maintaining land carbon stocks) 34 .

The Farm Sustainability Plan:

(a)describes the holding’s biophysical environment and growing system including information on land use change referred to under point 1;

(b)measures the holding’s climate baseline, i.e. its average performance in terms of GHG emissions and carbon sequestration in the five years prior to the start of the project;

(c)identifies the management practices with the highest potential to contribute substantially to climate change mitigation and quantifies this potential contribution;

(d)identifies the management practices that ensure the compliance with the relevant Do No Significant Harm (‘DNSH’) criteria set out in Section 1.3 of this Annex, where applicable.

3. Compliance with essential management practices

To demonstrate that its activities contribute substantially to climate change mitigation and based on the information presented in the Farm Sustainability Plan, the agricultural holding consistently deploys all of the essential management practices listed in Appendix A to this Annex, except those that are clearly not applicable to that holding.

4. Farm records

The agricultural holding keeps a yearly record of its climate performance, including:

(a)information on the deployment of management practices;

(b)information on GHG emissions and removals, that:

(I)is based on best available data;

(II)is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories, including the good practices regarding the consistency between AFOLU projects or activities and IPCC inventory guidelines 35 .

5. Verification of compliance with technical screening criteria

The information in the yearly records and the Farm Sustainability Plan is verified to be complete, correct and of high quality.

That verification is carried out by an independent third-party body at the request of the agricultural holding at the beginning of the investment period and every three years thereafter

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

The activity complies with the criteria set out in Appendix E of this Annex.

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 36 .

Where the activity involves water abstraction, a permit for water abstraction has been granted by the relevant competent authority for the activity, specifying conditions to avoid significant impact on water bodies.

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

The application of nutrients (fertilisers) and plant protection products, including pesticides and herbicides, is targeted regarding time and area treated, is delivered at appropriate levels and with appropriate equipment and techniques to reduce risk and impacts of pesticide use on human health and the environment and of the loss of excess nutrients 37 .

Particularly in zones affected by nitrogen pollution and waters which could be affected by pollution, nitrogen applications are consistent with good agricultural practice and take into account the characteristics of the vulnerable zone concerned, in particular:

(a) soil conditions, soil type and slope;

(b) climatic conditions, rainfall and irrigation;

(c) land use and agricultural practices, including crop rotation systems.

Nitrogen applications are to be based on a balance between:

(a)the expected nitrogen requirements of the crops;

(b)the nitrogen supply to the crops from the soil and from fertilisation corresponding to:

(I)the amount of nitrogen present in the soil at the moment the crop starts to use it to a significant degree (outstanding amounts at the end of winter);

(II)the supply of nitrogen through the net mineralisation of the reserves of organic nitrogen in the soil;

(III)additions of nitrogen compounds from livestock manure;

(IV)additions of nitrogen compounds from chemical and other fertilisers.

Measures are taken to ensure that, for each agricultural holding, the amount of livestock manure applied to the land each year, including by the animals themselves, does not exceed 170 kg N ha-1 per hectare or different amounts in accordance with the conditions set out in Annex II to Council Directive 91/676/EEC 38 .

Only plant protection products with active substances that ensure high protection of human and animal health and the environment are used 39 .

(6) Protection and restoration of biodiversity and ecosystems

Activities ensure the protection of soil, particularly over winter, to prevent erosion and run-off into water courses/bodies and to maintain soil organic matter 40 .

Activities do not lead to the disturbance, capture or killing of legally protected species or the deterioration of legally protected habitats.

Activities do not lead to the conversion, fragmentation or unsustainable intensification of high-nature-value land, wetlands, forests, or other lands of high-biodiversity value 41 , including highly biodiverse grassland spanning more than one hectare that is one of the following:

(a)natural, namely grassland that would remain grassland in the absence of human intervention and that maintains the natural species composition and ecological characteristics and processes of that grassland;

(b)non-natural, namely grassland that would cease to be grassland in the absence of human intervention and that is species-rich and not degraded and has been identified as being highly biodiverse by the relevant competent authority.

For sites/operations located in or near to biodiversity-sensitive areas (including the Natura 2000 network of protected areas, UNESCO World Heritage sites and Key Biodiversity Areas (‘KBAs’), as well as other protected areas):

(a)activities do not lead to the deterioration of natural habitats and the habitats of species and to disturbance of the species for which the protected area have been designated;

(b)activities are carried out in accordance with the conclusions of an appropriate assessment 42 , where applicable, and necessary mitigation measures 43 have been implemented accordingly 44 .

The cultivation of alien species complies with the applicable rules regarding the risk, monitoring and safeguards in accordance with Regulation (EU) No 1143/2014 45 . Species on the list of invasive alien species of Union concern and alien species on Member States national lists of species that are considered invasive or high risk are not cultivated. Alien species not included in the above-mentioned lists are cultivated only where there is negligible risk of invasion, following the relevant assessment process.

Management category

Livestock production: essential management practice

Animal Husbandry:

Herd management

The Farm Sustainability Plans describes practices that can reduce the GHG emission footprint of the holding via more efficient herd management.

Good herd management practices are used, including:

(a)breed selection adapted to the local conditions and according to the farm type, which may include selection of locally adapted and traditional breeds and strains, more resource-efficient breeds with higher yields with lower GHG intensities;

(b)animal health management practices in order to maintain animal health, reduce the need for veterinary treatments and minimise stock morbidity and mortality;

(c)practices optimizing herd/flock profile management in order to mitigate methane emissions from enteric fermentation and optimise resource efficiency by increasing productivity, including optimizing culling age, increasing longevity of animals by improving animal health, optimizing fertility rate where high fertility rates contribute to lower GHG emissions.

Animal Husbandry:

Feeding

The Farm Sustainability plan describes the practices that can reduce the nitrogen load and associated GHG emissions to the environment through feeding regimes and techniques.

Good feeding practices are used, including:

(a)practices that reduce GHG emission through dietary reduction of nitrogen excretion, which may include using high-sugar grasses or maize silage for ruminants, applying phase feeding, using low-protein feeds, such as low-dry-matter alfalfa silage, multiphase feeding with a diet formulation adapted to the specific requirements of the production period, reducing the crude protein content by using a N-balanced diet based on the energy needs and digestible amino acids;

(b)dietary practices that reduce methane emissions from enteric fermentation of ruminants, which may include increasing forage digestibility and digestible forage intake; use of authorised feed additives, which reduces methane emissions from enteric fermentation;

(c)sustainable procurement of feed - when purchasing feeds with large potential upstream impacts, including indirect land use change, for instance, soya and palm oil based feeds, selecting feeds that are sustainably sourced and certified by a recognised body as being from areas not recently converted from natural habitats.

Manure management

The Farm Sustainability plan describes the installations and practices performed in livestock production aiming at minimizing ammonia and methane emissions and leaching of nitrates from livestock manure handling, storage and spreading.

Good manure management practices are used, including:

(a)anaerobic digestion - treat slurries and manures in an on-farm anaerobic digestion system or at an adjacent anaerobic digestion plant to produce biogas that can be captured and used to generate heat and electricity or upgraded to biomethane, displacing fossil fuels; treatment of farm manure off-site in industrial installations;

(b)treatment of slurries and manures in an on-farm facility, which may include separation of the on-farm generated slurries or the digestate from on-farm anaerobic digestion into solid and liquid fractions prior to storage and application to agricultural land and use of manure additives reducing the gaseous emissions;

(c)appropriate slurry processing and storage systems for slurry or digestate, which may include appropriate slurry storage systems reducing emissions from surface by reducing the surface area/volume ratio, cooling of slurry, minimizing stirring of slurry, applying slurry acidification, adequate slurry storage capacity;

(d)appropriate solid manure handling and storage to reduce emissions and run-offs, which may include minimizing the emitting surface area of manure heap, coverage of manure heap or manure store located away from watercourses, manure heap temporarily stored on field prior to spreading are located away from watercourses and the storage site varies from year to year, collection of any potential run-off and diverting into either an on-site liquid slurry system or back into the manure heap;

(e)application techniques to reduce ammonia emissions when slurry and solid manure are applied to agricultural soils, which may include injection of slurry below the soil surface, incorporating solid manure into arable soils as soon as possible on the same day of application to field, banded spreading on grasslands reducing overall surface spreading;

(f)nutrient management practices to reduce significantly nutrient losses and the use of fertilisers, going beyond the requirements laid down in Directive 91/676/EEC (and the applicable Nitrate Action Plan) and in Directive (EU) 2016/2284 (and the applicable Programme of Action). Relevant practices in this category are those that improve nutrient use efficiency and ensure balanced nitrogen fertilisation, such as by using fertilisation plans for the growing season (backed up with software support of publications for computing support), nitrification inhibitors, enhancing nutrient retention in soils, appropriate timing, spreading rate and care for buffer zones in case of land application and by using variable rate technology and precision farming.

Soil management

The Farm Sustainability plan describes practices that preserve grasslands and meadows (either grazed or mowed for hay/silage) jointly managed with livestock production, and avoid soil compaction, water logging, soil erosion and loss of soil organic matter.

The following practices are not used:

(a)practices that disturb histosols and organic soils;

(b)artificially lowering water tables on histosols and organic soils.

Good soil management practices are used, including:

(a)practices that avoid or minimise compaction from the use of heavy machinery;

(b)limiting tillage operations with preference to minimum or non-inversion tillage;

(c)adjusting stocking density to soil conditions to avoid compaction on wet soils;

(d)grassland management practices that make the best possible use of grass areas used for grazing by livestock farms by optimizing pasture growth rate and pasture quality as well as its utilisation by livestock, except in extensive grazing systems, while ensuring that average grass cover rates are achieved at critical times of the year, which may include optimum grazing times based on local circumstances and grass height monitoring, implementing rotational and strip grazing, pasture renovation to improve quality.

Energy use

The Farm Sustainability Plan describes how the holding has optimised its energy mix by applying the energy efficiency first principle and energy savings strategies,

Substantial contribution to climate change mitigation

1. Afforestation plan

1.1. The area on which the activity takes place is covered by a long-term (10 years or more) afforestation plan developed prior to the start of the activity, until this area matches the definition of forest used in the national greenhouse gas inventory or where not available, is in line with the FAO definition of forest.

The afforestation plan contains all elements required by the national law relating to environmental impact assessment of afforestation or, where such a national law does not exists, the plan includes detailed information on the following:

(a)description of the area according to its gazetting in the land registry;

(b)site preparation and its impacts on pre-existing carbon stocks, including soils and above-ground biomass, in order to protect land with high carbon stock;

(c)management goals, including major constraints;

(d)general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle;

(e)definition of the forest habitat context, including main existing and intended forest tree species, and their extent and distribution;

(f)compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions;

(g)measures deployed to maintain the good condition of forest ecosystems;

(h)consideration of social issues (preservation of landscape, consultation of concerned stakeholders);

(i)assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection against residual risks.

1.2. The activity follows the best afforestation practices laid down in national law, or, where no such best afforestation practices have been laid down in national law, the activity complies with one of the following criteria:

(a)the activity complies with Commission Delegated Regulation (EU) No 807/2014 48 ;

(b)the activity follows the “Pan-European Guidelines for Afforestation and Reforestation with a special focus on the provisions of the UNFCCC” 49 ;

(c)the management systems associated with the activity in place complies with the forest sustainability criteria laid down in Article 29(6) of Directive (EU) 2018/2001 of the European Parliament and of the Council 50 , and as of the date of its application with the implementing act establishing the operational guidance for energy from forest biomass adopted under Article 29(8) of that Directive.

1.3. The management systems associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010 of the European Parliament and of the Council 51 .

1.4. All DNSH criteria relevant to afforestation are addressed in the afforestation plan.

1.5. The afforestation plan provides for monitoring that ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area.

1.6. At the beginning of the activity and every five years thereafter, the compliance of the activity with the afforestation plan is verified by the relevant national competent authorities, or by an independent third-party certifier, such as forest certification scheme, at the request of national authorities or of the operator of the activity.

The independent third-party certifier is not directly linked to the owner or the funder, and not involved in the development or operation of the activity.

2. Climate benefit analysis

2.1. The climate benefits analysis establishes a baseline, corresponding to the balance of GHG emissions and removals over a period of 20 years starting at the beginning of the activity, associated to the business-as-usual practices that would have occurred on the involved area in the absence of the afforestation activity, and provides an estimate of the long-term average GHG balance of those business-as-usual practices.

The business as-usual practices can be one of the following:

(a)the management practices as documented in the latest version of the forest management plan or equivalent instrument before the start of the activity, if any;

(b)the most recent business-as-usual practices prior to the start of the activity;

(c)the practices corresponding to a management system ensuring that carbon stocks and sinks levels in the forest area are maintained or strengthened over the long term as set out in Article 29(7), point (b), of Directive (EU) 2018/2001.

Information on the emissions and removals used for the baseline is transparent, accurate, consistent, complete and comparable.

2.2. The climate benefit analysis demonstrate both of the following:

(a)the net balance of GHG emissions and removals generated by the activity over a period of 20 years after the beginning of the activity is higher that the baseline referred to in point 2.1;

(b)the projected long-term average GHG balance of the activity is higher than the long-term average GHG balance projected for the baseline, referred to in point 2.1.

The climate benefit analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories regarding the consistency between AFOLU projects and activities and IPCC inventory guidelines 52 .

The climate benefit analysis is based on the most conservative assumptions for calculations and includes appropriate considerations about the risks of non-permanence and reversals of carbon sequestration, the risk of saturation and the risk of leakage.

Where the plan referred to in point 1 includes wood harvesting and removal for wood-based products, the scope of the analysis includes a consideration of the GHG emissions and removals induced by the production resulting from the planned wood harvesting and removal for wood-based products, unless it is de minimis for the calculation of the climate benefit to exclude this consideration.

2.3. Emissions and removals that occur due to natural disturbances, such as pests and diseases infestations, forest fires, wind, storm damages, that impacts the area and cause underperformance do not result in non-compliance with the criteria of Regulation (EU) 2020/852, provided that the climate benefit analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas on emissions and removals due to natural disturbances.

2.4. At the beginning of the period and every five years thereafter, the correctness of the climate benefits analysis, including with regard to the emissions and removals monitored on the area, is controlled by either of the following:

(a)the relevant national competent authorities;

(b)an independent third-party certifier, at the request of national authorities or the operator of the activity.

3. Additionality

3.1. The additionality of activity is demonstrated. The demonstration provides evidence ensuring that the activity is not compulsory or customary and that, without the activity being activity being accepted for financing as a sustainable investment, based on the recognition that activity complies with Regulation 2020/853, one of the following conditions would have been met:

(a)the activity would not have been implemented or its economic, environmental or social aspects would have been significantly altered;

(b)the activity would have not been possible due to knowledge or behavioural barriers;

(c)the area would be converted and used for other activities, having negative impacts on climate mitigation.

3.2. The additionality of the activity is demonstrated by either of the following:

(a)a relevant national competent authority if any,

(b)an independent third-party certifier, at the request of national authorities, or the operator of the activity.

4. Guarantee of permanence

The area on which the activity takes place is covered by a legal protection as defined by the national law, ensuring its non-conversion to other land uses. The operator of the activity commits that future updates to the afforestation plan and the subsequent forest management plan or equivalent instrument will continue to deliver climate benefits, as determined in point 2.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed in the plan referred to inpoint 1 of this Section and controlled by the relevant independent third party certifier, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 53 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

The use of pesticides is reduced and alternative approaches or techniques, which may include non-chemical alternatives to pesticides, are favoured, in accordance with Directive 2009/128/EC of the European Parliament and of the Council 54 , with exception of occasions where the use of pesticides is needed to control outbreaks of pests and of diseases. The activity does not use fertilisers.

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in the Stockholm Convention on Persistent Organic Pollutants 55 , the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade 56 , the Minamata Convention on Mercury 57 , the Montreal Protocol on Substances that Deplete the Ozone Layer 58 , and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO Recommended Classification of Pesticides by Hazard 59 . The activity complies with the relevant national implementing law on active ingredients.

Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs.

(6) Protection and restoration of biodiversity and ecosystems

In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas.

There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law.

The plan referred to in point 1 of this Section includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

(a)ensuring the good conservation status of habitat and species, maintenance of typical habitat species;

(b)excluding the use or release of invasive alien species;

(c)excluding the use of non-native species unless it can be demonstrated that:

(I)the use of the forest reproductive material leads to favourable and appropriate ecosystem conditions (such as climate, soil criteria, and vegetation zone, forest fire resilience);

(II)the native species currently present on the site are not anymore adapted to projected climatic and pedo-hydrological conditions;

(d)ensuring the maintenance of soil structure and fertility and soil biodiversity;

(e)promoting close-to-nature forestry or similar concepts adapted to the local conditions;

(f)excluding the conversion of high-biodiverse ecosystems into less biodiverse ones;

(g)ensuring the diversity of associated habitats and species linked to the forest;

(h)ensuring the diversity of stand structures and maintenance or enhancing of mature stage stands and dead wood.

Substantial contribution to climate change mitigation

1. Forest management plan or equivalent instrument

1.1. The activity takes place on area that is subject to a forest management plan or an equivalent instrument, as set out in national law or, where national law does not define a forest management plan or equivalent instrument, as referred to in the FAO definition of ‘forest area with long-term forest management plan’ 61 .

The forest management plan or the equivalent instrument covers a period of 10 years or more, is continuously updated and describes a forest management system by providing detailed information on the following:

(a)management goals, including major constraints 62 ;

(b)general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle;

(c)definition of the forest habitat context, including main existing and intended forest tree species, and their extent and distribution;

(d)definition of the area according to its gazetting in the land registry;

(e)compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions;

(f)measures deployed to maintain the good condition of forest ecosystems;

(g)consideration of social issues (preservation of landscape, consultation of stakeholders);

(h)assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection against residual risks.

1.2 The sustainability of the forest management systems, as documented in the plan referred to in point 1.1, is ensured through one of the following approaches:

(a)the forest management matches the applicable national definition of sustainable forest management,

(b)the management systems in place complies with the forest sustainability criteria laid down in Article 29(6) of Directive (EU) 2018/2001, and as of the date of its application with the implementing act on operational guidance for energy from forest biomass adopted under Article 29(8) of that Directive,

1.3. The management systems associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010.1.4. All DNSH criteria relevant to forest management are addressed in the forest management plan or equivalent instrument.

1.5. The forest management plan or equivalent instrument provides for monitoring which ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area.

1.6. At the beginning of the period and every five years thereafter, the compliance of forest management with the forest management plan or equivalent instrument, is controlled by the relevant national competent authorities or by an independent third-party certifier such as a forest certification scheme, at the request of national authorities or the operator of the activity.

The independent third-party certifier is not directly linked to the owner or the funder, and not involved in the development or operation of the activity.

2. Climate benefit analysis

2.1. The climate benefits analysis establishes a baseline, corresponding to the balance of GHG emissions and removals over a period of 20 years starting at the beginning of the activity, associated to the business-as-usual practices that would have occurred on the involved area in the absence of the afforestation activity, and provides an estimate of the long-term average GHG balance of those business-as-usual practices.

The business as-usual practices can be one of the following:

(a)the management practices as documented in the latest version of the forest management plan or equivalent instrument before the start of the activity, if any;

(b)the most recent business-as-usual practices prior to the start of the activity;

(c)the practices corresponding to a management system ensuring that carbon stocks and sinks levels in the forest area are maintained or strengthened over the long term as set out in Article 29(7), point (b), of Directive (EU) 2018/2001.

Information on the emissions and removals used for the baseline is transparent, accurate, consistent, complete and comparable.

2.2. The climate benefit analysis demonstrate both of the following:

(a)the net balance of GHG emissions and removals generated by the activity over a period of 20 years after the beginning of the activity is higher that the baseline referred to in point 2.1;

(b)the projected long-term average GHG balance of the activity is higher than the long-term average GHG balance projected for the baseline, referred to in point 2.1.

The climate benefit analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories regarding the consistency between AFOLU projects and activities and IPCC inventory guidelines 63 .

The climate benefit analysis is based on the most conservative assumptions for calculations and includes appropriate considerations about the risks of non-permanence and reversals of carbon sequestration, the risk saturation and the risk of leakage.

Where the plan referred to in point 1 includes wood harvesting and removal for wood-based products, the scope of the analysis includes a consideration of the GHG emissions and removals induced by the production resulting from the planned wood harvesting and removal for wood-based products, unless it is de minimis for the calculation of the climate benefit to exclude this consideration.

2.3. Emissions and removals that occur due to natural disturbances, such as pests and diseases infestations, forest fires, wind, storm damages, that impacts the area and cause underperformance do not result in non-compliance with the criteria of Regulation (EU) 2020/852, provided that the climate benefit analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas on emissions and removals due to natural disturbances.

2.4. At the beginning of the period and every five years thereafter, the correctness of the climate benefits analysis, including with regard to the emissions and removals monitored on the area, is controlled by either of the following:

(a)the relevant national competent authorities;

(b)an independent third-party certifier, at the request of national authorities or the operator of the activity.

3. Additionality

3.1. The additionality of activity is demonstrated. The demonstration provides evidence ensuring that the activity is not compulsory or customary and that, without the activity being accepted for financing as a sustainable investment, based on the recognition that activity complies with Regulation 2020/853, one of the following conditions would have been met:

(a)the activity would not have been implemented or its economic, environmental or social aspects would have been significantly altered;

(b)the activity would have not been possible due to knowledge or behavioural barriers;

(c)the area would be converted and used for other activities, having negative impacts on climate mitigation.

3.2. The additionality of the activity is demonstrated by either of the following:

(a)a relevant national competent authority if any,

(b)an independent third-party certifier, at the request of national authorities, or the operator of the activity.

4. Guarantee of permanence

The area on which the activity takes place is covered by a legal protection as defined by the national law, ensuring its non-conversion to other land uses. The operator of the activity commits that future updates to the afforestation plan and the subsequent forest management plan or equivalent instrument will continue to deliver climate benefits, as determined in point 2.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed in the plan referred to in point 1 of this Section and controlled by the relevant independent third-party certifier, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 64 .

(4) Transition to a circular economy

The silvicultural change induced by the activity is not likely to result in a significant reduction in the long-term circularity of wood products from the forest.

(5) Pollution prevention and control

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

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in the Stockholm Convention on Persistent Organic Pollutants, the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO Recommended Classification of Pesticides by Hazard. The activity complies with the relevant national implementing law on active ingredients.

Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs.

(6) Protection and restoration of biodiversity and ecosystems

In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas.

There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law.

The plan referred to in point 1 of this Section includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

(a)ensuring the good conservation status of habitat and species, maintenance of typical habitat species;

(b)excluding the use or release of invasive alien species;

(c)excluding the use of non-native species unless it can be demonstrated that:

(I)the use of the forest reproductive material leads to favourable and appropriate ecosystem conditions (such as climate, soil criteria, and vegetation zone, forest fire resilience);

(II)the native species currently present on the site are not anymore adapted to projected climatic and pedo-hydrological conditions;

(d)ensuring the maintenance of soil structure and fertility and soil biodiversity;

(e)promoting close-to-nature forestry or similar concepts adapted to the local conditions

(f)excluding the conversion of high-biodiverse ecosystems into less biodiverse ones;

(g)ensuring the diversity of associated habitats and species linked to the forest;

(h)ensuring the diversity of stand structures and maintenance or enhancing of mature stage stands and dead wood.

Substantial contribution to climate change mitigation

1. Forest management plan or equivalent instrument

1.1. The activity takes place on area that is subject to a forest management plan or an equivalent instrument, as set out in national law or, where national law does not define a forest management plan or equivalent instrument, as referred to in the FAO definition of ‘forest area with long-term forest management plan’ 68 .

The forest management plan or the equivalent instrument covers a period of ten years or more, is continuously updated and describes a forest management system by providing the following detailed information:

(a)management goals, including major constraints 69 ;

(b)general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle;

(c)definition of the forest habitat context, including main existing and intended forest tree species, and their extent and distribution;

(d)definition of the area according to its gazetting in the land registry;

(e)compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions;

(f)measures deployed to maintain the good condition of forest ecosystems;

(g)consideration of social issues (preservation of landscape, consultation of stakeholders);

(h)assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection against residual risks.

1.2 The sustainability of the forest management systems, as documented in the plan referred to in point 1.1, is ensured through one of the following approaches:

(a)the forest management matches the applicable national definition of sustainable forest management,

(b)the management systems in place show compliance with the forest sustainability criteria set out in Article 29(6) of Directive (EU) 2018/2001, and as of the date of its application with the implementing act on operational guidance for energy from forest biomass adopted under Article 29(8) of that Directive

1.3. The management systems associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010.

1.4. All DNSH criteria relevant to forest management are addressed in the forest management plan.

1.5. The forest management plan or equivalent instrument provides for monitoring that ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area.

1.6. At the beginning of the period and every five years thereafter, the compliance of forest management with the forest management plan or equivalent instrument, is controlled by the relevant national competent authorities or by an independent third-party certifier such as a forest certification scheme, at the request of national authorities or the operator of the activity.

The independent third-party certifier is not directly linked to the owner or the funder, and not involved in the development or operation of the activity.

2. Climate benefit analysis

2.1. The climate benefits analysis establishes a baseline, corresponding to the balance of GHG emissions and removals over a period of 20 years starting at the beginning of the activity, associated to the business-as-usual practices that would have occurred on the involved area in the absence of the afforestation activity, and provides an estimate of the long-term average GHG balance of those business-as-usual practices.

The business as-usual practices can be one of the following:

(a)the management practices as documented in the latest version of the forest management plan or equivalent instrument before the start of the activity, if any;

(b)the most recent business-as-usual practices prior to the start of the activity;

(c)the practices corresponding to a management system ensuring that carbon stocks and sinks levels in the forest area are maintained or strengthened over the long term as set out in Article 29(7), point (b), of Directive (EU) 2018/2001.

Information on the emissions and removals used for the baseline is transparent, accurate, consistent, complete and comparable.

2.2. The climate benefit analysis demonstrate both of the following:

(a)the net balance of GHG emissions and removals generated by the activity over a period of 20 years after the beginning of the activity is higher that the baseline referred to in point 2.1;

(b)the projected long-term average GHG balance of the activity is higher than the long-term average GHG balance projected for the baseline, referred to in point 2.1.

The climate benefit analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories regarding the consistency between AFOLU projects and activities and IPCC inventory guidelines 70 .

The climate benefit analysis is based on the most conservative assumptions for calculations and includes appropriate considerations about the risks of non-permanence and reversals of carbon sequestration, the risk saturation and the risk of leakage.

Where the plan referred to in point 1 includes wood harvesting and removal for wood-based products, the scope of the analysis includes a consideration of the GHG emissions and removals induced by the production resulting from the planned wood harvesting and removal for wood-based products, unless it is de minimis for the calculation of the climate benefit to exclude this consideration.

2.3. Emissions and removals that occur due to natural disturbances, such as pests and diseases infestations, forest fires, wind, storm damages, that impacts the area and cause underperformance do not result in non-compliance with the criteria of Regulation (EU) 2020/852, provided that the climate benefit analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas on emissions and removals due to natural disturbances.

2.4. At the beginning of the period and every five years thereafter, the correctness of the climate benefits analysis, including with regard to the emissions and removals monitored on the area, is controlled by either of the following:

(a)the relevant national competent authorities;

(b)an independent third-party certifier, at the request of national authorities or the operator of the activity.

3. Additionality

3.1. The additionality of activity is demonstrated. The demonstration provides evidence ensuring that the activity is not compulsory or customary and that, without the activity being accepted for financing as a sustainable investment, based on the recognition that activity complies with Regulation 2020/853, one of the following conditions would have been met:

(a)the activity would not have been implemented or its economic, environmental or social aspects would have been significantly altered;

(b)the activity would have not been possible due to knowledge or behavioural barriers;

(c)the area would be converted and used for other activities, having negative impacts on climate mitigation.

3.2. The additionality of the activity is demonstrated by either of the following:

(a)a relevant national competent authority if any,

(b)an independent third-party certifier, at the request of national authorities, or the operator of the activity.

4. Guarantee of permanence

The area on which the activity takes place is covered by a legal protection as defined by the national law, ensuring its non-conversion to other land uses. The operator of the activity commits that future updates to the afforestation plan and the subsequent forest management plan or equivalent instrument will continue to deliver climate benefits, as determined in point 2.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed in the plan referred to inpoint 1 of this Section and controlled by the relevant independent third-party certifier, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 71 .

(4) Transition to a circular economy

The silvicultural change induced by the activity is not likely to result in a significant reduction in the long-term circularity of wood products from the forest.

(5) Pollution prevention and control

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

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in the Stockholm Convention on Persistent Organic Pollutants, the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO Recommended Classification of Pesticides by Hazard 72 . The activity complies with the relevant national implementing law on active ingredients.

Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs.

(6) Protection and restoration of biodiversity and ecosystems

In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas.

There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law.

The plan referred to in point 1 of this Section includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

(a)ensuring the good conservation status of habitat and species, maintenance of typical habitat species;

(b)excluding the use or release of invasive alien species;

(c)excluding the use of non-native species unless it can be demonstrated that:

(I)the use of the forest reproductive material leads to favourable and appropriate ecosystem condition (such as climate, soil criteria, and vegetation zone, forest fire resilience);

(II)the native species currently present on the site are not anymore adapted to projected climatic and pedo-hydrological conditions;

(d)ensuring the maintenance of soil structure and fertility and soil biodiversity;

(e)promoting close-to-nature forestry or similar concepts adapted to the local conditions;

(f)excluding the conversion of high-biodiverse ecosystems into less biodiverse ones;

(g)ensuring the diversity of associated habitats and species linked to the forest;

(h)ensuring the diversity of stand structures and maintenance or enhancing of mature stage stands and dead wood.

Substantial contribution to climate change mitigation

1. Forest management plan or equivalent instrument

1.1. The activity takes place on area that is subject to a forest management plan or an equivalent instrument, as set out in national law or, where national law does not define a forest management plan or equivalent instrument, as referred to in the FAO definition of ‘forest area with long-term forest management plan’ 74 .

The forest management plan or equivalent instrument covers a period of ten years or more, is continuously updated and describes a forest management system by providing the following detailed information:

(a)management goals, including major constraints 75 ;

(b)general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle;

(c)definition of the forest habitat context, including main existing and intended forest tree species, and their extent and distribution;

(d)definition of the area according to its gazetting in the land registry;

(e)compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions;

(f)measures deployed to maintain the good condition of forest ecosystems;

(g)consideration of social issues (preservation of landscape, consultation of stakeholders);

(h)assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection against residual risks.

1.2 The sustainability of the forest management systems, as documented in the plan referred to in point 1.1, is ensured through one of the following approaches:

(c)the forest management matches the applicable national definition of sustainable forest management,

(d)the management systems in place show compliance with the forest sustainability criteria set out in Article 29(6) of Directive (EU) 2018/2001, and as of the date of its application with the implementing act on operational guidance for energy from forest biomass adopted under Article 29(8) of that Directive.

1.3. The management systems associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010.

1.4. All DNSH criteria relevant to forest management are addressed in the forest management plan.

1.5. The forest management plan or equivalent instrument provides for monitoring which ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area.

1.6. At the beginning of the period and every 5 years thereafter, the compliance of forest management with the forest management plan or equivalent instrument, is controlled by the relevant national competent authorities or by an independent third-party certifier such as a forest certification scheme, at the request of national authorities or the operator of the activity.

The independent third-party certifier is not directly linked to the owner or the funder, and not involved in the development or operation of the activity.

2. Climate benefit analysis

2.1. The climate benefits analysis establishes a baseline, corresponding to the balance of GHG emissions and removals over a period of 20 years starting at the beginning of the activity, associated to the business-as-usual practices that would have occurred on the involved area in the absence of the afforestation activity, and provides an estimate of the long-term average GHG balance of those business-as-usual practices.

The business as-usual practices can be one of the following:

(a)the management practices as documented in the latest version of the forest management plan or equivalent instrument before the start of the activity, if any;

(b)the most recent business-as-usual practices prior to the start of the activity;

(c)the practices corresponding to a management system ensuring that carbon stocks and sinks levels in the forest area are maintained or strengthened over the long term as set out in Article 29(7), point (b), of Directive (EU) 2018/2001.

Information on the emissions and removals used for the baseline is transparent, accurate, consistent, complete and comparable.

2.2. The climate benefit analysis demonstrate both of the following:

(a)the net balance of GHG emissions and removals generated by the activity over a period of 20 years after the beginning of the activity is higher that the baseline referred to in point 2.1;

(b)the projected long-term average GHG balance of the activity is higher than the long-term average GHG balance projected for the baseline, referred to in point 2.1.

The climate benefit analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories regarding the consistency between AFOLU projects and activities and IPCC inventory guidelines 76 .

The climate benefit analysis is based on the most conservative assumptions for calculations and includes appropriate considerations about the risks of non-permanence and reversals of carbon sequestration, the risk saturation and the risk of leakage.

Where the plan referred to in point 1 includes wood harvesting and removal for wood-based products, the scope of the analysis includes a consideration of the GHG emissions and removals induced by the production resulting from the planned wood harvesting and removal for wood-based products, unless it is de minimis for the calculation of the climate benefit to exclude this consideration.

2.3. Emissions and removals that occur due to natural disturbances, such as pests and diseases infestations, forest fires, wind, storm damages, that impacts the area and cause underperformance do not result in non-compliance with the criteria of Regulation (EU) 2020/852, provided that the climate benefit analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas on emissions and removals due to natural disturbances.

2.4. At the beginning of the period and every five years thereafter, the correctness of the climate benefits analysis, including with regard to the emissions and removals monitored on the area, is controlled by either of the following:

(a)the relevant national competent authorities;

(b)an independent third-party certifier, at the request of national authorities or the operator of the activity.

3. Additionality

3.1. The additionality of activity is demonstrated. The demonstration provides evidence ensuring that the activity is not compulsory or customary and that, without the activity being accepted for financing as a sustainable investment, based on the recognition that activity complies with Regulation 2020/853, one of the following conditions would have been met:

(a)the activity would not have been implemented or its economic, environmental or social aspects would have been significantly altered;

(b)the activity would have not been possible due to knowledge or behavioural barriers;

(c)the area would be converted and used for other activities, having negative impacts on climate mitigation.

3.2. The additionality of the activity is demonstrated by either of the following:

(a)a relevant national competent authority if any,

(b)an independent third-party certifier, at the request of national authorities, or the operator of the activity.

4. Guarantee of permanence

The area on which the activity takes place is covered by a legal protection as defined by the national law, ensuring its non-conversion to other land uses. The operator of the activity commits that future updates to the afforestation plan and the subsequent forest management plan or equivalent instrument will continue to deliver climate benefits, as determined in point 2.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed in the plan referred to point 1 of this Section and controlled by the relevant independent third-party certifier, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 77 .

(4) Transition to a circular economy

The silvicultural change induced by the activity is not likely to result in a significant reduction in the long-term circularity of wood products from the forest.

(5) Pollution prevention and control

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

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in the Stockholm Convention on Persistent Organic Pollutants, the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO Recommended Classification of Pesticides by Hazard 78 . The activity complies with the relevant national implementing law on active ingredients.

Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs.

(6) Protection and restoration of biodiversity and ecosystems

In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas.

There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law.

The plan referred to in point 1 of this Section includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

(a)ensuring the good conservation status of habitat and species, maintenance of typical habitat species;

(b)excluding the use or release of invasive alien species;

(c)excluding the use of non-native species unless it can be demonstrated that:

(I)the use of the forest reproductive material leads to favourable and appropriate ecosystem condition (such as climate, soil criteria, and vegetation zone, forest fire resilience);

(II)the native species currently present on the site are not anymore adapted to projected climatic and pedo-hydrological conditions;

(d)ensuring the maintenance of soil structure and fertility and soil biodiversity;

(e)promoting close-to-nature forestry or similar concepts adapted to the local conditions;

(f)excluding the conversion of high-biodiverse ecosystems into less biodiverse ones;

(g)ensuring the diversity of associated habitats and species linked to the forest;

(h)ensuring the diversity of stand structures and maintenance or enhancing of mature stage stands and dead wood.

Substantial contribution to climate change mitigation

1. Forest management plan or equivalent instrument

1.1. The activity takes place on area that is subject to a forest management plan or an equivalent instrument, as set out in national law or, where national regulation dos not define a forest management plan, as referred to in the FAO definition of “’orest area with long-term forest management plan’ 80 .

In particular, the forest management plan or the equivalent instrument covers a period of ten years or more, is continuously updated and describes a forest management system by providing the following detailed information:

(a)    management goals, including major constraints;

(b)    general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle;

(c)    definition of the forest habitat context, main forest tree species and those intended and their extent and distribution; in accordance to the local forest ecosystem context;

(d)    definition of the area according to its gazetting in the land registry;

(e)    compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions;

(f)    measures deployed to maintain the good condition of forest ecosystems;

(g)    consideration of social issues (preservation of landscape, consultation of stakeholders);

(h) assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection against residual risks.

1.2. The forest management plan or the equivalent instrument:

(a)shows a primary designated management objective 81 that consists in protection of soil and water 82 , conservation of biodiversity 83 or social services 84 based on the FAO definitions;

(b)follows biodiversity-friendly practices such as closer-to-nature-forestry;

(c)includes an analysis of:

(I)impacts and pressures on habitat conservation and diversity of associated habitats;

(II)condition of harvesting minimizing soil impacts;

(III)other activities that have an impact on conservation objectives, such as hunting and fishing, agricultural, pastoral and forestry activities, industrial, mining, and commercial activities.

1.3. The sustainability of the forest management systems as documented in the plan referred to in point 1.1 is ensured through one of the following approaches:

(a)the forest management matches the national definition of sustainable forest management, if any;

(b)the management systems in place show compliance with the forest sustainability criteria as defined in Article 29(6) of Directive (EU) 2018/2001, and as of the date of its application with the implementing act on operational guidance for energy from forest biomass adopted under Article 29(8) of that Directive.

1.4. The management systems associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010.

1.5. All DNSH relevant to conservation forestry criteria are addressed in the forest management plan or equivalent instrument.

1.6. The forest management plan or equivalent instrument provides for monitoring which ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area.

1.7. At the beginning of the period and every five years thereafter, the compliance of forest management with the forest management plan or equivalent instrument, is controlled by either the relevant national competent authorities or by an independent third-party certifier such as a forest certification scheme, at the request of national authorities or the operator of the activity.

The independent third-party certifier is not directly linked to the owner or the funder, and not involved in the development or operation of the activity.

2. Climate benefit analysis

2.1. The climate benefits analysis establishes a baseline, corresponding to the balance of GHG emissions and removals over a period of 20 years starting at the beginning of the activity, associated to the business-as-usual practices that would have occurred on the involved area in the absence of the afforestation activity, and provides an estimate of the long-term average GHG balance of those business-as-usual practices.

The business as-usual practices can be one of the following:

(a)the management practices as documented in the latest version of the forest management plan or equivalent instrument before the start of the activity, if any;

(b)the most recent business-as-usual practices prior to the start of the activity;

(c)the practices corresponding to a management system ensuring that carbon stocks and sinks levels in the forest area are maintained or strengthened over the long term as set out in Article 29(7), point (b), of Directive (EU) 2018/2001.

Information on the emissions and removals used for the baseline is transparent, accurate, consistent, complete and comparable.

2.2. The climate benefit analysis demonstrate both of the following:

(a)the net balance of GHG emissions and removals generated by the activity over a period of 20 years after the beginning of the activity is higher that the baseline referred to in point 2.1;

(b)the projected long-term average GHG balance of the activity is higher than the long-term average GHG balance projected for the baseline, referred to in point 2.1.

The climate benefit analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories regarding the consistency between AFOLU projects and activities and IPCC inventory guidelines 85 .

The climate benefit analysis is based on the most conservative assumptions for calculations and includes appropriate considerations about the risks of non-permanence and reversals of carbon sequestration, the risk saturation and the risk of leakage.

Where the plan referred to in point 1 includes logging events, the scope of the analysis includes a consideration of the GHG emissions and removals induced by the production resulting from the planned wood harvesting and removal for wood-based products, unless it is de minimis for the calculation of the climate benefit to exclude this consideration.

2.3. Emissions and removals that occur due to natural disturbances, such as pests and diseases infestations, forest fires, wind, storm damages, that impacts the area and cause underperformance do not result in non-compliance with the criteria of Regulation (EU) 2020/852, provided that the climate benefit analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas on emissions and removals due to natural disturbances.

2.4. At the beginning of the period and every five years thereafter, the correctness of the climate benefits analysis, including with regard to the emissions and removals monitored on the area, is controlled by either of the following:

(a)the relevant national competent authorities;

(b)an independent third-party certifier, at the request of national authorities or the operator of the activity.

3. Additionality

3.1. The additionality of activity is demonstrated. The demonstration provides evidence ensuring that the activity is not compulsory or customary and that, without the activity being accepted for financing as a sustainable investment, based on the recognition that activity complies with Regulation 2020/853 and thus eligible for financing as an environmentally sustainable investment, one of the following conditions would have been met:

(a)the activity would not have been implemented or its economic, environmental or social aspects would have been significantly altered;

(b)the activity would have not been possible due to knowledge or behavioural barriers;

(c)the area would be converted and used for other activities, having negative impacts on climate mitigation.

3.2. The additionality of the activity is demonstrated by either of the following:

(a)a relevant national competent authority if any,

(b)an independent third-party certifier, at the request of national authorities, or the operator of the activity.

4. Guarantee of permanence

The area on which the activity takes place is covered by a legal protection as defined by the national law, ensuring its non-conversion to other land uses. The operator of the activity commits that future updates to the afforestation plan and the subsequent forest management plan or equivalent instrument will continue to deliver climate benefits, as determined in point 2.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed in the plan referred to inpoint 1 of this Section and controlled by the relevant independent third-party certifier, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 86 .

(4) Transition to a circular economy

The silvicultural change induced by the activity is not likely to result in a significant reduction in the long-term circularity of wood products from the forest.

(5) Pollution prevention and control

The activity does not use pesticides or fertilisers.

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in the Stockholm Convention on Persistent Organic Pollutants, the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade , the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO Recommended Classification of Pesticides by Hazard 87 . The activity complies with the relevant national implementing law on active ingredients.

Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs.

(6) Protection and restoration of biodiversity and ecosystems

In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas.

There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law.

The plan referred to in point 1 of this Section includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

(a)ensuring the good conservation status of habitat and species, maintenance of typical habitat species;

(b)excluding the use or release of invasive alien species;

(c)excluding the use of non-native species unless it can be demonstrated that:

(d)the use of the forest reproductive material leads to favourable and appropriate ecosystem conditions (such as climate, soil criteria, and vegetation zone, forest fire resilience);

(e)the native species currently present on the site are not anymore adapted to projected climatic and pedo-hydrological conditions;

(f)ensuring the maintenance of soil structure and fertility and soil biodiversity;

(g)promoting close-to-nature forestry or similar concepts adapted to the local conditions;

(h)excluding the conversion of high-biodiverse ecosystems into less biodiverse ones;

(i)ensuring the diversity of associated habitats and species linked to the forest;

(j)ensuring the diversity of stand structures and maintenance or enhancing of mature stage stands and dead wood.

Substantial contribution to climate change mitigation

1.    Restoration plan

1.1. The area is covered by a restoration plan, which is consistent with the Ramsar Convention’s principles and guidelines on wetland restoration 92 , until the area is classified as a wetland and is covered by a wetland management plan, consistent with the Ramsar Convention’s guidelines for management planning for Ramsar sites and other wetlands 93 . For peatlands, the restoration plan follows the recommendations contained in relevant resolutions of the Ramsar Convention, including the resolution XIII/13.

1.2. The restoration plan contains careful consideration of local hydrological and pedological conditions, including the dynamics of soil saturation and the change of aerobic and anaerobic conditions.

1.3. All wetland management relevant DNSH criteria are addressed in the restoration plan.

1.4. The restoration plan provides for monitoring which ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area.

1.5. At the beginning of the period and every five years thereafter, the compliance of restoration with the restoration plan, is verified by the relevant national competent authorities, if any, or, either at the request of those competent authorities or the owner, is audited by an independent third-party certifier. The independent third-party certifier is not directly linked to the owner or the funder and not involved in the development of the activity.

2.    Climate benefit analysis

2.1. The climate benefits analysis establishes a baseline, corresponding to the balance of GHG emissions and removals over a period of 20 years, associated to the business-as-usual practices that would have occurred on the involved area in the absence of the restoration activity, and provides an estimate of the long-term average GHG balance of those business-as-usual practices.

The business-as-usual practices can be one of the following:

(a)management practices as documented prior to the start of the activity, if any;

(b)the most recent business-as-usual practices prior to the start of the activity.

Information on the emissions and removals used for the baseline is transparent, accurate, consistent, complete and comparable.

2.2. The climate benefit analysis demonstrate both of the following:

(a)the net balance of GHG emissions and removals generated by the activity over a period of 20 years from the beginning of the activity is higher that the baseline referred to in point 2.1;

(b)the projected long-term average GHG balance of the activity is higher than the long-term average GHG balance projected for the baseline, referred to in point 2.1.

The climate benefit analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories regarding the consistency between AFOLU projects or activities and IPCC inventory guidelines 94 . In particular, if the wetland definition used in that analysis differs from the wetland definition used in the national GHG inventory, the analysis includes an identification of the different land categories covered by the involved area.

The climate benefit analysis is based on the most conservative assumptions for calculations and includes appropriate considerations about the risk of non-permanence and reversals of carbon sequestration, the risk of saturation and the risk of leakage.

For coastal wetlands, climate benefit analysis considers projections of expected relative sea level rise and the potential that the wetlands will migrate.

2.3. Emissions and carbon removals that occur due to natural disturbances, such as pests and diseases infestations, fires, wind, storm damages, which impacts the area and cause underperformance do not result in non-compliance with the criteria of Regulation (EU) 2020/852, provided the climate benefit analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas on emissions and removals due to natural disturbances and, as long as the plan includes adaptation measures to limit risks related to climate change.

2.4. At the beginning of the period and every five years thereafter, the climate benefits analysis is verified by either of the following:

a)    relevant national competent authorities if any; 

b)    an independent third-party certifier at the request of national authorities or of the operator of the activity.

3.    Additionality

3.1. The additionality of the activity is demonstrated. The demonstration provides evidence ensuring that the activity is not compulsory or customary and that, without the activity being accepted for financing as a sustainable investment, based on the recognition that the activity complies with Regulation (EU) 2020/852, one of the following conditions would have been met:

(a)the activity would not have been implemented or its economic, environmental and/or social aspects would have been significantly altered;

(b)the activity would not have been possible due to knowledge or behavioural barriers;

(c)the area would be converted and used for other activities, having negative impacts on climate mitigation.

3.2. The additionality is demonstrated by either of the following:

(a)relevant national competent authorities if any; 

(b)an independent third-party certifier at the request of national authorities or of the operator of the activity.

4. Permanence

The area on which the activity takes place is covered by a legal protection as defined by the national legislation, ensuring its non-conversion to other land uses. The operator of the activity commits that future updates of the wetland restoration plan or the wetland management plan guarantee the permanence of the climate benefit provided by the activity, as determined in point 2.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 95 .

(4) Transition to a circular economy

Peat extraction is minimised.

(5) Pollution prevention and control

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

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in the Stockholm Convention on Persistent Organic Pollutants, the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO recommended Classification of Pesticides by Hazard 96 . The activity complies with relevant national implementing law on active ingredients.

Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs.

(6) Protection and restoration of biodiversity and ecosystems

In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas.

There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law.

The plan referred to in point 1 (Restoration plan) of this Section includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

(a) ensuring the good conservation status of habitat and species, maintenance of typical habitat species;

(b) excluding the use or release of invasive species.

Substantial contribution to climate change mitigation

The economic activity manufactures renewable energy technologies.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 97 .

(4) Transition to a circular economy

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

(a)reuse and use of secondary raw materials and re-used 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.

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 98 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU of the European Parliament and of the Council 99 . For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 100 .

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 101 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 102 are implemented.

Substantial contribution to climate change mitigation

The economic activity manufactures hydrogen electrolysis technologies.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 103 .

(4) Transition to a circular economy

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

(a)reuse and use of secondary raw materials and re-used 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.

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 104 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 105 .

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 106 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 107 are implemented.

Substantial contribution to climate change mitigation

The economic activity manufactures:

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

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

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

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

(e) vehicles of category M1 and N1 108 with:

(i) until 31 December 2025: specific emissions of CO2, as defined in Article 3(1), point (h), of Regulation (EU) 2019/631 of the European Parliament and of the Council 109 , lower than 50gCO2/km (low- and zero-emission light-duty vehicles);

(ii) from 1 January 2026: specific emissions of CO2, as defined in Article 3(1), point (h), of Regulation (EU) 2019/631, are zero;

(f)vehicles of category L 110 with tailpipe CO2 emissions equal to 0g CO2e/km calculated in accordance with the emission test laid down in Regulation (EU) 168/2013 of the European Parliament and of the Council 111 ;

(g)vehicles not dedicated to transporting fossil fuels with a technically permissible maximum laden mass not exceeding 7,5 tonnes that are ‘zero-emission heavy-duty vehicles’ as defined in Article 3, point (11), of Regulation (EU) 2019/1242 112 ;

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

(i)inland passenger water transport vessels that:

(I)have zero direct (tailpipe) CO2 emissions;

(II)until 31 December 2025, are hybrid vessels using at least 50% of zero direct (tailpipe) CO2 emission fuel mass or plug-in power for their normal operation;

(j)inland freight water transport vessels, not dedicated to transporting fossil fuels, that:

(I)have zero direct (tailpipe) CO2 emission;

(II)until 31 December 2025, have direct (tailpipe) emissions of CO2 per tonne kilometre (gCO2/tkm), calculated (or estimated in case of new vessels) using the Energy Efficiency Operational Indicator 113 , 50 % lower than the average reference value for emissions of CO2 defined for heavy duty vehicles (vehicle subgroup 5- LH) in accordance with Article 11 of Regulation (EU) 2019/1242;

(k) sea and coastal freight water transport vessels not dedicated to transporting fossil fuels, that:

(I)have zero direct (tailpipe) CO2 emissions;

(II)until 31 December 2025, are hybrid vessels that use at least 50% of zero direct (tailpipe) CO2 emission fuel mass or plug-in power for their normal operation;

(III) until 31 December 2025, and only where it can be proved that the vessels are used exclusively for provision of coastal services designed to enable modal shift of freight currently transported by land to sea, the vessels that have direct (tailpipe) CO2 emissions, calculated using the International Maritime Organization (IMO) Energy Efficiency Design Index (EEDI) 114 , 50 % lower than the average reference CO2 emissions value defined for heavy duty vehicles (vehicle subgroup 5-LH) in accordance with Article 11 of Regulation (EU) 2019/1242;

(IV) until 31 December 2025, the vessels have an attained Energy Efficiency Design Index (EEDI) value 10% below the EEDI requirements applicable on 1 January 2022 115 ;

(l)sea and coastal passenger water transport vessels, not dedicated to transporting fossil fuels, that:

(I)have zero direct (tailpipe) CO2 emissions;

(II)until 31 December 2025, hybrid vessels use at least 50% of zero direct (tailpipe) CO2 emission fuel mass or plug-in power for their normal operation;

(III) until 31 December 2025, the vessels have an attained Energy Efficiency Design Index (EEDI) value 10% below the EEDI requirements applicable on 1 January 2022.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 116 .

(4) Transition to a circular economy

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

(a)reuse and use of secondary raw materials and re-used 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.

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 117 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 118 .

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 119 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 120 are implemented.

Substantial contribution to climate change mitigation

The economic activity manufactures one or more of the following products and their key components:

(a)windows with U-value lower or equal to 0.7 W/m2K;

(b)doors with U-value lower or equal to 1.2 W/m2K;

(c)external cladding with U-value lower or equal to 0.5 W/m2K;

(d)roofing systems with U-value lower or equal to 0.3 W/m2K;

(e)household appliances falling into the top two energy efficiency classes in accordance with Regulation (EU) 2017/1369 of the European Parliament and of the Council 121 ;

(f)lighting appliances rated in the top two energy labelling class in accordance with Regulation (EU) 2017/1369;

(g)space heating and domestic hot water systems rated in the top energy labelling class in accordance with Regulation (EU) 2017/1369;

(h)cooling and ventilation systems rated in the top two energy labelling class in accordance with Regulation (EU) 2017/1369;

(i)presence and daylight controls for lighting systems;

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

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

(l)energy-efficient building automation and control systems for commercial buildings;

(m)zoned thermostats and devices for the smart monitoring of the main electricity loads for residential buildings, and sensoring equipment;

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

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 122 .

(4) Transition to a circular economy

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

(a)reuse and use of secondary raw materials and re-used 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.

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 123 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 124 .

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 125 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 126 are implemented.

Substantial contribution to climate change mitigation

The economic activity manufactures low carbon technologies (and their key components) that demonstrate substantial life-cycle GHG emission savings compared to the best performing alternative technology/product/solution available on the market.

Life-cycle GHG emission savings are calculated using Commission Recommendation 2013/179/EU 127 or, alternatively, ISO 14067:2018 or ISO 14064-1:2018.

Quantified life-cycle GHG emission savings are verified by an independent third party.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 128 .

(4) Transition to a circular economy

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

(a)reuse and use of secondary raw materials and re-used 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.

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 129 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 130 .

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 131 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 132 are implemented.

Substantial contribution to climate change mitigation

The activity manufactures one of the following:

(a)grey cement clinker where the specific GHG emissions 133 are lower than [xxx 134 ] tCO2e per tonne of grey cement clinker;

(b)cement or alternative hydraulic binder, from grey clinker, where the specific GHG emissions 135 from the clinker and cement or alternative binder production are lower than [xxx 136 ] tCO2e per tonne of cement or alternative binder manufactured;

Where CO2 emitted from the manufacturing process is captured, the CO2 is transported and stored underground, in accordance with the technical screening criteria set out in Sections 5.11 and 5.12 of this Annex.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 137 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the best available techniques (BAT) conclusions for the production of cement, lime and magnesium oxide 138 . No significant cross-media effects occur 139 .

For manufacture of cement employing hazardous wastes as alternative fuels, measures are in place to ensure the safe handling of waste.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 140 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 141 .

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 142 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 143 are implemented.

Substantial contribution to climate change mitigation

The activity manufactures one of the following:

(a)primary aluminium where the sum of direct GHG emissions and indirect GHG emissions 144 is lower than [xxx 145 ] tCO2 per tonne of aluminium manufactured 146 ;

(b)secondary aluminium.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 147 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the best available techniques (BAT) conclusions for the non-ferrous metals industries 148 . No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 149 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 150 .

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 151 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 152 are implemented.

Substantial contribution to climate change mitigation

The activity manufactures one of the following:

(a)iron and steel with GHG emissions 153 lower than the following values applied to the different manufacturing process steps:

(I)hot metal = [xxx 154 ] tCO2e/t product;

(II)sintered ore = [xxx 155 ] tCO2e/t product;

(III) coke (excluding lignite coke) = [xxx 156 ] tCO2e/t product;

(IV) iron casting = [xxx 157 ] tCO2e/t product;

(V)electric Arc Furnace (EAF) high alloy steel = [xxx 158 ] tCO2e/t product;

(VI) electric Arc Furnace (EAF) carbon steel = [xxx 159 ] tCO2e/t product.

(b) steel in electric arc furnaces (EAFs) and at least 90 % of the iron content in the final products is sourced from scrap steel.

Where the CO2 emitted from the manufacturing process is captured, the CO2 is transported and stored underground, in accordance with the technical screening criteria set out in Sections 5.11 and 5.12 of this Annex.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 160 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the best available techniques (BAT) conclusions for iron and steel production 161 . No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 162 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 163 .

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 164 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 165  are implemented.

Substantial contribution to climate change mitigation

The activity complies with the life cycle GHG emissions savings requirement of 80 % relative to a fossil fuel comparator of 94g CO2e/MJ [resulting in 2.256 tCO2eq/tH2] in analogy to the approach set out in Article 25(2) of and Annex V to Directive (EU) 2018/2001 of the European Parliament and of the Council 166 .

Life cycle GHG emissions savings are calculated using the methodology referred to in Article 28(5) of Directive (EU) 2018/2001 or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018.

Quantified life-cycle GHG emission savings are verified in line with Article 30 of Directive (EU) 2018/2001 where applicable, or by an independent third party.

Where the CO2 emitted from the manufacturing process is captured, the CO2 is transported and stored underground, in accordance with the technical screening criteria set out in Section 5.11 and 5.12 of this Annex.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 167 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the [the best available techniques (BAT) conclusions for common waste gas management and treatment systems in the chemical sector.]

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 168 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 169 .

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 170 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 171 are implemented.

Substantial contribution to climate change mitigation

GHG emissions 172 from the carbon black production processes are lower than [xxx 173 ] tCO2e per tonne of product.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 174 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in:

(a)the Best Available Techniques Reference Document (BREF) for the Large Volume Inorganic Chemicals- Solids and Others industry 175 ;

(b)the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector 176 ;

(c)[the best available techniques (BAT) conclusions for common waste gas management and treatment systems in the chemical sector.]

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 177 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 178 .

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 179 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 180 are implemented.

Substantial contribution to climate change mitigation

GHG emissions 181 from the disodium carbonate (soda ash) production processes are lower than [xxx 182 ] tCO2e per tonne of product.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 183 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in:

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

(b)the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector;

(c)[the best available techniques (BAT) conclusions for common waste gas management and treatment systems in the chemical sector.]

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 184 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 185 .

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 186 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 187  are implemented.

Substantial contribution to climate change mitigation

Electricity consumption for electrolysis and chlorine treatment is equal or lower than 2.45 MWh per tonne of chlorine.

Average life-cycle GHG emissions of the electricity used for chlorine production is at or lower than 100 g CO2e/kWh.

Life-cycle GHG emissions are calculated using Commission Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018.

Quantified life-cycle GHG emissions are verified by an independent third party.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 188 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in:

(a)the best available techniques (BAT) conclusions for the production of chlor-alkali 189 ;

(b)the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector;

(c)[the best available techniques (BAT) conclusions for common waste gas management and treatment systems in the chemical sector].

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 190 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 191 .

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 192 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 193 are implemented.

Substantial contribution to climate change mitigation

GHG emissions 194 from the organic basic chemicals production processes are lower than:

(a)for HVC: [xxx 195 ] tCO2e/t of HVC;

(b)for aromatics: [xxx 196 ] tCO2e/t of aromatic;

(c)for vinyl chloride: [xxx 197 ] tCO2e/t of vinyl chloride;

(d)for styrene: [xxx 198 ] tCO2e/t of styrene;

(e)for ethylene oxide/ethylene glycols: [xxx 199 ] tCO2e/t of ethylene oxide/glycol;

(f)for adipic acid: [xxx 200 ] tCO2e /t of adipic acid.

Where the organic chemicals in scope are produced wholly or partially from renewable feedstock, the life-cycle GHG emissions of the manufactured chemical, manufactured wholly or partially from renewable feedstock, are lower than the life-cycle GHG emissions of the equivalent chemical manufactured from fossil fuel feedstock.

Life-cycle GHG emissions are calculated using Commission Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018.

Quantified life-cycle GHG emissions are verified by an independent third party.

Food or feed crops are not used as bio-based feedstock for the manufacture of organic basic chemicals.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 201 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in:

(a)the best available techniques (BAT) conclusions for the production of large volumes organic chemicals 202 ;

(b)the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector;

(c)[the best available techniques (BAT) conclusions for common waste gas management and treatment systems in the chemical sector.]

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 203 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 204 .

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 205 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 206 are implemented.

Substantial contribution to climate change mitigation

GHG emissions 207 from the manufacture of ammonia are lower than [xxx 208 ] tCO2e per tonne of ammonia.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 209 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in:

(a)the Best Available Techniques Reference Document (BREF) for the manufacture of Large Volume Inorganic Chemicals - Ammonia, Acids and Fertilisers 210 ;

(b)the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector;

(c)[the best available techniques (BAT) conclusions for common waste gas management and treatment systems in the chemical sector.]

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 211 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 212 .

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 213 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 214 are implemented.

Substantial contribution to climate change mitigation

GHG emissions 215  from the manufacture of nitric acid are lower than [xxx 216 ] tCO2e per tonne of nitric acid.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 217 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in:

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

(b)the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector;

(c)[the best available techniques (BAT) conclusions for common waste gas management and treatment systems in the chemical sector.]

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 218 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 219 .

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 220 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 221 are implemented.

Substantial contribution to climate change mitigation

The plastic in primary form is one of the following:

(a)fully manufactured by mechanical recycling of plastic waste;

(b)fully manufactured by chemical recycling of plastic waste and the life-cycle GHG emissions of the manufactured plastic, excluding any calculated benefit from the production of fuels, are lower than the life-cycle GHG emissions of the equivalent primary plastic manufactured from fossil fuel feedstock.

Life-cycle GHG emissions are calculated using Commission Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018.

Quantified life-cycle GHG emissions are verified by an independent third party.

(c)derived wholly or partially from renewable feedstock 222 and its life-cycle GHG emissions 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 or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018.

Quantified life-cycle GHG emissions are verified by an independent third party.

Food or feed crops are not used as bio-based feedstock for the manufacture of plastic in primary form.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 223 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the Best Available Techniques Reference Document (BREF) for the Production of Polymers 224 . No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 225 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 226 .

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 227 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 228 are implemented.

Substantial contribution to climate change mitigation

The activity generates electricity using solar PV technology.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

N/A

(4) Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 229 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 230 .

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 231 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 232 are implemented.

Substantial contribution to climate change mitigation

The activity generates electricity using CSP technology.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 233 .

(4) Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 234 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 235 .

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 236 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 237 are implemented.

Substantial contribution to climate change mitigation

The activity generates electricity from wind power.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

In case of construction of offshore wind, the activity complies with the requirements of Directive 2008/56/EC of the European Parliament and of the Council 238 in relation to its Descriptor 11 (Noise/Energy), laid down in Annex I to that Directive, and Commission Decision (EU) 2017/848 239 in relation to the relevant criteria and methodological standards for that descriptor.

(4) Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 240 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 241 .

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 242 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 243 are implemented. 244

In case of offshore wind, the activity complies with the requirements of Directive 2008/56/EC in relation to its Descriptors 1 (biodiversity) and 6 (seabed integrity), laid down in Annex I to that Directive, and Commission Decision (EU)2017/848 in relation to the relevant criteria and methodological standards for those descriptors.

Substantial contribution to climate change mitigation

The activity generates electricity from ocean energy.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

The activity complies with the requirements of Directive 2008/56/EC in relation to its Descriptor 11 (Noise/Energy), laid down in Annex I to that Directive, and Commission Decision (EU) 2017/848 in relation to the relevant criteria and methodological standards for that descriptor.

(4) Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

(5) Pollution prevention and control

Measures are in place to minimise toxicity of anti-fouling paint and biocides as laid down in Regulation (EU) No 528/2012 of the European Parliament and of the Council 245 , which implements in Union law the International Convention on the Control of Harmful Anti-fouling Systems on Ships adopted on 5 October 2001.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 246 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 247 .

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 248 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 249 are implemented.

The activity complies with the requirements of Directive 2008/56/EC in relation to its Descriptors 1 (biodiversity), laid down in Annex I to that Directive, and Commission Decision (EU)2017/848 in relation to the relevant criteria and methodological standards for those descriptors.

Substantial contribution to climate change mitigation

The activity complies with either of the following criteria:

(a) the life-cycle GHG emissions from the generation of electricity from hydropower, including mixed pumped hydropower storage connected to a free-flowing water source are lower than 100gCO2e/kWh.

The life-cycle GHG emissions are calculated using Commission Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018, ISO 14064-1:2018 or the G-res tool 250 . Quantified life-cycle GHG emissions are verified by an independent third party.

(b) the power density of the electricity generation facility is above 5 W/m2.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

1. Operation of existing hydropower plants, including refurbishment activities to enhance renewable energy or energy storage potential.

All technically feasible and ecologically relevant mitigation measures have been implemented to reduce adverse impacts on water as well as on protected habitats and species directly dependent on water.

The effectiveness of those measures is monitored in the context of the authorisation or permit setting out the conditions aimed at achieving good status or potential of the affected water body.

The operation of the hydropower plant fully complies with that authorisation or permit issued by the competent authority, and sets out all relevant mitigation measures necessary to:

(a)ensure conditions as close as possible to undisturbed continuity in the specific water body the plant relates to, including state-of-the-art and fully functional fish passes and turbines preventing fish kill, measures to ensure minimum ecological flow and sediment flow, adaptation of the operation of the plant;

(b)reduce the impact of hydropeaking;

(c)protect or enhance habitats for aquatic species;

(d)reduce adverse impacts of eutrophication.

2. Construction of new hydropower plants

The plants are conceived, by design and location and by mitigation measures, so that they comply with one of the following:

(a)the plants do not entail any deterioration nor compromise the achievement of good status or potential of the specific water body they relate to, as demonstrated by a cumulative impact assessment referred to in this Section;

(b)the plants do neither significantly deteriorate nor compromise the achievement of good status/potential of the specific water body they relate to and are justified by overriding reasons in the public interest.

The plants are conceived, by design and location and by mitigation measures, so that they do not permanently compromise the achievement of good status/potential in any of the water bodies in the same river basin district.

A cumulative impact assessment has been performed that identifies and addresses any significant regional or basin-level environmental impacts. The assessment:

(a)addresses all potential impacts on water bodies, as well as on protected habitats and species directly dependent on water, considering in particular:

(I)migration corridors, free-flowing rivers or ecosystems close to undisturbed conditions;

(II)all impacts of existing and of already authorised and planned infrastructure developments in the basin, for example as part of a hydropower cascade or of other activities (for example agriculture, transport etc.);

(b)is based on recent, comprehensive and accurate data, including monitoring data on biological quality elements that are specifically sensitive to hydrological alterations, and on the expected status of the water body as a result of the new activities, as compared to its current one.

The cumulative impact assessment demonstrates that the project does not permanently exclude the achievement of the objectives of good status/potential in other water bodies or connected ecosystems within the same river basin district.

Where the cumulative impact assessment demonstrates that the envisaged project neither deteriorates nor compromises the achievement of good status/potential of the specific water body, as a result of site-specific conditions or the use of state-of-the-art technology, the operation of the new hydropower plant fully complies with its authorisation or permit setting out the conditions aimed at achieving good status or potential of the affected water body. The plant respects appropriate environmental standards in terms of flow management and flood regime (magnitude, frequency, duration, timing and rate of change) and of mitigation measures, including controlled releases, state of the art and fully functional fish passages, state of the art turbines preventing fish kill, controlled temperature, appropriate ecological flow, sediment flow, timing of operation of turbines.

Where the cumulative impact assessment demonstrates that the envisaged project could deteriorate or compromise the achievement of good status/potential of the specific water body it relates to, a further in-depth cost-benefit assessment is performed. That in-depth cost-benefit assessment demonstrates that such deterioration will not be significant and will comply with all of the following criteria:

(a)the beneficial objectives served by the planned hydropower plant in terms of renewable energy generation and energy storage cannot, for reasons of technical feasibility or disproportionate cost, be achieved by alternative means that would lead to a better environmental outcome (alternative location, rehabilitation/refurbishment of existing hydro-power plants or infrastructures, use of technologies not disrupting river continuity, where relevant, consideration of other potential sources of electricity, which may offer in the particular case a better environmental alternative; the beneficial objectives served by the planned hydropower plant are justified by overriding reasons in the public interest;

(b)the benefits expected from the planned hydropower plant outweigh the costs from deteriorating the status of water that are accruing to the environment and to society. The in-depth cost-benefits analysis considers the following aspects:

(I)the marginal quantity of energy generated and its contribution to increasing the share of renewable energy in the energy mix, in accordance with the national renewable energy strategy when relevant;

(II)impacts on water status or potential upstream and downstream;

(III)impacts on biodiversity, in particular on Protected Areas (such as Natura 2000 sites in the Union, areas relied upon for drinking water, areas with bathing water);

(IV)the benefits of ecosystem services (quantitatively where possible);

(c)all technically feasible and ecologically relevant mitigation measures are included in the permit or authorisation and are implemented to reduce the adverse impacts on the status of the water body the planned hydropower plant relates to. Those measures:

(I)ensure conditions as close as possible to undisturbed continuity (including state-of-the-art and fully functional fish passes and turbines preventing fish kill, measures to ensure minimum ecological flow and sediment flow, adaptation of the operation of the plant);

(II)reduce the impact of hydropeaking;

(III)protect or enhance habitats for aquatic species;

(IV)reduce adverse impacts of eutrophication;

(d)in addition to the mitigation measures referred to in point (d) and where relevant, compensatory measures are implemented to ensure that the project does not increase the fragmentation of water bodies in the same river basin district. This is achieved by restoring continuity within the same river basin district to an extent that compensates the disruption of continuity, which the planned hydropower plant may cause. Compensation starts prior to the execution of the project.

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 251 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 252 .

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 253 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 254 are implemented. 255

Substantial contribution to climate change mitigation

Life-cycle GHG emissions from the generation of electricity from geothermal energy are lower than 100gCO2e/kWh.

Life-cycle GHG emission savings are calculated using Commission Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018.

Quantified life-cycle GHG emissions are verified by an independent third party.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 256 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

For the operation of high-enthalpy geothermal energy systems, adequate abatement systems are in place to comply with the air emission requirements set out in Directive 2004/107/EC of the European Parliament and of the Council 257 and Directive 2008/50/EC of the European Parliament and of the Council 258 .

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 259 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 260 .

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 261 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 262 are implemented.

Substantial contribution to climate change mitigation

1. Life-cycle GHG emissions from the generation of electricity using gaseous and liquid fuels 263 are lower than 100gCO2e/kWh.

Life-cycle GHG emissions are calculated based on project-specific data, where available, using Commission Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018.

Quantified life-cycle GHG emissions are verified by an independent third party.

2. Where facilities incorporate any form of abatement (including carbon capture or use of decarbonised fuels) that abatement activity complies with the criteria set out in the relevant Section of this Annex, where applicable. Where the CO2 emitted from the electricity generation is captured as a way to meet the emissions limit set out in point 1 of this Section, the CO2 is transported and stored underground in a way that meets the technical screening criteria for transport of CO2 and storage of CO2 set out in Sections 5.11 and 5.12, respectively of this Annex.

3. The activity meets either of the following criteria:

(a)at construction, measurement equipment for monitoring of physical emissions, such as methane leakage is installed or a leak detection and repair program is introduced;

(b)at operation, physical measurement of emissions are reported and leak is eliminated.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 264 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the best available techniques (BAT) conclusions for large combustion plants 265 . No significant cross-media effects occur.

For combustion plants greater than 1 MW thermal input but below the thresholds for the BAT conclusions for large combustion plants to apply, emissions are below the emission limit values set out in Annex II, part 2, to Directive (EU) 2015/2193 of the European Parliament and of the Council 266 .

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 267 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 268 .

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 269 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 270 are implemented.

Substantial contribution to climate change mitigation

1. Agricultural biomass used in the activity complies with the criteria laid down in Article 29, paragraphs 2 to 5, of Directive (EU) 2018/2001. Forest biomass used in the activity complies with the criteria laid down in Article 29, paragraphs 6 and 7, of that Directive.

2. The greenhouse gas emission savings from the use of biomass are at least 80 % in relation to the GHG saving methodology and the relative fossil fuel comparator set out in Annex VI to Directive (EU) 2018/2001.

3. Where the installations rely on anaerobic digestion of organic material, the production of the digestate meets the criteria in Sections 5.6 and criteria 1 and 2 of Section 5.7 of this Annex, as applicable.

4. Points 1 and 2 do not apply to electricity generation installations with a total rated thermal input below 2 MW and using gaseous biomass fuels.

5. For electricity generation installations with a total rated thermal input from 50 to 100 MW, the activity applies high-efficiency cogeneration technology, or, for electricity-only installations, the activity meets an energy efficiency level associated with the best available techniques (BAT-AEELs) as referred to in Commission Implementing Decision (EU) 2017/1442 271 .

6. For electricity generation installations with a total rated thermal input above 100 MW, the activity complies with one or more of the following criteria:

(a)    attain electrical efficiency of at least 36 %;

(b)    generate highly efficient CHP (combined heat and power) as referred to in Directive 2012/27/EU of the European Parliament and of the Council 272 ;

(c)    use carbon capture and storage technology.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 273 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

For installations falling within the scope of Directive 2010/75/EU of the European Parliament and of the Council 274 , emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the best available techniques (BAT) conclusions for large combustion plants 275 . No significant cross-media effects occur.

For combustion plants greater than 1 MW thermal input but below the thresholds for the BAT conclusions for large combustion plants to apply, emissions are below the emission limit values set out in Annex II, part 2, to Directive (EU) 2015/2193 of the European Parliament and of the Council 276 .

For plants in zones or parts of zones not complying with the air quality limit values laid down in Directive 2008/50/EC of the European Parliament and of the Council 277 , results of the information exchange 278  which are published by the Commission in accordance with Article 6, paragraphs 9 and 10, of Directive (EU) 2015/2193 are taken into account.

For anaerobic digestion of organic material, the produced digestate is used as fertiliser or soil improver, either directly or after composting or any other treatment, and meets the requirements for fertilising materials set out in Component Material Categories (CMC) 4 and 5 in Annex II to Regulation (EU) 2019/1009 and relevant national law on fertilising products.

For anaerobic digestion plants treating over 100 tonnes per day, emissions to air and water are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set for anaerobic treatment of waste in the best available techniques (BAT) conclusions for waste treatment 279 . No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 280 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 281 .

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 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures are implemented.

Substantial contribution to climate change mitigation

The activity complies with one of the following criteria:

1. The transmission and distribution infrastructure or equipment in the system is the interconnected European system, i.e. the interconnected electricity system covering the interconnected control areas of Member States, Norway, Switzerland and the United Kingdom, and its subordinated systems;

2. The transmission and distribution infrastructure or equipment is in a system which complies with one or both of the following criteria:

(a) more than 67 % of newly connected generation capacity in the system where the infrastructure or equipment is to be installed is below the generation threshold value of 100 gCO2e/kWh measured on a life cycle basis in accordance with electricity generation criteria, over a rolling five-year period;

(b) an average system grid emissions factor, that is calculated as the total annual emissions from power generation, divided by the total annual net electricity production in that system, is below the threshold value of 100 gCO2e/kWh measured on a life cycle basis in accordance with electricity generation criteria, over a rolling five-year average period;

3. The transmission and distribution infrastructure or equipment is not dedicated to creating a direct connection, or expanding an existing direct connection to a power production plant that is more CO2 intensive than 100 gCO2e/kWh, measured on a life cycle basis.

4. The activity is one of the following:

(a)construction and operation of direct connection, or expansion of existing direct connection, of low carbon electricity generation below the threshold of 100 gCO2e/kWh measured on a life cycle basis to a substation or network;

(b)construction and operation of electronic vehicle (EV) charging stations and supporting electric infrastructure for the electrification of transport, subject to eligibility under the transport Section of this Annex;

(c)installation of transmission and distribution transformers that comply with the Tier 2 (1 July 2021) requirements set out in Annex I to the Commission Regulation (EU) No 548/2014 282 and, for medium power transformers with highest voltage for equipment not exceeding 36 kV, with AAA0 level requirements on no-load losses set out in standard EN 50588-1 283 .

(d)construction/installation and operation of equipment and infrastructure where the main objective is an increase of the generation or use of renewable electricity generation;

(e)installation of equipment to increase the controllability and observability of the electricity system and to enable the development and integration of renewable energy sources, including:

(I)sensors and measurement tools (including meteorological sensors for forecasting renewable production);

(II)communication and control (including advanced software and control rooms, automation of substations or feeders, and voltage control capabilities to adapt to more decentralised renewable infeed).

(f)installation of equipment to carry information to users for remotely acting on consumption, including customer data hubs;

(g)construction/installation of equipment to allow for exchange of specifically renewable electricity between users;

(h)interconnectors between transmission systems are eligible, provided that one of the systems is eligible.

5. For the purpose of this Section, a ‘system’ means the transmission or distribution network control area of the network or system operator(s) where the activity takes place.

6. For the purposes of this Section, the following specifications apply:

(a)the rolling five-year (average) period used in determining compliance with the thresholds is based on historic data, and includes the year for which the most recent data are available;

(b)transmission systems may include generation capacity connected to subordinated distribution systems;

(c)distribution systems subordinated to a transmission system that is deemed to be on a trajectory to full decarbonisation may also be deemed to be on a trajectory to full decarbonisation;

(d)to determine eligibility, it is possible to consider a system covering multiple control areas which are interconnected and with significant energy exchanges between them, in which case the weighted average emissions factor across all included control areas is used to determine eligibility, and individual subordinated transmission or distribution systems within that system is not required to demonstrate compliance separately;

(e)it is possible for a system to become ineligible after having previously been eligible. In systems that become ineligible, no new transmission and distribution activities are eligible from that moment onward, until the system complies again with the threshold (except for those activities which are always eligible, see above). Activities in subordinated systems may still be eligible, where those subordinated systems meet the criteria of this Section;

(f)a direct connection or expansion of an existing direct connection to production plants includes infrastructure that is indispensable to carry the associated electricity from the power generating facility to a substation or network.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

N/A

(4) Transition to a circular economy

A waste management plan is in place and ensures maximal reuse or recycling at end of life in accordance with the waste hierarchy, including through contractual agreements with waste management partners, reflection in financial projections or official project documentation.

(5) Pollution prevention and control

Overground high voltage lines:

(a)for construction site activities, activities follow the principles of the IFC General Environmental, Health, and Safety Guidelines 284 .

(b)activities respect applicable norms and regulations to limit impact of electromagnetic radiation on human health, including for activities carried out in the Union, the Council recommendation on the limitation of exposure of the general public to electromagnetic fields (0 Hz to 300 GHz) 285  and for activities carried out in third countries, the 1998 Guidelines of International Commission on Non-Ionizing Radiation Protection (ICNIRP) 286 .

Activities do not use PCBs polyclorinated biphenyls.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 287 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 288 .

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 289 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 290 are implemented 291 .

Substantial contribution to climate change mitigation

The activity is the construction and operation of electricity storage including closed-loop pumped hydropower storage, defined as hydro plants with no natural water inflow into the upper reservoir, where the water that generates electricity was previously pumped uphill. Pumped storage connected to river bodies are not eligible.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

For closed-loop pumped hydropower storage, environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 292 .

(4) Transition to a circular economy

A waste management plan is in place and ensures maximal reuse or recycling at end of life in accordance with the waste hierarchy, including through contractual agreements with waste management partners, reflection in financial projections or official project documentation.

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 293 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 294 .

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 295 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 296 are implemented.

Substantial contribution to climate change mitigation

The activity stores thermal energy, including Thermal Energy Storage (UTES) or Aquifer Thermal Energy Storage (ATES).

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

For Aquifer Thermal Energy Storage, environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 297 .

(4) Transition to a circular economy

A waste management plan is in place and ensures maximal reuse, remanufacturing or recycling at end of life, including through contractual agreements with waste management partners, reflection in financial projections or official project documentation.

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 298 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 299 .

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 300 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 301 are implemented.

Substantial contribution to climate change mitigation

The activity is one of the following:

(a)construction of hydrogen storage facilities.

(b)operation of hydrogen storage facilities where the hydrogen stored in the facility meets the criteria for manufacture of hydrogen set out in Section 3.9. of this Annex.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

N/A

(4) Transition to a circular economy

A waste management plan is in place and ensures maximal reuse, remanufacturing or recycling at end of life, including through contractual agreements with waste management partners, reflection in financial projections or official project documentation.

(5) Pollution prevention and control

In the case of storage above five tonnes, the activity complies with Directive 2012/18/EU of the European Parliament and of the Council 302 .

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 303 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 304 .

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 305 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 306 are implemented.

Substantial contribution to climate change mitigation

1. Agricultural biomass used in the activity for the manufacture of biogas or biofuels for use in transport complies with the criteria laid down in Article 29, paragraphs 2 to 5, of Directive (EU) 2018/2001. Forest biomass used in the activity for the manufacture of biogas or biofuels for use in transport complies with the criteria laid down in Article 29, paragraphs 6 and 7, of that Directive.

Food-and feed crops are not used in the activity for the manufacture of biofuels for use in transport.

2. The greenhouse gas emission savings from the manufacture of biofuels and biogas for use in transport are at least 65 % in relation to the GHG saving methodology and the relative fossil fuel comparator set out in Annex V to Directive (EU) 2018/2001.

3. Where the manufacture of biogas relies on anaerobic digestion of organic material, the production of the digestate meets the criteria in Sections 5.6 and criteria 1 and 2 of Section 5.7 of this Annex, as applicable.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 307 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

For biogas production, a gas-tight cover on the digestate storage is applied.

For anaerobic digestion plants treating over 100 tonnes per day, emissions to air and water are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set for anaerobic treatment of waste in the best available techniques (BAT) conclusions for waste treatment 308 . No significant cross-media effects occur.

In case of anaerobic digestion of organic material, the produced digestate is used as fertiliser or soil improver, either directly or after composting or any other treatment, and meets the requirements for fertilising materials set out in Component Material Categories (CMC) 4 and 5 in Annex II to Regulation EU 2019/1009 and respective national rules on fertilising products.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 309 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 310 .

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 311 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 312 are implemented.

Substantial contribution to climate change mitigation

1. The activity consists in one of the following:

(a)construction or operation of new transmission and distribution networks dedicated to hydrogen or other low-carbon gases;

(b)conversion/repurposing of existing natural gas networks to 100 % hydrogen and retrofit of gas transmission and distribution networks, where the main purpose is the integration of hydrogen and other low-carbon gases, including any gas transmission or distribution network activity, which enables the network to increase the blend of hydrogen or other low carbon gasses in the gas system;

2. The activity includes leak detection and repair of existing gas pipelines and other network elements to reduce methane leakage.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 313 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Fans, compressors, pumps and other equipment used which is covered by Directive 2009/125/EC of the European Parliament and of the Council 314 comply, where relevant, with the top class requirements of the energy label, and with implementing regulations under that Directive and represent the best available technology.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 315 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 316 .

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 317 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 318 are implemented.

Substantial contribution to climate change mitigation

The activity complies with one of the following criteria:

(a)for construction and operation of pipelines and associated infrastructure for distributing heating and cooling, the system meets the definition of efficient district heating and cooling systems laid down in Article 2, point 41, of Directive 2012/27/EU;

(b)for refurbishment of pipelines and associated infrastructure for distributing heating and cooling, the investment that makes the system meet the definition of efficient district heating or cooling laid down in Article 2, point 41, of Directive 2012/27/EU starts within a three year period as underpinned by a contractual obligation or an equivalent in case of operators in charge of both generation and the network;

(c)The activity is the following:

(I)modification to lower temperature regimes;

(II)advanced pilot systems (control and energy management systems, Internet of Things).

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 319 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Fans, compressors, pumps and other equipment used which is covered by Directive 2009/125/EC comply, where relevant, with the top class requirements of the energy label, and otherwise comply with implementing regulations under that Directive and represent the best available technology.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 320 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 321 .

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 322 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 323 are implemented.

Substantial contribution to climate change mitigation

The installation and operation of electric heat pumps complies with both of the following criteria:

(a)refrigerant threshold: Global Warming Potential does not exceed 675;

(b)energy efficiency requirements laid down in the implementing regulations 324 under Directive 2009/125/EC are met.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 325 .

(4) Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

A waste management plan is in place and ensures maximal reuse, remanufacturing or recycling at end of life, including through contractual agreements with waste management partners, reflection in financial projections or official project documentation.

(5) Pollution prevention and control

For air to air heat pumps with rated capacity of 12kW or below, indoor and outdoor sound power levels are below the threshold set out in Commission Regulation (EU) No 206/2012 326  

(6) Protection and restoration of biodiversity and ecosystems

N/A

Substantial contribution to climate change mitigation

The activity consists in the cogeneration 327 of electricity and heat/cool from solar energy.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

N/A

(4) Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 328 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 329 .

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 330 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 331 are implemented.

Substantial contribution to climate change mitigation

The life-cycle GHG emissions from the combined generation of heat/cool and power 332 from geothermal energy are lower than 100gCO2e per 1 kWh of energy input to the combined generation.

Life-cycle GHG emissions are calculated based on project-specific data, where available, using Commission Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018.

Quantified life-cycle GHG emissions are verified by an independent third party.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 333 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

For the operation of high-enthalpy geothermal energy systems, adequate abatement systems are in place to comply with air emission requirements laid down in Directives 2004/107/EC and 2008/50/EC.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 334 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 335 .

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 336 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 337 are implemented.

Substantial contribution to climate change mitigation

1. The life-cycle GHG emissions from the co-generation of heat/cool and power 338 from gaseous and liquid fuels 339 are lower than 100gCO2e per 1 kWh of energy input to the co-generation.

Life-cycle GHG emissions are calculated based on project-specific data, where available, using Commission Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018.

Quantified life-cycle GHG emissions are verified by an independent third party.

2 Where facilities incorporate any form of abatement (including carbon capture or use of decarbonised fuels) that abatement activity complies with the relevant Sections of this Annex, where applicable.

Where the CO2 emitted from the electricity generation is captured as a way to meet the emissions limit set out in point 1 of this Section, the CO2 is transported and stored underground in a way that meets the technical screening criteria for transport of CO2 and storage of CO2 set out in Sections 5.11 and 5.12, respectively of this Annex.

3. The activity meets either of the following criteria:

(a)at construction, measurement equipment for monitoring of physical emissions, such as methane leakage is installed or a leak detection and repair program is introduced;

(b)at operation, physical measurement of emissions are reported and leak is eliminated.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 340 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the best available techniques (BAT) conclusions for large combustion plants. No significant cross-media effects occur.

For combustion plants greater than 1 MW thermal input but below the thresholds for the BAT conclusions for large combustion plants to apply, emissions are below the emission limit values set out in Annex II, part 2, to Directive (EU) 2015/2193.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 341 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 342 .

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 343 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 344 are implemented.

Substantial contribution to climate change mitigation

1. Agricultural biomass used in the activity complies with the criteria laid down in Article 29, paragraphs 2 to 5, of Directive (EU) 2018/2001. Forest biomass used in the activity complies with the criteria laid down in Article 29, paragraphs 6 and 7 of that Directive.

2. The greenhouse gas emission savings from the use of biomass in cogeneration installations are at least 80 % in relation to the GHG emission saving methodology and fossil fuel comparator set out in Annex VI to Directive (EU) 2018/2001.

3. Where the cogeneration installations rely on anaerobic digestion of organic material, the production of the digestate meets the criteria in Sections 5.6 and criteria 1 and 2 of Section 5.7 of this Annex, as applicable.

4. Points 1 and 2 do not apply to electricity generation installations with a total rated thermal input below 2 MW and using gaseous biomass fuels.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 345 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

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 best available techniques (BAT) conclusions for large combustion plants 346 , ensuring at the same time that no significant cross-media effects occur.

For combustion plants greater than 1 MW thermal input but below the thresholds for the BAT conclusions for large combustion plants to apply, emissions are below the emission limit values set out in Annex II, part 2, to Directive (EU) 2015/2193.

For plants in zones or parts of zones not complying with the air quality limit values laid down in Directive 2008/50/EC, results of the information exchange 347 , which are published by the Commission in accordance with Article 6, paragraphs 9 and 10, of Directive (EU) 2015/2193 are taken into account.

In case of anaerobic digestion of organic material, the produced digestate is used as fertiliser or soil improver, either directly or after composting or any other treatment, and meets the requirements for fertilising materials set out in Component Material Categories (CMC) 4 and 5 in Annex II to Regulation (EU) 2019/1009 and relevant national law on fertilising products.

For anaerobic digestion plants treating over 100 tonnes per day, emissions to air and water are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set for anaerobic treatment of waste in the best available techniques (BAT) conclusions for waste treatment 348 . No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 349 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 350 .

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 351 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 352 are implemented.

Substantial contribution to climate change mitigation

The activity produces heat/cool using solar thermal heating.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

N/A

(4) Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 353 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 354 .

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 355 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 356 are implemented.

Substantial contribution to climate change mitigation

The life-cycle GHG emissions from the generation of electricity from geothermal energy are lower than 100gCO2e/kWh.

Life-cycle GHG emissions are calculated based on project-specific data, where available, using Commission Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018.

Quantified life-cycle GHG emissions are verified by an independent third party.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 357 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

For the operation of high-enthalpy geothermal energy systems, adequate abatement systems are in place to comply with air emission requirements set out in Directives 2004/107/EC and 2008/50/EC.

(6) Protection and restoration of biodiversity and ecosystems

An Environmental Impact Assessment (EIA) or screening 358 has been completed, for activities within the Union, in accordance with Directive 2011/92/EU. For activities in third countries, an EIA has been completed in accordance with equivalent national provisions or international standards 359 .

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 360 , where applicable, has been conducted and based on its conclusions the necessary mitigation measures 361 are implemented.

Substantial contribution to climate change mitigation

1. The life-cycle GHG emissions from the generation of heat/cool using gaseous and liquid fuels 362 are lower than 100gCO2e/kWh.

Life-cycle GHG emissions are calculated based on project-specific data, where available, using Commission Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018.

Quantified life-cycle GHG emissions are verified by an independent third party.

2 Where facilities incorporate any form of abatement (including carbon capture or use of decarbonised fuels) that abatement activity complies with the relevant Sections of this Annex, where applicable.

Where the CO2 emitted from the electricity generation is captured as a way to meet the emissions limit set out in point 1 of this Section, the CO2 is transported and stored underground in a way that meets the technical screening criteria for transport of CO2 and storage of CO2 set out in Sections 5.11 and 5.12 of this Annex.

3. The activity meets either of the following criteria:

(a)    at construction, measurement equipment for monitoring physical emissions, such as methane leakage is installed or a leak detection and repair program is introduced;

(b)    at operation, physical measurement of emissions are reported and leak is eliminated.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

(3) Sustainable use and protection of water and marine resources

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with relevant stakeholders 363 .

(4) Transition to a circular economy

N/A