Substantial contribution to climate change mitigation

1. Afforestation plan and subsequent forest management plan or equivalent instrument

1.1. The area on which the activity takes place is covered by an afforestation plan of a duration of at least five years, or the minimum period prescribed in national law, developed prior to the start of the activity and continuously updated, until this area matches the definition of forest as set out in national law or where not available, is in line with the FAO definition of forest.

The afforestation plan contains all elements required by the national law relating to environmental impact assessment of afforestation.

1.2 Preferably through the afforestation plan, or if information is missing, through any other document, detailed information is provided on the following points:

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

(b)site preparation and its impacts on pre-existing carbon stocks, including soils and above-ground biomass, in order to protect land with high carbon stock 3 ;

(c)management goals, including major constraints;

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

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

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

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

(h)consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law);

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

(j)assessment of impact on food security;

(k)all DNSH criteria relevant to afforestation.

1.3. When the area becomes a forest, the afforestation plan is followed by a subsequent forest management plan or an equivalent instrument, as set out in national law or, where national law does not define a forest management plan or equivalent instrument, as referred to in the FAO definition of ‘forest area with long-term forest management plan’ 4 . The forest management plan or the equivalent instrument covers a period of 10 years or more and is continuously updated.

1.4 Information is provided on the following points that are not already documented in the forest management plan or equivalent system:

(a)management goals, including major constraints 5 ;

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

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

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

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

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

(g)consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law);

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

(i)all DNSH criteria relevant to forest management.

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

(a)the activity complies with Commission Delegated Regulation (EU) No 807/2014 6 ;

(b)the activity follows the “Pan-European Guidelines for Afforestation and Reforestation with a special focus on the provisions of the UNFCCC” 7 .

1.6. The activity does not involve the degradation of land with high carbon stock 8 .

1.7. The management system associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010 of the European Parliament and of the Council 9 .

1.8. The afforestation plan and the subsequent forest management plan or equivalent instrument provide for monitoring that ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area.

2. Climate benefit analysis

2.1. For areas that comply with the requirements at forest sourcing area level to ensure that carbon stocks and sinks levels in the forest are maintained or strengthened over the long term in accordance with Article 29(7), point (b), of Directive (EU) 2018/2001 the activity complies with the following criteria:

(a)the climate benefit analysis demonstrates that the net balance of GHG emissions and removals generated by the activity over a period of 30 years after the beginning of the activity is lower than a baseline, corresponding to the balance of GHG emissions and removals over a period of 30 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 activity;

(b)long-term climate benefits are considered demonstrated by proof of alignment with Article 29(7), point (b), of Directive (EU) 2018/2001.

2.2. For areas that do not comply with the requirements at forest sourcing area level to ensure that carbon stocks and sinks levels in the forest are maintained or strengthened over the long term in accordance with Article 29(7), point (b), of Directive (EU) 2018/2001 the activity complies with the following criteria:

(a)the climate benefit analysis demonstrates that the net balance of GHG emissions and removals generated by the activity over a period of 30 years after the beginning of the activity is lower than a baseline, corresponding to the balance of GHG emissions and removals over a period of 30 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 activity.

(b)the projected long-term average net GHG balance of the activity is lower than the long-term average GHG balance projected for the baseline, referred to in point 2.2, where long term corresponds to the longer duration between 100 years and the duration of an entire forest cycle.

2.3. The calculation of climate benefit complies with all of the following criteria:

(a)the analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories 10 . The climate benefit analysis is based on transparent, accurate, consistent, complete and comparable information, covers all carbon pools impacted by the activity, including above-ground biomass, below-ground biomass, deadwood, litter and soil, relies 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.

(b)the business as-usual practices, including harvesting practices, are ones of the following:

(i)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;

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

(iii)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.

(c)the resolution of the analysis is proportionate to the size of the area concerned and values specific to the area concerned are used.

(d)emissions and removals that occur due to natural disturbances, such as pests and diseases infestations, forest fires, wind, storm damages, that impact the area and cause underperformance do not result in non-compliance with 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 Inventories regarding emissions and removals due to natural disturbances.

2.4. Forest holdings under 13ha are not required to perform a climate benefit analysis.

3. Guarantee of permanence

3.1. In accordance with national law, the forest status of the area in which the activity takes place is guaranteed by one of the following measures:

(a)the area is classified in the permanent forest estate as defined by the FAO 11 ;

(b)the area is classified as a protected area;

(c)the area is the subject of any legal or contractual guarantee ensuring that it will remain a forest.

3.2. In accordance with national law, the operator of the activity commits that future updates to the afforestation plan and the subsequent forest management plan or equivalent instrument, beyond the activity that is financed, will continue to seek the climate benefits as determined in point 2. Besides, the operator of the activity commits to compensate any reduction in the climate benefit determined in point 2 with an equivalent climate benefit resulting from the conduct of an activity that corresponds to one of the forestry activities defined in this Regulation.

4. Audit

Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and the DNSH criteria are verified by either of the following:

(a)the relevant national competent authorities;

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

In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit.

The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity.

5. Group assessment

The compliance with the criteria for substantial contribution to climate change mitigation and with DNSH criteria may be checked:

(a)at the level of the forest sourcing area 12 as defined in Article 2, point (30), of Directive (EU) 2018/2001;

(b)at the level of a group of holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

Detailed information referred to in point 1.2. (k) includes provisions to comply with the criteria set out in Appendix B to this Annex.

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

The use of pesticides is reduced and alternative approaches or techniques, which may include non-chemical alternatives to pesticides, are favoured, in accordance with Directive 2009/128/EC of the European Parliament and of the Council 13 , with exception of occasions where the use of pesticides is needed to control outbreaks of pests and of diseases.

The activity minimises the use of fertilisers and does not use manure. The activity complies with Regulation (EU) 2019/1009 of the European Parliament and of the Council 14 or national rules on fertilisers or soil improvers for agricultural use.

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in Annex I, part A, of Regulation (EU) 2019/1021 15 of the European Parliament and of the Council 16 , the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade 17 , the Minamata Convention on Mercury 18 , the Montreal Protocol on Substances that Deplete the Ozone Layer 19 , 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 20 . The activity complies with the relevant national law on active ingredients.

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

(6) Protection and restoration of biodiversity and ecosystems

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

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

Detailed information referred to in points 1.2(k) (Afforestation plan) and 1.4(i) (Forest management plan or equivalent system) include provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

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

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

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

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

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

(d)ensuring the maintenance and improvement of physical, chemical and biological quality of the soil;

(e)promoting biodiversity-friendly practices that enhance forests’ natural processes;

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

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

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

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’ 30 .

The forest management plan or the equivalent instrument covers a period of 10 years or more, and is continuously updated.

1.2 Information is provided on the following points that are not already documented in the forest management plan or equivalent system:

(a)management goals, including major constraints 31 ;

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

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

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

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

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

(g)consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law);

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

(i)all DNSH criteria relevant to forest management.

1.3. The sustainability of the forest management systems, as documented in the plan referred to in point 1.1, is ensured by choosing the most ambitious of the following approaches:

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

(b)the forest management matches the Forest Europe definition 32 of sustainable forest management, and complies with the Pan-European Operational Level Guidelines for Sustainable Forest Management 33 ;

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

1.4. The activity does not involve the degradation of land with high carbon stock 34 .

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

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

2. Climate benefit analysis

2.1. For areas that comply with the requirements at forest sourcing area level to ensure that carbon stocks and sinks levels in the forest are maintained or strengthened over the long term in accordance with Article 29(7), point (b), of Directive (EU) 2018/2001 the activity complies with the following criteria:

(a)the climate benefit analysis demonstrates that the net balance of GHG emissions and removals generated by the activity over a period of 30 years after the beginning of the activity is lower than a baseline, corresponding to the balance of GHG emissions and removals over a period of 30 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 activity;

(b)long-term climate benefits are considered demonstrated by proof of alignment with Article 29(7), point (b), of Directive (EU) 2018/2001.

2.2. For areas that do not comply with the requirements at forest sourcing area level to ensure that carbon stocks and sinks levels in the forest are maintained or strengthened over the long term in accordance with Article 29(7), point (b), of Directive (EU) 2018/2001 the activity complies with the following criteria:

(a)the climate benefit analysis demonstrates that the net balance of GHG emissions and removals generated by the activity over a period of 30 years after the beginning of the activity is lower than a baseline, corresponding to the balance of GHG emissions and removals over a period of 30 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 activity.

(b)the projected long-term average net GHG balance of the activity is lower than the long-term average GHG balance projected for the baseline, referred to in point 2.2, where long term corresponds to the longer duration between 100 years and the duration of an entire forest cycle.

2.3. The calculation of climate benefit complies with all of the following criteria:

(a)the analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories 35 . The climate benefit analysis is based on transparent, accurate, consistent, complete and comparable information, covers all carbon pools impacted by the activity, including above-ground biomass, below-ground biomass, deadwood, litter and soil, relies 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.

(b)the business-as-usual practices, including harvesting practices, are one of the following:

(i)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;

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

(iii)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.

(c)the resolution of the analysis is proportionate to the size of the area concerned and values specific to the area concerned are used.

(d)emissions and removals that occur due to natural disturbances, such as pests and diseases infestations, forest fires, wind, storm damages, that impact the area and cause underperformance do not result in non-compliance with 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 Inventories regarding emissions and removals due to natural disturbances.

2.4. Forest holdings under 13ha are not required to perform a climate benefit analysis.

3. Guarantee of permanence

3.1. In accordance with national law, the forest status of the area in which the activity takes place is guaranteed by one of the following measures:

(a)the area is classified in the permanent forest estate as defined by the FAO 36 ;

(b)the area is classified as a protected area;

(c)the area is the subject of any legal or contractual guarantee ensuring that it will remain a forest.

3.2. In accordance with national law, the operator of the activity commits that future updates to the forest management plan or equivalent instrument, beyond the activity that is financed, will continue to seek the climate benefits as determined in point 2. Besides, the operator of the activity commits to compensate any reduction in the climate benefit determined in point 2 with an equivalent climate benefit resulting from the conduct of an activity that corresponds to one of the forestry activities defined in this Regulation.

4. Audit

Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and the DNSH criteria are verified by either of the following:

(a)the relevant national competent authorities;

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

In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit.

The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity.

5. Group assessment

The compliance with the criteria for substantial contribution to climate change mitigation and with DNSH criteria may be checked:

(a)at the level of the forest sourcing area 37 as defined in Article 2, point (30), of Directive (EU) 2018/2001;

(b)at the level of a group of holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

Detailed information referred to in point 1.2. (i) includes provisions to comply with the criteria set out in Appendix B to this Annex.

(4) Transition to a circular economy

The silvicultural change induced by the activity on the area covered by the activity is not likely to result in a significant reduction of sustainable supply of primary forest biomass suitable for the manufacturing of wood-based products with long-term circularity potential. This criterion may be demonstrated through the climate benefits analysis referred to in point (2).

(5) Pollution prevention and control

The use of pesticides is reduced and alternative approaches or techniques, which may include non-chemical alternatives to pesticides, are favoured, in accordance with Directive 2009/128/EC, with exception of occasions where the use of pesticides is needed to control outbreaks of pests and of diseases.

The activity minimises the use of fertilisers and does not use manure. The activity complies with Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in the Annex I, part A, of Regulation (EU) 2019/1021 38 , 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 law on active ingredients.

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

(6) Protection and restoration of biodiversity and ecosystems

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

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

Detailed information referred to in point 1.2.(i) includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

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

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

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

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

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

(d)ensuring the maintenance and improvement of physical, chemical and biological quality of the soil;

(e)promoting biodiversity-friendly practices that enhance forests’ natural processes;

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

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

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

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’ 40 .

The forest management plan or equivalent instrument covers a period of 10 years or more and is continuously updated.

1.2. Information is provided on the following points that are not already documented in the forest management plan or equivalent system:

(a)management goals, including major constraints 41 ;

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

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

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

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

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

(g)consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law);

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

(i)all DNSH criteria relevant for forest management.

1.3. The sustainability of the forest management systems, as documented in the plan referred to in point 1.1, is ensured by choosing the most ambitious of the following approaches:

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

(b)the forest management matches the Forest Europe definition 42 of sustainable forest management, and complies with the Pan-European Operational Level Guidelines for Sustainable Forest Management 43 ;

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

1.4. The activity does not involve the degradation of land with high carbon stock 44 .

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

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

2. Climate benefit analysis

2.1. For areas that comply with the requirements at forest sourcing area level to ensure that carbon stocks and sinks levels in the forest are maintained or strengthened over the long term in accordance with Article 29(7), point (b), of Directive (EU) 2018/2001 the activity complies with the following criteria:

(a)the climate benefit analysis demonstrates that the net balance of GHG emissions and removals generated by the activity over a period of 30 years after the beginning of the activity is lower than a baseline, corresponding to the balance of GHG emissions and removals over a period of 30 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 activity;

(b)long-term climate benefits are considered demonstrated by proof of alignment with Article 29(7), point (b), of Directive (EU) 2018/2001.

2.2. For areas that do not comply with the requirements at forest sourcing area level to ensure that carbon stocks and sinks levels in the forest are maintained or strengthened over the long term in accordance with Article 29(7), point (b), of Directive (EU) 2018/2001 the activity complies with the following criteria:

(a)the climate benefit analysis demonstrates that the net balance of GHG emissions and removals generated by the activity over a period of 30 years after the beginning of the activity is lower than a baseline, corresponding to the balance of GHG emissions and removals over a period of 30 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 activity.

(b)the projected long-term average net GHG balance of the activity is lower than the long-term average GHG balance projected for the baseline, referred to in point 2.2, where long term corresponds to the longer duration between 100 years and the duration of an entire forest cycle.

2.3. The calculation of climate benefit complies with all of the following criteria:

(a)the analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories 45 . The climate benefit analysis is based on transparent, accurate, consistent, complete and comparable information, covers all carbon pools impacted by the activity, including above-ground biomass, below-ground biomass, deadwood, litter and soil, relies 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.

(b)the business-as-usual practices, including harvesting practices, are one of the following:

(i)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;

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

(iii)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.

(c)the resolution of the analysis is proportionate to the size of the area concerned and values specific to the area concerned are used.

(d)emissions and removals that occur due to natural disturbances, such as pests and diseases infestations, forest fires, wind, storm damages, that impact the area and cause underperformance do not result in non-compliance with 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 Inventories regarding emissions and removals due to natural disturbances.

2.4. Forest holdings under 13ha are not required to perform a climate benefit analysis.

3. Guarantee of permanence

3.1. In accordance with national law, the forest status of the area in which the activity takes place is guaranteed by one of the following measures:

(a)the area is classified in the permanent forest estate as defined by the FAO 46 ;

(b)the area is classified as a protected area;

(c)the area is the subject of any legal or contractual guarantee ensuring that it will remain a forest.

3.2. In accordance with national law, the operator of the activity commits that future updates to the forest management plan or equivalent instrument, beyond the activity that is financed, will continue to seek the climate benefits as determined in point 2. Besides, the operator of the activity commits to compensate any reduction in the climate benefit determined in point 2 with an equivalent climate benefit resulting from the conduct of an activity that corresponds to one of the forestry activities defined in this Regulation.

4. Audit

Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity the substantial contribution to climate change mitigation criteria and the DNSH criteria is verified by either of the following:

(a)the relevant national competent authorities;

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

In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit.

The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity.

5. Group assessment

The compliance with the criteria for substantial contribution to climate change mitigation and with DNSH criteria may be checked:

(a)at the level of the forest sourcing area 47 as defined in Article 2, point (30), of Directive (EU) 2018/2001;

(b)at the level of a group of holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

Detailed information referred to in point 1.2. (i) includes provisions to comply with the criteria set out in Appendix B to this Annex.

(4) Transition to a circular economy

The silvicultural change induced by the activity on the area covered by the activity is not likely to result in a significant reduction of sustainable supply of primary forest biomass suitable for the manufacturing of wood-based products with long-term circularity potential. This criterion may be demonstrated through the climate benefits analysis referred to in point (2).

(5) Pollution prevention and control

The use of pesticides is reduced and alternative approaches or techniques, which may include non-chemical alternatives to pesticides, are favoured, in accordance with Directive 2009/128/EC, with exception of occasions where the use of pesticides is needed to control outbreaks of pests and of diseases.

The activity minimised the use of fertilisers and does not use manure. The activity complies with Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in Annex I, part A, of Regulation (EU) 2019/1021 48 , the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO Recommended Classification of Pesticides by Hazard 49 . The activity complies with the relevant national law on active ingredients.

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

(6) Protection and restoration of biodiversity and ecosystems

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

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

Detailed information referred to in point 1.2.(i) includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

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

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

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

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

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

(d)ensuring the maintenance and improvement of physical, chemical and biological quality of the soil;

(e)promoting biodiversity-friendly practices that enhance forests’ natural processes;

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

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

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

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 ‘forest area with long-term forest management plan’ 51 .

The forest management plan or the equivalent instrument covers a period of 10 years or more and is continuously updated.

1.2. Information is provided on the following points that are not already documented in the forest management plan or equivalent system:

(a)management goals, including major constraints;

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

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

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

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

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

(g)consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law);

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

(i)all DNSH relevant to forest management.

1.3. The forest management plan or the equivalent instrument:

(a)shows a primary designated management objective 52 that consists in protection of soil and water 53 , conservation of biodiversity 54 or social services 55 based on the FAO definitions;

(b)promotes biodiversity-friendly practices that enhance forests’ natural processes;

(c)includes an analysis of:

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

(ii)condition of harvesting minimizing soil impacts;

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

1.4. The sustainability of the forest management systems as documented in the plan referred to in point 1.1 is ensured by choosing the most ambitious of the following approaches:

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

(b)the forest management matches the Forest Europe definition 56 of sustainable forest management and complies with the Pan-European Operational Level Guidelines for Sustainable Forest Management 57 ;

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

1.5 The activity does not involve the degradation of land with high carbon stock 58 .

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

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

2. Climate benefit analysis

2.1. For areas that comply with the requirements at forest sourcing area level to ensure that carbon stocks and sinks levels in the forest are maintained or strengthened over the long term in accordance with Article 29(7), point (b), of Directive (EU) 2018/2001 the activity complies with the following criteria:

(a)the climate benefit analysis demonstrates that the net balance of GHG emissions and removals generated by the activity over a period of 30 years after the beginning of the activity is lower than a baseline, corresponding to the balance of GHG emissions and removals over a period of 30 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 activity;

(b)long-term climate benefits are considered demonstrated by proof of alignment with Article 29(7), point (b), of Directive (EU) 2018/2001.

2.2. For areas that do not comply with the requirements at forest sourcing area level to ensure that carbon stocks and sinks levels in the forest are maintained or strengthened over the long term in accordance with Article 29(7), point (b), of Directive (EU) 2018/2001 the activity complies with the following criteria:

(a)the climate benefit analysis demonstrates that the net balance of GHG emissions and removals generated by the activity over a period of 30 years after the beginning of the activity is lower than a baseline, corresponding to the balance of GHG emissions and removals over a period of 30 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 activity.

(b)the projected long-term average net GHG balance of the activity is lower than the long-term average GHG balance projected for the baseline, referred to in point 2.2, where long term corresponds to the longer duration between 100 years and the duration of an entire forest cycle.

2.3. The calculation of climate benefit complies with all of the following criteria:

(a)the analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories 59 . The climate benefit analysis is based on transparent, accurate, consistent, complete and comparable information, covers all carbon pools impacted by the activity, including above-ground biomass, below-ground biomass, deadwood, litter and soil, relies 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.

(b)the business as-usual practices, including harvesting practices, are one of the following:

(i)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;

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

(iii)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.

(c)the resolution of the analysis is proportionate to the size of the area concerned and values specific to the area concerned are used.

(d)emissions and removals that occur due to natural disturbances, such as pests and diseases infestations, forest fires, wind, storm damages, that impact 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 Inventories regarding emissions and removals due to natural disturbances.

2.4. Forest holdings under 13ha are not required to perform a climate benefit analysis.

3. Guarantee of permanence

3.1. In accordance with national law, the forest status of the area in which the activity takes place is guaranteed by one of the following measures:

(a)the area is classified in the permanent forest estate as defined by the FAO 60 ;

(b)the area is classified as a protected area;

(c)the area is the subject of any legal or contractual guarantee ensuring that it will remain a forest.

3.2. In accordance with national law, the operator of the activity commits that future updates to the forest management plan or equivalent instrument, beyond the activity that is financed, will continue to seek the climate benefits as determined in point 2. Besides, the operator of the activity commits to compensate any reduction in the climate benefit determined in point 2 with an equivalent climate benefit resulting from the conduct of an activity that corresponds to one of the forestry activities defined in this Regulation.

4. Audit

Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and the DNSH criteria are verified by either of the following:

(a)the relevant national competent authorities;

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

In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit.

The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity.

5. Group assessment

The compliance with the criteria for substantial contribution to climate change mitigation and with DNSH criteria may be checked:

(a)at the level of the forest sourcing area 61 as defined in Article 2, point (30), of Directive (EU) 2018/2001;

(b)at the level of a group of forest holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

Detailed information referred to in point 1.2.(i) includes provisions to comply with the criteria set out in Appendix B to this Annex.

(4) Transition to a circular economy

The silvicultural change induced by the activity on the area covered by the activity is not likely to result in a significant reduction of sustainable supply of primary forest biomass suitable for the manufacturing of wood-based products with long-term circularity potential. This criterion may be demonstrated through the climate benefits analysis referred to in point (2).

(5) Pollution prevention and control

The activity does not use pesticides or fertilisers.

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in Annex I, part A, of Regulation (EU) 2019/1021 62 , 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 63 . The activity complies with the relevant national law on active ingredients.

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

(6) Protection and restoration of biodiversity and ecosystems

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

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

Detailed information referred to in in point 1.2.(i) includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

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

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

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

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

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

(d)ensuring the maintenance and improvement of physical, chemical and biological quality of the soil;

(e)promoting biodiversity-friendly practices that enhance forests’ natural processes;

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

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

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

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 69 , 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 70 . For peatlands, the restoration plan follows the recommendations contained in relevant resolutions of the Ramsar Convention, including the resolution XIII/13.

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

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

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

2.    Climate benefit analysis

2.1. The activity complies with the following criteria:

(a)the climate benefit analysis demonstrates that the net balance of GHG emissions and removals generated by the activity over a period of 30 years after the beginning of the activity is lower than a baseline, corresponding to the balance of GHG emissions and removals over a period of 30 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 activity;

(b)the projected long-term average net GHG balance of the activity is lower than the long-term average GHG balance projected for the baseline, referred to in point 2.2, where long term corresponds to 100 years.

2.2. The calculation of climate benefit complies with all of the following criteria:

(a)the analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories 71 . 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 transparent, accurate, consistent, complete and comparable information, covers all carbon pools impacted by the activity, including above-ground biomass, below-ground biomass, deadwood, litter and soil, relies 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. For coastal wetlands, climate benefit analysis considers projections of expected relative sea level rise and the potential that the wetlands will migrate;

(b)the business-as-usual practices, including harvesting practices, are one of the following:

(i)the management practices as documented before the start of the activity, if any;

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

(c)the resolution of the analysis is proportionate to the size of the area concerned and values specific to the area concerned are used;

(d)emissions and removals that occur due to natural disturbances, such as pests and diseases infestations, fires, wind, storm damages, that impact 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 Inventories regarding emissions and removals due to natural disturbances.

4. Guarantee of permanence

4.1. In accordance with national law, the wetland status of the area in which the activity takes place is guaranteed by one of the following measures:

(a)the area is designated to be retained as wetland and may not be converted to other land use;

(b)the area is classified as a protected area;

(c)the area is the subject of any legal or contractual guarantee ensuring that it will remain a wetland.

4.2. In accordance with the national law, the operator of the activity commits that future updates to the restoration plan, beyond the activity that is financed, will continue to seek the climate benefits as determined in point 2. Besides, the operator of the activity commits to compensate any reduction in the climate benefit determined in point 2 with an equivalent climate benefit resulting from the conduct of an activity that corresponds to one of the environmental protection and restoration activities defined in this Regulation.

5. Audit

Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and with the DNSH criteria are verified by either of the following:

(a)the relevant national competent authorities;

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

In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit.

The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity.

6. Group assessment

The compliance with the criteria for substantial contribution to climate change mitigation and with DNSH criteria may be checked at the level of a group of holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(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 minimises the use of fertilisers and does not use manure. The activity complies with Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in Annex I, part A, of Regulation (EU) 2019/1021 72 , 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 73 . 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 (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 A to this Annex.

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

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

(4) Transition to a circular economy

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

(a)reuse and use of secondary raw materials and 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;

(d)information on and traceability of substances of concern throughout the lifecycle of the manufactured products.

(5) Pollution prevention and control

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

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The economic activity manufactures equipment for the production of hydrogen compliant with the Technical Screening Criteria set out in Section 3.10 of this Annex and equipment for the use of hydrogen.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

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

(a)reuse and use of secondary raw materials and 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;

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

(5) Pollution prevention and control

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

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The economic activity manufactures, repairs, maintains, retrofits 74 , repurposes or upgrades:

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

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

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

(d)until 31 December 2025, vehicles designated as categories M2 and M3 75 that have a type of bodywork classified as ‘CA’ (single-deck vehicle), ‘CB’ (double-deck vehicle), ‘CC’ (single-deck articulated vehicle) or ‘CD’ (double-deck articulated vehicle) 76 , and comply with the latest EURO VI standard, i.e. both with the requirements of Regulation (EC) No 595/2009 of the European Parliament and of the Council 77 and, from the time of the entry into force of amendments to that Regulation, in those amending acts, even before they become applicable, and with the latest step of the Euro VI standard set out in Table 1 of Appendix 9 to Annex I to Commission Regulation (EU) No 582/2011 78 where the provisions governing that step have entered into force but have not yet become applicable for this type of vehicle 79 . Where such standard is not available, the direct CO2 emissions of the vehicles are zero;

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

(f)vehicles of category M1 and N1 classified as light-duty vehicles 80 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 81 , 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;

(g)vehicles of category L 82 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 83 ;

(h)vehicles of categories N2 and N3, and N1 classified as heavy-duty vehicles, not dedicated to transporting fossil fuels with a technically permissible maximum laden mass not exceeding 7,5 tonnes that are ‘zero-emission heavy-duty vehicles’ as defined in Article 3, point (11), of Regulation (EU) 2019/1242 of the European Parliament and of the Council 84 ;

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

(j)inland passenger water transport vessels that:

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

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

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

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

(ii)until 31 December 2025, have direct (tailpipe) emissions of CO2 per tonne kilometre (gCO2/tkm), calculated (or estimated in case of new vessels) using the Energy Efficiency Operational Indicator 85 , 50 % lower than the average reference value for emissions of CO2 defined for heavy duty vehicles (vehicle subgroup 5-LH) in accordance with Article 11 of Regulation (EU) 2019/1242;

(l)sea and coastal freight water transport vessels, vessels for port operations and auxiliary activities, that are not dedicated to transporting fossil fuels, that:

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

(ii)until 31 December 2025, are hybrid and dual fuel vessels that derive at least 25 % of their energy from zero direct (tailpipe) CO2 emission fuels or plug-in power for their normal operation at sea and in ports;

(iii)until 31 December 2025, and only where it can be proved that the vessels are used exclusively for operating coastal and short sea services designed to enable modal shift of freight currently transported by land to sea, the vessels that have direct (tailpipe) CO2 emissions, calculated using the International Maritime Organization (IMO) Energy Efficiency Design Index (EEDI) 86 , 50 % lower than the average reference CO2 emissions value defined for heavy duty vehicles (vehicle subgroup 5-LH) in accordance with Article 11 of Regulation (EU) 2019/1242;

(iv)until 31 December 2025, the vessels have an attained Energy Efficiency Design Index (EEDI) value 10 % below the EEDI requirements applicable on 1 April 2022 87 if the vessels are able to run on zero direct (tailpipe) CO2 emission fuels or on fuels from renewable sources 88 ;

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

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

(ii)until 31 December 2025, hybrid and dual fuel vessels derive at least 25 % of their energy from zero direct (tailpipe) CO2 emission fuels or plug-in power for their normal operation at sea and in ports;

(iii)until 31 December 2025, the vessels have an attained Energy Efficiency Design Index (EEDI) value 10 % below the EEDI requirements applicable on 1 April 2022 if the vessels are able to run on zero direct (tailpipe) CO2 emission fuels or on fuels from renewable sources 89 .

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

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

(a)reuse and use of secondary raw materials and 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;

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

(5) Pollution prevention and control

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

Where applicable, vehicles do not contain lead, mercury, hexavalent chromium and cadmium, in accordance with Directive 2000/53/EC of the European Parliament and of the Council 90 .

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The economic activity manufactures rechargeable batteries, battery packs and accumulators (and their respective components), including from secondary raw materials, that result in substantial GHG emission reductions in transport, stationary and off-grid energy storage and other industrial applications.

The economic activity recycles end-of-life batteries.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

For manufacturing of new batteries, components and materials, the activity assesses the availability of and, where feasible, adopts techniques that support:

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

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

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

Recycling processes meet the conditions set out in Article 12 of Directive 2006/66/EC of the European Parliament and of the Council 91 and in Annex III, Part B, to that Directive, including the use of the latest relevant Best Available Techniques, the achievement of the efficiencies specified for lead-acid batteries, nickel-cadmium batteries and for other chemistries. These processes ensure the recycling of the metal content to the highest degree that is technically feasible while avoiding excessive costs.

Where applicable, facilities carrying out recycling processes meet the requirements laid down in Directive 2010/75/EU of the European Parliament and of the Council 92 .

(5) Pollution prevention and control

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

Batteries comply with the applicable sustainability rules on the placing on the market of batteries in the Union, including restrictions on the use of hazardous substances in batteries, including Regulation (EC) No 1907/2006 of the European Parliament and of the Council 93 and Directive 2006/66/EC.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The economic activity manufactures one or more of the following products and their key components 94 :

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

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

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

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

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

(f)household appliances falling into the highest two populated classes of energy efficiency in accordance with Regulation (EU) 2017/1369 of the European Parliament and of the Council 95 and delegated acts adopted under that Regulation;

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

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

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

(j)presence and daylight controls for lighting systems;

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

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

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

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

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

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

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

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

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

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

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

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

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

(5) Pollution prevention and control

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

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The economic activity manufactures technologies that are aimed at and 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 96 or, alternatively, ISO 14067:2018 97 or ISO 14064-1:2018 98 .

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 A to this Annex.

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

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

(4) Transition to a circular economy

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

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

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

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

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

(5) Pollution prevention and control

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

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The activity manufactures one of the following:

(a)grey cement clinker where the specific GHG emissions 99 are lower than 0,722 100 tCO2e per tonne of grey cement clinker;

(b)cement from grey clinker or alternative hydraulic binder, where the specific GHG emissions 101 from the clinker and cement or alternative binder production are lower than 0,469 102 tCO2e per tonne of cement or alternative binder manufactured.

Where CO2 that would otherwise be emitted from the manufacturing process is captured for the purpose of underground storage, 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 A to this Annex.

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

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

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for the production of cement, lime and magnesium oxide 103 .

No significant cross-media effects occur 104 .

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

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

Substantial contribution to climate change mitigation

The activity manufactures one of the following:

(a)primary aluminium where the economic activity complies with two of the following criteria until 2025 and with all of the following criteria 105 after 2025:

(i)the GHG emissions 106 do not exceed 1,484 107 tCO2e per ton of aluminium manufactured 108 :

(ii)the average carbon intensity for the indirect GHG emissions 109 does not exceed 100g CO2e/kWh;

(iii)the electricity consumption for the manufacturing process does not exceed 15.5 MWh/t Al.

(b)secondary aluminium.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

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

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for the non-ferrous metals industries 110 . No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The activity manufactures one of the following:

(a)iron and steel where GHG emissions 111 , reduced by the amount of emissions assigned to the production of waste gases in accordance with point 10.1.5(a) of Annex VII to Regulation (EU) 2019/331 do not exceed the following values applied to the different manufacturing process steps:

(i)hot metal = 1,331 112 tCO2e/t product;

(ii)sintered ore = 0,163 113 tCO2e/t product;

(iii)coke (excluding lignite coke) = 0,144 114 tCO2e/t product;

(iv)iron casting = 0,299 115 tCO2e/t product;

(v)electric Arc Furnace (EAF) high alloy steel = 0,266 116 tCO2e/t product;

(vi)electric Arc Furnace (EAF) carbon steel = 0,209 117 tCO2e/t product.

(b)steel in electric arc furnaces (EAFs) producing EAF carbon steel or EAF high alloy steel, as defined in Commission Delegated Regulation (EU) 2019/331 and where the steel scrap input relative to product output is not lower than:

(i)70 % for the production of high alloy steel;

(ii)90 % for the production of carbon steel.

Where the CO2 that would otherwise be emitted from the manufacturing process is captured for the purpose of underground storage, 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 A to this Annex.

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

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

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for iron and steel production 118 .

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The activity complies with the life-cycle GHG emissions savings requirement of 73.4% for hydrogen [resulting in life-cycle GHG emissions lower than 3tCO2e/tH2] and 70% for hydrogen-based synthetic fuels relative to a fossil fuel comparator of 94g CO2e/MJ in analogy to the approach set out in Article 25(2) of and Annex V to Directive (EU) 2018/2001.

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 119 or ISO 14064-1:2018 120 .

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 that would otherwise be emitted from the manufacturing process is captured for the purpose of underground storage, the CO2 is transported and stored underground, in accordance with the technical screening criteria set out in Sections 5.11 and 5.12, respectively, of this Annex.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

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

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

(a)the best available techniques (BAT) conclusions for the production of chlor-alkali 121 and the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector 122 ;

(b)the best available techniques (BAT) conclusions for the refining of mineral oil and gas 123 .

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

GHG emissions 124 from the carbon black production processes are lower than 1,141 125 tCO2e per tonne of product.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

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

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

(a)the Best Available Techniques Reference Document (BREF) for the Large Volume Inorganic Chemicals – Solids and Others industry 126 ;

(b)the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector 127 .

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

GHG emissions 128 from the soda ash production processes are lower than 0,789 129 tCO2e per tonne of product.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

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

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

(a)the Best Available Techniques Reference Document (BREF) for the Large Volume Inorganic Chemicals – Solids and Others industry 130 ;

(b)the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector 131 .

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

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

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 Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 132 or ISO 14064-1:2018 133 .

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 A to this Annex.

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

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

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

(a)the best available techniques (BAT) conclusions for the production of chlor-alkali 134 ;

(b)the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector 135 .

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

GHG emissions 136 from the organic basic chemicals production processes are lower than:

(a)for HVC: 0,693 137 tCO2e/t of HVC;

(b)for aromatics: 0,0072 138 tCO2e/t of complex weighted throughput;

(c)for vinyl chloride: 0,171 139 tCO2e/t of vinyl chloride;

(d)for styrene: 0,419 140 tCO2e/t of styrene;

(e)for ethylene oxide/ethylene glycols: 0,314 141 tCO2e/t of ethylene oxide/glycol;

(f)for adipic acid: 0,32 142 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 Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 143 or ISO 14064-1:2018 144 .

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

Agricultural biomass used for the manufacture of organic basic chemicals complies with the criteria laid down in Article 29, paragraphs 2 to 5 of Directive (EU) 2018/2001. Forest biomass used for the manufacture of organic basic chemicals complies with the criteria laid down in Article 29, paragraphs 6 and 7 of that Directive.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

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

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

(a)the best available techniques (BAT) conclusions for the production of large volumes organic chemicals 145 ;

(b)the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector 146 .

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The activity complies with one of the following criteria:

(a)ammonia is produced from hydrogen that complies with the technical screening criteria set out in Section 3.10 of this Annex (Manufacturing of hydrogen);

(b)ammonia is recovered from waste water.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

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

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

(a)the Best Available Techniques Reference Document (BREF) for the manufacture of Large Volume Inorganic Chemicals - Ammonia, Acids and Fertilisers 147 ;

(b)the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector 148 .

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

GHG emissions 149 from the manufacture of nitric acid are lower than 0,038 150 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 A to this Annex.

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

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

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

(a)the Best Available Techniques Reference Document (BREF) for the manufacture of Large Volume Inorganic Chemicals - Ammonia, Acids and Fertilisers 151 ;

(b)the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector 152 .

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The activity complies with one of the following criteria:

(a)the plastic in primary form is fully manufactured by mechanical recycling of plastic waste;

(b)where mechanical recycling is not technically feasible or economically viable, the plastic in primary form is fully manufactured by chemical recycling of plastic waste and the life-cycle GHG emissions of the manufactured plastic, excluding any calculated credits from the production of fuels, are lower than the life-cycle GHG emissions of the equivalent plastic in primary form manufactured from fossil fuel feedstock. Life-cycle GHG emissions are calculated using Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 153 or ISO 14064-1:2018 154 . Quantified life-cycle GHG emissions are verified by an independent third party.

(c)derived wholly or partially from renewable feedstock 155 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 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.

Agricultural biomass used for the manufacture of plastics in its primary form complies with the criteria laid down in Article 29, paragraphs 2 to 5, of Directive (EU) 2018/2001. Forest biomass used for the manufacture of plastics in its primary form complies with the criteria laid down in Article 29, paragraphs 6 and 7, of that Directive.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

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

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

(a)the Best Available Techniques Reference Document (BREF) for the Production of Polymers 156 ;

(b)the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector 157 .

No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

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

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 A 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

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

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 A to this Annex.

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

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

(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

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

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 A to this Annex.

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

In case of construction of offshore wind, the activity does not hamper the achievement of good environmental status as set out in Directive 2008/56/EC of the European Parliament and of the Council 158 , requiring that the appropriate measures are taken to prevent or mitigate impacts in relation to that Directive’s Descriptor 11 (Noise/Energy), laid down in Annex I to that Directive, and as set out in Commission Decision (EU) 2017/848 159 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

The activity complies with the criteria set out in Appendix D to this Annex 160 .

In case of offshore wind, the activity does not hamper the achievement of good environmental status as set out in Directive 2008/56/EC, requiring that the appropriate measures are taken to prevent or mitigate impacts in relation to that Directive’s Descriptors 1 (biodiversity) and 6 (seabed integrity), laid down in Annex I to that Directive, and as set out in 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 A to this Annex.

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

The activity does not hamper the achievement of good environmental status, as set out in Directive 2008/56/EC, requiring that the appropriate measures are taken to prevent or mitigate impacts in relation to that Directive’s Descriptor 11 (Noise/Energy), laid down in Annex I to that Directive, and as set out in 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 161 , 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

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

The activity does not hamper the achievement of good environmental status, as set out in Directive 2008/56/EC, requiring that the appropriate measures are taken to prevent or mitigate impacts in relation to that Directive’s Descriptor 1 (biodiversity), laid down in Annex I to that Directive, and as set out in Decision (EU) 2017/848 in relation to the relevant criteria and methodological standards for that descriptor.

Substantial contribution to climate change mitigation

The activity complies with either of the following criteria:

(a)the electricity generation facility is a run-of-river plant and does not have an artificial reservoir;

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

(c)the life-cycle GHG emissions from the generation of electricity from hydropower, are lower than 100gCO2e/kWh. The life-cycle GHG emissions are calculated using Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 162 , ISO 14064-1:2018 163 or the G-res tool 164 . 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 A to this Annex.

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

1. The activity complies with the provisions of Directive 2000/60/EC, in particular with all the requirements laid down in Article 4 of the Directive.

2. For operation of existing hydropower plants, including refurbishment activities to enhance renewable energy or energy storage potential, the activity complies with the following criteria:

2.1. In accordance with Directive 2000/60/EC and in particular Articles 4 and 11 of that Directive, 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.

2.2. Measures include, where relevant and depending on the ecosystems naturally present in the affected water bodies:

(a)measures to ensure downstream and upstream fish migration (such as fish friendly turbines, fish guidance structures, state-of-the-art fully functional fish passes, measures to stop or minimise operation and discharges during migration or spawning);

(b)measures to ensure minimum ecological flow (including mitigation of rapid, short-term variations in flow or hydro-peaking operations) and sediment flow;

(c)measures to protect or enhance habitats.

2.3. 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.

3. For construction of new hydropower plants, the activity complies with the following criteria:

3.1. In accordance with Article 4 of Directive 2000/60/EC and in particular paragraph 7 of that Article, prior to construction, an impact assessment of the project is carried out to assess all its potential impacts on the status of water bodies within the same river basin and on protected habitats and species directly dependent on water, considering in particular migration corridors, free-flowing rivers or ecosystems close to undisturbed conditions.

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

It assesses in particular the cumulated impacts of this new project with other existing or planned infrastructure in the river basin.

3.2. On the basis of that impact assessment, it has been established that the plant is conceived, by design and location and by mitigation measures, so that it complies with one of the following requirements:

(a)the plant does not entail any deterioration nor compromises the achievement of good status or potential of the specific water body it relates to;

(b)where the plant risks to deteriorate or compromise the achievement of good status/potential of the specific water body it relates to, such deterioration is not significant, and is justified by a detailed cost-benefit assessment demonstrating both of the following:

(i)the reasons of overriding public interest or the fact that 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;

(ii)the fact that the overriding public interest or the benefits expected from the plant cannot, for reasons of technical feasibility or disproportionate cost, be achieved by alternative means that would lead to a better environmental outcome (such as refurbishing of existing hydropower plants or use of technologies not disrupting river continuity).

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

Mitigation measures include, where relevant and depending on the ecosystems naturally present in the affected water bodies:

(a)measures to ensure downstream and upstream fish migration (such as fish friendly turbines, fish guidance structures, state-of the-art fully functional fish passes, measures to stop or minimise operation and discharges during migration or spawning);

(b)measures to ensure minimum ecological flow (including mitigation of rapid, short-term variations in flow or hydro-peaking operations) and sediment flow;

(c)measures to protect or enhance habitats.

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.

3.4. The plant does not permanently compromise the achievement of good status/potential in any of the water bodies in the same river basin district.

3.5. In addition to the mitigation measures referred to above, 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

The activity complies with the criteria set out in Appendix D to this Annex. 165

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 A to this Annex.

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

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

(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 reduce emission levels in order not to hamper the achievement of air quality limit values set out in Directive 2004/107/EC of the European Parliament and of the Council 166 and Directive 2008/50/EC of the European Parliament and of the Council 167 .

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

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

Life-cycle GHG emissions are calculated based on project-specific data, where available, using Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 168 or ISO 14064-1:2018 169 .

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 that would otherwise be emitted from the electricity generation process is captured for the purpose of underground storage, 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.

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 methane emissions are reported and leak is eliminated.

4. Where the activity blends renewable gaseous or liquid fuels with biogas or bioliquids, the agricultural biomass used for the production of the biogas or bioliquids complies with the criteria laid down in Article 29, paragraphs 2 to 5, of Directive (EU) 2018/2001 while forest biomass complies with the criteria laid down in Article 29, paragraphs 6 and 7, of that Directive.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(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 latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for large combustion plants 170 . No significant cross-media effects occur.

For combustion plants with thermal input greater than 1 MW 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 171 .

(6) Protection and restoration of biodiversity and ecosystems

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

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-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for large combustion plants 172 .

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)attains electrical efficiency of at least 36 %;

(b)applies highly efficient CHP (combined heat and power) technology as referred to in Directive 2012/27/EU of the European Parliament and of the Council 173 ;

(c)uses carbon capture and storage technology. Where the CO2 that would otherwise be emitted from the electricity generation process is captured for the purpose of underground storage, the CO2 is transported and stored underground in accordance with the technical screening criteria set out in Sections 5.11 and 5.12, respectively, of this Annex.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(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 174 , emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for large combustion plants 175 . No significant cross-media effects occur.

For combustion plants with thermal input greater than 1 MW 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, measures are implemented to reduce emission levels taking into account the results of the information exchange 176 which are published by the Commission in accordance with Article 6, paragraphs 9 and 10, of Directive (EU) 2015/2193 .

For anaerobic digestion of organic material, where the produced digestate is used as fertiliser or soil improver, either directly or after composting or any other treatment, it meets the requirements for fertilising materials set out in Component Material Categories (CMC) 4 and 5 in Annex II to Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

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 latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for waste treatment 177 . No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The activity complies with one of the following criteria:

1. The transmission and distribution infrastructure or equipment is in an electricity system that complies with at least one of the following criteria:

(a)the system is the interconnected European system, i.e. the interconnected control areas of Member States, Norway, Switzerland and the United Kingdom, and its subordinated systems;

(b)more than 67% of newly enabled generation capacity in the system 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;

(c)the average system grid emissions factor, calculated as the total annual emissions from power generation connected to the system, 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 period;

Infrastructure dedicated to creating a direct connection or expanding an existing direct connection between a substation or network and a power production plant that is more greenhouse gas intensive than 100 gCO2e/kWh measured on a life cycle basis is not compliant.

Installation of metering infrastructure that does not meet the requirements of smart metering systems of Article 20 of Directive (EU) 2019/944 is not compliant.

2. 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 electric vehicle (EV) charging stations and supporting electric infrastructure for the electrification of transport, subject to compliance with the technical screening criteria 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 178 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 50588-1 179 .

(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 such as, but not limited to future smart metering systems or those replacing smart metering systems in line with Article 19(6) of Directive (EU) 2019/944 of the European Parliament and of the Council 180 , which meet the requirements of Article 20 of Directive (EU) 2019/944, able 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)construction and operation of interconnectors between transmission systems, provided that one of the systems is compliant.

For the purposes of this Section, the following specifications apply:

(a)the rolling five-year period used in determining compliance with the thresholds is based on five consecutive historical years, including the year for which the most recent data are available;

(b)a ‘system’ means the power control area of the transmission or distribution network where the infrastructure or equipment is installed;

(c)transmission systems may include generation capacity connected to subordinated distribution systems;

(d)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;

(e)to determine compliance, 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, and individual subordinated transmission or distribution systems within that system is not required to demonstrate compliance separately;

(f)it is possible for a system to become non-compliant after having previously been compliant. In systems that become non-compliant, no new transmission and distribution activities are compliant from that moment onward, until the system complies again with the threshold (except for those activities that are always compliant, see above). Activities in subordinated systems may still be compliant, where those subordinated systems meet the criteria of this Section;

(g)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 to the network.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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 181 .

(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) 182 and for activities carried out in third countries, the 1998 Guidelines of International Commission on Non-Ionizing Radiation Protection (ICNIRP) 183 .

Activities do not use PCBs polyclorinated biphenyls.

(6) Protection and restoration of biodiversity and ecosystems

 The activity complies with the criteria set out in Appendix D to this Annex 184 .

Substantial contribution to climate change mitigation

The activity is the construction and operation of electricity storage including pumped hydropower storage.

Where the activity includes chemical energy storage, the medium of storage (such as hydrogen or ammonia) complies with the criteria for manufacturing of the corresponding product specified in Sections 3.7 to 3.17 of this Annex. In case of using hydrogen as electricity storage, where hydrogen meets the technical screening criteria specified in Section 3.10 of this Annex, re-electrification of hydrogen is also considered part of the activity.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

In case of pumped hydropower storage not connected to a river body, the activity complies with the criteria set out in Appendix B to this Annex.

In case of pumped hydropower storage connected to a river body, the activity complies with the criteria for DNSH to sustainable use and protection of water and marine resources specified in Section 4.5 (Electricity production from hydropower).

(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

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

Substantial contribution to climate change mitigation

The activity stores thermal energy, including Underground 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 A to this Annex.

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

For Aquifer Thermal Energy Storage, the activity complies with the criteria set out in Appendix B to this Annex.

(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

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

Substantial contribution to climate change mitigation

The activity is one of the following:

(a)construction of hydrogen storage facilities;

(b)conversion of existing underground gas storage facilities into storage facilities dedicated to hydrogen-storage;

(c)operation of hydrogen storage facilities where the hydrogen stored in the facility meets the criteria for manufacture of hydrogen set out in Section 3.10. of this Annex.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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 185 .

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

1. Agricultural biomass used for the manufacture of biogas or biofuels for use in transport and for the manufacture of bioliquids complies with the criteria laid down in Article 29, paragraphs 2 to 5, of Directive (EU) 2018/2001. Forest biomass used for the manufacture of biogas or biofuels for use in transport and for the manufacture of bioliquids complies with the criteria laid down in Article 29, paragraphs 6 and 7, of that Directive.

Food-and feed crops are not used for the manufacture of biofuels for use in transport and for the manufacture of bioliquids.

2. The greenhouse gas emission savings from the manufacture of biofuels and biogas for use in transport and from the manufacture of bioliquids 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.

4. Where the CO2 that otherwise would be emitted from the manufacturing process is captured for the purpose of underground storage, 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 A to this Annex.

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

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

(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 latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for waste treatment 186 . No significant cross-media effects occur.

In case of anaerobic digestion of organic material, where the produced digestate is used as fertiliser or soil improver, either directly or after composting or any other treatment, it meets the requirements for fertilising materials set out in Component Material Categories (CMC) 4 and 5 for digestate or CMC 3 for compost, as applicable, in Annex II to Regulation EU 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

(6) Protection and restoration of biodiversity and ecosystems

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

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;

(c)retrofit of gas transmission and distribution networks that enables the integration of hydrogen and other low-carbon gases in the network, including any gas transmission or distribution network activity that enables the increase of 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 A to this Annex.

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

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

(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 187 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

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

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 A to this Annex.

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

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

(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

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

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 188 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 A to this Annex.

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

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

(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 189 .

(6) Protection and restoration of biodiversity and ecosystems

N/A

Substantial contribution to climate change mitigation

The activity consists in the cogeneration 190 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 A 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

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

Substantial contribution to climate change mitigation

The life-cycle GHG emissions from the combined generation of heat/cool and power 191 from geothermal energy are lower than 100gCO2e per 1 kWh of energy output from 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 A to this Annex.

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

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

(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 reduce emission levels in order not to hamper the achievement of air quality limit values set out in Directives 2004/107/EC and 2008/50/EC.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

1. The life-cycle GHG emissions from the co-generation of heat/cool and power 192 from renewable gaseous and liquid fuels are lower than 100gCO2e per 1 kWh of energy output from the co-generation.

Life-cycle GHG emissions are calculated based on project-specific data, where available, using Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 193 or ISO 14064-1:2018 194 .

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 that would otherwise be emitted from the cogeneration process is captured for the purpose of underground storage, 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.

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 methane emissions are reported and leak is eliminated.

4. Where the activity blends renewable gaseous or liquid fuels with biogas or bioliquids, the agricultural biomass used for the production of the biogas or bioliquids complies with the criteria laid down in Article 29, paragraphs 2 to 5, of Directive (EU) 2018/2001 while forest biomass complies with the criteria laid down in Article 29, paragraphs 6 and 7, of that Directive.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(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 latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for large combustion plants 195 . No significant cross-media effects occur.

For combustion plants with thermal input greater than 1 MW 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

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

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 cogeneration 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 A to this Annex.

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

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

(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 latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for large combustion plants 196 , ensuring at the same time that no significant cross-media effects occur.

For combustion plants with thermal input greater than 1 MW 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 197 , 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, where the produced digestate is used as fertiliser or soil improver, either directly or after composting or any other treatment, it meets the requirements for fertilising materials set out in Component Material Categories (CMC) 4 and 5 in Annex II to Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

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 latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for waste treatment 198 . No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

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

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 A 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

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

Substantial contribution to climate change mitigation

The life-cycle GHG emissions from the generation of heat/cool 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 A to this Annex.

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

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

(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 reduce emission levels in order not to hamper the achievement of air quality limit values set out in Directives 2004/107/EC and 2008/50/EC.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

1. The life-cycle GHG emissions from the generation of heat/cool using renewable gaseous and liquid fuels are lower than 100gCO2e/kWh.

Life-cycle GHG emissions are calculated based on project-specific data, where available, using Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 199 or ISO 14064-1:2018 200 .

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 that would otherwise be emitted from the electricity generation process is captured for the purpose of underground storage, 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.

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 methane emissions are reported and leak is eliminated.

4. Where the activity blends renewable gaseous or liquid fuels with biogas or bioliquids, the agricultural biomass used for the production of the biogas or bioliquids complies with the criteria laid down in Article 29, paragraphs 2 to 5, of Directive (EU) 2018/2001 while forest biomass complies with the criteria laid down in Article 29, paragraphs 6 and 7, of that Directive.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(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 in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for large combustion plants 201 . No significant cross-media effects occur.

For combustion plants with thermal input greater than 1 MW 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

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

Substantial contribution to climate change mitigation

1. Agricultural biomass used in the activity for the production of heat and cool 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 emission saving methodology and 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 heat 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 A to this Annex.

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

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

(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 latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for large combustion plants 202 , ensuring at the same time that no significant cross-media effects occur.

For combustion plants with thermal input greater than 1 MW 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 203 , 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, where the produced digestate is used as fertiliser or soil improver, either directly or after composting or any other treatment, it meets the requirements for fertilising materials set out in Component Material Categories (CMC) 4 and 5 in Annex II to Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

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 latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for waste treatment 204 . No significant cross-media effects occur.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The activity produces heat/cool from waste heat.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

Pumps and the kind of equipment used, which is covered by Ecodesign and Energy labelling comply, where relevant, with the top class requirements of the energy label laid down in Regulation (EU) 2017/1369, and with implementing regulations under Directive 2009/125/EC and represent the best available technology.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The water supply system complies with one of the following criteria:

(a)the net average energy consumption for abstraction and treatment equals to or is lower than 0.5 kWh per cubic meter produced water supply. Net energy consumption may take into account measures decreasing energy consumption, such as source control (pollutant load inputs), and, as appropriate, energy generation (such as hydraulic, solar and wind energy);

(b)the leakage level is either calculated using the Infrastructure Leakage Index (ILI) 205  rating method and the threshold value equals to or is lower than 1.5, or is calculated using another appropriate method and the threshold value is established in accordance with Article 4 of Directive (EU) 2020/2184 of the European Parliament and of the Council 206 . That calculation is to be applied across the extent of water supply (distribution) network where the works are carried out, i.e. at water supply zone level, district metered area(s) (DMAs) or pressure managed area(s) (PMAs).

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The renewal of the water supply system leads to improved energy efficiency in one of the following ways:

(a)by decreasing the net average energy consumption of the system by at least 20% compared to own baseline performance averaged for three years, including abstraction and treatment, measured in kWh per cubic meter produced water supply;

(b)by closing the gap by at least 20% either between the current leakage level averaged over three years, calculated using the Infrastructure Leakage Index (ILI) rating method and an ILI of 1.5 207 , or between the current leakage level averaged over three years, calculated using another appropriate method, and the threshold value established in accordance with Article 4 of Directive (EU) 2020/2184. The current leakage level averaged over three years is calculated across the extent of water supply (distribution) network where the works are carried out, i.e. for the renewed water supply (distribution) network at district metered area(s) (DMAs) or pressure managed area(s) (PMAs).

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

1.The net energy consumption of the waste water treatment plant equals to or is lower than:

(a)35 kWh per population equivalent (p.e.) per annum for treatment plant capacity below 10 000 p.e.;

(b)25 kWh per population equivalent (p.e.) per annum for treatment plant capacity between 10 000 and 100 000 p.e.;

(c)20 kWh per population equivalent (p.e.) per annum for treatment plant capacity above 100 000 p.e.

Net energy consumption of the operation of the waste water treatment plant may take into account measures decreasing energy consumption relating to source control (reduction of storm water or pollutant load inputs), and, as appropriate, energy generation within the system (such as hydraulic, solar, thermal and wind energy).

2. For the construction and extension of a waste water treatment plant or a waste water treatment plant with a collection system, which are substituting more GHG-intensive treatment systems (such as septic tanks, anaerobic lagoons), an assessment of the direct GHG emissions is performed 208 . The results are disclosed to investors and clients on demand. 

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

The activity complies with the criteria set out in Appendix B to this Annex. Where the waste water is treated to a level suitable for reuse in agricultural irrigation, the required risk management actions to avoid adverse environmental impacts have been defined and implemented 209 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

Discharges to receiving waters meet the requirements laid down in Council Directive 91/271/EEC 210 or as required by national provisions stating maximum permissible pollutant levels from discharges to receiving waters.

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

Sewage sludge is used in accordance with Council Directive 86/278/EEC 211 or as required by national law relating to the spreading of sludge on the soil or any other application of sludge on and in the soil.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

1. The renewal of a collection system improves energy efficiency by decreasing the average energy consumption by 20% compared to own baseline performance averaged over three years, demonstrated on an annual basis. That decrease of energy consumption can be accounted for at the level of the project (i.e. the collection system renewal) or, across the downstream waste water agglomeration (i.e. including the downstream collection system, treatment plant or discharge of waste water).

2. The renewal of a waste water treatment plant improves energy efficiency by decreasing the average energy consumption of the system by at least 20% compared to own baseline performance averaged over three years, demonstrated on an annual basis.

3. For the purposes of points 1 and 2, the net energy consumption of the system is calculated in kWh per population equivalent per annum of the waste water collected or effluent treated, taking into account measures decreasing energy consumption relating to source control (reduction of storm water or pollutant load inputs) and, as appropriate, energy generation within the system (such as hydraulic, solar, thermal and wind energy).

4. For the purpose of point 1 and 2, the operator demonstrates that there are no material changes relating to external conditions, including modifications to discharge authorisation(s) or changes in load to the agglomeration that would lead to a reduction of energy consumption, independent of efficiency measures taken.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

The activity complies with the criteria set out in Appendix B to this Annex. Where the waste water is treated to a level suitable for reuse in agricultural irrigation, the required risk management actions to avoid adverse environmental impacts have been defined and implemented 212 .

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

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

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

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

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

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

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

N/A

(4) Transition to a circular economy

Separately collected waste fractions are not mixed in waste storage and transfer facilities with other waste or materials with different properties.

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

N/A

Substantial contribution to climate change mitigation

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

2. The produced biogas is used directly for the generation of electricity or heat, or upgraded to bio-methane for injection in the natural gas grid, or used as vehicle fuel or as feedstock in chemical industry.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(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 for anaerobic treatment of waste in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for waste treatment 214 . No significant cross-media effects occur.

Where the resulting digestate is intended for use as fertiliser or soil improver, its nitrogen content (with tolerance level ±25 %) is communicated to the buyer or the entity in charge of taking off the digestate.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

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

2. The produced biogas is used directly for the generation of electricity or heat, or upgraded to bio-methane for injection in the natural gas grid, or used as vehicle fuel or as feedstock in chemical industry.

3. The bio-waste that is used for anaerobic digestion is source segregated and collected separately.

4. The produced digestate is used as fertiliser or soil improver, either directly or after composting or any other treatment.

5. In the dedicated bio-waste treatment plants, the share of food and feed crops 216 used as input feedstock, measured in weight, as an annual average, is less than or equal to 10% of the input feedstock.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

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 latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for waste treatment 217 . No significant cross-media effects occur.

The produced digestate meets the requirements for fertilising materials set out in Component Material Categories (CMC) 4 and 5 for digestate or CMC 3 for compost, as applicable, in Annex II to Regulation (EU) 2019/1009, or national rules on fertilisers or soil improvers for agricultural use

The Nitrogen content (with tolerance level ±25%) of the digestate used as fertiliser or soil improver is communicated to the buyer or the entity in charge of taking off the digestate.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

1. The bio-waste that is composted is source segregated and collected separately.

2. The compost produced is used as fertiliser or soil improver and meets the requirements for fertilising materials set out in Component Material Category 3 in Annex II to Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

N/A

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

For composting plants treating over 75 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 out for aerobic treatment of waste in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for waste treatment 219 . No significant cross-media effects occur.

The site has a system in place that prevents leachate reaching groundwater.

The compost produced meets the requirements for fertilising materials set out in Component Material Category 3 in Annex II to Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The activity converts at least 50 %, in terms of weight, of the processed separately collected non-hazardous waste into secondary raw materials that are suitable for the substitution of virgin materials in production processes.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

N/A

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

1. The landfill has not been opened after 8 July 2020.

2. The landfill or landfill cell where the gas capture system is newly installed, extended, or retrofitted is permanently closed and is not taking in further biodegradable waste 221 .

3. The produced landfill gas is used for the generation of electricity or heat as biogas 222 , or upgraded to bio-methane for injection in the natural gas grid, or used as vehicle fuel or as feedstock in chemical industry.

4. Methane emissions from the landfill and leakages from the landfill gas collection and utilisation facilities are subject to control and monitoring procedures set out in Annex III to Council Directive 1999/31/EC 223 .

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

N/A

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

The permanent closure and remediation as well as the after-care of old landfills, where the landfill gas capture system is installed, are carried out in accordance with the following rules:

(a)general requirements set out in Annex I to Directive 1999/31/EC;

(b)control and monitoring procedures set out in Annex III to that Directive.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

1. The CO2 transported from the installation where it is captured to the injection point does not lead to CO2 leakages above 0.5 % of the mass of CO2 transported.

2. The CO2 is delivered to a permanent CO2 storage site that meets the criteria for underground geological storage of CO2 set out in Section 5.12 of this Annex; or to other transport modalities, which lead to permanent CO2 storage site that meet those criteria.

3. Appropriate leak detection systems are applied and a monitoring plan is in place, with the report verified by an independent third party.

4. The activity may include the installation of assets that increase the flexibility and improve the management of an existing network..

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

1. Characterisation and assessment of the potential storage complex and surrounding area, or exploration within the meaning of Article 3, point (8), of Directive 2009/31/EC of the European Parliament and of the Council 224 is carried out in order to establish whether the geological formation is suitable for use as a CO2 storage site.

2. For operation of underground geological CO2 storage sites, including closure and post-closure obligations:

(a)appropriate leakage detection systems are implemented to prevent release during operation;

(b)a monitoring plan of the injection facilities, the storage complex, and, where appropriate, the surrounding environment is in place, with the regular reports checked by the competent national authority.

3. For the exploration and operation of storage sites within the Union, the activity complies with Directive 2009/31/EC. For the exploration and operation of storage sites in third countries, the activity complies with ISO 27914:2017 225 for geological storage of CO2.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

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

(4) Transition to a circular economy

N/A

(5) Pollution prevention and control

The activity complies with Directive 2009/31/EC.

(6) Protection and restoration of biodiversity and ecosystems

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

Substantial contribution to climate change mitigation

The activity complies with one of the following criteria:

(a)the trains and passenger coaches have zero direct (tailpipe) CO2 emissions;

(b)the trains and passenger coaches 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).

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

N/A

(4) Transition to a circular economy

Measures are in place to manage waste in accordance with the waste hierarchy, in particular during maintenance.

(5) Pollution prevention and control

Engines for the propulsion of railway locomotives (RLL) and engines for the propulsion of railcars (RLR) comply with emission limits set out in Annex II to Regulation (EU) 2016/1628 of the European Parliament and of the Council 226 .

(6) Protection and restoration of biodiversity and ecosystems

N/A

Substantial contribution to climate change mitigation

1. The activity complies with one or both of the following criteria:

(a)the trains and wagons have zero direct tailpipe CO2 emission;

(b)the trains and wagons 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).

2. The trains and wagons are not dedicated to the transport of fossil fuels.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

N/A

(4) Transition to a circular economy

Measures are in place to manage waste, in accordance with the waste hierarchy, in particular during maintenance.

(5) Pollution prevention and control

Engines for the propulsion of railway locomotives (RLL) and engines for the propulsion of railcars (RLR) comply with emission limits set out in Annex II to Regulation (EU) 2016/1628.

(6) Protection and restoration of biodiversity and ecosystems

N/A

Substantial contribution to climate change mitigation

The activity complies with the one of following criteria:

(a)the activity provides urban or suburban passenger transport and its direct (tailpipe) CO2 emissions are zero 227 ;

(b)until 31 December 2025, the activity provides interurban passenger road transport using vehicles designated as categories M2 and M3 228 that have a type of bodywork classified as ‘CA’ (single-deck vehicle), ‘CB’ (double-deck vehicle), ‘CC’ (single-deck articulated vehicle) or ‘CD’ (double-deck articulated vehicle) 229 , and comply with the latest EURO VI standard, i.e. both with the requirements of Regulation (EC) No 595/2009 and, from the time of the entry into force of amendments to that Regulation, in those amending acts, even before they become applicable, and with the latest step of the Euro VI standard set out in Table 1 of Appendix 9 to Annex I to Regulation (EU) No 582/2011 where the provisions governing that step have entered into force but have not yet become applicable for this type of vehicle 230 . Where such standard is not available, the direct CO2 emissions of the vehicles are zero.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

N/A

(4) Transition to a circular economy

Measures are in place to manage waste, in accordance with the waste hierarchy, both in the use phase (maintenance) and the end-of-life of the fleet, including through reuse and recycling of batteries and electronics (in particular critical raw materials therein).

(5) Pollution prevention and control

For road vehicles of categories M, tyres comply with external rolling noise requirements in the highest populated class and with Rolling Resistance Coefficient (influencing the vehicle energy efficiency) in the two highest populated classes as set out in Regulation (EU) 2020/740 of the European Parliament and of the Council 231 and as can be verified from the European Product Registry for Energy Labelling (EPREL). 

Where applicable, vehicles comply with the requirements of the most recent applicable stage of the Euro VI heavy duty emission type-approval set out in accordance with Regulation (EC) No 595/2009.

(6) Protection and restoration of biodiversity and ecosystems

N/A

Substantial contribution to climate change mitigation

1. The propulsion of personal mobility devices comes from the physical activity of the user, from a zero-emissions motor, or a mix of zero-emissions motor and physical activity.

2. The personal mobility devices are allowed to be operated on the same public infrastructure as bikes or pedestrians.

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

N/A

(4) Transition to a circular economy

Measures are in place to manage waste, in accordance with the waste hierarchy, both in the use phase (maintenance) and the end-of-life, including through reuse and recycling of batteries and electronics (in particular critical raw materials therein).

(5) Pollution prevention and control

N/A

(6) Protection and restoration of biodiversity and ecosystems

N/A

Substantial contribution to climate change mitigation

The activity complies with the following criteria:

(a)for vehicles of category M1 and N1, both falling under the scope of Regulation (EC) No 715/2007:

(i)until 31 December 2025, specific emissions of CO2, as defined in Article 3(1), point (h), of Regulation (EU) 2019/631, are 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.

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

Do no significant harm (‘DNSH’)

(2) Climate change adaptation

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

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

N/A

(4) Transition to a circular economy

Vehicles of categories M1 and N1 are both of the following:

(a)reusable or recyclable to a minimum of 85% by weight;

(b)reusable or recoverable to a minimum of 95% by weight 236 .

Measures are in place to manage waste both in the use phase (maintenance) and the end-of-life of the fleet, including through reuse and recycling of batteries and electronics (in particular critical raw materials therein), in accordance with the waste hierarchy.

(5) Pollution prevention and control

Vehicles comply with the requirements of the most recent applicable stage of the Euro 6 light-duty emission type-approval 237 set out in accordance with Regulation (EC) No. 715/2007.

Vehicles comply with the emission thresholds for clean light-duty vehicles set out in Table 2 of the Annex to Directive 2009/33/EC of the European Parliament and of the Council 238 .

For road vehicles of categories M and N, tyres comply with external rolling noise requirements in the highest populated class and with Rolling Resistance Coefficient (influencing the vehicle energy efficiency) in the two highest populated classes as set out in Regulation (EU) 2020/740 and as can be verified from the European Product Registry for Energy Labelling (EPREL).

Vehicles comply with Regulation (EU) No 540/2014 of the European Parliament and of the Council 239 .

(6) Protection and restoration of biodiversity and ecosystems

N/A