1.10.2020

Official Journal of the European Union

C 324/1

Resolution of the European Committee of the Regions — Revised Multiannual Financial Framework and European Sustainable Investment Plan

(2020/C 324/01)

THE EUROPEAN COMMITTEE OF THE REGIONS

Revised Multiannual Financial Framework and Union Recovery Instrument

welcomes the Commission’s proposal for the next Multiannual Financial Framework (MFF) of EUR 1 100 billion and the European Recovery Instrument (‘Next Generation EU’) of EUR 750 billion, which can pave the way for a stronger, more sustainable, cohesive and resilient Union. It provides a first response to tackle the imminent impact of the COVID-19 crisis, and to addressing the Union’s long-term objectives;

acknowledges the efforts made by the Commission to address the concerns of Member States the most hit by the crisis and those whose regions are still lagging behind, while trying to strike a balance between the need for grants and the leverage effect of financial instruments;

is however concerned that the revised proposal for the MFF of EUR 1 100 billion falls EUR 34,6 billion short of the Commission proposal of 2018 and even further below the positions as put forward by the CoR and the European Parliament, reducing the ability of the EU to address the long-term objectives of the EU. Here in particular there must be more serious involvement of the CoR and the European Parliament, as appropriate;

notes that increasing the headroom for the EU budget by temporarily increasing the own resources ceiling by 0,6 % of the EU GNI provides the EU with a more adequate budget to support the EU’s recovery and match the ambitions set out in the strategic agenda of the EU;

takes note of the Commission’s announcement of proposals on potential new own resources that are linked to the objectives of the recovery plan; underlines, however, that two years after their first proposal on a post-2020 MFF, the Commission still did not put forward legislative proposals for real own resources; reiterates in this respect its call upon the Commission to urgently present concrete legislative proposals on the matter, e.g. on a plastics tax and emissions trading;

reiterates that both the MFF and the Recovery Plan must focus on cohesion as a fundamental value of the European Union, to pursue major challenges such as the post-COVID-19 crisis recovery, the European Green Deal, the Sustainable Development Goals, the European Pillar of Social Rights as well as stimulating competitiveness and overcoming disparities, as well as the digital transformation to ensure that no one and no place is left behind;

stresses the fact that local and regional authorities represent one third of public spending and two thirds of public investment; they implement 70 % of all EU legislation, 70 % of climate mitigation measures and 90 % of climate adaptation policies, therefore an essential decision must be made on the necessity to involve — regarding elaboration, consultation, implementation and funds’ management — all local and regional authorities, as well as to transform into a compulsory rule that Member States must allow all local authorities to benefit and to use the funds for investments, such as the Integrated Territorial Investment;

Cohesion at the centre of the recovery

highlights the fact that the asymmetric impact of the COVID-19 pandemic on the EU’s economic, social and territorial cohesion and its regions require an adequate policy response;

welcomes the European Commission’s proposal to ensure the role of Cohesion Policy as a strong EU long-term investment policy, as well as the additional investments through the new top-up support initiative called REACT-EU and welcomes the approach that ensures support is commensurate with the impact of the crisis. In this way, continuity is essential for LRAs as they move to recovery phases and provide support to the people and places that need it most. Altogether, these proposals provide for an immediate and effective response to the COVID-19 pandemic with its social and economic consequences; underlines, however, that the flexibilities in this new programme should not be centrally managed and that they should be implemented under the shared management principle, respecting the prerogatives of local and regional authorities;

10.

calls for further clarity with regard to the interplay between different new mechanisms, such as React EU, Just Transition Fund, and Recovery and Resilience Facility to avoid additional complexity and heavier national restrictions being added by the Member States;

11.

notes that the proposed extension of the current operational programmes should allow for a rapid implementation of crucial investment. Calls for a swift approval of proposals aimed at increasing flexibility and widening the scope of areas to support, among others, health services, tourism, agriculture, education, culture sectors and SMEs that would help cities and regions invest money where it is most needed in accordance with the principles of Cohesion Policy;

12.

is concerned about the temporary nature of some of the reinforcements, in particular in relation to Cohesion Policy and rural development, which do not correspond to the long-term development needs and the initial cuts made by the Commission in the 2018 proposals; therefore welcomes the proposal of the Commission to review the national allocations for Cohesion Policy in 2024 to possibly add another EUR 10 billion to the Cohesion Policy envelope without any Member State losing parts of their allocations;

13.

regrets that the Commission did not reverse its decision to separate the EAFRD from the Common Provisions Regulation, which risks hampering the (much needed) integrated development of urban and rural areas;

14.

regrets that the share of financial resources is directed to measures at Member State level instead of the local and regional level, while many of the competencies for health care, social measures and resilience are at local and/or regional level and therefore underlines the need to respect the principles of partnership decentralisation and multilevel governance;

15.

highlights the importance of European territorial cooperation to help people, communities and businesses cooperate across borders, overcome the damaging effects of the crisis, and accelerate economic recovery. Collaboration will be essential to the recovery, and the new Interregional Innovation Investments mechanism will provide crucial support for developing European industrial and innovation value chains, in line with the smart specialisation strategies;

16.

welcomes the fact that a proper territorial impact assessment of the asymmetric impacts at regional level was carried out in the accompanying Staff Working Document;

17.

welcomes the fact that the strong link to the strategic policy objectives of the EU (Green Deal, digitalisation) is being kept and that the Commission is putting them forward as tools for a European recovery; regrets, however, that the European Pillar of Social Rights is not at the core of the EU’s recovery strategy;

18.

considers it important that a recovery, in line with a strong Cohesion Policy, is rolled out in a way that captures the tenets of active subsidiarity;

Recovery Plan and European Semester

19.

welcomes the Commission’s ambitious proposal for a Recovery and Resilience Facility which will allow large-scale financial support for necessary investment and reforms; recalls that local and regional authorities are responsible for more than half of public investment and must therefore be able to receive adequate support from this initiative; highlights in this respect the risk that the delivery of the Recovery and Resilience Facility through national programmes bears the risk of lacking appropriate information and communication of the EU’s intervention towards its citizens;

20.

asks the European Commission to ensure the coherence of the recovery plans, avoid investment duplications and excess bureaucracy or administrative burdens in order to be efficient and achieve the common goal of overcoming the climate, economic and social crisis as soon as possible;

21.

stresses that the strong link of the Recovery and Resilience Facility(RRF) to the European Semester increases the urgency for a deep reform of the European Semester and the EU’s economic governance towards a transparent, inclusive and democratic process. If the European Semester remained unreformed, the RFF risks leading to further centralisation, a top-down approach of the recovery plans and the return to policies, which take no account of economic, social and territorial cohesion among and within Member States and hamper the urgently needed public investment for the EU’s sustainable recovery;

22.

believes therefore that the European Semester should integrate the principles of partnership, multilevel governance and a territorial dimension, if it is to become a legitimate and efficient delivery mechanism. Implementing the CoR’s proposal for a Code of Conduct for the involvement in the Semester of local and regional authorities at national level and of the European Committee of the Regions at European level is therefore more urgent than ever;

23.

supports the Commission’s ambition to strengthen the EU’s recovery as well as its resilience and strategic autonomy through an upgrade of InvestEU and the creation of the Strategic Investment Facility;

24.

welcomes the proposal for a new Solvency Support Instrument, which will kick-start the EU economy by incentivising private investments and prepare companies from across the economy for a carbon-neutral and digitally enabled future. It needs to be rolled out swiftly and guidelines that clearly align investments with EU priorities would be welcome to fulfil its objective of helping otherwise viable businesses survive the current crisis; underlines that this support must be granted according to transparent criteria taking into account not only the specific impact on the sector and region but also the public financial support otherwise received;

More resilient and greener Union

25.

welcomes the substantial increase in the Just Transition Fund (JTF) envelope for regions facing major challenges in the energy transition, bringing the overall amount of the JTF to EUR 40 billion; however demand that regions should be taken into account which, in anticipation of effective regulatory measures for climate protection, invested very early and very extensively in renewable energies and technologies of renewable energies and will continue to do so; Draws the attention about the special context of regions dependant on fossil fuels and with isolated energetic systems, as it is the case with islands and outermost regions; Is however deeply worried by the fact that the financial resources needed to decarbonise EU economy go far beyond what has been proposed by the European Commission;

26.

welcomes the stand-alone EU4Health Programme worth EUR 7,7 billion in additional resources, bringing the overall total of EUR 9,4 billion as part of the third pillar of the Recovery Plan for Europe in line with the recent political demands of the CoR; insists that the instrument must remain a constant commitment to health in the EU budget and not only a temporary instrument within the 2021-2027 MFF;

27.

calls for a further strengthening of regional and local aspects in health-related measures, especially on cross-border health care and health care in the outermost regions, and notes that, due to the decentralised nature of health systems in some cases, Member States and the European Commission need to involve regional governments more closely in emergency health responses and to follow their advice on the allocation of funds;

28.

welcomes the EUR 2 billion reinforcement of rescEU to develop a permanent capacity to manage all types of crises, notably by establishing emergency response infrastructure, transport capacity and emergency support teams. Insists that a temporary one-off instrument will not be enough and that a long-term commitment along with a reinforced budget is needed; welcomes the commitment from the Commission, in a spirit of preparedness, to learn lessons from the current pandemic and reinforce programmes including but not limited to rescEU and Horizon Europe;

29.

agrees with the need to further develop the EU’s emergency and disaster response capacities and supports the Commission’s proposal to reinforce its emergency tools, such as the EU Solidarity Fund and the Solidarity and Emergency Aid Reserve, and to make them more flexible. Stresses, however, that the proposed tools and measures also need to take into account needs and circumstances at local and regional level specially in particularly vulnerable areas like the outermost regions;

30.

recalls the added value of rural territories for the success of the European project and in particular in facing extreme situations. Regions and local authorities develop innovative solutions and meet essential European food safety needs, also for the rest of the European population. The current emergency calls for changes to the social, economic and territorial paradigm to bridge the gap and to better connect and foster cooperation between urban and rural areas;

31.

regrets the Commission proposal to decrease the EAFRD budget compared to the previous programming period, which runs counter to the EU’s objective of territorial cohesion. Welcomes the EURo15 billion in additional support foreseen for rural development; underlines, however, that this small increase does not compensate for the 28 % budget cut proposed by the Commission in 2018 for the EAFRD; also regrets that the European Commission in the revised proposal for the MFF reduced the funding for the Common Agricultural Policy by 9 % compared to the MFF for 2014-2020;

32.

calls for the POSEI budget, which lays down specific measures for agriculture in the Union’s outermost regions, to be bolstered, and for the Commission’s proposed cuts for the period 2021-2027 to be reversed;

33.

underlines that funding for the European Agricultural Fund for Rural Development must reflect the needs and the ambition of the recently published Farm to Fork and Biodiversity Strategy and support farmers and rural areas in making the necessary structural changes for a transition towards more sustainable food systems; the Biodiversity Strategy, however, needs concrete tools, robust financing and needs to be developed together with regions and cities, who will also have to implement it;

34.

emphasises its strong rejection of the solutions proposed by the European Commission, which will further exacerbate the situation of local and regional authorities compared with today when it comes to the time limit for using annual allocations from EU programmes and to the level of pre-financing and, in particular, co-financing of projects;

35.

welcomes the EUR 10,5 billion increase in the Neighbourhood & Development Instrument (NDICI) compared to the latest MFF proposal, which brings the instrument to EUR 86 billion, of which EUR 1 billion will already be made available in 2020;

36.

supports the intention to stimulate growth after the pandemic by investing in critical transport infrastructure and cross-border connections to promote the green transition towards zero-emission mobility, especially by building one million charging points for electric vehicles. Notes that the availability of clean fuels is important for territorial and social cohesion, and lower demand in rural and insular areas should be compensated by a special scheme, similar to the WiFi4EU programme for rural areas;

37.

regrets that the general basis of the new Rights and Values programme, which is to fund efforts to protect the EU’s fundamental rights and values and encourage active European citizenship, has not been increased to meet the huge challenges in this regard in some Member States;

38.

recalls that the Green Deal was designed as a transformation strategy which protects the environment, and thus our livelihood; underlines that renewable energies, clean technologies, the circular economy and the digital transformation are a great economic and industrial opportunity to deliver growth and jobs and create a new prosperity model;

39.

points out that the CoR fully supports the implementation of the Green Deal and the development of the Climate Pact through coordinated and cross-cutting measures and initiatives that ensure due consideration of multilevel governance and the territorial diversity and the principle that no person or region is left behind; considers that regions and cities are well placed to accelerate the process through a host of activities, including public procurement, building renovation, clean transport, better waste management and digital upgrading and sustainable tourism transformation;

40.

in this context, calls for additional instruments granting direct access to the EU funds for local and regional authorities for their sustainable actions under the new Multiannual Financial Framework, like for example the existing European City Facility under the Horizon 2020 Programme;

41.

calls for a more flexible use of the new MFF resources in order to assess and adapt the real costs associated with the transition to sustainable development and a green recovery, and encourages collaborative public-private innovation initiatives driven by cities and regions;

42.

calls for EU funding to always be subject to a climate impact and sustainability assessment. Subsidies, aid and support programmes that directly or indirectly harm the environment should be reviewed in light of their consistency with the climate and sustainability goals;

43.

is concerned by the green transformation investment gap, recently estimated at EUR 470 billion per year; underlines that a detailed plan on how to finance this massive gap is urgently needed;

44.

welcomes the proposed ‘Renovation Wave’ and asks for adequate funding and the involvement of the entire value chain in order to drive the recovery. Considering the extreme differences between territories, regions and cities should be given autonomy to plan and especially so in the implementation phase of their plans, as well as direct access to European Structural and Investment Funds. Training and knowledge sharing should also be part of the European framework to promote synergies to be exploited and to increase efficiency in the use of funds;

Future-oriented Union

45.

welcomes the reinforcement of Horizon Europe by EUR 7,8 billion, EUR 1,5 billion for Digital Europe and of the CEF Transport by EUR 1,5 billion. The extra research money, especially in health, green economy and the European Innovation Council, has a clearly local impact; points out that many regional authorities are responsible for universities and research institutions and may therefore gain indirectly from these programmes; notes that research funding must be granted on a competitive basis to ensure survival in the global research and innovation market and to strengthen European research consortia;

46.

is concerned, however, by persisting cuts to the Energy and Digital strands of the CEF;

47.

welcomes the European Commission’s proposals for the European Social Fund Plus in order to reinforce support to measures addressing youth unemployment and child poverty as well as the additional focus on supporting the workforce in the green and digital transitions and the doubling of the European Globalisation Fund (EGF);

48.

welcomes the Commission’s proposal to at least to a small extent strengthen the investment in young people and the cultural and creative sectors by adding EUR +3,4 billion to the Erasmus programme and EUR 150 million to the Creative Europe Programme; is, however, concerned that these increases still fall short of the Commission proposals of May 2018 and maintains its demand for tripling the number of participants in the Erasmus programme (1) and for EUR 2 billion for the Creative Europe Programme (2);

49.

applauds the special attention paid to culture, cultural heritage, the audio-visual and creative sectors, which together with tourism have been greatly affected by the crisis and supports the fact that they could benefit from the REACT-EU initiative;

50.

calls for the provision, as part of the EU’s economic recovery plan, of an appropriate framework in the short, medium and long term for less economically diversified regions that specialise in the sectors most affected by the impact of the COVID-19 crisis;

51.

underlines the importance of the revision of educational policies of the European Union, as well as of the necessity to update the Digital Education Action Plan that is needed for the post-COVID-19 period, helping regions and less developed regions to be well prepared and equipped for digital education, that would support those areas that are affected by the digital gap in this point of view.

Sustainable Europe Investment Plan (3)

52.

believes that the COVID-19 crisis cannot be allowed to disrupt Europe’s ambitions to implement the Sustainable Development Goals and become climate-neutral by 2050, which are only realistic if they go hand in hand with the appropriate financial means and an appropriate fiscal and regulatory framework;

53.

welcomes the European Commission’s ambition to mobilise EUR 1 trillion of private and public sustainable investments over the coming decade, but is concerned that: (a)othis would only represent a relatively small share of the overall investments needed, which the European Commission itself estimates at EUR 260 billion a year by 2030; (b)othis estimate is limited to climate and energy-related investment, and achieving broader sustainability objectives including social and human capital investments would thus require even greater sums; (c)othe headline figure of EUR 1 trillion largely does not rely on ‘additional’ new funds or initiatives but rather on ongoing or already planned EU policies and instruments;

54.

deplores the fact that the Plan’s headline figure appears overestimated, while the Plan itself seems underfunded and limited in scope, neglecting the crucial socio-economic aspects;

55.

points out that from energy to transport or housing, local and regional authorities are crucial actors to deliver the investments necessary for the transition to sustainability; believes therefore that the objectives of the Plan cannot be delivered without the effective involvement of local and regional authorities and regrets that this fact does not seem to be recognised by the Commission;

56.

believes that investment in the transition to a sustainable economic model requires a financial and fiscal system that incentivises investors to make sustainable investments; welcomes, in this regard, the Commission’s continued work on sustainable finance but recalls the need to quickly expand the regulatory framework to also cover social sustainability (4);

57.

firmly believes that, through appropriate price signals, taxation can lead to sustainable behaviour by producers, users and consumers and therefore urges the Council to quickly adopt the proposed legislation on value added tax (VAT) so that Member States can make more targeted use of VAT rates to reflect increased environmental ambitions;

58.

expresses caution with regard to the Commission’s plans to introduce new legislation on green public procurement; even though it can be a useful tool in this respect, many public authorities are still working on adapting to the current framework following the 2014 reform, so further legislative requirements should be kept simple but effective (5); welcomes the Commission’s indication that the future revised State aid guidelines will allow further flexibility for public authorities to encourage and accompany the transition to a sustainable economic model;

59.

firmly believes that, taking into account lessons learned from their suspension in response to the COVID-19 crisis, the EU’s fiscal rules should better integrate the EU’s long-term sustainability goals;

60.

underlines the need for dedicated efforts to communicate in an easily accessible way the new opportunities of the MFF to citizens and also to the one million local and regional elected politicians in the EU in a concerted effort of all EU institutions.

Brussels, 2 July 2020.

The President of the European Committee of the Regions

Apostolos TZITZIKOSTAS

(1) Opinion of the European Committee of the Regions on ‘Erasmus programme for education, training, youth and sport’ (OJ C 168, 16.5.2019, p. 49).

(2) Opinion of the European Committee of the Regions on ‘Creative Europe and A New European Agenda for Culture’ (OJ C 168, 16.5.2019, p. 37).

(3) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Sustainable Europe Investment Plan — European Green Deal Investment Plan (COM(2020) 21 final).

(4) Opinion of the European Committee of the Regions on ‘Action Plan: Financing sustainable growth’ (OJ C 86, 7.3.2019, p. 24).

(5) Opinion of the European Committee of the Regions — Implementation report on public procurement (OJ C 39, 5.2.2020, p. 43).

1.10.2020

Official Journal of the European Union

C 324/8

Resolution of the European Committee of the Regions — The European Committee of the Regions’ priorities for 2020-2025 — Europe closer to the people through its villages, cities and regions

(2020/C 324/02)

The European Committee of the Regions (CoR) is the political assembly enshrined in the EU Treaties, providing institutional representation for all territorial areas, regions, cities and municipalities.

A European Union that takes into account local and regional needs and concerns increases democratic legitimacy, improves ownership and achieves greater added value, both for the EU’s policies and for their effectiveness on the ground, thus providing a benefit to citizens. To this end, the European Committee of the Regions works closely with the European Commission, the European Parliament and the Council of the European Union, as well as in the Member States at the various levels of government. The current state of the EU requires that this cooperation be continuously strengthened and the voice of regions, cities and municipalities be ever more present in EU policy and legislative development.

From crisis to recovery: towards a resilient, sustainable and cohesive European Union

In recent years, the European Union has faced unprecedented challenges: a serious financial crisis and severe economic recessions, social and territorial challenges, the green and digital transitions, instability in its neighbourhood and in the global system, and migration. The COVID-19 pandemic is further testing the EU’s solidarity and has put our ability to cope with emergencies that place considerable pressure on our health, social and public services under the magnifying glass. This most recent crisis has illustrated not only the need to adopt a coordinated response, backed by a far stronger EU budget, but also the need to further support Europe’s one million local and regional authorities working on the frontline to protect citizens and local economies and respond to emergencies (1).

The EU must become more socially, economically and environmentally resilient in all its regions and cities. Backed by properly funded European investment, it needs to ensure that its policies and programmes meet the needs of local communities. Cities and regions are the engines of the European economy. The role of local and regional authorities is essential in the formulation and implementation of EU policies, which is why the EU must involve cities and towns and regions better and more strongly in European decision-making through a practical and well-organised multi-level government process. Europe needs to accelerate digitalisation and boost innovation capacity in cooperation with the Member States and local and regional authorities across the whole of the EU. A faster and fairer recovery requires greater European solidarity, responsibility and partnerships, driven by the EU’s commitment to green, sustainable and territorially balanced growth that supports every region and city.

The European Committee of the Regions (CoR) will therefore focus on the following priorities with key measures during its current five-year term (2020-2025):

Bringing Europe closer to its people: strengthening EU democracy and working together on the future of our Union

The CoR’s mission is to bring Europe closer to its people and to reinforce European democracy at all levels, in order to meet people’s needs more efficiently and regain their trust in the European Union and its institutions. The CoR will work to ensure that all regions, cities, towns and villages are supported by the EU in dealing with the short and long-term consequences of the COVID-19 pandemic. The CoR will continue to improve the quality of EU legislation and to better anticipate its territorial impact and promote the principle of active subsidiarity. To deliver on this mission, the CoR will make use of the legislative, policy and political work of its members and stakeholders. In addition, the CoR will develop a communication campaign focused on the fundamental role of local and regional governments in European democracy, which will include preparing and contributing to the Conference on the Future of Europe. An Annual Local and Regional Barometer, which will be founded upon sound statistical evidence and on an inclusive approach involving its members and relevant stakeholders, and will feature a high-level political plenary debate, will form an annual point of reference and thus contribute to this objective.

The CoR will prioritise the following key measures under this heading:

Promote awareness and action at local and regional level on the foundational EU values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, which must be protected and respected even in times of emergency. The CoR is committed to identifying the appropriate local and regional responses to the way the EU works and to engaging with citizens through its members, in order to bridge the gap between EU institutions and local communities;

Reiterate its call to fully participate and be fairly represented in all bodies of the Conference on the Future of Europe. As with the economic and climate crises, the pandemic has revealed that a deep reflection on European democracy and policies is more necessary than ever, and the Conference on the Future of Europe will be an essential opportunity to discuss the EU as a project with citizens and local and regional authorities, as well as to propose, before the next European Parliament elections, a new way of working for the EU, including revising the Treaties with a view to fully involving cities and regions in policy making;

Call on the EU Member States and its institutions to uphold, build and strengthen the commitments agreed in the 2007 Berlin Declaration and the 2017 Rome Declaration, namely recognising that tasks and cooperation should be shared among all levels of government, including local and regional authorities, in order to make the European Union more effective, united, democratic and resilient. The final text of the joint position on the Conference on the Future of Europe should be adopted in the spirit of institutional cooperation;

Develop a model for a permanent and structured dialogue with citizens through local and regional authorities in the context of the Conference on the Future of Europe and beyond, allowing a two-way process of communication between citizens and EU institutions. In this respect, the wealth of experience and existing best practices of deliberative democracy at local and regional level and the many networks of elected local and regional councillors are key assets, which the CoR will bring to the debate on the Future of Europe;

Support local and regional authorities in making the most of new digital technology instruments and ICT tools. Digital technologies have significant potential for innovative solutions to the economic, social and technological challenges of our time. In this way, they can improve public service delivery, facilitate communication between people, increase citizens’ participation in new and different ways, enhance the transparency, inclusiveness, accountability and responsiveness of the decision-making process, improve local governance, and compliment and reinforce democracy. This is why the resilience and independence of digital systems and their providers must be significantly improved;

Promoting diversity, by advocating inclusivity and equality measures and by preventing and combating discrimination based on gender (2), racial and ethnic origin (3), religion, disability, age (4) and discrimination on any ground in decision-making at European, national, local and regional levels, both within the CoR and beyond;

7.	Actively participate in the awareness and communication campaign combatting gender stereotypes that the European Commission will launch and serve as a platform for local and regional entities to exchange best practices on this topic;

8.	Support and strengthen minorities in Europe, in particular through the Minority SafePack initiative;

Become the reference point for all regional and local authorities in Europe, including outside of the CoR’s membership, by strengthening the CoR’s political identity and relations as well as strengthening the cooperation with the main political families, national governments, elected representatives at local and regional level, European and national associations of regional and local authorities, and regional offices in Brussels;

10.

Support representative democracy through stronger interaction with parliaments at European, national, regional and local level, as well as through the exchange of best practices on tools for energising representative and participatory democracy, including participative budgets. The rule of law, democracy and good governance must be prerequisites for EU funding;

11.	Use evidence-based analyses to monitor and promote the devolution of local and regional competences and sub-national finances, as well as the functioning of local democracy in the EU;

12.	Create digital tools to map policy and financial competences, using synergies with the existing tools of EU, national and international organisations;

13.

Support and promote the important work of local and regional authorities on the frontline of the COVID-19 pandemic and the economic and social crises. The pandemic is demonstrating the importance of properly applying the active subsidiarity principle, as well as the essential role of local and regional authorities on the one hand, and the need for coordination and support at European level on the other;

14.	Scrutinise new EU policy initiatives to ensure that they incorporate a territorial dimension and meet the EU added-value requirement, in line with the recommendations of the ‘Task force on subsidiarity, proportionality and doing less more efficiently’ and the ‘Better Regulation Guidelines’;

15.	Cut administrative burdens and reduce implementation costs for regions and cities by insisting on the simplification of legislation and cautioning against the practice of so-called gold plating more generally;

16.	Step up cooperation with the European Commission, European Parliament and European Council, including through the Regional Hubs network and the Fit for Future Platform, in order to improve the effectiveness of EU policymaking with evidence-based feedback from local and regional stakeholders;

17.	Promote the importance of local self-government within the European Union, in the EU candidate and potential candidate countries and in the partner countries of the Eastern and the Mediterranean neighbourhoods;

18.	Support the EU global action by promoting values and principles such as human rights, democracy, rule of law, sustainable development and social inclusiveness, among others, with close cooperation with its Mediterranean and Eastern partners;

19.	Encourage regional parliaments to engage in the CoR-CALRE pilot project to generate political debates on key EU issues, such as the preparation of the European Commission Annual Work Programmes;

20.

Ensure that the EU supports effective youth participation and engagement, including through structured cooperation with the EU Youth Coordinator, reinforcing measures such as the Youth Guarantee to improve prospects for high quality employment and education, and establishing a European Child Guarantee;

21.	Continue cooperation with the Young Elected Politicians (YEPs) within the framework of the CoR YEP programme, in order to build links for future generations of elected local and regional politicians with European and national policymaking processes;

22.

Promote the cultural diversity of our local, regional, national and European identities and the different languages and traditions that make up our European cultural heritage. Underline that the cultural and creative sectors, which have their place in the local economy as employers but also in the social life of communities, have been severely hit by the pandemic and need support. Contribute to a New European Agenda for Culture, including the mainstreaming of investment in culture in the different EU funds, as well as the strengthening of synergies between culture and other policies such as tourism, regional policy, education, youth, research and innovation.

Understand and respond to the profound societal transformations that the digital, environmental and demographic challenges entail for building resilient regional and local communities

The current climate and digital transitions, the demographic transformations and the consequences of internal and external migration flows are having a profound impact on every European region, city, town and village. For this second priority, the CoR’s mission will be to analyse and identify solutions that will enable regional and local authorities to address these societal transformations in the places where people live. The COVID-19 pandemic requires a reflection on the appropriate response to these challenges, as Europe and the Member States demonstrate how far they are ready to go to save lives and the economy. This crisis has increased the need for an in-depth reflection on the policies, competences and overall functioning of the European Union. The CoR therefore looks forward to the important debate on all EU policies, in connection with the Conference on the Future of Europe, and to reviewing and assessing them more generally, in line with the subsidiarity principle. To deliver on this mission, the CoR will make use of the legislative, policy and political work of its members and stakeholders, while contributing to the European Green Deal and delivering on the UN’s Sustainable Development Goals. This will be complemented by a CoR-led communication campaign. The Annual Local and Regional Barometer will also contribute to delivering on this priority.

The CoR will prioritise the following key measures:

23.	Promote a COVID-19 pandemic crisis plan based on the implementation of the Sustainable Development Goals at local and regional level, as well as on the European Green Deal initiatives;

24.	Contribute to the 2030 carbon reduction targets, with the aim of achieving climate neutrality by 2050, by encouraging ambitious and decisive local and regional action via the Climate Pact and other relevant local and regional sustainable development initiatives;

25.

Promote using smart specialisation strategies and other instruments in increasing European partnerships and local public-private collaboration to improve professional competencies and qualification opportunities in fields, workplaces and technologies that are necessary to build more sustainability, added value and resilience at local and regional level;

26.

Contribute to an ambitious EU environmental policy, ensuring policy integration in the framework of all Environment Action Programmes. Ensure that the local and regional dimension is adequately considered in the preparation and implementation of the three main environmental priorities of the European Green Deal: biodiversity, circular economy and zero pollution. Plan environment and climate policies that are appropriate for practical implementation in all kinds of communities;

27.

Shape and support the development of the Climate Pact through coordinated and cross-cutting measures and initiatives, including through locally determined contributions and political commitments at the level of regions and cities, with the aim of ensuring that it builds on multilevel governance, effective dissemination of good practices, and that no person or region is left behind;

28.	Anticipate how the energy, mobility and digital transformations will affect our communities. Formulate strategies and support their swift implementation to maximise their positive effects and reduce their negative local impacts;

29.

Support local resilience through climate change adaptation, and augment local capacity to respond to extreme weather events that occur with both increased frequency and severity, in particular by providing the necessary resources to local and regional authorities to manage disasters through the EU Civil Protection Mechanism, and making use of a strengthened EU Solidarity Fund;

30.

Contribute to the preparation of the zero pollution goal for a toxic-free environment, and prepare and support regional and local authorities in implementing the EU’s ambitious targets for a zero-pollution action plan for water, air and soil. Contribute to the review of the urban mobility package on the basis of the lessons learnt from the Sustainable Urban Mobility Plans and prepare public transport authorities to respond to exogenous threats against the provision of safe and secure mobility services;

31.

Ensure that the voice and contributions of local and regional authorities are duly taken into account in multi-level climate and energy dialogues in Member States when designing, evaluating and implementing the National Energy and Climate Plans, national long-term strategies and national long-term renovation strategies;

32.	Support the European Commission in successfully shaping and delivering the Renovation Wave and putting it at the centre of the post-pandemic recovery strategy;

33.	Support the European Commission in its ambition to establish deforestation-free labelling of products and to protect and restore forests worldwide;

34.

Address the digital divide and promote increased digital learning and the digitalisation of local and regional public services, including with the support of the Digital Europe Programme 2021-2027, in order to reduce administrative burdens and boost the sustainable growth of local business and a resilient economy, as well as to contribute to a more sustainable and green Europe;

35.	Support the provision of digital and media literacy skills for all at regional and local levels, and work to establish a European framework for the human-centric and trustworthy deployment of artificial intelligence;

36.

Call for support from the European Commission, the EU’s Member States and their regions and cities to accelerate the modernisation and digitalisation of education and training systems, including necessary investments in educational infrastructure equipment, and support for employment in the local economy. Contribute to efforts to resume activities under the Erasmus+ programme and European Solidarity Corps. The European Education Area and the updated Skills Agenda for Europe constitute two important avenues for action and support, to be underpinned under the future Erasmus programme;

37.	Improve broadband connectivity and 5G deployment at local and regional level in both urban and rural areas, and map future investment needs;

38.

Ensure that regional and local authorities can contribute to and benefit from the future Farm to Fork strategy; initiate local food councils, connect local food producers and consumers, promote healthy diets and raise awareness about food waste; address the financial needs of farms in implementing the necessary measures on climate, environment and biodiversity;

39.

Address the increased challenge of brain-drain and enhance regional innovation ecosystems by strengthening territorial cohesion, fostering an economy of well-being and promoting research and innovation, including through support from Horizon Europe, ESIF and different national funding instruments. Launch territorial foresight initiatives as well as activities aimed at reinforcing the social, economic and health-related resilience of regions and cities as soon as possible;

40.	Contribute to an overarching European Strategy on demographic change which tackles all the demographic challenges with a broad, coordinated, joined-up EU response, as this is a cross-cutting issue that affects all EU policies;

41.

Ensure that the EU develops a comprehensive, humanitarian and fair migration policy and does not leave its Member States, border regions, islands and outermost regions alone in dealing with the migration crisis, as this is both a national and a European issue; support the exchange of best practices between regional and local authorities on the integration of migrants;

42.

Provide regional and local input into reforming the EU’s migration policy, including integration, fair return procedures and asylum policies that should be able to respond adequately to current and future migration trends; address the root causes of migration, in cooperation with countries of origin and transit, for those in need of humanitarian protection; protect the EU’s external borders; prevent irregular migration and fight against human trafficking;

43.	Promote a culture of respect for the rule of law at local and regional level, as a precondition for the European integration process and as a fundamental value of the EU, enshrined in the Treaties and shared with the constitutional traditions of the Member States;

44.

Call on the EU to safeguard jobs and ensure a recovery based on upward social economic convergence and improved social rights and working conditions for all, with consideration for the social partners and national systems, including for those who work in new forms of employment, such as platform work and the gig economy, as well as workers in the traditional economy, micro enterprises and the cultural sector. Recognise that two-thirds of all employment is generated by SMEs, the majority of whom are firmly rooted in local communities and so are a crucial part of Europe’s social fabric. The CoR continues promoting EER and other European wide activities to develop and increase entrepreneurship, especially among youth;

45.

Act as a facilitator for development cooperation between cities and regions and as a promoter of the UN’s Sustainable Development Goals in order to achieve forerunner role in contributing to tackle global challenges such as conflict and political instability, economic fragility, migration, and climate change;

46.	Exchange good practice with local and regional authorities of the accession countries and partner countries from the EU neighbourhood as well as from the Global South, and facilitate their access to targeted EU support.

Ensure that the European Union is permanently at the service of its people and the places they live based on social, economic and territorial cohesion as fundamental values

The CoR’s mission will be to ensure that economic, social and territorial cohesion is respected through European Union policies that affect people and the places where they live (place-based policies). To deliver on this mission, the CoR will make use of the legislative, policy and political work of its members, partners and stakeholders. It will continue to build on the mobilisation of the ‘Cohesion Alliance’, showcasing the added value of cohesion as a policy and as a fundamental value that underpins all EU policies. It will focus on the role of regions and cities in the economic recovery plan of the EU. The European Week of Regions and Cities and the Annual Local and Regional Barometer will also deliver on this mission.

The CoR will prioritise the following key measures:

47.

Advocate a Multi-Annual Financial Framework (MFF) as a key tool of European solidarity that matches the EU’s level of ambition to tackle all its priorities, provides added value, is more transparent and understandable for citizens and includes the UN’s Sustainable Development Goals, the implementation of the European Pillar of Social Rights and the new priorities set in the European Green Deal;

48.	Contribute to the reinforcement of the Cohesion Policy, fundamental since the origins of the EU, through the smart implementation of European Social Fund, European Regional Development Fund and Cohesion Fund, ensuring a significant impact among all European regions;

49.

Continue to promote a strong and effective EU cohesion policy for all EU regions, which is required not only to help cities and regions recover from the COVID-19 crisis, but also to tackle the other major challenges that have a strong territorial dimension and an uneven distribution of effects both within and between the various regions and cities across Europe, in particular climate change and the shift towards a carbon-neutral economy, digital transformation, demographic changes and migration;

50.

Emphasise the need for adequate and stable financing of the EU’s cohesion policy and Common Agricultural Policy to achieve their full objective; support local economies and local and regional authorities in the effective use of the resources currently allocated to the recovery of the European economy;

51.

In view of the expected asymmetric territorial impact of the COVID-19 crisis, call for regional and local earmarking within the new Recovery Fund. Ensure that the new instrument is not set up at the expense of the cohesion policy budget, and that investments are coordinated with EU funding interventions in order to maximise leverage effects and avoid fragmentation and centralisation;

52.

Stress that the COVID-19 pandemic requires the EU to strengthen health security and boost its own health resources and medical supplies, including personal protective equipment. This includes the creation of the legal means to be able, if necessary, to quickly and easily carry out procurement or initiate manufacturing. In addition, local and regional authorities must be supported in upgrading their emergency and disaster response capacities. As regional and local authorities have an important role to play in delivering public healthcare and social services for citizens, the CoR will advocate for coordinated EU action and support for national, regional and local disaster preparedness structures to respond to health threats and crisis situations in compliance with the subsidiarity principle;

53.	Organise the resilience of economic cycles by strengthening the spatial convergence of the production chains in Europe;

54.	Promote the use of sustainable urban development strategies to boost economic growth, job creation and decent work, and social inclusion, in line with the objectives of the renewed Leipzig Charter and the Urban Agenda for the EU;

55.

Work towards a renewed Economic Governance Framework, including the Stability and Growth Pact (SGP), building on the lessons learned from the crisis, in order to improve the EU’s fiscal rules by introducing a golden rule for sustainable investments, including the co-funding of the Structural and Investment Funds within the overarching objective of sustainable financial planning;

56.

Monitor the impact of the pandemic and its adverse effects on long-term employment in all of the EU’s local and regional economies. Stress the importance of rethinking the EU’s industrial and entrepreneurial strategies and focusing on the sustainability aspects of growth in order to bring about a rapid recovery. Promote innovative ecosystems, social economy and smart specialisation, and support place-based industrial policies;

57.

Monitor the application of the Code of Conduct on Partnership to ensure the full involvement of local and regional authorities in the preparation of the Partnership Agreements and programmes for the 2021-2027 period. The principles of partnership and multilevel governance should also provide inspiration for the governance of the European Semester;

58.	Call for direct access to EU funding for cities and regions to implement the European Green Deal and ensure that local and regional authorities are involved in preparing the just transition plans and implementing the Just Transition Fund;

59.	Ensure that regions, cities and individuals can benefit from the simplification measures of the European Structural and Investment Funds. Support the fight against — and prevention of — EU fund mismanagement and fraud;

60.

Contribute to strengthening and improving the functioning of the Single Market, not only by identifying barriers to the four freedoms at local and regional level and by encouraging administrative simplification, but also by insisting that local and regional authorities are an essential part of the implementation and enforcement of the Single Market rules. Underline, in this regard, the drastic effects that freedom of movement has on the Single Market and caution against any further fragmentation of the latter;

61.	Broaden the Cohesion Alliance to mobilise public and private sector stakeholders in the promotion of the cohesion policy and showcase the EU’s added value to every EU citizen as well as to democratic principles, by monitoring and communicating the impact of EU-funded investments;

62.

Monitor the State aid Temporary Framework and subsequent measures of similar intent, allowing for targeted support to save jobs in sectors and regions that are hit particularly hard by the pandemic. Highlight that, in this context, more flexible rules on State aid would aim to ‘remedy a serious disturbance in the economy of a Member State’, and that this reason will remain valid well beyond December 2020, the expiry date of the Temporary Framework; call on the Commission, therefore, to be ready to extend the Temporary Framework or allow similar flexibilities to help sectors and regions hit by the crisis to recover;

63.	Support the gathering and dissemination of information linked to the flexibility of public procurement procedures, as under the current circumstances these open up the possibility for contracting authorities to use the negotiated procedure with reduced procedural requirements;

64.	Support an EU Agenda for Rural Areas to redress depopulation and avert the risk of poverty in those regions, and to ensure a balanced and comprehensive approach to European territorial development;

65.	Actively follow up on the CoR’s activities on ‘Smart Villages’ and promote the concept among the European institutions; promote innovation and modernisation initiatives for rural areas, and to adopt a strategy for sustainable and intelligent mobility under the Smart tourist destinations programme;

66.

Insist that, in the event of a crisis situation in which borders should be temporarily closed or more closely monitored, the EU and its Member States should agree on common binding rules and procedures for guaranteeing the EU’s freedom of movement; observe that cross-border economic and social areas are of great value to the EU;

67.

Stress that during the COVID-19 crisis, local and regional actors have — despite the many closed borders and unprecedented restrictions — shown admirable resourcefulness in finding ways to continue cross-border and transnational cooperation, demonstrating true solidarity between European citizens. This crisis is a reminder that a border-free Europe is one of the key achievements of European integration, which needs to be safeguarded. Engaging in people-to-people and small-scale, cross-border projects, which create the fabric of cross-border networks and large-scale projects by building mutual trust between the participants, should remain a permanent priority of the European Union and its institutions;

68.

Uphold the importance of and ensure necessary budget resources for European Territorial Cooperation, which has proven indispensable to many regional authorities, both for exchanging expertise and best practice on key challenges, but also for building human links between regional authorities across borders;

69.	Encourage public investment in islands and sparsely populated and outermost regions by further adapting State aid rules, increasing European co-financing under the cohesion policy and developing territorial cooperation with third countries;

70.	Promote the updating of the cohesion policy’s overall management system, in particular by simplifying administrative procedures at all levels of governance;

71.	Call for the full territorial implementation of the European Pillar of Social Rights and the implementation of a Strong Social Europe for Just Transitions;

72.	Support the creation by the European Commission of the regional dimension of the European Social Scoreboard, in close cooperation with the Member States;

73.

Render regional innovation ecosystems more resilient against the harmful effects of potential future emergencies by completing the European Research Area for the free movement of researchers, scientific knowledge and technology, promoting synergies between Horizon Europe and other EU funding programmes and continuing the successful work of the Knowledge Exchange Platform and the inter-institutional Science meets Regions initiative;

74.	Contribute to the revision of the TEN-T Regulation and its related funding and highlight the need to put in place the missing links in cross-border transport infrastructure to connect all the Union’s cities and regions in central and peripheral areas, including the Outermost Regions;

The European Committee of the Regions will use all its resources and political influence to strengthen Europe. Through protecting the fundamental rights of its citizens, ensuring that the EU’s policies and investments are efficient and effective, the Committee will endeavour to transform the EU to make it more competitive, sustainable and resilient, so that it meets the expectations of its citizens.

Brussels, 2 July 2020.

The President of the European Committee of the Regions

Apostolos TZITZIKOSTAS

(1) Declaration of the European Committee of the Regions on Local and regional authorities as actors of the European response to the COVID-19 crisis.

(2) Council Directive 2004/113/EC of 13 December 2004 implementing the principle of equal treatment between men and women in the access to and supply of goods and services (OJ L 373, 21.12.2004, p. 37).

(3) Council Directive 2000/43/EC of 29 June 2000 implementing the principle of equal treatment between persons irrespective of racial or ethnic origin (OJ L 180, 19.7.2000, p. 22).

(4) COM(2008) 426: Proposal for a directive on the application of the principle of equal treatment between persons.

1.10.2020

Official Journal of the European Union

C 324/16

Resolution of the European Committee of the Regions — the European Committee of the Regions’ proposals in view of the European Commission Work Programme for 2021

(2020/C 324/03)

THE EUROPEAN COMMITTEE OF THE REGIONS,

having regard to:

—	the Adjusted European Commission's Work Programme (CWP) for 2020 (1),

—	the Protocol of Cooperation with the European Commission of February 2012,

—	the CoR's priorities for its five-year mandate (2020-2025),

encourages the European Commission to pursue the following actions through its Work Programme for 2021:

1.	answer the wake-up call of the COVID-19 crisis by placing greater emphasis on social wellbeing and environmental sustainability within the social market economy model, while at the same time taking into account the UN Sustainable Development Goals;

ensure that the post-pandemic recovery strategy, while fully aligned with the objectives of the Green Deal and with the commitments taken by the EU under the Paris Agreement, focuses on protecting European citizens' health and restoring economic growth in the EU. The delivery of climate laws must recognise the full geographic, economic and social diversity of Europe's territories and reinforce the principle of multilevel governance in the transition towards climate neutrality;

3.	work with the CoR on increasing the visibility and public support for such actions through its Green Deal Going Local framework;

include the dimension of health in the Green Deal framework, promoting healthy living for all, further exploring the existing links and synergies between health, environment, energy, economy, jobs, competitiveness and climate protection while proposing a clear strategy to build resilient territories, economies and societies in the post-pandemic period in the framework of the UN Sustainable Development Goals (SDGs);

take further steps to reduce the burden on national, regional and local authorities in their efforts to address the COVID-19 crisis, and use all available funds to help meet the needs of European health systems. The rapid spread of the virus has put both health and social care under increased pressure, while at the same time preparations also need to be made for a ‘second wave’. For cross-border pandemic planning, regional crisis teams should be promoted that comprise all tiers of governance, focus on epidemic events and do not stop at national border s ;

cooperate with the CoR in boosting the awareness and capacities of Managing Authorities to make best use of the opportunities related to the Green Deal and, at the same time, encourage more direct access to the EU funds for local and regional authorities to meet the objectives of the Green Deal, especially supporting border areas by speeding up the introduction of the European Cross-Border Mechanism (ECBM);

promote the Climate Pact as a joint undertaking for enhanced cooperation between local and regional authorities, the European institutions and citizens aimed at combating climate change and, simultaneously, tackling the economic crisis caused by the COVID-19 pandemic and as an umbrella that brings all the stakeholders together to draft and implement local climate pacts and exchange best practices;

8.	establish a Green Recovery Forum where the CoR, the European Commission, local and regional authorities and other stakeholders can work together on the implementation of the Green Deal within the new framework of the post-pandemic recovery;

9.	ensure that the zero pollution ambition for a toxic free environment, foreseen by the Green Deal, remains an essential part of the Green Recovery. An ambitious zero pollution action plan for water, air and soil is indispensable in particular for contributing to health protection;

10.

be more ambitious in view of the future EU biodiversity strategy to halt the ongoing biodiversity loss and allow the EU to lead globally in the protection and restoration of biodiversity, which is essential in preventing or reducing the impact of future pandemics; promote a swift implementation of the European Forest Strategy, ensuring the right mechanisms are put in place to ensure best practices are exchanged and multiplied;

11.

promote the sustainable and local production of food in the implementation of the initiatives announced by the Farm to Fork strategy, thereby preserving biodiversity, soil, water and marine environment and ensuring a good level of income for EU farmers; while ensuring fair market prices in a fair market position for agricultural producers through adapting production to market demand in a generally binding manner in particular in the situation of a market crisis; ensure that farmers and rural areas are accompanied in making necessary structural changes for transition towards more sustainable food systems;

12.

deliver an action plan for the implementation of the European Pillar of Social Rights, that will help reinforcing the EU's social dimension and mitigating the impact of the ongoing green and digital transitions. The CoR stresses that the implementation of the European Pillar of Social Rights has a strong territorial component and that the social scoreboard, which currently reflects only national averages, should be reinforced with additional regional data;

13.	integrate a European Child Guarantee addressing child poverty and exclusion in the EU into the implementation plan of the European Pillar of Social Rights;

14.

explore the potential of the social economy and prepare a ‘Social Economy Action Plan’ that would incorporate its tenets into different socio-economic policies of the European Union, thus contributing to a green and just transition and to a recovery plan in the post-COVID-19 era in which the gap between education, skills and jobs is closed, in which youth unemployment is prioritised and gender balance promoted;

15.	present an ambitious reform of the Stability and Growth Pact integrating the objective of sustainable public finances and the lessons learned from the coronavirus crisis;

16.	help trigger public and private investments that can have a concrete impact on the real economy at the local and regional level, with consideration for the specific situation in the outermost regions;

17.

propose urgently a deep reform of the European Semester and the EU's economic governance towards a transparent, inclusive and democratic process. The strong link of the Recovery and Resilience Facility (RRF) to the European Semester increases the urgency for reform in order to avoid further centralisation and a top-down approach of the recovery plans, instead of prioritising economic, social and territorial cohesion among and within Member States and the quality public investment needed for the EU's sustainable recovery. A reformed European Semester, as the overall European economic strategy implementing the SDGs across the EU, should integrate the principles of partnership, multilevel governance and a territorial dimension, on the basis of the CoR's proposal for a Code of Conduct for the involvement in the Semester of local and regional authorities at national level and of the European Committee of the Regions at European level;

18.

address the vulnerability of European value chains revealed during the COVID-19 crisis; identify the weakest links and diversify sources in EU supply chains, reducing their reliance on individual countries, strengthening the European industrial base in a sustainable manner, and securing the EU's strategic industrial autonomy; create a cluster policy as a central part of any EU industrial policy fit for purpose to strengthen the development of European world-class clusters connecting regional clusters, networks and ecosystems;

19.

insist on a better implementation of Trade and Sustainable Development chapters (TSDs) in EU trade agreements and focus on improving the socio-economic and territorial impact of trade agreements, including the future agreement with the UK, by providing more detailed sectoral and geographical analyses while strengthening the conditionalities of TSDs in free trade agreements; agrees with the European Commission that free, fair and open trade can only work with a strong and effective World Trade Organization (WTO) and supports its intention to launch a comprehensive WTO reform initiative;

20.	ensure that local and regional authorities are fully involved in the preparation and implementation of the Partnership Agreements and programmes for the 2021-2027 period;

21.

ensure that greater flexibility granted for the use of cohesion funds and in state aid rules, which is needed to support the recovery of regions and cities and rural areas from the COVID-19 crisis, does not lead to centralisation of powers and deprive local and regional authorities of their prerogatives;

22.	capitalise on the experience of the Urban Agenda for the EU and the renewed Leipzig Charter by organising an Urban summit on sustainable urban development;

23.	build on the ‘Renovation wave’ proposal as well the action plan of the Urban Partnership on housing adopted in November 2018 to prepare a European Agenda for Housing mainstreaming housing across the different EU policies impacting it;

24.

propose a coherent and ambitious EU Agenda for Rural Areas aimed particularly at remote territories, which have been often neglected, and thus forge a greater connection with citizens who live in rural areas and who by definition are more isolated from centralised systems of governance. Reviving rural towns and communities would help the EU show tangible support and strengthen its legitimacy on the ground;

25.

provide a strong response to the challenges faced by European tourism through both short-term financing and a long-term crisis recovery strategy, making it more resilient and sustainable in the future. Thus, cohesion policy in the EU long-term budget 2021-2027 must ensure better exploitation of the potential of culture and tourism. The focus remains economic competitiveness through research and innovation, digital transition, as well as the European agenda on European tourism;

26.

implement the updated Digital Education Action Plan to take full account of the impact of COVID-19 and the new conditions for education and training. The Action Plan should also act as a catalyst for the rapid development of distance learning tools in regions, cities and rural areas, in less developed regions particularly in schools, making digital and media skills an integral part of lifelong learning and making the Plan a platform for the sharing of good practice between European cities and regions and across the world;

27.

actively involve local and regional authorities in the completion of the Digital Single Market, capitalising on their key role in providing digital services for citizens and creating and managing digital infrastructure; ensure close monitoring and measuring of sustainable digital transformation processes in Europe's regions and cities, with a particular focus on the urban-rural divide;

28.

provide increased funding and education surrounding the rapid and comprehensive deployment of digital infrastructure and especially 5G in the EU, including by means of the future EU recovery fund, whilst guaranteeing faster broadband connection and the necessary equipment in rural, mountain and island areas, outermost regions and areas facing demographic challenges;

29.

support the rollout of a European Education Area by 2025 in close synergy with the European Research Area, in order to ensure high quality education and training, as well as equality and fairness in education, as a response to demographic change and brain drain; involve the CoR in the design and implementation of future measures on education and training, as well as in the implementation of the Updated Skills Agenda for Europe and the Digital Education Action Plan;

30.	present a science-based evaluation of the impact of COVID-19 on demographic change and ensure that future decisions are tailor-made to the local needs and specificities;

31.

prioritise support for organisations — including non-profit ones — as well as SMEs, individual artists and employees in the cultural and creative sectors, which have particularly suffered from COVID-19 outbreak. In the process of improving the current EU strategic framework for culture and in the next Creative Europe programme, special focus should be granted to strengthening and safeguarding Europe's rich cultural fabric, as well as regional and local specificities and heritage;

32.

ensure that the Union's post-crisis assistance to the candidate countries and potential candidates reaches the local communities, and sufficiently involves and empowers local and regional authorities, which are essential in establishing the democratic legitimacy of EU engagement in those countries, while continuing to highlight and address the dangers of a ‘local state capture’ threatening the foundations of democracy;

33.

increase EU support targeted at the needs of local and regional authorities and their associations in partner countries, in particular in Southern Mediterranean partner countries and in the Eastern Partnership, in order to create new dynamics for decentralisation reforms and improve results in the area of governance, as well as reinforce the visibility of the benefits of EU policies across the territories and levels of governance of the partner countries. This should include the establishment of an Eastern Partnership School of Public Administration, as proposed in the Joint Communication on the EaP Policy beyond 2020;

34.

contribute to the achievement of the SDGs, including through the active involvement of local and regional authorities in partner countries and support for peer-to-peer cooperation activities in a spirit of partnership and solidarity, in particular in light of the grave global impacts of the COVID-19 pandemic and the measures to contain it;

35.	involve local and regional governments in the implementation and monitoring of the EU Gender Equality Strategy and incorporate resilience measures and tools against the consequences of the COVID-19 crisis in gender issues into it;

36.

use the Conference on the Future of Europe as a timely occasion to reflect with citizens and local and regional authorities on the EU as a project grounded on fundamental values such as democracy, fundamental rights and the rule of law, as well as on the necessary changes to its current institutional framework in order to improve its effectiveness and its legitimacy, as well as citizens' sense of ‘ownership’ of the European project;

37.

fully include the CoR and national and regional parliaments with legislative powers in all bodies of the Conference on the Future of Europe, making the process as close to citizens as possible; cooperate with the CoR in developing a pilot model for a permanent and structured dialogue with citizens through local and regional authorities, allowing a two-way process of communication between citizens and EU institutions which could serve later on to improve EU decision-making in the long-run;

38.	intensify efforts to combat disinformation, including at local and regional level, through support for independent fact-checkers, media literacy and quality journalism, while emphasising that combating disinformation must not be used as an excuse for censorship or curbing freedom of expression;

39.

adopt a comprehensive approach to migration, integration and asylum policies based on the principles of respect for fundamental human rights, subsidiarity, solidarity and the EU's and its Member States' international obligations; ensure better joint efforts for the protection of the EU's external borders and reinforce the fight against irregular migration and human trafficking in cooperation with EU partners and countries of origin and transit; strengthen support for local and regional authorities in the essential role they play in integration policies;

40.

pursue the successful cooperation with the CoR on Better Regulation and the promotion of the concept of ‘active subsidiarity’, notably through the Network of Regional Hubs for EU Policy Implementation Review (RegHub) initiative and its new role in the Fit for Future Platform, and by supporting the CoR in developing RegHub 2.0 to become even more effective as a provider of timely feedback based upon user experience of EU policy implementation at the local and regional level; confirm and elaborate on these principles in its upcoming Better Regulation Communication;

41.

take into consideration the debates on the European Commission's future work programme that took place in regional parliaments, following the conclusions of the European Commission's Task Force on Subsidiarity and Proportionality and the pilot project launched by the European Committee of the Regions and the Conference of European Regional Legislative Assemblies (CALRE).

The CoR instructs its President to forward this resolution to the EU institutions and the Presidencies of the Council of the EU.

Brussels, 2 July 2020.

The President of the European Committee of the Regions

Apostolos TZITZIKOSTAS

(1) COM(2020) 440 final.

1.10.2020

Official Journal of the European Union

C 324/21

Opinion of the European Committee of the Regions — Implementation of Free Trade Agreements (FTAs): the regional and local perspective

(2020/C 324/04)

Rapporteur:

Michael MURPHY (IE/EPP), Councillor, Tipperary County Council

Reference document:

Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on Implementation of Free Trade Agreements: 1 January 2018 — 31 December 2018

COM(2019) 455 final

POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

General remarks

welcomes the Commission’s annual report on the implementation of FTAs; considers it not only as a crucial step towards increased transparency but also as an effective instrument for providing the public with objective background information about trade agreements negotiated by the EU;

stresses the important potential that EU trade policy offers for the implementation of EU objectives, particularly in terms of sustainable growth, implementation of the sustainable development goals, employment, job creation and investment in the EU. However, at the same time, understands that the COVID-19 crisis is a major shock for European and global economies and will distort opportunities from global trade for European SMEs. According to a recent survey from DG TRADE, a decrease in global trade between 10 %-16 % is expected in 2020; for the EU-27, the predicted reduction is expected to be between 9 %-15 % for extra-EU-27 exports, amounting to a reduction in extra-EU-27 exports between EUR 282-470 billion (1);

recalls that 36 million jobs in the EU depend on exports outside the EU, out of which 13,7 million are occupied by women; that between 2000 and 2017, EU jobs supported by exports to the rest of the world increased by 66 %, which represents 14,3 million additional jobs; and that the share of EU employment supported by sales of goods and services to the rest of the world over total employment increased from 10,1 % in 2000 to 15,3 % in 2017 (2). Notes with concern that due to the COVID-19 pandemic, in 2020 the ILO estimates the loss of 12 million jobs in Europe alone;

underlines the importance of free rule-based international trade which benefits all trade partners. Calls on the Commission to keep defending the EU`s trade interests and fight the rising trend of protectionism;

notes that the impact of FTAs in the EU is felt at regional level. The CoR therefore calls on the Commission to keep it systematically informed and to take account of the possible local and regional repercussions of trade at an early stage in the negotiations;

believes that FTAs should be made fit for SMEs as much as SMEs should be made fit for FTAs; highlights in this regard the vital role of LRAs in translating FTAs to SMEs on the ground;

stresses the joint responsibility of all levels of governance to ensure that the benefits of globalisation are fairly distributed, and the negative impacts are mitigated;

is concerned that the escalation of WTO non-compliant measures and new discriminatory non-tariff arrangements present the risk of reciprocal excessive regulatory burdens, such that they are becoming the new normal in global trade; believes that existing EU support programmes and monitoring thereof should be re-evaluated, in line with EU competition rules, to support regions adversely affected by trade wars by reducing the burden on them;

welcomes the fact that, on 22 December 2017, the Commission set up an Expert Group on Trade Agreements with the aim of improving transparency and inclusiveness in EU trade policy; notes that none of the 28 experts in the group (3) represent a local or regional authority or one of their associations; calls on the Commission to maintain the Expert Group in its current form and to preserve the CoR’s position as an observer. In case where the general structure of the Expert Group is to change, the CoR asks to be invited as a member;

10.

welcomes the fact that 29 %-31 % of EU trade is covered by preferential trade agreements;

COVID-19 related recommendations

11.

welcomes the Commission’s announcement to launch trade policy review proceedings, leading to a new strategy by the end of the year. However, the CoR calls on the Commission to ensure that this review gives due diligence and attention to the issue of implementation of Free Trade Agreements in regions and cities of the Member States;

12.

the COVID-19 pandemic highlighted that global economies are strongly interlinked and in time of crisis, no one country can manufacture its needs individually. Therefore, to ensure a fair, open and rules-based global trade system, the CoR urges the European Commission to continue its work on WTO reform. Notes, in the same vein, that in cases where global competition is distorted, the EU needs to make full use of its trade defence instruments and develop new tools to address market distorting practices of third countries;

13.

urges the European Commission to continue its work on addressing distorted competition within the single market caused by foreign subsidies. In this regard, the CoR awaits the publication of the Commission White Paper on an instrument on foreign subsidies. Progress in this area of work is particularly important to ensure a level playing field for EU companies in areas such as public procurement;

14.

notes that ultimately the regions and their governments are at the forefront of the crisis, dealing with its health and economic impacts. Believes, therefore, that the EU needs to work on building strategic stockpiles of vital equipment to prepare regions for future pandemics. Welcomes in this regard the Commission’s concept of ‘open strategic autonomy’ to diversify global supply chains as well as repatriate some production of critical materials;

15.

welcomes the new MFF proposal from 27 May, including the new REACT-EU and the Next Generation EU temporary reinforcement. In this context, the CoR welcomes additional funds assigned for Cohesion Policy, which can be used to fight the economic impact of the crisis, including by provision of investment and liquidity into affected SMEs on ground, particularly those in the hardest hit sectors. This will ensure that as many businesses and employment places are rescued;

16.

welcomes the simplification of application of a number of EU funding programmes, including InvestEU, in light of the COVID-19 crisis. However, urges the European Commission to continue the system of improved access to finance across a range of programmes beyond the pandemic, to enable European SMEs to turn digitalisation and decarbonisation techniques into profitable opportunities to create sustainable economic growth and jobs;

Realising the full potential of trade agreements — regional and business perspectives

17.

strongly agrees with the Commission’s view that EU companies can only benefit from EU trade agreements if they have pertinent information on the contents of these agreements and understand how they function in practice; stresses the need to involve regional representatives in the effort to improve implementation of FTAs; to that end, underlines the importance of developing FTA implementation action plans that are tailored to each Member State, their respective regions, and regional business interests;

18.

notes with concern that the complexity of rules of origin and of administrative forms required by EU trade partners for granting preferences to EU companies, as well as the effort involved in proving preferential origin, seems to be disproportionate for EU SMEs as they do not have the same resources as big companies;

19.

repeats its longstanding position that future EU trade agreements must not prevent government at all levels from providing, supporting or regulating public services, or prevent them from expanding the range of services they offer to the public;

20.

recalls that the bulk of SMEs’ exporting activity takes place primarily within the single market (4), with only about half of SMEs selling their goods outside the EU-28 (5); furthermore, notes that SMEs’ exporting activity is also highly concentrated, with six Member States (6) accounting for more than two thirds of total EU SME exports;

21.

stresses that according to a recent survey conducted by CoR and Eurochambres, effective trade implementation requires the following (7):

(a)	addressing the knowledge gap surrounding EU FTAs by providing practical information on how SMEs can make use of a given FTA in practice and through more informative activities with the business community at regional and local level (training, seminars, workshops, roadshows, etc.);

(b)	improving the user-friendliness of available free tools aimed at supporting businesses and SMEs as well as public awareness of their existence;

(c)	addressing the complexity and lack of coherence of the rules of origin and customs procedures;

(d)	swiftly implementing a free of charge online rules of origin calculator as an additional first line of support for EU SMEs in navigating the complexities of these rules in EU trade agreements;

22.

is of the opinion that more needs to be done to disseminate information about the functioning of international trade, particularly at the level of Member States and their local and regional authorities, which have a key role to play due to their knowledge of and proximity to SMEs on the ground; therefore recognises an opportunity for the CoR and the European Commission to systematically work together to disseminate relevant information and develop relevant interactive tools, such as for example a Rules of Origin Calculator for SMEs;

23.

welcomes the Commission’s advanced work on the online portal that will integrate two databases, the Market Access Database and the Trade Helpdesk;

24.

furthermore, welcomes the existing tools used by the European Commission to promote and support EU SMEs in their internationalisation efforts so that they are more competitive globally, and highlights the need to ensure that these tools take a bottom-up approach in their application;

25.

regards with concern the outstanding issues with trading partners as presented in the Commission’s report, notably the fact that EU products continue to face barriers to accessing a number of markets in partner countries. Non-bureaucratic mutual recognition of technical standards should be given high priority;

Ensuring that global economic engagement does not lead to inequality among EU regions

26.

holds the view that despite the overall economic growth triggered by FTAs, there are some economic sectors, along with the regions hosting them, which are likely to be negatively affected;

27.

supports the Commission’s view that EU trade agreements offer great potential for EU exports in agricultural products but is concerned that the draft interim report on the sustainability impact assessment for the trade agreement with Mercosur suggests that agriculture and rural areas in the EU are expected to experience negative effects, which is why some Member States have rejected the agreement in its current form; Also insists that the Mercosur agreement is to be assessed against the objective of reducing greenhouse gas emissions. In this regard, the ratification of the EU-Mercosur should be conditional upon measures reversing the current record level deforestation in Brazil’s Amazon;

28.

underscores that from the survey undertaken by the CoR in cooperation with Eurochambres on implementation of FTAs, increased competitive pressure from foreign companies has also been identified as a notable concern for regions when EU trade agreements come into force (8);

29.

emphasises that, as underscored by an EPRS study (9) based on an analysis of trade flows in some Member States, the export performance of regions is positively and strongly correlated with GDP and that trade is highly concentrated in a few regions in each Member State analysed;

30.

recalls that the territorially-uneven impact of globalisation was recognised by the Commission with the Reflection Paper on Harnessing Globalisation and the Reflection Paper on the Future of EU Finances, underlining that while the benefits of globalisation are widely spread, the costs are often localised;

31.

stresses that solving the inequalities presented above calls for an EU-wide response to ensure that no person or region is left behind;

32.

strongly believes that territorial impact assessments can be powerful tools to identify and quantify the possible asymmetric impacts of trade deals on European regions early on, thus allowing the concerned territories to put the right public policies into place to deal with the impact; regards this as a crucial element in the formulation of sound, transparent and evidence-based trade policies;

33.

places particular emphasis on the role of cohesion policy in improving the competitiveness of EU territories through targeted investments adapted to the needs of any specific territory in key sectors such as network infrastructures, research and innovation, SMEs, IT services, environmental and climate action, quality employment and social inclusion;

34.

recalls, in light of the strong evidence on regional patterns in international trade, that if the EU is to introduce further liberalisation of trade, it is imperative that every significant initiative in the field is preceded by impact assessments focusing on the possible effects on the national and particularly sub-national levels;

35.

welcomes that in its Recovery plan for Europe of May 2020, the Commission has proposed to strengthen its emergency tools, including the European Globalisation Adjustment Fund (EGF), and make them more flexible so that resources can be deployed quickly and at scale when needed. Expects the Commission to outline rapidly its proposal and reiterates (10) against this background that the previous EGF proposal for the funding period 2021-2027 foresaw relatively high eligibility thresholds (at least 250 redundancies) (11) and a low budget envelope of EUR 225 million per year;

Trade policy as a key instrument for enhancing sustainability

36.

strongly believes that trade policy has an important role to play in ensuring that globalisation has positive economic, social, territorial and environmental effects for people and businesses in Europe and beyond;

37.

recalls that according to a special Eurobarometer survey from 2019 (12), there has been an increase in the proportion of respondents mentioning concerns regarding negative environmental impacts of international trade, with the same survey finding that there has been an increase in respondents who believe they do not benefit from international trade because of its environmental impacts;

38.

recalls that the Green Deal should integrate trade policy together with economic, regulatory, and competition policy in a comprehensive effort to help the environment and set high environmental ambitions for industry as a whole;

39.

believes that a mechanism tackling ‘carbon leakage’ could be used to level the competitive playing field; notes, however, that the measure must balance environmental, trade and fairness concerns to avoid triggering retaliation against exports from EU countries, in this way damaging EU industry;

40.

strongly supports the Commission’s 15-point action plan as a key instrument to make Trade and Sustainable Development (TSD) chapters, which are part of all modern EU trade agreements, more effective. However, this can only be implemented by means of appropriate clauses making sustainability requirements enforceable, verifiable and sanctionable;

41.

in relation to the question of whether non-compliance with a provision of the TSD Chapter should lead to certain trade (trade-related) consequences, the CoR supports the view that in the event of countries engaging in unfair competition, for example by circumventing the ILO core standards or sustainability standards, provisions should also be made for sanction mechanisms;

42.

highlights the need for better implementation of TSD chapters in EU trade agreements through soft measures and by better utilisation of the EU’s and Member States’ own diplomatic resources;

43.

also calls for EU FTAs to include strict rules on transfer mispricing, fraudulent transfer pricing and tax evasion by listed companies;

44.

shares the view that TSDs can, through trade, improve conditions such as decent work, environmental protection and the fight against climate change in order to achieve effective and sustainable policy change (13) in third countries; notes however at the same time that those issues are by definition the result of democratic processes within the constitutional order of any given country;

45.

welcomes, in that regard, the Commission’s decision to appoint a Chief Trade Enforcement Officer to closely monitor the implementation of climate, environmental and labour protections enshrined in EU trade agreements, and is confident that the Chief Trade Enforcement Officer will establish solid channels of communication with civil society and local and regional authorities; calls on the European Commission to ensure that sufficient resources are assigned to the Office to ensure that it achieves its objectives;

46.

in this context, however, refers to the CoR’s study on ‘the democratic dimension of EU negotiations on trade agreements: the role and responsibilities of citizens and local and regional authorities’, which emphasises that availability of information is not on its own enough to ensure a transparent and participatory process and that particular attention should be paid to mechanisms at the national and local levels aimed at ensuring access to this information. In particular, local and regional authorities often point to the lack of a formal mechanism for dialogue with the relevant national level when it comes to trade policy, and this absence is even more keenly felt at EU level;

47.

at the same time believes that EU trade policy should not undermine the EU development assistance efforts in third countries and calls for a balanced approach to free trade when it comes to more fragile economies; recalls the importance of both free and fair trade, emphasising the potential of reduced poverty through inter and intra-regional economic integration. Calls for greater policy coherence in the international trade and development sectors, takes note of the EU’s move from international development assistance to a more equal-partnership approach;

Mitigating the negative impact of unique developments on particular sectors and regions

48.

calls on all key institutional players to pay particular attention to the existing trade linkages between EU-27 regions and the UK, which will largely define the impact of the UK’s withdrawal on their respective economies; appropriate measures must be devised for sectors and territories that would suffer a particularly adverse impact;

49.

welcomes the European Commission recommendations to Council of 3 February 2020 to open negotiations on a new partnership with the UK; believes that the EC needs to ensure that the negotiated agreement defends the EU’s interests;

50.

refers to the Position Paper of the Delegation of Spain to the Committee of the Regions (14) and expresses its regret about the fact that the decision taken by the United States to introduce additional tariffs on European products, amounting to USD 7,496 billion, as a countermeasure to the aid to the manufacturer of Airbus aircraft granted by the EU and certain governments of the Member States, will mainly impact agricultural and agri-food products produced in EU Member States;

51.

stresses that US steel tariffs have led to significant trade diversion of steel products from third countries, which are entering the European market in increasing quantities. The effectiveness of the EU’s safeguard measures for steel should be reassessed in light of the troubled economic environment for the steel industry, in order to avoid further damage to domestic steel companies. This review should specifically look at reversing previous increases in tariff quotas;

Ensuring a level playing field for EU companies in a rules-based trading system

52.

recalls that EU sanctions imposed on third countries for various geopolitical reasons unrelated to trade are met with counter-sanctions which disproportionally hit some regions with established trade links in said third countries; holds the view that a right balance has to be ensured between taking compensatory measures and preserving competition and that existing EU support programmes should be re-evaluated to support regions adversely affected by trade wars;

53.

draws attention to the recent calls for a more assertive EU trade policy defending technologies, companies and markets against unfair trade practices from the outside and holds the view that the EU needs a more proactive trade policy ready to protect its companies through appropriate countervailing measures that would keep pace with recent value chain developments and through a binding legal framework for trade conflicts; applauds the EU’s support for multilateralism and the several ideas for WTO reform put forward, as well as the Commission’s proactive stance on the deadlock regarding the WTO appellate body, i.e. the interim appeal arrangements with Canada and Norway;

54.

notes, however, that although it can be reasonably expected that no country can isolate itself from globalisation without incurring enormous costs, the risk of a collapse of the multilateral trading system is real and thus the EU has to reflect on a Plan B;

55.

strongly supports the Commission’s proposal to amend the Enforcement Regulation in order to allow the Commission to trigger countermeasures in situations where a partner prevents the dispute from reaching the point where such authorisation could be granted;

56.

shares the view that the EU needs to shift into offensive gear to ensure reciprocity and tackle protectionism in access to procurement markets in third countries;

57.

regrets, therefore, the lack of progress in the inter-institutional negotiations on the revised proposal for an International Procurement Instrument (15) presented by the Commission in 2016.

Brussels, 2 July 2020.

The President of the European Committee of the Regions

Apostolos TZITZIKOSTAS

(1) https://trade.ec.europa.eu/doclib/docs/2020/may/tradoc_158764.pdf

(2) http://trade.ec.europa.eu/doclib/docs/2018/november/tradoc_157516.pdf

(3) http://trade.ec.europa.eu/doclib/docs/2017/december/tradoc_156487.pdf

(4) EPRS, CETA implementation: SMEs and regions in focus, study conducted at the request of the CoR, 18 November 2019, available at http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_IDA(2019)644179

(5) Flash Eurobarometer 421, Internationalisation of Small and Medium-sized Enterprises, October 2015.

(6) Belgium, Germany, Spain, Italy, the Netherlands and the UK.

(7) Eurochambres and CoR Survey on ‘Implementation of Free Trade Agreements — challenges and opportunities for businesses and regions’, https://cor.europa.eu/en/events/Documents/ECON/Survey_Note_CoR-Eurochambres_Survey_15_November_2019.pdf

(8) European Committee of the Regions — Eurochambres survey on the implementation of FTAs, August-October 2019.

(9) EPRS, Interactions between trade, investment and trends in EU industry: EU regions and international trade, study conducted at the request of the CoR, 27 October 2017, available at http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_STU(2017)608695

(10) Opinion of the European Committee of the Regions — Strengthening territorial resilience: empowering regions and cities to face globalisation (OJ C 54, 13.2.2018, p. 32).

(11) Particularly given that the equivalent US programme (Trade Adjustment Assistance (TAA)) does not set a minimum threshold of redundancies that must be reached.

(12) https://ec.europa.eu/commfrontoffice/publicopinion/index.cfm/survey/getsurveydetail/instruments/special/surveyky/2246

https://ec.europa.eu/commission/presscorner/detail/en/ip_19_6294

(13) EP, ‘Free trade or geo-economics? Trends in world trade’, Policy Department for External Relations, Directorate-General for External Policies of the Union, September 2019.

(14) Position of the Delegation of Spain to the Committee of the Regions on the impact of trade disputes and the establishment of new tariffs on agricultural and agri-food products on regional and local economies in the EU — https://cor.europa.eu/en/news/Pages/US-tariffs-on-EU-agri-food-products.aspx

(15) https://trade.ec.europa.eu/doclib/docs/2019/march/tradoc_157728.pdf

1.10.2020

Official Journal of the European Union

C 324/28

Opinion of the European Committee of the Regions — Fitness check of the Water Framework Directive, Groundwater Directive, Environmental Quality Standards Directive and Floods Directive

(2020/C 324/05)

Rapporteur:

Piotr CAŁBECKI (PL/EPP), President of the Kujawsko-Pomorskie Region

Reference documents:

SEC(2019) 438

SWD(2019) 439

SWD(2019) 440

POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

A. Introductory comments

Welcomes the timely delivery of the fitness check of the Water Framework Directive (WFD) and Floods Directive (FD) in line with Article 19(2) of the WFD, which stipulates that ‘the European Commission will review this Directive at the latest 19 years after the date of its entry into force and will propose any necessary amendments to it’;

States that water is the most important common good and is a limited resource that needs to be protected and used in a sustainable way, in terms of both quality and quantity. Its protection and management transcend regional and national borders, since 60 % of river basins in the EU extend beyond the territory of a single Member State;

Points out that the EU's water-dependent sectors generate EUR 3,4 trillion annually, equivalent to 26 % of the EU's annual gross value added, and employ around 44 million people. In parallel, notes with alarm that only 40 % of Europe's surface waters are estimated to have good ecological status and only 38 % good chemical status (1);

Given the COVID-19 pandemic, calls for improved sterilisation of wastewater, an increased research into better preservation of wastewater (black and grey water), and an increased deployment of Nature-Based Solutions, in order to eliminate any epidemiological threats to water quality;

Stresses that water is an essential element for the environment and human existence. The local and regional authorities in the Member States have a key role to play in monitoring, as well as through preventive and remedial measures, to achieve and guarantee high quality water. Cities and regions are the forerunners in providing universal access to water and sanitation as a fundamental right; It is important to defeat the lack of expertise, over bureaucratisation and lack of multi-level approach which have a negative impact on efficiency, and can make the use of good practices at local and regional level impossible;

Points to the importance of water for the European citizens who decided to dedicate one of the first European Citizens' Initiative (ECI) to addressing their concerns related to the EU's water policy. This fitness check also follows on from the Commission's commitments in response to the ECI's Right2Water (2) on promoting access to water and sanitation;

B. The conclusions of the fitness check

Takes note of the fitness check's conclusion that the directives are largely fit for purpose, with some scope for improvement. The directives have led to a higher level of protection for water bodies and flood risk management. The fact that the WFD's objectives have not yet been fully reached is largely due more to inadequate funding, slow implementation and insufficient integration of environmental objectives in sectoral policies, rather than to any shortcoming in the legislation;

The fitness check identifies chemicals as an area where there is room to improve and achieve better results. While there is some evidence that the WFD, EQSD and GWD have led to reduced chemical pollution of the EU's waters, the analysis points to three areas in which the current legislative framework is sub-optimal: national differences (variability in lists of local pollutants) and the limit values they should not exceed; the list of priority substances (a lengthy process); and the fact that the EQSD and GWD evaluate the risk to people and the environment based mainly on single substances, not taking into account the combined effects of mixtures, and inevitably cover only a tiny proportion of the substances present in the environment;

Points out that the quality of drinking water resources remains under threat; regrets therefore the fact that the fitness check fails to focus on the functioning and implementation of Article 7 of the WFD concerning the non-deterioration of the quality of the water bodies used for drinking water abstraction and the reduction of the level of purification treatment required in the production of drinking water; drinking water operators should be able to rely on high quality water resources in order to reduce the cost of treatments; calls on the Commission and the co-legislators to ensure high standards of quality and safety, and policy coherence in view of the Drinking Water Directive recast, including its provisions on access to water (3);

10.

Expresses its disappointment that the fitness check lacks a more in-depth analysis of the impact of the Weser (4) ruling by the European Court of Justice. The application of the deterioration and enhancement clauses laid down in Article 4(1) and of the exemption clauses laid down in Article 4(4-7) of the WFD lead to legal uncertainties for both operators and the authorities. In particular, there is a need for further analysis of the impact on activities that protect the environment (such as waste water treatment plants) or contribute to adaptation to climate change and energy and resource management;

11.

Highlights that as currently more than half of all European water bodies are subject to exemptions, the challenges in achieving successful results by 2027 are substantial to put it mildly and are unlikely to be achieved by the 2027 deadline; underlines, therefore, that efforts, resources, better implementation and enforcement of the WFD will be have to be significantly stepped up, and insists on the fact that even after 2027, the protection of water under the Water Framework Directive bodies must continue;

12.

Calls on the Commission to supplement the evaluation with experience from the Member States that are applying the Water Framework Directive in accordance with the principles set out in the Weser ruling. It is concerning that a number of countries are not implementing the directive to a sufficient extent, but this is not a reason to disregard legal problems where countries are implementing the directive properly;

C. Policy coherence: the WFD and other EU legislation

13.

Urges less silo-thinking on water and greater coherence and coordination across all interrelated EU legislation, in particular with regard to concerns on climate change, the circular economy and emerging pollutants. Climate resilient water management should be mainstreamed in all EU policies and a clear and ambitious aim set out in the WFD for both climate mitigation and adaptation;

14.

Stresses the interlinkage between the WFD and the FD with other policies where local and regional authorities have a crucial role to play, such as, land planning, agriculture, energy production, particularly hydropower (and energy supply), thermal use of water for heating and cooling, waterborne transport, human health, tourism, the implementation of the Urban Waste Water Treatment Directive (UWWTD) and the Nitrates Directive, etc.;

15.

Welcomes, in this regard, the parallel evaluation of the UWWTD, a central pillar of the waste water service in Europe, with similar results to the fitness check: the need for an effective and efficient implementation of the existing legal instruments, triggering substantial societal and environmental benefits. However, regrets that the evaluation did not analyse the effectiveness of the UWWTD regarding discharges of industrial waste water into collecting systems and urban waste water treatment plants. Likewise regrets that there has been no legal analysis of how the inconsistencies between Article 4 of the Water Framework Directive and Articles 10, 7 and 2(9) of the UWWTD affect Europe's most efficient waste water treatment plants;

16.

In addition, underlines the discrepancies in Member State approaches on phosphorus and eutrophication and encourages greater coherence between the UWWTD and the WFD;

17.

Considers it essential for the European Commission to pursue increased enforcement of the legal obligations covering key pressures on the aquatic environment, such as those stemming from the Nitrates and UWWTD Directives. Vital attention should be paid to new emerging harmful trace substances including microplastics and pharmaceuticals, as current technologies used in waste water treatment plants are not entirely capable of removing micropollutants;

18.

Underlines that intensive agriculture is amongst the main pressures on surface and groundwater, including abstraction and pollution by pesticides, fertilisers and pharmaceutical residue from livestock antibiotics. The next Common Agricultural Policy must fully account for the impact of agricultural activity on water and foster a shift towards more water friendly practices. Solutions may include proposals to widen the environmental conditionality for access to payments to all provisions of the WFD, promoting more ecological farming through ‘eco-schemes’, as well as encouraging dialogue and exchanges of best practices in which water operators, relevant NGOs and farmers take active part;

19.

Recalls that water is a major determinant of a well-functioning biosphere, of bio-productivity and of absorption capacity, and that it affects and is affected by the activities of many different economic sectors, in particular agriculture, energy and industry. Ongoing or forthcoming discussions in the current legislative cycle are a great opportunity to ensure that water and the overarching objectives of the WFD are included in the policies covering other sectors. Underlines that the European Green Deal spells out ambitious objectives to reduce the use of resources, pollution and toxicity; consequently, strategies such as the ‘new circular economy action plan’, the ‘Zero-pollution action plan’, the new ‘Biodiversity’ or the ‘Farm-to-Fork’ strategies should clearly incorporate WFD objectives for full policy coherence;

20.

Highlights the potential of using reclaimed water for agricultural irrigation to reduce water scarcity, support adaptation to climate change and promote circular economy. In this regards welcomes the adoption of the Regulation on minimum requirements for water reuse by the Council and the European Parliament and reiterates its position on water reuse as expressed in the corresponding opinion (5);

21.

Invites the Commission to establish a fully operational monitoring system for the regular collection of updated, measured data on pesticide residue in the environment (especially in soil and water), possibly based on the successful experience of the LUCAS (Land Use/Cover Area frame statistical Survey) soil monitoring system;

22.

Welcomes the Commission's decision of 13 January 2020 to ban thiacloprid, a neonicotinoid-based pesticide raising environmental concerns, particularly regarding its impact on groundwater, and deemed dangerous to human health by the European Food Safety Authority; also calls for a ban on glyphosate and a CAP that supports the end of pesticide use;

D. Next steps to achieve good status in EU water bodies

23.

Strongly underlines that the WFD has become a milestone in the improvement of water resources in Europe and a reference point for the other continents. However, considering the emerging challenges (e.g. climate change, microplastics, pharmaceuticals, chemicals, antibiotics, etc.) and new solutions (new technologies and methodologies) over the last 20 years, and in the light of the Sustainable Development Goals and the European Green Deal, the WFD urgently needs to be upgraded;

24.

Calls, in this regard, for a change of paradigm to view biosphere in an evolutionary way (raising people's awareness that the biosphere has always been changing) and in a more ecosystemic manner (including sustainability of catchments and decarbonisation), as well as for promoting better understanding of ecological processes, including water, carbon, nitrogen and phosphorus cycles;

25.

Points out that in the context of the new paradigm, every catchment should be considered as a unique ‘Platonian superorganism’ where a combination of geomorphology, climate, ecosystems (human modified and natural patches) and various forms of human activity affect the water cycle and ecological status. This should be considered not only from the security and resources perspective, but primarily as a way of safeguarding a sustainable future, health and a good quality of life for all;

26.

Calls for the conclusions of the fitness check to accelerate the development of a transdisciplinary, integrative paradigm and related innovative solutions to achieve zero pollution for air, water and soil under the European Green Deal; considers it imperative to preserve and restore biodiversity in rivers, lakes, wetlands and estuaries, as well as to prevent and minimise any damage caused by floods;

27.

Calls for a new, holistic dimension of the WFD to be developed in which flood prevention should be integrated with drought prevention management and measures to enhance catchment sustainability potential (from an ecohydrological perspective consisting of five elements: water, biodiversity, resilience to climate change, ecosystem services for society and other impacts, specifically culture and education — WBRSC);

28.

Stresses the need to develop and implement best management practice and innovative technologies for reducing pollution from trace substances including pesticides, antibiotics, microplastics and other dangerous substances. Underlines that pollution needs to be addressed at source by means of a comprehensive approach based on informed and participatory processes involving citizens where all actors play a role, and the fairest and most cost-effective solutions are preferred. Solutions need to be adapted to local conditions, addressing consequences of non-implementation and respond to well-identified needs and long-term considerations rather than relying on ‘easy technological fixes’, as highlighted by the European Commission's fitness check;

29.

Calls for more research and innovation of water source diversification in order to ensure water security, in particular for European cities that attract a growing number of citizens, and its regions that are increasingly hit by long drought phases;

30.

Proposes urgent implementation of innovative tools to achieve good ecological status in European catchments, such as Ecohydrological Nature Based Solutions (EH-NBS, see UNESCO's World Water Development Report (WWAP), ‘Nature-Based Solutions for Water’). Points out that EH-NBS upgrades the efficiency of hydrotechnical infrastructure, especially in agricultural and urban landscapes, in terms of mitigation and adaptation to the ongoing climate change and enhances the catchment sustainability multidimensional potential of the WBSRC (Water, Biodiversity, Ecosystem Services for Society, Resilience to climatic changes, Culture and education) (6). It also promotes a holistic approach by encouraging transdisciplinary sustainability science and education;

31.

Draws attention to small and medium sewage treatment plants that have a permanent problem with a periodical decline in efficiency, and recommends using the EH-NBS — Sequential Sedimentation Biofiltration systems to reduce pollutants pulses at outflows in order to achieve good ecological status of freshwater ecosystems;

32.

Stresses that, according to the recent World Water Assessment Report, only 5 % of investments connected to water management use EH-NBS, whereas it should be more. Non-point source pollutions and urban storm water constitute almost 50 % of overall pollutions in the catchment (non-point source pollution from agricultural, landscape and urban storm water and surface water from transport infrastructure and the load of phosphorus and nitrogen from non-source pollution, e.g. in the Baltic Sea). They are most efficiently mitigated by EH-NBS. This means that EH-NBS need to be applied 10 times more often than they are now to mitigate the impact of pollution, mainly by NBS implemented in the framework of ecohydrological principles;

33.

Stresses that with increasing climate change impacts, the FD should be integrated with the WFD to enhance ground water recharge, the retentiveness of river valleys through retention in the floodplains, polders and the restitution of water levels in surrounding lakes and wetlands. Underlines that enhancing catchment retentiveness is key, as water — by stimulating biological productivity — increases the accumulation of carbon and circulation of nutrients, thus preventing nutrients from leaking into water and the atmosphere and avoiding eutrophication and toxic algae blooms;

34.

Underlines that the Common Agriculture Policy, the Nitrates Directive, and the Plant Protection Product Regulation should be harmonised with the WFD, aiming at the reduction of non-source pollution (nitrogen and phosphorus), which has recently been generating 20-50 % of the nutrient load to lakes, reservoirs and coastal zones. In regions where industrialised livestock farming is concentrated, it seems difficult to achieve this objective if the CAP and national policies do not commit — in accordance with the objectives of the Green Deal, and the biodiversity and ‘farm to fork’ strategies — to a significant reduction in this form of farming. Constructing highly effective land-water ecotone zones, consisting of denitrification and geochemical barriers, would also contribute to this. Emphasises that increasing the complexity of the agricultural landscape (land-water ecotones (LWE), tree rows (TR) and shelterbelts (SB)) reduces water loss from the soil caused by strong winds, but also prevents the loss of organic matter and carbon from the soil. Thus, such methods (LWE, TR and SB), as well as other measures to increase water retentiveness in the landscape, should be incorporated into the bioeconomy strategy. This could considerably increase carbon capture and storage, which is one of the priorities of the Green Deal;

35.

Stresses that because storm water in urban areas may generate 10-20 % of the nutrient pollutants load in the catchment, the effective mitigation of this impact can be achieved — especially in new-build areas — by low-cost advanced EH-NBS, such as sequential sedimentation-biofiltration systems and hybrid systems which integrate traditional hydrotechnical infrastructure with the EH-NBS. This should be coordinated with measures to adapt the built environment to a changing climate. Where practicable, these solutions should also be implemented in the existing building stock;

36.

Notes that, in its opinion on the reform of the CAP, the CoR proposed including five quantifiable environmental objectives (by 2027) in the next CAP, including a guarantee that 100 % of surface and ground water will comply with the Nitrates Directive without any exemptions;

37.

Points out that timeframe for implementing the measures included in the relevant river basin management plans is too short, as the environmental response may take much longer than the six-year cycle. Therefore recommends that planning periods be extended by at least a further two periods up until 2039 and encourages local and regional authorities to develop innovative long-term projects (7);

38.

Considers that in some Member States water basin plans and national plans often lack solutions for settlements with low risk of floods, any construction, including refurbishments favouring flood protection became impossible. In this respect, the Commission and its agencies should more support Member States to find feasible solutions;

39.

Stresses the need for greater coherence between the WFD, Directive 2009/128/EC of the European Parliament and of the Council (8) establishing a framework for community action for the sustainable use of pesticides compatible with the EU's environmental objectives and Regulation (EC) No 1907/2006 of the European Parliament and of the Council (9) concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) in order to step up monitoring efforts and subsequently identify the best measures. Hazardous chemicals must be stopped at source, and manufacturers must take more responsibility for chemical substances placed on the market;

40.

Calls for exploring the use of water bodies in implementation of the Green Deal, in particular the potential of algae farms as natural means of carbon capture and as a carbon neutral energy source and livestock feed;

41.

Considers that implementation of the 2030 Agenda and the 17 UN Sustainable Development Goals should be an integral part of the revised WFD;

42.

Calls on the EC to better link the WFD to local and regional territorial characteristics. Given the relative fragility of local and regional hilly and mountainous territory due to climate conditions and — particularly in the case of the Apennine river water bodies — their increasingly temporary nature, the reference to the conditions identified for this type of water body (and probably the monitoring methodologies set) does not adequately represent the objectives. This results in a classification that underestimates their quality even in the absence of anthropic pressure, a criticality which is exacerbated by climate change;

43.

Calls on the Commission to help step up the implementation potential in cities and regions across the EU by expanding existing platforms for sharing best practice and know-how, as well as providing financial tools to support the transfer of innovative methods and systemic solutions between regions;

44.

Believes that, considering the cultural, historical and social dimensions of water bodies, the WFD, with its comprehensive scope, should be used to promote transdisciplinary cooperation and transparency, and empower citizens as ‘interested parties’ so that they can express their opinions in the decision-making process, including on economic aspects covering all environmental services, rather than just those related to water supply and treatment;

45.

In this context, in line with good governance, calls for a methodology to be developed for regular dialogue between all relevant stakeholders, decision-makers, societal organisations and scientists (‘citizen science’) to enhance their engagement in the development and implementation of innovative solutions;

46.

Encourages national, regional and local authorities with publicly-owned water utilities to participate in the Water Erasmus initiative allowing technical staff to visit counterparts in other Member States and learn from their water management practices. Exchanges of this kind, as well as other initiatives such as technical workshops, should be scaled up, as they provide an opportunity to raise awareness, foster dialogue, learn about solutions and build capacity;

47.

Calls on the Commission to apply all the instruments to avoid any kind of water wastage and to ensure proper maintenance of water flow facilities;

48.

Calls on the Commission to remind all national and local institutions that water is an essential public good and, with a view to this, to better implement water pricing policies in line with the cost recovery principle, enshrined in Article 9 of the WFD, and to refer to households, agriculture and industry as ‘water users’, as well as to recommend the use of pricing measures such as summer tariffs or consumption-based block tariffs to promote the conservation of the resource. Furthermore, the ‘polluter pays’ principle should be fully applied through sustainable financing instruments such as Extended Producer Responsibility;

49.

Stresses that shrinking global water resources create global scale patchiness, which can generate regional and global conflict. In order to prevent this, it is very important to share new paradigms, new methodologies and new systemic solutions worldwide, especially with areas where water resources are limited, such as Africa and the Middle East. Proposes that the Commission examine the potential for cooperation with the UNESCO Intergovernmental Hydrological Programme, to enhance the leading role of Europe in achieving global water sustainability;

50.

Calls for the enforcement of the protection of water sources also in EU candidate and acceding countries.

Brussels, 2 July 2020.

The President of the European Committee of the Regions

Apostolos TZITZIKOSTAS

(1) EEA Report No 7/2018, p. 6.

(2) https://europa.eu/citizens-initiative/water-and-sanitation-are-human-right-water-public-good-not-commodity_en

(3) Proposal for a Directive of the European Parliament and of the Council on the quality of water intended for human consumption (recast) (COM/2017/0753 final — 2017/0332 (COD)).

(4) Press release by the ECJ https://curia.europa.eu/jcms/upload/docs/application/pdf/2015-07/cp150074en.pdf

The full text of the ECJ judgment http://curia.europa.eu/juris/document/document.jsf?text=&docid=165446&pageIndex=0&doclang=en&mode=lst&dir=&occ=first&part=1&cid=1784620

(5) Opinion of the European Committee of the Regions on ‘Proposal for a Regulation of the European Parliament and the Council on minimum requirements for water reuse’ (OJ C 86, 7.3.2019, p. 353).

(6) Ecohydrology as an integrative science from molecular to basin scale: historical evolution, advancements and implementation activities.

Prof. M. Zalewski Ecohydrology and Hydrologic Engineering: Regulation of Hydrology-Biota Interactions for Sustainability.

(7) One example is the reintroduction of salmon, which were gradually disappearing from the Rhine in the 50s. The Rhine Commission started implementing practical measures in 1991, but the successful results were only visible 20 years later.

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

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

1.10.2020

Official Journal of the European Union

C 324/35

Outlook opinion of the European Committee of the Regions — The future of EU Clean Air Policy in the framework of the zero-pollution ambition

(2020/C 324/06)

Rapporteur:	János Ádám KARÁCSONY (HU/EPP), Member of Tahitótfalu Council
Reference document:	Outlook opinion

POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

Introductory remarks

welcomes the European Green Deal (1) proposed by the new European Commission, the zero-pollution ambition for a toxic-free environment — one of three priorities mentioned by the new Commissioner for the Environment — and above all the zero-pollution action plan for air, water and soil to be adopted in 2021;

notes the increasing public support in the EU for ambitious action to improve air quality, as reported by the 2019 Special Eurobarometer survey on attitudes towards air quality. Growing concern about air pollution in a context of intense youth mobilisation for the environment is the starting-point for ambitious action in this area;

notes that air pollution is still the largest environmental health risk in the EU, responsible for nearly 500 000 premature deaths (ten times the toll of road traffic accidents) each year. Air pollution is linked to respiratory and cardiovascular diseases, strokes and cancer. It also has significant adverse effects on the climate, ecosystems, the built environment — including cultural heritage — and the economy;

points to the importance of including the lessons of the COVID-19 pandemic in future policies. On the one hand, there is a possible link between air pollution and the gravity of the consequences of infection with the COVID-19 virus (2); therefore fighting air pollution must be amongst top priorities of the EU recovery plan. On the other hand, significantly reduced traffic, industrial production and other activities during curfews resulted in significantly less air and noise pollution. Citizens could see more clearly that a healthier environment, less traffic, more open public spaces and nature-based solutions are essential for their well-being. There is strong support for this historic opportunity to build something better;

observes that air quality in Europe has continued to improve gradually over recent years, but that many Member States are not meeting the current standards, with more than half of them currently subject to infringement procedures. Also notes that the levels of fine particulate matter (PM2,5), one of the most hazardous forms of air pollution to the human respiratory system, have not dropped in Europe significantly;

appreciates the work being done by Member States, European institutions and international organisations in assessing and addressing air pollution (3);

reiterates its call for an integrated approach, an ambitious European source-based policy, and links between immissions and emissions policies in terms of both ambitions and timeframes (4). Calls to take into account the conclusions of the CoR Regional Hubs (5) consultation that looked into the implementation of the EU Ambient Air Quality (AAQ) and the National Emission Ceilings (NEC) Directives as well as the recommendations from its opinion on Towards an 8th Environment Action Programme (EAP) (6);

recalls the particular responsibility of local and regional authorities in this area for future generations, as well as today’s citizens, especially more vulnerable groups, and therefore is convinced, based on the experience throughout the COVID-19 crisis that change is possible. Makes therefore the following recommendations;

Possible new initiatives

Legislative measures

notes the finding of the Fitness Check that the AAQ directives have been partially effective in improving air quality but that there is further room for improvement. The CoR recommends that during such revision the possible inclusion of ultrafine particles (UFP) and black carbon (BC), both with elevated adverse health effects, should be taken into consideration, based on recommendations by the WHO. Also with respect to health effects, the focus should shift from assessing air quality to measuring people’s exposure to air pollution; looks forward to the relevant legislative proposals in due course and will contribute to these procedures if and when appropriate with suggestions from the local and regional point of view;

10.

agrees that current rules on monitoring provide a good basis for obtaining comparable, reliable air-quality measurement data. However, monitoring systems designated by individual Member States should be further harmonised. The CoR recommends involving local and regional authorities (LRAs) more closely in designating the location of specific measurement sites;

11.

notes, as reported by the European Court of Auditors, that the EU’s air quality standards were set almost 20oyears ago and that some of these are much weaker than WHO guidelines and the level recommended by the latest scientific evidence on human health impacts;

12.

supports the European Commission’s announcement to propose to more closely align air quality standards to the WHO guidelines, which are currently being revised but draws its attention to the following considerations. Taking into account the high number of Member States that do not meet current standards, it is appropriate to provide for further assistance for implementation where necessary and appropriate and strictly monitored compliance timeframes. The CoR considers emissions rules to be a particularly effective approach, and recommends therefore that more attention be paid to tightening them; at the same time, the CoR welcomes that some Member States, regions or cities can and do already apply stricter limit values on their own initiative if they so wish;

13.

emphasises the need to focus more on emissions regulation as a better way of achieving clean air by reducing emissions at source (pollution prevention). The NEC directive sets ambitious reduction commitments for the Member States, but EU-wide sectoral regulations are also needed. EU legislation can ensure a more level playing-field, as stricter local emissions reduction requirements may have adverse economic effects. EU legislation should also prevent pollution being shifted to another location, e.g. between neighbouring cities, countries or continents or by exporting diesel cars from Western European cities that ban their use to Eastern Europe, Africa or other parts of the world. Certain areas where there has been no recent regulation should receive more attention: these include (inland) shipping, non-exhaust road transport emissions (brake and tyre wear), diesel (urban power) generators, aviation, or small (<1 MWth) combustion plants such as residential wood- and coal-burning stoves and boilers. Special attention has to be given to real-drive and real-use conditions;

Funding

14.

points out that there is a general lack of specifically targeted EU funding for air quality measures, for drafting and implementation of Air Quality Plans, and for real-time air quality monitoring and improvement in general. The process of obtaining funding is also considered difficult, so this must be substantially simplified to ensure that calls for funding are successful. Collection of financial resources for this funding should be based on the polluter-pays principle;

15.

notes that severe particulate matter pollution affects in particular large urban agglomerations, heavily industrialised regions and the poorest areas in the EU, which, in many cases, also face energy poverty. Therefore, sectoral transitions (agriculture, transport, industry and energy) and air pollution should be handled in an integrated way, applying tailor-made approach. Funding is essential, as success in implementing air quality programmes is significantly influenced by financial resources. In addition, some regions suffer not just from unfavourable socio-economic conditions, but also from adverse geographical or climate situations, and therefore need additional support to combat air pollution;

16.

underlines the challenges of the transition towards sustainability, including improving air quality, for local and regional communities. The CoR welcomes the EC Communication on The EU budget powering the recovery plan for Europe and calls on the Commission to simplify and increase access to EU funding opportunities, in particular the ERDF, LIFE, EAFRD, and the Just Transition Fund, as means to achieve wider objectives benefitting also air quality, especially those included in the air quality plans under the AAQ directives. In this context it is crucial to ensure coherence between projects funded by the EU and policies of national, regional and local authorities, in order to maximise their impacts; therefore calls on the Member States, as well as the European Commission to promote the close cooperation with local and regional level authorities in developing the appropriate strategies, policies and programmes;

17.

calls for the introduction of incentives or recognition for LRAs performing positively;

Improving implementation

Multilevel governance, cooperation, implementation and enforcement

18.

notes that the Fitness Check mentions problems with implementation, pointing out that deficient air-quality plans and Member States’ lack of commitment to taking appropriate measures have resulted in substantial delays in meeting air-quality standards; points out that a major reason for the limited efficacy of air-quality plans has been the earlier EU vehicle emission limits, which were not fitted to real-world driving;

19.

observes that air pollution has different sources: natural, transboundary, national, regional and local (also street-level). To combat air pollution, emissions at all levels should be decreased so that each level takes its own share of the responsibility. Effective improvement will require close and more effective cooperation and communication between different levels of government. Regional authorities could play a coordinating role between the local and national level, and good practices should be collected and disseminated. Cooperation should be extended to include companies, scientific bodies, and other relevant stakeholders, as well as the general public;

20.

notes that specific tools like TAIEX-EIR Peer-to-Peer are already available and being used successfully by several Member States and LRAs;

21.

welcomes the efforts to conclude an international agreement against transboundary air pollution. Both the European Commission and the Member States are closely involved in certain working groups, task forces and cooperation programmes under the Convention on Long-range Transboundary Air Pollution (CLRTAP) (or shortly Air Convention under the United Nations Economic Commission for Europe (UNECE). The CoR also welcomes the launch last year of the Forum for International Cooperation on Air Pollution, which could accelerate improvement in air quality all over the world by disseminating and sharing knowledge gathered to date; stresses also that trans-border cooperation between local and regional authorities (both within the EU and across the EU’s external borders) can be important and that the instrument of the European Grouping of Territorial Cooperation (EGTC) may provide a useful framework for such initiatives;

22.

highlights the need for cross-sectoral cooperation and coherence of relevant policy areas. Measures should address all sources of air pollution in an integrated way: transport (both road and non-road), energy (including domestic heating), agriculture sectors and industry, while taking into account other relevant areas such as climate change or health. These policies could be reciprocally beneficial (e.g. energy-saving measures), but in some cases policies (e.g. promoting biomass combustion or supporting diesel cars) could have negative impacts on air quality. Synergies should be harnessed and counterproductive provisions avoided. All relevant measures of the European Green Deal should be used to help achieve the current air-quality objectives: not just the Zero Pollution Action Plan but also the Biodiversity Strategy for 2030, the ‘Farm to Fork’ strategy, the Circular Economy Action Plan, Sustainable and Smart Mobility, and the Climate Law;

23.

notes that agriculture so far is the least effective sector when it comes to decreasing emissions (ammonia is a particulate matter precursor). Although measures to mitigate emissions in agriculture are already available, and technically and economically viable, such measures are not yet widely used. Having undergone a series of reforms to enhance its environmental sustainability, the CAP should serve these goals better. New or stricter measures should be considered during the negotiations on the future of the CAP beyond 2020 including, for example, eco-schemes;

24.

welcomes the European Commission’s intention to take further action towards zero-emissions mobility; harmonisation of Low and even more Zero Emission Zones throughout Europe should be considered. Aware of the fact that reduction of pollution in lockdown areas during COVID-19 is temporary, cities have already taken action to lower the effect of traffic — they widened pavements, designated micro-mobility lanes, lowered speed limits etc. It also became visible that public transport companies should be urgently provided with (EU) funding to keep them running, renew fleets with less polluting vehicles and prevent a shift to private motorised transport. Underlines that the competitiveness of EU manufacturers must be taken into account when considering and proposing more stringent emissions standards for petrol and diesel vehicles — while calls for an exit path of internal combustion engines from road traffic and appreciates the Member States, regions and cities that have already set a final date for the admission of cars with internal combustion engines. The CoR opposes premiums for the purchase of vehicles with such engines. Proposes, among others, to further promote zero-emission vehicle technology and accelerate investment in the European rail network also as one of the possible viable alternatives for the commuters;

25.

draws attention to the problem of residential solid-fuel heating. The existing ecodesign legislation does not seem to provide an appropriate solution; therefore expects the European Commission to address this issue in the context of the sustainable product-related initiatives under the circular economy strategy. Moreover, significant support is needed for people on low incomes (energy poverty), not just to replace old appliances but also to ensure affordable operation and maintenance of more energy-efficient appliances; ad hoc incentives for renovating buildings to improve their energy performance should be looked at as well. The European Commission should also consider introducing rules on the quality of fuels used for residential heating and create appropriate incentives, including financial incentives, for this purpose;

26.

encourages Member States to deliver and update their National Air Pollution Control Programmes as a matter of urgency and to take LRAs’ contributions on board when drawing up and revising the programmes;

Public engagement

27.

notes that more use should be made of existing IT solutions, mobile phone applications and other relevant tools to inform the public, making the ‘invisible killer’ visible so as to increase public awareness. Information should be easy to understand and access, and should include health aspects. The current website of the European Air Quality Index (7) gives comprehensive information on air quality in Europe, but is relatively unknown and needs to be more widely publicised. The site should also be improved through modelling to give air quality information for regions, smaller villages, and rural areas, where air quality is not measured by monitoring stations;

28.

recommends stepping up citizen science efforts. Citizen science applications cannot replace monitoring data, as they provide significantly lower quality of data, which needs to be made clear to the public but they can complement it by providing higher-resolution information on trends in air pollution, while actively involving the public and raising people’s awareness. Research activities on enhancing (low-cost) sensor reliability should be supported and accelerated, also current work of the European Committee for Standardisation (CEN) on standards for compact air quality monitoring as well as air quality modelling is important and welcomed;

29.

recommends informing the general public about both problems and improvements that demonstrate the potential positive outcomes of action, including the potential of zero-pollution forms of energy, such as renewable or nuclear energy, which will enable Member States and LRAs to garner support for measures;

30.

points out that citizens have a major role to play in curbing air pollution, notably through changing their own behaviour in many different aspects of their lives, including mobility, heating, food, but also general consumption, which many of them are still largely unaware of (though public awareness varies considerably within the EU). Reducing emissions depends on this contribution, so citizens should be involved more closely in decision-making during development of air-quality plans and measures, from the earliest stage. In addition, air-quality plans should include not just regulatory measures, but also ones that promote and support people’s awareness and behavioural changes in their mobility choices, such as driving less. LRAs can facilitate this work by using schemes like ClairCity. Urges however also for the recognition and wide dissemination of local initiatives, engaging citizens, such as tree planting and the creation of green walls in cities, cleaning and cooling the urban air;

Harmonisation, guidance and implementing acts

31.

advocates further guidance on air-quality reporting and modelling that is specifically designed for LRAs, given their significant role in this sector. Reporting tools (including e-reporting) should take local authority needs into account. Local authorities might not always have staff with the necessary technical skills or the required English level. Improvements in e-reporting should allow for the specificities of local and regional users, ensuring consistency between reporting tasks assigned to LRAs and their powers and resources in this sector;

Participation in networks and initiatives

32.

recognises the high number of initiatives and networks already available that address issues of air pollution (Urban Agenda Partnership on Air Quality, the Expert Panel on Clean Air in Cities under the UNECE Air Convention (8), the EU Clean Air Forum, the Covenant of Mayors, etc.). Many of these provide significant added value in clean-air policy, and the CoR would encourage LRAs to be more involved in these EU-level activities;

33.

welcomes the new European Commission Green City Accord (GCA) initiative to improve implementation of EU environmental legislation. The GCA or the Technical Platform for Cooperation on the Environment set up by the CoR and the European Commission could be useful tools to steer LRAs towards the best initiatives based on their needs. These platforms should also help to collect and classify available tools, guidance documents or other relevant support available from the UNECE Air Convention, European Commission and its Joint Research Centre, European Environment Agency, or any other network or organisation that could help LRAs in their work on improving air quality. Special expertise and technical support (e.g. development of local emission inventories, designation of low emission zones, SHERPA model use, etc.) should also be provided, as LRAs need training to use these tools;

Next steps

34.

urges the European Commission to further strengthen certain aspects of the emission rules at EU level and to take further steps to ensure effective and enhanced horizontal and vertical cooperation, while urging Member States and LRAs to find better methods of cooperation and communication;

35.

recommends providing easily accessible air-quality funding for local authorities and accredited air quality associations responsible for air-quality plans in designated air-quality zones, with priority for zones with higher air pollution;

36.

draws attention to the need to coordinate and manage the relevant networks, initiatives, tools and guidance, which are already a source of broad knowledge and experience, and which would help LRAs to improve their work to achieve cleaner air based on additional technical expertise and guidance.

Brussels, 2 July 2020.

The President of the European Committee of the Regions

Apostolos TZITZIKOSTAS

(1) https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en

(2) According to the recently published study Assessing nitrogen dioxide (NO2) levels as a contributing factor to coronavirus (COVID-19) fatality, 78 % of the 4 443 deaths were in four regions in northern Italy and one around Madrid in Spain. These five regions had the worst combination of NO2 levels and airflow conditions that prevented dispersal of air pollution.

(3) The European Commission has developed and implemented the EU Clean Air policy framework further: the National Emission reduction Commitments (NEC) directive, which replaced the National Emission Ceilings directive, introduced emission reduction requirements for 2020-2029 and from 2030 onwards; the Clean Air Forum has proved a successful platform for discussion of air quality; and the conclusions of the Fitness Check of the Ambient Air Quality (AAQ) Directives have been published. The Council of the EU recently adopted conclusions on the Improvement of Air Quality. The European Court of Auditors has published Special Report No 23/2018 — ‘Air pollution: Our health still insufficiently protected’ (OJ C 324, 13.9.2018, p. 12), and the World Health Organization (WHO) is currently revising its air quality guidelines with a view to the possible release of new guidelines in 2021.

(4) The Clean Air Policy Package for Europe https://cor.europa.eu/EN/our-work/Pages/OpinionTimeline.aspx?opId=CDR-1217-2014

(5) https://cor.europa.eu/en/news/Pages/consultation-air-quality.aspx

(6) OJ C 168, 16.5.2019, p. 27.

(7) http://airindex.eea.europa.eu

(8) Convention on Long-Range Transboundary Air Pollution.

1.10.2020

Official Journal of the European Union

C 324/41

Opinion of the European Committee of the Regions — Towards a Roadmap for Clean Hydrogen — the contribution of local and regional authorities to a climate-neutral Europe

(2020/C 324/07)

Rapporteur:	Birgit HONÉ (PES/DE), Minister for Federal and European Affairs and Regional Development (Lower Saxony)
Reference document:	Own-initiative opinion

POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

Importance for a climate-neutral EU by 2050

warmly welcomes the European Council’s approval of the target of a climate-neutral EU by 2050 and that the European Commission is aiming to enshrine this target in EU law with its proposal for an EU climate law (1);

stresses the importance of generating environmentally and socially sustainable growth, especially in the wake of the COVID-19 crisis. The European Green Deal (2), with energy- and resource-efficient, climate-friendly technological and social innovations, must be a key element of post-COVID-19 economic recovery. As one such future technology, clean hydrogen must now be vigorously promoted in the EU;

therefore emphatically welcomes the Commission’s presentation of an EU hydrogen strategy, anticipating the recommendations of this opinion (3); is also pleased to note that the revised proposal for the EU’s 2021-2027 multiannual financial framework with an accompanying recovery plan makes the development of a clean hydrogen economy much more feasible, and calls on the Council and the European Parliament to keep these options in the legislative process;

points out that the goal of climate neutrality implies a complete transformation of electricity, cooling, and heat supply and, in particular, requires profound changes in industry and transport. A range of different renewables-based technical solutions will be needed. But accelerating promising technologies requires technology-specific support. Clean hydrogen and derived synthetic feedstocks and fuels (4) will be essential for achieving this goal in the future and should therefore benefit from specific support. In this regard, particular emphasis should be placed on green hydrogen from renewable energy sources;

believes that at this early stage of market development, an open approach with regard to the potential applications of clean hydrogen would be a good idea as certain amounts of clean hydrogen could realistically be used by many sectors. The CoR considers it necessary to focus on promising applications as the market develops;

emphasises in this connection that using clean hydrogen and e-fuels is less efficient than directly using renewable electricity due to conversion losses, which is also likely to lead to higher costs for many applications in the long term. For this reason, in the medium to long term, the priority applications of clean hydrogen/e-fuels will be considered to be areas where hydrogen is used as a raw material or where energy efficiency measures and direct electrification are not viable solutions (e.g. ammonia and steel production, heavy-duty and long-distance transport, high-temperature processes and seasonal electricity storage) and parts of the built environment/district heating, where heat pumps or heat networks are not effective;

suggests that the Commission assess the production potential for green hydrogen in the EU, including in the less developed NUTS 2 regions, and neighbouring regions (e.g. the Middle East and North Africa), with particular regard to competition with the direct use of electricity from renewable energy sources because comprehensive and detailed knowledge of the feasible potential for various scenarios would be an important basis for developing a green hydrogen economy in Europe; in addition, it could be analysed to what extent blue hydrogen can be used as a transitional solution;

recommends that the Member States promote a green hydrogen economy when updating their national energy and climate plans (NECPs) in 2023, and devise integrated national hydrogen strategies with implementing measures in close cooperation with all stakeholders. When drawing up and implementing these projects, the Member States should work closely with the local and regional authorities (LRAs) or their national and regional associations as well as the scientific community. It is recommended that every Member State examine the potential for producing green hydrogen;

Sustainability aspects

stresses that, in the long term, hydrogen obtained through the electrolysis of water using electricity from renewable energy sources (green hydrogen) is the only sustainable method of producing hydrogen. The EU and the Member States must therefore focus their efforts on green hydrogen when developing a hydrogen economy. Until sufficient quantities are available, temporary technological solutions — such as blue hydrogen — can help to reduce CO2 emissions from existing hydrogen production. It must be ensured that this does not hinder the switchover to green hydrogen when developing a hydrogen economy. The temporary solutions must provide actual and significant benefits in terms of cost and speed of implementation compared to green hydrogen and must not create long-term path dependence;

10.

considers a comprehensive and transparent sustainability classification and certification for hydrogen/e-fuels to be vital, as well as the extensive and mandatory use of the certificates developed from these. A market for green hydrogen can only develop with certificates that are designed to be strict, clear and differentiated and that also enable a distinction to be drawn between blue and green hydrogen. The CoR calls on the Commission to actively advance the gas classification process in the European Gas Regulatory Forum (Madrid Forum) and to act swiftly to put forward a proposal for a classification and certification system in line with the existing legislation on the authentication of renewable energy; in this connection calls for the possibility to be examined of merging the existing parallel systems of guarantee of origin (Article 19, RED (Renewable Energy Directive) II) and sustainability certificates (Articles 25-31, RED II). The Commission should champion the worldwide adoption of the certificate/guarantee of origin system that will be developed in the EU;

The specific role of the regions

11.

emphasises that green hydrogen can be produced and used in a decentralised way and can therefore be part of a more decentralised energy supply in the future, as set out in the Commission’s long-term strategy ‘A Clean Planet for all’ (5) and supported by the CoR (6). Green hydrogen has the capacity to promote regional and local development because significant parts of the value chain can be established in regions and municipalities and so have beneficial effects on employment and SMEs; also, the excess heat from green hydrogen production can be used in the local and regional heat supply, and hydrogen that is produced as a by-product during certain processes can be recovered and used at local and regional level;

12.

explicitly stresses that LRAs have a decisive role to play in putting the hydrogen economy in place. Many LRAs are working on hydrogen strategies, green hydrogen programmes, and specific projects, for example in the ambit of the ‘European Hydrogen Valleys Partnership’ (7). LRAs are vital players for market development because of their detailed knowledge of local circumstances, their connections with local players, and their supervision of planning and authorisation processes and various regional and local funding and incentive opportunities, public procurement and powers in vocational and academic education and training;

13.

notes that regions can play an important connecting role in the development of regional strategies and green hydrogen programmes to ensure integrated development of the green hydrogen value chain. The proximity of production and use makes it possible for them to first build regional hydrogen networks and then expand them over time. Centralised large-scale hydrogen supply in industry clusters can be matched with decentralised demand from industry, mobility, buildings and grid-balancing in the industry cluster surroundings, on regional, national and international level (sector coupling). Locations close to ports could be particularly attractive as they also facilitate the import of hydrogen/e-fuels in the long term. The CoR strongly urges the European Commission to support the development and implementation of such regional strategies and programmes for green hydrogen value chains and clusters;

Coordination of market development

14.

reiterates that a green hydrogen market cannot develop without significant investment, including from the private sector. This can only happen if there is confidence in the market’s long-term development. Ambitious and binding targets, a clear legal framework, an explicit strategy and a specific roadmap for green hydrogen can help to build confidence;

15.

urges the Commission to develop an EU-wide vision in the upcoming EU hydrogen strategy, particularly for green hydrogen for 2030 and 2050, and to present a projection of the areas of application for green hydrogen, its market take-up and the promotion of further innovation, taking into account the recommendations in this opinion;

16.

calls for the Commission to put forward with the EU hydrogen strategy an integrated roadmap of non-legislative and legislative measures for building a clean EU hydrogen economy, and a hydrogen single market geared to green hydrogen, building on the recommendations of this opinion and of the Strategic Forum for Important Projects of Common European Interest. The EU’s hydrogen strategy should include ambitious targets for green hydrogen production capacity, based on an analysis of regional production potential, and should promote the systematic expansion of hydrogen production and use by establishing corresponding value chains. The strategy should contribute to EU-wide coordination on the development of supply, demand and infrastructure, and the coordination of regulatory activities and funding at the level of the EU, the Member States and the LRAs, with particular consideration for the above-mentioned connecting role of regions in the upscaling of production and application of green hydrogen in the energy and industry feedstock transition;

17.

considers the development of a green hydrogen economy to be essential for the sustainable industrial policy pursued by the European Green Deal; points out that the upscaling of electrolyser technology to GigaWatt-scale is required for ‘green’ hydrogen to become cost competitive. This provides an (employment) opportunity for the electrolyser-producing industry in EU Member States with export potential worldwide. The CoR urges the European Commission to promote this. It stresses the importance of the involvement of European regions — together with industry — to develop cross-sectoral hydrogen value chains connecting supply, infrastructure and demand. The CoR urges the Commission, as part of the implementation of the New Industrial Strategy for Europe (8), to promote lead markets for green hydrogen technologies and systems and their use for climate-neutral production, especially in the steel, cement and chemical industries. The CoR requests that the EU strategy for clean steel announced by the Commission be quickly adopted and an appropriate focus be placed on the use of green hydrogen;

18.

warmly welcomes the establishment of the European Clean Hydrogen Alliance announced in the New Industrial Strategy. The CoR requests that this alliance be set up quickly, focus on green hydrogen and help the EU play a pioneering role in this key technology by contributing to coordination and the exchange of knowledge and experience. The CoR calls for the involvement of the regions and SMEs in the alliance, as announced by the Commission, to be consistently implemented;

19.

points out that the increasing integration of sectors through the use of the same energy sources requires a more systematic approach to sectors. The CoR stresses that the strategy for an integrated energy system and the EU hydrogen strategy (9) by the European Commission must emphasise the systematic importance of green hydrogen in relation to other forms of energy for sector integration, such as electricity, renewable gases and e-fuels, to the future energy and economic system and present implementation methods that benefit the system. They must present implementation methods that benefit the system and use new and tailored market rules to engender a functioning market in hydrogen that, on the one hand, galvanises hydrogen production and use and, on the other, is well integrated with the electricity and gas markets;

Supporting framework legislation and infrastructure development under the European Green Deal

20.

stresses that the dynamic expansion of renewable energy in electricity generation is the basis for the development of the green hydrogen market in the EU. The CoR calls for the Renewable Energy Directive (RED II) to be revised as a result of the EU’s more stringent 2030 climate targets, in particular by raising the EU target for the share of renewable energy in gross final consumption of energy accordingly; encourages Member States and LRAs to set ambitious national, regional and local targets for expanding renewable energy, such as wind and solar energy; The CoR expects the renewable offshore energy strategy announced by the Commission to boost this sector, including by funding innovative off-shore green hydrogen production projects;

21.

calls on the Commission to examine whether RED II and delegated acts provide sufficient incentives for the use of e-fuels based on industrial CO2 emissions and carbon capture and utilisation (CCU) in a transitional phase. However, steps should also be taken to avoid double accounting of GHG emission reductions, as well as fully counting e-fuels as ‘renewable’;

22.

also calls for the swift drafting of delegated acts under the EER II to clarify the classification of electricity grids for hydrogen production (Article 27 EER II) and minimum GHG emission reduction requirements for synthetic fuels (Article 25 EER II);

23.

emphasises that a grid- and system-friendly method of electrolysis must be ensured when using electricity grids for hydrogen production (demand-side management), and calls for the EU hydrogen strategy and hydrogen strategies at national and regional level to include the creation of additional green electricity generation capacity for electrolysis;

24.

points out that the internalisation of external costs creates a level playing field and increases the economic attractiveness of green hydrogen. The CoR therefore supports a comprehensive revision of the Energy Taxation Directive with a view to aligning energy taxation with the goals of the European Green Deal and to include hydrogen and e-fuels in the scope of the Directive; encourages Member States to use the existing headroom for green taxation and to use additional revenues to lower the tax burden on low-carbon electricity;

25.

emphasises that the EU Emissions Trading Scheme (EU ETS) provides significant incentives for the reduction of GHG emissions in energy-intensive industries (e.g. the chemical and steel industries), for which green hydrogen is a key option for decarbonisation. The revision of the Emissions Trading Directive should take the new 2030 climate targets into account, e.g. by increasing the linear reduction factor. Investments could be made safer by adding a minimum price to the EU ETS;

26.

supports the development of a suitable WTO-compliant border adjustment mechanism for CO2 emissions (10) for products imported from third countries, whose production is associated with high CO2 emissions and that are subject to strong international competition. Such a system, combined with an adjusted EU ETS, could provide incentives for the use of green hydrogen in energy-intensive industries;

27.

calls for the Commission to revise the Regulation on trans-European energy infrastructure (TEN-E) (11) and the EU rules for the European gas market, primarily EU Gas Directive 2009/73/EC (12), in such a way that a green hydrogen economy can be dynamically developed, with transmission of hydrogen across the EU. This includes, for example, defining universal and clear standards (e.g. the permitted share of hydrogen in the natural gas system), appropriately adjusting the requirements for projects of common interest (PCIs) based on TEN-E, coordinating electricity and gas infrastructure planning, reclassifying existing gas infrastructure, and setting clear rules for the injection of certified hydrogen from renewable energy into the natural gas system. The regulatory basis for public hydrogen networks also needs to be developed, with non-discriminatory access. The CoR points out that building and expanding dedicated hydrogen networks is an important prerequisite for ensuring that hydrogen is available in its pure form for the priority applications for which there are no conceivable alternatives to hydrogen;

28.

believes that the revision of the Trans-European Transport Network (TEN-T) Regulation should place much greater emphasis on low-carbon propulsion technologies for lorries, coaches, and inland shipping, such as electric motors powered by hydrogen fuel cells or overhead lines together with other energy forms that meet sustainability and emissions reduction requirements. Building the corresponding infrastructure, initially along core network corridors, is a prerequisite for the deployment of these technologies. The Connecting Europe Facility (CEF) should provide sufficient funding for this purpose. The revision of the Alternative Fuels Infrastructure Directive provides the opportunity to set specific requirements for the density of hydrogen filling stations in Member States;

29.

calls on the Commission to allow support for creating pipeline infrastructure for the transportation of hydrogen (constructing pipelines and transforming existing gas infrastructure) and for creating storage infrastructure; the development and funding of cross-border infrastructure for hydrogen between industrial clusters provides business opportunities; cooperation with other sectors that require new energy infrastructure is advised because of spatial planning and cost-effectiveness;

30.

urges the Commission to prioritise the use of green hydrogen and e-fuels to complement electric mobility in heavy-goods, public, waterborne and air transport as part of its announced strategy for sustainable and smart mobility. This requires a clear and reliable roadmap and a European legal framework to encourage the use of low-emission vehicles within existing toll systems;

Support through financial and regulatory measures and State aid

31.

stresses that the development of a green hydrogen economy, in particular the expansion of production, must be supported by public funds because green hydrogen is not yet economically viable. The CoR points out that the revision of the Guidelines on State aid for environmental protection and energy should maintain or expand the leeway for funding mechanisms so as to stimulate early market development;

32.

reiterates that both investment and electricity costs are relevant cost components in the production of green hydrogen. In principle, both supply and demand-side mechanisms to promote green hydrogen production are available, which can have similar effects depending on their design. Investment grants and feed-in premiums are potential supply-side mechanisms. The CoR stresses that experience in the electricity sector has shown that, a revenue guaranteed over a certain period of time can enable production capacity to expand. However, to generate competitive pressure, both feed-in premiums and investment grants could be put out to tender from the beginning;

33.

emphasises that regulatory measures can generate demand for green hydrogen in certain sectors or areas of application, in turn encouraging production to expand. GHG emission reduction targets in the relevant sectors combined with measures such as binding blending quotas (e.g. air and maritime transport), GHG reduction quotas for fuel suppliers or CO2 thresholds for fleets (e.g. for lorries, coaches or inland shipping) generate reliable demand for green hydrogen and e-fuels. In this connection, the CoR calls for Member States to use the existing legal leeway to promote green hydrogen/e-fuels when implementing RED II. An alternative for applications that already require large amounts of hydrogen could be Carbon Contracts for Difference (CCfDs), which compensate for the difference between users’ actual GHG avoidance costs and the current price of CO2;

34.

points out that public procurement can also generate tangible and predictable demand. LRAs can play a key role in this regard, as the fleets of municipalities and municipal companies (e.g. street cleaners, waste disposal vehicles, local public transport and taxis) are increasingly proving to be good cases for using green hydrogen and other climate-neutral propulsion technologies;

35.

welcomes the initiatives for creating important projects of common European interest (IPCEIs) for green hydrogen. The CoR encourages the Commission to create the legal framework for IPCEI projects for green hydrogen and encourages Member States to then make use of it to pave the way for large-scale demonstration projects. Special attention should be paid to create synergy between the various hydrogen IPCEIs to prevent ‘chicken and egg’ dilemmas in the green hydrogen value chain development;

36.

calls for increased funding for demonstration projects for green hydrogen through the Innovation and Modernisation Funds financed by the EU-ETS and for the targeted support of green hydrogen through the InvestEU programme. The CoR encourages the Member States and regions to use the European Structural and Investment Funds (ESI Funds), including Interreg, in the coming funding period to establish and enhance regional, local and interregional hydrogen clusters. The CoR stresses the need to create synergies at all levels between these funds, IPCEIs, the CEF and research funding;

37.

welcomes the energy lending policy adopted by the European Investment Bank (EIB), including the design of new financing approaches under the InnovFin Advisory Programme. In this regard, the CoR calls for the EIB to provide considerable support for green hydrogen, with financing approaches that also benefit SMEs and LRAs or their promotional banks;

38.

believes that a one-stop shop at EU level could considerably facilitate access to project funding for businesses, including SMEs, and for regions and cities;

39.

advises Member States to complement EU support with national programmes for scaled-up demonstration projects, living laboratories, national networks and hydrogen region exchanges, in close cooperation with the LRAs or their national and regional associations;

40.

emphasises that long-term signals are needed to steer financial and capital flows from the private sector to investments in a green transition with a green hydrogen economy, including for the benefit of innovative SMEs. The CoR expects support in this regard from the Commission in the announced Strategy on Sustainable Finance;

Research and innovation

41.

stresses that research and innovation also have a decisive role to play in the large-scale implementation of green hydrogen production and use. They must be geared towards lowering costs in all parts of the value chain and improving the controllability, efficiency and lifespan of facilities. The CoR therefore recommends explicitly focusing on green hydrogen as part of the Horizon Europe programme, including its ‘Green Deal Missions’, the Strategic Energy Technology (SET) Plan and the European Innovation Council (EIC);

42.

welcomes the Commission’s recommendation to implement a European partnership for clean hydrogen as part of Horizon Europe, as a successor to the Fuel Cells and Hydrogen Joint Undertaking (FCH JU) (13). The CoR recommends improving the financial endowment as well as mechanism and structure of the partnership as compared to the FCH JU, taking due account of the specific importance of LRAs, so that it can support more demonstration projects for green hydrogen in the EU, including in relation to the European Hydrogen Valleys Partnership. The CoR stresses that a key goal of the partnership must be to improve the exchange of knowledge and experience between the regions, between the EU institutions, the Member States and the LRAs, and between businesses;

43.

encourages the Member States and LRAs, as part of their responsibility for higher education and vocational training, to promote the training of qualified professionals and scientists along the entire green hydrogen value chain. They should also set up and improve appropriate advisory services, in particular for SMEs. The CoR calls on the Commission to support such efforts, particularly in relation to the new European Pact for Skills and the European education area announced in the new Industrial Strategy for Europe (14);

International dimension

44.

points out that, in the long term, a significant part of the demand for hydrogen/e-fuels will probably be covered by imports from regions with very good renewable resources; in this regard, imported hydrogen/e-fuels must be subject to equally strict sustainability criteria. The CoR recommends taking into account the production of hydrogen/e-fuels in third countries and transport to the EU in the requested roadmap for green hydrogen. The CoR also encourages the Commission to establish cooperation with potential export countries as well as with other import countries (e.g. Japan) at an early stage so as to support the coordinated development of an international clean hydrogen economy with a focus on green hydrogen. In addition, relevant international initiatives such as the Hydrogen Initiative under the Clean Energy Ministerial meetings and ‘Mission Innovation’ should be enhanced. As was the case with the European Hydrogen Valleys Partnership, LRAs should be involved here as well.

Brussels, 2 July 2020.

The President of the European Committee of the Regions

Apostolos TZITZIKOSTAS

(1) Proposal for a regulation of the European Parliament and of the Council establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (European Climate Law) (COM(2020) 80 final).

(2) Communication from the Commission — The European Green Deal (COM(2019) 640 final).

(3) See Roadmap — Ares(2020)2722353.

(4) For the sake of simplicity, the term ‘e-fuels’ will be used to denote synthetic fuels in the rest of the opinion.

(5) COM(2018) 773 final.

(6) Opinion of the European Committee of the Regions — Implementing the Paris Agreement through innovative and sustainable energy transition at regional and local level (OJ C 39, 5.2.2020, p. 72); Opinion of the Committee of the Regions — A Clean Planet for all — A European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy (OJ C 404, 29.11.2019, p. 58).

(7) Under the umbrella of the Smart Specialisation Platform (S3P).

(8) COM(2020) 102 final.

(9) See European Commission Roadmap — Ares(2020)2722353.

(10) See Inception Impact Assessment, Ares(2020)1350037.

(11) See Inception Impact Assessment, Ares(2020)2487772.

(12) Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC (OJ L 211, 14.8.2009, p. 94).

(13) See Inception Impact Assessment, Ares(2019)4972390.

(14) COM(2020) 102 final.

1.10.2020

Official Journal of the European Union

C 324/48

Opinion of the European Committee of the Regions — Stepping up EU action to protect and restore the world’s forests

(2020/C 324/08)

Rapporteur:

Roby BIWER (LU/PES), Member of Bettembourg Municipal Council, Luxembourg

Reference document:

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Stepping up EU Action to Protect and Restore the World’s Forests

COM(2019) 352 final

POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

welcomes the commitment of the European Commission to stepping up efforts to protect and restore the world’s forests; notes with regret the limited scope of the proposals put forward;

acknowledges the European Union’s efforts over the last decades to increase forest cover, including through extended afforestation programmes, as well as thanks to strict Member States' forest legislations which ensures reforestation and natural regrowth; is concerned, however, about the alarming rate of global forest degradation, notably of primary forests, which includes both pristine and managed forests (1);

stresses the importance of primary forests as biodiversity hot spots which provide ecosystem services contributing to human health (pharmaceutical use, nutrition, medicinal plants), social inclusion (mental health, promoting employment in rural areas, eco-tourism, etc.), as well as their key role in preserving the environment from desertification, flooding, degradation of hydrogeological structure, soil erosion, extreme weather, loss of rainfall, polluted air, etc.; also recognises that sustainably managed, man-grown as well as mature native forests contribute to the protection and conservation of biodiversity;

recognises that deforestation is a very complex phenomenon with multiple drivers, increasing demands from a growing global population for food, feed, bioenergy, timber and other commodities being the main ones; stresses that deforestation is the second largest source of anthropogenic greenhouse gas (GHG) emissions and a major driver of biodiversity loss (2);

stresses that preventing forest loss can have multiple benefits for people and ecosystems including biodiversity conservation, GHG emissions reduction by carbon absorption — one of the most effective climate change mitigation measures — provision of ecosystems services that can drive sustainable growth, and a new forestry bioeconomy based on rational and sustainable exploitation of resources;

calls on the Commission and the Member States to put forward regulatory measures and recommendations tailored to meet national, regional and local specific divergences, to effectively combat all forms of deforestation and degradation of the original forest ecosystems which provide carbon stock and biodiversity, while also providing the appropriate funding;

underlines that the restoration of forests, in particular in Europe’s most deforested regions, remains among the most effective strategies for climate change adaptation and mitigation; in this respect, the expansion of agroforestry systems, by planting trees on and around cropland and pastures, could play an increasingly important role;

calls for policy coherence to align the efforts, objectives and outcomes produced by the different policies, including the new CAP (Common Agricultural Policy), the EU’s international commitments, i.e. the European Biodiversity Strategy to 2030, the 2030 Agenda for Sustainable Development, the Paris Agreement on climate change, its trade policy and the European Green Deal, in a comprehensive sustainability strategy with clear objectives and implementation measures and with due regard to a social, economic and environmental balance;

Priority 1: Reduce the EU consumption footprint on land and guarantee the consumption of products from deforestation-free supply chains in the EU

stresses that the EU shall guarantee consumption of products from non-EU deforestation-free supply chains as a central point in the process of protecting and restoring the world’s forests; calls on the EU to include consumers at the heart of the process to influence markets relying on the problematic conversion of primary forests to produce widely used products such as coffee, cocoa, palm oil and livestock;

10.

draws attention to severe human rights violations and environmental destruction in different product supply chains (e.g. soybean, palm oil, sugar, cocoa, beef, raw material for biofuels) and underlines that voluntary initiatives by the private sector and financial industry have so far not been sufficient to halt and reverse global deforestation; therefore calls on the Commission to make compliance with environmental and Human Rights (HRDD) Due Diligence (3) standards mandatory;

11.

points out that forest fires represent the main threat to the conservation of forest ecosystems in many EU Member States and regions. Facilitating local and regional authorities to further enhance their resilience to disasters is crucial considering that they are the first responders. Containing disasters by local community actions is the fastest and most effective way of limiting damage caused by forest fires;

12.

calls on the Commission to take a variety of actions to incentivise the active involvement of consumers in the selection, promotion and use of more sustainable goods, including, but not limited to, the establishment of specific EU certification schemes for deforestation-free products, integrating the certification scheme already available for forest-based products including both Forest Management and Chain of Custody (4) into a more comprehensive assessment, also applicable to non-forest-based products, encompassing: sustainable forest management; forest management and production systems based on reduced use of natural resources (e.g. water), chemical substances (e.g. pesticides) and energy (fossil fuels and energy from non-renewable sources in general); deforestation-free aspects in producing non-forest-based products; promotion of products with a limited transport footprint (e.g. area brand, carbon footprint); and lifecycle assessments (LCA) of products to quantify their environmental impact and to allow the comparison of their environmental performance;

13.

calls upon the Commission to step up its efforts in the fight against illegal logging through the full and effective implementation of the EU FLEGT (Forest Law Enforcement, Governance and Trade) work plan 2018-2022, in particular by strengthening the implementation of the EU Timber Regulation;

14.

calls upon the Commission to improve the communication and promotion of products from sustainable forestry towards customers by developing a specific label indicating the deforestation rate of a product and improving/integrating the already available European database/information systems (e.g. Ecolabel database) with deforestation-free products which shall be easy to recognise;

15.

calls upon the Commission to institute procedures to check the accuracy of the information and assessments collected in the European information system in order to improve confidence in the information provided, including strong traceability requirements guaranteeing the origin of products, and stronger monitoring and enforcement systems in order to help prevent fraud and mislabelling of products; suggests the consideration of other sourcing policies, particularly in countries with a high rate of deforestation and low certification coverage and/or a high rate of illegal logging, e.g. an obligation to provide proof that products were sourced sustainably, including documentation of material trades between operators and information on the procurement policies of all parties in the supply chain;

16.

urges all EU institutions and agencies to lead by example by modifying their behaviour, procurements and framework contracts towards the use of products from sustainable forestry; invites, moreover, its staff and members to offset carbon emissions linked to their CoR related flights by financially supporting sustainable forestry projects;

17.

stresses that public procurement, accounting for around 14 % of GDP in the EU, offers a potentially strong lever for ensuring more sustainable product supply contracts to purchase work, goods or services from companies. To this end, the introduction, within Directive 2014/24/EU on public procurement, of a ban on public purchases of products resulting from deforestation can produce relevant positive impacts on the promotion of deforestation-free products;

18.

points out that promoting a shift of consumer behaviour towards more healthy plant-based diets with a high intake of fruit and vegetables (which should be deforestation-free certified), thus reducing global meat consumption, can promote and preserve the health of citizens and of the planet in line with the C40 Good Food Cities Declaration (5); this shift must reflect the recommendations of the Farm to Fork Strategy which fosters consumption that is, as far as possible, local and sustainable in terms of the environment and human health;

19.

encourages the Commission to find synergies and connections with ongoing projects and initiatives related to the creation of urban or peri-urban forests and ecological corridors at subnational, national and European level and outside Europe; points out that these initiatives have many environmental and social benefits (ecosystem services) for people living in the connected cities, encompassing clean air, water flow regulation, soil protection from water and wind erosion, restoration of degraded land, resilience to disasters and to climate change, lower summer daytime temperatures, provision of food, higher urban biodiversity, better physical and mental health, higher property values, etc.;

20.

calls for the involvement of European citizens and local and regional authorities, commercial players and stakeholders that sell their products on the European market (e.g. multinational companies) in these activities; points out their role in protecting the forests and the need to increase transparency in their corporate reporting on social and environmental responsibilities (in line with Directive 2014/95/EU);

Priority 2: Work in partnership with producing countries to reduce pressures on forests and to ‘deforest-proof’ EU development cooperation and Priority 3: Strengthen international cooperation to halt deforestation and forest degradation and encourage forest restoration

21.

draws attention to the fact that deforestation mostly happens in non-EU countries. Most of the timber produced in these countries is consumed locally, and yet the uptake of timber certification remains low, as the cost of obtaining certification is too high, particularly for smallholders, who are also competing with cheaper conventional or even illegally harvested timber. Similarly, specific attention needs to be paid to how to certify forest-based products, such as natural rubber, produced by a large number of smallholders;

22.

calls for improving environmental education in developing countries where primary forests are located as a key aspect in raising awareness in these countries of the importance of their own environmental resources; points out that the direct involvement of citizens in these environmental education initiatives could bring many benefits, such as:

(a)	greater knowledge about the importance of the ecosystem services that sustainably managed forests and primary forests provide to society;

(b)	recognition of the direct and indirect multiple benefits of sustainable forest management (SFM);

(c)

a higher chance of deriving beneficial outcomes from local actions to limit deforestation and forest degradation; more opportunities to transform the protection of natural resources into their sustainable management and thus contributing to green jobs and green growth for the local population, etc.;

23.

points out the Commission shall consider the possibility of proposing primary forests as Unesco heritage sites in order to help protect them from deforestation and to increase the chance of drawing public attention to their protection;

24.

stresses that together with multifunctionality biodiversity is a key theme to take into consideration when discussing the EU’s forestry policy framework; points out that every time deforestation occurs by destroying a primary forest or a mature native forest, there is a loss of biodiversity which is typical for forests and difficult to restore because the area would be highly degraded;

25.

welcomes the new EU-wide Biodiversity Strategy for 2030 which raises the level of ambition for the EU to drive actions to halt biodiversity loss and ecosystems degradation across the whole of Europe and positioning the EU as a leader in the world in addressing the global biodiversity crisis, including, e.g. establishing protected areas for at least 30 % of land, introducing legally binding EU nature restoration targets and stricter protection of remaining EU primary and old-growth forests, applying, sustainable management of secondary forests (6), restoring degraded ecosystems and land by restoring forests, soils and wetlands and creating green spaces in cities;

26.

calls for much stronger efforts to meet the targets related to forestry within the new EU Biodiversity Strategy for 2030 and to agree on an ambitious post-2020 global biodiversity policy framework to be adopted at the upcoming 15th Conference of the Parties at the Convention on Biological Diversity (UN CBD COP 15), also based on the evaluation of the implementation of the strategy to 2020;

27.

insists that trade agreements are assessed against the objective of reducing greenhouse gas emissions and are based on sustainable development; calls for strengthening their chapters on sustainable forest management and the fight against deforestation, and integrate the deforestation into environmental impact assessments. In this regard, as the deforestation in Brazil’s Amazon has reached record levels with an 84 percent jump in rainforest fires (7), calls on the EU and its Member States to suspend the ratification of the EU-Mercosur until the Brazilian government reverses the trend;

28.

calls for an increased contribution of active, adaptive and participatory forestry in the post-2020 EU Forestry Strategy towards maintaining and enhancing biodiversity and thus fully achieving the benefits that biodiversity and ecosystem services can bring. All these activities and efforts should contribute to and promote a more ambitious global biodiversity policy where Europe urges to take responsible leadership;

Priority 4: Redirect finance to support more sustainable land-use practices and Priority 5: Support the availability of, quality of, and access to information on forests and commodity supply chains. Support research and innovation

29.

stresses that the measures put in place by the Commission to protect and restore forests in the EU and globally shall be broadly communicated to European citizens in order to increase the support for and effectiveness of these measures;

30.

calls upon the Commission to set up a European database collecting ongoing and past projects between the EU and third countries as well as bilateral projects between EU Member States and third countries in order to assess their impact on the world’s forests; underlines the involvement of local and regional authorities in the implementation of these projects;

31.

urges the EU to launch an Industrialisation, Digitisation and Decarbonisation (IDD) strategy to promote wood-based replacement ecomaterials, where consumers are informed of the origin and carbon footprint, and to encourage ‘zero-deforestation’ certification, boosting its use in sectors such as construction, textiles, chemicals and the packaging industry;

32.

calls on the EU to further develop research and monitoring programmes like Copernicus, European Earth Observation and other monitoring programmes to supervise the commodity supply chain in order to be able to identify and give early warnings on products which caused deforestation or environmental degradation during their production phase;

33.

calls upon the Commission to consider establishing a European Forestry Agency in light of the importance of protecting and restoring the world’s forests.

Brussels, 2 July 2020.

The President of the European Committee of the Regions

Apostolos TZITZIKOSTAS

(1) https:/ /www.cbd.int/forest/definitions.shtml

(2) https://www.sciencedirect.com/science/article/pii/S0959378018314365#fig0005

(3) Human Rights Due Diligence HRDD is generally understood as a means by which companies can identify, prevent, mitigate and account for the negative human rights impacts of their activities or those linked to their business relationships. https://corporatejustice.org/priorities/13-human-rights-due-diligence

(4) e.g. Forest Stewardship Council® (FSC®), Programme for the Endorsement of Forest Certification TM (PEFCTM), etc.

(5) Under the C40 Good Food Cities Declaration, cities commit to: align food procurement policies to the Planetary Health Diet ideally sourced from organic agriculture, support an overall increase of healthy plant-based food consumption in our cities by shifting away from unsustainable, unhealthy diets https://www.c40.org/press_releases/good-food-cities

(6) https:/ /www.cbd.int/forest/definitions.shtml

(7) Brazilian National Institute for Space Research 2019.

1.10.2020

Official Journal of the European Union

C 324/53

Opinion of the European Committee of the Regions — The services package: An updated view from Europe’s local and regional authorities

(2020/C 324/09)

Rapporteur:

Jean-Luc VANRAES (BE/Renew E.), Member of Uccle Municipal Council

Reference documents:

Proposal for a Regulation of the European Parliament and of the Council introducing a European services e-card and related administrative facilities

COM(2016) 824 final

Proposal for a Directive of the European Parliament and of the Council on the legal and operational framework of the European services e-card introduced by Regulation [ESC Regulation] …

COM(2016) 823 final

Proposal for a directive of the European Parliament and of the Council on a proportionality test before adoption of new regulation of professions

COM(2016) 822 final

Proposal for a Directive of the European Parliament and of the Council on the enforcement of the Directive 2006/123/EC on services in the internal market, laying down a notification procedure for authorisation schemes and requirements related to services, and amending Directive 2006/123/EC and Regulation (EU) No 1024/2012 on administrative cooperation through the Internal Market Information System

COM(2016) 821 final

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on reform recommendations for regulation in professional services

COM(2016) 820 final

POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

Importance and urgency of completing the Single Market in services

acknowledges that the Single Market is a major achievement of EU policy that underpins European competitiveness, prosperity and consumer well-being; underlines that a properly functioning Single Market also contributes to boosting economic growth, innovation and employment at regional and local levels and that regional and local authorities, as important public procurers, benefit from a better functioning Single Market, including in services;

recognises that the Single Market is a work in progress and that significant barriers remain; underlines that its implementation and deepening demand greater commitment from institutional actors at all levels of governance, and that Member States in particular have important responsibilities for ensuring effective implementation;

underlines that Single Market policy proposals can have important territorial impacts that should be properly assessed. Territorial impact assessments contribute to measuring the possible effects of legislative proposals in a comprehensive and balanced way, covering a wide range of aspects, and are essential for many regions which are not directly involved in the legislative process, but do implement the legislation; reiterates that the CoR is ready to contribute its expertise to these assessments;

calls for the implementation of the Single Market to respect, as far as possible, the principles of local self-government; recalls that the European Charter of Local Self-Government (1) acknowledges that local authorities are one of the main foundations of any democratic regime, that the safeguarding and reinforcement of local self-government is an important contribution to the construction of a Europe based on the principles of democracy and the decentralisation of power, and that this entails that local authorities possess a wide degree of autonomy with regard to their responsibilities, the ways and means by which those responsibilities are exercised and the resources required for their fulfilment;

considers that a more decentralised approach to the implementation of the Single Market should be looked at, involving the decentralisation of responsibility for monitoring and controlling the correct application of EU law to agencies at Member State level, modelled on the decentralised approach to the application of EU competition rules; believes that such a decentralised approach would both help in reducing administrative burden at all levels and promote Member States' ownership of the Single Market, which is essential for its proper functioning;

points out that many of the most significant remaining economic barriers are in the area of services;

underlines that services are the major component of the European economy, accounting for around 70 % of both GDP and jobs (2); points out, however, that the EU service sector is characterised by slow productivity growth and weak competition and by an enormous diversity of services sectors with different characteristics; notes that intra-EU trade in services represents only one third of intra-EU trade in goods and shows no signs of catching up;

stresses that unjustified barriers to the cross-border provision of services, mainly resulting from diverging national rules and procedures, are among the main causes of the sector's poor performance and that removing these obstacles would give service providers and customers greater opportunities to make full use of the potential of the Single Market, that further action should be based on demonstrated needs of service providers; that the enormous diversity of services sectors may require a more sector-specific approach and that regional and local governments could play an important role in solving the problems that arise;

stresses that services are an important intermediate input in the economy as part of global value chains and that competitive services, particularly business services, are crucial for productivity and cost competitiveness in other sectors such as manufacturing which are vital for regional and local economies;

10.

points out that, ten years after its entry into force, the potential of the Services Directive to enhance the free movement of services has not yet been fully realised and that providers in a range of service sectors still face a wide array of barriers when they want to establish themselves in another Member State or provide services on a temporary cross-border basis; notes that estimates indicate that tackling the barriers to cross-border trade and investment in services under the framework already provided by the Services Directive could add 1,7 % to the GDP of the EU;

11.

notes that of the Commission's legislative proposals in the services package only one has been adopted, namely the directive on a proportionality test before adoption of new regulation of professions; further notes that the legislative proposals for the European services e-card are blocked in the legislative process and that the proposed directive laying down a notification procedure for authorisation schemes and requirements related to services has progressed very slowly;

12.

urges the Commission to analyse the most common business and professional activities in each Member State, which could already benefit from the current Services Directive, so that a comprehensive list of unnecessary costs and bottlenecks for entrepreneurs can be put together as soon as possible; also urges the Commission to draw up, as a matter of urgency, a recommendation containing a standard model for points of single contact — provided for in Article 6 of the Directive — so that Member States can follow a common design to make them as easy as possible for providers to use in their different languages, as happens in the area of technical regulations with great efficiency and minimum translation costs;

13.

notes that the ECJ ruling in the Visser Vastgoed case (3) could have significant implications for local and regional authorities; considers that these must be addressed by EU legislation and that the proposed notification directive is the proper framework in which to do this;

14.

considers that the implications of the Visser Vastgoed case may not be limited to notification obligations for land use zoning plans that concern retail services but potentially extend more widely;

15.

recognises the importance of a well-functioning Single Market for border regions and believes EU cross-border cooperation instruments such as EGTCs (4) can play a useful role in this;

European services e-card

16.

takes note of the fact that the European Parliament has rejected the European Commission's proposal for a services e-card and asked the Commission to withdraw the file; also notes that the Council was unable to reach a common position on the same file and points out that, in order to support businesses providing cross-border services, measures from the current Services Directive such as the individual contact points should be implemented properly;

17.

reminds the co-legislators that the initial idea behind the services e-card, on which the proposal failed to deliver, was to reduce the administrative complexity and costs for cross-border service providers, and particularly SMEs, when fulfilling administrative formalities;

18.

points out that without the implementation of a services e-card, cross-border service providers still face the same costs in fulfilling administrative formalities and that the services e-card was supposed to reduce these by half, which would have been of major benefit to SMEs;

19.

therefore, recalls the need to take important steps in administrative simplification from the perspective of service providers and the unnecessary costs they still face; points out, however, that the legislative, technical and administrative burden for local and regional authorities entailed in introducing the services e-card must be proportionate to the expected benefits;

20.

reminds the co-legislators that the Services Directive stipulates that Member States may not duplicate requirements which are equivalent to those the provider has already fulfilled in another Member State; notes, however, that this is still insufficiently applied in practice, and that service providers therefore often face the same requirements as domestic companies even though they have already complied with equivalent or similar requirements in their home Member State;

21.

reminds the co-legislators that the complexity of cooperation between national authorities and the resulting administrative burden of the proposed services e-card procedure were among the main reasons why compromise was not achieved in negotiations on this issue. In this respect, calls on the European Commission to concentrate on simple and clear rules for cooperation between authorities in its future proposals;

22.

points out that the significant diversity in legal form and shareholding requirements across Member States also remains an obstacle to the freedom of establishment in the business services sector;

23.

equally notes that service providers experience great difficulties in obtaining legally required professional indemnity insurance cover when seeking to offer their services in another Member State;

24.

also points out that national sectoral laws do not always make the necessary distinction between the requirements applicable to service providers seeking to establish themselves and those seeking to provide cross-border services temporarily, resulting in uncertainty and disproportionate regulatory requirements for cross-border service providers;

25.

regrets that the aforementioned obstacles have not been lifted and still contribute to a low integration of services in the Single Market, under the framework already provided by the Services Directive;

26.

therefore, urges the other institutions to find common ground to tackle the issues that the legislative proposal for the e-card is intended to tackle, thus allowing for a better implementation on the grounds of the Services Directive;

27.

recognises the different approaches in Member States towards eligibility criteria for service providers to take part in tenders, which can be an obstacle to the Single Market; therefore, the potential of EU instruments should be used to streamline these approaches wherever possible;

28.

draws attention to the provisions in the Services Directive aimed at increasing cross-border activities and the development of a genuine Single Market for services, through a greater convergence of professional rules at European level and calls on the European Commission to propose initiatives to incentivise professional associations at European level to use these possibilities to facilitate the free movement of service providers;

29.

underlines the importance of the Services Directive and its contribution to the free movement of services in the Single Market. At the same time highlights that businesses, in particular SMEs and public authorities, face many challenges when applying the directive's rules;

Notification procedure

30.

takes note of the ECJ's ruling in the Visser Vastgoed case and of the legal uncertainties it could entail for local and regional authorities (5), particularly as regards the question of the obligation to notify; also as the scope might not be limited to retail services and land use planning, but could affect other regulatory activities of local and regional authorities;

31.

sees an opportunity in the improvement of the notification procedure under the Services Package to address the issues raised by the ECJ's ruling and calls upon the co-legislators to concentrate their efforts on coming up with solutions during the current negotiations on the notification procedure, which also ensure that the procedure provides the necessary legal certainty;

32.

stresses that many local and regional authorities face challenges in terms of capacity and resources to cope with the administrative burden of the current legal notification obligation — in view of the ECJ's ruling — and that any new notification procedure should take this into account in order to reduce that administrative burden as much as possible;

33.

points to the need to strike the right balance between the efforts required by notification obligations and the added value for reaching the objectives of the Services Directive, taking into account that most local and regional regulations have an insignificant effect on the Single Market and are likely to comply with the Services Directive's requirements;

34.

emphasises that any new notification procedure should avoid leading to unnecessary delays in the adoption of local and regional regulations, as these delays adversely affect all stakeholders involved and hinder economic activity as well as investment (for instance in retail and related real estate development);

35.

calls for sufficient transparency and openness to dialogue on the part of the European Commission in the context of any new notification procedure, particularly during the phase of the procedure in which the Commission assesses whether a local or regional regulation is compliant with the Services Directive;

36.

insists on the need for effective implementation of the Services Directive and therefore suggests that the European Commission come up with a set of quantitative and/or qualitative criteria to evaluate which type of local and regional regulations could be exempted from notification under the Services Directive, without this exemption standing in the way of the implementation of the Services Directive;

37.

suggests that the European Commission investigate the feasibility of decentralised elements of implementation, including notification, linked to quantitative and/or qualitative criteria, as this could increase the efficiency of the implementation and lead to a more accurate assessment of the regional and local public interest; thus respecting the principle of local self-government and subsidiarity;

38.

emphasises the importance of the principles of non-discrimination, proportionality and public interest as applied in the Services Directive, and underlines in the local and regional regulatory context that Recital 9 of the Services Directive explicitly excludes from its scope rules concerning the development or use of land and town and country planning.

Brussels, 1 July 2020.

The President of the European Committee of the Regions

Apostolos TZITZIKOSTAS

(1) Council of Europe, 1985.

(2) Commission Staff Working Document, Single Market Performance Report 2019, SWD(2019) 444 final.

(3) Joined Cases C-360/15 and C-31/16 decided on 30 January 2018.

(4) European Groupings of Territorial Cooperation.

(5) There are more than 95 000 municipalities in the EU, with huge size and capacity differences. In Germany and Austria together, up to 250 000 local spatial plans could in principle fall under the services directive and its notification obligation (Interim report of 15 January 2020 of a CoR-commissioned study on the Implication for local and regional authorities of the EC notification directive in the light of the January 2018 ECJ ruling).

1.10.2020

Official Journal of the European Union

C 324/58

Opinion of the European Committee of the Regions — European Climate Law: establishing the framework for achieving climate neutrality

(2020/C 324/10)

Rapporteur:

Juan Manuel MORENO BONILLA (ES/EPP), President of the Region of Andalusia

Reference document:

Proposal for a Regulation of the European Parliament and of the Council establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (European Climate Law)

COM(2020) 80 final

I. RECOMMENDATIONS FOR AMENDMENTS

Amendment 1

Recital number 5

Text proposed by the European Commission

CoR amendment

(5)

The Union’s and the Member States’ climate action aims to protect people and the planet, welfare, prosperity, health, food systems, the integrity of eco-systems and biodiversity against the threat of climate change, in the context of the 2030 agenda for sustainable development and in pursuit of the objectives of the Paris Agreement, and to maximise prosperity within the planetary boundaries and to increase resilience and reduce vulnerability of society to climate change.

(5)

The Union’s, the Member States’ and local and regional authorities’ climate action aims to protect people and the planet, welfare, prosperity, health, food systems, the integrity of eco-systems and biodiversity against the threat of climate change, in the context of the 2030 agenda for sustainable development and in pursuit of the objectives of the Paris Agreement, and to maximise prosperity within the planetary boundaries and to increase resilience and reduce vulnerability of society to climate change.

Reason

Local and regional action is crucial for achieving the climate neutrality objective, recognised in the Paris Agreement and fully in line with the objectives set out in the recital. As such, it would be a failure not to include local and regional authorities.

Amendment 2

Recital number 14

Text proposed by the European Commission

CoR amendment

(14)

Adaptation is a key component of the long-term global response to climate change. Therefore, Member States and the Union should enhance their adaptive capacity, strengthen resilience and reduce vulnerability to climate change, as provided for in Article 7 of the Paris Agreement, as well as maximise the co-benefits with other environmental policies and legislation. Member States should adopt comprehensive national adaptation strategies and plans.

(14)

Reason

Territorial factors play a crucial role in determining the right choice of policy to strengthen resilience and adaptation efforts. Geographical, climate, social and economic considerations are key to evaluating and assessing vulnerability, managing risks and identifying future scenarios for climate variables. Establishing forecasting tools for adaptation and promoting resilience which can be tailored to different regional and local circumstances would represent an important step forward in developing these strategies.

Amendment 3

Recital number 17

Text proposed by the European Commission

CoR amendment

(17)

The Commission, in its Communication ‘The European Green Deal’, announced its intention to assess and make proposals for increasing the Union’s greenhouse gas emission reduction target for 2030 to ensure its consistency with the climate-neutrality objective for 2050. In that Communication, the Commission underlined that all Union policies should contribute to the climate-neutrality objective and that all sectors should play their part. By September 2020, the Commission should, based on a comprehensive impact assessment and taking into account its analysis of the integrated national energy and climate plans submitted to the Commission in accordance with Regulation (EU) 2018/1999 of the European Parliament and of the Council (1), review the Union’s 2030 target for climate and explore options for a new 2030 target of 50 to 55 % emission reductions compared with 1990 levels. Where it considers necessary to amend the Union’s 2030 target, it should make proposals to the European Parliament and to the Council to amend this Regulation as appropriate. In addition, the Commission should, by 30 June 2021, assess how the Union legislation implementing that target would need to be amended in order to achieve emission reductions of 50 to 55 % compared to 1990.

(17)

The Commission, in its Communication ‘The European Green Deal’, announced its intention to assess and make proposals for increasing the Union’s greenhouse gas emission reduction target for 2030 to ensure its consistency with the climate-neutrality objective for 2050. In that Communication, the Commission underlined that all Union policies should contribute to the climate-neutrality objective and that all sectors should play their part. As soon as possible and no later than beginning of September 2020, the Commission should, based on a comprehensive impact assessment and taking into account its analysis of the integrated national energy and climate plans submitted to the Commission in accordance with Regulation (EU) 2018/1999 of the European Parliament and of the Council (1), review the Union’s 2030 target for climate and explore options for a new 2030 target of at least 55 % emission reductions compared with 1990 levels. Where it considers necessary to amend the Union’s 2030 target, it should make proposals to the European Parliament and to the Council to amend this Regulation as appropriate. In addition, the Commission should, by 30 June 2021, assess how the Union legislation implementing that target would need to be amended in order to achieve emission reductions of at least 55 % compared to 1990.

Reason

If we want to ensure, that a European Recovery Plan is a is green and the investments of today lead towards reaching the 2030 and ultimately the 2050 targets, the impact assessment of the 2030 legislative framework needs to be ambitious and published as soon as possible.

Amendment 4

Recital number 18

Text proposed by the European Commission

CoR amendment

(18)

To ensure the Union and the Member States remain on track to achieve the climate-neutrality objective and progress on adaptation, the Commission should regularly assess progress. Should the collective progress made by Member States towards the achievement of the climate-neutrality objective or on adaptation be insufficient or Union measures inconsistent with the climate-neutrality objective or inadequate to enhance adaptive capacity, strengthen resilience or reduce vulnerability, the Commission should take the necessary measures in accordance with the Treaties. The Commission should also regularly assess relevant national measures, and issue recommendations where it finds that a Member State’s measures are inconsistent with the climate-neutrality objective or inadequate to enhance adaptive capacity, strengthen resilience and reduce vulnerability to climate change.

(18)

To ensure the Union and the Member States remain on track to achieve the climate-neutrality objective and progress on adaptation, the Commission should regularly measure and assess progress, making all relevant data available to the public . Should the collective progress made by Member States towards the achievement of the climate-neutrality objective or on adaptation be insufficient (missing the quantitative targets or the deadlines) or Union measures inconsistent with the objective of climate neutrality by 2050 or inadequate to enhance adaptive capacity, strengthen resilience or reduce vulnerability, the Commission should take the necessary measures in accordance with the Treaties. The Commission should also regularly assess relevant national measures, and issue recommendations where it finds that a Member State’s measures are inconsistent with the climate-neutrality objective or inadequate to enhance adaptive capacity, strengthen resilience and reduce vulnerability to climate change.

Reason

If progress is monitored effectively, it can enhance the visibility, transparency and sense of ownership of efforts to achieve climate neutrality. The data obtained should therefore be available at all times, not only in the regular reports, and the timeframe should be specifically mentioned.

Amendment 5

Recital number 20

Text proposed by the European Commission

CoR amendment

(20)

As citizens and communities have a powerful role to play in driving the transformation towards climate neutrality forward, strong public and social engagement on climate action should be facilitated. The Commission should therefore engage with all parts of society to strengthen the two-way cooperation, exchange of information and joint efforts for awareness-raising aimed at achieving a climate-neutral and climate-resilient society, including through launching the European Climate Pact as an innovative governance tool to involve local and regional authorities as well as civil society and citizens at large .

Reason

Achieving a climate-neutral and a climate-resilient society must be based on exchanging information and raising public awareness. Strengthening these tools is a task that can be led by the Commission in the design and implementation of its public policies, in that they are based on a cross-cutting approach, whereas the proposed actions are specific to the sectoral policies that national, regional and local authorities may want to pursue, if appropriate.

Amendment 6

Recital number 21

Text proposed by the European Commission

CoR amendment

(21)

In order to provide predictability and confidence for all economic actors, including businesses, workers, investors and consumers, to ensure that the transition towards climate neutrality is irreversible, to ensure gradual reduction over time and to assist in the assessment of the consistency of measures and progress with the climate-neutrality objective, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to set out a trajectory for achieving net zero greenhouse gas emissions in the Union by 2050. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(21)

Reason

To remove any reference to the trajectory being set out by means of delegated acts. The Commission should confine itself to proposing a trajectory and evaluating progress.

Amendment 7

Article 2(2)

Text proposed by the European Commission	CoR amendment
The relevant Union institutions and the Member States shall take the necessary measures at Union and national level respectively, to enable the collective achievement of the climate-neutrality objective set out in paragraph 1, taking into account the importance of promoting fairness and solidarity among Member States.	The relevant Union institutions and the Member States shall take the necessary measures at Union and national level respectively, to enable the collective implementation of the climate-neutrality objective in European cities and regions, set out in paragraph 1, taking into account the importance of promoting fairness and solidarity among Member States.

Reason

The implementation of climate legislation is mainly relying on European cities and regions. Thus, it seems necessary to change the wording.

Amendment 8

Article 2(3)

Text proposed by the European Commission

CoR amendment

By September 2020, the Commission shall review the Union’s 2030 target for climate referred to in Article 2(11) of Regulation (EU) 2018/1999 in light of the climate-neutrality objective set out in Article 2(1), and explore options for a new 2030 target of 50 to 55 % emission reductions compared to 1990. Where the Commission considers that it is necessary to amend that target, it shall make proposals to the European Parliament and to the Council as appropriate.

As soon as possible and no later than beginning of September 2020, the Commission shall review the Union’s 2030 target for climate referred to in Article 2(11) of Regulation (EU) 2018/1999 in light of the climate-neutrality objective set out in Article 2(1), and explore options for a new 2030 target of at least 55 % emission reductions compared to 1990. Where the Commission considers that it is necessary to amend that target, it shall make proposals to the European Parliament and to the Council as appropriate.

Reason

The amendment follows the same logic as amendment regarding recital 17.

Amendment 9

Article 3

Text proposed by the European Commission	CoR amendment
Trajectory for achieving climate neutrality	Trajectory for achieving climate neutrality
1. The Commission is empowered to adopt delegated acts in accordance with Article 9 to supplement this Regulation by setting out a trajectory at Union level to achieve the climate-neutrality objective set out in Article 2(1) until 2050. At the latest within six months after each global stocktake referred to in Article 14 of the Paris Agreement, the Commission shall review the trajectory .	1. The Commission is empowered to propose amendments to this Regulation by proposing a trajectory at Union level to achieve the climate-neutrality objective set out in Article 2(1) until 2050. At the latest within six months after each global stocktake referred to in Article 14 of the Paris Agreement, the Commission shall evaluate the progress made in achieving the climate-neutrality objective .
2. The trajectory shall start from the Union’s 2030 target for climate referred to in Article 2(3).	2. The trajectory shall start from the Union’s 2030 target for climate referred to in Article 2(3).
3. When setting a trajectory in accordance with paragraph 1, the Commission shall consider the following:	3. When proposing a trajectory in accordance with paragraph 1, the Commission shall consider the following:

Reason

To remove any reference to the trajectory being set out by means of delegated acts. The Commission should confine itself to proposing a trajectory and evaluating progress.

Amendment 10

Article 3(3)(e)

Text proposed by the European Commission

CoR amendment

(e)	fairness and solidarity between and within Member States;

(e)	fairness and solidarity between and within Member States , taking full account of the EU’s territorial cohesion ;

Reason

The criteria for establishing the path towards climate neutrality should take clear account of the EU’s regional cohesion.

Amendment 11

Article 3(3)(k) and (l) new

Text proposed by the European Commission

CoR amendment

(k)	the commitment to global leadership on climate neutrality;

(l)	the assessment of the carbon footprint water and biodiversity footprint in trade relations with third countries as well as the EU’s commitments under relevant international Treaties.

Reason

The European Union is committed to playing a prominent and influential role at international level, and to playing a leading part in the green, fair and solidarity-based transition that countries and regions must undertake to achieve the goal of climate neutrality by 2050, while leaving no-one behind. Given the nature and overall scope of the climate impact and its socio-economic consequences, which do not respect borders, this is an opportunity to incorporate the firm intention expressed by the EU. This can be done by including an obligation to consider, when setting the neutrality trajectory, that all policies and actions incorporate commitments to support the same principles underlying this Regulation, and this among other countries and regions outside the EU with which relations of any kind are maintained.

At the same time, the European Union should take into account the carbon and water footprints of products from third countries, as not only will this help the competitiveness of our economy, it will also strengthen the EU’s leadership role in climate neutrality by requiring certain global standards.

Amendment 12

Article 4(2)

Text proposed by the European Commission	CoR amendment
2. Member States shall develop and implement adaptation strategies and plans that include comprehensive risk management frameworks, based on robust climate and vulnerability baselines and progress assessments.	2. Member States shall develop and implement adaptation strategies and plans that include comprehensive risk management frameworks, based on robust climate and vulnerability baselines and progress assessments. Member States shall ensure the integration of the regional, local and outermost regional perspective when developing and implementing their adaptation strategies and plans.

Reason

The impact of the consequences of climate change is uneven across territories, with a different effect depending on multiple factors at play. There are inequalities in the impact of climate change effects due to geographical location, socio-economic circumstances; in short, in the level of risk, exposure and vulnerability.

This gives rise to a need, when it comes to assessing the risks of the impact of climate change, to make distinctions at regional or even local level, based on geographical and socio-economic factors. As a result, despite the global nature of the problem of climate change, adaptation should be tailored to the characteristics of each territory depending on the type of impacts and their specific scope. This does not prevent the development of these policies from being structured around common strategies covering areas over and above those to be aligned.

Amendment 13

Article 5(2a) new

Text proposed by the European Commission

CoR amendment

2(a) The assessment referred to in paragraph 1 and the review referred to in paragraph 2 shall be carried out on the basis of a common EU information system, accessible to the public, incorporating the information generated by the different actors involved in achieving the objective of climate neutrality and advancing adaptation. Requirements shall be set to ensure standardisation and homogeneity of information by ensuring that it consists of data that are easy to find, accessible, interoperable and reusable. This system will benefit from the opportunities afforded by digitalisation and new technologies.

Reason

In order to encourage the whole of society to get involved in meeting the objectives of the European Climate Law, it is essential that it has at its disposal high-quality, verified information that can serve as a basis for decision-making and suitable policies and measures. For this reason, good practices should be established for collecting and transferring information, and the way in which that information is processed should be standardised and made uniform. It is also necessary to establish a system for continuously improving such information and to exploit the potential of new technologies to facilitate the exchange of data between the actors involved, with a view to taking advantage of the synergies that may arise and optimising resources.

Amendment 14

Article 5(3)

Text proposed by the European Commission

CoR amendment

3. Where, based on the assessment referred to in paragraphs 1 and 2, the Commission finds that Union measures are inconsistent with the climate-neutrality objective set out in Article 2(1) or inadequate to ensure progress on adaptation as referred to in Article 4, or that the progress towards either the climate-neutrality objective or on adaptation as referred to in Article 4 is insufficient, it shall take the necessary measures in accordance with the Treaties, at the same time as the review of the trajectory referred to in Article 3(1).

3. Where, based on the assessment referred to in paragraph 1 and the review referred to in paragraph 2, the Commission finds that Union measures are inconsistent with the climate-neutrality objective set out in Article 2(1) or inadequate to ensure progress on adaptation as referred to in Article 4, or that the progress towards either the climate-neutrality objective or on adaptation as referred to in Article 4 is insufficient, it shall take the necessary measures in accordance with the Treaties, at the same time as the review of the trajectory referred to in Article 3(1).

Reason

The aim is to make the text more consistent by using precise references in the article itself, based on the intention of the paragraphs referred to.

Amendment 15

Article 6(2a) new

Text proposed by the European Commission	CoR amendment
	(2a) The information system referred to in Article 5(2a) shall have a section including strategies, measures and good practices, in order to help bring the measures taken by Member States into line with Commission recommendations.

Reason

To ensure that adoption of the Commission recommendations by the Member States is as straightforward as possible, they should have access to high-quality verified information that can serve as a basis for decision-making and suitable policies and measures. The knowledge base needs to be increased, communication about innovative initiatives and strategies promoted and the transfer of good practices enhanced at EU level, so as to foster solidarity among Member States, exploit synergies and optimise resources.

Amendment 16

Article 7(1)(f) new

Text proposed by the European Commission

CoR amendment

(f)	additional information from local and regional authorities on progress achieved and territorial effects.

Reason

Given the crucial role that Europe’s regions and cities will play in implementing the different policies covered by the Climate Law framework, their views should be taken into account when considering revisions of the climate neutrality trajectory.

Amendment 17

Article 7(1)(e)

Text proposed by the European Commission

CoR amendment

(e)	any supplementary information on environmentally sustainable investment, by the Union and Member States, including, when available, investment consistent with Regulation (EU) 2020/… [Taxonomy Regulation].

e)	any supplementary information on environmentally sustainable investment, by the Union, Member States and local and regional authorities , including, when available, investment consistent with Regulation (EU) 2020/… [Taxonomy Regulation].

Reason

Although they are smaller than those of the Union and the Member States, consideration of the investments of local and regional authorities would ensure full respect for the territorial diversity of the European Union in any revision of the climate neutrality trajectory. What is more, Europe’s regions and cities are often the focal points of sustainability innovation and should be duly taken into account when setting ambitious targets in the future.

Amendment 18

Article 8

Text proposed by the European Commission

CoR amendment

The Commission shall engage with all parts of society to enable and empower them to take action towards a climate-neutral and climate-resilient society. The Commission shall facilitate an inclusive and accessible process at all levels, including at national, regional and local level and with social partners, citizens and civil society, for the exchange of best practice and to identify actions to contribute to the achievement of the objectives of this Regulation. In addition, the Commission may also draw on the multilevel climate and energy dialogues as set up by Member States in accordance with Article 11 of Regulation (EU) 2018/1999.

The Commission shall engage with all parts of society to enable them to adopt comprehensive measures to achieve a climate-neutral and climate-resilient society. The Commission shall facilitate an inclusive and accessible process at all levels, including at national, regional and local level and with social partners, citizens and civil society, for the exchange of best practice and to identify actions to contribute to the achievement of the objectives of this Regulation (EU) 2018/1999. Especially, as part of the recovery from the COVID-19 crisis, the Commission should rely on and support the direct link between citizens, local businesses and their local and regional authorities, as building a climate-proof society and ensuring the support of the communities will depend on this link. In addition, the Commission may also draw on the multilevel climate and energy dialogues as set up by Member States in accordance with Article 11 of Regulation (EU) 2018/1999 , as well as on the actions under the Climate Pact. .

Reason

Achieving a climate-neutral and climate-resilient society must be based on exchanging information and raising public awareness. Strengthening these tools is a task that can be led by the Commission in the design and implementation of its public policies, in that they are based on a cross-cutting approach, whereas the proposed actions are specific to the sectoral policies that national, regional and local authorities may want to pursue, if appropriate. A Green Recovery is needed. However, to make it a reality, European citizens and businesses need to adhere to the project. Therefore, local and regional authorities have a major role to play.

Amendment 19

Article 9

Text proposed by the European Commission

CoR amendment

Exercise of the delegation

1. The power to adopt delegated acts referred to in Article 3(1) is conferred on the Commission subject to the conditions laid down in this Article.

2. The power to adopt delegated acts referred to in Article 3(1) shall be conferred on the Commission for an indeterminate period of time from …[OP: date of entry into force of this Regulation].

3. The delegation of power referred to in Article 3(1) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

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

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

Reason

The use of delegated acts by the European Commission to review the targets is incompatible with Art. 290 TFEU.

II. POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

notes that the European Green Deal is one of the flagship initiatives of the EU but highlights that the new growth strategy for the European project, together with the recently published Communication from the European Commission on the EU budget strengthens the recovery plan to ensure a speedy and full recovery from the current health and economic crisis. Stresses that the Green Deal’s main objective must be the transition towards climate neutrality by 2050 at the latest, while at the same time stimulating a swift and sustainable economic recovery, as it recognises that this transition brings with it new opportunities for Europe and its citizens, towards a more resilient society and economy;

supports the establishment of the EU’s long-term climate neutrality objective by means of an appropriate legally-binding objective as a necessary step to steer the European project towards irreversible climate neutrality by 2050. This commitment is needed in order to consolidate the European Union as the world leader in climate action and as an ambassador in maintaining the high ambitions of net-zero greenhouse gas emissions, together with the importance of increasing the volume of gas removals. It is also necessary as a way of building trust among our citizens, businesses and civil society, ensuring an inclusive and concerted effort; in this context, it would also be important to already consider the necessary policy trajectory beyond 2050, when it is likely that a sustainable system of negative emissions will continue to be necessary; in this context, it is also important to develop the concept of inter-generational climate justice and take it into account in present and future decision making;

points out that the current health crisis merely highlights the need for a transition to a more sustainable and resilient society and economy, as continuing to turn a blind eye to climate change could have deeper consequences at global level; underlines that the transition should be fair, gradual and permanent, as unsustainable solutions in the short term could be detrimental, rather than beneficial, on the path towards climate neutrality;

emphasises that the European Climate Law should also ensure that the measures implemented to achieve the net-zero greenhouse gas emissions must reinforce and not compromise other environmental priority goals, such as biodiversity protection or the management of protected areas;

calls on the Commission to consider the impact of the United Kingdom leaving the EU on reaching the aim of climate-neutrality and any interim targets; recalls that the UK is currently the EU’s second-largest CO2 emitter, with ongoing and planned reductions well above the EU average and a legally binding national climate target of around 57 % by 2030 (1);

highlights the recently adopted Declaration on Local and regional authorities as actors of the European response to the COVID-19 crisis, and the need for the European Green Deal to form a key element of the EU recovery plan, so that the crisis turns into an opportunity to urgently address climate change and to strengthen the EU’s economic, social and territorial cohesion;

believes it is necessary to involve all relevant subnational governments in the drafting of the national energy and climate plans (NECPs) and long-term national policies through a genuine participatory multilevel dialogue based on regional and local experiences. Agrees with the inclusion of multilevel dialogue on climate and energy within the framework of European climate legislation but underlines the need for a more systematic approach to the integration of local and regional authorities in these processes of transition to climate neutrality, not only in the European decision-making process but also in international negotiations; renews its call to the Member States and the European Commission to establish a permanent Multilevel Energy Dialogue Platform (2) in order to support the active participation of local and regional authorities, civil society organisations, the business community and other relevant stakeholders in the management of the energy transition;

stresses that, as the involvement of citizens is key to achieving significant progress towards climate neutrality, initiatives that encourage bottom-up feedback and support the exchange of information and education at grassroots level should be considered invaluable for the success of the European Green Deal; in this regard, suggests integrating the European Climate Pact into the European Climate Law and stresses that the Pact should be developed as an innovative governance instrument to allow for two-way communication, cooperation and information exchange across levels, sectors and territories to improve the effectiveness and the legitimacy of the EU’s climate policy. Stresses that the proper involvement of society and other stakeholders not only makes it more likely that policies will be accepted, but it also encourages extensive and transparent measurement of progress and consequently gives people and organisations on the ground a more tangible sense of self-efficacy in the transformation process;

points out that a ‘one size fits all’ approach is not the right way to tackle climate change, underlining the diversity of Europe’s regions in terms of climate, environment, landscape, mobility and economic and social structure; recalls that the European Climate law represents the framework regulation that will direct individual policies towards the climate objective and that its success will depend heavily on local and regional authorities, highlights, likewise, that local and regional authorities as the level of government closest to citizens, play an important part in the management of decentralised energy production through self-consumption, distributed generation and smart networks, promotion of investment and the coupling of energy and climate policies with measures taken in relation to housing, energy poverty and transport;

10.

stresses that the European Climate Law, as the central pillar of the European Green Deal and the framework law to achieve climate neutrality, should ensure that all EU measures adhere to the ‘do no harm’ principle and, in line with the principle of active subsidiarity, fully respect all levels of government as partners in the European decision-making process, not as stakeholders;

11.

calls for fundamental decisions on the implementation of climate objectives not to be taken using delegated acts, as otherwise the co-decision powers of regional and local authorities will be curtailed. The CoR considers the trajectory that will be defined for achieving climate neutrality to be such a fundamental decision;

12.

maintains that in order to achieve the objectives of the European Climate Law, it is essential that the law has high-quality, verified information that can serve as a basis for decision-making and suitable policies and measures. The impact of climate change is felt at territorial level, and directly affects regions and municipalities. The central administrations of each country are responsible for drawing up and transmitting national inventories. In order to improve the quality of measurements, it is important that the methods should be developed through interaction between the EU, the Member States and the local and regional level, so that municipalities and regions can draw up their inventories following the same criteria based on a territorial approach. This information would enable specific scenarios for greenhouse gas emissions to be identified, for which action plans could be drawn up tailored to the socio-economic and environmental situation of each region, as well as specific sectoral objectives. In addition, monitoring carried out from a regional and local perspective allows for a better analysis of any deviation from the trajectories specified in the plans as well as the measures needed to address them;

13.

maintains that taking effective steps to monitor progress can enhance the visibility, transparency and ownership of efforts to achieve climate neutrality and that, for such effects to occur, data for monitoring progress under the European Climate Law should, where appropriate, be collected at regional, rather than national level. Proposes that the collected data be made readily available to the public on a continuous basis, and not only through regular reports, since the involvement of stakeholders in the monitoring process may be a key element in maintaining a realistic and publicly acceptable path towards the objective of climate neutrality in 2050;

14.

maintains that the Governance Regulation should lay down provisions to ensure that nationally determined contributions (NDCs) include a breakdown of regionally and locally determined contributions in order to recognise the role of sub-national authorities in achieving international climate commitments: Climate governance after 2020: a European and global perspective — a contribution to the UNFCCC COP24 by Andrew Varah Cooper;

15.

stresses that the inclusion of local and regional objectives would not only increase transparency and improve the quality and fine detail of overall efforts to monitor progress, it would also greatly benefit cooperation and synergies between all levels of government, both in terms of action and budgetary earmarking. This would significantly reduce the risk of individual policies included within the framework of European climate law having a potentially harmful outcome for the regional cohesion of Europe;

16.

stresses that tailor-made direct allocation of funds for locally and regionally adapted measures in line with the targets specific to that level would not only have a strong impact on the economy, but also have a mobilising effect on the community’s involvement in participation structures;

17.

suggests that the conclusions of the assessment of national measures, together with the Report on the State of the Energy Union, include a local and regional chapter to give more transparency and detail to efforts to monitor progress across the European Union. The CoR supports the drafting of this chapter;

18.

reiterates its call for a European climate neutrality observatory to be set up in order to help meet national obligations to submit reports within the framework of energy union governance. This should independently and publicly provide decision-makers and the general public with up-to-date information on the scientific understanding of climate change and scenarios for limiting it. At the same time, a new audit of EU skills should be carried out under the EU Skills Panorama. The observatory should also assist in mapping and monitoring the specific circumstances and vulnerabilities of Europe’s territories so as to prevent any rejection of the transition process. The European Green Deal is the new EU growth strategy and must be a central pillar of the EU’s sustainable recovery strategy after the COVID-19 pandemic, and therefore alignment of policy implementation with the growth of skills is essential for future-proof policy-making for a fair society and for a stable and growing economy;

19.

stresses that the effectiveness of public participation efforts depends not only on gathering information from all sections of society, but also on providing them with adequate information on the impact of their contribution. Sustainable solutions require the cooperation of stakeholders, not only in the operation and maintenance of systems, but also in the decision-making process. Therefore, public participation efforts that focus on one-way communication alone are not enough to promote behavioural change;

20.

advocates using renewable energy to achieve the climate objectives. The CoR does not consider nuclear power to be a sustainable technology for the future and does not approve of its increased use;

21.

points out that Europe’s local and regional authorities are part of the rich and diverse governmental and democratic structure of the EU and should be treated as such. Stresses in this regard that the involvement of local and regional authorities should not be classified as part of public participation, nor should it be limited to specific exercises. Rather, it should enable the systematic contribution of local and regional authorities throughout the policy development cycle as well as the assessment and review of current legislative bodies. Points out in this regard that the Paris Agreement recognises the important role of multilevel governance in climate policy and the need for cooperation with regions and cities and recalls that under Article 2 the Parties have undertaken to adapt public and private finance flows to the Agreement’s goals and to climate-resilient development. In connection with the Climate Law, existing and newly established reporting and review processes should provide a basis for making finance flows fully consistent with the goals of the Paris Agreement at EU and national level;

22.

points to the major problems with nuclear energy from the point of view of sustainability (with regard to both the raw materials involved and the unresolved issue of nuclear waste) and consequently recommends that the path towards achieving the climate goals be followed, mainly, by means of renewable energies instead of any increase in the use of nuclear energy, in keeping with Article 194 of the TFEU;

Brussels, 2nd July 2020.

The President of the European Committee of the Regions

Apostolos TZITZIKOSTAS

(1) Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1).

(1) Climate Neutrality as Long-term Strategy: The EU’s Net Zero Target and Its Consequences for Member States, O. Geden, F. Schenuit, August 2019.

(2) This position has been maintained by the CoR in several opinions: Energy Union governance and clean energy by Bruno Hranić; A Clean Planet for all — A European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy by Michele Emiliano; Climate governance after 2020: a European and global perspective — a contribution to the UNFCCC COP24 by Andrew Varah Cooper; and the CoR Resolution on the Green Deal adopted in December 2019.

1.10.2020

Official Journal of the European Union

C 324/74

Opinion of the European Committee of the Regions — Just Transition Fund

(2020/C 324/11)

Rapporteur-general:

Vojko OBERSNEL (HR, PES), Member of Local Executive: City of Rijeka

Reference documents:

Proposal for a regulation of the European Parliament and of the Council establishing the Just Transition Fund

COM(2020) 22 final

Amended proposal for a regulation of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund and the European Maritime and Fisheries Fund and financial rules for those and for the Asylum and Migration Fund, the Internal Security Fund and the Border Management and Visa Instrument

COM(2020) 23 final

Amended proposal for a regulation of the European Parliament and of the Council establishing the Just Transition Fund

COM(2020) 460 final

I. RECOMMENDATIONS FOR AMENDMENTS

Proposal for a Regulation of the European Parliament and of the Council establishing the Just Transition Fund

COM(2020) 22 final

Amendment 1

Recital 13

Text proposed by the European Commission

CoR amendment

In order to provide flexibility for the programming of the JTF resources under the Investment for jobs and growth goal, it should be possible to prepare a self-standing JTF programme or to programme JTF resources in one or more dedicated priorities within a programme supported by the European Regional Development Fund (‘ERDF’), the European Social Fund Plus (‘ESF+’) or the Cohesion Fund. In accordance with Article 21a of Regulation (EU) [new CPR], JTF resources should be reinforced with complementary funding from the ERDF and the ESF+. The respective amounts transferred from the ERDF and the ESF+ should be consistent with the type of operations set out in the territorial just transition plans.

In order to provide flexibility for the programming of the JTF resources under the Investment for jobs and growth goal, it should be possible to prepare a self-standing JTF programme or to programme JTF resources in one or more dedicated priorities within a programme supported by the European Regional Development Fund (‘ERDF’), the European Social Fund Plus (‘ESF+’) or the Cohesion Fund. In accordance with Article 21a of Regulation (EU) [new CPR], JTF resources could be reinforced with complementary funding from the ERDF and the ESF+. The respective amounts transferred from the ERDF and the ESF+ should be consistent with the type of operations set out in the territorial just transition plans.

Reason

The Just Transition Fund is a political proposal that should only come on top of existing cohesion budget. Most of the activities proposed to be supported by the JTF (Article 4) would be in practice already possible to finance under the Policy Objectives 1 and 2 through the ERDF and ESF+.

Amendment 2

Article 2

Text proposed by the European Commission

CoR amendment

In accordance with the second subparagraph of Article [4(1)] of Regulation (EU) [new CPR], the JTF shall contribute to the single specific objective ‘enabling regions and people to address the social, economic and environmental impacts of the transition towards a climate-neutral economy’.

Reason

The objective of the fund should clearly refer to the goals of the Paris agreement, the EU’s goal of climate neutrality by 2050 and the 2030 reduction targets.

Amendment 3

Article 3(1)

Text proposed by the European Commission	CoR amendment
1. The JTF shall support the Investment for jobs and growth goal in all Member States .	1. The JTF shall fund the social, socio-economic and environmental impact of the transition in regions or activities affected.

Reason

Self-explanatory.

Amendment 4

Article 4(2)

Text proposed by the European Commission

CoR amendment

2 . In accordance with paragraph 1, the JTF shall exclusively support the following activities:

2. In accordance with paragraph 1, the JTF shall support the following activities:

(a)	productive investments in SMEs, including start-ups, leading to economic diversification and reconversion;

(a)	productive and sustainable investments in SMEs, including start-ups, leading to economic diversification and reconversion;

(b)	investments in the creation of new firms, including through business incubators and consulting services;

(b)	investments in the creation of new firms relevant for the transition to sustainable development , including through business incubators and consulting services;

(c)	investments in research and innovation activities and fostering the transfer of advanced technologies;

(c)	investments in sustainable research and innovation activities and fostering the transfer of advanced technologies;

(d)	investments in the deployment of technology and infrastructures for affordable clean energy, in greenhouse gas emission reduction, energy efficiency and renewable energy;

(d)	investments in the deployment of technology and social infrastructures for affordable clean , safe and sustainable energy, in greenhouse gas emission reduction, energy efficiency and renewable energy;

(e)	investments in digitalisation and digital connectivity;

(e)	investments supporting the implementation of the EU Directive 2018/2001 on the promotion of the use of energy from renewable sources (Article 15.3), the EU Directive 2010/31 on the energy performance of buildings (Articles 9 and 11) and the EU Directive 2012/27 on energy efficiency (Article 14.4);

(f)	investments in regeneration and decontamination of sites, land restoration and repurposing projects;

(f)	investments in digitalisation and digital connectivity;

(g)	investments in enhancing the circular economy, including through waste prevention, reduction, resource efficiency, reuse, repair and recycling;

( g )

investments in regeneration and decontamination of sites, land restoration and repurposing projects , in accordance with the ‘polluter pays principle’ as defined in Article 2(122) of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty ;

(h)	upskilling and reskilling of workers ;

( h )

investments in enhancing the circular economy, including through waste prevention, reduction, resource efficiency, reuse, repair and recycling;

(i)	job-search assistance to jobseekers;

( i )

upskilling and reskilling of the labour force ;

(j)	active inclusion of jobseekers;

( j )

job-search assistance to jobseekers;

(k)	technical assistance.

( k )

active inclusion of jobseekers;

(l)	any other specific activities, as agreed between the relevant local and regional authorities for the territory concerned, the Member State and the European Commission, that are in line with local development strategies and contribute to the transition towards a carbon-neutral EU economy by 2050 ;

(m)	technical assistance.

Reason

—	Any investments in environmental protection should respect the rule that the cost of measures to deal with pollution should be borne by the party that caused the pollution.

—	Upskilling and reskilling should not be restricted to workers, but should also include training unemployed people, job-seekers, etc. for jobs in the green economy.

—	Ensuring greater flexibility in the choice of supported project, if the local and regional authorities in the territory concerned, the Member State and the European Commission agree.

Amendment 5

Article 5, point (a)

Text proposed by the European Commission

CoR amendment

(a)	the decommissioning or the construction of nuclear power stations;

(a)	the decommissioning the construction , or any other form of investment in nuclear power stations;

Reason

Self-explanatory.

Amendment 6

Article 5, point (d)

Text proposed by the European Commission

CoR amendment

(d)	investment related to the production, processing, distribution, storage or combustion of fossil fuels;

(d)	investment related to the extraction, production, processing, distribution, storage or combustion of fossil fuels , including the opening of new coal mines ;

Reason

The FTJ should not support the opening or reopening of coal mines, but this limitation should not be extended to other types of mining (metal, industrial minerals, ornamental rock, etc.), which is an economic activity that creates quality, long-term employment.

Amendment 7

Add a paragraph at the end of Article 5

Text proposed by the Commission	CoR amendment
	No support shall be granted to operations in a NUTS 3 region where an opening of a new coal, lignite or oil shale mine or of a peat extraction field or a reopening of a temporarily decommissioned coal, lignite or oil shale mine or of a peat extraction field is scheduled during the duration of the programme and based on a territorial just transition plan.

Reason

The objective of the support is to assist in the transition towards a carbon-neutral economy, which excludes the opening of new mines and/or peat extraction fields and the reopening of existing ones.

Amendment 8

Article 6(1), second subparagraph

Text proposed by the European Commission

CoR amendment

The Commission shall only approve a programme where the identification of the territories most negatively affected by the transition process, contained within the relevant territorial just transition plan, is duly justified, and the relevant territorial just transition plan commits to the goals of the Paris agreement, the EU’s goal of climate neutrality by 2050 and the 2030 reduction targets and is consistent with the territorial strategies referred to in Article [23] of Regulation (EU) [new CPR], the National Energy and Climate Plan of the Member State concerned and the European Pillar of Social Rights.

Amendment 9

Article 6(2)

Text proposed by the European Commission

CoR amendment

The JTF priority or priorities shall comprise the JTF resources consisting of all or part of the JTF allocation for the Member States and the resources transferred in accordance with Article [21a] of Regulation (EU) [new CPR]. The total of the ERDF and ESF+ resources transferred to the JTF priority shall be at least equal to one and a half times the amount of support from the JTF to that priority but shall not exceed three times that amount .

The JTF priority or priorities shall comprise the JTF resources consisting of all or part of the JTF allocation for the Member States and the resources that the managing authorities may decide to transfer in accordance with Article [21a] of Regulation (EU) [new CPR]. The amount of the ERDF and ESF+ resources to be transferred to the JTF priority shall not exceed one and a half time the amount of support from the JTF to that priority.

Reason

Member States should be given greater flexibility in deciding the amounts to be transferred from the ERDF and the ESF+ to the JTF. This would also limit possible decommitments in the event of low absorption capacity in the territories most affected.

Amendment 10

Add a subparagraph at the end of Article 6(2)

Text proposed by the European Commission	CoR amendment
	The Commission shall only approve transfers of ERDF and ESF+ resources to the JTF priority where the total amount of the transfer does not exceed 20 % of the operational programme’s initial ERDF and ESF+ allocation (calculated per Fund).

Reason

Aligns the legislative text with the explanatory memorandum.

Amendment 11

Article 7(1)

Text proposed by the European Commission

CoR amendment

1. Member States shall prepare, together with the relevant authorities of the territories concerned, one or more territorial just transition plans covering one or more affected territories corresponding to level 3 of the common classification of territorial units for statistics (‘NUTS level 3 regions’) as established by Regulation (EC) No 1059/2003 of the European Parliament and of the Council as amended by Commission Regulation (EC) No 868/2014 or parts thereof, in accordance with the template set out in Annex II. Those territories shall be those most negatively affected based on the economic and social impacts resulting from the transition, in particular with regard to expected job losses in fossil fuel production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity.

1. Member States shall prepare, together with the relevant authorities of the territories concerned, one or more territorial just transition plans covering one or more affected territories corresponding to level 2 of the common classification of territorial units for statistics (‘NUTS level 2 regions’) as established by Regulation (EC) No 1059/2003 of the European Parliament and of the Council as amended by Commission Regulation (EC) No 868/2014 or parts thereof, in accordance with the template set out in Annex II. Those territories shall be those most negatively affected based on the economic and social impacts resulting from the transition, in particular with regard to expected job losses in fossil fuel production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity.

Reason

Negative spillover effects of the transition will not be limited to territories at NUTS 3 level, but will most likely also affect surrounding territories. For this reason, and to simplify governance, it seems more appropriate to focus support at NUTS 2 level.

Amendment 12

Article 7(2), point (b) (new)

Text proposed by the European Commission

CoR amendment

(b)	(new) a clear commitment to a socially fair and just green transition in the implementation of the Paris agreement;

Reason

Territorial just transition plans should only be approved if they include a clear commitment to the goals of the Paris agreement, as stressed by the European Council on 18 October 2019.

Amendment 13

Article 7(2), point (c) (new)

Text proposed by the European Commission

CoR amendment

(c)	(new) a clear commitment to the objective of achieving a climate-neutral EU by 2050 and reaching its reduction targets by 2030;

Reason

Territorial just transition plans should only be approved if they include a clear commitment to the objective of achieving a climate-neutral EU by 2050 and of reaching its reduction targets by 2030, as stressed by the European Council on 12 December 2019.

Amendment 14

Article 7(2), point (c)

Text proposed by the European Commission

CoR amendment

(c)

an assessment of the transition challenges faced by the most negatively affected territories, including the social, economic, and environmental impact of the transition to a climate-neutral economy, identifying the potential number of affected jobs and job losses, the development needs and objectives, to be reached by 2030 linked to the transformation or closure of greenhouse gas-intensive activities in those territories;

(c)

Reason

All possible negative spillover effects should be properly assessed in the territorial just transition plans.

Amendment 15

Article 7(2), point (f)

Text proposed by the European Commission

CoR amendment

(f)	a description of the governance mechanisms consisting of the partnership arrangements, the monitoring and evaluation measures planned and the responsible bodies;

(f)

a description of the governance mechanisms consisting of the partnership arrangements, the monitoring and evaluation measures planned and the responsible bodies , if different from the elements already described in the programme as defined in Annex V of Regulation (EU) [new CPR]; local and regional authorities need to be fully involved in all aspects of this;

Reason

As a simplification measure, only information different from the elements already described in the programme in accordance with the ‘Template for programmes supported from the ERDF (Investment for Jobs and growth goal), ESF+, the JTF, the Cohesion Fund and the EMFF — Article 16(3)’ (Annex V of the CPR) should be provided. Furthermore, local and regional authorities need to be regarded as integral stakeholders in this process.

Amendment 16

Article 7(2), point (h)

Text proposed by the European Commission

CoR amendment

(h)

where support is provided to productive investments to enterprises other than SMEs, an exhaustive list of such operations and enterprises and a justification of the necessity of such support through a gap analysis demonstrating that the expected job losses would exceed the expected number of jobs created in the absence of the investment;

(h)	where support is provided to productive and sustainable investments to enterprises other than SMEs, a justification of the necessity of such support through a gap analysis demonstrating that the expected job losses would exceed the expected number of jobs created in the absence of the investment;

Reason

Providing an exhaustive list of operations and enterprises (large companies) in the programming phase of the JTF does not appear to be particularly feasible, and may lead to delays from the very beginning of the programming period. In addition, such an approach runs directly counter to simplification efforts, the result of which was, among other things, to abandon separate procedures applicable to major projects pursuant to Articles 100-103 of the current CPR.

Amendment 17

Article 7(2), point (i)

Text proposed by the European Commission

CoR amendment

(i)

where support is provided to investments to achieve the reduction of greenhouse gas emissions from activities listed in Annex I to Directive 2003/87/EC, an exhaustive list of operations to be supported and a justification that they contribute to a transition to a climate neutral economy and lead to a substantial reduction in greenhouse-gas emissions going substantially below the relevant benchmarks established for free allocation under Directive 2003/87/EC and provided that they are necessary for the protection of a significant number of jobs;

(i)

where support is provided to investments to achieve the reduction of greenhouse gas emissions from activities listed in Annex I to Directive 2003/87/EC, a justification that the operations to be supported contribute to a transition to a climate neutral economy and lead to a substantial reduction in greenhouse-gas emissions going substantially below the relevant benchmarks established for free allocation under Directive 2003/87/EC and provided that they are necessary for the protection of a significant number of jobs;

Reason

Providing an exhaustive list of operations in the programming phase of the JTF does not appear to be particularly feasible, and may lead to delays from the very beginning of the programming period.

Amendment 18

Article 8a (new)

Text proposed by the European Commission

CoR amendment

Article 8a

1. A Just Transition Platform (hereinafter referred to as the ‘Platform’) shall be set up, under the supervision and direct management of the European Commission, in order to enable bilateral and multilateral exchanges of experience on lessons learnt and best practices across all affected sectors.

2. The Platform shall comprise two strands:

(a)

technical working groups, addressing concrete challenges in the regions concerned, and facilitating exchanges of experience and best practices on the preparation of territorial just transition plans and individual operations. The technical working groups, which should include local and regional authorities, shall be set up according to the operational needs of the JTF, taking into account sectoral coverage of the operations supported.

The technical working groups shall cooperate closely with the InvestEU Advisory Hub established in accordance with Article 20 of Regulation (EU) [new InvestEU programme] and relevant services of the European Investment Bank to ensure that local and regional authorities have the necessary technical and practical knowledge to access funding available via the InvestEU programme as well as via the EIB.

(b)	an Annual Forum of Just Transition Regions (hereinafter referred to as the ‘Forum’), co-organised with the European Committee of the Regions. The Forum shall enable the coordination of policy orientations and their transposition into operational activities of the technical working groups.

3. The Commission shall establish the detailed arrangements concerning governance mechanisms, membership, operation and budget of the Platform. A balanced participation of all levels of government shall be ensured.

4. The Platform’s operational costs shall be covered from the technical assistance resources pursuant to Article 3(2), third subparagraph.

Reason

Practical provisions on the set-up of the Just Transition Platform should be added to provide more clarity on its objectives and operation.

Amendment 19

Article 10 (4)

Text proposed by the European Commission	CoR amendment
4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.	4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State and conduct stakeholder consultations in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

Amended proposal for a Regulation of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund and the European Maritime and Fisheries Fund and financial rules for those and for the Asylum and Migration Fund, the Internal Security Fund and the Border Management and Visa Instrument

COM(2020) 23 final

Amendment 20

Article 21a (1)

Text proposed by the European Commission

CoR amendment

The amount of resources available for the JTF under the Investment for jobs and growth goal in accordance with Article [3] of Regulation (EU) [JTF Regulation], shall be complemented with resources from the ERDF, the ESF+ or a combination thereof, of the category of regions where the concerned territory is located. The total of the ERDF and the ESF+ resources transferred to the JTF shall be at least one and half times the amount of JTF support, but shall not exceed three times the amount of that support. In no case shall the resources transferred from either the ERDF or the ESF+ exceed 20 % of the respective ERDF and ESF+ allocation to the Member State concerned. (…)

The amount of resources available for the JTF under the Investment for jobs and growth goal in accordance with Article [3] of Regulation (EU) [JTF Regulation], shall be complemented with resources from the ERDF, the ESF+ or a combination thereof, of the category of regions where the concerned territory is located , by means of a voluntary transfer . The total of the ERDF and the ESF+ resources transferred to the JTF shall be at least half the amount of JTF support, but shall not exceed one and a half time the amount of that support. In no case shall the resources transferred from either the ERDF or the ESF+ exceed 20 % of the respective ERDF and ESF+ allocation to the Member State concerned. (…)

Reason

Member States should be given greater flexibility in deciding the amounts to be transferred from the ERDF and the ESF+ to the JTF. This would limit possible decommitments in the event of low absorption capacity in the territories most affected by the transition.

Amendment 21

Article 59(3a) (new)

Text proposed by the European Commission

CoR amendment

3a. Operations supported by the JTF in accordance with Regulation (EU) [JTF Regulation] shall repay the support from the JTF if, within ten years of the final payment to the Member State that received the support, a new coal, lignite or oil shale mine or peat extraction field is opened or a temporarily decommissioned coal, lignite or oil shale mine or peat extraction field is reopened in the territory where the support from the JTF was utilised.

Reason

The objective of the support is to assist regions in their transition towards a carbon-neutral economy, which excludes the opening of new mines and/or peat extraction fields and the reopening of temporarily decommissioned ones.

II. POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

welcomes the establishment of the Just Transition Fund, which will be a key tool in supporting the regions most affected by the transition towards climate neutrality;

welcomes the fact that the proposal for the Just Transition Fund has taken on board key CoR recommendations set out in its opinion on socioeconomic structural change in Europe’s coal regions (1);

welcomes the fact that the fund will provide support to all Member States, but will still be targeted only at the most affected regions. Moreover, to ensure that the fund is properly concentrated and effective, and to establish the minimum aid intensity, only the population of the affected regions should be taken into account;

welcomes the proposed EUR 11 270 459 000 of appropriations (in current prices) for the Just Transition Fund from the Multiannual Financial Framework for 2021-2027 and the additional EUR 32 803 000 000 (in current prices) from the European Recovery Instrument as a massive boost to deliver on the objective of the Just Transition Fund; notes with concern that the figures expressed in current prices may lead to less transparency and comparability of allocations between the MFF headings; calls on the Council to include this as real, additional appropriations in the negotiations on the Multiannual Financial Framework 2021-2027;

notes with concern that the additional resources financed under the European Recovery Instrument, leading to additional commitments in years 2021-2024, will put an extreme pressure to managing authorities and final beneficiaries to prepare, implement and spend almost 75 % of the total allocation within the first four years of the new programming period;

welcomes the European Commission’s initiative to flank the transition to a climate-neutral, climate-sensitive and ecologically sustainable economy by 2050 with targeted measures and to support the areas most affected by the transition to climate neutrality in a special way and with additional resources; underlines that these additional funds must not under any circumstances be taken from the cohesion policy budget; highlights that a strong budget for cohesion policy must remain the main priority to support climate action at territorial level;

asks the European Commission to place the new Just Transition Fund under Heading 2 (Cohesion and Values) of the MFF 2021-2027 instead of Heading 3 (Natural Resources and Environment), and reiterates its rejection of the envisaged cuts to cohesion policy; recalls the CoR’s call that all of the ESIF national co-financing is excluded from the calculations on the Stability and Growth Pact; considers that the same should be applicable for the Just Transition Fund;

highlights the particular difficulties for regions with a high dependence on fossil fuels with isolated energy systems, such as outermost regions; underline that the development of the energy mix, in relation to the territory, water, waste and energy, is the key to its energy strategy towards a carbon neutral economy;

takes note of the adjusted European Commission’s estimate that the three pillars of the Just Transition Mechanism will lead to an investment of EUR 150 billion by 2030. The CoR nonetheless has concerns about the expected leverage rate and the feasibility of private investments for some of the possible projects;

10.

requests that no support from JTF or JTM should be granted to investments in NUTS-3 regions where an opening of a new coal, lignite or oil shale mine or of a peat extraction field or a reopening of a temporarily decommissioned coal, lignite or oil shale mine or of a peat extraction field has been granted public authorisation;

11.

welcomes that the payment of public sector loans should be limited to projects which achieve measurable impact in addressing social, economic or environmental challenges following the transition towards a climate neutral economy;

12.

points out that local and regional authorities also need to finance projects in the process towards a climate-neutral economy, which do not generate a sufficient stream of own revenue and for which they do not receive support under any other Union programmes; welcomes in this context the proposal for a regulation on the public sector loan facility under the Just Transition Mechanism which supports public sector entities in their investment needs resulting from the transition challenges described in the just transition plans;

13.

notes the varying experience and uptake of LRAs across the EU in using EIB financial mechanisms; therefore, to ensure the success of pillar 3 of the Just Transition Mechanism, calls on the European Commission to ensure that respective Member States provide sufficient practical and technical assistance to those LRAs wishing to use the respective EIB financial mechanisms;

14.

takes note of the alignment of the scope of support of the Just Transition Fund, the ERDF and the ESF+, as the majority of activities supported by the Just Transition Fund can be also financed within the objectives under the ERDF and ESF+;

15.

is concerned about the delay the JTF may cause to the implementation of the main programmes of cohesion policy; is also concerned about the complexity and red tape that management of this new fund could create for the management of the main programmes of cohesion policy;

16.

finds it regrettable that the Commission’s proposal aims to establish programmes at NUTS 3 level instead of NUTS 2, which is the level at which the main programmes of cohesion policy are implemented. This proposal runs counter to the notion of functional areas, which are not necessarily identical to the administrative NUTS 3 areas. The CoR underlines that only one corresponding territorial plan at NUTS 2 level should be required;

17.

calls for the scope of support of the Just Transition Fund to be expanded so that, in agreement with the European Commission and the Member States, local and regional authorities can include additional eligible projects in their territorial just transition plans. The CoR also requests that unemployment, particularly youth unemployment, be taken into account as a key indicator for the distribution of the resources allocated to the fund;

18.

calls for local and regional stakeholders to be closely involved in the preparation of the territorial just transition plans, given that management of the JTF will be shared and ERDF and ESF+ resources are closely linked to JTF support;

19.

asks the Commission to give more guidance on how it intends to assist managing authorities and regions in drafting their territorial just transition plans, given that the proposal for the JTF regulation, including its annexes, may still be subject to substantial modifications. The CoR warns against additional delays in the preparation of those programmes where JTF support is conditional on ERDF and ESF+ support due to the obligation of approval of territorial just transition plans;

20.

stresses that affected territories should not have to provide exhaustive lists in their territorial just transition plans of potential companies and/or operations to which they might grant support, as this could cause delays in their adoption and might lead to unnecessary administrative burdens on managing authorities. The CoR points out in this respect that a separate procedure for the adoption of major projects has been omitted from the Commission’s proposal for the new CPR and that such a list of beneficiaries and/or operations could reverse this again;

21.

calls for transfers to the JTF to be capped at 20 % of the operational programme’s initial ERDF and ESF+ allocations. The CoR suggests giving managing authorities more flexibility by making transfers on a voluntary basis pursuant to Article 6 (2) of the draft regulation with a maximum amount of up to 1,5 times the amount of support from the JTF and only with the consent of the local and regional authorities involved;

22.

underlines the importance of avoiding unnecessary administrative burdens by clearly envisaging an ex ante impact assessment of the programming and monitoring scheme for the JTF;

23.

notes that investment priorities for the JTF will be outlined in respective Country Reports, forming part of the European Semester process; highlights that regions are still not formally associated with the process and believes that a stronger role for the local and regional authorities needs to be assigned in order to deliver on the objectives of the JTF;

24.

welcomes the fact that the Regulation defines specific elements that need to be included in the territorial just transition plans. The CoR calls on the legislative authority to add to those elements a clear commitment to the goals of the Paris agreement, to the EU’s goal of climate neutrality by 2050 and to its reduction targets for 2030;

25.

points out that the Platform for Coal Regions in transition was initially created as a platform focusing on coal mining regions where coal mining activities were still on-going, and that the plan was for the scope of the initiative to be extended to all carbon-intensive regions in the second step. The CoR stresses that the regions facing transition will need to address similar obstacles, and that the new platform should therefore provide advisory services, assist managing authorities and beneficiaries with their project ideas and practical implementation on the ground, and also serve as an exchange of good practices;

26.

welcomes in this respect the creation of the Just Transition Platform, which should be built on the positive experiences with the carbon-intensive regions, and other regions that have successfully managed to move from fossil fuels to clean energy sources. The CoR underlines that this platform should make sure that all relevant Commission services and the EIB work closely together to address structural change in the affected regions. The CoR undertakes to engage closely in the operation of the Just Transition Platform, in particular by co-organising an Annual Forum of Just Transition Regions with the European Commission;

27.

stresses that EU provisions on State aid need to allow for flexibility when eligible regions in transition want to attract private investment. The CoR reiterates its calls on the Commission to also take account, when drawing up the new guidelines, of the problems linked to structural change in the affected regions and to ensure that those regions have sufficient flexibility to enable them to implement their projects in a socially and economically viable way;

28.

highlights that support via the Just Transition Fund for productive investments in enterprises other than SMEs should not be limited to those areas that are eligible for State aid under Article 107(3)(a) and (c) of the TFEU under the existing State aid rules. State aid law should instead allow all areas benefiting from the Just Transition Fund to counteract the threat of job losses effectively at an early stage. This should also be ensured by adapting the General Block Exemption Regulation accordingly;

29.

emphasises that the areas most affected by the transition to a climate-neutral economy should be given the opportunity to actively counteract the associated structural change as early as possible. The European Committee of the Regions therefore advocates that future adjustments to State aid law, e.g. by means of a new guideline from the European Commission based on Article 107(3)(b) or (c) TFEU, should ensure that aid is allowed regardless of the status of the assisted area under existing rules;

30.

acknowledges the role of smart specialisation strategies as one of key delivery tools for the new JTF;

31.

underlines that the European Committee of the Regions has conducted a questionnaire to analyse the changes needed to State aid regulations in relation to the structural change in Europe’s coal regions (2); highlights that the conclusions stressed that the transition process should be backed up by State aid in order to attract companies which could offset job-losses and losses in value creation and that State aid rules should allow for more flexibility, particularly as regards to the investment in energy infrastructure, energy efficiency, energy-related investment and renewable energy;

32.

welcomes the fact that the legislative proposal is based on the cohesion-centred Article 175 of the Treaty on the Functioning of the European Union, and considers that the proposal clearly outlines its European added value and is in compliance with the principles of subsidiarity and proportionality.

Brussels, 2 July 2020.

The President of the European Committee of the Regions

Apostolos TZITZIKOSTAS

(1) Opinion of the European Committee of the Regions — Socioeconomic structural change in Europe’s coal regions (OJ C 39, 5.2.2020, p. 58).

(2) https://cor.europa.eu/en/news/Pages/report-coal.aspx

		ISSN 1977-091X
Official Journal of the European Union		C 324

English edition	Information and Notices	Volume 63 1 October 2020

Contents		page
	I Resolutions, recommendations and opinions
	RESOLUTIONS
	Committee of the Regions
	Interactio – Hybrid – 139th CoR plenary session, 30.6.2020-2.7.2020
2020/C 324/01	Resolution of the European Committee of the Regions — Revised Multiannual Financial Framework and European Sustainable Investment Plan	1
2020/C 324/02	Resolution of the European Committee of the Regions — The European Committee of the Regions’ priorities for 2020-2025 — Europe closer to the people through its villages, cities and regions	8
2020/C 324/03	Resolution of the European Committee of the Regions — the European Committee of the Regions’ proposals in view of the European Commission Work Programme for 2021	16
	OPINIONS
	Committee of the Regions
	Interactio – Hybrid – 139th CoR plenary session, 30.6.2020-2.7.2020
2020/C 324/04	Opinion of the European Committee of the Regions — Implementation of Free Trade Agreements (FTAs): the regional and local perspective	21
2020/C 324/05	Opinion of the European Committee of the Regions — Fitness check of the Water Framework Directive, Groundwater Directive, Environmental Quality Standards Directive and Floods Directive	28
2020/C 324/06	Outlook opinion of the European Committee of the Regions — The future of EU Clean Air Policy in the framework of the zero-pollution ambition	35
2020/C 324/07	Opinion of the European Committee of the Regions — Towards a Roadmap for Clean Hydrogen — the contribution of local and regional authorities to a climate-neutral Europe	41
2020/C 324/08	Opinion of the European Committee of the Regions — Stepping up EU action to protect and restore the world’s forests	48

	III Preparatory acts
	Committee of the Regions
	Interactio – Hybrid – 139th CoR plenary session, 30.6.2020-2.7.2020
2020/C 324/09	Opinion of the European Committee of the Regions — The services package: An updated view from Europe’s local and regional authorities	53
2020/C 324/10	Opinion of the European Committee of the Regions — European Climate Law: establishing the framework for achieving climate neutrality	58
2020/C 324/11	Opinion of the European Committee of the Regions — Just Transition Fund	74