(1)

The technical screening criteria set out in Commission Delegated Regulation (EU) 2021/2139 (2) cover severaleconomic sectors and activities that have a potential to contribute to the Union climate change mitigation and climate change adaptation objectives. Those economic sectors and activities were chosen because of their share in overall greenhouse gas emissions, and their proven potential for avoiding the production of greenhouse gas emissions, reducing such emissions, or removing such emissions. In addition, those economic sectors and activities have a proven potential to enable such avoidance, reduction and removal for other economic sectors and activities, or to ensure long-term storage of such emissions for other sectors and activities.

(2)

The total energy use accounts for approximately 75 % of direct greenhouse gas emissions in the Union. Thus, the energy sector has a crucial role in continuing to reduce greenhouse gas emissions. The technical screening criteria laid down in Delegated Regulation (EU) 2021/2139 therefore cover a wide range of economic sectors and activities related to the energy supply chain, ranging from electricity or heat generation from different sources, through transmission and distribution networks to storage, as well as heat pumps and the manufacture of biogas and biofuels. However, Delegated Regulation (EU) 2021/2139 does not contain technical screening criteria for economic activities in the fossil gas and nuclear energy sectors, despite their potential to contribute to the decarbonisation of the Union’s economy.

(3)

As set out in Commission Communication of 21 April 2021 (‘EU Taxonomy, Corporate Sustainability Reporting, Sustainability Preferences and Fiduciary Duties: Directing finance towards the European Green Deal’) and in Commission Communication of 6 July 2021 (‘Strategy for Financing the Transition to a Sustainable Economy’), theestablishment of technical screening criteria for energy generation from fossil gas was postponed in view of the need for further technical assessment, notably on the transitional role of fossil gas in the decarbonisation of the economy (3). The establishment of technical screening criteria for nuclear energy generation activities was also postponed awaiting an in-depth expert assessment, launched in 2020, of whether the nuclear life-cycle, and notably nuclear waste, could be considered compatible with the requirement, laid down in Article 17 of Regulation (EU) 2020/852, that an activity can do no significant harm to other environmental objectives. In the light of those assessments, it is necessary to recognise that the fossil gas and nuclear energy generation activities can contribute to the decarbonisation of the Union’s economy.

(4)

In accordance with Article 10(2) of Regulation (EU) 2020/852 covering transitional economic activities, it is necessary to lay down technical screening criteria for electricity generation, high-efficiency co-generation of power and heat/cool, and production of heat/cool in efficient district heating and cooling systems from fossil gas, where greenhouse gas emissions from fossil gas are below an appropriate threshold. In addition, it is necessary to lay down technical screening criteria for the use of fossil gas in electricity generation, high-efficiency co-generation of power and heat/cool, and production of heat/cool in efficient district heating and cooling systems, where such electricity generation, high-efficiency co-generation of power and heat/cool, and production of heat/cool in efficient district heating and cooling systems do not yet comply with that appropriate threshold, as in addition to the use of climate-neutral energy and more investments in already low-carbon economic activities and sectors, the transition requires substantial reductions in greenhouse gas emissions in other economic activities and sectors for which there are no technologically and economically feasible low-carbon alternatives. All those economic activities should be qualified as transitional under Article 10(2) of Regulation (EU) 2020/852, given that technologically and economically feasible low-carbon alternatives may not yet be commercially available at a sufficient scale to cover the energy demand in a continuous and reliable manner. In particular, for electricity generation, it is appropriate to provide for an alternative approach to directly limiting the greenhouse gas emissions. Under this alternative approach, that should deliver similar results over a 20 years period, facilities may reach such results by limiting the number of hours in operation or by advancing the switch to renewable or low-carbon gases to an earlier date. The technical screening criteria should facilitate an accelerated phase-out from more emissions-intensive energy sources, including solid fossil fuels. In addition, in order to fulfil the requirements laid down in Article 10(2), first subparagraph, points (a), (b) and (c), of Regulation (EU) 2020/852, the technical screening criteria for the use of fossil gas should also ensure that robust evidence is available to demonstrate that the same energy capacity cannot be generated with renewable sources, and that effective plans are put in place for each facility, in line with the best performance in the sector, to switch entirely to renewables or low carbon gases by a specific date. Finally, the technical screening criteria should provide for a time-limited recognition of the contribution of those activities to decarbonisation.

(5)

Renewables will play a fundamental role in meeting the climate and environmental goals of the Union. In that light, investments in renewables need to scale-up to meet the needs of the energy market of the Union for more renewable and clean energy.

(6)

Nuclear energy-related activities are low-carbon activities, they do not constitute energy from renewable sources as defined in Article 2, second subparagraph, point (1) of Directive (EU) 2018/2001 of the European Parliament and of the Council (4), and as referred to in Article 10(1), point (a) of Regulation (EU) 2020/852 and do not fall under the other categories of economic activities listed in points (b) to (i) of that provision. Such nuclear energy related economic activities should be qualified under Article 10(2) of Regulation (EU) 2020/852, in the absence of technologically and economically feasible low-carbon alternative at a sufficient scale to cover the energy demand in a continuous and reliable manner. In addition, in the Final Report of the Technical Expert Group on Sustainable Finance from March 2020 (5), it was stated that ‘nuclear energy generation has near to zero green-house gas emissions in the energy generation phase’ and ‘evidence on the potential substantial contribution of nuclear energy to climate change mitigation objectives was extensive and clear’. Moreover, a number of Member States’ plans include nuclear energy along with renewable energy in the energy sources to be used to meet climate targets, including the 2050 decarbonisation objective set out in Regulation (EU) 2021/1119 of the European Parliament and of the Council (6). Finally, by providing a stable baseload of energy supply, nuclear energy facilitates the deployment of intermittent renewable sources and does not hamper their development, as required by Article 10(2), point (b), of Regulation (EU) 2020/852. Nuclear energy related activities should therefore be considered as complying with Article 10(2) of Regulation (EU) 2020/852.

(7)

Scientific review conducted by experts (7) concluded that technical screening criteria for nuclear energy related economic activities should ensure that no significant harm is done to other environmental objectives due to potential risks arising from the long-term storageand final disposal of nuclear waste. Those technical screening criteria should therefore reflect the highest standards of nuclear safety, radiation protection and radioactive waste management, building upon requirements laid down in the Treaty establishing the European Atomic Energy Community (‘Euratom Treaty’) and in legislation adopted under that Treaty, and in particular in Council Directive 2009/71/Euratom (8). That Directive contains a high-level nuclear safety objective covering all stages of the life-cycle of each nuclear installation, including the siting, design, construction, commissioning, operation and decommissioning of such installations. In particular, that Directive calls for significant safety enhancements in the design of new reactors, including the so-called Generation III+ reactors, for which state of the art knowledge and technology should be used, taking into account the latest international safety requirements. Those requirements provide for an effective implementation of the nuclear safety objective, including the application of the defence-in-depth principle and of an effective safety culture. Those requirements ensure that the impact of extreme human-made and natural hazards, including earthquakes and floods, is minimised and that accidents, abnormal operations and failures or loss of control systems are prevented, inter alia, by protective structures or back-up cooling and electricity supply systems.

(8)

Accident-tolerant fuel for nuclear power plants which provides additional protection against accidents resulting from structural damages to fuel or reactor components has become available in the market. In order to take into account those recent technological developments, the use of that type of fuel should be set out as a requirement in the technical screening criteria, taking into account its licensing within the Union.

(9)

Worldwide, research and development efforts are ongoing to develop new nuclear reactor technologies that use, among others, closed fuel cycles or fuel self-breeding concepts and that minimise the production of high-level radioactive waste (‘Generation IV reactors’). Although those Generation IV reactors are not yet commercially viable, technical screening criteria should be laid down for such reactors in light of their potential contribution to the objective of decarbonisation and minimisation of radioactive waste.

(10)

Nuclear energy is part of the future energy sources in a number of Member States, as part of their decarbonisation efforts. The scenarios assessed by the Commission lead to a decarbonised energy system based on renewables to a very large extent and on nuclear energy with a stable installed capacity compared to current levels. As the nuclear installations being currently exploited age, they need safety upgrades to extend operational life as well as newly built nuclear installations to replace obsolete installations. This is a continuous process that should ensure the availability of the necessary capacity for the decarbonisation of the energy system by 2050 and beyond this date as needed. Accordingly, significant investments in nuclear energy will be needed throughout the period until 2050 and beyond. It is necessary to ensure that new nuclear power plants use the most advanced solutions resulting from technological progress. The technical screening criteria for such new nuclear power plants should therefore provide for regular reviews of each investment project, and for technical parameters that correspond to the best-available technology in view of the outcomes of sustained research and development efforts and the continuous improvements of technologies. Specific dates should be defined to ensure phasing in of new technologies compatible with sustainable decarbonisation as soon as they become available.

(11)

Annex II to the Euratom Treaty and Council Regulation (Euratom) No 2587/1999 (9) establish thresholds and other requirements for the notification to the Commission of investments in nuclear energy. To ensure, for the purpose of meeting the goals of the taxonomy, the highest possible regard to the principles and requirements of the Euratom legislation, including the nuclear safety objective, such investments should be subject to an opinion from the Commission, irrespective of whether Annex II to the Euratom Treaty and Regulation (Euratom) No 2587/1999 require any notification. For the same reason, all issues concerning the application of Article 10(2) and Article 17 of Regulation (EU) 2020/852 and the technical screening criteria identified by the Commission in its opinion should be satisfactorily addressed.

(12)

In view of the long lead times for investments in new nuclear generation capacity, extending the service time of selected existing nuclear installations can support the decarbonisation of the energy system in the near to medium term. The technical screening criteria for such extensions should, however, require modifications and safety upgrades to ensure that those nuclear installations comply with the highest achievable safety standards and with all safety objective requirements laid down in legislation adopted under the Euratom Treaty.

(13)

In the light of the expected technological and scientific developments, investments in the construction and safe operation of new nuclear installations using best available technologies and approved by an appropriate date by Member States’ competent authorities in accordance with applicable national law should be subject to technical screening criteria and to time-limits that will encourage the development and future use of Generation IV reactors with closed fuel cycle or fuel self-breeding once they become commercially available. These time-limits should be appropriately reviewed in light of progress in the development of such technologies.

(14)

The technical screening criteria related to climate change mitigation or climate change adaptation objectives should ensure that economic activities do not cause significant harm to any of the other environmental objectives. Specifically for nuclear energy related economic activities, it is necessary to ensure that the long term disposal of waste does not cause significant and long-term harm to the environment, as referred to in Article 17(1), point (d)(iii), of Regulation (EU) 2020/852. It is therefore appropriate to set out in the technical screening criteria specific requirements for a radioactive waste management fund and a nuclear decommissioning fund, which can be combined, in line with the principle that waste generators should be responsible for the cost of managing it, and to require operational final disposal facilities for all radioactive waste, which should prevent any export of radioactive waste for disposal in third countries. In several Member States, low and intermediate level radioactive waste is currently being disposed of in near-surface disposal facilities already, and substantial experience and know-how in waste management have been accumulated during decades of operating those near-surface disposal facilities. For high-level radioactive waste and spent fuel, deep geological disposal represents the state of the art solution that is broadly accepted in the expert community worldwide as the safest and the most sustainable option for the end point of the management of high-level radioactive waste and spent fuel considered as waste. Member States, while retaining responsibility for their policies in respect of the management of their spent fuel and low, intermediate or high-level radioactive waste, should include planning and implementation of disposal options in their national policies, in particular under the national programmes for the management of spent fuel and radioactive waste, covering all types of spent fuel and radioactive waste and all stages of spent fuel and radioactive waste management from generation to disposal. The national programmes’ content is specified in Council Directive 2011/70/Euratom (10) and includes key performance indicators to monitor progress transparently. The Member States have to report regularly on the progress of implementation of the national programmes to the Commission. Reporting from Member States from 2021 demonstrates that substantial progress is made in the realisation of the first deep geological disposal facilities on the Union territory. Realistic solutions are becoming available for Member States to develop and operate such facilities by 2050. Therefore, the inclusion of a corresponding requirement in the technical screening criteria ensures that no significant harm is caused to the environment.

(15)

It is necessary that non-financial and financial undertakings provide investors with a high degree of transparency concerning their investments in fossil gas and nuclear energy generation activities for which technical screening criteria should be laid down. To provide that transparency, specific disclosure requirements for non-financial and financial undertakings should be laid down. In order to ensure comparability of the information disclosed to investors, that information should be presented in the form of a template that indicates clearly the proportion of fossil gas and nuclear energy activities in the denominator and, where appropriate, the numerator of key performance indicators of those undertakings. In order to provide a high degree of transparency to investors in financial products referred to in Article 5 and Article 6 of Regulation (EU) 2020/852 concerning exposures to fossil gas and nuclear energy activities, for which technical screening criteria are laid down, the Commission will amend or propose to amend the disclosure framework pertaining to those financial products as appropriate to provide for full transparency over the whole life of those financial products. To ensure that such information is clearly identified by end-investors, the Commission will consider amending the requirements on the financial and insurance advice given by distributors.

(16)

To enhance investor confidence, compliance with the technical screening criteria related to fossil gas activities should be verified by an independent third party. To ensure an impartial and diligent verification of compliance, the independent third-party should have the resources and expertise to perform that verification, be independent to avoid any conflict of interest with the owner or the funder, and should not be involved in the development or operation of such fossil gas activities. In addition to the verification mechanism, financial and non-financial undertakings may be subject to specific verification requirements provided in other Union legislation on sustainable finance that cover compliance with the technical screening criteria. In accordance with Article 26(1), point (c), of Regulation (EU) 2020/852, the Commission should review the provisions required for setting up verification mechanisms of compliance with the criteria set out in that Regulation.

(17)

The fossil gas and nuclear energy sectors are characterised by rapid technological development. It is therefore necessary to review the technical screening criteria covering energy generation activities in those sectors regularly, as required by Article 19(5) of Regulation (EU) 2020/852. In addition, based on the conditions laid down in Article 10(2) of Regulation (EU) 2020/852, such review should cover the appropriateness of the periods of time laid down in the technical screening criteria.

(18)

Delegated Regulation (EU) 2021/2139 and Commission Delegated Regulation (EU) 2021/2178 (11) should therefore be amended accordingly. The amendments to Delegated Regulation (EU) 2021/2139 and Delegated Regulation (EU) 2021/2178 do not mandate any investments, but are intended to help financial markets and investors to identify, subject to strict conditions, relevant gas and nuclear related activities needed for the transition of the Member States’ energy systems towards climate neutrality in line with Union climate goals and commitments.

(19)

The amendments to Delegated Regulation (EU) 2021/2139 and Delegated Regulation (EU) 2021/2178 laid down in this Delegated Regulation are closely linked. In order to ensure coherence between those provisions, which should enter into force at the same time to facilitate a comprehensive view of the legal framework for stakeholders and to facilitate the application of Regulation (EU) 2020/852, it is necessary to include those provisions in a single Regulation.

(20)

It is necessary to provide non-financial and financial undertakings with sufficient time to assess whether their economic activities related to fossil gas and nuclear energy comply with the technical screening criteria laid down in this Regulation, and to report on the basis of that assessment in accordance with Delegated Regulation (EU) 2021/2178. The date of application of this Regulation should therefore be deferred to 1 January 2023,

(1)

the following Article 2a is inserted:

(2)

Annex I is amended in accordance with Annex I to this Regulation;

(3)

Annex II is amended in accordance with Annex II to this Regulation.

(1)

in Article 8, the following paragraphs 6, 7 and 8 are added:

(2)

the text set out in Annex III to this Regulation is added as Annex XII.

(1)

Council Regulation (EU) 2022/109 (2) lays down quotas for 2022.

(2)

According to the information received by the Commission, catches of the stock of Greenland halibut in Norwegian waters of 1 and 2 by vessels flying the flag of or registered in a Member State of the European Union have exhausted the quota allocated for 2022.

(3)

It is therefore necessary to prohibit certain fishing activities for that stock,

(1)

Due to the pandemic of COVID-19 and the measures put in place by the Member States to address it, administrative difficulties have been encountered in all Member States with the planning and execution of timely on-the-spot checks to the required number. Those difficulties risk delaying the performance of checks and the ensuing payment of aid. At the same time, farmers are vulnerable to the economic disruptions caused by the pandemic and experience financial difficulties and cash-flow problems.

(2)

In view of the unprecedented nature of those circumstances, the Commission adopted Commission Implementing Regulations (EU) 2020/532 (4) and (EU) 2021/725 (5) to alleviate those difficulties by derogating from different Implementing Regulations applicable in the area of the common agricultural policy as regards certain administrative and on-the-spot checks in terms of their timing and number. Considering the prolongation of the difficulties due to continuation of the pandemic of COVID-19 in 2022, it is appropriate to provide for similar measures also in year 2022.

(3)

Commission Implementing Regulation (EU) No 809/2014 (6) lays down rules on, inter alia, the timing of the on-the-spot checks and the control rates of certain on-the-spot checks within the integrated system, including for animal aid schemes. In addition, that Regulation contains rules on on-the-spot checks relating to the eligibility criteria, commitments and other obligations in respect of livestock aid applications and payment claims under animal-related support measures, control rates for non-area-related and non-animal-related rural development measures and minimum control rates relating to cross-compliance.

(4)

Articles 24(4), 48(5), 49(1), 52(1), 60(2) and 71(3) of Implementing Regulation (EU) No 809/2014 lay down certain rules that the competent authority is to observe to carry out administrative or on-the-spot checks. In view of the circumstances caused by the pandemic of COVID-19, it is appropriate to encourage the performance of these checks with remote sensing and the use of new technologies such as unmanned aircraft systems, geotagged photos, global navigation satellite system (GNSS) receivers combined with the European Geostationary Navigation Overlay Service (EGNOS) and Galileo, data captured by the Copernicus Sentinels satellites and other relevant documentary evidence to be used for checking compliance with eligibility criteria, commitments or other obligations for the aid scheme or support measure concerned, as well as compliance with the requirements and standards relevant for cross-compliance.

(5)

Articles 26(4) and 42(1) of Implementing Regulation (EU) No 809/2014 contain rules on on-the-spot checks to verify that all eligibility criteria, commitments and other obligations are fulfilled and cover all animals for which aid applications or payment claims have been submitted under the animal aid schemes or animal-related support measures to be checked. In view of the current situation, it is appropriate to provide that where Member States are not in a position to carry out those on-the-spot checks as required by those provisions and the alternative evidence is not available, Member States may decide to carry those checks in respect of claim year 2022 or calendar year 2022 at any time of the year, in so far that they still allow the checking of the eligibility conditions.

(6)

Several obligations pursuant to Regulation (EU) No 1306/2013 in relation to cross-compliance and Regulation (EU) No 1307/2013 of the European Parliament and of the Council (7) in relation to animal-related aid schemes and support measures rely on specific and differentiated time frames for their fulfilment and consequently require the on-the-spot checks to be carried out within those frameworks. The measures Member States put in place to address the pandemic of COVID-19 affect the feasibility of performing the required on-the-spot-checks accurately and within the time limit corresponding to those obligations. Some types of checks may also not be possible to be carried out with the use of new technologies, replacing the visits on the farm. It is therefore necessary, in relation to certain checks to be carried out in 2022, to derogate from Articles 30 to 33, 40a, 50, 52 and Article 68(1) of Implementing Regulation (EU) No 809/2014 and to reduce the minimum rate of the on-the-spot checks compared to the normal control rates for area and animal-related aid schemes and support measures, rural development measures other than those under the integrated administration and control system and cross-compliance obligations, respectively.

(7)

In order to maintain the preventive effect of checks, the obligation provided for under Article 35 and Articles 50(5) and 68(4) of Implementing Regulation (EU) No 809/2014 to increase the control rates due to significant non-compliances detected during the checks carried out the previous year needs to be maintained for claim year 2022. Significant non-compliances found during the on-the-spot checks in 2021 should require an increase in the level of the on-the-spot checks for year 2022. Therefore, Member States which, by application of Article 35 or Articles 50(5) or 68(4) of that Regulation, are under an obligation to increase the control rate in claim year 2022 and decide to apply the reduced control rates provided for in this Regulation, should apply those increases on top of the reduced control rates provided for in this Regulation.

(8)

Commission Implementing Regulations (EU) No 180/2014 (8) and (EU) No 181/2014 (9) provide for control rates for checks of specific measures for agriculture in the outermost regions of the Union and the smaller Aegean islands. Due to the measures put in place to address the pandemic of COVID-19 that affect as well the outermost regions of the Union and the smaller Aegean islands, it is appropriate to derogate from those Regulations by extending the possibility to use new technologies as alternative sources of evidence in relation to checks and adapting control rates of on-the-spot checks for the year 2022. Nevertheless, in order to maintain the preventive effect of checks under Implementing Regulations (EU) No 180/2014 and (EU) No 181/2014, the obligation to increase the control rate in accordance with Article 59(5) of Regulation (EU) No 1306/2013 should be maintained. Therefore, Member States which, by application of Article 59(5) of Regulation (EU) No 1306/2013, are under an obligation to increase the control rate in claim year 2022 and decide to the reduced control rates provided for in this Regulation, should apply those increases on top of those reduced control rates.

(9)

Article 24 of Commission Implementing Regulation (EU) 2017/892 (10) provides that Member States are to check, including on-the-spot, the recognition criteria of producer organisations or associations of producer organisations in the fruit and vegetables sector. Due to the measures put in place to address the pandemic of COVID-19, on-the-spot-checks regarding recognition criteria should not apply in the year 2022.

(10)

Article 27(2) of Implementing Regulation (EU) 2017/892 fixes the sample for annual on-the-spot checks at least 30 % of the total aid applied for. Due to the measures put in place to address the pandemic of COVID-19, Member States may not be able to meet these requirements and should therefore be allowed to carry out a lower percentage of those checks in the year 2022.

(11)

Article 27(7) of Implementing Regulation (EU) 2017/892 provides that actions implemented on individual holdings of members of producer organisations covered by the sample referred to in Article 27(2) of that Regulation are to be subject of at least one visit to verify their execution. Due to the measures put in place to address the pandemic of COVID-19, Member States may not be able to meet these requirements and should therefore not be subjected in the year 2022 to the requirements on frequency of visits on individual holdings of producer organisations.

(12)

Article 29(2) of Implementing Regulation (EU) 2017/892 provides that the first-level checks on withdrawal operations is to cover 100 % of the quantity of the products withdrawn from the market, with the exception of products intended for free distribution, for which pursuant to Article 29(3) of that Regulation Member States could check a smaller percentage, but not less than 10 % of the quantities concerned during the marketing year of any given producer organisation. Due to the measures put in place to address the pandemic of COVID-19, Member States may not be able to meet this requirement and should be allowed in the year 2022 to check a smaller percentage, but not less than 10 % of the quantities concerned during the marketing year of any given producer organisation also for all other withdrawn products, irrespective of their intended destination.

(13)

Article 30(3) of Implementing Regulation (EU) 2017/892 provides that each check is to include a sample representing at least 5 % of the quantities withdrawn by the producer organisation during the marketing year. Due to the measures put in place to address the pandemic of COVID-19, Member States may not be able to meet this requirement and should be allowed in the year 2022 to use samples representing at least 3 % of the quantities withdrawn by the producer organisation during the marketing year 2020.

(14)

Due to the measures put in place to address the pandemic of COVID-19, it will continue to be materially difficult for Member States to carry out in 2022 on-the-spot checks for annual aid applications, first and second level checks on withdrawal operations and checks on green harvesting and non-harvesting as set out in Articles 27(2) and (7), 29(2), 30(3) and 31(1) and (2) of Implementing Regulation (EU) 2017/892 respectively. Therefore, it should be allowed for Member States to define checks that are equivalent to on-the-spot checks, such as geotagged photos, dated photographs, dated drone surveillance reports, administrative checks or videoconferences with the beneficiaries.

(15)

Due to the measures put in place to address the pandemic of COVID-19, it will continue to be materially difficult for Member States to carry out in 2022 systematic and sample-based on-the-spot checks for operations supported under Articles 45 to 52 of Regulation (EU) No 1308/2013 of the European Parliament and of the Council (11). Therefore, a derogation from Articles 32(1) and 42(3) of Commission Implementing Regulation (EU) 2016/1150 (12), as already introduced for financial years 2020 and 2021, should be provided for also in respect of financial year 2022 to allow Member States to define controls that are equivalent to systematic on-the-spot checks, such as dated photographs, dated drone surveillance reports, administrative checks or videoconferences with the beneficiaries, and guarantee that the rules of the legislation relating to the support programmes in the wine sector are respected before payments are made.

(16)

It is also going to be materially difficult for Member States to carry out in respect of financial year 2022, within the deadline set by Article 43(3) of Implementing Regulation (EU) 2016/1150, systematic on-the-spot checks for green harvesting operations supported under Article 47 of Regulation (EU) No 1308/2013. Therefore, a derogation should be introduced to postpone the completion of the checks until 15 September 2022.

(17)

Article 27(3) of Commission Implementing Regulation (EU) 2018/274 (13) fixes the number of samples of fresh grapes to be taken from vineyards during the period when the plot in question is harvested for the establishment of the analytical databank of isotopic data referred to in Article 39 of Commission Delegated Regulation (EU) 2018/273 (14). In cases where the measures put in place to address the pandemic of COVID-19 continue to prevent Member States from carrying out such checks, Member States should be allowed to derogate from the minimum number of samples.

(18)

Article 31(2), point (b), of Implementing Regulation (EU) 2018/274 provides that Member States are to carry out yearly on-the-spot checks on at least 5 % of all wine growers identified in the vineyard register. As the measures put in place to address the pandemic of COVID-19 continue to render materially difficult the carrying out such checks in several wine producing Member States, this percentage should be reduced for the year 2022. For the same reason, Member States should be allowed to temporarily suspend in the year 2022 the systematic on-the-spot checks referred to in Article 31(2), point (c), of that Regulation which are to be carried out in areas planted with vines which are not included in any wine grower file.

(19)

Commission Implementing Regulation (EU) No 615/2014 (15) with regard to work programmes to support the olive oil and table olives sectors contains rules on on-the-spot checks to verify that the conditions for granting Union financing are met. The measures put in place to address the pandemic of COVID-19 may lead to difficulties in carrying out those checks as required by Article 6 of that Regulation. It is therefore appropriate to provide flexibility to the Member States by allowing the substitution of on-the-spot checks in calendar year 2022 by alternative checks.

(20)

Commission Implementing Regulation (EU) 2015/1368 (16) with regard to aid in the apiculture sector contains rules on the monitoring and checks in relation to the correct implementation of the national apiculture programmes, the actual expenditure incurred and the correct number of beehives reported by beekeepers. According to Article 8(3) of that Regulation, Member States are to ensure that at least 5 % of the applicants for aid within the framework of their apiculture programmes are subject to on-the-spot checks. The measures put in place to address the pandemic of COVID-19 may lead to difficulties in carrying out the number of on-the-spot checks needed to fulfil that threshold. It is therefore appropriate to provide flexibility to the Member States by allowing for a derogation from that requirement. Such derogation should however not result in an increase of the risk for undue payments. Therefore, any lowering of the number of on-the-spot checks should be replaced as much as possible by alternative controls.

(21)

Due to the previous flexibility options that have been offered to Member States in the last two years on the increase of the control rates, it is important to restore the original rule which has a significant deterrent effect and to clarify the year that should be taken into account for determining the increase in the control rate in accordance with Article 35 and Articles 50(5) and 68(4) of Implementing Regulation (EU) No 809/2014 and Article 59(5) of Regulation (EU) No 1306/2013. In view of possible changes implemented by the Member States in their control procedures following the detection of non-compliances, applying corrective mechanisms referring to non-compliances revealed during the controls relating to claim year 2019 is not considered appropriate and the most recent year should be taken into account. Therefore, it is necessary to amend Articles 3, 5 and 6 of Implementing Regulation (EU) 2021/725.

(22)

The derogations from Implementing Regulations (EU) No 809/2014, (EU) No 180/2014, (EU) No 181/2014, (EU) 2017/892, (EU) 2016/1150, (EU) 2018/274, (EU) No 615/2014 and (EU) 2015/1368 provided for in this Regulation should enable Member States to avoid delays in the control measures and processing of aid applications, and thus avoid delays of payments to beneficiaries for the year 2022. It is however imperative that those derogations do not impede the sound financial management and the requirement of a sufficient level of assurance. Accordingly, Member States making use of those derogations are responsible for taking all necessary measures to ensure that overpayments are avoided and that the recovery of undue amounts is instigated. Moreover, the use of these derogations should be covered by the management declaration referred to in Article 7(3), first subparagraph, point (b), of Regulation (EU) No 1306/2013 for financial years 2022 and 2023.

(23)

In order to ensure the smooth implementation of the measures provided for in this Regulation which are necessary for Member States to organise control campaigns while respecting the measures put in place to address the pandemic of the COVID-19, this Regulation should enter into force on the day of its publication in the Official Journal of the European Union and apply retroactively in order to enable Member States to implement the envisaged modifications from the beginning of the respective control campaigns: the measures in Chapters I and II and Chapter III, Sections 3 and 4, should apply from 1 January 2022, corresponding to claim year in the integrated administration and control system or to calendar year for non-area and non-animal related rural development support measures and measures in the wine sector; the measures in Chapter III, Sections 1 and 2, should apply from 16 October 2021, corresponding to the financial year and the measures in Chapter III, Section 5, should apply from 1 August 2021, corresponding to the apiculture year.

(24)

The measures provided for in this Regulation are in accordance with the opinion of the Committee on the Agricultural Funds, the Committee for Direct Payments, the Rural Development Committee and the Committee for the Common Organisation of the Agricultural Markets,

(1)

In 2013 the Commission adopted Implementing Regulation (EU) No 185/2013 (2) providing for deductions from the mackerel quota allocated to Spain in 2013 in ICES division 8c, ICES subareas 9 and 10 and Union waters of CECAF 34.1.1 and from the anchovy quota in ICES subarea 8 on account of overfishing of the mackerel quota in 2009.

(2)

Spain did not fish 3 400 tonnes of the relevant mackerel quota in 2021, thus exercising a lower fishing pressure on that stock compared to the maximum quantity allowed by the fishing opportunities allocated for that year. Spain has requested that those unfished quantities be taken into account for deductions for 2021 and to decrease the deductions provided by Implementing Regulation (EU) No 185/2013 for the years 2022 and 2023 accordingly. The quantities for deductions for 2021, 2022 and for 2023 established in Implementing Regulation (EU) No 185/2013 should therefore be adapted accordingly.

(3)

Implementing Regulation (EU) No 185/2013 should therefore be amended accordingly.

(4)

The measures provided for in this Regulation are in accordance with the opinion of the Committee for Fisheries and Aquaculture,

(1)

Regulation (EU) 2016/429 lays down disease-specific rules for the diseases listed in accordance with Article 5(1) thereof and lays down how those rules are to be applied to different categories of listed diseases. Regulation (EU) 2016/429 provides for the Member States to establish compulsory eradication programmes for the listed diseases referred to in Article 9(1), point (b), thereof, and for optional eradication programmes for listed diseases referred to in Article 9(1), point (c), thereof, and for the approval of such programmes by the Commission. That Regulation also provides for the approval or withdrawal by the Commission of the disease-free status of Member States or zones or compartments thereof with regard to certain listed diseases referred to in Article 9(1), points (b) and (c), thereof.

(2)

Commission Delegated Regulation (EU) 2020/689 (2) supplements Regulation (EU) 2016/429 and lays down the criteria for granting, maintaining, suspending and withdrawing disease-free status for Member States or zones or compartments thereof, and the requirements for the approval of compulsory or optional eradication programmes for Member States or zones or compartments thereof.

(3)

Commission Implementing Regulation (EU) 2021/620 (3) lays down implementing rules for the listed diseases referred to in Article 9(1), points (a), (b) and (c), of Regulation (EU) 2016/429 of animals, as regards the disease-free and non-vaccination status of certain Member States or zones or compartments thereof, and the approval of eradication programmes for those listed diseases. More particularly, it lists in the Annexes thereto, the Member States or zones or compartments thereof with disease-free status and it also lists the existing approved eradication programmes. The changing epidemiological situation of certain diseases makes it necessary to list new disease-free Member States or zones thereof and to approve certain eradication programmes submitted to the Commission.

(4)

For infection with Brucella abortus, B. melitensis and B. suis, infection with Mycobacterium tuberculosis complex (Mycobacterium bovis, M. caprae and M. tuberculosis) (MTBC), enzootic bovine leukosis (EBL), infection with bovine viral diarrhoea (BVD), and infection with bluetongue virus (serotypes 1-24) (BTV), several Member States have recently applied to the Commission to have disease-free status or eradication programmes approved for the whole or for part of their territory.

(5)

For infection with Brucella abortus, B. melitensis and B. suis in bovine animals, Italy has submitted to the Commission information demonstrating that the conditions for the recognition of disease-free status laid down in Delegated Regulation (EU) 2020/689 are fulfilled in the Province of Vibo Valentia in the Region of Calabria and in the Province of Teramo in the Region of Abruzzo. Therefore, those zones should be listed as free from infection with Brucella abortus, B. melitensis and B. suis in bovine animals in Part I, Chapter 1, of Annex I to Implementing Regulation (EU) 2021/620.

(6)

For infection with Brucella abortus, B. melitensis and B. suis in ovine and caprine animals, Italy has submitted to the Commission information demonstrating that the conditions for the recognition of disease-free status laid down in Delegated Regulation (EU) 2020/689 are fulfilled in the Province of Lecce in the Region of Puglia. Therefore, that zone should be listed as free from infection with Brucella abortus, B. melitensis and B. suis in ovine and caprine animals in Part I, Chapter 2, of Annex I to Implementing Regulation (EU) 2021/620.

(7)

For infection with MTBC, Italy has submitted to the Commission information demonstrating that the conditions for recognition of disease-free status from infection with MTBC laid down in Delegated Regulation (EU) 2020/689 are fulfilled in the Provinces of Aquila, Chieti and Teramo in the Region of Abruzzo, in the Province of Latina in the Region of Lazio, in the Provinces of Bari and Taranto in the Region of Puglia and in the Province of Nuoro in the Region of Sardinia. Therefore, those zones should be listed as free from infection with MTBC in Part I of Annex II to Implementing Regulation (EU) 2021/620.

(8)

For infection with EBL, Croatia has submitted to the Commission an application to have an eradication programme approved for its territory. Following the assessment by the Commission, that application has been shown to comply with the criteria laid down in Chapter 2 of Part II of Delegated Regulation (EU) 2020/689 for approval of eradication programmes for EBL. Therefore, this Member State should be listed accordingly in Part II of Annex IV to Implementing Regulation (EU) 2021/620, as having an approved eradication programme for EBL.

(9)

For infection with BVD, Denmark and Germany have submitted to the Commission information demonstrating that the conditions for recognition of the disease-free status from BVD laid down in Delegated Regulation (EU) 2020/689 are fulfilled on the whole territory of Denmark and in Landkreis Ravensburg, Erding, Weilheim-Schongau, Oberallgäu and Fulda in Germany, respectively. Therefore, that Member State and those zones should be listed accordingly in Part I of Annex VII to Implementing Regulation (EU) 2021/620, as having disease-free status from BVD.

(10)

For infection with BVD, Ireland has submitted to the Commission an application to have an eradication programme approved for its territory. Following the assessment by the Commission, that application has been shown to comply with the criteria laid down in Part II, Chapter 2, of Delegated Regulation (EU) 2020/689 for approval of eradication programmes for BVD. Therefore, this Member State should be listed accordingly in Part II of Annex VII to Implementing Regulation (EU) 2021/620, as having an approved eradication programme for BVD.

(11)

As regards infection with BTV, Germany has submitted to the Commission information demonstrating that the conditions for recognition of disease-free status from BTV are fulfilled for the whole territory of Baden-Württemberg, Hessen and Nordrhein-Westfalen. Following the assessment by the Commission, those applications have been shown to comply with the criteria laid down in Part II, Chapter 2, of Delegated Regulation (EU) 2020/689 for the granting of disease-free status for BTV. Therefore, those zones should be listed in Part I of Annex VIII to Implementing Regulation (EU) 2021/620, as having disease-free status from BTV.

(12)

Annexes I, II, IV, VII and VIII to Implementing Regulation (EU) 2021/620 should therefore be amended accordingly.

(13)

The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on Plants, Animals, Food and Feed,

(1)

Commission Implementing Regulation (EU) 2020/2235 (4) lays down rules regarding animal health certificates provided for in Regulation (EU) 2016/429, official certificates provided for in Regulation (EU) 2017/625, and animal health/official certificates based on those Regulations, required for the entry into the Union of certain consignments of animals and goods (hereinafter together referred to as ‘the certificates’). In particular, Annex III to Implementing Regulation (EU) 2020/2235 lays down, among others, model certificates for the entry into and transit through the Union of consignments of certain composite products.

(2)

Chapter 50 of Annex III to Implementing Regulation (EU) 2020/2235 sets out the model animal health/official certificate for the entry into the Union of non shelf-stable composite products and shelf-stable composite products, containing any quantity of meat products except gelatine, collagen and highly refined products, and intended for human consumption (model COMP). Chapter 52 of Annex III to Implementing Regulation (EU) 2020/2235 sets out the model animal health certificate for the transit through the Union to a third country, either by immediate transit or after storage in the Union, of non shelf-stable composite products and shelf-stable composite products, containing any quantity of meat products, and intended for human consumption (model TRANSIT-COMP). Both of those models include a specific animal health attestation for dairy products contained in the composite products. Heat treatments requirements in those attestations should be aligned with the treatments laid down in Annex XXVII to Commission Delegated Regulation (EU) 2020/692 (5). Additionally, the requirement to indicate the production dates of the dairy products and colostrum-based products contained in the composite products should be deleted as superfluous in light of the description provided in footnote (2) covering all the constituents of animal origin. Moreover, certain footnotes in the Notes to Part II to those models should be supplemented and clarified. It is therefore necessary to amend Chapters 50 and 52 of Annex III to Implementing Regulation (EU) 2020/2235 accordingly.

(3)

In addition, in Chapter 52 of Annex III to Implementing Regulation (EU) 2020/2235, the requirement to indicate the approval number of the establishment of origin of dairy products contained in the composite products transiting through the Union should be deleted as the Union is not a final destination of those composite products. It is therefore necessary to amend Chapter 52 of Annex III to Implementing Regulation (EU) 2020/2235 accordingly.

(4)

Annex III to Implementing Regulation (EU) 2020/2235 should therefore be amended accordingly.

(5)

In order to avoid any disruption to trade as regards the entry into and transit through the Union of consignments of certain composite products, the use of certificates issued in accordance with Implementing Regulation (EU) 2020/2235, as applicable prior to the amendments made by this Regulation, should continue to be authorised during a transitional period subject to certain conditions.

(6)

As Implementing Regulation (EU) 2020/2235 applies from 21 April 2021, in the interest of legal certainty and to facilitate trade, the amendments to be made to Implementing Regulation (EU) 2020/2235 by this Regulation should take effect as a matter of urgency.

(7)

The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on Plants, Animals, Food and Feed,

(1)

It is necessary to ensure that the European Securities and Markets Authority (ESMA) and the competent authorities concerned receive all information necessary to supervise branches of third-country firms, and to ensure that such information is processed in an efficient and swift manner. The information referred to in Article 41(3) and (4) of Directive 2014/65/EU should therefore be submitted in a language that is customary in the sphere of international finance.

(2)

Article 39(2) of Directive 2014/65/EU requires that branches of third-country firms that wish to provide investment services or to perform investment activities in the territory of a Member State, acquire prior authorisation of the competent authority of that Member State. Such branches are not allowed to provide investment services or perform investment activities in other Member States than the Member State where those branches received their authorisation. The European Commission can, however, adopt an equivalence decision in accordance with Article 47(1) of Regulation (EU) No 600/2014 of the European Parliament and of the Council (2) stating that the legal and supervisory arrangements of that third country with regard to investment firms are equivalent to those that apply in the Union. In such a case, the authorised branches of investment firms that fall under the scope of such an equivalence decision would continue to be supervised by the competent authority of the Member State in which those branches are established, irrespective of whether they provide cross border services or performs cross border activities. It is therefore necessary to ensure that the format for the reporting of the information referred to in Article 41(3) of Directive 2014/65/EU is also apt for the reporting on such cross-border services and activities of those branches.

(3)

According to Article 41(3) of Directive 2014/65/EU, branches of third-country firms that have been authorised in accordance with Article 41(1) of that Directive are to report to the competent authority of the Member State where that authorisation was granted, on an annual basis, the information laid down in that Article 41(3). In order to harmonise not only the format, but also the timing of reporting, it is necessary to include a timeframe when that information is to be provided to competent authorities.

(4)

This Regulation is based on the draft implementing technical standards submitted to the Commission by ESMA.

(5)

ESMA has conducted open public consultations on the draft implementing technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the advice of the Securities and Markets Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council (3),

1.

Reporting Period: 1a and 1b and, where applicable, 19a and 19b;

2.

Name of the third-country firm and the branch: 2a and 2d and, where applicable, 20a and 20d;

3.

Investment services, investment activities and ancillary services provided by the branch: 3a, 3b, 3c, 3d, 3e, 3f, 3g and 3h and, where applicable, 21a, 21b, 21c, 21d, 21e, 21f, 21g and 21h;

4.

Number of clients and counterparties and number of staff of the branch: 4a, 4b, 4c, 4d and, where applicable, 22a, 22b and 22c;

5.

Turnover and aggregated value of the assets of the branch: 5a, 5b, 5c and, where applicable, 23a, 23b and 23c.