Legal provisions of COM(2018)438 - Connecting Europe Facility - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2018)438 - Connecting Europe Facility. |
|---|---|
| document | COM(2018)438  |
| date | July 7, 2021 |
Contents
CHAPTER I - GENERAL PROVISIONS
Article 1
Subject matter
This Regulation establishes the Connecting Europe Facility (the ‘CEF’) for the period of the Multiannual Financial Framework (the “MFF”) 2021-2027.
This Regulation lays down the objectives of the CEF, its budget for the period 2021-2027, the forms of Union funding and the rules for providing such funding.
Article 2
Definitions
For the purposes of this Regulation, the following definitions apply:
| (a) | “action” means any activity which has been identified as financially and technically independent, has a set time-frame and is necessary for the implementation of a project; |
| (b) | “alternative fuels” means alternative fuels for all modes of transport as defined in Article 2, point (1), of Directive 2014/94/EU; |
| (c) | “beneficiary” means an entity with legal personality with which a grant agreement has been signed; |
| (d) | “blending operation” means actions supported by the Union budget, including within blending facilities pursuant to Article 2, point (6), of the Financial Regulation combining non-repayable forms of support and/or financial instruments and/or budgetary guarantees from the Union budget with repayable forms of support from development or other public finance institutions, as well as from commercial finance institutions and investors; |
| (e) | “comprehensive network” means the transport infrastructure identified in accordance with Chapter II of Regulation (EU) No 1315/2013; |
| (f) | “core network” means the transport infrastructure identified in accordance with Chapter III of Regulation (EU) No 1315/2013; |
| (g) | “core network corridors” means instruments to facilitate the coordinated implementation of the core network as provided for in Chapter IV of Regulation (EU) No 1315/2013 and listed in Part III of the Annex to this Regulation; |
| (h) | “cross border link” means, in the transport sector, a project of common interest which ensures the continuity of the TEN-T between Member States or between a Member State and a third country; |
| (i) | “missing link” means an all modes of transport missing section of the TEN-T or a transport section that is providing the connection of core or comprehensive networks with the TEN-T corridors which hampers the continuity of the TEN-T or containing one or more bottlenecks affecting the continuity of the TEN-T; |
| (j) | “dual-use infrastructure” means a transport network infrastructure that addresses both civilian and defence needs; |
| (k) | “cross-border project in the field of renewable energy” means a project selected or eligible to be selected under a cooperation agreement or any other kind of arrangement between two or more Member States or arrangements between one or more Member States and one or more third countries as set out in Articles 8, 9, 11 and 13 of Directive (EU) 2018/2001 in the planning or deployment of renewable energy, in accordance with the criteria set out in Part IV of the Annex to this Regulation; |
| (l) | “energy efficiency first” means energy efficiency first as defined in Article 2, point (18), of Regulation (EU) 2018/1999; |
| (m) | “digital connectivity infrastructure” means very high capacity networks, 5G systems, very high-quality local wireless connectivity and backbone networks, as well as operational digital platforms directly associated with transport and energy infrastructure; |
| (n) | “5G systems” means a set of digital infrastructure elements based on globally agreed standards for mobile and wireless communications technology used for connectivity and added-value services with advanced performance characteristics such as very high data rates and capacity, low latency communications, ultra-high reliability or support for a high number of connected devices; |
| (o) | “5G corridor” means a transport path, road, railway or inland waterway, fully covered with digital connectivity infrastructure and in particular 5G systems, enabling the uninterrupted provision of synergy digital services such as connected and automated mobility, similar smart mobility services for railways or digital connectivity on inland waterways; |
| (p) | “operational digital platforms directly associated with transport and energy infrastructure” means physical and virtual information communication technology resources, operating via the communication infrastructure, which support the flow, storage, processing and analysis of transport or energy infrastructure data, or both; |
| (q) | “project of common interest” means a project identified in Regulation (EU) No 1315/2013 or Regulation (EU) No 347/2013 or in Article 8 of this Regulation; |
| (r) | “studies” means activities needed to prepare project implementation, such as preparatory, mapping, feasibility, evaluation, testing and validation studies, including in the form of software, and any other technical support measure, including prior action to define and develop a project and decide on its financing, such as reconnaissance of the sites concerned and preparation of the financial package; |
| (s) | “socioeconomic drivers” means entities which by their mission, nature or location can directly or indirectly generate important socioeconomic benefits for citizens, business and local communities located in their surrounding territory, or in their area of influence; |
| (t) | “third country” means a country that is not a Member State of the Union; |
| (u) | “very high capacity networks” means very high capacity networks as defined in Article 2, point (2), of Directive (EU) 2018/1972; |
| (v) | “works” means the purchase, supply and deployment of components, systems and services including software, the carrying-out of development and construction and installation activities relating to a project, the acceptance of installations and the launching of a project. |
Article 3
Objectives
1. The general objectives of the CEF are to build, develop, modernise and complete the trans-European networks in the transport, energy and digital sectors and to facilitate cross-border cooperation in the field of renewable energy, taking into account the long-term decarbonisation commitments and the goals of increasing European competitiveness; smart, sustainable and inclusive growth; territorial, social and economic cohesion; and the access to and integration of the internal market, with an emphasis on facilitating the synergies among the transport, energy and digital sectors.
2. The specific objectives of the CEF are:
| (a) | in the transport sector:
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| (b) | in the energy sector:
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| (c) | in the digital sector: to contribute to the development of projects of common interest relating to the deployment of and access to safe and secure very high capacity networks, including 5G systems, and to the increased resilience and capacity of digital backbone networks on Union territories by linking them to neighbouring territories, as well as to the digitalisation of transport and energy networks. |
Article 4
Budget
1. The financial envelope for the implementation of the CEF for the period from 1 January 2021 to 31 December 2027 shall be EUR 33 710 000 000 (32) in current prices.
In line with the Union objective of mainstreaming climate actions into Union sectoral policies and Union funds, the CEF shall contribute, through its actions, 60 % of its overall financial envelope to climate objectives.
2. The distribution of the amount referred to in paragraph 1 shall be as follows:
| (a) | EUR 25 807 000 000 for the specific objectives referred to in Article 3(2), point (a), of which:
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| (b) | EUR 5 838 000 000 for the specific objectives referred to in Article 3(2), point (b), of which 15 %, subject to market uptake, for cross-border projects in the field of renewable energy, and if the 15 % threshold is reached, the Commission shall increase that threshold up to 20 %, subject to market uptake; |
| (c) | EUR 2 065 000 000 for the specific objectives referred to in Article 3(2), point (c). |
3. The Commission shall not depart from the amount referred to in paragraph 2, point (a)(ii).
4. Up to 1 % of the amount referred to in paragraph 1 may be used to finance technical and administrative assistance for the implementation of the CEF and the sector-specific guidelines, such as preparatory, monitoring, control, audit and evaluation activities including corporate information and technology systems. That amount may also be used to finance accompanying measures to support the preparation of projects, and in particular to provide advisory services to project promoters concerning funding opportunities in order to assist them in the structuring of their project finance.
5. Budgetary commitments for actions extending over more than one financial year may be broken down into annual instalments, over two or more years.
6. In accordance with Article 193(2), second subparagraph, point (a), of the Financial Regulation, taking into account the delayed entry into force of this Regulation and in order to ensure continuity, for a limited period, costs incurred in respect of actions supported under this Regulation may be considered eligible as of 1 January 2021, even if they were incurred before the grant application was submitted.
7. The amount transferred from the Cohesion Fund shall be implemented in accordance with this Regulation, subject to paragraph 8 of this Article and without prejudice to Article 15(2), point (c).
8. As regards the amounts transferred from the Cohesion Fund, 30 % of those amounts shall be made available, immediately on a competitive basis, to all Member States eligible for funding from the Cohesion Fund to finance transport infrastructure projects in accordance with this Regulation, with priority being given to supporting the greatest possible number of cross-border and missing links. Until 31 December 2023, the selection of projects eligible for financing shall respect the national allocations under the Cohesion Fund with regard to 70 % of the resources transferred. As of 1 January 2024, resources transferred to the CEF which have not been committed to a transport infrastructure project shall be made available to all Member States eligible for funding from the Cohesion Fund to finance transport infrastructure projects in accordance with this Regulation.
9. In respect of Member States whose gross national income (GNI) per capita, measured in purchasing power standards (PPS) for the period 2015-2017, is less than 60 % of the average GNI per capita of the EU-27, 70 % of 70 % of the amount that those Member States have transferred to the CEF shall be guaranteed until 31 December 2024.
10. Until 31 December 2025, the total amount allocated from the amount referred to in paragraph 2, point (a)(ii), to actions in a Member State eligible for funding from the Cohesion Fund shall not exceed 170 % of the share of that Member State in the total amount transferred from the Cohesion Fund.
11. In order to support Member States which are eligible for funding from the Cohesion Fund and which might experience difficulties in designing projects that are of a sufficient maturity, quality, or both, and that have sufficient Union added value, particular attention shall be given to technical assistance which aims to strengthen the institutional capacity and the efficiency of public administrations and public services in relation to the development and implementation of projects listed in this Regulation.
The Commission shall do its utmost to enable Member States eligible for funding from the Cohesion Fund to attain, by the end of the period 2021-2027, the highest possible absorption of the amount transferred to the CEF, including through the organisation of additional calls.
In addition, particular attention and support shall be given to those Member States whose GNI per capita, measured in PPS for the period 2015-2017, is less than 60 % of the average GNI per capita of the EU-27.
12. The amount transferred from the Cohesion Fund shall not be used to finance cross-sectoral work programmes and blending operations.
13. Resources allocated to Member States under shared management may, at the request of the Member State concerned, be transferred to the CEF, subject to the conditions set out in Article 21 of Regulation (EU) 2021/1060. The Commission shall implement those resources directly in accordance with Article 62(1), first subparagraph, point (a), of the Financial Regulation or indirectly in accordance with point (c) of that subparagraph. Those resources shall be used for the benefit of the Member State concerned.
14. Without prejudice to paragraph 13 of this Article, in the digital sector, resources allocated to Member States under shared management may, at the request of those Member States, be transferred to the CEF, including for the purpose of complementing the funding of eligible actions under Article 9(4) of this Regulation, up to 100 % of the total eligible cost, without prejudice to the co-financing principle laid down in Article 190 of the Financial Regulation and to the State Aid Rules. Those resources shall be used for the benefit of the Member State concerned only.
Article 5
Third countries associated to the CEF
1. The CEF shall be open to the participation of the following third countries:
| (a) | members of the European Free Trade Association which are members of the EEA, in accordance with the conditions laid down in the EEA Agreement; |
| (b) | acceding countries, candidate countries and potential candidates, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective framework agreements and Association Council decisions or in similar agreements and in accordance with the specific conditions laid down in agreements between the Union and those countries; |
| (c) | European Neighbourhood Policy countries, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective framework agreements and Association Council decisions or in similar agreements and in accordance with the specific conditions laid down in agreements between the Union and those countries; |
| (d) | other third countries, in accordance with the conditions laid down in a specific agreement covering the participation of the third country to any Union programme, provided that the agreement:
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The contributions referred to in the first subparagraph, point (d)(ii), of this Article shall constitute assigned revenues in accordance with Article 21(5) of the Financial Regulation.
2. Without prejudice to Article 8 of Regulation (EU) No 1315/2013, the third countries referred to in paragraph 1 of this Article, and entities established in those countries, may not receive financial assistance under this Regulation except where it is indispensable to the achievement of the objectives of a given project of common interest or a project in accordance with Article 7(1) of this Regulation and under the conditions set in the work programmes referred to in Article 20 of this Regulation.
Article 6
Implementation and forms of Union funding
1. The CEF shall be implemented in direct management in accordance with the Financial Regulation or in indirect management by bodies referred to in Article 62(1), first subparagraph, point (c), of the Financial Regulation.
2. The CEF may provide funding in the forms of grants and procurement as laid down in the Financial Regulation. It may also contribute to blending operations in accordance with the Regulation (EU) 2021/523 of the European Parliament and of the Council (33) and Title X of the Financial Regulation. The Union contribution to blending operations in the transport sector shall not exceed 10 % of the budgetary amount indicated in Article 4(2), point (a)(i), of this Regulation. In the transport sector, blending operations may be used for actions relating to smart, interoperable, sustainable, inclusive, accessible, safe and secure mobility as referred to in Article 9(2), point (b), of this Regulation.
3. The Commission may delegate power to implement part of the CEF to executive agencies in accordance with Article 69 of the Financial Regulation, with a view to fulfilling the optimum management and efficiency requirements of the CEF in the transport, energy and digital sectors.
4. Contributions to a mutual insurance mechanism may cover the risk associated with the recovery of funds due by recipients and shall be considered to be a sufficient guarantee under the Financial Regulation. Article 33(7) of Regulation (EU) 2021/695 shall apply.
Article 7
Cross-border projects in the field of renewable energy
1. Cross-border projects in the field of renewable energy shall contribute to decarbonisation, to completing the internal energy market and to enhancing the security of supply. Those projects shall be included in a cooperation agreement or in any other kind of arrangement between two or more Member States or arrangements between one or more Member States and one or more third countries as set out in Articles 8, 9, 11 and 13 of Directive (EU) 2018/2001. Those projects shall meet the objectives, the general criteria and the procedure laid down in Part IV of the Annex to this Regulation.
2. By 31 December 2021, the Commission shall adopt delegated acts in accordance with Article 26 laying down, without prejudice to the award criteria set out in Article 14, specific selection criteria and the details of the process for selecting the projects. The Commission shall publish the methodologies for assessing the contribution of the project to the general criteria and for producing the cost-benefit analysis specified in Part IV of the Annex.
3. Studies that aim to develop and identify cross-border projects in the field of renewable energy shall be eligible for funding under this Regulation.
4. Cross-border projects in the field of renewable energy are eligible for Union funding for works if they meet the following additional criteria:
| (a) | the project specific cost-benefit analysis pursuant to Part IV, point 3, of the Annex is compulsory for all supported projects and takes into account any revenues resulting from support schemes, has been performed in a transparent, comprehensive and complete manner and provides evidence concerning the existence of significant cost savings or benefits, or both, in terms of system integration, environmental sustainability, security of supply or innovation; and |
| (b) | the applicant demonstrates that the project would not materialise in the absence of the grant or that the project cannot be commercially viable in the absence of the grant. |
5. The amount of the grant for works shall:
| (a) | be proportionate to the cost savings or benefits referred to in Part IV, point 2(b), of the Annex, or both; |
| (b) | not exceed the amount required to ensure that the project materialises or becomes commercially viable; and |
| (c) | comply with Article 15(3). |
6. The CEF shall provide for the possibility of coordinated funding with the enabling framework for renewable energy deployment referred to in Article 3(5) of Directive (EU) 2018/2001 and co-funding with the Union renewable energy financing mechanism referred to in Article 33 of Regulation (EU) 2018/1999.
7. The Commission shall regularly assess the uptake of funds for cross-border projects in the field of renewable energy against the reference amount set out in Article 4(2), point (b), of this Regulation. Following that assessment, in the absence of sufficient market uptake of funds for cross-border projects in the field of renewable energy, the unused budget envisaged for those projects shall be used to meet the objectives of the trans-European energy networks set out in Article 3(2), point (b)(i), of this Regulation for eligible actions referred in Article 9(3) point (a), of this Regulation and, from 2024, may also be used to co-fund the Union renewable energy financing mechanism established under Regulation (EU) 2018/1999.
8. The Commission shall adopt an implementing act, laying down specific rules on co-funding between the parts on cross-border projects in the field of renewable energy under the CEF and the Union renewable energy financing mechanism established under Article 33 of Regulation (EU) 2018/1999. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 24(2) of this Regulation.
Article 8
Projects of common interest in the area of digital connectivity infrastructure
1. Projects of common interest in the area of digital connectivity infrastructure are those projects that make an important contribution to the Union’s strategic connectivity objectives and/or provide the network infrastructure supporting the digital transformation of the economy and society, as well as the Union’s Digital Single Market.
2. Projects of common interest in the area of digital connectivity infrastructure shall meet the following criteria:
| (a) | the project contributes to the specific objective provided for in Article 3(2), point (c); and |
| (b) | the project deploys the best available and best suited technology for that specific project, which proposes the best balance in terms of data flow capacity, transmission security, network resilience, cyber security and cost efficiency. |
3. Studies that aim to develop and identify projects of common interest in the area of digital connectivity infrastructure shall be eligible for funding under this Regulation.
4. Without prejudice to the award criteria laid down in Article 14, priority for funding shall be determined taking into account the following criteria:
| (a) | actions contributing to deployment of and access to very high capacity networks, including 5G systems and other state-of-the-art connectivity, in accordance with Union strategic connectivity targets in areas where socioeconomic drivers are located shall be prioritised, taking into account the connectivity needs of those areas and the additional area coverage generated, including for households, in accordance with Part V, point 1, of the Annex; stand-alone deployments to socioeconomic drivers shall be eligible for funding, provided that those deployments are economically proportionate and physically practicable; |
| (b) | actions contributing to the provision of very high-quality local wireless connectivity in local communities shall be prioritised in accordance with Part V, point 2, of the Annex; |
| (c) | actions contributing to the deployment of 5G corridors along major transport paths, including on the TEN-T, such as those listed in Part V, point 3, of the Annex, shall be prioritised to ensure coverage along those major transport paths, enabling the uninterrupted provision of synergy digital services, taking into account its socioeconomic relevance relative to any currently installed technological solutions in a forward looking approach; |
| (d) | projects of common interest which aim to deploy or significantly upgrade cross-border backbone networks linking the Union to third countries and to reinforce links between electronic communications networks within the Union territory, including submarine cables, shall be prioritised according to the extent to which they significantly contribute to the increased performance, resilience and very high capacity of those electronic communications networks; |
| (e) | projects of common interest deploying operational digital platforms shall prioritise actions based on state-of-the-art technologies, taking into account aspects such as interoperability, cybersecurity, data privacy and re-use. |
CHAPTER II - ELIGIBILITY
Article 9
Eligible actions
1. Only actions which contribute to the achievement of the objectives referred to in Article 3, whilst taking into account long-term decarbonisation commitments, shall be eligible for funding. Such actions include studies, works and other accompanying measures necessary for the management and implementation of the CEF and the sector-specific guidelines. Studies shall be eligible only if they relate to projects eligible under the CEF.
2. In the transport sector, only the following actions shall be eligible to receive Union financial support under this Regulation:
| (a) | actions relating to efficient, interconnected, interoperable and multimodal networks for the development of railway, road, inland waterway and maritime infrastructure:
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| (b) | actions relating to smart, interoperable, sustainable, multimodal, inclusive, accessible, safe and secure mobility:
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| (c) | under the specific objective referred to in Article 3(2), point (a)(ii), and in accordance with Article 12, actions or specific activities within an action, supporting parts, new or existing, of the TEN-T suitable for military transport, in order to adapt the TEN-T to dual-use infrastructure requirements. |
3. In the energy sector, only the following actions shall be eligible to receive Union financial support under this Regulation:
| (a) | actions relating to projects of common interest as set out at Article 14 of Regulation (EU) No 347/2013; |
| (b) | actions supporting cross-border projects in the field of renewable energy, including innovative solutions, as well as storage of renewable energy, and their conception, as defined in Part IV of the Annex, subject to the fulfilment of the conditions laid down in Article 7. |
4. In the digital sector, only the following actions shall be eligible to receive Union financial support under this Regulation:
| (a) | actions supporting the deployment of and access to very high capacity networks, including 5G systems, capable of providing Gigabit connectivity in areas where socioeconomic drivers are located; |
| (b) | actions supporting the provision of very high-quality local wireless connectivity in local communities that is free of charge and without discriminatory conditions; |
| (c) | actions implementing the uninterrupted coverage with 5G systems of all major transport paths, including the TEN-T, such as the actions listed in Part V, point 3, of the Annex; |
| (d) | actions supporting the deployment of new or the significant upgrading of existing backbone networks, including submarine cables, within and between Member States and between the Union and third countries, such as the actions listed in Part V, point 3, of the Annex, as well as other actions supporting the deployment of backbone networks referred to in that point; |
| (e) | actions implementing digital connectivity infrastructure requirements related to cross-border projects in the areas of transport or energy or supporting operational digital platforms directly associated to transport or energy infrastructures, or both. |
Article 10
Synergies between the transport, energy and digital sectors
1. Actions contributing simultaneously to the achievement of one or more objectives of at least two sectors, as provided for in Article 3(2), points (a), (b) and (c), shall be eligible to receive Union financial support under this Regulation and to benefit from a higher co-funding rate, in accordance with Article 15. Such actions shall be implemented through work programmes addressing at least two sectors and including specific award criteria, and shall be financed with budget contributions from the sectors involved.
2. Within each of the transport, energy or digital sectors, actions eligible in accordance with Article 9 may include synergetic elements relating to any of the other sectors, which are not related to eligible actions provided for in Article 9(2), (3) or (4) respectively, provided that they comply with all of the following requirements:
| (a) | the cost of the synergetic elements does not exceed 20 % of the total eligible costs of the action; |
| (b) | the synergetic elements relate to the transport, energy or digital sector; and |
| (c) | the synergetic elements enable the socioeconomic, climate or environmental benefits of the action to be significantly improved. |
Article 11
Eligible entities
1. As regards entities, the eligibility criteria set out in this Article shall apply in addition to the criteria set out in Article 197 of the Financial Regulation.
2. The following entities shall be eligible:
| (a) | legal entities established in:
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| (b) | legal entities created under Union law and, if provided for in the work programmes, international organisations. |
3. Natural persons shall not be eligible.
4. The work programmes may provide that legal entities established in third countries associated to the CEF in accordance with Article 5, and legal entities established in the Union but directly or indirectly controlled by third countries or nationals of third countries or by entities established in third countries, are not eligible to participate in all or some of the actions under the specific objectives set out in Article 3(2), point (c), for duly justified security reasons. In such cases, calls for proposals and calls for tenders shall be restricted to entities established, or deemed to be established, in Member States and directly or indirectly controlled by Member States or by nationals of Member States.
5. Legal entities established in a third country which is not associated to the CEF shall exceptionally be eligible to receive Union financial support under the CEF where this is indispensable for the achievement of the objectives of a given project of common interest in the transport, energy and digital sectors or of a cross-border project in the field of renewable energy.
6. To be eligible, proposals shall be submitted:
| (a) | by one or more Member States; or |
| (b) | with the agreement of the Member States concerned, by international organisations, joint undertakings, or by public or private undertakings or bodies, including regional or local authorities. |
If the Member State concerned does not agree with a submission under point (b) of the first subparagraph, it shall communicate that information accordingly.
A Member State may decide that, for a specific work programme or for specific categories of applications, proposals may be submitted without its agreement. In such case, this shall, at the request of the Member State concerned, be indicated in the relevant work programme and in the call for such proposals.
Article 12
Specific eligibility rules concerning actions relating to the adaptation of the TEN-T to civilian-defence dual use
1. Actions contributing to the adaptation of the TEN-T core network or comprehensive network as defined by Regulation (EU) No 1315/2013, with the purpose of enabling civilian-defence dual use of the infrastructure, shall be subject to the following additional eligibility rules:
| (a) | the proposals shall be submitted by one or more Member States or, with the agreement of the Member States concerned, by legal entities established in Member States; |
| (b) | the actions shall relate to the sections or nodes identified by Member States in the Annexes to the Military Requirements for Military Mobility within and beyond the EU as adopted by the Council on 20 November 2018, or any subsequent list adopted thereafter, and to any further indicative list of priority projects that are identified by Member States in accordance with the Military Mobility Action Plan; |
| (c) | the actions may relate both to the upgrading of existing infrastructure components or to the construction of new infrastructure components taking into account the infrastructure requirements referred to in paragraph 2 of this Article; |
| (d) | actions implementing a level of infrastructure requirement going beyond the level required for dual use shall be eligible; however, their cost shall only be eligible up to the level of costs corresponding to the level of requirements necessary for dual use; actions relating to infrastructure used only for military purposes shall not be eligible; |
| (e) | actions under this Article shall only be funded from the amount in accordance with Article 4(2), point (a)(iii), of this Regulation. |
2. The Commission shall adopt an implementing act specifying, where necessary, the infrastructure requirements applicable to certain categories of dual-use infrastructure actions and the evaluation procedure regarding the actions connected with dual-use infrastructure actions. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 24(2).
3. Following the interim evaluation of the CEF provided for in Article 23(2), the Commission may propose to the budgetary authority that it transfer the money that has not been committed from Article 4(2), point (a)(iii), to Article 4(2), point (a)(i).
CHAPTER III - GRANTS
Article 13
Grants
Grants under the CEF shall be awarded and managed in accordance with Title VIII of the Financial Regulation.
Article 14
Award criteria
1. Transparent award criteria shall be laid down in the work programmes referred to in Article 20 and in the calls for proposals, taking into account, to the extent applicable, only the following elements:
| (a) | economic, social and environmental impact, including climate impact (project life cycle benefits and costs), soundness, comprehensiveness and transparency of the analysis; |
| (b) | innovation and digitalisation, safety, interoperability and accessibility aspects, including for persons with reduced mobility; |
| (c) | cross-border dimension, network integration and territorial accessibility, including for European islands and outermost regions; |
| (d) | Union added value; |
| (e) | synergies between the transport, energy and digital sectors; |
| (f) | maturity of the action in the light of the development of the project; |
| (g) | soundness of the maintenance strategy proposed for the project upon completion; |
| (h) | soundness of the implementation plan proposed; |
| (i) | catalytic effect of Union financial support on investment; |
| (j) | need to overcome financial obstacles such as those caused by insufficient commercial viability, high upfront costs or the lack of market finance; |
| (k) | potential for dual use in the context of military mobility; |
| (l) | consistency with Union and national energy and climate plans, including the “energy efficiency first” principle. |
2. The assessment of proposals against the award criteria shall take into account, where relevant, the resilience to the adverse impacts of climate change through a climate vulnerability and risk assessment, including the relevant adaptation measures.
3. The assessment of proposals against the award criteria shall, where relevant, as specified in the work programmes, ensure that actions supported by the CEF that include PNT technology are technically compatible with the Galileo and EGNOS programmes and with the Copernicus programme.
4. As regards actions relating to the transport sector, the assessment of proposals against the award criteria shall, where applicable, ensure that proposed actions are consistent with the corridor work plans and implementing acts pursuant to Article 47 of Regulation (EU) No 1315/2013 and that they take into account the consultative opinion of the responsible European Coordinator pursuant to Article 45(8) thereof. The assessment shall also consider whether the implementation of actions financed by the CEF risks causing disruption to freight and passenger flows on the section of the line concerned by the project and whether those risks have been mitigated.
5. As regards actions relating to cross-border projects in the field of renewable energy, the award criteria shall take into account the conditions laid down in Article 7(4).
6. As regards actions relating to projects of common interest in the field of digital connectivity, the award criteria set out in the work programmes and the calls for proposals shall take into account the criteria laid down in Article 8(4).
Article 15
Co-financing rates
1. For studies, the amount of Union financial support shall not exceed 50 % of the total eligible cost. For studies financed with the amounts transferred from the Cohesion Fund, the maximum co-financing rates shall be those applicable to the Cohesion Fund as specified in paragraph 2, point (c).
2. For works in the transport sector, the following maximum co-financing rates shall apply:
| (a) | for works relating to the specific objectives referred to in Article 3(2), point (a)(i), the amount of Union financial support shall not exceed 30 % of the total eligible cost; however, the co-financing rates may be increased to a maximum of 50 % for the actions:
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| (b) | for works relating to the specific objectives referred to in Article 3(2), point (a)(ii), the amount of Union financial support shall not exceed 50 % of the total eligible cost; however, the co-financing rates may be increased to a maximum of 85 % if the necessary resources are transferred to the CEF pursuant to Article 4(13); |
| (c) | as regards the amounts transferred from the Cohesion Fund, the maximum co-financing rates shall not exceed 85 % of the total eligible costs; |
| (d) | as regards the amounts from the European Strategic Investment heading of EUR 1 559 800 000, as referred to in Part II, first paragraph, first indent, of the Annex, for the completion of missing major cross-border railway links between Member States eligible for funding from the Cohesion Fund, the maximum co-financing rates shall not exceed 85 % of the total eligible costs; |
| (e) | as regards actions relating to cross-border links, the increased maximum co-financing rates provided for in points (a), (c) and (d) of this paragraph may only apply to actions that demonstrate a high degree of integration in the planning and implementation of the action for the purpose of the award criterion referred to in Article 14(1), point (c), for instance through the establishment of a single project company, a joint governance structure, a bilateral legal framework or by an implementing act pursuant to Article 47 of Regulation (EU) No 1315/2013; in addition, the co-financing rate applicable to projects carried out by integrated management structures, including joint ventures, in accordance with Article 11(2), point (a), may be increased by 5 %. |
3. For works in the energy sector, the following maximum co-financing rates shall apply:
| (a) | for works relating to the specific objectives referred to in Article 3(2), point (b), the amount of Union financial support shall not exceed 50 % of the total eligible cost; |
| (b) | the co-financing rates may be increased to a maximum of 75 % of the total eligible cost for actions contributing to the development of projects of common interest which, based on the evidence referred to in Article 14(2) of Regulation (EU) No 347/2013, provide a high degree of regional or Union-wide security of supply, strengthen the solidarity of the Union or offer highly innovative solutions. |
4. For works in the digital sector, the following maximum co-financing rates shall apply: for works relating to the specific objectives referred to in Article 3(2), point (c), the amount of Union financial support shall not exceed 30 % of the total eligible cost.
The co-financing rates may be increased:
| (a) | up to 50 % for actions with a strong cross-border dimension, such as uninterrupted coverage with 5G systems along major transport paths or deployment of backbone networks between Member States and between the Union and third countries; and |
| (b) | up to 75 % for actions implementing the Gigabit connectivity of socioeconomic drivers. |
Actions providing local wireless connectivity in local communities, when implemented via low value grants, may be funded by Union financial support covering up to 100 % of the eligible costs, without prejudice to the principle of co-financing.
5. The maximum co-funding rate applicable to actions referred to in Article 10(1) shall be the highest maximum co-funding rate applicable to the sectors concerned. In addition, the co-financing rate applicable to those actions may be increased by 10 %.
6. In each of the transport, energy and digital sectors, as regards works undertaken in outermost regions, a specific maximum co-funding rate of 70 % shall apply.
Article 16
Eligible costs
The following cost-eligibility criteria shall apply, in addition to the criteria set out in Article 186 of the Financial Regulation:
| (a) | only expenditure incurred in Member States is eligible, except where the project of common interest or cross-border projects in the field of renewable energy involves the territory of one or more third countries as referred to in Article 5 or Article 11(4) of this Regulation or international waters, and where the action is indispensable to the achievement of the objectives of the project concerned; |
| (b) | the cost of equipment, facilities and infrastructure which is treated as capital expenditure by the beneficiary is eligible up to its entirety; |
| (c) | expenditure related to the purchase of land is not an eligible cost, except for funds transferred from the Cohesion Fund in the transport sector in accordance with Article 64 of Regulation (EU) 2021/1060; |
| (d) | eligible costs shall not include value added tax. |
Article 17
Combination of grants with other sources of financing
1. Grants may be used in combination with financing from the European Investment Bank or National Promotional Banks or other development and public financial institutions, as well as from private-sector finance institutions and private-sector investors, including through public private partnerships.
2. The use of grants referred to in paragraph 1 may be implemented through dedicated calls for proposals.
Article 18
Reduction or termination of the grants
1. In addition to the grounds specified in Article 131(4) of the Financial Regulation, the amount of the grant may, except in duly justified cases, be reduced on the following grounds:
| (a) | for studies, the action has not started within one year following the starting date indicated in the grant agreement; |
| (b) | for works, the action has not started within two years following the starting date indicated in the grant agreement; |
| (c) | following a review of the progress of the action, it is established that the implementation of the action has suffered such major delays that the objectives of the action are unlikely to be achieved; |
2. The grant agreement may be amended or terminated on the basis of the grounds specified in paragraph 1.
3. Before any decision regarding the reduction or termination of a grant is taken, the case shall be examined comprehensively and the beneficiaries concerned shall be given the possibility to submit their observations within a reasonable time-frame.
4. Available commitment appropriations resulting from the application of paragraph 1 or 2 of this Article shall be distributed to other work programmes proposed under the corresponding financial envelope set out in Article 4(2).
Article 19
Cumulative and alternative funding
1. An action that has received a contribution under the CEF may also receive a contribution from another Union programme, including funds under shared management, provided that the contributions do not cover the same costs. The rules of the relevant Union programme shall apply to the corresponding contribution to the action. The cumulative funding shall not exceed the total eligible costs of the action. The support from the different Union programmes may be calculated on a pro-rata basis in accordance with the documents setting out the conditions for support.
2. The Seal of Excellence label shall be awarded to actions which comply with the following cumulative conditions:
| (a) | they have been assessed in a call for proposals under the CEF; |
| (b) | they comply with the minimum quality requirements of that call for proposals; |
| (c) | they cannot be financed under that call for proposals due to budgetary constraints. |
It shall be possible for actions that have been awarded a Seal of Excellence label in accordance with the first subparagraph to receive support from the ERDF in accordance with Article 67(5) of Regulation (EU) 2021/1060 or from the Cohesion Fund, without any further assessment, and provided that such actions are consistent with the objectives and rules of the Fund concerned.
CHAPTER IV - PROGRAMMING, MONITORING, EVALUATION AND CONTROL
Article 20
Work programmes
1. The CEF shall be implemented by work programmes referred to in Article 110 of the Financial Regulation.
2. In order to provide transparency and predictability and to enhance the quality of the projects, the Commission shall adopt by 15 October 2021 the first multiannual work programmes. Those first multiannual work programmes shall include the timetable of the calls for proposals for the first three years of the CEF, their topics and indicative budget, as well as a prospective framework covering the entire programming period.
3. The work programmes shall be adopted by the Commission by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 24(2).
4. When adopting work programmes in the energy sector, the Commission shall give particular consideration to projects of common interest and related actions that aim to further integrate the internal market for energy, ending energy isolation and eliminating electricity interconnection bottlenecks, with an emphasis on those projects contributing to the achievement of the interconnection target of at least 10 % by 2020 and 15 % by 2030, as well as to projects contributing to synchronisation of electricity systems with Union networks.
5. In accordance with Article 200(2) of the Financial Regulation, the authorising officer responsible may, where appropriate, organise the selection procedure in two stages as follows:
| (a) | applicants shall submit a simplified dossier containing relatively brief information for the purposes of project preselection based on a limited set of criteria; |
| (b) | applicants short-listed at the first stage shall submit a complete dossier after closure of the first stage. |
Article 21
Granting of Union financial support
1. Following every call for proposals based on the work programmes referred to in Article 20, the Commission shall adopt an implementing act setting the amount of financial support to be granted to the projects selected or to parts thereof and specifying the conditions and methods for their implementation. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 24(2).
2. During the implementation of the grant agreements the beneficiaries and the Member States concerned shall be informed by the Commission regarding changes to the grant amounts and the final amounts paid.
3. The beneficiaries shall submit reports as defined in the respective grant agreements without prior approval of the Member States. The Commission shall provide Member States with access to the reports regarding actions located on their territories.
Article 22
Monitoring and reporting
1. Indicators to report on the progress of the CEF towards the achievement of the general and specific objectives laid down in Article 3 are set out in Part I of the Annex.
2. To ensure effective assessment of the CEF’s progress towards the achievement of its objectives, the Commission is empowered to adopt delegated acts, in accordance with Article 26, to amend Part I of the Annex with regard to the indicators where considered necessary as well as to supplement this Regulation with provisions on the establishment of a monitoring and evaluation framework.
3. The performance reporting system shall ensure that data for monitoring the implementation and the results of the CEF are suitable for an in-depth analysis of the progress achieved, including for climate tracking, and that they are collected efficiently, effectively and in a timely manner. To that end, proportionate reporting requirements shall be imposed on recipients of Union funds and, where appropriate, on Member States.
4. The Commission shall improve the dedicated internet site, by publishing, in real time, a map with the projects that are being implemented, together with relevant information, including impact assessments and the value, beneficiary, implementing entity and state of play of the project. The Commission shall also present progress reports every two years. Those progress reports shall include the information on the implementation of the CEF, in accordance with the general and specific objectives laid down in Article 3, clarifying whether the different sectors are on track, whether the total budgetary commitment is in line with the total amount allocated, whether the on-going projects are sufficiently complete, and whether it is still feasible and appropriate to deliver them.
Article 23
Evaluation
1. Evaluations shall be carried out in a timely manner so that their results can be fed into the decision-making process.
2. An interim evaluation of the CEF shall be carried out once there is sufficient information available about the implementation of the CEF, but no later than four years after the start of implementation of the CEF.
3. At the end of the implementation of the CEF, but no later than four years after the end of the period specified in Article 1, the Commission shall carry out a final evaluation of the CEF.
4. The Commission shall submit the conclusions of the evaluations accompanied by its observations, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.
Article 24
Committee procedure
1. The Commission shall be assisted by the CEF Coordination Committee, which may meet in different formations depending on the respective topic. That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.
2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.
Article 25
Delegated acts
1. The Commission is empowered to adopt delegated acts in accordance with Article 26, supplementing this Regulation by:
| (a) | establishing a monitoring and evaluation framework based on the indicators as set out in Part I of the Annex; |
| (b) | laying down rules regarding the selection of cross-border projects in the field of renewable energy additional to those in Part IV of the Annex, and establishing and updating a list of selected cross–border projects in the field of renewable energy. |
2. Subject to Article 172, second subparagraph, TFEU, the Commission is empowered to adopt delegated acts in accordance with Article 26 of this Regulation:
| (a) | to amend Part III of the Annex regarding the definition of the transport core network corridors and pre-identified sections on the comprehensive network; |
| (b) | to amend Part V of the Annex regarding the identification of digital connectivity projects of common interest. |
Article 26
Exercise of the delegation
1. The power to adopt delegated acts 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 22(2) and Article 25 shall be conferred on the Commission until 31 December 2028.
3. The delegation of power referred to in Article 7(2), Article 22(2) and Article 25 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 7(2), Article 22(2) and Article 25 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and 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.
Article 27
Information, communication and publicity
1. The recipients of Union funding shall acknowledge the origin of those funds and ensure the visibility of the Union funding, in particular when promoting the actions and their results, by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public.
2. The Commission shall implement information and communication actions relating to the CEF, to actions taken pursuant to the CEF and to the results obtained. Financial resources allocated to the CEF shall also contribute to the corporate communication of the political priorities of the Union, insofar as those priorities are related to the objectives referred to in Article 3.
3. Transparency and public consultation shall be ensured in compliance with the applicable Union and national law.
Article 28
Protection of the financial interest of the Union
Where a third country participates in the CEF by means of a decision adopted pursuant to an international agreement or on the basis of any other legal instrument, the third country shall grant the necessary rights and access required for the authorising officer responsible, OLAF and the Court of Auditors to comprehensively exercise their respective competences. In the case of OLAF, such rights shall include the right to carry out investigations, including on-the-spot checks and inspections, as provided for in Regulation (EU, Euratom) No 883/2013.
CHAPTER V - TRANSITIONAL AND FINAL PROVISIONS
Article 29
Repeal and transitional provisions
1. Regulations (EU) No 1316/2013 and (EU) No 283/2014 are repealed.
2. Without prejudice to paragraph 1, this Regulation shall not affect the continuation or modification of actions initiated pursuant to Regulation (EU) No 1316/2013, which shall continue to apply to those actions until their closure.
3. The financial envelope for the CEF may also cover the technical and administrative assistance expenses necessary to ensure the transition between the CEF and the measures adopted pursuant to Regulation (EU) No 1316/2013.
4. If necessary, appropriations may be entered in the Union budget beyond 2027 to cover the expenses provided for in Article 4(5), to enable the management of actions not completed by 31 December 2027, in accordance with this Regulation.
Article 30
Entry into force
This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.
It shall apply from 1 January 2021.
This Regulation shall be binding in its entirety and directly applicable in all Member States.