Explanatory Memorandum to 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. |
|---|---|
| source | COM(2018)438  |
| date | 06-06-2018 |
1. CONTEXT OF THE PROPOSAL
This proposal aims at establishing the legal basis for the Connecting Europe Facility (CEF) for the period beyond 2020. It provides for a date of application as of 1 January 2021 and is presented for a Union of 27 Member States, in line with the notification by the United Kingdom of its intention to withdraw from the European Union and Euratom based on Article 50 of the Treaty on European Union received by the European Council on 29 March 2017.
• Reasons for and objectives of the proposal
The Commission presented on 2 May 2018 its proposal 1 for the Multi-annual Financial Framework beyond 2020, including an amount of EUR 42,265 million for the Connecting Europe Facility.
In order to stimulate job creation and achieve smart, sustainable and inclusive growth, the Union needs an up-to-date, high-performance infrastructure to help connect and integrate the Union and all its regions, in the transport, telecommunications and energy sectors. Those connections are key for the free movement of persons, goods, capital and services. The trans-European networks facilitate cross-border connections, foster greater economic, social and territorial cohesion and contribute to a more competitive social market economy and to combating climate change.
The vision is for Europe to move towards zero-fatalities, zero-emissions and zero-paper mobility, to become a world leader in renewable energy and to be a front-runner in the digital economy. A modern, clean, smart, sustainable, inclusive, safe and secure infrastructure will provide tangible benefits to European citizens and businesses, allowing them to travel, ship goods, have access to energy and high quality digital services in an efficient way.
For this purpose, CEF supports investment in transport, energy and digital infrastructure through the development of the trans-European networks (TEN). In the period 2021-2027, it is proposed that it also promotes cross-border cooperation on renewable energy generation.
CEF focuses on projects of highest European added value and catalyses investments towards projects with a cross-border impact and European-wide interoperable systems and services, for which the continuity of funding support after 2020 is essential. With its efficient modus operandi, CEF addresses market failures and helps leverage further investment from other sources, notably the private sector, in synergy and complementarity with InvestEU and other Union programmes.
CEF “is designed to foster investment in the trans-European networks. Those networks and cross-border cooperation are crucial not only to the functioning of the Single Market but they are also strategic to implement the Energy Union, the Digital Single Market and the development of sustainable transport modes. Without EU intervention, private operators and national authorities have insufficient incentive to invest in cross-border infrastructure projects” 2 .
Reflecting the importance of tackling climate change in line with the Union’s commitments to implement the Paris Agreement on Climate Change and the commitment to the United Nations Sustainable Development Goals, the Commission proposal for the 2021-2027 Multiannual Financial Framework sets a more ambitious goal for climate mainstreaming across all EU programmes, with an overall target of 25% of EU expenditure contributing to climate objectives. A major contribution towards this target is expected to be provided by CEF, with a target of 60% of its envelope contributing to climate objectives. The contribution of this programme to the achievement of this overall objective will be tracked through an EU climate marker system at an appropriate level of disaggregation, including the use of more precise methodologies where these are available. The Commission will continue to present the information annually in terms of commitment appropriations in the context of the annual draft budget.
To support the full utilisation of the potential of the programme to contribute to climate objectives, the Commission will seek to identify relevant actions throughout the programme preparation, implementation, review and evaluation processes.
The future needs for decarbonisation and digitalisation of the Union economy will imply a growing convergence of the transport, energy and digital sectors. Synergies between the three sectors should thus be harnessed to the full extent, maximising the effectiveness and efficiency of Union support. Examples of synergy areas include connected and autonomous mobility, clean mobility based on alternative fuels, energy storage and smart grids. In order to promote projects encompassing more than one sector, incentives will include the possibility to apply the highest co-funding rate of the sectors concerned. In addition, it will be possible for each sector to accept as eligible costs ancillary elements pertaining to another sector, for instance renewable energy generation within a transport project. In order to incentivize and prioritise cross-sectoral proposals, the synergy dimension of a proposed action will be assessed under the award criteria. Synergies will be implemented through joint work programmes and joint financing involving the relevant sectors.
For transport, CEF aims at contributing to the completion of both layers of the TEN-T: the strategic backbone (i.e. the core network) by 2030 and its more extensive layer (i.e. the comprehensive network) by 2050. It also supports the deployment of European traffic management systems for all traffic modes, in particular for air transport and railways, and helps the EU transition towards smart, sustainable, inclusive, safe and secure mobility (for example by establishing a European network of charging infrastructure for alternative fuels). It is estimated that the completion of the TEN-T core network by 2030 will generate 7.5 million job-years between 2017 and 2030 and an additional GDP increase of 1.6 % in the Union in 2030.
In addition, following the Joint Communication on improving military mobility in the European Union of November 2017 3 and the Action Plan on Military Mobility adopted on 28 March 2018 by the Commission and the High Representative of the Union for Foreign Affairs and Security Policy 4 , Union funding for the implementation of the civilian-military dual-use transport projects should be implemented through the CEF.
For energy, the focus is on completing the trans-European energy networks through the development of projects of common interest relating to further integration of the internal energy market and interoperability of networks across borders and sectors; sustainable development by enabling decarbonisation in particular through integrating renewable energy sources; and security of supply inter alia through the smartening and digitalisation of the infrastructure. It also contributes to the cost-effective achievement of the objectives of the Paris Agreement on Climate Change as well as the 2030 energy and climate and long-term decarbonisation objectives by integrating renewable energy through the development of appropriate infrastructure and by supporting a limited number of cross-border projects in the field of renewable energy.
For digital, CEF maximises the benefits that all citizens, businesses and public administrations can get from the Digital Single Market. The deployment of very high capacity digital networks featuring a high level of security supports all innovative digital services, including connected mobility and other services of public interest. In addition, it contributes to ensure that all main socio-economic drivers such as schools, hospitals, transport hubs, main providers of public services and digitally intensive enterprises have access to future-oriented broadband connections (1 Gbit/second) by 2025. It contributes to the overall connectivity of the European territories, including that of the outermost regions, to the Internet.
• Consistency with existing policy provisions in the policy area
The overarching objective of CEF is to support the achievement of the EU policy objectives in the transport, energy and digital sector, as regards the trans-European networks, by enabling or accelerating investments into projects of common interest, and to support cross-border cooperation on renewable energy generation. It will aim at maximising synergies among the sectors covered by CEF and with the other EU programmes.
In the transport sector, CEF contributes to EU long-term objectives regarding the completion of the TEN-T core network by 2030 5 and progress towards the completion of the TEN-T comprehensive network by 2050. This includes the transition towards clean, competitive and connected mobility 6 , the deployment of SESAR and European Rail Traffic Management System (ERTMS) and the low-carbon transition through innovative infrastructure including an EU backbone of charging infrastructure by 2025.
In the energy sector, CEF contributes to the completion of the TEN-E priority corridors and thematic areas 7 , in alignment with “Clean Energy for all Europeans” 8 objectives, to ensure the functioning of the Union internal energy market providing security of supply (inter alia through smartening and digitalisation of the infrastructure) and contributing to sustainable development and climate objectives by integrating renewable energy sources.
For renewable energy sources, CEF will contribute to achieving the proposed EU 2030 target in a cost-effective way, with regards to the energy transition and the mainstreaming of renewable energy policies including sector coupling.
In the digital sector, CEF contributes to achieving the digital connectivity infrastructure of a Gigabit society 9 , as un underlying condition for a functional digital single market 10 , as well as providing the necessary infrastructure to properly support the EU-wide digital transformation of economy and society.
• Consistency with other Union policies
Transport, energy and digital infrastructure will be supported to various degrees by a number of EU financial programmes and instruments, including CEF, the European Regional Development Fund (ERDF) and Cohesion Fund, Horizon Europe, InvestEU and LIFE. It is important to make the most efficient use of the various Union financing programmes and instruments and thus maximise the complementarity and value-added of investments supported by the Union. This would be achieved via a streamlined investment process enabling visibility on the transport pipeline and consistency across relevant Union programmes in close cooperation with Member States.
The Programme's actions should be used to address market failures or sub-optimal investment situations, in a proportionate manner, without duplicating or crowding out private financing and have a clear European added value. This will ensure consistency between the actions of the programme and EU State aid rules, avoiding undue distortions of competition in the internal market.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
Trans-European networks are covered under Article 170 TFEU, which specifies: “The Union shall contribute to the establishment and development of trans-European networks in the areas of transport, telecommunications and energy infrastructures”. The right for the EU to act in the field of infrastructure financing is set out in Article 171 which provides that the Union "may support projects of common interest supported by Member States, (…) particularly through feasibility studies, loan guarantees or interest-rate subsidies". Article 172 TFEU specifies that the guidelines and other measures referred to in Article 171 (1) shall be adopted by the European Parliament and the Council, acting in accordance with the ordinary legislative procedure and after consulting the Economic and Social Committee and the Committee of the Regions.''
The promotion of renewable energy sources is covered under Article 194 TFEU, which explicitly lists it as one of the objectives of EU energy policies. Since renewable projects having a cross-border nature contribute to a cost-effective achievement of the Union target proposed for 2030, the legislative instrument should also be based on Article 194 TFEU.
The legislative instrument and the type of measure (i.e. funding) are both defined in the TFEU, which provides the legal basis for CEF, and states that the tasks, priority objectives and the organisation of the trans-European networks may be defined in regulations.
• Subsidiarity (for non-exclusive competence)
The scale of the problems targeted by CEF specifically requires EU action since they are by nature EU-dimensional and can be more efficiently resolved at Union level, leading to overall greater benefits, more accelerated implementation and reduction of costs if Member States act together. The investment needs in TENs beyond 2020 are very significant and exceed the resources available at Member State level.
Renewable energy projects are also expected to be increasingly financed by the market in the future. Potential support in this area would only compensate the cost for overcoming barriers and lacking incentives associated with cooperation beyond borders amongst Member States and/or the barriers preventing sector integration. Such coordination between Member States can bring economies of scale, avoid duplication of infrastructures, increase deployment across Europe to better reflect the available potential, contribute to policy convergence and thus to further market integration, knowledge transfer and uptake and replication of innovative technologies in the European home market.
• Proportionality
The proposal complies with the proportionality principle and falls within the scope for action in the field of the trans-European networks, as defined in Article 170 of the TFEU and Article 194 of the TFEU for cross-border projects in the field of renewable energy. The action envisaged by this proposal is specifically limited to the European dimension of transport, energy and digital infrastructure and cross-border deployment of renewable energy sources.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Ex-post evaluations/fitness checks of existing legislation
In accordance with the current CEF Regulation 11 , the Commission, in cooperation with the Member States and the beneficiaries concerned, was required to present a report 12 on the mid-term evaluation of CEF to the European Parliament and the Council. This report was adopted by the Commission on 13 February 2018 and was accompanied by a Commission staff working document (SWD). The evaluation assessed the Programme’s overall performance in light of its general and sectoral objectives, as well as compared to what has been achieved as a result of national or EU action. In line with the Commission’s Better Regulation Guidelines, the evaluation was carried out according to five criteria: effectiveness, efficiency, relevance, coherence and EU added value.
Overall, the conclusions of the Mid-Term Evaluation of CEF were as follows:
"The evaluation illustrated that after the first three and a half years of CEF implementation, the programme is on track, although it is much too early to measure results given that the programme implementation is still at an early stage. Moreover, the performance framework provided in the Regulation has proven lacking well defined or robust indicators. With this reservation in mind, the evaluation showed that:
·CEF is an effective and targeted instrument for investment in trans-European infrastructure (TEN) in transport, energy and the digital sector. Since 2014, it has invested EUR 25 billion, which has resulted in approximately EUR 50 billion of overall infrastructure investment in the EU. CEF contributes to the Commission’s priorities on jobs, growth and investment, the internal market, Energy Union and climate, and the Digital Single Market. In so doing, it is strengthening the competitiveness and modernisation of the EU economy.
·CEF brings high European added value for all Member States by supporting connectivity projects with a cross-border dimension. Most funding is awarded to projects bridging missing links and removing bottlenecks, with the aim of ensuring the proper functioning of the EU internal market and territorial cohesion among Member States in the transport, energy and digital sectors. Projects in energy also provide security of supply and are key for the cost-effective decarbonisation and modernisation of the economy. CEF is also instrumental in the deployment of EU-wide new systems in traffic management and safety (e.g. SESAR for aviation, ERTMS for railways), high-performance electricity lines and smart grids essential for the rapid intake of renewable non-carbon energy sources, and in the roll-out of broadband and interconnected Digital Services (such as Open Data, e-Health, e-Procurement, eIdentification and eSignature).
·The direct management of CEF grants has proven very efficient, with a strong project pipeline and a competitive selection process, a focus on EU policy objectives, coordinated implementation and the full involvement of Member States. The INEA executive agency has a very good track record on the financial management of CEF and on optimising the budget, particularly thanks to its flexibility in quickly re-directing money unspent by certain actions to financing new ones.
·For the first time, a share of the cohesion budget (EUR 11.3 billion for transport) was executed under direct management within the CEF framework. 100 % of the envelope was allocated during the first half of the programme period, almost exclusively on sustainable transport modes. Targeted technical assistance, lower administrative costs for Member States, clear funding priorities and a solid project pipeline stemming from the continuity of projects and studies formerly supported by the TEN-T Programme or by the Cohesion Policy instruments contributed to the fast allocation of funds.
·CEF has continued to use and develop innovative financial instruments. However, their deployment has been limited due to the new possibilities offered by European Fund for Strategic Investment. The use of the CEF financial instruments is expected to take up during the second half of the programme when complementarity between the CEF specific financial instruments and EFSI will have been ensured." The Connecting Europe Broadband Fund, building on contributions from CEF and EFSI, is expected to become operational in 2018 and fund the rollout of very high capacity networks in underserved areas, with an important leverage effect.
·“Moreover, a very positive first experience of blending grants with financial instruments was carried out in 2017 in transport, with EUR 2.2 billion funding requested for a call with an indicative budget of EUR 1 billion, enabling the use of grants to maximise the leverage of private or public funds.
·CEF spending in transport and energy is a major contributor to the EU’s target of at least 20 % of the total EU budget to be dedicated to climate action-related spending.” In the area of energy more than 50% of the CEF energy budget was allocated to electricity transmission and smart grids therefore contributing to the energy transition.
·“In the Telecom sector, the dual focus of CEF on digital cross border services of public interest and communication and computing infrastructure has shown that the programme has an important impact on achieving the EU digital single market goals, enabling citizens and businesses to access high quality digital services across Europe. It has helped develop and implement common policies to address societal challenges including the digital transformation of healthcare, cybersecurity and digitisation of governments. However, due to the limited resources CEF Telecom could only support the very first steps towards a full cross border digital infrastructure in areas of public interest.” Given the limited envelope allocated for broadband under CEF vis-à-vis the size of the investment gap, it was necessary to implement it in an innovative way and to aim at maximising leverage in order to ensure effectiveness. However, due to the complex set up of the dedicated financial instruments, the investments on the ground will only materialise at a late stage in the implementation of the programme.
·“CEF has also tested cross-sectoral synergies, but has been limited by constraints in the current legal/budgetary framework. The sectoral policy guidelines and the CEF instrument would need to be made more flexible to facilitate synergies and be more responsive to new technological developments and priorities such as digitalisation, while accelerating decarbonisation and addressing common societal challenges such as cybersecurity.
·The completion of the TENs defined in the EU policy priorities will still require considerable investments, part of which will depend on continued EU support. The size of CEF currently makes it possible to address only some of the identified market failures in all three sectors. Therefore, potential exists for unlocking further public and private investment if additional EU budget was made available to address market failures."
The proposal to make cross-border cooperation on renewable energy eligible for CEF funding is supported by relevant findings of the REFIT-evaluation of the Renewables Directive of 2016 13 .
• Stakeholder consultations
An online public consultation organised as part of a series of public consultations covering the entire spectrum of EU future funding was launched on 10 January 2018 and remained opened for a period of 8 weeks, until 9 March 2018. While the public consultation covered the topic of strategic infrastructure funding (comprising CEF, Galileo and ITER), over 96% of responses related to CEF.
Overall, stakeholders reiterated their support for the CEF programme and highlighted the key role it plays in contributing to the EU’s objectives in areas such as the completion of the TENs, promoting economic growth and jobs across the EU and the transition to a low-carbon and climate-resilient economy and society. Stakeholders encouraged additional flexibilities in the new programme to encourage further synergies across the three sectors.
Respondents in the transport sector stressed the importance of CEF in facilitating cross-border projects as well as removing bottlenecks and missing links.
The energy-related responses to a very large extent reaffirmed the important contribution of CEF towards the completion of the trans-European energy infrastructure network and by extension towards the fulfilment of the Energy Union targets yielding significant benefits for all European citizens, with the transition to a low carbon economy scoring highest among the future challenges.
Stakeholders called for an increased budget in order to accelerate the decarbonisation and digitalisation of both the energy and the transport sector while increasing connectivity across the EU.
The digital respondents highlight the central role of broadband connectivity as a catalyst for the economic and social development across society and sectors. In order to increase the competitiveness of the EU, they called for increased investments in connectivity and 5G, which would help improve economic performance, generate jobs in the EU and promote a qualitative leap in the transition to a Digital Society.
Stakeholders at the same time provided useful feedback on the areas that require further improvement or development. This is further detailed in the consultation report in Annex 2 of the accompanying Impact Assessment.
• Impact assessment
The Commission proposal is based on an Impact Assessment (IA) submitted to the Regulatory Scrutiny Board on 21 March 2018 and for which the Board issued a positive opinion (ref. number "MFF – CEF") with reservations. The Board in particular recommended reinforcing the description of the arrangements for monitoring and evaluation of the Programme, better explaining the coherence with other EU programmes and explaining in more detail how the extensions of the Programme's scope reinforce the cross-border character of CEF. The recommendations provided by the Board in its opinion have been reflected in the final version of the IA report. 14
In line with the general approach applied for all the MFF-related impact assessments, the IA for CEF focused on the changes and policy choices foreseen in the legislative proposal. The report in particular explained the structure and priorities for the proposed continuation of the CEF programme and looked into the options for a most optimal delivery. The IA report drew on lessons learned and experience from the current CEF with the recent mid-term evaluation of CEF used as the principle source of data (in addition to the results of the open public consultation organised as part of a series of public consultations covering the entire spectrum of EU future funding and of more targeted exchanges with stakeholders in the case of synergies and renewable energy).
Using the lessons learned and considering the new challenges and developments (in particular in the area of the digital sector), it was assessed whether the objectives needed to be adjusted for the continued programme. The challenges ahead for the new CEF programme were set out and the assessment was carried out on how CEF could deliver on the common objectives of the MFF such as simplification, greater flexibility and improved performance. The structure and priorities, the calibration with the current CEF as well as the expected delivery mechanism of the new programme were further discussed from the perspective of the Programme effectively attaining the set objectives. Alternative implementation options were assessed in particular for the extensions to the Programme’s scope of intervention, both in the digital pillar and for the cross-border projects in the field of renewable energy.
The IA also looked into options and capacities for reinforcing synergies between the sectors under the Programme. It assessed in particular the possibility to adopt joint work programmes covering specific priorities of several sectors and the removal of obstacles that have hampered synergies in the current period, notably as regards eligibility rules.
The Commission proposal corresponds accurately to the preferred policy option identified in the assessment.
• Regulatory fitness and simplification
In the framework of the Commission's global simplification measures under the post-2020 Multiannual Financial Framework (MFF), overall simplification efforts will impact the CEF programme delivery. The preparation of the next MFF was launched by the Commission with the publication of the White Paper on the Future of Europe in March 2017. The next steps were the publication of the Reflection Paper on the Future of EU Finances in June 2017 and the guidance documents on simplified programme basic acts provided by DG BUDG in November/December 2017. The results of this political process provided the top-down guidance for the next MFF which will affect the form of the post-2020 CEF programming period.
Overall simplification efforts for the post-2020 CEF regulation have been made according to the above described horizontal guidance. This is in line with all other funding programmes and will consequently affect the new CEF in particular in the simplification of cost options, co-funding rates, stakeholder involvement and in the development of programme objectives, monitoring and reporting. It will also provide for a further simplified legal framework for CEF through a streamlined CEF regulation and the possibility to delegate provisions and conditions to work programmes, facilitating further synergies between the three sectors and enabling CEF to adapt to future needs.
The programme simplification will lighten the regulatory burden and compliance costs for stakeholders involved in the Programme and will consequently have a positive impact on EU competitiveness in the sectors concerned. It will also enable further digitisation efforts pursuant to the better regulation Guidelines and in accordance with the digital support services already in place for the implementation of the Programme (e.g. TENtec information system).
4. BUDGETARY IMPLICATIONS
The Commission’s proposal for the Connecting Europe Facility includes the following amounts:
| Connecting Europe Facility 2021-2027 (figures in current prices – EUR) | |
| Transport: Including: General envelope Contribution from the Cohesion Fund: Support for military mobility: | 30,615,493,000 12,830,000,000 11,285,493,000 6,500,000,000 |
| Energy | 8,650,000,000 |
| Digital | 3,000,000,000 |
| Total | 42,265,493,000 |
Based on the positive experience from the implementation of the current CEF programme, the Commission proposes to continue the implementation of the new programme, for the three CEF sectors, with direct management by the European Commission and its Innovation and Networks Executive Agency (INEA).
As detailed in the Legislative Financial Statement, the proposed budget will cover all the necessary operational expenditure for the implementation of the Programme as well as the cost of human resources and other administrative expenditure in connection with the management of the Programme.
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
The implementation of the Programme will be delegated to INEA, with the exception of certain programme support actions that will be managed directly by the parent DGs.
The mid-term evaluation 15 of the current CEF 2014-2020, indicated that 'the direct management of CEF grants has proved very efficient, with a strong project pipeline and a competitive selection process, a focus on EU policy objectives, coordinated implementation and the full involvement of Member States. The INEA executive agency has a very good track record on the financial management of the CEF and on optimising the budget, particularly thanks to its flexibility in quickly re-directing money unspent by certain actions to financing new ones.'
It is thus proposed to maintain the current delivery mechanism. Improvements will however be introduced as regards simplification and flexibility.
Compared to the CEF 2014-2020, a simpler but more robust performance framework will be put in place to monitor the achievement of the Programme's objectives and its contribution to EU policy objectives. Indicators to monitor implementation and progress of the Programme will relate in particular to:
·Efficient and interconnected networks and infrastructure for smart, sustainable, inclusive, safe and secure mobility as well as adaptation to military mobility requirements;
·Contribution to interconnectivity and integration of markets, security of energy supply and sustainable development through enabling decarbonisation; contribution to cross-border cooperation in the field of renewable energy
·Contribution to the deployment of digital connectivity infrastructure throughout the European Union
The necessary data will be collected by INEA during the implementation and evaluation of supported actions. To this end, the conditions for applying for a grant and the model grant agreement will contain proportionate requirements on applicants and beneficiaries to provide the necessary data.
The Commission will carry out an interim and an ex-post evaluation of the Programme in order to assess its efficiency, effectiveness, relevance, coherence and value added, in conformity with Article 34 paragraph 3 of the Financial Regulation.
The Commission will communicate 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.
• Detailed explanation of the specific provisions of the proposal
Article 1 – Subject Matter
This Article introduces the subject matter of the Regulation, which is to establish CEF.
Article 2 – Definitions
This Article sets out the definitions relating to the Regulation.
Article 3 –Objectives
This Article establishes the general objective of the Programme, with emphasis on synergies among the transport, energy and digital sectors and the specific objectives for each sector.
Article 4 – Budget
This Article sets outs the total budget for the Programme. The budget is divided into transport (including a transfer from the Cohesion Fund and support for military mobility from the Defence cluster), energy and digital.
The Article includes a provision to cover all the necessary expenses pertaining to preparatory, monitoring, control, audit, evaluation and other activities; necessary studies, meetings of experts, corporate IT tools and any other technical and administrative assistance needed in connection with the management of the Programme.
The Article also states that expenditure for actions may be eligible from 1 January 2021 for the first work programmes.
The Article asserts that for the Cohesion Fund transfer in the transport sector, national allocations will represent 70% of the total transfer and will be respected until 31 December 2023. In addition, it states that Member States may request that resources allocated to them under shared management may be transferred to CEF.
Article 5 – Third Countries associated to the programme
This Article establishes the conditions for which third countries can participate in the Programme.
Article 6 – Implementation and forms of EU funding
This Article defines the management mode of CEF as direct management and in particular in the form of grants and procurement, as well as in the form of financial instruments within blending operations. The implementation of the Programme may be delegated to an executive agency.
Article 7 – Cross-border projects in the field of renewable energy
This Article relates to the identification of cross-border projects in the field of renewable energy and to the specific eligibility criteria applicable for those.
Article 8 - Projects of common interest in the area of digital connectivity infrastructure.
This Article relates to the identification of digital connectivity infrastructure projects of common interest and to the specific eligibility and prioritisation criteria applicable in view of supporting them through the Programme.
Article 9 – Eligible actions
This Article details the actions under each specific objective that are eligible for financial assistance under the Regulation.
This Article includes a provision allowing for a flexible approach regarding actions that in addition to addressing a specific objective of the Programme, also contribute to facilitating synergies amongst the transport, energy or digital sectors.
Article 10 – Synergies
This Article sets out the provisions applicable for synergy actions among the Programme sectors through either cross-sectoral work programmes or the co-funding of ancillary elements to an action providing that certain conditions as set out in the Article are met.
Contents
This Article sets out the criteria for persons and entities to be eligible for the Programme. It states that work programmes may provide for certain further conditions such as Member State agreement to the proposal.
Article 12 – Grants
This Article establishes that CEF grants will be awarded and managed in line with the Financial Regulation.
Article 13 – Award criteria
This Article provides a common reference for the three sectors concerning the award criteria as regards the assessment of a proposal.
It introduces specific requirements allowing to better take into account the corridor approach in the transport sector, notably where applicable, the corridor work plans and implementing acts pursuant to Article 47 of Regulation (EU) No 1315/2013 and the opinion of the responsible European Coordinator pursuant to Article 45 (8) of the same Regulation.
Article 14 – Co –financing rates
This Article sets the maximum co-financing rates applicable to each sector. It also provides for the maximum co-financing rates in the case of a cross-sectoral work programmes covering more than one sector with the view to facilitating synergies.
The Article also introduces a derogation concerning the amounts transferred from the Cohesion Fund.
Article 15 – Eligible costs
This article provides the criteria on eligible costs that apply in addition to the criteria set out in Article 186 of the Financial Regulation.
Article 16 – Combination of grants with other sources of financing
This Article ensures the possibility of using grants for 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.
In order to ensure sound financial management and to mitigate the risks linked with important delays that can occur in the case of major infrastructure projects, this Article defines the conditions for reduction of termination of the grants. It establishes that grants may be reduced or terminated if the action has not started within one year following the starting date indicated in the grant agreement or if, 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 likely not to be achieved.
Article 18 – Cumulative, complementary and combined funding
This Article ensures that an action that has received a contribution under the Programme may also receive a contribution from any other Union programme, provided that the contributions do not cover the same costs.
The Article provides for the possibility that a proposed action, which has been positively assessed under CEF but which may not be financed due to budgetary constraints, is funded by the European Regional Development Fund (ERDF) or the Cohesion Fund.
Article 19 – Work programmes
This Article establishes that the Programme will be implemented by work programmes adopted by the Commission by means of an implementing act in accordance with the examination procedure.
This Article provides a link to the Annex where the indicators to monitor the CEF programme can be found. The Article allows for the indicators to be amended by a delegated act. Moreover, a monitoring and evaluation framework will be developed to allow assessment of the progress of the programme towards achieving its objectives.
Article 21 – Evaluation
This Article requires the Commission to carry out an interim and an ex-post evaluation of the programme and to communicate 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 22 – Committee procedure
This Article establishes the CEF Coordination Committee within the meaning of Regulation (EU) No 182/2011. It specifies that the examination procedure foreseen at Article 5 of Regulation (EU) No 182/2011 will apply.
Article 23 – Delegated Acts
This Article allows for the Commission to adopt delegated acts relating to parts I, II, III, IV and V of the Annex.
Article 24 – Exercise of the delegation
This Article contains standard provisions on the delegation of powers.
Article 25 – Information, communication and publicity
This Article obliges the recipients of CEF funding to ensure the visibility of EU funding for their actions as well as obliging the Commission to communicate on CEF actions and results.
Article 26 – Protection of the financial interests of the Union
This Article relates to the competence of the European Anti-Fraud Office (OLAF) and the European Court of Auditors in relation with third countries associated to the Programme.
Article 27 – Repeal and transitional provisions
This Article repeals the previous CEF Regulation (Regulation (EU) No 1316/2013) and Regulation (EU) No 283/2014 on guidelines for trans-European networks in the area of telecommunications infrastructure.
Transitional provisions relating to CEF actions and technical and administrative assistance are also included.
Article 28 – Entry into force
This Article states that the Regulation shall apply from 1 January 2021.
Annex – Part I – Indicators
This Part of the Annex indicates the indicators used for monitoring the progress of the Programme in relation with its general and specific objectives.
Annex – Part II - Indicative percentages for the transport sector
This Part of the Annex contains indicative percentages for the distribution of budgetary resources in the transport sector.
Annex – Part III – Transport core network corridors and pre-identified sections; Pre-identified sections on the comprehensive network
This Part of the Annex defines the alignment of the core network corridors, including their pre-identified sections and provides an indicative list of cross-border sections on the comprehensive network.
Annex – Part IV – Identification of cross-border project in the field of renewable energy
This Part of the Annex defines the criteria and procedure to identify cross-border projects in the field of renewable energy
Annex – Part V -– Digital connectivity infrastructure projects of common interest
This Part of the Annex provides an indicative list of pre-identified digital connectivity projects of common interest.