REPORT on the proposal for a regulation of the European Parliament and of the Council on the public sector loan facility under the Just Transition Mechanism

Text proposed by the Commission

Amendment

(1) The Commission adopted a Communication on the European Green Deal on 11 December 20199 , drawing its roadmap towards a new growth policy for Europe and setting ambitious objectives to counter climate change and for environmental protection. In line with the objective to achieve climate neutrality in the Union by 2050 in an effective and fair manner, the European Green Deal announced a Just Transition Mechanism to provide means for facing the climate challenge while leaving no one behind. The most vulnerable regions and people are the most exposed to the harmful effects of climate change and environmental degradation. At the same time, managing the transition requires significant structural changes.

(1) The Commission adopted a Communication on the European Green Deal on 11 December 20199 , drawing its roadmap towards a new sustainable growth policy for Europe and setting ambitious objectives to counter climate change and for environmental protection. In line with the objective to achieve the Union's 2030 climate and energy targets, and to reach climate neutrality in the Union by 2050 at the latest in an effective and fair manner, as laid down in [Regulation (EU) 2020/XXX establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (the ‘European Climate Law’)], the European Green Deal announced a Just Transition Mechanism to provide means for facing the economic, social and environmental challenges of the transition to a climate neutral, environmentally-sustainable, energy and resource-efficient, circular economy, while leaving no one behind. The most vulnerable regions and people are the most exposed to the harmful effects of climate change and environmental degradation. At the same time, managing the transition requires significant structural changes.

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9 COM(2019) 640 final.

9 COM(2019) 640 final.

Text proposed by the Commission

Amendment

(1a) The financing and investment operations should be aligned with current policy priorities of the Union such as the European Green Deal and its commitment to achieving climate neutrality by 2050 at the latest, the ‘Strategy for shaping Europe’s digital future’ and the ‘European Pillar of Social Rights’. Those operations should support the creation and preservation of quality and sustainable jobs and cross-border activities within the Union and should contribute to the green and digital transition of the European economy.

Text proposed by the Commission

Amendment

(2) The Commission adopted a Communication on the European Green Deal Investment Plan10 on 14 January 2020, establishing the Just Transition Mechanism which focuses on the regions and sectors that are most affected by the transition given their dependence on fossil fuels, including coal, peat and oil shale or greenhouse gas-intensive industrial processes but have less capacity to finance the necessary investments. The Just Transition Mechanism consists of three pillars: a Just Transition Fund implemented under shared management, a dedicated just transition scheme under InvestEU, and a public sector loan facility to mobilise additional investments to the regions concerned.

(2) The Commission adopted a Communication on the European Green Deal Investment Plan10 on 14 January 2020, establishing the Just Transition Mechanism which focuses on the regions, people and sectors that are most affected by the transition given their dependence on fossil fuels, including coal, peat and oil shale or greenhouse gas-intensive industrial processes but have less capacity to finance the necessary investments towards climate neutrality. The Just Transition Mechanism consists of three pillars: a Just Transition Fund implemented under shared management, a dedicated just transition scheme under InvestEU, and a public sector loan facility to mobilise additional investments to the regions concerned.

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10 COM(2020) 21 final.

10 COM(2020) 21 final.

Text proposed by the Commission

Amendment

(3a) The Just Transition Fund is an essential part of the Union Recovery Plan and should remain a key part thereof, with corresponding significant resources.

Text proposed by the Commission

Amendment

(4) A public sector loan facility (the ‘Facility’) should be provided. It constitutes the third pillar of the Just Transition Mechanism, supporting public sector entities in their investments. Such investments should meet the development needs resulting from the transition challenges described in the territorial just transition plans as adopted by the Commission. The activities envisaged for support should be consistent with and complement those supported under the other two pillars of the Just Transition Mechanism.

(4) A public sector loan facility (the ‘Facility’) should be provided. It constitutes the third pillar of the Just Transition Mechanism, supporting public sector entities in their investments. Such investments should meet the development needs resulting from the transition challenges described in the territorial just transition plans as adopted by the Commission, and be in line with the objective of a climate-neutral Union by 2050. They should also support the overarching objectives of the European Green Deal, in particular the “do no significant harm" principle referred to in Regulation (EU) 2020/852 of the European Parliament and of the Council1a, and be in line with the framework for sustainable activities set out in EU taxonomy established by that Regulation. The activities envisaged for support should be consistent with and complement those supported under the other two pillars of the Just Transition Mechanism.

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1a Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).

Text proposed by the Commission

Amendment

(4a) The disruptive economic and social effects of the COVID-19 crisis have weakened public and private investment capacity, thereby limiting the financial resources essential for the transition to a climate-neutral and resource-efficient Union. In that regard and in the framework of Next Generation EU, the Facility should contribute to reducing that gap and enable Member States to undertake the necessary investments to foster the achievement of the Union's long-term sustainability priorities.

Text proposed by the Commission

Amendment

(5) In order to enhance the economic diversification of territories impacted by the transition, the Facility should cover a wide range of investments, on condition that they contribute to meet the development needs in the transition towards a climate neutral economy, as described in the territorial just transition plans. The investments supported may cover energy and transport infrastructure, district heating networks, green mobility, smart waste management, clean energy and energy efficiency measures including renovations and conversions of buildings, support to transition to a circular economy, land restoration and decontamination, as well as up- and re-skilling, training and social infrastructure, including social housing. Infrastructure developments may also include solutions leading to their enhanced resilience to withstand disasters. Comprehensive investment approach should be favoured in particular for territories with important transition needs. Investments in other sectors could also be supported if they are consistent with the adopted territorial just transition plans. By supporting investments that do not generate sufficient revenues, the Facility aims at providing public sector entities with additional resources necessary to address the social, economic and environmental challenges resulting from the adjustment to climate transition. In order to help identify investments with a high positive environmental impact eligible under the Facility, the EU taxonomy on environmentally sustainable economic activities may be used.

(5) In order to enhance the economic diversification and modernisation of territories impacted by the transition, the Facility should cover a wide range of investments, on condition that they contribute to meet the development needs in the transition towards the Union’s 2030 climate and energy targets, and a climate neutral economy by 2050, as described in the territorial just transition plans. The investments supported may cover technology to support the decarbonisation of the energy sector and environmentally-friendly and decarbonised transport, district heating networks, green, smart and sustainable mobility, investments in research and innovation activities, including in universities and public research institutions, fostering the transfer of advanced and market-ready technologies, investments in digitalisation, smart waste and water management, greenhouse gas emission reduction, clean energy and energy efficiency measures including renovations and conversions of buildings, support to transition to a circular economy, land restoration and decontamination as well as up- and re-skilling, training and social infrastructure, including social housing. Infrastructure developments may also include solutions leading to their enhanced resilience to withstand disasters. Comprehensive investment approach should be favoured in particular for territories with important transition needs. Investments in other sectors could also be supported if they are consistent with the adopted territorial just transition plans and reduce the socio-economic costs of the transition towards a climate-neutral economy by 2050. By supporting investments that do not generate sufficient revenues, the Facility aims at providing public sector entities with additional resources necessary to address the social, economic and environmental challenges resulting from the adjustment to climate transition. In order to help identify investments with a high positive environmental impact eligible under the Facility, the EU taxonomy on environmentally sustainable economic activities should be used and the "do no significant harm" principle referred to in Regulation (EU) 2020/852 adhered to.

Text proposed by the Commission

Amendment

(5a) Horizontal principles as set out in Article 3 of the Treaty on the European Union (TEU) and in Article 10 of the Functioning of the European Union (TFEU), including the principles of subsidiarity and proportionality set out in Article 5 TEU should be respected in the implementation of the Facility, taking into account the Charter of Fundamental Rights of the European Union. Member States should also respect the obligations of the United Nations Convention on the Rights of the Child and of the United Nations Convention on the Rights of Persons with Disabilities and ensure accessibility in line with its Article 9 and in accordance with Union law harmonising accessibility requirements for products and services. The Facility should not support actions that contribute to any form of segregation or exclusion, or support infrastructure which is inaccessible to persons with a disability. Member States and the Commission should aim to eliminate inequalities and promote equality between men and women and integrate the gender perspective, as well as to combat discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation.

Text proposed by the Commission

Amendment

(5b) This Regulation sets out an exclusion list of investments that are detrimental to the targets set out in the Paris Agreement and the European Green Deal, and are not in line with the European Investment Bank's energy financing policy. Those investments should be excluded from Union support provided by the Facility.

Text proposed by the Commission

Amendment

(5c) The objectives of the Facility should be pursued in the framework of sustainable development and the Union's promotion of the aim of preserving, protecting and improving the quality of the environment as set out in Articles 11 and 191(1) TFEU, taking into account the ‘polluter pays’ principle and the commitment of limiting the temperature increase to 1,5°C above pre-industrial levels as agreed under the Paris Agreement.

Text proposed by the Commission

Amendment

(5d) The Member States and the Commission should ensure that the implementation of the Facility contributes to the respect and the promotion of equality between men and women in accordance with Article 8 TFEU. Evaluations have shown the importance of taking gender equality objectives into account in a timely and consistent manner in all dimensions and in all stages of the preparation, monitoring, implementation and evaluation of operational programmes. It  is therefore necessary forgender impact assessments, gender budgeting and the monitoring of results from a gender perspective to be part of the programming cycle.

Text proposed by the Commission

Amendment

(7) The Facility should provide support in the form of grants provided by the Union combined with loans provided by a finance partner. The financial envelope of the grant component, implemented by the Commission in direct management should take the form of financing not linked to costs, in accordance with Article 125 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (the ‘Financial Regulation’)12 . That form of financing should help incentivise project promoters to participate and contribute to the achievement of the Facility’s objectives in an efficient way relative to the size of the loan. The loan component should be provided by the European Investment Bank (‘the EIB’). The Facility may also be extended to other finance partners providing the loan component, where additional resources for the grant component become available or where it is required for the correct implementation.

(7) The Facility should provide support in the form of grants provided by the Union combined with loans provided by a finance partner. The financial envelope of the grant component, implemented by the Commission in direct management should take the form of financing not linked to costs, in accordance with Article 125 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (the ‘Financial Regulation’)12 . That form of financing should help incentivise project promoters to participate and contribute to the achievement of the Facility’s objectives in an efficient way relative to the size of the loan. The loan component should be provided by the European Investment Bank (the ‘EIB’). The Facility may also be extended to other finance partners providing the loan component, where additional resources for the grant component become available or where it is required for the correct implementation. In such a case, other finance partners should respect climate, environmental, social and transparency standards at least equivalent to those of the EIB.

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12 Regulation (EU Euratom) 2018/1046.

12 Regulation (EU Euratom) 2018/1046.

Text proposed by the Commission

Amendment

(13) In order to ensure that all Member States are granted the possibility to benefit from the grant component, a mechanism should be set up to establish earmarked national shares to be respected during a first stage, based on the distribution key proposed in the Just Transition Fund Regulation. However, in order to reconcile that objective with the need to optimise the economic impact of the Facility and its implementation, such national allocations should not be earmarked after 31 December 2024. Thereafter, the remaining resources available for the grant component should be provided without any pre-allocated national share and on a competitive basis at Union level, while ensuring predictability for investment and following a needs-based and regional convergence approach.

(13) In order to ensure that all Member States are granted the possibility to benefit from the grant component, a mechanism should be set up to establish earmarked national shares to be respected during a first stage, based on the distribution key proposed in the Just Transition Fund Regulation. The needs of less developed regions as referred to in Article [102(2)] of [Regulation (EU) 2020/XXX of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, and the European Maritime and Fisheries Fund and financial rules for those and for the Asylum and Migration Fund, the Internal Security Fund and the Border Management and Visa Instrument ("Common Provisions Regulation")] should be taken into account. However, in order to reconcile that objective with the need to optimise the economic impact of the Facility and its implementation, such national allocations should not be earmarked after 31 December 2024. Thereafter, the remaining resources available for the grant component should be provided without any pre-allocated national share and on a competitive basis at Union level, while ensuring predictability for investment and following a needs-based and regional convergence approach and promoting economic, social and territorial cohesion.

Text proposed by the Commission

Amendment

(14) Specific eligibility conditions and award criteria should be set out in the work programme and the call for proposals. Those eligibility conditions and award criteria should take into account the relevance of the project in the context of the development needs described in the territorial just transition plans, the overall objective of promoting regional and territorial convergence and the significance of the grant component for the viability of the project. Union Support established by this Regulation should thus only be made available to Member States with at least one territorial just transition plan adopted. The work programme and calls for proposals will also take into account the territorial just transition plans submitted by Member States to ensure that coherence and consistency across the different pillars of the mechanism is ensured.

(14) Specific eligibility conditions and award criteria should be set out in the work programme and the call for proposals. Those eligibility conditions and award criteria should take into account the relevance of the project in the context of the development needs described in the territorial just transition plans, the overall objective of promoting regional and territorial convergence, the significance of the grant component for the viability of the project and the screening criteria established pursuant to Regulation (EU) 2020/852. Union Support established by this Regulation should thus only be made available to Member States with at least one territorial just transition plan adopted. The work programme and calls for proposals will also take into account the territorial just transition plans submitted by Member States to ensure that coherence and consistency across the different pillars of the mechanism is ensured.

Text proposed by the Commission

Amendment

(15) Support under this Facility should only be provided to projects that do not generate a sufficient stream of own revenues that would allow them to be financially viable and to be financed solely by loans provided on market terms. Own revenues should correspond to revenues, budgetary transfers excepted, generated directly by the activities carried out by the project, such as sales, fees or tolls and as incremental savings generated by the upgrade of existing assets.

(15) Support under this Facility should only be provided to projects that adhere to the EU taxonomy established by Regulation (EU) 2020/852 and the "do no significant harm" principle referred to in that Regulation, and do not generate a sufficient stream of own revenues that would allow them to be financially viable and to be financed solely by loans provided on market terms and that could, consequently, not be realised without the Union’s financial support under this Facility. Own revenues should correspond to revenues, budgetary transfers excepted, generated directly by the activities carried out by the project, such as sales, fees or tolls and as incremental savings generated by the upgrade of existing assets.

Text proposed by the Commission

Amendment

(17) In order to ensure an effective implementation of the Facility, it may be necessary to provide advisory support for the preparation, development, and implementation of projects. This support should be provided through the InvestEU Advisory Hub.

(17) In order to ensure an effective implementation of the Facility, it may be necessary to provide advisory support for the preparation, development, and implementation of projects, particularly regarding sustainability and adherence to the EU taxonomy established by Regulation (EU) 2020/852. This support should be provided through the InvestEU Advisory Hub.

Text proposed by the Commission

Amendment

(18a) In order to improve transparency and accountability under the Facility, finance partners should publicly disclose all relevant information on each project financed and the Commission should grant public access to the opinions it has issued on each project selected or financed by the EIB. The Commission should also report annually to the European Parliament and to the Council on the implementation of the Facility in particular with regard to the results and impact of the Facility with respect to its objectives and performance indicators.

Text proposed by the Commission

Amendment

(22) The objective of this Regulation, namely to leverage public investment in territories, most impacted by the transition towards climate neutrality by addressing the corresponding development needs, cannot be sufficiently achieved by the Member States alone. The main reasons in this regard are the difficulties for public entities to support investments, which do not generate sufficient streams of own revenues and benefit the territories most negatively impacted by climate transition, without EU grant support and the need for a coherent implementation framework under direct management. Since those objectives can be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective,

(22) The objective of this Regulation, namely to leverage public investment in territories, most impacted by the transition towards climate neutrality and circular economy by addressing the corresponding development needs, cannot be sufficiently achieved by the Member States alone. The main reasons in this regard are the difficulties for public entities to support investments, which do not generate sufficient streams of own revenues and benefit the territories most negatively impacted by climate transition, without EU grant support and the need for a coherent implementation framework under direct management. Since those objectives can be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective,

Text proposed by the Commission

Amendment

The Facility shall provide support benefitting Union territories facing serious social, environmental and economic challenges deriving from the transition process towards a climate-neutral economy of the Union by 2050.

The Facility shall provide support  benefitting Union territories and their people facing diverse serious social, environmental and economic challenges deriving from the transition process towards the achievement of the Union's updated climate and energy targets, as established in [Regulation (EU) 2020/XXX establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (the ‘European Climate Law’)], and a climate-neutral and circular economy of the Union by 2050 at the latest.

Text proposed by the Commission

Amendment

5. 'territorial just transition plan' means a plan established in accordance with Article 7 of Regulation [JTF Regulation] and approved by the Commission;

5. 'territorial just transition plan' means a plan established by relevant local and regional authorities together with stakeholders of the territory concerned in accordance with Article 7 of Regulation [JTF Regulation] and approved by the Commission;

Text proposed by the Commission

Amendment

1. The general objective of the Facility is to address serious socio-economic challenges deriving from the transition process towards a climate-neutral economy for the benefit of the Union territories identified in the territorial just transition plans prepared by the Member States in accordance with Article 7 of Regulation [JTF Regulation].

1. The general objective of the Facility is to address serious socio-economic and environmental challenges deriving from the transition process towards a climate-neutral, environmentally sustainable, energy and resource efficient and circular economy of the Union by 2050 at the latest, for the benefit of the Union territories identified in the territorial just transition plans prepared by the Member States in accordance with Article 7 of Regulation [JTF Regulation] and to contribute to the European Green Deal objectives, in particular the objective of a climate-neutral economy by 2050.

Text proposed by the Commission

Amendment

2. The Facility shall have the specific objective of increasing public sector investments, which address the development needs of regions identified in the territorial just transition plans, by facilitating the financing of projects that do not generate a sufficient stream of own revenues and would not be financed without the element of grant support from the Union budget.

2. The Facility shall have the specific objective of increasing public sector investments, which address the development needs of regions identified in the territorial just transition plans, by facilitating the financing of projects that are consistent with the Union policies, in line with the Paris Agreement and its commitment to achieve climate neutrality by 2050 at the latest , that do not generate a sufficient stream of own revenues  and would not be realised without the element of grant support from the Union budget.

Text proposed by the Commission

Amendment

1. Union support provided under the Facility shall be provided in the form of grants in accordance with Title VIII of the Financial Regulation.

1. Union support provided under the Facility, subject to national sustainable transition plans approved by the Commission, shall be provided in the form of grants in accordance with Title VIII of the Financial Regulation.

Text proposed by the Commission

Amendment

3. For grants awarded pursuant to calls for proposals launched as from 1 January 2025, Union support awarded to eligible projects shall be provided without any pre-allocated national share and on a competitive basis at Union level until exhaustion of remaining resources. The award of such grants shall take into account the need to ensure predictability of investment and the promotion of regional convergence.

3. For grants awarded pursuant to calls for proposals launched as from 1 January 2025, Union support awarded to eligible projects shall be provided without any pre-allocated national share and on a competitive basis at Union level until exhaustion of remaining resources. The award of such grants shall take into account the need to ensure predictability of investment and the promotion of regional economic, social and territorial cohesion and shall place special attention on less developed regions as referred to in Article [102(2)] of [Regulation (EU) 2020/XXX of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, and the European Maritime and Fisheries Fund and financial rules for those and for the Asylum and Migration Fund, the Internal Security Fund and the Border Management and Visa Instrument ("Common Provisions Regulation")] .

Text proposed by the Commission

Amendment

4. The Commission shall adopt a decision by means of an implementing act setting out the respective shares for each Member State resulting from the application of the methodology set out in Annex I of Regulation [JTF Regulation] in the form of percentages of the total available resources.

4. The Commission shall adopt a decision by means of a delegated act in accordance with Article 17 setting out the respective shares for each Member State resulting from the application of the methodology set out in Annex I of Regulation [JTF Regulation] in the form of percentages of the total available resources.

Text proposed by the Commission

Amendment

4a. Access to the Facility shall be conditional on the adoption of a national objective towards the achievement of climate neutrality by 2050 at the latest. For those Member States, which have not yet committed to a national target for climate neutrality, only 50 % of their national allocation shall be released, and the remaining 50 % shall be made available once they have adopted that target.

Text proposed by the Commission

Amendment

(a) the projects achieve measurable impact in addressing serious social, economic or environmental challenges deriving from the transition process towards a climate-neutral economy and benefit territories identified in a territorial just transition plan, even if they are not located in those territories;

(a) the projects achieve measurable impact in addressing serious social, economic or environmental challenges deriving from the transition process towards the achievement of the Union's updated climate and energy targets, as established in [Regulation (EU) 2020/XXX establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 the’European Climate Law’], and towards a climate-neutral, environmentally sustainable, energy and resource efficient and circular economy of the Union by 2050 at the latest , and contribute to the objectives and needs of the benefit territories identified in a territorial just transition plan, even if they are not located in those territories;

Text proposed by the Commission

Amendment

(aa) the projects are consistent with the technical screening criteria established by Regulation (EU) 2020/852;

Text proposed by the Commission

Amendment

(d) the projects do not generate a sufficient stream of own revenues allowing them to be financed without Union support.

(d) the projects do not generate a sufficient stream of own revenues and would not be realised without Union support.

Text proposed by the Commission

Amendment

The following activities shall be excluded from the scope of Union support under this Facility:

(a) investments that are not in line with the EIB’s energy financing policy;

(b) projects that are inconsistent with the achievement of the Union’s climate and environmental objectives or that are incompatible with the "do no significant harm" principle referred to in Article 17 of Regulation (EU) 2020/852;

(c) activities excluded under Article [5] of [Regulation (EU) 2020/XXX establishing the Just Transition Fund (JTF Regulation)] .

Text proposed by the Commission

Amendment

The Facility shall be implemented by work programmes established in accordance with Article 110 of the Financial Regulation. The work programmes shall set out the national shares of resources, including any additional resources, for each Member State in accordance with Articles 4(1) and 6(2) of this Regulation.

The Facility shall be implemented by work programmes. The Commission shall adopt delegated acts in accordance with Article 17 in order to establish work programmes The work programmes shall specify the criteria and conditions for the selection and for the prioritisation of projects, taking into account the relevant screening criteria established pursuant to Regulation (EU) 2020/852, the project’s ability to meet the objectives and needs identified in the territorial just transition plans, the contribution to the transition towards a climate-neutral, environmentally sustainable, energy and resource efficient and circular economy of the Union by 2050 at the latest, the overall objective of promoting regional and territorial convergence and the grant’s contribution to the viability of projects. The work programmes shall set out the national shares of resources, including any additional resources, for each Member State in accordance with Articles 4(1) and 6(2) of this Regulation.

Text proposed by the Commission

Amendment

The Commission shall adopt delegated acts in accordance with Article 17 setting out annual work programmes. Those annual work programmes shall set out calls for proposals including the possibility for commitment of all national shares until 31 December 2024.

Text proposed by the Commission

Amendment

Article 13a

Selection of finance partners other than the EIB

The Commission shall adopt delegated acts in accordance with Article 17 in order to set out the details of eligibility conditions and selection procedures for finance partners other than EIB.

The eligibility conditions for the finance partners other than the EIB shall reflect the objectives of the Facility.

In particular, when selecting the finance partners, the Commission shall take into account their capacity:

(a) to ensure that their energy lending policy and standards are at least equivalent to those of the EIB;

(b) to maximise the impact of the Union guarantee through own resources;

(c) to ensure appropriate geographical diversification of the Facility and allow for the financing of smaller projects;

(d) to implement thoroughly the requirements set out in Article 155(2) and (3) of the Financial Regulation concerning tax avoidance, tax fraud, tax evasion, money laundering, terrorism financing and non-cooperative jurisdictions;

(e) to ensure transparency and public access to information concerning each project;

(f) to ensure the consistency of their lending policy with the new Union’s 2030 targets for climate and energy and the objective of a climate neutral economy in the Union and the alignment with the Union commitments under the Paris Agreement;

(g) to integrate the analysis of environmental, climate, social and governance factors in the selection and evaluation of projects.

The Commission shall publish the selection results.

Text proposed by the Commission

Amendment

1. Key performance indicators to monitor implementation and progress of the Facility towards the achievement of the objectives set out in Article 3 are established in Annex II.

1. Key performance and sustainability indicators to monitor implementation and progress of the Facility towards the achievement of climate neutrality and other environmental objectives of the Union, the adherence to the "do no significant harm" principle referred to in Regulation (EU) 2020/852, and the objectives set out in Article 3 are established in Annex II.

Text proposed by the Commission

Amendment

2. The performance reporting system shall ensure that data regarding the indicators referred to in paragraph 1 are collected efficiently, effectively and in a timely fashion. Beneficiaries in cooperation with finance partners shall provide to the Commission the data regarding those indicators.

2. The performance reporting system shall ensure that data regarding the key performance and sustainability  indicators referred to in paragraph 1 are collected efficiently, effectively and in a timely, reliable and independent fashion. Beneficiaries in cooperation with finance partners shall provide to the Commission the data regarding those indicators.

Text proposed by the Commission

Amendment

2a. The Commission shall report annually on the implementation of the Facility in accordance with Article 250 of the Financial Regulation. That report shall provide information on the results and impact of the Facility with respect to its objectives and performance indicators, in particular its contribution to the achievement of the financial and investment objectives of the Union on climate and environmental mainstreaming addressing the transition needs. For that purpose, finance partners and beneficiaries shall provide on an annual basis all the necessary information and data.

Both the interim and final evaluation shall also assess the contribution to the achievement of the Union’s updated 2030 climate and energy targets as established in [Regulation (EU) 2020/XXX establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999(the ‘European Climate Law’)], and the contribution to the achievement of a national objective towards climate neutrality by 2050.

Text proposed by the Commission

Amendment

1. Audits on the use of the Union support provided under the Facility carried out by persons or entities, including by other than those mandated by the Union Institutions or bodies, shall form the basis of the overall assurance pursuant to Article 127 of the Financial Regulation.

1. Audits on the use of the Union support provided under the Facility carried out by persons or entities, including by other than those mandated by the Union Institutions or bodies, shall form the basis of the overall assurance pursuant to Article 127 of the Financial Regulation, and shall ensure the adherence to the EU taxonomy established by Regulation (EU) 2020/852 and the "do no significant harm" principle referred to in that Regulation.

Text proposed by the Commission

Amendment

Article 18a

The Commission shall make publicly available upon delivery any opinions issued on the projects selected or financed under this Facility in accordance with the procedure provided for in Article 19 of the Statute of the EIB.

Text proposed by the Commission

Amendment

6.4 Direct support to transition (renewable energy, energy efficiency)

6.4 Direct support to climate transition, decarbonisation, in particular support to renewable energy and energy efficiency, and other environmental objectives

Text proposed by the Commission

Amendment

7a. Number of new created jobs

Text proposed by the Commission

Amendment

7b. The effect on the supported territory GDP

Title

Public sector loan facility under the Just Transition Mechanism

References

COM(2020)0453 – C9-0153/2020 – 2020/0100(COD)

Committees responsible

 Date announced in plenary

BUDG

17.6.2020

ECON

17.6.2020

Opinion by

 Date announced in plenary

ENVI

17.6.2020

Rapporteur

 Date appointed

Pascal Canfin

10.6.2020

Rule 58 – Joint committee procedure

 Date announced in plenary

23.7.2020

Discussed in committee

1.10.2020

Date adopted

2.10.2020

Result of final vote

+:

–:

0:

55

25

0

Members present for the final vote

Nikos Androulakis, Bartosz Arłukowicz, Margrete Auken, Simona Baldassarre, Marek Paweł Balt, Traian Băsescu, Aurelia Beigneux, Monika Beňová, Sergio Berlato, Alexander Bernhuber, Malin Björk, Simona Bonafè, Delara Burkhardt, Pascal Canfin, Sara Cerdas, Mohammed Chahim, Tudor Ciuhodaru, Nathalie Colin-Oesterlé, Miriam Dalli, Esther de Lange, Christian Doleschal, Marco Dreosto, Bas Eickhout, Eleonora Evi, Agnès Evren, Fredrick Federley, Pietro Fiocchi, Catherine Griset, Jytte Guteland, Teuvo Hakkarainen, Anja Hazekamp, Martin Hojsík, Pär Holmgren, Jan Huitema, Yannick Jadot, Adam Jarubas, Petros Kokkalis, Athanasios Konstantinou, Joanna Kopcińska, Ryszard Antoni Legutko, Peter Liese, Sylvia Limmer, Javi López, César Luena, Fulvio Martusciello, Liudas Mažylis, Joëlle Mélin, Tilly Metz, Silvia Modig, Dolors Montserrat, Alessandra Moretti, Dan-Ştefan Motreanu, Ville Niinistö, Ljudmila Novak, Grace O’Sullivan, Jutta Paulus, Stanislav Polčák, Jessica Polfjärd, Luisa Regimenti, Frédérique Ries, María Soraya Rodríguez Ramos, Sándor Rónai, Rob Rooken, Silvia Sardone, Christine Schneider, Günther Sidl, Linea Søgaard-Lidell, Nicolae Ştefănuță, Nils Torvalds, Edina Tóth, Véronique Trillet-Lenoir, Petar Vitanov, Alexandr Vondra, Mick Wallace, Pernille Weiss, Michal Wiezik, Tiemo Wölken, Anna Zalewska

Substitutes present for the final vote

Radan Kanev, Ulrike Müller

55

+

EPP

Bartosz Arłukowicz, Traian Băsescu, Alexander Bernhuber, Nathalie Colin-Oesterlé, Christian Doleschal, Agnès Evren, Adam Jarubas, Radan Kanev, Esther De Lange, Peter Liese, Fulvio Martusciello, Liudas Mažylis, Dolors Montserrat, Dan-Ştefan Motreanu, Ljudmila Novak, Stanislav Polčák, Jessica Polfjärd, Christine Schneider, Edina Tóth, Pernille Weiss, Michal Wiezik

S&D

Nikos Androulakis, Marek Paweł Balt, Monika Beňová, Simona Bonafè, Delara Burkhardt, Sara Cerdas, Mohammed Chahim, Tudor Ciuhodaru, Miriam Dalli, Jytte Guteland, Javi López, César Luena, Alessandra Moretti, Sándor Rónai, Günther Sidl, Petar Vitanov, Tiemo Wölken

RENEW

Pascal Canfin, Fredrick Federley, Martin Hojsík, Jan Huitema, Ulrike Müller, Frédérique Ries, María Soraya Rodríguez Ramos, Nicolae Ştefănuță, Linea Søgaard-Lidell, Nils Torvalds, Véronique Trillet-Lenoir

GUE/NGL

Malin Björk, Anja Hazekamp, Petros Kokkalis, Silvia Modig, Mick Wallace

NI

Athanasios Konstantinou

25

-

ID

Simona Baldassarre, Aurelia Beigneux, Marco Dreosto, Catherine Griset, Teuvo Hakkarainen, Sylvia Limmer, Joëlle Mélin, Luisa Regimenti, Silvia Sardone

GREENS/EFA

Margrete Auken, Bas Eickhout, Pär Holmgren, Yannick Jadot, Tilly Metz, Ville Niinistö, Grace O'sullivan, Jutta Paulus

ECR

Sergio Berlato, Pietro Fiocchi, Joanna Kopcińska, Ryszard Antoni Legutko, Rob Rooken, Alexandr Vondra, Anna Zalewska

NI

Eleonora EVI

0

0

Text proposed by the Commission

Amendment

(1) The Commission adopted a Communication on the European Green Deal on 11 December 20199 , drawing its roadmap towards a new growth policy for Europe and setting ambitious objectives to counter climate change and for environmental protection. In line with the objective to achieve climate neutrality in the Union by 2050 in an effective and fair manner, the European Green Deal announced a Just Transition Mechanism to provide means for facing the climate challenge while leaving no one behind. The most vulnerable regions and people are the most exposed to the harmful effects of climate change and environmental degradation. At the same time, managing the transition requires significant structural changes.

(1) The Commission adopted a Communication on the European Green Deal on 11 December 20199 , drawing its roadmap towards a new growth policy for Europe and setting ambitious objectives to counter climate change and for environmental protection. In line with the objectives of achieving the Union’s 2030 targets for climate and energy and climate neutrality by 2050 in an effective, fair and solidary manner and taking into account the global framework set by Paris Agreement, the European Green Deal announced a Just Transition Mechanism to provide means for facing the challenge of the transition while leaving no one behind. The most vulnerable regions and people are the most exposed to the harmful effects of climate change and environmental degradation. At the same time, managing the transition requires significant structural changes.

__________________

__________________

9 COM(2019) 640 final.

9 COM(2019) 640 final.

Text proposed by the Commission

Amendment

(1a) Achieving the Union’s climate objectives requires addressing not only the problem of variable speed transition in the Union as regards climate action, but also the risk of growing socio-economic disparities between regions and the discontent of potentially adversely affected social groups. It is of paramount importance that efforts are concentrated on economic transformation and revitalisation of the territories concerned, for example coal mining regions, rather than relying on workers’ mobility and risking the depopulation and stagnation of entire regions. In order to maintain coherence between the objectives of the transition and the priorities and goals of the Union such as boosting jobs, reducing poverty and inequality, effective  support should be provided in order to diversify local economies through sound investments and to create sustainable employment to ensure that workers employed in sectors affected by the transition will be re-absorbed into local labour market.

Text proposed by the Commission

Amendment

(2) The Commission adopted a Communication on the European Green Deal Investment Plan10 on 14 January 2020, establishing the Just Transition Mechanism which focuses on the regions and sectors that are most affected by the transition given their dependence on fossil fuels, including coal, peat and oil shale or greenhouse gas-intensive industrial processes but have less capacity to finance the necessary investments. The Just Transition Mechanism consists of three pillars: a Just Transition Fund implemented under shared management, a dedicated just transition scheme under InvestEU, and a public sector loan facility to mobilise additional investments to the regions concerned.

(2) The Commission adopted a Communication on the European Green Deal Investment Plan10 on 14 January 2020, establishing the Just Transition Mechanism which focuses on the regions, communities and sectors that are most affected by the transition given their dependence on fossil fuels, including coal, peat and oil shale or greenhouse gas-intensive industrial processes, and structure of their employment but have less capacity to finance the necessary investments. The Just Transition Mechanism consists of three pillars: a Just Transition Fund implemented under shared management, a dedicated just transition scheme under InvestEU, and a public sector loan facility to mobilise additional investments to the regions concerned.

__________________

__________________

10 COM(2020) 21 final.

10 COM(2020) 21 final.

Text proposed by the Commission

Amendment

(3a) The public sector has a particular place in the process of driving the transition to a climate-neutral Union economy. It is necessary to recognise that the components of a climate-neutral economy, such as renewables and wider low-carbon developments, cross-sectorial innovation and social investments, have a value beyond short-term financial returns and need distinct treatment. One of the key roles of the public sector is to step in when the market is failing.

Text proposed by the Commission

Amendment

(4) A public sector loan facility (the ‘Facility’) should be provided. It constitutes the third pillar of the Just Transition Mechanism, supporting public sector entities in their investments. Such investments should meet the development needs resulting from the transition challenges described in the territorial just transition plans as adopted by the Commission. The activities envisaged for support should be consistent with and complement those supported under the other two pillars of the Just Transition Mechanism.

(4) A public sector loan facility (the ‘Facility’) should be provided. It constitutes the third pillar of the Just Transition Mechanism, supporting public sector entities in their investments. Such investments should meet the development needs resulting from the transition challenges described in the territorial just transition plans as approved by the Commission. The activities envisaged for support should be consistent with and complement those supported under the other two pillars of the Just Transition Mechanism.

Text proposed by the Commission

Amendment

(5) In order to enhance the economic diversification of territories impacted by the transition, the Facility should cover a wide range of investments, on condition that they contribute to meet the development needs in the transition towards a climate neutral economy, as described in the territorial just transition plans. The investments supported may cover energy and transport infrastructure, district heating networks, green mobility, smart waste management, clean energy and energy efficiency measures including renovations and conversions of buildings, support to transition to a circular economy, land restoration and decontamination, as well as up- and re-skilling, training and social infrastructure, including social housing. Infrastructure developments may also include solutions leading to their enhanced resilience to withstand disasters. Comprehensive investment approach should be favoured in particular for territories with important transition needs. Investments in other sectors could also be supported if they are consistent with the adopted territorial just transition plans. By supporting investments that do not generate sufficient revenues, the Facility aims at providing public sector entities with additional resources necessary to address the social, economic and environmental challenges resulting from the adjustment to climate transition. In order to help identify investments with a high positive environmental impact eligible under the Facility, the EU taxonomy on environmentally sustainable economic activities may be used.

(5) In order to enhance the economic diversification of territories impacted by the transition, the Facility should cover a wider range of investments as compared to the first pillar on condition that they contribute to meet the social, economic, labour, energy security or environmental development needs in the transition towards the Union’s 2030 targets for climate and energy and a climate neutral economy by 2050, as described in the territorial just transition plans. That transition aims to decouple from resource consumption and eliminate net emissions of greenhouse gases as well as other adverse impacts on human health and the environment related to, inter alia, the deterioration of biodiversity and ecosystems, overconsumption of resources or chemical pollution. The support mechanism should avoid further increasing economic disparities between Union regions and should focus on the strengthening of social cohesion amongst all Union citizens. The investments supported may cover energy and transport infrastructure, district heating systems, green and sustainable mobility, smart waste management, clean and low-carbon energy and energy efficiency measures including renovations and conversions of buildings, investments in research and innovation activities, support to transition to a circular economy, urban environmental infrastructure, protection of cultural and historical heritage as well as up- and re-skilling, training and social infrastructure, including social housing. Infrastructure developments may also include solutions leading to their enhanced resilience to withstand disasters. Investments might also cover land restoration and decontamination unless falling under the scope of liabilities for environmental damage in accordance with polluter-pays principle referred to in Article 191 TFEU. Comprehensive investment approach should be favoured in particular for territories with important transition needs. Investments in other sectors could also be supported if they are consistent with the adopted territorial just transition plans. By supporting investments that do not generate sufficient revenues, the Facility aims at providing public sector with additional resources necessary to address the social, economic environmental and energy security challenges resulting from the adjustment to climate transition as well as to deliver long-term job opportunities for workers affected by economic restructuring. In order to help identify investments with a high positive environmental impact eligible under the Facility, the EU taxonomy on environmentally sustainable economic activities may be used.

Text proposed by the Commission

Amendment

(5a) Projects involving natural gas should be eligible for support provided that such investment is used as a bridging technology replacing coal, lignite, peat, oil shale, until other zero-emissions and innovative technologies are fully deployed to a degree that is sufficient to ensure the continuity of the energy supply and security, and energy affordability, and that demonstrates it delivers significant reductions in greenhouse gas emissions, and allows a further use of renewable gas. Such investment should be necessary for the implementation of the territorial just transition plans established in accordance with Article 7 [JTF] and demonstrate the consistency with the Union's objective of climate neutrality by 2050.

Text proposed by the Commission

Amendment

(5b) In order to avoid stranded assets and to ensure that public funding is used in most cost-effective manner, beneficiary projects should have long-lasting green, sustainable effect and contribute to reaching climate neutrality by 2050.

Text proposed by the Commission

Amendment

(5c) Transitioning to climate-neutrality also presents new economic opportunities. Transition to a renewables-based economy holds a significant job creation potential that, if properly tapped, could eventually lead to high employment levels in territories currently dependent on fossil fuels. The shift to renewable energy can enable local communities to become active participants in and owners of the energy transition and move from single- to a multi-industry model. In particular, the reconversion of former mine sites to renewable energy generation and storage, and construction of renewable energy infrastructure in such sites or neighbouring areas can provide green jobs to communities. Moreover, such reconversion can contribute to energy security and resilience, based on a decentralised energy system model.

Text proposed by the Commission

Amendment

(5d) The supported investments covering in particular energy efficiency, waste management in accordance with waste hierarchy and waste-water management, could be successfully implemented through Private Public Partnerships (PPPs). Therefore the Facility should cover PPPs. A private entity, whether or not it belongs to a public sector, that has entered into a long-term PPP with a public body in order to implement a project that meets criteria laid down by this Regulation should be an eligible beneficiary of the Facility. The fact of its entering in a PPP with a public body should constitute the public service mission.

Text proposed by the Commission

Amendment

(14) Specific eligibility conditions and award criteria should be set out in the work programme and the call for proposals. Those eligibility conditions and award criteria should take into account the relevance of the project in the context of the development needs described in the territorial just transition plans, the overall objective of promoting regional and territorial convergence and the significance of the grant component for the viability of the project. Union Support established by this Regulation should thus only be made available to Member States with at least one territorial just transition plan adopted. The work programme and calls for proposals will also take into account the territorial just transition plans submitted by Member States to ensure that coherence and consistency across the different pillars of the mechanism is ensured.

(14) In case demand exceeds the nationally allocated funding resources, specific eligibility conditions and award criteria should be set out in the work programme and the call for proposals. Those eligibility conditions and award criteria should take into account the ability of the project to meet the objectives and the development needs described in the territorial just transition plans, the overall objective of promoting regional and territorial convergence, as well as the overall impact on the regional labour market and the significance of the grant component for the viability of the project. Union Support established by this Regulation should thus only be made available to Member States with at least one territorial just transition plan adopted. The work programme and calls for proposals will also take into account the territorial just transition plans submitted by Member States to ensure that coherence and consistency across the different pillars of the mechanism is ensured.

Text proposed by the Commission

Amendment

(16a) Given the relatively low level of the grant component, a number of projects could have an insufficient stream of own revenues in order to be supported only by the Facility. This could lead to lack of expected absorption in less developed regions where a lower-income public sector could experience difficulties in cofinancing. Therefore, eligible projects could combine support under other Union programmes.

Text proposed by the Commission

Amendment

(22) The objective of this Regulation, namely to leverage public investment in territories, most impacted by the transition towards climate neutrality by addressing the corresponding development needs, cannot be sufficiently achieved by the Member States alone. The main reasons in this regard are the difficulties for public entities to support investments, which do not generate sufficient streams of own revenues and benefit the territories most negatively impacted by climate transition, without EU grant support and the need for a coherent implementation framework under direct management. Since those objectives can be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective,

(22) The objective of this Regulation, namely to leverage public investment in territories, most impacted by the transition towards climate neutrality by addressing the corresponding development needs, cannot be sufficiently achieved by the Member States alone. The main reasons in this regard are the difficulties for public entities to support investments that benefit the territories most negatively affected by the climate and energy transition but do not generate sufficient streams of own revenues and would not be funded by the project promoter within the same timeframe or to the same extent without the element of  grant support from the Union budget and the need for a coherent implementation framework under direct management. Since those objectives can be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective,

Text proposed by the Commission

Amendment

The Facility shall provide support benefitting Union territories facing serious social, environmental and economic challenges deriving from the transition process towards a climate-neutral economy of the Union by 2050.

The Facility shall provide support benefitting Union territories facing serious social, environmental economic and energy security challenges deriving from the transition process towards the Union’s 2030 targets for climate and energy and a climate-neutral economy by 2050.

Text proposed by the Commission

Amendment

2. 'beneficiary' means a public sector legal entity established in a Member State as a public law body, or as a body governed by private law entrusted with a public service mission, with whom a grant agreement has been signed under the Facility;

2. 'beneficiary' means a legal entity established in a Member State as a public law body, or as a body governed by private law entrusted with the implementation of a public-private partnership (PPP) or with another public service mission with whom a grant agreement has been signed under the Facility;

Text proposed by the Commission

Amendment

3. 'finance partners' means the EIB, other international financial institutions, national promotional banks and financial institutions, with which the Commission signs an administrative agreement to cooperate within the Facility;

3. 'finance partners' means the EIB, other international financial institutions, national and regional promotional banks and financial institutions, with which the Commission signs an administrative agreement to cooperate within the Facility;

Text proposed by the Commission

Amendment

6a. 'additionality’ means the support for projects that do not generate a sufficient stream of own revenues and would not be financed without the element of grant support from the Union budget and that contribute to the general objectives laid down in Article 3.

Text proposed by the Commission

Amendment

1. The general objective of the Facility is to address serious socio-economic challenges deriving from the transition process towards a climate-neutral economy for the benefit of the Union territories identified in the territorial just transition plans prepared by the Member States in accordance with Article 7 of Regulation [JTF Regulation].

1. The general objective of the Facility is to address serious socio-economic challenges and opportunities deriving from the transition process towards the Union’s 2030 target for climate and energy and climate-neutral economy by 2050, in line with Paris Agreement objectives and responding to the need to strengthen competitiveness, for the benefit of the territories identified in the territorial just transition plans prepared by the Member States in accordance with Article 7 of Regulation [JTF Regulation].

Text proposed by the Commission

Amendment

2. The Facility shall have the specific objective of increasing public sector investments, which address the development needs of regions identified in the territorial just transition plans, by facilitating the financing of projects that do not generate a sufficient stream of own revenues and would not be financed without the element of grant support from the Union budget.

2. The Facility shall have the specific objective of increasing public sector investments, which support actions and solutions for fair, efficient and affordable energy transition and address the development needs of regions identified in the territorial just transition plans, by facilitating the financing of projects that are in line with the Union’s climate targets, provide long-term sustainable employment, but do not generate a sufficient stream of own revenues and would not be financed without the element of grant support from the Union budget.

Text proposed by the Commission

Amendment

3. In pursuing the achievement of the specific objective referred to in paragraph 2, this Regulation also aims at providing advisory support for the preparation, development, and implementation of eligible projects where necessary. That advisory support shall be provided in accordance with the rules and implementation methods for the InvestEU Advisory Hub established by Article [20] of Regulation [InvestEU Regulation].

3. In pursuing the achievement of the specific objective referred to in paragraph 2, this Regulation also aims at providing advisory support for the assessment of eligibility, preparation, development, and implementation of eligible projects where necessary. That advisory support shall be provided in accordance with the rules and implementation methods for the InvestEU Advisory Hub established by Article [20] of Regulation [InvestEU Regulation].

Text proposed by the Commission

Amendment

(a) the projects achieve measurable impact in addressing serious social, economic or environmental challenges deriving from the transition process towards a climate-neutral economy and benefit territories identified in a territorial just transition plan, even if they are not located in those territories;

(a) the projects achieve measurable impact in addressing serious social, economic , labour, energy security or environmental challenges deriving from the transition process towards the Union’s 2030 target for climate and energy and a climate-neutral economy by 2050 and benefit territories identified in a territorial just transition plan, even if they are not located in those territories;

Text proposed by the Commission

Amendment

(b) the projects do not receive support under any other Union programmes;

deleted

Text proposed by the Commission

Amendment

Projects involving natural gas shall be considered eligible, provided that such investments are necessary for the implementation of the territorial just transition plans established in accordance with Article 7 [JTF] and under the following duly justified circumstances:

(a) the investments are taking place in territories facing particularly serious energy transition challenges due to their high dependency on solid fossil fuels, such as those regions with a high-share of solid fossil fuel-based district heating systems;

(b) the investments contribute to the Union’s environmental objectives on climate change mitigation and adaptation, through accelerating the phase-out of coal, lignite, peat or oil shale;

(c) the investments are consistent with Union’s energy and climate objectives and legislation, and the national energy and climate plans, and are of a transitional nature;

(d) a prior assessment of the use of renewable-only energy sources has been carried out;

(e) the replacement of highly carbon-intensive and solid fossil fuels based energy infrastructure delivers a significant reductions in greenhouse gas emissions and air pollution and increases energy efficiency;

(f) the activities supported contribute to reducing energy poverty;

(g) the activities supported do not hamper the development of renewable energy sources in the concerned territories and are compatible and in synergy with a future use of renewable energy sources.

Text proposed by the Commission

Amendment

Notwithstanding the criteria set out in Article 197 of the Financial Regulation, only public sector legal entities established in a Member State as a public law body, or as a body governed by private law entrusted with a public service mission, are eligible to apply as potential beneficiaries under this Regulation.

Notwithstanding the criteria set out in Article 197 of the Financial Regulation, only legal entities established in a Member State as a public law body, or as a body governed by private law entrusted with the implementation of a PPP  or with another public service mission, are eligible to apply as potential beneficiaries under this Regulation.

Text proposed by the Commission

Amendment

2. The amount of the grant shall not exceed 15% of the amount of the loan provided by the finance partner under this Facility. For projects located in territories in NUTS level 2 regions with a GDP per capita not exceeding 75% of the average GDP of the EU-27 as referred to in Article [102(2)] of Regulation [new CPR], the amount of the grant shall not exceed 20% of the amount of the loan provided by the finance partner.

2. The amount of the grant shall not exceed 15% of the amount of the loan provided by the finance partner under this Facility. For projects located in territories in NUTS level 2 regions with a GDP per capita not exceeding 75% of the average GDP of the EU-27 as referred to in Article [102(2)] of Regulation [new CPR], the amount of the grant shall not exceed 25% of the amount of the loan provided by the finance partner. For projects located in territories in NUTS level 2 regions with a GDP per capita of between 75 % and 100 % of the average GDP of the EU-27 as referred to in Article [102(2)] of Regulation [new CPR], which in the 2014-2020 programming period were classified as less developed regions, the amount of the grant shall not exceed 25 % of the amount of the loan provided by the finance partner.

Text proposed by the Commission

Amendment

1. In addition to the grounds specified in Article 131(4) of the Financial Regulation and after consulting the finance partner, the amount of the grant may be reduced or the grant agreement may be terminated, if within two years from the date of signature of the grant agreement, the economically most significant supply, works or services contract has not been signed, in cases where the conclusion of such contract is envisaged pursuant to the grant agreement.

1. In addition to the grounds specified in Article 131(4) of the Financial Regulation and after consulting the finance partner, the amount of the grant may be reduced or the grant agreement may be terminated, if within three years from the date of signature of the grant agreement, the economically most significant supply, works or services contract has not been signed, in cases where the conclusion of such contract is envisaged pursuant to the grant agreement.

Text proposed by the Commission

Amendment

Article 13a

Selection of finance partners other than the EIB

The Commission shall set out the conditions and procedures for selecting finance partners other than EIB. Those implementing acts shall be adopted in accordance with the procedure referred to in Article 5 of Regulation (EU) No 182/2011.

Finance partners other than the EIB which have successfully passed the pillar assessment procedure set out in the Article 154 of the Financial Regulation shall be eligible to implement the Facility.

The eligibility conditions for selecting the finance partners other than the EIB shall reflect the objectives of the Facility. In particular, when selecting the finance partners the Commission shall take into account the capacity of finance partners to:

(a) maximise the impact of the Union grant component through own resources;

(b)  ensure appropriate geographical diversification of the Facility and allow for the financing of smaller projects;

(c) ensure transparency and public access to information concerning each project;

(d)  ensure that the projects selected for support under the Facility are consistent with the objectives of the Facility and the Union's 2030 targets for climate and energy and climate neutral economy by 2050;

(e)  integrate the analysis of environmental, climate, social and governance factors in the selection and evaluation of projects.

The Commission shall publish the selection results.

Text proposed by the Commission

Amendment

3. The Commission shall be empowered to adopt delegated acts in accordance with Article 17 to amend Annex II by modifying the indicators referred to in paragraph 1.

3. Where the interim evaluation referred to in article 15(2) finds that the indicators in Annex II do not allow for a proper assessment of the Facility the Commission shall be empowered to adopt delegated acts in accordance with Article 17 to amend Annex II by modifying the indicators referred to in paragraph 1.

Text proposed by the Commission

Amendment

Article 14a

Transparency

1.  Beneficiaries shall ensure, for the benefit of the general public and a wide re-use of public sector and publicly funded information across the Union, transparency concerning the actions under this instrument. They shall publish online in open, machine-readable formats, as set out in Article 5(1) of the Directive 2019/1024 (EC) of the European Parliament and of the Council, relevant information concerning funded projects, such as description of the project, impact assessment, evaluation and audit reports.

2.  Finance partners shall disclose all relevant information on each project financed and make that information publicly available on their website, without prejudice to applicable Union and national rules concerning confidentiality and professional secrecy.

3.  The Commission shall ensure the publication of the information on beneficiaries pursuant to Article 38 of the Financial Regulation.

Text proposed by the Commission

Amendment

2. The interim evaluation of the Facility shall be performed by 30 June 2025, when sufficient information is expected to be available about the implementation of the Facility. The evaluation shall in particular demonstrate how the Union support provided under the Facility shall have contributed in addressing the needs of territories implementing the territorial just transition plans.

2. The interim evaluation of the Facility shall be performed by 30 June 2025, when sufficient information is expected to be available about the implementation of the Facility. The evaluation shall in particular demonstrate how the Union support provided under the Facility shall have contributed in addressing the needs of territories implementing the territorial just transition plans. It shall also analyse how Union support provided under the Facility has contributed to meeting the Union’s sustainability policy objectives, in particular the Union’s 2030 targets for climate and energy and the transition towards a climate-neutral economy by 2050.

Text proposed by the Commission

Amendment

7a. Number of saved jobs

Text proposed by the Commission

Amendment

7b. Number of new jobs created

Text proposed by the Commission

Amendment

7c. The impact on the GDP of the supported territory

Title

Public sector loan facility under the Just Transition Mechanism

References

COM(2020)0453 – C9-0153/2020 – 2020/0100(COD)

Committees responsible

 Date announced in plenary

BUDG

17.6.2020

ECON

17.6.2020

Opinion by

 Date announced in plenary

ITRE

17.6.2020

Rapporteur

 Date appointed

Izabela-Helena Kloc

10.7.2020

Rule 58 – Joint committee procedure

 Date announced in plenary

23.7.2020

Discussed in committee

1.9.2020

Date adopted

1.10.2020

Result of final vote

+:

–:

0:

54

13

4

Members present for the final vote

Nicola Beer, François-Xavier Bellamy, Hildegard Bentele, Tom Berendsen, Vasile Blaga, Michael Bloss, Manuel Bompard, Paolo Borchia, Marc Botenga, Cristian-Silviu Buşoi, Jerzy Buzek, Carlo Calenda, Andrea Caroppo, Ignazio Corrao, Ciarán Cuffe, Josianne Cutajar, Nicola Danti, Pilar del Castillo Vera, Martina Dlabajová, Christian Ehler, Valter Flego, Niels Fuglsang, Lina Gálvez Muñoz, Claudia Gamon, Nicolás González Casares, Bart Groothuis, Christophe Grudler, András Gyürk, Henrike Hahn, Robert Hajšel, Ivo Hristov, Ivars Ijabs, Romana Jerković, Eva Kaili, Seán Kelly, Izabela-Helena Kloc, Łukasz Kohut, Zdzisław Krasnodębski, Andrius Kubilius, Miapetra Kumpula-Natri, Thierry Mariani, Eva Maydell, Joëlle Mélin, Angelika Niebler, Ville Niinistö, Aldo Patriciello, Mauri Pekkarinen, Mikuláš Peksa, Tsvetelina Penkova, Morten Petersen, Markus Pieper, Clara Ponsatí Obiols, Sira Rego, Manuela Ripa, Jérôme Rivière, Robert Roos, Sara Skyttedal, Maria Spyraki, Jessica Stegrud, Beata Szydło, Grzegorz Tobiszowski, Patrizia Toia, Evžen Tošenovský, Marie Toussaint, Isabella Tovaglieri, Henna Virkkunen, Pernille Weiss, Carlos Zorrinho

Substitutes present for the final vote

Damian Boeselager, Tomas Tobé

54

+

EPP

Hildegard Bentele, Tom Berendsen, Vasile Blaga, Cristian-Silviu Buşoi, Jerzy Buzek, Maria Da Graça Carvalho, Pilar Del Castillo Vera, Christian Ehler, András Gyürk, Seán Kelly, Andrius Kubilius, Eva Maydell, Angelika Niebler, Aldo Patriciello, Markus Pieper, Sara Skyttedal, Maria Spyraki, Tomas Tobé, Henna Virkkunen, Pernille Weiss

S&D

Carlo Calenda, Josianne Cutajar, Lina Gálvez Muñoz, Nicolás González Casares, Robert Hajšel, Ivo Hristov, Romana Jerković, Eva Kaili, Łukasz Kohut, Miapetra Kumpula-Natri, Tsvetelina Penkova, Patrizia Toia, Carlos Zorrinho

RENEW

Nicola Beer, Nicola Danti, Martina Dlabajová, Valter Flego, Claudia Gamon, Bart Groothuis, Christophe Grudler, Ivars Ijabs, Mauri Pekkarinen, Morten Petersen

ID

Paolo Borchia, Andrea Caroppo, Thierry Mariani, Joëlle Mélin, Jérôme Rivière, Isabella Tovaglieri

ECR

Izabela-Helena Kloc, Zdzisław Krasnodębski, Beata Szydło, Grzegorz Tobiszowski, Evžen Tošenovský

13

-

GREENS

Michael Bloss, Damien Boeslager, Ciarán Cuffe, Henrike Hahn, Ville Niinistö, Mikuláš Peksa, Marie Toussaint

ECR

Robert Roos, Jessica Stegrud

GUE

Manuel Bompard, Marc Botenga, Sira Rego

NI

Ignazio Corrao

4

0

EPP

François-Xavier Bellamy

S&D

Niels Fuglsang

Greens

Manuela Ripa

NI

Clara Ponsatí Obiols

Text proposed by the Commission

Amendment

(1) The Commission adopted a Communication on the European Green Deal on 11 December 20191, drawing its roadmap towards a new growth policy for Europe and setting ambitious objectives to counter climate change and for environmental protection. In line with the objective to achieve climate neutrality in the Union by 2050 in an effective and fair manner, the European Green Deal announced a Just Transition Mechanism to provide means for facing the climate challenge while leaving no one behind. The most vulnerable regions and people are the most exposed to the harmful effects of climate change and environmental degradation. At the same time, managing the transition requires significant structural changes.

(1) The Commission adopted a Communication on the European Green Deal on 11 December 20191, drawing its roadmap towards a new growth policy for Europe and setting ambitious objectives to counter climate change and for environmental protection. In line with the objective to achieve the Union's 2030 climate and energy targets, and climate neutrality by 2050 in an effective and fair manner, the European Green Deal announced a Just Transition Mechanism to provide support and means for facing the climate challenge while leaving no one behind. The most vulnerable regions and people are the most exposed to the harmful effects of climate change and environmental degradation leading to depopulation of the regions affected. At the same time, managing the transition requires significant structural changes, which will require ambitious funding from the Union, and while Member States have different starting position, the least developed regions, outermost regions, mountains, islands, sparsely populated, rural, remote and geographically disadvantaged areas with small population are those where the transition in energy towards climate neutrality is more difficult to implement.  

__________________

__________________

1 COM(2019) 640 final.

1 COM(2019) 640 final.

Text proposed by the Commission

Amendment

(2) The Commission adopted a Communication on the European Green Deal Investment Plan2 on 14 January 2020, establishing the Just Transition Mechanism which focuses on the regions and sectors that are most affected by the transition given their dependence on fossil fuels, including coal, peat and oil shale or greenhouse gas-intensive industrial processes but have less capacity to finance the necessary investments. The Just Transition Mechanism consists of three pillars: a Just Transition Fund implemented under shared management, a dedicated just transition scheme under InvestEU, and a public sector loan facility to mobilise additional investments to the regions concerned.

(2) The Commission adopted a Communication on the European Green Deal Investment Plan2 on 14 January 2020, establishing the Just Transition Mechanism which focuses on the regions, people and sectors that are most affected by the transition given their dependence on fossil fuels, including coal, peat and oil shale or greenhouse gas-intensive industrial processes but have less capacity to finance the necessary investments. The Just Transition Mechanism consists of three pillars: a Just Transition Fund implemented under shared management, a dedicated just transition scheme under InvestEU, and a public sector loan facility to mobilise additional investments to the regions concerned.

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2 COM(2020) 21 final.

2 COM(2020) 21 final.

Text proposed by the Commission

Amendment

(3) The proposal for establishing the Just Transition Fund was adopted by the Commission on 14 January 20203. For the better programming and implementation of the Fund, territorial just transition plans are to be adopted, setting out the key steps and timeline of the transition process and identifying the territories most negatively affected by the transition towards a climate neutral economy and with less capacity to deal with the transition challenges.

(3) The proposal for establishing the Just Transition Fund was adopted by the Commission on 14 January 20203. For the better programming and implementation of the Fund, territorial just transition plans are to be adopted, setting out the key steps and timeline of the transition process towards reaching the 2030 climate targets of the Union as defined in Article 2(11) of Regulation (EU) 2018/19993a and identifying the territories most negatively affected by the transition towards a climate neutral economy by 2050 and with less capacity to deal with the social and environmental transition challenges. The partnership principle should apply for the preparation, implementation, monitoring and evaluation of the territorial just transition plans as referred to in Article [7] of Regulation [JTF Regulation].

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3 COM(2020) 22 final.

3 COM(2020) 22 final.

3a Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1.).

Text proposed by the Commission

Amendment

(4) A public sector loan facility (the ‘Facility’) should be provided. It constitutes the third pillar of the Just Transition Mechanism, supporting public sector entities in their investments. Such investments should meet the development needs resulting from the transition challenges described in the territorial just transition plans as adopted by the Commission. The activities envisaged for support should be consistent with, and complement those supported under the other two pillars of the Just Transition Mechanism.

(4) A public sector loan facility (the ‘Facility’) should be provided. It constitutes the third pillar of the Just Transition Mechanism, supporting public sector entities in their investments. Such investments should meet the development needs resulting from the transition challenges described in the territorial just transition plans as adopted by the Commission with due consideration of the characteristics and the  potential of the area to be developed The activities envisaged for support should be consistent with, complement and ensure synergies with those supported under the other two pillars of the Just Transition Mechanism. Such activities should also be in line with the 2030 emissions reduction targets and aimed at achieving a climate-neutral economy by 2050.

Text proposed by the Commission

Amendment

(5) In order to enhance the economic diversification of territories impacted by the transition, the Facility should cover a wide range of investments, on condition that they contribute to meet the development needs in the transition towards a climate neutral economy, as described in the territorial just transition plans. The investments supported may cover energy and transport infrastructure, district heating networks, green mobility, smart waste management, clean energy and energy efficiency measures including renovations and conversions of buildings, support to transition to a circular economy, land restoration and decontamination, as well as up- and re-skilling, training and social infrastructure, including social housing. Infrastructure developments may also include solutions leading to their enhanced resilience to withstand disasters. Comprehensive investment approach should be favoured in particular for territories with important transition needs. Investments in other sectors could also be supported if they are consistent with the adopted territorial just transition plans. By supporting investments that do not generate sufficient revenues, the Facility aims at providing public sector entities with additional resources necessary to address the social, economic and environmental challenges resulting from the adjustment to climate transition. In order to help identify investments with a high positive environmental impact eligible under the Facility, the EU taxonomy on environmentally sustainable economic activities may be used.

(5) In order to enhance the economic diversification of territories most negatively impacted by the transition, the Facility should cover a wide range of investments, on condition that they contribute to meet the development needs in the transition towards the Union’s 2030 climate and energy targets, and a climate neutral economy by 2050, as described in the territorial just transition plans. The investments supported may cover smart energy systems , an environmentally-friendly and decarbonised transport sector infrastructure, high efficient district heating networks, zero-carbon, smart and sustainable mobility, investments in research and innovation activities, including in universities and public research institutions, fostering the transfer of advanced and market-ready technologies, investments in digitalisation, digital innovation and digital connectivity, including digital and precision farming, waste management in accordance with the waste hierarchy, greenhouse gas emission reduction, clean energy and energy efficiency measures including renovations and conversions of buildings, support to transition to a circular economy, fight against the depopulation process, land restoration and decontamination when the “polluters pays” principle cannot be applied, as well as up- and re-skilling, training and social infrastructure, including social housing, as well as the digital coverage of the regions and the improvement of broadband connections. All financed projects should be in line with the climate objectives set for 2030, so the Commission should study the adequacy of these projects to the goal in relation to the reduction of emissions. Infrastructure developments may also include solutions leading to their enhanced resilience to withstand disasters and coordination of crisis response capacities, especially in those regions that have been hit hard by extreme weather events in recent years. Comprehensive investment approach should be favoured in particular for territories with important transition needs. Investments in other sectors could also be supported if they are consistent with the adopted territorial just transition plans, and having been affected by the climate transition, they have not been able to benefit from the First Pillar of the Just Transition Mechanism, the Just Transition Fund. By supporting investments that do not generate sufficient revenues, the Facility aims at providing public sector entities with additional resources necessary to address the social, economic and environmental challenges resulting from the adjustment to climate transition. Relevant local and regional authorities, economic and social partners and civil society of the territories concerned should be involved in the process of identification of the investments supported by the Facility in accordance with the partnership principle laid down in Article 6 of Regulation (EU) … /… [new CPR]. In order to help identify investments with a high positive environmental impact eligible under the Facility, the EU taxonomy on environmentally sustainable economic activities should be used. The devastating consequences of COVID-19 on many Union regions as well as the uneven impact of the virus should also be taken into account, in order to ensure that the support goes to the most negatively impacted regions.

Text proposed by the Commission

Amendment

(5a) In the context of the efforts to increase economic, territorial and social cohesion, the   Facility should also contribute to eliminating inequalities, promoting gender equality and integrating the gender perspective, as well as combating discrimination   based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation as set out in Article 2 of the Treaty on European Union (TEU), Article 10 TFEU and Article 21 of the Charter of Fundamental Rights of the European Union. All stakeholders involved at all stages of implementation of the Facility should commit to promote equality, and in particular, ensure that the impact on women is taken into account, given that  women are disproportionately impacted by climate change and the transition process.

Text proposed by the Commission

Amendment

(12) Resources for advisory support should also be provided for in order to promote the preparation, development and implementation of projects.

(12) Resources for advisory support and expertise should also be provided for in order to promote the preparation, development and implementation of projects.

Text proposed by the Commission

Amendment

(13) In order to ensure that all Member States are granted the possibility to benefit from the grant component, a mechanism should be set up to establish earmarked national shares to be respected during a first stage, based on the distribution key proposed in the Just Transition Fund Regulation. However, in order to reconcile that objective with the need to optimise the economic impact of the Facility and its implementation, such national allocations should not be earmarked after 31 December 2024. Thereafter, the remaining resources available for the grant component should be provided without any pre-allocated national share and on a competitive basis at Union level, while ensuring predictability for investment and following a needs-based and regional convergence approach.

(13) In order to ensure that all Member States are granted the possibility to benefit from the grant component, a mechanism should be set up to establish earmarked national shares to be respected during a first stage, based on the distribution key proposed in the Just Transition Fund Regulation. The needs of less developed regions as referred to in Article [102(2)] of Regulation .../... [new CPR] should be taken into account. However, in order to reconcile that objective with the need to optimise the economic impact of the Facility and its implementation, such national allocations should not be earmarked after 31 December 2024. Thereafter, the remaining resources available for the grant component should be provided without any pre-allocated national share and on a competitive basis at Union level, while ensuring predictability for investment , following a needs-based approach and promoting economic, social and territorial cohesion, prioritising in particular the less developed regions that suffer from a lower capacity for public investment.

Text proposed by the Commission

Amendment

(14) Specific eligibility conditions and award criteria should be set out in the work programme and the call for proposals. Those eligibility conditions and award criteria should take into account the relevance of the project in the context of the development needs described in the territorial just transition plans, the overall objective of promoting regional and territorial convergence and the significance of the grant component for the viability of the project. Union Support established by this Regulation should thus only be made available to Member States with at least one territorial just transition plan adopted. The work programme and calls for proposals will also take into account the territorial just transition plans submitted by Member States to ensure that coherence and consistency across the different pillars of the mechanism is ensured.

(14) Specific eligibility conditions and award criteria should be set out in the work programme and the call for proposals. Those eligibility conditions and award criteria should take into account the relevant criteria established by Regulation (EU) … /... of the European Parliament and the Council [Regulation on establishment of a framework to facilitate sustainable investment], the ability of the project to meet the objectives of the development needs described in the territorial just transition plans, the contribution to the achievement of the Union’s 2030 climate and energy targets, and climate neutrality by 2050, the overall objective of promoting  economic, social and territorial cohesion, and reducing the development gap between regions, and the significance of the grant component for the viability of the project, as well as the commitment by the Member States in relation to the climate objectives set in the European Green Deal. The Commission should ensure that that gender equality and the integration of the gender perspective are taken into account and promoted in the work programme. Union Support established by this Regulation should thus only be made available to Member States with at least one territorial just transition plan adopted. The work programme and calls for proposals will also take into account the territorial just transition plans submitted by Member States to ensure that coherence and consistency across the different pillars of the mechanism is ensured.

Text proposed by the Commission

Amendment

(16) Since the grant component should reflect the divergent development needs of regions across Member States, such support should be modulated. Taking into account that public sector entities in less developed regions, as defined in Article 102(2) of Regulation [new CPR], generally experience lower public investment capacity, the grant rates applied to loans provided to such entities should be comparatively higher.

(16) Since the grant component should reflect the divergent development needs of regions across Member States, as well as the compliance of those regions with the greenhouse gas emissions reduction targets, such support should be modulated. Taking into account that public sector entities in less developed regions, as defined in Article 102(2) of Regulation [new CPR], in the outermost regions, as defined in Article 349 TFEU, and in rural, sparsely populated and depopulated areas, generally experience lower public investment capacity, the grant rates applied to loans provided to such entities should be comparatively higher.

Text proposed by the Commission

Amendment

(18) In order to speed up implementation and ensure that resources are used in a timely fashion, this Regulation should lay down specific safeguards to be included in the grant agreements. In view of that objective, the Commission, in line with the principle of proportionality, should be able to reduce or terminate any Union support in case of serious lack of progress in the implementation of the project. The Financial Regulation lays down rules on the implementation of the Union budget. In order to ensure coherence in the implementation of Union funding programmes, the Financial Regulation should apply to the grant component and to resources for advisory support provided under this Facility.

(18) In order to speed up implementation and ensure that resources are used in a timely fashion, this Regulation should lay down specific safeguards to be included in the grant agreements. In view of that objective, the Commission, in line with the principle of proportionality, should be able to reduce or terminate any Union support in case of serious lack of progress in the implementation of the project, as well as in the event of non-compliance with the objective of reducing emissions. The Commission, after notifying the Member State concerned of the reduction or termination of Union support, should communicate to the Council and the European Parliament the reasons for the reduction or termination. The Financial Regulation lays down rules on the implementation of the Union budget. In order to ensure coherence in the implementation of Union funding programmes, the Financial Regulation should apply to the grant component and to resources for advisory support provided under this Facility.

Text proposed by the Commission

Amendment

(19) In accordance with the Financial Regulation and Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council and Council Regulations (Euratom, EC) No 2988/95, (Euratom, EC) No 2185/96 and (EU) 2017/1939, the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities, including fraud, the recovery of funds lost, wrongly paid or incorrectly used, and, where appropriate, the imposition of administrative penalties. In particular, in accordance with Regulations (Euratom, EC) No 2185/96 and (EU, Euratom) No 883/2013, the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute offences against the financial interests of the Union, as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council. In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the financial interests of the Union, grant the necessary rights and access to the Commission, OLAF, the EPPO in respect of those Member States participating in enhanced cooperation pursuant to Regulation (EU) 2017/1939, and the European Court of Auditors (ECA), and ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(19) In accordance with the Financial Regulation and Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council and Council Regulations (Euratom, EC) No 2988/95, (Euratom, EC) No 2185/96 and (EU) 2017/1939, the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities, including fraud, the recovery of funds lost, wrongly paid or incorrectly used, and, where appropriate, the imposition of administrative penalties. Any irregularities identified should be communicated to the European Parliament and the Council. In particular, in accordance with Regulations (Euratom, EC) No 2185/96 and (EU, Euratom) No 883/2013, the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute offences against the financial interests of the Union, as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council. In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the financial interests of the Union, grant the necessary rights and access to the Commission, OLAF, the EPPO in respect of those Member States participating in enhanced cooperation pursuant to Regulation (EU) 2017/1939, and the European Court of Auditors (ECA), and ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

Text proposed by the Commission

Amendment

(21) In order to set out an appropriate financial framework for the grant component of this Facility until 31 December 2024, implementing powers should be conferred on the Commission to set out the available national allocations expressed as shares of the overall financial envelope of the Facility for each Member State in accordance with the methodology set out in Annex I of Regulation [the JTF Regulation]. The implementing powers should be conferred without comitology procedures given that the shares derive directly from the application of a pre-defined calculation methodology.

(21) In order to set out an appropriate financial framework for the grant component of this Facility until 31 December 2024, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of setting out the available national allocations expressed as shares of the overall financial envelope of the Facility for each Member State.

Text proposed by the Commission

Amendment

The Facility shall provide support benefitting Union territories facing serious social, environmental and economic challenges deriving from the transition process towards a climate-neutral economy of the Union by 2050.

The Facility shall provide support benefitting Union territories facing serious social, environmental and economic challenges deriving from the transition process towards the Union’s 2030 climate and energy targets, and a climate-neutral economy by 2050.

Text proposed by the Commission

Amendment

2. 'beneficiary' means a public sector legal entity established in a Member State as a public law body, or as a body governed by private law entrusted with a public service mission, with whom a grant agreement has been signed under the Facility;

2. 'beneficiary' means a public sector legal entity established in a Member State as a public law body, or as a body governed by private law entrusted with the implementation of a public-private partnership (PPP) or with another public service mission with whom a grant agreement has been signed under the Facility;

Text proposed by the Commission

Amendment

5 'territorial just transition plan' means a plan established in accordance with Article 7 of Regulation [JTF Regulation] and approved by the Commission;

5 'territorial just transition plan' means a plan established in accordance with Article 7 of Regulation [JTF Regulation] and in accordance with the partnership principle laid down in Article 6 of Regulation (EU) … /… [new CPR],and approved by the Commission;

Text proposed by the Commission

Amendment

1. The general objective of the Facility is to address serious socio-economic challenges deriving from the transition process towards a climate-neutral economy for the benefit of the Union territories identified in the territorial just transition plans prepared by the Member States in accordance with Article 7 of Regulation [JTF Regulation].

1. The general objective of the Facility is to address serious socio-economic and environmental challenges deriving from the transition process towards a climate-neutral economy for the benefit of the Union territories identified in the territorial just transition plans prepared by the Member States in accordance with Article 7 of Regulation [JTF Regulation], and to contribute to achieving the Union’s 2030 climate and energy targets, and climate neutrality by 2050, in line with Paris Agreement objectives.

Text proposed by the Commission

Amendment

2. The Facility shall have the specific objective of increasing public sector investments, which address the development needs of regions identified in the territorial just transition plans, by facilitating the financing of projects that do not generate a sufficient stream of own revenues and would not be financed without the element of grant support from the Union budget.

2. The Facility shall have the specific objective of increasing public sector investments, which address the development needs of regions identified in the territorial just transition plans, by facilitating the financing of environmentally sustainable projects that do not generate a sufficient stream of own revenues and would not be financed without the element of grant support from the Union budget. Special attention shall be placed on less developed regions as referred to in Article [102(2)] of Regulation .../... [new CPR].

The Facility shall also promote the transition towards an economy which is climate neutral, environmentally sustainable and economically and socially just, and which guarantees social cohesion between territories of the Union.

Text proposed by the Commission

Amendment

3. In pursuing the achievement of the specific objective referred to in paragraph 2, this Regulation also aims at providing advisory support for the preparation, development, and implementation of eligible projects where necessary. That advisory support shall be provided in accordance with the rules and implementation methods for the InvestEU Advisory Hub established by Article [20] of Regulation [InvestEU Regulation].

3. In pursuing the achievement of the specific objective referred to in paragraph 2, this Regulation also aims at providing advisory support and expertise for the preparation, development, and implementation of eligible projects where necessary. That advisory support shall be provided in accordance with the rules and implementation methods for the InvestEU Advisory Hub established by Article [20] of Regulation [InvestEU Regulation].

Text proposed by the Commission

Amendment

5. An amount up to 2% of the resources referred to in paragraph 1 may be used for technical and administrative assistance for the implementation of the Facility such as preparatory, monitoring, control, audit and evaluation activities including corporate information and technology systems, as well as administrative expenditure and fees of the finance partners.

5. An amount up to 2% of the resources referred to in paragraph 1 may be used for technical and administrative assistance for the implementation of the Facility such as preparatory, monitoring, control, audit, information, communication, publicity and evaluation activities including corporate information and technology systems, as well as administrative expenditure and fees of the finance partners.

Text proposed by the Commission

Amendment

Article 4 a

Access to the resources

1. Access to the Facility shall be conditional on the adoption of a national objective towards the achievement of climate neutrality by 2050. For those Member States, which have not yet committed to a national target for climate neutrality, only 50 % of their national allocation shall be released, while the remaining 50 % shall be made available once they have adopted that target.

2. Access to the Facility shall be conditional to the respect for the rule of law, which is an essential precondition for sound financial management and effective Union funding, as well as the respect for human rights, including the rights of the minorities such as LGBTI rights, which are undermined in several Member States as a consequence of the creation of LGBTI free zones. The Commission shall reject applications from local authorities that have adopted "LGBT-free" declarations.

Text proposed by the Commission

Amendment

3. For grants awarded pursuant to calls for proposals launched as from 1 January 2025, Union support awarded to eligible projects shall be provided without any pre-allocated national share and on a competitive basis at Union level until exhaustion of remaining resources. The award of such grants shall take into account the need to ensure predictability of investment and the promotion of regional convergence.

3. For grants awarded pursuant to calls for proposals launched as from 1 January 2025, Union support awarded to eligible projects shall be provided without any pre-allocated national share and on a competitive basis at Union level until exhaustion of remaining resources. The award of such grants shall prioritise less developed regions as referred to in Article [102(2)] of Regulation .../... [new CPR] and take into account the need to ensure predictability of investment and the promotion of regional convergence.

Text proposed by the Commission

Amendment

4. The Commission shall adopt a decision by means of an implementing act setting out the respective shares for each Member State resulting from the application of the methodology set out in Annex I of Regulation [JTF Regulation] in the form of percentages of the total available resources.

4. The Commission shall be empowered to adopt delegated acts in accordance with Article 17 setting out the respective shares for each Member State resulting from the application of the methodology set out in Annex I of Regulation [JTF Regulation] and the application of a redistributive factor taking   into account the need of less developed regions as referred to in Article [102(2)] of Regulation .../... [new CPR] in the form of percentages of the total available resources.

Text proposed by the Commission

Amendment

(a) the projects achieve measurable impact in addressing serious social, economic or environmental challenges deriving from the transition process towards a climate-neutral economy and benefit territories identified in a territorial just transition plan, even if they are not located in those territories;

(a) the projects achieve measurable impact in addressing serious social, economic, demographic or environmental challenges deriving from the transition process towards a climate-neutral economy, contribute to achieving the Union’s 2030 climate and energy targets, and climate neutrality by 2050, and benefit territories identified in a territorial just transition plan, even if they are not located in those territories;

Text proposed by the Commission

Amendment

(aa)  the projects are environmentally sustainable in accordance with the criteria established in Regulation (EU) 2020/852 of the European Parliament and of the Council 14a;

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14a Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).

Text proposed by the Commission

Amendment

(b) the projects do not receive support under any other Union programmes;

(b) the projects do not receive support or receive insufficient support under any other Union programmes;

Text proposed by the Commission

Amendment

(da)  the projects do not support activities excluded under Article [5] of Regulation (EU) … /... [JTF Regulation].

Text proposed by the Commission

Amendment

(db) the projects guarantee that they will not involve any jobs, capital or production processes being transferred from one Member State to another.

Text proposed by the Commission

Amendment

2. The amount of the grant shall not exceed 15% of the amount of the loan provided by the finance partner under this Facility. For projects located in territories in NUTS level 2 regions with a GDP per capita not exceeding 75% of the average GDP of the EU-27 as referred to in Article [102(2)] of Regulation [new CPR], the amount of the grant shall not exceed 20% of the amount of the loan provided by the finance partner.

2. The amount of the grant shall not exceed 15% of the amount of the loan provided by the finance partner under this Facility. For projects located in territories in NUTS level 2 regions as established by Regulation (EC) No 1059/2003 of the European Parliament and of the Council14b with a GDP per capita not exceeding 75% of the average GDP of the EU-27 as referred to in Article [102(2)] of Regulation [new CPR], and for transition regions with a GDP of between 75 % and 100 % of the average GDP of the EU-27 and which were classified as ‘lagging regions’ in the 2014-2020 financial perspective, as well as for projects located in outermost regions, as defined in Article 349 TFEU, the amount of the grant shall not exceed  25 % of the amount of the loan provided by the finance partner.

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14b Regulation (EC) No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS) (OJ L 154, 21.6.2003, p. 1).

Text proposed by the Commission

Amendment

In such cases and after consulting the finance partner, the amount of the grant may be reduced or the grant agreement may be terminated, and any related amounts paid may be recovered, in accordance with the conditions set out in the grant agreement.

In such cases and after consulting the finance partner, the amount of the grant may be reduced or the grant agreement may be terminated, and any related amounts paid may be recovered, in accordance with the conditions set out in the grant agreement. The amount of the grant may be reduced or the grant agreement may be terminated if the mid-term review finds non-compliance with the objectives established in Article 3 of.

Text proposed by the Commission

Amendment

The Facility shall be implemented by work programmes established in accordance with Article 110 of the Financial Regulation. The work programmes shall set out the national shares of resources, including any additional resources, for each Member State in accordance with Articles 4(1) and 6(2) of this Regulation.

The Facility shall be implemented by work programmes established in accordance with Article 110 of the Financial Regulation The Commission shall be empowered to adopt delegated acts in accordance with Article 17 adopting such work programmes. The work programmes shall specify the eligibility conditions and award criteria, taking into account the relevant criteria established by Regulation (EU) 2020/852, the ability of the project to meet the objectives and development needs described in the territorial just transition plans, the contribution to the achievement of the Union’s 2030 climate and energy targets, and climate neutrality by 2050, the overall objective of promoting regional and territorial convergence and the significance of the grant component for the viability of the project. The Commission shall ensure that gender equality and the integration of gender perspective are taken into account and promoted in the work programme. The work programmes shall set out the national shares of resources, including any additional resources, for each Member State in accordance with Articles 4(1) and 6(2) of this Regulation.

Text proposed by the Commission

Amendment

Evaluation

Evaluation and revision

Text proposed by the Commission

Amendment

3. At the end of the implementation period and no later than 31 December 2031, a final evaluation report on the results and long-term impact of the Facility shall be established.

3. At the end of the implementation period and no later than 31 December 2031, a final evaluation report on the results and long-term impact of the Facility shall be presented to the European Parliament and the Council, to determine whether the funded projects have contributed to face the economic, social, demographic and environmental challenges in the respective regions. This final evaluation shall assess the contribution the Facility has made to the achievement of the Union’s 2030 climate and energy targets, and a climate neutral economy by 2050, as well as the social and economic impact of the support provided under the Facility, including the impact on the promotion of gender equality..

Text proposed by the Commission

Amendment

2. The power to adopt delegated acts referred to in Article 14 shall be conferred on the Commission until 31 December 2028.

2. The power to adopt delegated acts referred to in Articles 6, 13 and 14 shall be conferred on the Commission until 31 December 2028.

Text proposed by the Commission

Amendment

3. The delegation of power referred to in Article 14 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 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.

3. The delegation of power referred to in Articles 6, 13 and 14 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 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.

Text proposed by the Commission

Amendment

1. The beneficiaries and the finance partners shall ensure the visibility of the Union support provided under the Facility, in particular when promoting the projects and their results, by providing targeted information to multiple audiences, including the media and the public.

1. The beneficiaries and the finance partners, with the support of national and regional authorities, shall ensure the visibility of the Union support provided under the Facility, in particular when promoting the projects and their results, by providing targeted information to multiple audiences, using various communication channels, including the media, social media and the public.

The information about the Union support shall be provided in clear, approachable and attractive manner, using a variety of communication channels.

Text proposed by the Commission

Amendment

2. The Commission shall implement information and communication actions relating to the Facility, the funded projects and their results. Financial resources allocated to the Facility shall also contribute to the corporate communication of the political priorities of the Union, as far as they are related to the objectives referred to in Article 3.

2. The Commission shall implement information and communication actions relating to the Facility, ensure transparency and public access to information concerning the funded projects and their results and shall measure the effectiveness of the messages. Financial resources allocated to the Facility shall also contribute to the corporate communication of the political priorities of the Union, as far as they are related to the objectives referred to in Article 3.

Text proposed by the Commission

Amendment

(7a) Stemming depopulation in regions affected by climate transition

Title

Public sector loan facility under the Just Transition Mechanism

References

COM(2020)0453 – C9-0153/2020 – 2020/0100(COD)

Committees responsible

 Date announced in plenary

BUDG

17.6.2020

ECON

17.6.2020

Opinion by

 Date announced in plenary

REGI

17.6.2020

Rapporteur

 Date appointed

Cristina Maestre Martín De Almagro

9.6.2020

Rule 58 – Joint committee procedure

 Date announced in plenary

23.7.2020

Date adopted

24.9.2020

Result of final vote

+:

–:

0:

24

7

9

Members present for the final vote

François Alfonsi, Mathilde Androuët, Pascal Arimont, Adrian-Dragoş Benea, Isabel Benjumea Benjumea, Tom Berendsen, Stéphane Bijoux, Andrea Cozzolino, Corina Crețu, Rosa D’Amato, Tamás Deutsch, Christian Doleschal, Francesca Donato, Chiara Gemma, Cristian Ghinea, Mircea-Gheorghe Hava, Krzysztof Hetman, Ondřej Knotek, Constanze Krehl, Elżbieta Kruk, Cristina Maestre Martín De Almagro, Pedro Marques, Nora Mebarek, Martina Michels, Andżelika Anna Możdżanowska, Andrey Novakov, Younous Omarjee, Alessandro Panza, Tsvetelina Penkova, Caroline Roose, André Rougé, Vincenzo Sofo, Susana Solís Pérez, Irène Tolleret, Viktor Uspaskich, Monika Vana

Substitutes present for the final vote

Daniel Buda, Stelios Kympouropoulos, Tonino Picula, Bronis Ropė

24

+

GUE/NGL

Martina Michels, Younous Omarjee

NI

Rosa D'Amato, Chiara Gemma

PPE

Pascal Arimont

RENEW

Stéphane Bijoux, Cristian Ghinea, Ondrej Knotek, Susana Solís Pérez, Irène Tolleret, Viktor Uspaskich

S&D

Adrian-Dragoş Benea, Andrea Cozzolino, Corina Crețu, Constanze Krehl, Cristina Maestre Martín De Almagro, Pedro Marques, Nora Mebarek, Tsvetelina Penkova, Tonino Picula

VERTS/ALE

François Alfonsi, Caroline Roose, Bronis Ropė, Monika Vana

7

-

ID

Mathilde Androuët, Francesca Donato, Alessandro Panza, André Rougé, Vincenzo Sofo

ECR

Elżbieta Kruk, Andżelika Anna Możdżanowska

9

0

PPE

Isabel Benjumea Benjumea, Tom Berendsen, Daniel Buda, Tamás Deutsch, Christian Doleschal, Mircea-Gheorghe Hava, Krzysztof Hetman, Stelios Kympouropoulos, Andrey Novakov

Title

Public sector loan facility under the Just Transition Mechanism

References

COM(2020)0453 – C9-0153/2020 – 2020/0100(COD)

Date submitted to Parliament

28.5.2020

Committees responsible

 Date announced in plenary

BUDG

17.6.2020

ECON

17.6.2020

Committees asked for opinions

 Date announced in plenary

EMPL

17.6.2020

ENVI

17.6.2020

ITRE

17.6.2020

TRAN

17.6.2020

REGI

17.6.2020

Not delivering opinions

 Date of decision

EMPL

25.6.2020

TRAN

23.6.2020

Rapporteurs

 Date appointed

Johan Van Overtveldt

22.7.2020

Henrike Hahn

22.7.2020

Rule 58 – Joint committee procedure

 Date announced in plenary

23.7.2020

Date adopted

16.10.2020

Result of final vote

+:

–:

0:

75

10

12

Members present for the final vote

Rasmus Andresen, Clotilde Armand, Gunnar Beck, Marek Belka, Isabel Benjumea Benjumea, Stefan Berger, Robert Biedroń, Anna Bonfrisco, Gilles Boyer, Olivier Chastel, Lefteris Christoforou, David Cormand, Paolo De Castro, Francesca Donato, Derk Jan Eppink, Engin Eroglu, Markus Ferber, José Manuel Fernandes, Jonás Fernández, Raffaele Fitto, Frances Fitzgerald, José Manuel García-Margallo y Marfil, Eider Gardiazabal Rubial, Luis Garicano, Alexandra Geese, Valentino Grant, Claude Gruffat, Elisabetta Gualmini, Francisco Guerreiro, Enikő Győri, Valérie Hayer, Eero Heinäluoma, Niclas Herbst, Monika Hohlmeier, Danuta Maria Hübner, Stasys Jakeliūnas, Herve Juvin, Othmar Karas, Billy Kelleher, Mislav Kolakušić, Moritz Körner, Joachim Kuhs, Zbigniew Kuźmiuk, Georgios Kyrtsos, Aurore Lalucq, Hélène Laporte, Pierre Larrouturou, Aušra Maldeikienė, Margarida Marques, Pedro Marques, Costas Mavrides, Jörg Meuthen, Csaba Molnár, Siegfried Mureşan, Caroline Nagtegaal, Luděk Niedermayer, Lefteris Nikolaou-Alavanos, Andrey Novakov, Jan Olbrycht, Dimitrios Papadimoulis, Piernicola Pedicini, Lídia Pereira, Kira Marie Peter-Hansen, Sirpa Pietikäinen, Dragoș Pîslaru, Evelyn Regner, Antonio Maria Rinaldi, Bogdan Rzońca, Alfred Sant, Joachim Schuster, Ralf Seekatz, Pedro Silva Pereira, Nicolae Ştefănuță, Paul Tang, Irene Tinagli, Nils Torvalds, Ernest Urtasun, Nils Ušakovs, Inese Vaidere, Johan Van Overtveldt, Rainer Wieland, Angelika Winzig, Stéphanie Yon-Courtin, Marco Zanni, Roberts Zīle

Substitutes present for the final vote

Matteo Adinolfi, Manon Aubry, Tiziana Beghin, Damien Carême, Tamás Deutsch, Niels Fuglsang, Henrike Hahn, Martin Hlaváček, Eugen Jurzyca, Petros Kokkalis, Eva Maydell, Mick Wallace

Date tabled

16.10.2020

75

+

ECR

Johan Van Overtveldt

GUE/NGL

Manon Aubry, Petros Kokkalis, Dimitrios Papadimoulis, Mick Wallace

NI

Tiziana Beghin, Piernicola Pedicini

PPE

Isabel Benjumea Benjumea, Stefan Berger, Lefteris Christoforou, Markus Ferber, José Manuel Fernandes, Frances Fitzgerald, José Manuel García‑Margallo y Marfil, Niclas Herbst, Monika Hohlmeier, Danuta Maria Hübner, Othmar Karas, Georgios Kyrtsos, Aušra Maldeikienė, Eva Maydell, Siegfried Mureşan, Luděk Niedermayer, Jan Olbrycht, Lídia Pereira, Sirpa Pietikäinen, Ralf Seekatz, Inese Vaidere, Rainer Wieland, Angelika Winzig

RENEW

Clotilde Armand, Gilles Boyer, Olivier Chastel, Engin Eroglu, Luis Garicano, Valérie Hayer, Martin Hlaváček, Billy Kelleher, Moritz Körner, Caroline Nagtegaal, Dragoș Pîslaru, Nils Torvalds, Stéphanie Yon‑Courtin, Nicolae Ştefănuță

S&D

Marek Belka, Robert Biedroń, Paolo De Castro, Jonás Fernández, Niels Fuglsang, Eider Gardiazabal Rubial, Elisabetta Gualmini, Eero Heinäluoma, Aurore Lalucq, Pierre Larrouturou, Margarida Marques, Pedro Marques, Costas Mavrides, Csaba Molnár, Evelyn Regner, Alfred Sant, Joachim Schuster, Pedro Silva Pereira, Paul Tang, Irene Tinagli, Nils Ušakovs

VERTS/ALE

Rasmus Andresen, Damien Carême, David Cormand, Alexandra Geese, Claude Gruffat, Francisco Guerreiro, Henrike Hahn, Stasys Jakeliūnas, Kira Marie Peter‑Hansen, Ernest Urtasun

10

-

ECR

Derk Jan Eppink, Eugen Jurzyca

ID

Gunnar Beck, Herve Juvin, Joachim Kuhs, Hélène Laporte, Jörg Meuthen

NI

Lefteris Nikolaou‑Alavanos

PPE

Tamás Deutsch, Enikő Győri

12

0

ECR

Raffaele Fitto, Zbigniew Kuźmiuk, Bogdan Rzońca, Roberts Zīle

ID

Matteo Adinolfi, Anna Bonfrisco, Francesca Donato, Valentino Grant, Antonio Maria Rinaldi, Marco Zanni

NI

Mislav Kolakušić

PPE

Andrey Novakov