Procedure : 2018/0229(COD)
Document stages in plenary
Document selected : A8-0482/2018

Texts tabled :

A8-0482/2018

Debates :

PV 15/01/2019 - 16
CRE 15/01/2019 - 16
PV 17/04/2019 - 26
CRE 17/04/2019 - 26

Votes :

PV 16/01/2019 - 21.3
CRE 16/01/2019 - 21.3
Explanations of votes
PV 18/04/2019 - 10.13
CRE 18/04/2019 - 10.13

Texts adopted :

P8_TA(2019)0026
P8_TA(2019)0433

REPORT     ***I
PDF 1978kWORD 351k
20.12.2018
PE 628.640v02-00 A8-0482/2018

on the proposal for a regulation of the European Parliament and of the Council establishing the InvestEU Programme

(COM(2018)0439 – C8‑0257/2018 – 2018/0229(COD))

Committee on Budgets

Committee on Economic and Monetary Affairs

Rapporteurs: José Manuel Fernandes, Roberto Gualtieri

(Joint committee procedure – Rule 55 of the Rules of Procedure)

Rapporteurs for the opinion (*):

Seán Kelly, Committee on Industry, Research and Energy

Wim van de Camp, Committee on Transport and Tourism

(*) Associated committees – Rule 54 of the Rules of Procedure

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
 OPINION of the Committee on Industry, Research and Energy
 OPINION of the Committee on Transport and Tourism
 OPINION of the Committee on the Environment, Public Health and Food Safety
 OPINION of the Committee on Regional Development
 OPINION of the Committee on Culture and Education
 PROCEDURE – COMMITTEE RESPONSIBLE
 FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council establishing the InvestEU Programme

(COM(2018)0439 – C8‑0257/2018 – 2018/0229(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0439),

–  having regard to Article 294(2) and Article 173 and the third paragraph of Article 175 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0257/2018),

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to the opinion of the European Economic and Social Committee of 17 October 2018(1),

–  having regard to the opinion of the Committee of the Regions of 5 December 2018(2),

–  having regard to Rule 59 of its Rules of Procedure,

–  having regard to the joint deliberations of the Committee on Budgets and the Committee on Economic and Monetary Affairs under Rule 55 of the Rules of Procedure,

–  having regard to the report of the Committee on Budgets and the Committee on Economic and Monetary Affairs and also the opinions of the Committee on Industry, Research and Energy, the Committee on Transport and Tourism, the Committee on the Environment, Public Health and Food Safety, the Committee on Regional Development and the Committee on Culture and Education (A8-0482/2018),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment    1

AMENDMENTS BY THE EUROPEAN PARLIAMENT(3)*

to the Commission proposal

---------------------------------------------------------

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing the InvestEU Programme

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 173 and the third paragraph of Article 175 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee(4),

Having regard to the opinion of the Committee of the Regions(5),

Acting in accordance with the ordinary legislative procedure,

Whereas:

(-1)  The European Fund for Strategic Investments has proved to be a valuable tool for the mobilisation of private investments through the use of the EU guarantee and the own resources of the EIB Group.

(1)  With 1,8 % of EU GDP, down from 2,2 % in 2009, infrastructure investment activities in the Union in 2016 were about 20 % below investment rates before the global financial crisis. Thus, while a recovery in investment-to-GDP ratios in the Union can be observed, it remains below what might be expected in a strong recovery period and is insufficient to compensate years of underinvestment. More importantly, the current public and private investment levels and forecasts do not cover the Union’s structural investment for sustaining long-term growth needs in the face of technological change and global competitiveness, including for innovation, skills, infrastructure, small and medium-sized enterprises ('SMEs') and the need to address key societal challenges such as sustainability or population ageing. Consequently, continued support is necessary to address market failures and sub-optimal investment situations to reduce the investment gap in targeted sectors to achieve the Union's policy objectives.

(2)  Evaluations have underlined that the variety of financial instruments delivered under the 2014-2020 Multiannual Financial Framework period has led to some overlaps. That variety has also produced complexity for intermediaries and final recipients who were confronted with different eligibility and reporting rules. Absence of compatible rules also hampered the combination of several Union funds although such combination would have been beneficial to support projects in need of different types of funding. Therefore, a single fund, the InvestEU Fund, should be set up in order to achieve a more efficiently functioning support to final recipients by integrating and simplifying the financial offer under a single budgetary guarantee scheme, thereby improving the impact of Union intervention while reducing the cost to the Union budget.

(3)  In the last years, the Union has adopted ambitious strategies to complete the Single Market and to stimulate sustainable and inclusive growth and jobs, such as the Europe 2020 Strategy, the Capital Markets Union, the Digital Single Market Strategy, the European Agenda for Culture, the Clean Energy for all Europeans package, the Union Action Plan for the Circular Economy, the Low-Emission Mobility Strategy, the ▌Space Strategy for Europe and the European Pillar of Social Rights. The InvestEU Fund should exploit and reinforce synergies between those mutually reinforcing strategies through providing support to investment and access to financing.

(4)  At Union level, the European Semester of economic policy coordination is the framework to identify national reform priorities and monitor their implementation. Member States, in cooperation with local and regional authorities, develop their own national multiannual investment strategies in support of those reform priorities. The strategies should be presented alongside the yearly National Reform Programmes as a way to outline and coordinate priority investment projects to be supported by national or Union funding, or by both. They should also serve to use Union funding in a coherent manner and to maximise the added value of the financial support to be received notably from the European Structural and Investment Funds, the European Investment Stabilisation Function and the InvestEU Fund, where relevant.

(5)  The InvestEU Fund should contribute to improving the competitiveness and socio-economic convergence of the Union, including in the field of innovation ▌, digitisation, the efficient use of resources in accordance with a circular economy, the sustainability and inclusiveness of the Union's economic growth and the social resilience ▌and integration of the Union capital markets, including solutions addressing their fragmentation and diversifying sources of financing for the Union enterprises. This would make the Union economy and the financial system more resilient and increase its capacity to react to cyclical downturns. To that end, the InvestEU Fund should support projects that are technically▌, economically and socially viable by providing a framework for the use of debt, risk sharing and equity instruments underpinned by a guarantee from the Union's budget and by financial contributions from implementing partners as relevant. It should be demand-driven while support under the InvestEU Fund should at the same time focus on providing strategic, long-term benefits in key areas of Union policy which would otherwise not be funded or be insufficiently funded, thereby contributing to meeting policy objectives of the Union.

(5a)  The Commission and the implementing partners should ensure that the InvestEU programme exploits all complementarities and synergies with grant financing and other actions under the policy areas it supports, in line with the objectives of other Union programmes, such as Horizon Europe, the Connecting Europe Facility, the Digital Europe Programme, the Single Market Programme, the European Space Programme, the European Social Fund+, Creative Europe and the Programme for Environment & Climate Action (LIFE).

(5b)  Cultural and creative sectors are resilient and fast growing sectors in the Union, generating both economic and cultural value from intellectual property and individual creativity. However, the intangible nature of their assets limits their access to private financing which is essential to invest, scale-up and compete at an international level. The dedicated guarantee facility created under Creative Europe has successfully strengthened the financial capacity and the competitiveness of cultural and creative companies. Therefore, the InvestEU Programme should continue to facilitate access to finance for SMEs and organisations from the cultural and creative sectors.

(6)  The InvestEU Fund should support investments in tangible and intangible assets, including cultural heritage, to foster sustainable and inclusive growth, investment and employment, and thereby contributing to improved well-being and fairer income distribution and greater economic, social and territorial cohesion in the Union. InvestEU-funded projects should meet Union social and environmental standards, such as respect for labour rights and climate-friendly energy usage and waste management. Intervention through the InvestEU Fund should complement Union support delivered through grants.

(7)  The Union endorsed the objectives set out in the United Nations Agenda 2030 and its Sustainable Development Goals and the Paris Agreement in 2015 as well as the Sendai Framework for Disaster Risk Reduction 2015-2030. To achieve the agreed objectives, including those embedded in the environmental policies of the Union, action pursuing sustainable development is to be stepped up significantly. Therefore, the principles of sustainable development and safety should be the basis of the design of the InvestEU Fund, and fossil-fuel related investments should not be supported unless duly justified on the basis that the investment contributes to the objectives of the Energy Union.

(8)  The InvestEU Programme should contribute to building a sustainable finance system in the Union which supports the re-orientation of private capital towards social and sustainable investments in accordance with the objectives set out in the Commission Action Plan for Financing Sustainable Growth(6).

(8a)  In the spirit of fostering long-term financing and sustainable growth, long-term investments strategies of insurance companies should be encouraged through a revision of the solvency requirements on the contributions for financing investment projects backed by the EU Guarantee in the framework of the InvestEU programme. In order to align the incentives of insurers towards the Union's objective of long term sustainable growth and to remove obstacle to investments under the InvestEU programme, the Commission should therefore take into account this revision as part of the review referred to in Article 77f (3) of Directive 2009/138/EC of the European Parliament and of the Council(7)1a.

(9)  Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, the InvestEU Programme will contribute to mainstream climate actions and to the achievement of an overall target of 25 % of the Union budget expenditures supporting climate objectives over the MFF 2021-2027 period and an annual target of 30 % as soon as possible and at the latest by 2027. Actions under the InvestEU Programme are expected to contribute at least 40 % of the overall financial envelope of the InvestEU Programme to climate objectives. Relevant actions will be identified during the InvestEU Programme's preparation and implementation and reassessed in the context of the relevant evaluations and review processes.

(10)  The contribution of the InvestEU Fund to the achievement of the climate target and sectorial targets included in the 2030 Climate and Energy Framework will be tracked through an EU climate tracking system developed by the Commission in cooperation with implementing partners and using in an appropriate way the criteria established by [Regulation on the establishment of a framework to facilitate sustainable investment(8)] for determining whether an economic activity is environmentally sustainable. The InvestEU Programme should also contribute to the implementation of other dimensions of the Sustainable Development Goals (SDGs).

(11)  According to the 2018 Global Risks Report issued by the World Economic Forum, half of the ten most critical risks threatening the global economy relate to the environment. Such risks include air, soil, inland water and ocean pollution, extreme weather events, biodiversity losses and failures of climate-change mitigation and adaptation. Environmental principles are strongly embedded in the Treaties and many of the Union's policies. Therefore, the mainstreaming of environmental objectives should be promoted in the InvestEU Fund related operations. Environmental protection and related risk prevention and management should be integrated in the preparation and implementation of investments. The EU should also track its biodiversity-related and air pollution control-related expenditure in order to fulfil the reporting obligations under the Convention on Biological Diversity and Directive (EU) 2016/2284 of the European Parliament and of the Council(9) Investment allocated to environmentally sustainability objectives should therefore be tracked using common methodologies coherent with that developed under other Union programmes applying to climate, biodiversity and air pollution management in order to allow assessing the individual and combined impact of investments on the key components of the natural capital, including air, water, land and biodiversity.

(12)  Investment projects receiving substantial Union support, notably in the area of infrastructure, should be subject to sustainability proofing in accordance with guidance that should be developed by the Commission in close cooperation with the implementing partners under the InvestEU Programme after conducting open public consultations and, using in an appropriate way the criteria established by [Regulation on establishment of a framework to facilitate sustainable investment] for determining whether an economic activity is environmentally sustainable and coherently with the guidance developed for other programmes of the Union. In line with the principle of proportionality such guidance should include adequate provisions to avoid undue administrative burden and projects below a certain size as defined in the guidance should be excluded from the sustainability proofing.

(13)  Low infrastructure investment rates in the Union during the financial crisis undermined the Union's ability to boost sustainable growth, competitiveness and convergence. Sizeable investments in the European infrastructure, in particular with regard to interconnection and energy efficiency and to creating a Single European Transport Area, are fundamental to meet the Union's sustainability targets, including the Union’s commitments towards the SDGs, and the 2030 energy and climate targets. Accordingly, support from the InvestEU Fund should target investments into transport, energy, including energy efficiency and renewable energy, environmental, climate action, maritime and digital infrastructure, supporting, for example, development and deployment of Intelligent Transport Systems (ITS). The InvestEU Programme should prioritise areas that are under-invested, and in which additional investment is required, including sustainable mobility energy efficiency, and actions that contribute to the achievement of the 2030 and long-term climate and energy targets. To maximise the impact and the value added of Union financing support, it is appropriate to promote a streamlined investment process enabling visibility of the project pipeline and maximising synergies across relevant Union programmes in areas such as transport, energy and digitisation. Bearing in mind security threats, investment projects receiving Union support should take into account principles for the protection of citizens in public spaces. This should be complementary to the efforts made by other Union funds such as the European Regional Development Fund providing support for security components of investments in public spaces, transport, energy and other critical infrastructure.

(13a)  The InvestEU Programme should contribute, where appropriate, to the objectives of the [revised Renewables Directive] and the [Governance Regulation], as well as promote energy efficiency in investment decisions. It should also contribute to the long-term building renovation strategy that Member States are required to establish under the [Energy Performance of Building Directive]. The Programme should strengthen the digital single market, and contribute to decreasing the digital divide while increasing coverage and connectivity across the Union.

(13 b)  Ensuring the safety of road users is a huge challenge in the development of the transport sector, and the action being taken and investments being made are only helping to reduce the number of people dying or sustaining serious injuries on the roads to a limited extent. The InvestEU Programme should help to boost efforts to design and apply technologies that help to improve the safety of vehicles and road infrastructure.

(13 c)  Genuine multimodality is an opportunity to create an efficient and environmentally friendly transport network that uses the maximum potential of all means of transport and generates synergy between them. The InvestEU Programme could become an important tool for supporting investment in multimodal transport hubs, which - in spite of their significant economic potential and business case - carry a significant risk for private investors.

(14)  Whereas the level of overall investment in the Union is increasing, investment in higher-risk activities such as research and innovation is still inadequate. Given the public funding of research and innovation activities drives productivity growth and is crucial to boost private research and innovation activities, the resulting underinvestment in research and innovation is damaging to the industrial and economic competitiveness of the Union and the quality of life of its citizens. The InvestEU Fund should provide the appropriate financial products to cover different stages in the innovation cycle and a wide range of stakeholders, in particular to allow the upscaling of and deployment of solutions at a commercial scale in the Union, in order to make such solutions competitive on world markets, and to promote Union excellence in sustainable technologies at a global level. In order to address the need to support investment in higher-risk activities such as research and innovation, it is essential that Horizon Europe, in particular the European Innovation Council (EIC), works in synergy with the financial products to be deployed under the InvestEU Programme. Additionally, innovative SMEs and start-ups face difficulties in access to finance, especially those focusing on intangible assets, hence the need for the EIC to work in close complementarity with the dedicated financial products under the InvestEU Programme to ensure a continuity of support for such SMEs. In that regard, the experience gained from the financial instruments deployed under Horizon 2020 such as InnovFin and the loan guarantee for SMEs under COSME should serve as a strong basis to deliver this targeted support.

(14 a)  Tourism is an important sector of the Union economy and the InvestEU Programme should contribute to strengthening its long-term competitiveness by supporting actions aimed at a shift towards sustainable, innovative and digital tourism.

(15)  A significant effort is urgently needed to invest in and boost the digital transformation and to distribute the benefits of it to all Union citizens and businesses, in urban and rural areas. The strong policy framework of the Digital Single Market Strategy should now be matched by investment of a similar ambition, including in artificial intelligence in line with the Digital Europe Programme, particularly with regard to ethics, machine learning, internet of things, biotechnology and Fintech, which can increase efficiencies in mobilising capital for entrepreneurial ventures.

(16)  ▌SMEs represent over 99 % of businesses in the Union and their economic value is significant and crucial ▌. However, they face challenges when accessing finance because of their perceived high risk and lack of sufficient collateral. Additional challenges arise from the need for SMEs and social economy enterprises to stay competitive by engaging in digitisation, internationalisation, transformation in a logic of circular economy, innovation activities and skilling up their workforce. Moreover, compared to larger enterprises, they have access to a more limited set of financing sources: they typically do not issue bonds, have only limited access to stock exchanges or large institutional investors. The lack of access to capital for SMEs is also intensified by the comparative weakness of the private equity and venture capital industry in the Union. The challenge in accessing finance is even greater for those SMEs whose activities focus on intangible assets. SMEs in the Union rely heavily on banks and debt financing in the form of bank overdrafts, bank loans or leasing. Supporting SMEs that face the above challenges by simplifying their access to finance and providing more diversified sources of funding is necessary for increasing the ability of SMEs to finance their creation, growth, innovation and sustainable development, ensure their competitiveness, withstand economic downturns, and for making the economy and the financial system more resilient during economic downturn or shocks and capable of creating job and social well-being. This is also complementary to the initiatives already undertaken in the context of the Capital Markets Union. Programmes such as COSME have been important for SMEs in that they have facilitated access to finance in all phases of the lifecycle of SMEs, and this was added to by EFSI for which there was a quick SME uptake. The InvestEU Fund should therefore build on those successes and provide working capital and investment throughout the life cycle of a company, financing for leasing transactions and an opportunity to focus on specific, more targeted financial products.

(16a)  Undertakings providing services of general interest play an essential and strategic role in key sectors with large network industries (energy, water, waste, environment, postal services, transport and telecommunications), and in health, education and social services. The Union, by supporting these undertakings, safeguards the wellbeing of its citizens and democratic choices, inter alia concerning the quality of services.

(17)  As set out in the reflection paper on the social dimension of Europe(10) and the European Pillar of Social Rights(11) and the Union framework for the UN Convention on the Rights of Persons with disabilities, building a more inclusive and fairer Union is a key priority for the Union to tackle inequality and foster social inclusion policies in Europe. Inequality of opportunities affects in particular access to education, training, culture, employment, health and social services. Investment in the social, skills and human capital-related economy, as well as in the integration of vulnerable populations in the society, can enhance economic opportunities, especially if coordinated at Union level. The InvestEU Fund should be used to support investment in education and training, including the re-skilling and upskilling of workers, inter alia in regions depending on a carbon intensive economy and affected by the structural transition to a low-carbon economy, help increase employment, in particular among the unskilled and long-term unemployed, and improve the situation with regard to gender equality, equal opportunities, intergenerational solidarity, the health and social services sector, social housing, homelessness, digital inclusiveness, community development, the role and place of young people in society as well as vulnerable people, including third country nationals. The InvestEU Programme should also contribute to the support of European culture and creativity. To counter the profound transformations of societies in the Union and of the labour market in the coming decade, it is necessary to invest in human capital, social infrastructure, sustainable and social finance, microfinance, social enterprise finance and new social economy business models, including social impact investment and social outcomes contracting. The InvestEU Programme should strengthen nascent social market eco-system, increasing the supply of and access to finance to micro- and social enterprises and social solidarity institutions, to meet the demand of those who need it the most. The report of the High-Level Task-Force on Investing in Social Infrastructure in Europe(12) has identified a total investment gap of at least EUR 1,5 trillion for the period between 2018 and 2030 in social infrastructure and services, including for education, training, health and housing, which call for support, including at the Union level. Therefore, the collective power of public, commercial and philanthropic capital, as well as support from alternative types of financial providers such as ethical, social and sustainable actors, and from foundations, should be harnessed to support the social market value chain development and a more resilient Union.

(18)  The InvestEU Fund should operate under four policy windows, mirroring the key Union policy priorities, namely sustainable infrastructure; research, innovation and digitisation: SMEs; and social investment and skills.

(19)  Each policy window should be composed of two compartments, that is to say an EU compartment and a Member State compartment. The EU compartment should address Union-wide or Member State specific market failures or sub-optimal investment situations, including those relating to Union policy objectives. The Member State compartment should address market failures or suboptimal investment situations in one or several Member States. In addition, it should be possible for Member States to contribute to the Member State compartment in the form of guarantees or cash. The EU and Member State compartments should be used, where appropriate, in a complementary manner to support a financing or investment operation, including by combining support from both compartments. Regional authorities should be able to transfer into the InvestEU Fund via the Member States a share of the funds under shared management that they manage, which would be ring-fenced for InvestEU projects within the same region. Actions supported from the InvestEU Fund through either EU or Member State compartments should not duplicate or crowd out private financing or distort competition in the internal market.

(20)  The Member State compartment should be specifically designed to allow the use of funds under shared management to provision a guarantee issued by the Union. That possibility would increase the added value of the Union backed budgetary guarantee by providing it to a wider range of financial recipients and projects and diversifying the means of achieving the objectives of the funds under shared management, while ensuring a consistent risk management of the contingent liabilities by implementing the guarantee given by the Commission under indirect management. The Union should guarantee the financing and investment operations foreseen by the guarantee agreements concluded between the Commission and implementing partners under the Member State compartment, the Funds under shared management should provide the provisioning of the guarantee, following a provisioning rate determined by the Commission in agreement with the Member State based on the nature of the operations and the resulting expected losses, and the Member State and/or the implementing partners or private investors would assume losses above the expected losses by issuing a back-to-back guarantee in favour of the Union. Such arrangements should be concluded in a single contribution agreement with each Member State that voluntarily chooses such option. The contribution agreement should encompass the one or more specific guarantee agreements to be implemented within the Member State concerned. The setting out of the provisioning rate on a case by case basis requires a derogation from [Article 211(1)] of Regulation (EU, Euratom) No XXXX(13) (the 'Financial Regulation'). This design provides also a single set of rules for budgetary guarantees supported by funds managed centrally or by funds under shared management, which would facilitate their combination.

(21)  The InvestEU Fund should be open to contributions from third countries that are members of the European Free Trade Association, acceding countries, candidates and potential candidates, countries covered by the Neighbourhood policy and other countries, in accordance with the conditions laid down between the Union and those countries. This should allow continuing cooperating with the relevant countries, where appropriate, in particular in the fields of research and innovation as well as SMEs.

(22)  This Regulation lays down a financial envelope for other measures of the InvestEU Programme than the provisioning of the EU guarantee, which is to constitute the prime reference amount, within the meaning of [reference to be updated as appropriate according to the new inter-institutional agreement: point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management(14)], for the European Parliament and the Council during the annual budgetary procedure.

(23)  The EU guarantee of EUR 40 817 500 000 (current prices) at Union level is expected to mobilise more than EUR 698 194 079 000 of additional investment across the Union and should be▌ allocated between the policy windows.

(23a)  Member States may contribute to the Member State compartment in the form of guarantees or cash. Without prejudice to the prerogatives of the Council in the implementation of the Stability and Growth Pact (SGP), one-off contributions by Member States in the form of guarantees or cash into the Member State compartment, or contributions either by a Member State or by national promotional banks classified in the general government sector or acting on behalf of a Member State into investment platforms, should in principle qualify as one-off measures within the meaning of Article 5 of Council Regulation (EC) No 1466/97(15)1a and Article 3 of Council Regulation (EC) No 1467/97(16)1b.

(24)  The EU guarantee underpinning the InvestEU Fund should be implemented indirectly by the Commission relying on implementing partners with outreach to final intermediaries, where applicable, and final recipients. The selection of the implementing partners should be transparent and free from any conflict of interest. A guarantee agreement allocating guarantee capacity from the InvestEU Fund should be concluded by the Commission with each implementing partner, to support its financing and investment operations meeting the InvestEU Fund objectives and eligibility criteria. The risk management of the guarantee should not hamper direct access to the guarantee by the implementing partners. Once the guarantee is granted under the EU compartment to implementing partners, they should be fully responsible for the whole investment process and the due diligence of the financing or investment operations. The InvestEU Fund should support projects that typically have a higher risk profile than the projects supported by normal operations of implementing partners and that could not have been carried out during the period in which the EU guarantee can be used, or not to the same extent, by implementing partners without InvestEU support.

(24a)  The InvestEU Fund should have an appropriate governance structure the function of which should be commensurate with its sole purpose of ensuring the appropriate use of the EU guarantee, in line with ensuring the political independence of investment decisions and, where applicable, the principle of the market-driven nature of the InvestEU Fund. That governance structure should be composed of a Steering Board, an Advisory Board and a fully independent Investment Committee. The Commission should assess the compatibility of investment and financing operations submitted by the implementing partners with Union law and policies whereas the decisions on financing and investment operations should ultimately be taken by an implementing partner. Gender balance should be ensured in the overall composition of the governance structure.

(25)  An Advisory Board consisting of representatives of the Commission, of the European Investment Bank (EIB) Group, of the implementing partners and of representatives of Member States, of one expert for each of the four policy windows appointed by the European Economic and Social Committee and of an expert appointed by the Committee of the Regions should be established in order to exchange information and for exchanges on the take-up of the financial products deployed under the InvestEU Fund and to discuss on evolving needs and new products, including specific territorial market gaps.

(26)  The Steering Board should set the strategic orientations of the InvestEU Fund and the rules necessary for its functioning, and should set out the rules applicable to the operations with investment platforms. The Steering Board should be comprised of six members, as follows: three members appointed by the Commission, one member appointed by the European Investment Bank, one member appointed by the Advisory Board from amongst the representatives of the implementing partners, who should not be a representative of the EIB Group, and one expert appointed by the European Parliament, who should not seek or take instructions from Union institutions, bodies, offices or agencies, from any Member State government or from any other public or private body and should act in full independence. The expert should perform his or her duties impartially and in the interests of the InvestEU Fund. Detailed minutes of the Steering Board meetings should be published as soon as they have been approved by the Steering Board and the European Parliament should be immediately notified of their publication.

(27)  Before a project is submitted to the Investment Committee, a secretariat hosted by the Commission and answerable to the chairperson of the Investment Committee should check the completeness of the documentation provided by the implementing partners and assist the Commission in assessing the compatibility of investment and financing operations with Union law and policies. The secretariat should also assist the Steering Board.

(28)  An Investment Committee composed of independent experts should conclude on the granting of the support from the EU guarantee to financing and investment operations fulfilling the eligibility criteria, thereby providing external expertise in investment assessments in relation to projects. The Investment Committee should have different configurations to best cover different policy areas and sectors.

(29)  In selecting implementing partners for the deployment of the InvestEU Fund, the Commission should consider the counterpart's capacity to fulfil the objectives of the InvestEU Fund and to contribute to it, in order to ensure adequate geographical coverage and diversification, to crowd-in private investors and to provide sufficient risk diversification as well as new solutions to address market failures and sub-optimal investment situations, and ensure economic, social and territorial cohesion. Given its role under the Treaties, its capacity to operate in all Member States and the existing experience under the current financial instruments and the EFSI, the EIB Group should remain a privileged implementing partner under the InvestEU Fund's EU compartment. In addition to the EIB Group, national promotional banks or institutions should be able to offer a complementary financial product range given that their experience and capabilities at regional level could be beneficial for the maximisation of the impact of public funds on the whole territory of the Union, and to ensure a fair geographical balance of projects, contributing to reducing regional disparities. The rules on the participation of national promotional banks or institutions in the InvestEU Programme should take into account the principle of proportionality with regard to complexity, size and risk of the implementing partners concerned to ensure a level playing field for smaller and younger promotional banks or institutions. Moreover, it should be possible to have other international financial institutions as implementing partners, in particular when they present a comparative advantage in terms of specific expertise and experience in certain Member States. It should also be possible for other entities fulfilling the criteria laid down in the Financial Regulation to act as implementing partners.

(29a)  Investment platforms should, where appropriate, bring together co-investors, public authorities, experts, education, training and research institutions, the relevant social partners and representatives of the civil society and other relevant actors at Union, national and regional levels.

(30)  In order to ensure that interventions under the EU compartment of the InvestEU Fund focus on market failures and sub-optimal investment situations , but, at the same time, satisfy the objectives of best possible geographic outreach, the EU guarantee should be allocated to implementing partners, which alone or together with other implementing partners, can cover one or more Member States. In the latter case, contractual responsibility of implementing partners remains limited by their respective national mandates. With a view to promoting improved geographic diversification, dedicated regional investment platforms focused on interested groups of Member States may be established, combining the efforts and expertise of pillar-assessed financial institutions with national promotional banks with limited experience in the use of financial instruments. Such structures should be encouraged, including with available support from the InvestEU Advisory Hub. At least 75 % of the EU guarantee under the EU compartment should be allocated to the EIB Group. Amounts exceeding 75 % of the EU guarantee could be made available to the EIB Group in the event that national promotional banks or institutions cannot fully use the remaining share of the guarantee. Likewise, amounts exceeding 25 % of the EU guarantee could be made available to other implementing partners in the event that the EIB Group cannot fully use its share of the guarantee. National promotional banks or institutions could fully benefit from the EU guarantee also in case they decide to access to it through the EIB Group or the European Investment Fund.

(31)  The EU guarantee under the Member State compartment should be allocated to any implementing partner eligible according to [Article 62(1)(c)] of the [Financial Regulation], including national or regional promotional banks or institutions, the EIB, the European Investment Fund and other multilateral development banks. When selecting implementing partners under the Member State compartment, the Commission should take into account the proposals made by each Member State. In accordance with [Article 154] of the [Financial Regulation], the Commission must carry out an assessment of the rules and procedures of the implementing partner to ascertain that they provide a level of protection of the financial interest of the Union equivalent to the one provided by the Commission.

(32)  Financing and investment operations should ultimately be decided by an implementing partner in its own name, implemented in accordance with its internal rules and procedures and accounted for in its own financial statements. Therefore, the Commission should exclusively account for any financial liability arising from the EU guarantee and disclose the maximum guarantee amount, including all relevant information on the guarantee provided.

(33)  The InvestEU Fund should, where appropriate, allow for a smooth and efficient blending of grants or financial instruments, or both, funded by the Union budget or by other funds, such as the EU Emissions Trading System (ETS) Innovation Fund with that guarantee in situations where this is necessary to best underpin investments to address particular market failures or sub-optimal investment situations.

(34)  Projects submitted by implementing partners for support under the InvestEU Programme, which include blending with support from another Union programmes, should as a whole also be consistent with the objectives and eligibility criteria contained in the rules of the relevant Union programmes. The use of the EU guarantee should be decided under the rules of the InvestEU Programme.

(35)  The InvestEU Advisory Hub should support the development of a robust pipeline of investment projects in each policy window. The Commission should sign agreements with the EIB Group and other implementing partners in order to designate them as Advisory Hub partners.  The Commission, the EIB Group and the other implementing partners should cooperate closely with a view to ensuring efficiency, synergies and effective geographic coverage of support across the Union, taking into account the expertise and local capacity of local implementing partners, as well as existing structures, such as the European Investment Advisory Hub. In addition, a cross-sectoral component under the InvestEU Programme should be foreseen to ensure a single-entry point and cross-policy project development assistance for centrally managed Union programmes.

(36)  In order to ensure a wide geographic outreach of the advisory services across the Union and to successfully leverage local knowledge about the InvestEU Fund, a local presence of the InvestEU Advisory Hub should be ensured, where needed, complementing existing support schemes and the presence of local partners, with a view to provide tangible, proactive, tailor-made assistance on the ground. In order to facilitate the provision of advisory support at local level and to ensure efficiency, synergies and effective geographic support coverage across the Union, the InvestEU Advisory Hub should cooperate with national promotional banks or institutions, and the managing authorities of the European Structural and Investment Funds, as well as benefit from and make use of their expertise. In Member States where national promotional banks or institutions do not exist, the InvestEU Advisory Hub should provide, where appropriate, and at the request of the Member State concerned, proactive advisory support on the establishment of such a bank or institution.

(36a)  The InvestEU Advisory Hub should provide advisory support to small projects and projects for start-ups, especially when start-ups seek to protect their research and innovation investments by obtaining intellectual property (IP) titles, such as patents.

(37)  In the context of the InvestEU Fund, there is a need to provide project development and capacity building support to develop the organisational capacities and market making activities needed to originate quality projects. Moreover, the aim is to create the conditions for the expansion of the potential number of eligible recipients in nascent market and local segments, in particular where the small size of individual projects raises considerably the transaction cost at the project level, such as for the social finance ecosystem. The capacity building support should therefore be complementary and additional to actions undertaken under other Union programmes that cover a specific policy area. An effort should also be made to support the capacity building of potential project promoters, in particular local service provider organisations and authorities.

(38)  The InvestEU Portal should be established to provide for an easily accessible and user-friendly project database to promote visibility of investment projects searching for financing with enhanced focus on the provision of a possible pipeline of investment projects, compatible with Union law and policies, to the implementing partners.

(39)  Pursuant to paragraphs 22 and 23 of the Inter-institutional agreement for Better Law-Making of 13 April 2016(17), there is a need to evaluate the InvestEU Programme on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. These requirements, where appropriate, can include measurable indicators, as a basis for evaluating the effects of the InvestEU Programme on the ground.

(40)  A solid monitoring framework, based on output, outcome and impact indicators should be implemented to track progress towards the Union's objectives. In order to ensure accountability to European citizens, the Commission and the Steering Board should report annually to the European Parliament and the Council on the progress, impact and operations of the InvestEU Programme.

(41)  Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union apply to this Regulation. These rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective EU funding.

(42)  Regulation (EU, Euratom) No [the new FR] applies to InvestEU Programme. It lays down rules on the implementation of the Union budget, including the rules on budgetary guarantees.

(43)  In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council(18), Council Regulation (Euratom, EC) No 2988/95(19), Council Regulation (Euratom, EC) No 2185/96(20) and Council Regulation (EU) 2017/1939(21), the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96 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 fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council(22). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(44)  Third countries which are members of the European Economic Area (EEA) may participate in Union programmes in the framework of the cooperation established under the EEA agreement, which provides for the implementation of the programmes by a decision under that agreement. Third countries may also participate on the basis of other legal instruments. A specific provision should be introduced in this Regulation to exclude off-shore companies and companies based in “non-cooperating” countries, and to grant the necessary rights for and access to the authorising officer responsible, the European Anti-Fraud Office (OLAF) as well as the European Court of Auditors to comprehensively exert their respective competences and guarantee the right of the Union to ensure financial management and to protect its financial interests.

(45)  Pursuant to [reference to be updated as appropriate according to a new decision on OCTs: Article 88 of Council Decision 2013/755/EU], persons and entities established in overseas countries and territories (OCTs) are eligible for funding subject to the rules and objectives of InvestEU Programme and possible arrangements applicable to the Member State to which the relevant OCT is linked.

(46)  In order to supplement the non-essential elements of this Regulation with investment guidelines, which should be developed by the Commission in close cooperation with the implementing partners after conducting consultations, and with which financing and investment operations should comply, to facilitate a prompt and flexible adaptation of the performance indicators and to adjust of the provisioning rate, the power to adopt acts in accordance with Article 290 of the TFEU should be delegated to the Commission in respect of drawing-up the investment guidelines for the financing and investment operations under different policy windows, the amendment of Annex III to this Regulation to review or complement the indicators and the adjustment of the provisioning rate. In line with the principle of proportionality, such investment guidelines should include adequate provisions to avoid undue administrative burden. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(47)  The InvestEU Programme should address Union-wide and/or Member State specific market failures and sub-optimal investment situations and provide for Union-wide market testing of innovative financial products, and systems to spread them, for new or complex market failures. Therefore, action at Union level is warranted,

HAVE ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1

Subject matter

This Regulation establishes the InvestEU Fund providing for an EU guarantee for financing and investment operations carried out by the implementing partners in support of the Union’s internal policies.

This Regulation also establishes an advisory support mechanism to support the development of investable and sustainable projects and access to financing and to provide related capacity building (‘InvestEU Advisory Hub’). It also establishes a database granting visibility to projects for which project promoters seek financing and which provides investors with information about investment opportunities (‘InvestEU Portal’).

It lays down the objectives of the InvestEU Programme, the budget and the amount of the EU guarantee for the period 2021 to 2027, the forms of Union funding and the rules for providing such funding.

Article 2

Definitions

For the purposes of this Regulation, the following definitions apply:

(-1a)  ‘additionality’ means additionality as defined in Article 7a of this Regulation and as referred to in Article 209(2)(b) of the Financial Regulation;

(-1b)  ‘Advisory Hub partner’ means the eligible counterpart with whom the Commission signs an agreement to implement a service provided by the InvestEU Advisory Hub;

(1)  'blending operations' means operations supported by the Union budget combining non-repayable forms of support or repayable support or both from the Union budget with repayable forms of support from development or other public finance institutions, as well as from commercial finance institutions and investors; for the purposes of this definition, Union programmes financed from sources other than the Union budget, such as the EU Emissions Trading System (ETS) Innovation Fund, can be assimilated to Union programmes financed by the Union budget;

(1a)  'contribution agreement' means the legal instrument whereby the Commission and the Member States specify the conditions of the EU guarantee under the Member State compartment, specified in Article 9;

(1b)  'EIB Group' means the European Investment Bank and its subsidiaries;

(2)  'EU guarantee' means an overall guarantee provided by the Union budget under which the budgetary guarantees in accordance with [Article 219(1) of the [Financial Regulation] take effect through the signature of individual guarantee agreements with implementing partners;

(2a)  ‘financial contribution’ means a contribution from an implementing partner in the form of own risk taking capacity and/or financial support to an operation covered by this Regulation;

(3)  'financial product' means a financial mechanism or arrangement agreed between the Commission and the implementing partner under the terms of which the implementing partner provides direct or intermediated financing to final recipients in in any of the forms referred to in Article 13;

(4)  'financing and/or investment operations' means operations to provide finance directly or indirectly to final recipients in the form of financial products, carried out by an implementing partner in its own name, provided by it in accordance with its internal rules and accounted for in its own financial statements;

(5)  'Funds under shared management' means funds that foresee the possibility of allocating an amount thereof to the provisioning of a budgetary guarantee under the Member State compartment of the InvestEU Fund, namely the European Regional Development Fund (ERDF), the European Social Fund+ (ESF+), the Cohesion Fund, the European Maritime and Fisheries Fund (EMFF) and the European Agriculture Fund for Rural Development (EAFRD);

(6)  'guarantee agreement' means the legal instrument whereby the Commission and an implementing partner specify the conditions for proposing financing or investment operations to be granted the benefit of the EU guarantee, for providing the budgetary guarantee for those operations and for implementing them in accordance with the provisions of this Regulation;

(7)  'implementing partner' means the eligible counterpart such as a financial institution or other intermediary with whom the Commission signs a guarantee agreement▌;

(8)  'InvestEU Advisory Hub' means the technical assistance defined in Article 20;

(9)  'InvestEU Portal' means the database defined in Article 21;

(10)  'InvestEU Programme' means the InvestEU Fund, the InvestEU Advisory Hub, the InvestEU Portal and blending operations, collectively;

(10a)  ‘investment guidelines’ means the set of criteria, based on the principles established by this Regulation with regard to the general objectives, eligibility criteria and eligible instruments, used by the Investment Committee to decide in a transparent and independent manner on the use of the EU guarantee;

(10b)  ‘investment platforms’ means special purpose vehicles, managed accounts, contract-based co-financing or risk-sharing arrangements or arrangements established by any other means by which entities channel a financial contribution in order to finance a number of investment projects, and which may include:

(a) national or sub-national platforms that group together several investment projects on the territory of a given Member State;

(b) multi-country or regional platforms that group together partners from several Member States or third countries interested in projects in a given geographic area;

(c) thematic platforms that group together investment projects in a given sector.

(11)  'microfinance' means microfinance as defined in Regulation [[ESF+] number];

(12)  'midcap companies' means entities employing up to 3 000 employees that are not SMEs or small midcap companies;

(13)  'national promotional banks or institutions' (‘NPBI’) means legal entities carrying out financial activities on a professional basis which are given mandate by a Member State or a Member State's entity at central, regional or local level, to carry out development or promotional activities;

(14)  'small and medium-sized enterprises (SMEs)' means micro, small and mediumsized enterprises as defined in the Annex to Commission Recommendation 2003/361/EC(23);

(15)  'small midcap companies' means entities employing up to 499 employees that are not SMEs;

(16)  'social enterprise' means a social enterprise as defined in Regulation [[ESF+] number];

(16a)  ‘sustainable finance’ means the process of taking due account of environmental and social considerations in investment decision-making, leading to increased investments in longer-term and sustainable activities;

(17)  'third country' means a country that is not a member of the Union.

Article 3

Objectives of the InvestEU Programme

1.  The general objective of the InvestEU Programme is to support the policy objectives of the Union by means of financing and investment operations contributing to:

(a)  the competitiveness of the Union, including research, innovation and digitisation;

(aa)  an increase in the Union employment rate and the creation of high-quality jobs in the Union;

(b)  the growth of the Union economy and its sustainability, enabling the Union to achieve the SDGs and the objectives of the Paris Climate Agreement;

(c)  the social innovativeness, resilience and inclusiveness of the Union;

(ca)  the promotion of scientific and technological advance, of culture, education and training;

(cb)  economic, territorial and social cohesion;

(d)  the integration of the Union capital markets and the strengthening of the Single Market, including solutions addressing the fragmentation of the Union capital markets, diversifying sources of financing for Union enterprises and promoting sustainable finance.

2.  The InvestEU Programme has the following specific objectives:

(a)  to support financing and investment operations in sustainable infrastructure in the areas referred to in point (a) of Article 7(1);

(b)  to support financing and investment operations in research, innovation and digitisation in all policy windows, including support for the upscaling of innovative companies and the bringing of technologies to market;

(c)  to increase and simplify the access to and the availability of finance for, and to enhance the global competitiveness of innovative start-ups, SMEs including micro-enterprises and, in duly justified cases, for small mid-cap companies;

(d)  to increase the access to and the availability of microfinance and finance for SMEs, social enterprises, cultural and creative and education sectors, support financing and investment operations related to social investment, competences and skills and develop and consolidate social investment markets, in the areas referred to in point (d) of Article 7(1).

Article 4

Budget and amount of the EU guarantee

1.  The EU guarantee for the purposes of the EU compartment referred to in point (a) of Article 8(1) shall be EUR 40 817 500 000 (current prices). It shall be provisioned at the rate of 40 %.

An additional amount of the EU guarantee may be provided for the purposes of the Member State compartment referred to in point (b) of Article 8(1), subject to the allocation by Member States, pursuant to [Article 10(1)] of Regulation [[CPR] number](24) and Article [75(1)] of Regulation [[CAP plan] number](25), of the corresponding amounts.

In addition to the contribution referred to in the second subparagraph, Member States may contribute to the Member State compartment in the form of guarantees or cash.

The contributions from third countries referred to in Article 5 shall also increase the EU guarantee referred to in the first subparagraph, providing a provisioning in cash in full in accordance with [Article 218(2] of the [Financial Regulation].

2.  The ▌distribution of the amount referred to in the first subparagraph of paragraph 1 of this Article is set out in Annex I. The Commission is empowered to adopt delegated acts in accordance with Article 26 in order to supplement this Regulation by modifying the amounts referred to in ▌Annex I, where appropriate, by up to 15% for each window.

3.  The financial envelope for the implementation of the measures provided in Chapters V and VI shall be EUR 525 000 000 (current prices).

4.  The amount referred to in paragraph 3 may also be used for technical and administrative assistance for the implementation of the InvestEU Programme, such as preparatory, monitoring, control, audit and evaluation activities including corporate information technology systems.

Article 5

Third countries associated to the InvestEU Fund

The EU compartment of the InvestEU Fund referred to in point (a) of Article 8(1) and each of the policy windows referred to in Article 7(1) may receive contributions from the following third countries in order to participate in certain financial products pursuant to [Article 218(2)] of the [Financial Regulation]:

(a)  European Free Trade Association (EFTA) members which are members of the European Economic Area (EEA), in accordance with the conditions laid down in the EEA agreement;

(b)  acceding countries, candidate countries and potential candidates, in accordance with the general principles and general terms and conditions for their participation in Union programmes established in the respective framework agreements and Association Council decisions, or similar agreements, and in accordance with the specific conditions laid down in agreements between the Union and them;

(c)  countries covered by the European Neighbourhood Policy, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective framework agreements and association council decisions, or similar agreements, and in accordance with the specific conditions laid down in agreements between the Union and those countries;

(d)  third countries, in accordance with the conditions laid down in a specific agreement covering the participation of the third country to any Union programme, provided that the agreement:

(i)  ensures a fair balance as regards the contributions and benefits of the third country participating in the Union programmes;

(ii)  lays down the conditions of participation in the programmes, including the calculation of financial contributions to individual programmes and their administrative costs. These contributions shall constitute assigned revenues in accordance with Article [21(5)] of the [Financial Regulation];

(iii)  does not confer to the third country a decisional power on the programme;

(iv)  guarantees the rights of the Union to ensure sound financial management and to protect its financial interests.

Article 6

Implementation and forms of Union funding

1.  The EU guarantee shall be implemented in indirect management with bodies referred to in [Article 62(1)(c)(ii) to (vii)] of the [Financial Regulation]. Other forms of EU funding under this Regulation shall be implemented in direct or indirect management in accordance with the [Financial Regulation], including grants implemented in accordance with its [Title VIII].

2.  Financing and investment operations covered by the EU guarantee which form part of the blending operation combining support under this Regulation with support provided under one or more other Union programmes or by the EU Emissions Trading System (ETS) Innovation Fund shall:

(a)   be consistent with the policy objectives and comply with the eligibility criteria set out in the rule on the Union programme under which the support is decided;

(b)  comply with this Regulation.

2a.  Blending operations combining support under this Regulation shall be as seamless as possible.

3.  Blending operations including a financial instrument fully financed by other Union programmes or by the ETS Innovation Fund without use of the EU guarantee under this Regulation shall comply with the policy objectives and eligibility criteria set out in the rules of the Union programme under which the support is provided.

4.  In accordance with Article 6(2), the non-repayable forms of support and/or financial instruments from the Union budget forming part of the blending operation referred to in paragraphs 2 and 3 shall be decided under the rules of the relevant Union programme and shall be implemented within the blending operation in accordance with this Regulation and with [Title X] of the [Financial Regulation].

  The reporting shall also include the elements on the consistency with the policy objectives and eligibility criteria set out in the rules of the Union programme under which support is decided as well on the compliance with this Regulation.

CHAPTER II

InvestEU Fund

Article 7

Policy windows

1.  The InvestEU Fund shall operate through the following four policy windows that shall address market failures and/or sub-optimal investment situations within their specific scope:

(a)  sustainable infrastructure policy window: comprises sustainable investment in the areas of transport, including multimodal transport, road safety, renovation and maintenance of rail and road infrastructure, tourism, energy, in particular the increased deployment of renewable energy, energy efficiency in line with the 2030 and 2050 energy frameworks, buildings renovation projects focused on energy savings and the integration of buildings into a connected energy, storage, digital and transport system, improving interconnection levels, digital connectivity and access including in rural areas, supply and processing of raw materials, space, oceans, inland water, waste avoidance and the circular economy, nature and other environment infrastructure, equipment, mobile assets and deployment of innovative technologies that contribute to the environmental or social sustainability objectives of the Union, or to both, and meet the environmental or social sustainability standards of the Union;

(b)  research, innovation and digitisation policy window: comprises research, product development and innovation activities, transfer of technologies and research results to the market, supporting market enablers and cooperation between enterprises, demonstration and deployment of innovative solutions and support to scaling up of innovative companies including start-ups and SMEs as well as digitisation of Union industry, based on the experiences gained, in particular with the InnovFin;

(c)  SMEs policy window: simplified access to and availability of finance for start-ups, SMEs, including innovative ones, and, in duly justified cases, for small mid-cap companies, in particular to improve global competitiveness, innovation, digitisation and sustainability;

(d)  social investment and skills policy window: comprises ethical and sustainable finance, microfinance, workers buyouts, social enterprise finance and social economy and measures to promote gender equality and active participation of women and vulnerable groups; skills, education, training and related services; social infrastructure (including social and student housing); social innovation; health and long-term care; inclusion and accessibility; cultural activities with a social goal; cultural and creative sectors, including with intercultural dialogue and social cohesion goals; integration of vulnerable people, including third country nationals.

2.  Where a financing or investment operation proposed to the Investment Committee referred to in Article 19 falls under more than one policy window, it shall be attributed to the window under which its main objective or the main objective of most of its sub-projects fall, unless the investment guidelines define otherwise.

3.  Financing and investment operations under all the ▌policy windows referred to in ▌paragraph 1 shall, where applicable, be subject to climate, environmental and social sustainability proofing with a view to minimise detrimental impacts and maximise benefits on climate, environment and social dimension. For that purpose, promoters requesting financing shall provide adequate information based on guidance to be developed by the Commission in the form of a delegated act and taking into account the criteria established by Regulation (EU) No .../... on the establishment of a framework to facilitate sustainable investment (COM(2018)353) to determine whether an economic activity is environmentally sustainable. Where appropriate projects below a certain size defined in the guidance may be exempted from the proofing.

  The Commission guidance shall allow to:

a)  as regards adaptation, ensure the resilience to the potential adverse impacts of climate change through a climate vulnerability and risk assessment, including relevant adaptation measures, and, as regards mitigation, integrate the cost of greenhouse gas emissions and the positive effects of climate mitigation measures in the cost-benefit analysis and ensure compliance with Union environmental objectives and standards;

b)  account for consolidated project impact in terms of the principal components of the natural capital relating to air, water, land and biodiversity;

ba)  estimate the impact on employment and good quality job creation;

c)   estimate the impact on the social inclusion of certain areas or populations.

4.  Implementing partners shall provide the information necessary to allow the tracking of investment that contributes to meeting the Union objectives on climate and environment, based on guidance to be provided by the Commission and assess where appropriate compliance of operations with Regulation (EU) .../... [on the establishment of a framework to facilitate sustainable investment].

4a.  The SMEs policy window shall offer support also to beneficiaries that were supported by the different EU guarantee facilities merged under InvestEU, in particular the Cultural and Creative Sectors Guarantee Facility from the Creative Europe Programme.

5.  Implementing partners shall target that:

(a)   at least 65 % of the investment under the sustainable infrastructure policy window significantly contribute to meeting the Union objectives on climate and environment , in line with the Paris Agreement;

(b)  in the area of transport, at least 10 % of investment under the sustainable infrastructure policy window contribute to meeting the EU objective of eliminating fatal road accidents and serious injuries by 2050 and to renovating rail and road bridges and tunnels for the sake of their safety;

(c)  at least 35% of the investment under the research, innovation and digitisation policy window contribute to Horizon Europe Objectives;

(d)  a significant share of the guarantee offered to SMEs and small mid-caps under the SME policy window support innovative SMEs.

The Commission together with implementing partners shall seek to ensure that the part of the budgetary guarantee used for the sustainable investment window is distributed aiming at a balance between the actions in the different areas.

6.  The Commission is empowered to adopt delegated acts in accordance with Article 26 to define the investment guidelines for each of the policy windows.

6a.  Where the Commission produces information on the interpretation of the investment guidelines, it shall make that information available to the implementing partners, the Investment Committee and the InvestEU Advisory Hub.

Article 7a

Additionality

For the purposes of this Regulation, ‘additionality’ means support by the InvestEU Fund for operations which address Union-wide and/or Member State specific market failures or sub-optimal investment situations and which could not have been carried out during the period in which the EU guarantee can be used, or not to the same extent, by implementing partners without InvestEU Fund support.

Article 8

Compartments

1.  The policy windows referred to in Article 7(1) shall each consist of two compartments addressing ▌market failures or sub-optimal investment situations as follows:

(a)  the EU compartment shall address any of the following situations:

(i)  market failures or sub-optimal investment situations related to Union policy priorities ▌;

(ii)  Union wide and/or Member State specific market failures or sub-optimal investment situations; or

(iii)  new or complex market failures or sub-optimal investment situations with a view to developing new financial solutions and market structures;

(b)  the Member State compartment shall address specific market failures or sub-optimal investment situations in one or several Member States to deliver objectives of the contributing Funds under shared management.

2.  The compartments referred to in paragraph 1 shall be used, where appropriate, in a complementary manner to support a financing or investment operation, including by combining support from both compartments.

Article 9

Specific provisions applicable to the Member State compartment

1.  Amounts allocated by a Member State under Article [10(1)] of Regulation [[CPR] number] or Article [75(1)] of Regulation [[CAP plan] number] shall be used for the provisioning of the part of the EU guarantee under the Member State compartment covering financing and investment operations in the Member State concerned.

1a.  Member States may also contribute to the Member State compartment in the form of guarantees or cash. Those contributions may only be called for payments of guarantee calls after the funding under the first subparagraph of Article 4(1).

2.  The establishment of that part of the EU guarantee under the Member State compartment shall be subject to the conclusion of a contribution agreement between the Member State and the Commission.

Two or more Member States may conclude a joint contribution agreement with the Commission.

By derogation from [Article 211(1)] of the [Financial Regulation], the provisioning rate of the EU guarantee under the Member State compartment shall be set at 40 % and maybe adjusted downwards or upwards in each contribution agreement to take account of the risks attached to the financial products intended to be used.

3.  The contribution agreement shall at least contain the following elements:

a)  the overall amount of the part of the EU guarantee under the Member State compartment pertaining to the Member State, its provisioning rate, the amount of the contribution from Funds under shared management, the constitution phase of the provisioning in accordance with an annual financial plan and the amount of the resulting contingent liability to be covered by a back-to-back guarantee provided by the Member State concerned and/or by the implementing partners or private investors;

b)  the strategy consisting of the financial products and their minimum leverage, the geographical coverage, the investment period and, where applicable, the categories of final recipients and of eligible intermediaries;

c)  ▌the implementing partner or partners selected in agreement with the Member State;

d)  the possible contribution from Funds under shared management to investment platforms and the InvestEU Advisory Hub;

e)  the annual reporting obligations towards the Member State, including reporting in accordance with the indicators referred to in the contribution agreement;

f)  provisions on the remuneration of the part of the EU guarantee under the Member State compartment;

g)  possible combination with resources under the EU compartment, including in a layered structure to achieve better risk coverage in accordance with Article 8(2).

Contributions from Funds under shared management may be used, at the discretion of Member States in agreement with the implementing partners, to guarantee any tranche of structured finance instruments.

4.  The contribution agreements shall be implemented by the Commission through guarantee agreements signed with implementing partners pursuant to Article 14.

Where, within nine months from the signature of the contribution agreement, no guarantee agreement has been concluded or the amount of a contribution agreement is not fully committed through one or more guarantee agreements, the contribution agreement shall be terminated in the first case or amended accordingly in the second case and the unused amount of provisioning re-used pursuant to [Article 10(5)] of Regulation [[CPR] number] and Article [75(5)] of Regulation [[CAP plan] number].

Where the guarantee agreement has not been duly implemented within a period specified in Article [10(6)] of Regulation [[CPR] number] or in Article [75(6)] of Regulation [[CAP plan] number], the contribution agreement shall be amended and the unused amount of provisioning re-used pursuant to [Article 10(6)] of the [[CPR] number] and Article [75(6)] of Regulation [[CAP plan]] number].

5.  The following rules shall apply to the provisioning for the part of the EU guarantee under the Member State compartment established by a contribution agreement:

(a)  after the constitution phase referred to in point (a) of paragraph 3 of this Article, any annual surplus of provisions, calculated by comparing the amount of provisions required by the provisioning rate and the actual provisions, shall be re-used pursuant to [Article 10(6)] of the [CPR] and to Article [75(6)] of the [[CAP plan] number];

(b)  by derogation from [Article 213(4)] of the [Financial Regulation], after the constitution phase referred to in point (a) of paragraph 3 of this Article, the provisioning shall not give rise during the availability of that part of the EU guarantee under the Member State compartment to annual replenishments;

(c)  the Commission shall immediately inform the Member State where, as a result of calls on that part of the EU guarantee under the Member State compartment, the level of provisions for that part of the EU guarantee falls below 20 % of the initial provisioning;

(d)   ▌

CHAPTER III

EU guarantee

Article 10

EU guarantee

1.  The EU guarantee under the InvestEU Fund shall be granted to the implementing partners in accordance with [Article 219(1)] of the [Financial Regulation] and managed in accordance with [Title X] of the [Financial Regulation]. The EU guarantee shall be irrevocable, unconditional and provided on first demand to eligible counterparts for the financing and investment operations covered by this Regulation and its pricing shall be exclusively linked to the characteristics and risk profile of the underlying operations, taking into due account the nature of the underlying operations and the fulfilment of the policy objectives targeted, including, if duly justified, the possible application of specific concessional terms and incentives as needed, in particular:

(a) in situations where stressed financial market conditions would prevent the realisation of a viable project;

(b) where necessary to facilitate the establishment of investment platforms or the funding of projects in sectors or areas experiencing a significant market failure and/or suboptimal investment situation.

In addition, the EU guarantee shall provide for:

(a) a robust mechanism for its prompt utilisation;

(b) a duration consistent with the final maturity of the last receivable from the final beneficiary;

(c) an adequate risk and guarantee portfolio monitoring;

(d) a reliable mechanism for the estimation of expected cash-flows in case it is availed of;

(e) adequate documentation regarding risk management decisions;

(f) adequate flexibility regarding the way the guarantee is used, allowing implementing partners to benefit directly from the guarantee when/if needed, in particular in the absence of an additional guarantee scheme;

(g) the fulfilment of all the additional requirements requested by the relevant regulatory supervisor, if any, for being considered as an effective full risk mitigation.

1a.  The EU guarantee under the EU compartment shall be allocated to implementing partners. At least 75 % of the EU guarantee under the EU compartment shall be allocated to the EIB Group. Amounts exceeding 75 % of the EU guarantee may be made available to the EIB Group in the event that national promotional banks or institutions cannot fully use the remaining share of the guarantee. Likewise, amounts exceeding 25 % of the EU guarantee may be made available to other implementing partners in the event that the EIB Group cannot fully use its share of the guarantee. National promotional banks or institutions may fully benefit from the EU guarantee also in case they decide to access to it through the EIB Group or the European Investment Fund.

2.  Support of the EU guarantee may be granted for financing and investment operations covered by this Regulation for an investment period ending on 31 December 2027. Contracts between the implementing partner and the final recipient or the financial intermediary or other entity referred to in Article 13(1)(a) shall be signed by 31 December 2028.

Article 11

Eligible financing and investment operations

1.  The InvestEU Fund shall only support public and private financing and investment operations that :

(a)  comply with the conditions set out in [points (a) to (e) of Article 209(2)] of [the Financial Regulation], and with the additionality requirement set out in ▌Article 7a of this Regulation, and, where appropriate, maximising private investment in accordance with [point (d) of Article 209(2)] of the [Financial Regulation];

(b)  contribute to, complement and are consistent with the Union policy objectives and fall under the scope of the areas eligible for financing and investment operations under the appropriate window in accordance with Annex II to this Regulation; and

(c)  are consistent with the investment guidelines.

2.  In addition to projects situated in the Union, the InvestEU Fund may support the following projects and operations through financing and investment operations:

(a)  ▌projects between entities located or established in one or more Member States and extending to one or more third countries, including acceding countries, candidate countries and potential candidates, countries falling within the scope of the European Neighbourhood Policy, the European Economic Area or the European Free Trade Association, or to an overseas country or territory as set out in Annex II to the TFEU, or to an associated third country, whether or not there is a partner in those third countries or overseas countries or territories;

(b)  financing and investment operations in countries referred to in Article 5 which have contributed to a specific financial product.

3.  The InvestEU Fund may support financing and investment operations providing finance to recipients which are legal entities established in any of the following countries:

(a)  a Member State or an overseas country or territory linked to it;

(b)  a third country or territory associated to the InvestEU Programme in accordance with Article 5;

(c)  a third country referred to in point (a) of paragraph 2, where applicable;

(d)  other countries where needed for financing a project in a country or territory referred to in points (a) to (c).

Article 12

Selection of implementing partners

1.  The Commission shall select, in accordance with [Article 154] of the [Financial Regulation], the implementing partners or a group of them, as referred to in the second subparagraph of this paragraph, from among eligible counterparts.

For the EU compartment, the eligible counterparts shall have expressed their interest and shall be able to cover financing and investment operations in one or more Member States or regions. The implementing partners may also cover together financing and investment operations in one or more Member States or regions by forming a group. The implementing partners, whose contractual responsibility is limited by their respective national mandates, may also address market failures or suboptimal investment situations with respective, locally adapted, comparable instruments.

On the basis of the degree of maturity of the project, the group of implementing partners may be formed at any moment and with different configurations, in order to efficiently meet market requirements.

For the Member State compartment, the Member State concerned may propose one or more eligible counterparts as implementing partners from among those that have expressed their interest pursuant to Article 9(3)(c).

Where the Member State concerned does not propose an implementing partner, the Commission shall proceed in accordance with the second subparagraph of this paragraph among those implementing partners that can cover financing and investment operations in the geographical areas concerned.

2.  When selecting implementing partners, the Commission shall ensure that the portfolio of financial products under the InvestEU Fund:

(a)  maximises the coverage of the objectives laid down in Article 3;

(b)  maximises the impact of the EU guarantee through the own resources committed by the implementing partner;

(c)  maximises, where appropriate, private investment;

(d)  achieves geographical diversification, and allows for the financing of smaller projects;

(e)  provides sufficient risk diversification;

(f)  promotes innovating financial and risk solutions to address market failures and sub-optimal investment situations;

(fa)  achieves additionality.

3.  When selecting the implementing partners, the Commission shall also take into account:

(a)  the possible cost and remuneration to the Union budget;

(b)  the capacity of the implementing partner to implement thoroughly the requirements of [Articles 155(2) and 155(3)] of the [Financial Regulation] related to tax avoidance, tax fraud, tax evasion, money laundering, terrorism financing and non-cooperative jurisdictions.

(ba)  the capacity of the implementing partner to evaluate the financing and investment operations according to international recognised social rating standards, with particular attention to social and environmental impact;

(bb)  the capacity of the implementing partner to give public evidence of, and to ensure transparency and public access to information concerning, each financing and investment operation;

(bc)  where relevant, the capacity of the implementing partner to manage financial instruments, taking account of its past experience with financial instruments and managing authorities as referred to in Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(26)1a.

4.  National promotional banks or institutions may be selected as implementing partners, subject to fulfilling the requirements laid down in this Article and in the second subparagraph of Article 14(1).

Article 13

Eligible types of financing

1.  The EU guarantee may be used towards risk coverage for the following types of financing provided by the implementing partners:

(a)  loans, guarantees, counter-guarantees, capital market instruments, any other form of funding or credit enhancement, including subordinated debt, or equity or quasi-equity participations, provided directly or indirectly through financial intermediaries, funds, investment platforms or other vehicles to be channelled to final recipients;

(b)  funding or guarantees by an implementing partner to another financial institution enabling the latter to undertake financing activities referred to in point (a).

In order to be covered by the EU guarantee, the financing referred to in points (a) and (b) of the first subparagraph of this paragraph shall be granted, acquired or issued for the benefit of financing or investment operations referred to in Article 11(1), where the financing by the implementing partner has been granted in accordance with a financing agreement or transaction signed or entered into by the implementing partner after the signature of the guarantee agreement between the Commission and the implementing partner and which has not expired or been cancelled.

2.  Financing and investment operations through funds or other intermediate structures shall be covered by the EU guarantee in accordance with provisions to be laid down in the investment guidelines even if such structure invests a minority of its invested amounts outside the Union and in the countries referred to Article 11(2) or into assets other than those eligible under this Regulation.

Article 14

Guarantee agreements

1.  The Commission shall conclude a guarantee agreement with each implementing partner on the granting of the EU guarantee in accordance with the requirements of this Regulation up to an amount to be determined by the Commission.

In case implementing partners form a group referred to in the second subparagraph of Article 12(1), a single guarantee agreement shall be concluded between the Commission and each implementing partner within the group or with one implementing partner on behalf of the group.

2.  The guarantee agreements shall contain, in particular, provisions concerning:

(a)  the amount and the terms of the financial contribution which is to be provided by the implementing partner;

(b)  the terms of the funding or the guarantees which are to be provided by the implementing partner to another legal entity participating in the implementation, whenever that is the case;

(c)  in accordance with Article 16, detailed rules on the provision of the EU guarantee, including coverage of portfolios of specific types of instruments and the respective events triggering possible calls on the EU guarantee;

(d)  the remuneration for risk-taking that is to be allocated in proportion to the respective share in the risk-taking of the Union and the implementing partner;

(e)  the payment conditions;

(f)  the commitment of the implementing partner to accept the decisions by the Commission and the Investment Committee as regards the use of the EU guarantee for the benefit of a proposed financing or investment operation, without prejudice to the decision-making of the implementing partner on the proposed operation without the EU guarantee;

(g)  provisions and procedures relating to the recovery of claims that is to be entrusted to the implementing partner;

(h)  financial and operational reporting and monitoring of the operations under the EU guarantee;

(i)  key performance indicators, in particular as regards the use of the EU guarantee, the fulfilment of the objectives and criteria laid down in Articles 3, 7 and 11 as well as the mobilisation of private capital;

(j)  where applicable, provisions and procedures relating to blending operations;

(k)  other relevant provisions in compliance with the requirements of [Title X] of the [Financial Regulation].

3.  A guarantee agreement shall also provide that remuneration attributable to the Union from financing and investment operations covered by this Regulation is to be provided after the deduction of payments due upon calls on the EU guarantee.

4.  In addition, a guarantee agreement shall provide that any amount due to the implementing partner related to the EU guarantee shall be deducted from the overall amount of remuneration, revenues and repayments due by the implementing partner to the Union from financing and investment operations covered by this Regulation. Where this amount is not sufficient to cover the amount due to an implementing partner in accordance with Article 15(3), the outstanding amount shall be drawn from the provisioning of the EU guarantee.

5.  Where the guarantee agreement is concluded under the Member State compartment, it may provide for the participation of representatives from the Member State or the regions concerned in the monitoring of the implementation of the guarantee agreement.

Article 15

Requirements for the use of the EU guarantee

1.  The granting of the EU guarantee shall be subject to the entry into force of the guarantee agreement with the relevant implementing partner.

2.  Financing and investment operations shall be covered by the EU guarantee only where they fulfil the criteria laid down in this Regulation and in the relevant investment guidelines and where the Investment Committee has concluded that they fulfil the requirements for benefiting from the support of the EU guarantee. The implementing partners shall remain responsible for ensuring the compliance of the financing and investment operations with this Regulation and the relevant investment guidelines.

3.  No administrative expenditure or fees related to the implementation of financing and investment operations under the EU guarantee shall be due to the implementing partner by the Commission, unless the nature of the policy objectives targeted by the financial product to be implemented allows the implementing partner to demonstrate the need for an exception. Coverage of such costs shall be laid down in the guarantee agreement and shall comply with [Article 209(2)(g)] of the [Financial Regulation].

4.  In addition, the implementing partner may use the EU guarantee to meet the relevant share of any recovery costs, unless deducted from recovery proceeds, in accordance with Article 14(4).

Article 16

Coverage and terms of the EU guarantee

1.  The remuneration for risk-taking shall be allocated between the Union and an implementing partner in proportion to their respective share in the risk-taking of a portfolio of financing and investment operations or, where relevant, of individual operations and shall be exclusively related to the characteristics and risk profile of the underlying operations. The implementing partner shall have an appropriate exposure at its own risk to financing and investment operations supported by the EU guarantee, unless exceptionally the policy objectives targeted by the financial product to be implemented are of such nature that the implementing partner could not reasonably contribute its own risk-bearing capacity to it.

2.  The EU guarantee shall cover:

(a)  for debt products referred to in Article 13(1)(a):

(i)  the principal and all interest and amounts due to the implementing partner but not received by it in accordance with the terms of the financing operations until the event of default; for subordinated debt a deferral, reduction or required exit shall be considered to be an event of default;

(ii)  restructuring losses;

(iii)  losses arising from fluctuations of currencies other than the euro in markets where possibilities for long-term hedging are limited;

(b)  for equity or quasi-equity investments referred to in Article 13(1)(a), the amounts invested and their associated funding cost and losses arising from fluctuations of currencies other than the euro;

(c)  for funding or guarantees by an implementing partner to another legal entity referred to in Article 13(1)(b), the amounts used and their associated funding costs.

3.  Where the Union makes a payment to the implementing partner upon a call on the EU guarantee, it shall be subrogated into the relevant rights, to the extent they continue to exist, of the implementing partner relating to any of its financing or investment operations covered by the EU guarantee.

The implementing partner shall, on behalf of the Union, pursue the recovery of claims for the amounts subrogated and reimburse the Union from the sums recovered.

CHAPTER IV

GOVERNANCE

Article 16a

Steering Board

1.   The InvestEU Fund shall be governed by a Steering Board, which, for the purpose of the use of the EU guarantee, shall determine, in conformity with the general objectives set out in Article 3:

(a)  the strategic orientation of the InvestEU Fund;

(b)  the operating policies and procedures necessary for the functioning of the InvestEU Fund;

(c)  the rules applicable to the operations with investment platforms;

2.   The Steering Board shall:

(a)  comprise six members as follows:

(i)  three members appointed by the Commission;

(ii)  one member appointed by the EIB Group;

(iii)   one member appointed by the Advisory Board from amongst the representatives of the implementing partners; that member shall not be a representative of the EIB Group;

(iv)  one expert appointed by the European Parliament. That expert shall not seek or take instructions from Union institutions, bodies, offices or agencies, from any Member State government or from any other public or private body and shall act in full independence. The expert shall perform his or her duties impartially and in the interest of the InvestEU Fund;

(b)  elect a Chairperson among the three Members appointed by the Commission for a fixed term of three years, renewable once;

(c)  discuss and take the utmost possible account of the positions of all members. If the members cannot converge in their positions, the Steering Board shall take its decisions by a majority of its members. The minutes of the Steering Board meetings shall provide a substantive account of the positions of all members.

3.   The Steering Board shall propose to the Commission modifications to the distribution of the amounts referred to in Annex I.

4.  The Steering Board shall regularly organise a consultation of relevant stakeholders, in particular co-investors, public authorities, experts, education, training and research institutions, philanthropic organisations, relevant social partners and representatives of civil society, on the orientation and implementation of the investment policy carried out under this Regulation.

5.  The detailed minutes of the meetings of the Steering Board shall be published as soon as possible after they have been approved by the Steering Board.

Article 17

Advisory Board

1.  The Commission and the Steering Board shall be advised by an advisory board ▌.

1a.  The advisory board shall strive to ensure gender balance and shall comprise:

(a)  one representative of each implementing partner;

(b)  one representative of each Member State;

(c)  one representative of the EIB Group;

(d)  one representative of the Commission;

(e)  one expert for each policy window, appointed by the European Economic and Social Committee;

(f)  one expert appointed by the Committee of the Regions.

2.   ▌

3.   ▌

4.  The advisory board meeting ▌shall be chaired by a representative of the Commission. The representative of the EIB Group shall be the vice-chair.

The advisory board shall meet regularly and at least twice a year at the request of the Chairperson. ▌

The detailed minutes of the meetings of the Advisory Board shall be made public as soon as possible after they have been approved by the Advisory Board.

The Commission shall establish the operating rules and procedures and manage the secretariat of the advisory board.

5.  The advisory board shall:

(a)  provide advice on the design of financial products to be implemented under this Regulation;

(b)  provide advice to the Commission and the Steering Board about market failures and sub-optimal investment situations and market conditions;

(c)  inform Member States about implementation of the InvestEU Fund under each policy window;

(d)  exchange views with Member States on market developments and share best practices.

Article 17a

Risk assessment Methodology

The Commission shall be empowered to adopt delegated acts in accordance with Article 26 to supplement this Regulation by establishing a risk assessment methodology. Such risk assessment methodology shall be developed in close cooperation with the EIB Group and the other implementing partners and shall include:

(a)  a risk rating classification, to ensure consistent and standard treatment of all operations independent from the intermediary institution;

(b)  a methodology to assess the value at risk and the probability of default based on clear statistical methods, including environmental, social and governance (ESG) criteria;

(c)  a method to assess exposure at default and loss given default, taking into account the value of financing, the project risk, the repayment terms, the collateral, and other relevant indicators.

Article 17b

Scoreboard

1.  A scoreboard of indicators (the ‘Scoreboard’) shall be used by each implementing partner to evaluate the quality and the soundness of investments potentially supported by the EU guarantee. The Scoreboard shall ensure an independent, transparent and harmonised assessment of the potential and actual use of the EU guarantee.

2.   Each implementing partner shall fill out the Scoreboard on its proposed financing and investment operations. If the investment operation is proposed by several implementing partners, the Scoreboard shall be filled out jointly by the various implementing partners involved.

3.  The Scoreboard shall, in particular, contain an assessment of:

(a)  the risk profile of the proposed financing and investment operations as resulted from the application of the risk assessment methodology referred to in Article 17a;

(b)  the benefit for final recipients;

(c)  compliance with the Union’s commitments on the UN Sustainable Development Goals, the Paris agreement on climate change, the European Pillar of Social Rights and the Charter of Fundamental Rights;

(d)  the respect of the eligibility criteria;

(e)  the quality and contribution of the investment operation to sustainable growth and employment;

(f)  the contribution of the investment operation to the realisation of InvestEU Programme objectives;

(g)  the technical and financial contribution to the project;

(h)  whether the proposed operation addresses the identified market failures or suboptimal investment operations.

4.   The Commission shall be empowered to adopt delegated acts in accordance with Article 26 to supplement this Regulation by establishing detailed rules for the scoreboard to be used by the implementing partners.

5.  Where necessary, the Commission may provide assistance to implementing partners in the application of the risk assessment methodology and in the compilation of the Scoreboard. It shall ensure that the scoring methodology is properly applied and that the scoreboards presented to the Investment Committee are of high quality.

Article 18

Article 19

Investment Committee

1.  A fully independent Investment Committee shall be established. It shall:

(a)  examine the proposals for financing and investment operations submitted by implementing partners for coverage under the EU guarantee and having passed a check of compliance with Union law and policies carried out by the Commission;

(b)  verify their compliance with this Regulation and the relevant investment guidelines, giving particular attention to the additionality requirement referred to in Article 7a of this Regulation, and to the requirement, where appropriate, to crowd in private investment referred to in [Article 209(2)(d)] of the [Financial Regulation]; and

(c)  check whether the financing and investment operations that would benefit from the support of the EU guarantee comply with all the relevant requirements.

2.  The Investment Committee shall meet in four different configurations, corresponding to the policy windows referred to in Article 7 (1).

Each configuration of the Investment Committee shall be composed of six remunerated external experts. The experts shall be selected in accordance with [Article 237] of the [Financial Regulation] and be appointed by the Commission for a fixed term of up to four years. Their term shall be renewable but shall not exceed seven years in total. The Steering Board may decide to renew the term of office of an incumbent member of the Investment Committee without availing itself of the procedure laid down in this paragraph.

The experts shall have a high level of relevant market experience in project structuring and financing or financing of SMEs or corporates.

The composition of the Investment Committee shall ensure that it has a wide knowledge of the sectors covered by the policy windows referred to in Article 7(1) and of the geographic markets in the Union and that it is gender-balanced as a whole.

Four members shall be permanent members of all four configurations of the Investment Committee. In addition, the four configurations shall each have two experts with experience in investment in sectors covered by that policy window. At least one of the permanent members shall have expertise in sustainable investment. The Steering Board shall assign the Investment Committee members to its appropriate configuration or configurations. The Investment Committee shall elect a chairperson from among its permanent members.

The Commission shall adopt the rules of procedure and host the secretariat for the Investment Committee. The secretariat shall also support the Steering Board.

3.  When participating in the activities of the Investment Committee, its members shall perform their duties impartially and in the sole interest of the InvestEU Fund. They shall not seek or take instructions from the implementing partners, the institutions of the Union, the Member States, or any other public or private body.

CVs and declarations of interest of each member of the Investment Committee shall be made public and constantly updated. Each member of the Investment Committee shall communicate without delay to the Commission and to the Steering Board all information needed to check on an ongoing basis the absence of any conflict of interest.

The Steering Board may remove a member from his or her functions if he or she does not respect the requirements laid down in this paragraph or for other duly justified reasons.

4.   When acting in accordance with this Article, the Investment Committee shall be supported by a secretariat hosted by the Commission and answerable to the chairperson of the Investment Committee. The secretariat shall check the completeness of the documentation provided by the implementing partners comprising a standardised request form, the scoreboard and any other document the Investment Committee considers relevant. The Investment Committee may seek clarifications from the implementing partner during its meetings or by requesting additional information to be submitted to a subsequent meeting. Any project assessment conducted by an implementing partner shall not be binding on the Investment Committee for the purposes of a financing or investment operation benefiting from the coverage by the EU guarantee.

The Investment Committee shall use in its assessment and verification of the proposals a scoreboard of indicators referred to in Article 17b.

5.  Conclusions of the Investment Committee shall be adopted by simple majority of all members, where such simple majority includes at least one of the experts. In case of a draw, the chair of the Investment Committee has the casting vote.

Conclusions of the Investment Committee approving the support of the EU guarantee to a financing or investment operation shall be publicly accessible and shall include the rationale for the approval. They shall also refer to the global assessment stemming from the Scoreboard. Where applicable, the Investment Committee shall include in the list of conclusions approving the support of the EU guarantee information on the operations, in particular their description, the identity of the promoters or financial intermediaries, and the objectives of the project. The publication shall not contain commercially sensitive information. In the case of commercially sensitive decisions, the Investment Committee shall make public such decisions and information concerning promoters or financial intermediaries at the date of closing of the relevant financing or any earlier date when commercial sensitivity ends.

The scoreboard shall be publicly available before the signature of a financing or investment operation or sub-project ▌. The publication shall not contain commercially sensitive information or personal data not to be disclosed under the Union data protection rules.

Twice a year, ▌the Investment Committee ▌shall submit to the European Parliament and to the Council a list of all the conclusions as well as the scoreboards relating to all those decisions. That submission shall be subject to strict confidentiality requirements.

Conclusions of the Investment Committee rejecting the use of the EU guarantee shall be made available in a timely manner to the implementing partner concerned.

6.  Where the Investment Committee is requested to approve the use of the EU guarantee for a financing or investment operation that is a facility, programme or structure which has underlying sub-projects, that approval shall comprise the underlying sub-projects, unless the Investment Committee, in duly justified cases, decides to retain the right to approve them separately.

6a.  The Investment Committee may, where it deems it necessary, submit to the Commission proposals for amendments to the investment guidelines.

CHAPTER V

InvestEU Advisory Hub

Article 20

InvestEU Advisory Hub

1.  The InvestEU Advisory Hub shall provide advisory support for the identification, preparation, development, structuring, procuring and implementation of investment projects, or enhance the capacity of promoters and financial intermediaries to implement financing and investment operations. Its support may cover any stage of the life-cycle of a project or financing of a supported entity, as appropriate.

The Commission shall sign agreements with the EIB Group and other implementing partners in order to designate them as Advisory Hub partners and charge them with the provision of advisory support, as referred to in the previous subparagraph, and the services referred to in paragraph 2. The Commission shall establish the single access point to the InvestEU Advisory Hub and allocate the requests for advisory support to the appropriate Advisory Hub partner. The Commission, the EIB Group and the other implementing partners shall cooperate closely with a view to ensuring efficiency, synergies and effective geographic coverage of support across the Union, while taking due account of existing structures and work.

The InvestEU Advisory Hub shall be available as a component under each policy window referred to in Article 7(1) covering all the sectors under that window. In addition, cross-sectoral and capacity building advisory services shall be available.

2.  The InvestEU Advisory Hub shall in particular provide the following services:

(a)  providing a single point of entry for project development assistance for authorities and project promoters for centrally managed Union programmes;

(aa)  dissemination to authorities and project promoters of all available additional information regarding the investment guidelines and the interpretation of those guidelines;

(b)  assisting project promoters, where appropriate, in developing their projects to fulfil the objectives and eligibility criteria set out in Articles 3, 7 and 11 and facilitating development of aggregators for small-scale projects; however, such assistance does not prejudge the conclusions of the Investment Committee on the coverage of the support of the EU guarantee to such projects;

(ba)  using the potential of attracting and financing small-scale projects, including through investment platforms;

(c)  supporting actions and leveraging local knowledge to facilitate the use of the InvestEU Fund support across the Union and contributing actively where possible to the objective of sectorial and geographical diversification of the InvestEU Fund by supporting the implementing partners in originating and developing potential financing and investment operations;

(d)  facilitating the establishment of collaborative platforms for peer-to-peer exchange and sharing of data, knowhow and best practices to support project pipeline and sector development , including helping to promote collaboration between, on the one hand, philanthropic organisations and, on the other hand, other potential investors and project promoters, particularly in relation to the social investment and skills policy window;

(e)  providing proactive advisory support, where necessary by means of a local presence, on the establishment of investment platforms, in particular cross-border and macro regional investment platforms as well as investment platforms bundling small and medium-sized projects in one or more Member States by theme or by region;

(ea)  facilitate and support the use of blending with grants or financial instruments funded by the Union budget or by other sources in order to strengthen synergies and complementarity between Union instruments and maximise the leverage and impact of the InvestEU Programme;

(f)  supporting actions for capacity building to develop organisational capacities, skills and processes and accelerate investment readiness of organisations in order for promoters and authorities to build investment project pipelines, develop financial instruments and investment platforms and to manage projects and for financial intermediaries to implement financing and investment operations for the benefit of entities that face difficulties in obtaining access to finance, including through support to develop risk assessment capacity or sector specific knowledge, with a particular focus on the cultural and creative sectors;

(fa)  providing proactive advisory support for start-ups, especially when seeking to protect their research and innovation investments by obtaining intellectual property titles, such as patents.

3.  The InvestEU Advisory Hub shall be available for public and private project promoters, including national promotional banks, investment platforms, SMEs and start-ups, to public authorities and to financial and other intermediaries.

4.  Fees may be charged for the services referred to in paragraph 2 to cover part of the costs for providing those services, except for services provided to public project promoters and non-profit institutions, which shall be free of charge. Fees charged to SMEs for the services referred to in paragraph 2 shall be capped at one third of the cost of the provision of those services.

5.  In order to achieve the objective referred to in paragraph 1 and to facilitate the provision of advisory support, the InvestEU Advisory Hub shall build upon the expertise of the Commission, the EIB Group and the other implementing partners.

6.  The InvestEU Advisory Hub shall have local presence, where necessary. It shall be established in particular in Member States or regions that face difficulties in developing projects under the InvestEU Fund. The InvestEU Advisory Hub shall assist in the transfer of knowledge to the regional and local level with a view to building up regional and local capacity and expertise for support referred to in paragraph 1, and to implement and accommodate small projects.

6a.  In order to provide the advisory support referred in paragraph 1 and to facilitate the provision of that advisory support at local level, the InvestEU Advisory Hub shall cooperate with and benefit from the expertise of national promotional banks or institutions. Cooperation between, on the one hand, the Invest EU Advisory Hub and, on the other hand, a national promotional bank or institution, may take the form of a contractual partnership. The InvestEU Advisory Hub shall endeavour to conclude at least one cooperation agreement with a national promotional bank or institution per Member State. In Member States where national promotional banks or institutions do not exist, the InvestEU Advisory Hub shall provide, where appropriate, and at request of the Member State concerned, proactive advisory support on the establishment of such bank or institution.

7.  The implementing partners shall propose to project promoters applying for financing, including in particular smaller-sized projects, to refer their projects to request the InvestEU Advisory Hub support in order to enhance, where appropriate, the preparation of their projects and to allow for the assessment of the possibility of bundling projects.

The implementing partners shall also inform promoters, where relevant, of the possibility of listing their projects on the InvestEU Portal referred to in Article 21.

CHAPTER VI

Article 21

InvestEU Portal

1.  The InvestEU Portal shall be established by the Commission. It shall be an easily accessible and user-friendly project database, providing relevant information for each project.

2.  The InvestEU Portal shall provide a channel for project promoters to bring their projects for which they are seeking finance visible and thus provide information on them to investors. The inclusion of projects in the InvestEU Portal shall be without prejudice to the decisions on the final projects selected for support under this Regulation, under any other instrument of the Union, or for public funding.

3.  Only projects that are compatible with Union law and policies shall be listed on the Portal.

4.  Projects meeting the conditions set out in paragraph 3 shall be transmitted by the Commission to the relevant implementing partners, and to the InvestEU Advisory Hub, as appropriate.

5.  Implementing partners shall examine projects falling within their geographic and activity scope.

CHAPTER VII

ACCOUNTABILITY, monitoring and reporting, evaluation and control

Article 21a

Accountability

1.   At the request of the European Parliament or of the Council, the Chairperson of the Steering Board shall report on the performance of the InvestEU Fund to the requesting institution, including by participating in a hearing before the European Parliament.

2.   The Chairperson of the Steering Board shall reply orally or in writing to questions addressed to the InvestEU Fund by the European Parliament or the Council, in any event within five weeks of the date of receipt of a question.

3.   At the request of the European Parliament or of the Council, the Commission shall submit a report on the application of this Regulation.

Article 22

Monitoring and reporting

1.  Indicators to report on progress of the InvestEU Programme implementation towards the achievement of the general and specific objectives set out in Article 3 are set in Annex III to this Regulation.

2.  To ensure effective assessment of progress of the InvestEU Programme towards the achievement of its objectives, the Commission is empowered to adopt delegated acts in accordance with Article 26 to amend Annex III to this Regulation to review or complement the indicators where considered necessary and to supplement this Regulation with provisions on the establishment of a monitoring and evaluation framework.

3.  The performance reporting system shall ensure that data for monitoring implementation and results are collected efficiently, effectively and in a timely manner. To that end, proportionate reporting requirements shall be imposed on implementing partners and other recipients of Union funds, as appropriate.

4.  The Commission shall report on the implementation of InvestEU Programme in accordance with [Articles 241 and 250] of the [Financial Regulation]. For that purpose, the EIB Group and the implementing partners shall provide annually the information, including those on the functioning of the guarantee, necessary to allow the Commission to comply with its reporting obligations.

5.  In addition, each implementing partner shall submit every six months a report to the European Parliament and the Commission on the financing and investment operations covered by this Regulation, broken down by the EU compartment and the Member State compartment by Member State, as appropriate. The report shall include an assessment of compliance with the requirements on the use of the EU guarantee and with the key performance indicators laid down in Annex III to this Regulation. The report shall also include operational, statistical, financial and accounting data, to the greatest extent possible while protecting the confidentiality of private and commercially sensitive information, on each financing and investment operation and at the compartment, policy window and the InvestEU Fund level. One of those reports shall contain the information the implementing partners shall provide in accordance with [Article 155(1)(a)] of the [Financial Regulation]. The Commission shall compile and assess implementing partners' reports and submit a summary in the form of public annual reports, providing information on the level of implementation of the programme against its objectives and performance indicators, indicating risks and opportunities for the financing and investment operations supported by the InvestEU Programme.

Article 23

Evaluation

1.  Evaluations shall be done in a timely manner to feed into the decision-making process.

2.  By 30 September 2024, the Commission shall carry out an interim evaluation on the InvestEU Programme, in particular on the use of the EU guarantee.

3.  At the end of the implementation of the InvestEU Programme, but no later than two years after the end of the period specified in Article 1, the Commission shall carry out a final evaluation of the InvestEU Programme, in particular on the use of the EU guarantee.

4.  The Commission shall communicate the conclusions of the evaluations, accompanied by its observations, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of Regions.

5.  The implementing partners shall contribute to and provide the Commission with the information necessary to perform the evaluations referred to in paragraphs 1 and 2.

6.  In accordance with [Article 211(1)] of the [Financial Regulation], the Commission shall every three years include in the annual report referred to in [Article 250] of the [Financial Regulation] a review of the adequacy of the provisioning rate laid down in Article 4(1) of this Regulation against the actual risk profile of the financing and investment operations covered by the EU guarantee. The Commission is empowered to adopt delegated acts in accordance with Article 26 in order to adjust, on the basis of that review, the provisioning rate laid down in Article 4(1) of this Regulation by up to 15%.

Article 24

Audits

Audits on the use of the Union funding carried out by the European Court of Auditors together with those performed by persons or entities, including by others 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].

Article 25

Protection of the financial interests of the Union

Where a third country participates in the InvestEU Programme by a decision under an international agreement or by virtue of any other legal instrument, the third country shall grant the necessary rights and access required for the authorizing officer responsible, the European Anti-Fraud Office (OLAF), the European Court of Auditors to comprehensively exert their respective competences. In the case of OLAF, such rights shall include the right to carry out investigations, including on-the-spot checks and inspections, provided for in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council concerning investigations conducted by the European Anti-Fraud Office (OLAF).

Article 26

Exercise of delegation

1.  The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article. Delegated acts concerning activities carried out by, or involving, the implementing partners shall be prepared in close dialogue with those implementing partners.

2.  The power to adopt delegated acts referred to in Articles 4(2), 7(3) and (6), 17a, 17b, 22(2) and 23(6) shall be conferred on the Commission for a period of five years from [entry into force of this Regulation]. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of that five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

3.  The delegation of power referred to in Articles 4(2), 7(3) and (6), 17a, 17b, 22(2) and 23(6) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

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

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

6.  A delegated act adopted pursuant to Articles 4(2), 7(3) and (6), 17a, 17b, 22(2) and 23(6) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

CHAPTER VIII

TransParency and visibility

Article 27

Information, communication and publicity

1.  The implementing partners shall acknowledge the origin and ensure the visibility of the Union funding (in particular when promoting the actions and their results), by providing coherent, effective and targeted information to multiple audiences, including the media and the public , by focusing also on social and environmental impacts.

2.  The Commission shall implement information and communication actions relating to the InvestEU Programme and its actions and results. Financial resources allocated to the InvestEU Programme 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.

CHAPTER IX

TRANSITIONAL AND FINAL PROVISIONS

Article 28

Transitional provisions

1.  Revenues, repayments and recoveries from financial instruments established by programmes referred to in Annex IV to this Regulation may be used for the provisioning of the EU guarantee under this Regulation.

2.  Revenues, repayments and recoveries from the EU guarantee established by Regulation (EU) 2015/1017 may be used for the provisioning of the EU guarantee under this Regulation, unless used for the purposes referred to in Articles 4, 9 and 12 of Regulation (EU) 2015/1017.

Article 29

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

It shall apply from 1 January 2021.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament  For the Council

The President  The President

ANNEX I

Amounts per specific objective

The ▌distribution referred to in Article 4(2) towards financial and investment operations shall be as follows:

(a)  ▌EUR 11 500 000 000 for objectives referred to in point (a) of Article 3(2);

(b)  ▌EUR 11 250 000 000 for objectives referred to in point (b) of Article 3(2);

(c)  ▌EUR 12 500 000 000 for objectives referred to in point (c) of Article 3(2);

(d)  ▌EUR 5 567 500 000 for objectives referred to in point (d) of Article 3(2).

ANNEX II

Eligible areas for financing and investment operations

The financing and investment operations may fall under one or more of the following areas:

1.  Development of the energy sector in accordance with the Energy Union priorities, including security of energy supply, and the commitments taken under the Agenda 2030 and the Paris Agreement, in particular through:

(a)  expansion of the generation, accelerating the deployment, supply or implementation of clean and sustainable renewable energy solutions;

(b)  energy efficiency, energy transition and energy savings (with a focus on reducing demand through demand‑side management and the refurbishment of buildings);

(c)  development, smartening and modernisation of sustainable energy infrastructure (transmission and distribution level, storage technologies, smart grids); and increasing the level of electricity interconnection between Member States;

(d)  production and supply of sustainable synthetic fuels from renewable/carbon-neutral sources, and alternative fuels, including for all modes of transport, in line with the provisions set out in [Renewable Energy Directive 2009/28/EC];

(e)  infrastructure for carbon-capture, and for carbon storage in industrial processes, bio-energy plants and manufacturing facilities towards the energy transition.

2.  Development of sustainable and safe transport infrastructures and mobility solutions and equipment and innovative technologies in accordance with Union transport priorities and the commitments taken under the Paris Agreement, in particular through:

(a)  projects supporting development of the TEN-T infrastructure, including its urban nodes, maritime and inland ports, airports, multimodal terminals and their connection to the main networks and the telematic applications laid down in Regulation (EU) No 1315/2013;

(aa)  TEN-T infrastructure projects that make provision for the use of at least two different modes of transport, in particular multimodal freight terminals and passenger transport hubs;

(b)  smart and sustainable urban mobility projects, including inland waterway and air transport (targeting low-emission urban transport modes, non-discriminatory accessibility, air pollution and noise, energy consumption and improved safety, including for cyclists and pedestrians);

(c)  supporting the renewal and retrofitting of transport mobile assets with the view of deploying low-emission mobility solutions, including the use of alternative fuels and synthetic fuels from renewable/carbon-neutral sources in vehicles of all transport modes;

(d)  railway infrastructure, other rail projects, inland waterway infrastructure and maritime ports and motorways of the sea;

(e)  alternative fuels infrastructure for all modes of transport, including electric charging infrastructure;

(ea)  smart and sustainable mobility projects, targeting

(i)  road safety (including improving driver and passenger safety and reducing the number of fatal accidents and people sustaining serious injuries),

(ii)  accessibility (including in rural areas),

(iii)  emission reduction,

(iv)  the development and deployment of new transport technologies and services, in particular by SMEs and in relation to connected and autonomous modes of transport as well as integrated ticketing;

(eb)  projects to maintain or upgrade existing transport infrastructure, including motorways on the TEN-T where necessary to upgrade, maintain or improve road safety, develop ITS services or guarantee infrastructure integrity and standards, in particular safe parking areas and facilities, alternative fuel stations and electric charging systems;

(ec)  road infrastructure for transport in cohesion countries, less developed regions or in cross-border transport projects.

3.  Environment and resources, in particular through:

(a)  water, including supply and sanitation, and coastal infrastructure and other water-related green infrastructure;

(b)  waste management infrastructure;

(c)  projects and enterprises in the fields of environmental resource management and sustainable technologies;

(d)  enhancement and restoration of eco‑systems and their services;

(e)  sustainable urban, rural and coastal development and regeneration;

(f)  climate change actions, including natural hazard disaster risk reduction, climate adaptation and mitigation;

(g)  projects and enterprises that implement circular economy by integrating resource efficiency aspects in the production and product life-cycle, including the sustainable supply of primary and secondary raw materials;

(h)  decarbonisation of and substantial reduction of emissions of energy-intensive industries, including large-scale demonstration of innovative low-emission technologies and their deployment;

(ha)  projects promoting sustainable cultural heritage, in particular strategies and instruments to safeguard European cultural heritage, tangible and intangible.

4.  Development of digital connectivity infrastructure, in particular through projects supporting deployment of very high capacity digital networks, 5G connectivity and improving digital connectivity and access, particularly to rural areas and peripheral regions.

5.  Research, development and innovation, in particular through:

(a)  support to research infrastructure and research and innovation projects in all thematic areas and defined in, and contributing to the objectives of, Horizon Europe;

(b)  corporate projects, including training and the promotion of the creation of clusters and business networks;

(c)  demonstration projects and programmes as well as deployment of related infrastructures, technologies and processes;

(d)  collaborative research and innovation projects between academia, research and innovation organisations and industry; public-private partnerships and civil society organisations;

(e)  knowledge and technology transfer;

(f)  new effective and accessible healthcare products, including pharmaceuticals, medical devices, diagnostics and advanced therapy medicinal products, new antimicrobials and innovative development process that avoid using animal testing.

6.  Development, ▌deployment and scaling-up of digital technologies and services, in particular through:

(a)  artificial intelligence in line with the Digital Europe Programme, particularly with regards to ethics;

(aa)  quantum technology;

(b)  cybersecurity and network protection infrastructures;

(c)  internet of things;

(d)  blockchain and other distributed ledger technologies;

(e)  advanced digital skills;

(f)  other advanced digital technologies and services contributing to the digitisation of the Union industry and the integration of digital technologies, services and skills in the transport sector of the Union;

(fa)  robotics and automatisation.

7.  Financial support to entities employing up to 3 000 employees. The SME window shall only focus on SMEs and small mid-cap companies and social enterprises that are SMEs, in particular through:

(a)  provision of working capital and investment, particularly relating to actions that drive an entrepreneurial culture and environment and promote the creation and growth of micro, small and medium enterprises;

(b)  provision of risk financing from seed to expansion stages to ensure technological leadership in innovative and sustainable sectors, including enhancing their digitisation and innovation capacity and to ensure their global competitiveness.

8.  Cultural and creative sectors; media, audio-visual sector and journalism, in particular through but not limited to:

(a)   new technologies such as assistive technologies applied to cultural and creative goods and services;

(b)   use of digital technologies for conservation and restoration of European cultural heritage, tangible and intangible;

(c)   cultural and creative industries and sectors, for example augmented reality/virtual reality, immersive environments, human computer interfaces, internet protocol and could infrastructures, 5G networks, new media;

(d)   technological management of intellectual property rights.

9.  Tourism sector.

10.  Sustainable agriculture, forestry, fishery, aquaculture and other elements of the wider sustainable bioeconomy.

11.  Social investments, including those supporting the implementation of the European Pillar of Social Rights, in particular through:

(a)  ethical and sustainable finance, microfinance, social enterprise finance and social economy;

(b)  demand for and supply of skills;

(c)  education, vocational training and related services;

(d)  social infrastructure, in particular

(i)  education and training, including early childhood education and care, educational facilities, student housing and digital equipment;

(ii)  social housing;

(iii)  health and long-term care, including clinics, hospitals, primary care, home services and community-based care;

(e)  social innovation, including innovative social solutions and schemes aiming at promoting social impacts and outcomes in the areas referred to in this point;

(f)  cultural activities with a social goal;

(fa)  measures to promote gender equality and active participation of women;

(g)  integration of vulnerable people, including third country nationals;

(h)  innovative health solutions, including e-health, health services and new care models;

(i)  inclusion of and accessibility for persons with disabilities.

12.   ▌

13.  Space, in particular through the development of the space sector in line with Space Strategy objectives:

(a)  to maximize the benefits for the Union society and economy;

(b)  to foster the competitiveness of space systems and technologies, addressing in particular independence of supply chains;

(c)  to underpin space entrepreneurship, including downstream development;

(d)  to foster Union's autonomy for safe and secure access to space, including dual use aspects.

ANNEX III

Key performance indicators

1. Volume of InvestEU financing (broken down by the points and sub-points of the eligible areas for financing and investment operations as laid down in Annex II)

1.1 Volume of operations signed

1.2 Investment mobilised

1.3 Amount of private finance mobilised

1.4 Leverage and multiplier effect achieved

1.4a Synergies with other Union programmes

2. Geographical coverage of InvestEU financing (broken down by the points and sub-points of the eligible areas for financing and investment operations as laid down in Annex II)

2.1 Number of countries covered by projects

2.1a Number of regions covered by projects

2.1b Number and volume of operations per Member State and per region

3. Impact of InvestEU financing

3.1 Number of jobs created or supported

3.2 Investment supporting energy and climate objectives, and, where applicable, detailed per policy window and category, as well as share of climate relevance.

3.3 Investment supporting digitalisation

3.3a  Investment supporting social objectives

4. Sustainable Infrastructure

4.1 Energy: Additional renewable energy generation capacity installed (MW) by source

4.2 Energy: Number of households, number of public and commercial premises with improved energy consumption classification, including the degree of improvement in the classification or equivalent figure, or number of households renovated to NZEB and passive house standard

4.3 Digital: Additional households commercial and/or public buildings with broadband access of at least 100 Mbps upgradable to Gigabit speed, or number of WIFI-hotspots created

4.4 Transport: Investment mobilised in TEN-T of which: ▌

– core network and comprehensive network in the component parts identified in the Annex to [Regulation No XXX, insert reference to new Connecting Europe Facility];

– multimodal infrastructure;

– innovative solutions contributing to a balanced mix of transport modes, including for inland waterway and air transport;

– Number of alternative fuel infrastructure points deployed

4.5 Environment: Investment contributing to the implementation of plans and programmes required by the Union environmental acquis relating to air quality, water, waste and nature

4.5a Number of alternative fuel infrastructure points deployed

4.6 Emissions reduction: amount of CO2 emissions reduced

5. Research, Innovation and Digitisation

5.1 Contribution to the objective of 3% of the Union's GDP invested in research, development and innovation throughout the programme

5.2 Number of enterprises supported carrying out research and innovation projects throughout the programme

5.2a Number of projects that before got support through Horizon Europe and/or the Digital Europe programme

6. SMEs

6.1 Number of enterprises supported by size (micro, small, medium sized and small mid-caps)

6.2 Number of enterprises supported by stage (early, growth/expansion) in particular innovative SMEs

6.3 Number of enterprises supported by sectors

7. Social Investment and Skills

7.1 Social infrastructure: Capacity and reach of supported social infrastructure by sector: housing, education, health, other

7.2 Microfinance and social enterprise finance:  Number of social economy enterprises supported

7.2a  Microfinance and social enterprise finance: Number of social economy enterprises created

7.2b  Microfinance and social enterprise finance: Number of social economy enterprises supported by stage (early, growth/expansion)

7.5 Skills: Number of individuals acquiring new skills or having skills validated: formal, informal, and non-formal education and training qualification

ANNEX IV

The InvestEU Programme - Predecessor instruments

A. Equity Instruments:

•  European Technology Facility (ETF98): Council Decision No 98/347/EC of 19 May 1998 on measures of financial assistance for innovative and job-creating small and medium-sized enterprises (SMEs) - the growth and employment initiative (OJ L 155, 29.5.1998, p. 43).

•  TTP: Commission decision adopting a complementary financing decision concerning the financing of actions of the activity "Internal market of goods and sectoral policies" of the Directorate-General Enterprises & Industry for 2007 and adopting the framework decision concerning the financing of the preparatory action "The EU assuming its role in a globalised world" and of four pilot projects "Erasmus young entrepreneurs", "Measures to promote cooperation and partnerships between micro and SMEs", "Technological Transfer" and "European Destinations of excellence" of the Directorate-General Enterprises & Industry for 2007 (C(2007)531).

•  European Technology Facility (ETF01): Council Decision No 2000/819/EC of 20 December 2000 on a multiannual programme for enterprise and entrepreneurship, and in particular for small and medium-sized enterprises (SMEs) (2001-2005) (OJ L 333, 29.12.2000, p. 84).

•  GIF: Decision No 1639/2006/EC of the European Parliament and of the Council of 24 October 2006 establishing a Competitiveness and Innovation Framework Programme (2007 to 2013) (OJ L 310, 9.11.2006, p. 15).

•  Connecting Europe Facility (CEF): Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010 (OJ L 348, 20.12.2013, p. 129) as modified by Regulation (EU) 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments, the European Investment Advisory Hub and the European Investment Project Portal and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013 — the European Fund for Strategic Investments (OJ L 169, 1.7.2015, p. 1).

•  COSME EFG: Regulation (EU) No 1287/2013 of the European Parliament and of the Council of 11 December 2013 establishing a Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (COSME) (2014 - 2020) and repealing Decision No 1639/2006/EC (OJ L 347, 20.12.2013, p. 33).

•  InnovFin Equity:

–  Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104);

–  Regulation (EU) No 1290/2013 of the European Parliament and of the Council of 11 December 2013 laying down the rules for participation and dissemination in "Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020)" and repealing Regulation (EC) No 1906/2006 (OJ L 347, 20.12.2013, p. 81);

–  Council Decision No 2013/743/EU of 3 December 2013 establishing the specific programme implementing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decisions 2006/971/EC, 2006/972/EC, 2006/973/EC, 2006/974/EC and 2006/975/EC (OJ L 347, 20.12.2013, p. 965).

•  EaSI Capacity Building Investments Window: Regulation (EU) No 1296/2013 of the European Parliament and of the Council of 11 December 2013 on a European Union Programme for Employment and Social Innovation ("EaSI") and amending Decision No 283/2010/EU establishing a European Progress Microfinance Facility for employment and social inclusion (OJ L 347, 20.12.2013, p. 238).

B. Guarantee Instruments:

•  SME Guarantee Facility '98 (SMEG98): Council Decision No 98/347/EC of 19 May 1998 on measures of financial assistance for innovative and job-creating small and medium-sized enterprises (SMEs) - the growth and employment initiative (OJ L 155, 29.5.1998, p. 43).

•  SME Guarantee Facility '01 (SMEG01): Council Decision No 2000/819/EC of 20 December 2000 on a multiannual programme for enterprise and entrepreneurship, and in particular for small and medium-sized enterprises (SMEs) (2001-2005) (OJ L 333, 29.12.2000, p. 84).

•  SME Guarantee Facility '07 (SMEG07): Decision No 1639/2006/EC of the European Parliament and of the Council of 24 October 2006 establishing a Competitiveness and Innovation Framework Programme (2007 to 2013) (OJ L 310, 9.11.2006, p. 15).

•  European Progress Microfinance Facility – Guarantee (EPMF-G): Decision No 283/2010/EU of the European Parliament and of the Council of 25 March 2010 establishing a European Progress Microfinance Facility for employment and social inclusion (OJ L 87, 7.4.2010, p. 1).

•  RSI:

–  Decision No 1982/2006/EC of the European Parliament and of the Council of 18 December 2006 concerning the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007-2013) Statements by the Commission (OJ L 412, 30.12.2006, p. 1);

–  Council Decision No 2006/971/EC of 19 December 2006 concerning the Specific Programme Cooperation implementing the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007 to 2013) (OJ L 400, 30.12.2006, p. 86);

–  Council Decision No 2006/974/EC of 19 December 2006 on the Specific Programme: Capacities implementing the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007 to 2013) (OJ L 400, 30.12.2006, p. 299).

•  EaSI-Guarantee: Regulation (EU) No 1296/2013 of the European Parliament and of the Council of 11 December 2013 on a European Union Programme for Employment and Social Innovation ("EaSI") and amending Decision No 283/2010/EU establishing a European Progress Microfinance Facility for employment and social inclusion (OJ L 347, 20.12.2013, p. 238).

•  COSME Loan Guarantee Facility (COSME LGF): Regulation (EU) No 1287/2013 of the European Parliament and of the Council of 11 December 2013 establishing a Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (COSME) (2014 - 2020) and repealing Decision No 1639/2006/EC (OJ L 347, 20.12.2013, p. 33).

•  InnovFin Debt:

–  Regulation (EU) No 1290/2013 of the European Parliament and of the Council of 11 December 2013 laying down the rules for participation and dissemination in "Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020)" and repealing Regulation (EC) No 1906/2006 (OJ L 347, 20.12.2013, p. 81);

–  Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104);

–  Council Decision No 2013/743/EU of 3 December 2013 establishing the specific programme implementing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decisions 2006/971/EC, 2006/972/EC, 2006/973/EC, 2006/974/EC and 2006/975/EC (OJ L 347, 20.12.2013, p. 965).

•  Cultural and Creative Sectors Guarantee Facility (CCS GF): Regulation (EU) No 1295/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Creative Europe Programme (2014 to 2020) and repealing Decisions No 1718/2006/EC, No 1855/2006/EC and No 1041/2009/EC (OJ L 347, 20.12.2013, p. 221).

•  Student Loan Guarantee Facility (SLGF): Regulation (EU) No 1288/2013 of the European Parliament and of the Council of 11 December 2013 establishing 'Erasmus+': the Union programme for education, training, youth and sport and repealing Decisions No 1719/2006/EC, No 1720/2006/EC and No 1298/2008/EC (OJ L 347, 20.12.2013, p. 50).

•  Private Finance for Energy Efficiency (PF4EE): Regulation (EU) No 1293/2013 of the European Parliament and of the Council of 11 December 2013 on the establishment of a Programme for the Environment and Climate Action (LIFE) and repealing Regulation (EC) No 614/2007 (OJ L 347, 20.12.2013, p. 185).

C. Risk-Sharing Instruments:

•  Risk Sharing Finance Facility (RSFF): Decision No 1982/2006/EC of the European Parliament and of the Council of 18 December 2006 concerning the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007-2013) Statements by the Commission (OJ L 412, 30.12.2006, p. 1).

•  InnovFin:

–  Regulation (EU) No 1290/2013 of the European Parliament and of the Council of 11 December 2013 laying down the rules for participation and dissemination in "Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020)" and repealing Regulation (EC) No 1906/2006 (OJ L 347, 20.12.2013, p. 81);

–  Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).

•  Connecting Europe Facility Debt Instrument (CEF DI): Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010 (OJ L 348, 20.12.2013, p. 129).

•  Natural Capital Financing Facility (NCFF): Regulation (EU) No 1293/2013 of the European Parliament and of the Council of 11 December 2013 on the establishment of a Programme for the Environment and Climate Action (LIFE) and repealing Regulation (EC) No 614/2007 (OJ L 347, 20.12.2013, p. 185).

D. Dedicated Investment Vehicles:

•  European Progress Microfinance Facility – Fonds commun de placements – fonds d'investissements spécialisés (EPMF FCP-FIS): Decision No 283/2010/EU of the European Parliament and of the Council of 25 March 2010 establishing a European Progress Microfinance Facility for employment and social inclusion (OJ L 87, 7.4.2010, p. 1).

•  Marguerite:

–  Regulation (EC) No 680/2007 of the European Parliament and of the Council of 20 June 2007 laying down general rules for the granting of Community financial aid in the field of the trans-European transport and energy networks (OJ L 162, 22.6.2007, p. 1);

–  Commission Decision of 25.2.2010 on European Union participation in the 2020 European Fund for Energy, Climate Change and Infrastructure (the Marguerite Fund) (C(2010)941).

•  European Energy Efficiency Fund (EEEF): Regulation (EU) No 1233/2010 of the European Parliament and of the Council of 15 December 2010 amending Regulation (EC) No 663/2009 establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy (OJ L 346, 30.12.2010, p. 5).

(1)

  OJ C …

(2)

  OJ C …

(3)

* Amendments: new or amended text is highlighted in bold italics; deletions are indicated by the symbol ▌.

(4)

  OJ C […], […], p. […].

(5)

  OJ C […], […], p. […].

(6)

  COM(2018)97 final.

(7)

1a   Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1).

(8)

  COM(2018)353.

(9)

  Directive (EU) 2016/2284 of the European Parliament and of the Council of 14 December 2016 on the reduction of national emissions of certain atmospheric pollutants, amending Directive 2003/35/EC and repealing Directive 2001/81/EC (OJ L 344, 17.12.2016, p. 1).

(10)

  COM(2017) 206.

(11)

  COM(2017) 250.

(12)

  Published as European Economy Discussion Paper 074 in January 2018.

(13)

  

(14)

  Reference to be updated: OJ C 373, 20.12.2013, p. 1. The agreement is available at: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.C_.2013.373.01.0001.01.ENG&toc=OJ:C:2013:373:TOC

(15)

1a   Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (OJ L 209, 2.8.1997, p. 1).

(16)

1b   Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure (OJ L 209, 2.8.1997, p. 6).

(17)

  Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making of 13 April 2016 (OJ L 123, 12.5.2016, p. 1).

(18)

  Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L248, 18.9.2013, p. 1).

(19)

  Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.95, p.1).

(20)

  Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292,15.11.96, p.2).

(21)

  Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p.1)

(22)

  Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).

(23)

  Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).

(24)

  

(25)

  

(26)

1a   Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).


OPINION of the Committee on Industry, Research and Energy (9.11.2018)

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the proposal for a regulation of the European Parliament and of the Council establishing the InvestEU Programme

(COM(2018)0439 – C8‑0257/2018 – 2018/0229(COD))

Rapporteur for opinion: Seán Kelly(*)

(*) Associated committees – Rule 54 of the Rules of Procedure

SHORT JUSTIFICATION

In order to ensure that Parliament will lead negotiations on the MFF package, ambitious deadlines have been set for reports and opinions so that Parliamentary discussions can begin in the autumn. This has meant there has been less time than usual to consult colleagues and stakeholders during the drafting process. For this reason, this report should be read as an initial proposal that will be added to in the coming weeks when there is more time for all to respond to the Commission’s proposal on the InvestEU Programme.

First and foremost, this proposal is welcome. Although EFSI and other programmes have in recent years been extremely successful in leveraging risk and mobilising needed investments into the EU economy particularly as Member States recovered from the economic downturn of a decade ago, there still exist market problems that have prevented investment from happening in particular areas, and investment rates, despite strong recent progress, are still below 2009 levels. This is at a time in which there are significant threats on the horizon for the EU economy. The UK’s decision to withdraw from the European Union has already placed a huge amount of uncertainty on many of the EU’s businesses, particularly those who depend on regular trade with the UK market, and many of whom are required to cross the border into the UK on a daily basis to conduct their business activities. At the same time, an increasingly inward-looking and protectionist United States poses a significant threat to many EU companies, particularly with the imposition of tariffs by the US President on goods such as aluminium and steel. It will be important to significantly increase the level of investment in the EU in order to enable our businesses to cope as much as possible with the potential impacts, and InvestEU can make a big impact in this regard.

Regarding the proposal itself, the move to a single investment support mechanism for internal action for the 2021-2027 period is a welcome move that can bring much simplification around EU financial instruments. Simplification is the key word, however, and it will be important to ensure that this is indeed the case; the InvestEU Programme must not create any additional complexity or difficulty for project promoters and investors, it is imperative that it indeed delivers actual simplification.

InvestEU builds on the success of EFSI, which was set up after the financial crisis, and became the launch pad for investment in the areas of our economy that needed it most. The aim was to mobilise €315 billion worth of investment from its inception to its completion. It is soon expected to reach this target, mostly through private capital. Almost a third of that money (28%) has gone towards financing SMEs in Europe, and approximately 22% was allocated for Research, Development and Innovation activities. An additional 22% went to energy-related projects. It will be important that InvestEU takes the successful elements of EFSI and maintains them, while allowing flexibility where needed for different types of instruments. One umbrella should not necessarily imply a one-size fits all approach - it will be important to get the correct approach, particularly for RDI and SME funding, which should draw on the lessons learned through instruments such as COSME and InnovFin.

Certain changes to the Commission proposal are put forward in order to account for this. Regarding additionally, EFSI focused on riskier projects - ones that would not have otherwise received investment. It will be important to ensure that InvestEU also delivers additionality in this sense, with some flexibility needed on the ‘high risk’ element, given the different scope of InvestEU. An article on additionality is added by the rapporteur for this reason.

Additionally, a steering committee is introduced, moving closer to the governing structures that have been in place for EFSI. The introduction of the steering committee is intended to ensure the right balance between policy and banking experience in governing the programme and will give representation to the Commission, the EIB and other Implementing Partners, and an expert appointee of the European Parliament. This will bring more balance to the strategic decision-making of InvestEU than is the case in the Commission proposal.

Finally, a clearer role for the EIB Group, as has successfully been the case for EFSI, would be welcome. The EIB is the treaty-based bank, has significant experience in the implementation of financial instruments, and is the only financial institution covering all Member States and EU policies. Due to the need for more small-scale projects it is also welcome to add the possibility for other implementing partners, such as national promotional banks.

AMENDMENTS

The Committee on Industry, Research and Energy calls on the Committee on Budgets and the Committee on Economic and Monetary Affairs, as the committees responsible, to take into account the following amendments:

Amendment    1

Proposal for a regulation

Recital 1

Text proposed by the Commission

Amendment

(1) With 1.8% of EU GDP, down from 2.2% in 2009, infrastructure investment activities in the Union in 2016 were about 20% below investment rates before the global financial crisis. Thus, while a recovery in investment-to-GDP ratios in the Union can be observed, it remains below what might be expected in a strong recovery period and is insufficient to compensate years of underinvestment. More importantly, the current investment levels and forecasts do not cover the Union’s structural investment needs in the face of technological change and global competitiveness, including for innovation, skills, infrastructure, small and medium-sized enterprises ('SMEs') and the need to address key societal challenges such as sustainability or population ageing. Consequently, continued support is necessary to address market failures and sub-optimal investment situations to reduce the investment gap in targeted sectors to achieve the Union's policy objectives.

(1) With1.8% of EU GDP, down from 2.2% in 2009, infrastructure investment activities in the Union in 2016 were about 20% below investment rates before the global financial crisis. Thus, while a recovery in investment-to-GDP ratios in the Union can be observed, it remains below what might be expected in a strong recovery period and is insufficient to compensate years of underinvestment and growth remains unevenly distributed among Member States. More importantly, the current investment levels and forecasts do not cover the Union’s structural investment needs for sustaining a long-term growth rate in the face of technological change and global competitiveness, including for innovation, research, skills, infrastructure, small and medium-sized enterprises ('SMEs'), start-ups, and the need to address key societal challenges such as sustainability or population ageing. Consequently, continued support is necessary to address market failures and suboptimal investment situations to reduce the investment gap in targeted sectors to achieve the Union's policy objectives. In this regard it is important that the InvestEU Programme continues to support otherwise difficult to fund projects that provide European citizens with long-term economic, environmental and societal benefits.

Amendment    2

Proposal for a regulation

Recital 2

Text proposed by the Commission

Amendment

(2)  Evaluations have underlined that the variety of financial instruments delivered under the 2014-2020 Multiannual Financial Framework period has led to some overlaps. That variety has also produced complexity for intermediaries and final recipients who were confronted with different eligibility and reporting rules. Absence of compatible rules also hampered the combination of several Union funds although such combination would have been beneficial to support projects in need of different types of funding. Therefore, a single fund, the InvestEU Fund, should be set up in order to achieve a more efficiently functioning support to final recipients by integrating and simplifying the financial offer under a single budgetary guarantee scheme, thereby improving the impact of Union intervention while reducing the cost to the Union budget.

(2)  Evaluations have underlined that the variety of financial instruments delivered under the 2014-2020 Multiannual Financial Framework period has led to some overlaps and unclear processes for the blending of the European Structural Investment Funds with the market instruments developed by the Union. That variety has also produced complexity for intermediaries and final recipients who were confronted with different eligibility and reporting rules. Absence of compatible rules also hampered the combination of several Union funds although such combination would have been beneficial to support projects in need of different types of funding. Therefore, a single fund, the InvestEU Fund, should be set up in order to achieve additionality, a more efficiently functioning support to final recipients by integrating and simplifying the financial offer under a single budgetary guarantee scheme, thereby improving the impact of Union intervention while reducing the cost to the Union budget.

Amendment    3

Proposal for a regulation

Recital 3

Text proposed by the Commission

Amendment

(3)  In the last years, the Union has adopted ambitious strategies to complete the Single Market and to stimulate sustainable growth and jobs, such as the Capital Markets Union, the Digital Single Market Strategy, the Clean Energy for all Europeans package, the Union Action Plan for the Circular Economy, the Low-Emission Mobility Strategy, the Defence and the Space Strategy for Europe. The InvestEU Fund should exploit and reinforce synergies between those mutually reinforcing strategies through providing support to investment and access to financing.

(3)  In the last years, the Union has adopted strategies to complete the Single Market and to stimulate sustainable growth and jobs. The InvestEU Fund should exploit and reinforce synergies between those strategies through providing support to investment and access to financing.

Amendment    4

Proposal for a regulation

Recital 5

Text proposed by the Commission

Amendment

(5)  The InvestEU Fund should contribute to improving the competitiveness of the Union, including in the field of innovation and digitisation, the sustainability of the Union's economic growth, the social resilience and inclusiveness and the integration of the Union capital markets, including solutions addressing their fragmentation and diversifying sources of financing for the Union enterprises. To that end, it should support projects that are technically and economically viable by providing a framework for the use of debt, risk sharing and equity instruments underpinned by a guarantee from the Union's budget and by contributions from implementing partners. It should be demand-driven while support under the InvestEU Fund should at the same time focus on contributing to meeting policy objectives of the Union.

(5)  The InvestEU Fund should contribute to improving the competitiveness of the Union, including in the field of innovation and digitisation, scientific excellence, the sustainability of the Union's economic growth, advancing technologies and innovations combatting climate change, the social resilience and inclusiveness and the integration of the Union capital markets, including solutions addressing their fragmentation and diversifying sources of financing for the Union enterprises. To that end, it should support projects that are technically and economically viable by providing a framework for the use of debt, risk sharing and equity instruments underpinned by a guarantee from the Union's budget and by contributions from implementing partners. It should be demand-driven while support under the InvestEU Fund should at the same time focus on contributing to meeting policy objectives of the Union including providing strategic, long-term economic, societal and environmental benefits in key areas with a strong focus on greatly enhancing access to finance for SMEs.

Amendment    5

Proposal for a regulation

Recital 5 a (new)

Text proposed by the Commission

Amendment

 

(5a)  Access to finance remains an essential issue for companies in the cultural and creative sector. To further develop this highly innovation sector, the dedicated guarantee facility created in Creative Europe will be continued under InvestEU as it has showed to successfully strengthen the financial capacity and competitiveness of cultural and creative sectors companies.

Amendment    6

Proposal for a regulation

Recital 5 b (new)

Text proposed by the Commission

Amendment

 

(5b)  The various debt and equity products offered under InvestEU and its thematic windows must cover a large spectrum of risk, including very high risks in particular in the RDI and Digitisation and SMEs windows, as it was the case under Horizon 2020 InnovFin.

Amendment    7

Proposal for a regulation

Recital 5 c (new)

Text proposed by the Commission

Amendment

 

(5c)  Cultural and creative sectors are one of the most resilient and fastest growing sectors of the European economy, which generate economic and cultural value from intellectual property and individual creativity. However, the intangible nature of their assets limits their access to private financing. Thus, one of the greatest challenges for the sectors is to increase their access to finance, which is essential to invest, scale-up and compete at the international level. Therefore the InvestEU Programme should facilitate access to finance for SMEs and organisations from cultural and creative sectors.

Amendment    8

Proposal for a regulation

Recital 6

Text proposed by the Commission

Amendment

(6)  The InvestEU Fund should support investments in tangible and intangible assets to foster growth, investment and employment, and thereby contributing to improved well-being and fairer income distribution in the Union. Intervention through the InvestEU Fund should complement Union support delivered through grants.

(6)  The InvestEU Fund should support investments in tangible and intangible assets to foster sustainable growth, investment and employment, and thereby contributing to improved well-being, environment and fairer income distribution in the Union. Intervention through the InvestEU Fund should complement and not replace Union support delivered through grants. Investments should comply with the additionality requirement so that market failures or sub-optimal investment situations can be addressed and investments strive to create long-term high quality employment, public infrastructure and sustainable growth.

Amendment    9

Proposal for a regulation

Recital 7

Text proposed by the Commission

Amendment

(7)  The Union endorsed the objectives set out in the United Nations Agenda 2030 and its Sustainable Development Goals and the Paris Agreement in 2015 as well as the Sendai Framework for Disaster Risk Reduction 2015-2030. To achieve the agreed objectives, including those embedded in the environmental policies of the Union, action pursuing sustainable development is to be stepped up significantly. Therefore, the principles of sustainable development should feature prominently in the design of the InvestEU Fund.

(7)  The Union endorsed the objectives set out in the United Nations Agenda 2030 and its Sustainable Development Goals and the Paris Agreement in 2015 as well as the Sendai Framework for Disaster Risk Reduction 2015-2030. To achieve the agreed objectives, including those embedded in the environmental policies of the Union, action pursuing sustainable development is to be stepped up significantly. Therefore, the principles of sustainable development and safety should be the basis of the design of the InvestEU Fund, and fossil-fuel related investments should not be supported unless duly justified on the basis that the investment contributes to the objectives of the Energy Union.

Amendment    10

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9)  Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, the InvestEU Programme will contribute to mainstream climate actions and to the achievement of an overall target of 25 % of the Union budget expenditures supporting climate objectives. Actions under the InvestEU Programme are expected to contribute 30 % of the overall financial envelope of the InvestEU Programme to climate objectives. Relevant actions will be identified during the InvestEU Programme's preparation and implementation and reassessed in the context of the relevant evaluations and review processes.

(9)  Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, the InvestEU Programme will contribute to mainstream climate actions and to the achievement of an overall target of 25 % of the Union budget expenditures supporting climate objectives. Actions under the InvestEU Programme are expected to contribute at least 40 % of the overall financial envelope of the InvestEU Programme to climate objectives. Relevant actions will be identified during the InvestEU Programme's preparation and implementation and reassessed in the context of the relevant evaluations and review processes.

Amendment    11

Proposal for a regulation

Recital 9 a (new)

Text proposed by the Commission

Amendment

 

(9a)  With regard to cost of capital of renewable energy projects, the InvestEU Fund should allow for the use of an innovative guarantee instrument to reduce regulatory risk and associated high cost of capital in some Member States. This possibility should be open on a voluntary basis. To achieve this objective, the InvestEU Fund should contribute where appropriate to the enabling framework for investment into renewable energy as set out in Art 3.5 of the [revised Renewables Directive], including the financing mechanism established by Article 27bis of the [Governance Regulation].

Justification

The Commission should ensure synergies between the different instruments established to support cost-effective deployment of renewable energy sources in Europe and avoid duplication. If deemed relevant and efficient by the Commission, the InvestEU Fund should subsequently contribute to other existing or upcoming platforms with similar objectives in the sector of renewable energy. This approach is recommended by the Commission's High Level Group on Sustainable Finance and was also implemented by the World Bank in similar projects in the past.

Amendment    12

Proposal for a regulation

Recital 10

Text proposed by the Commission

Amendment

(10)  The contribution of the InvestEU Fund to the achievement of the climate target will be tracked through an EU climate tracking system developed by the Commission in cooperation with implementing partners and using in an appropriate way the criteria established by [Regulation on the establishment of a framework to facilitate sustainable investment14 ] for determining whether an economic activity is environmentally sustainable.

(10)  The contribution of the InvestEU Fund to the achievement of the climate target and sectorial targets included in the 2030 Climate and Energy Framework will be tracked through an EU climate tracking system developed by the Commission in cooperation with implementing partners and using in an appropriate way the criteria established by [Regulation on the establishment of a framework to facilitate sustainable investment 14 ] for determining whether an economic activity is environmentally sustainable. The InvestEU Programme will should also contribute to the implementation of other dimensions of the Sustainable Development Goals (SDGs).

__________________

__________________

14 COM(2018)353.

14 COM(2018)353.

Amendment    13

Proposal for a regulation

Recital 11

Text proposed by the Commission

Amendment

(11)  According to the 2018 Global Risks Report issued by the World Economic Forum, half of the ten most critical risks threatening the global economy relate to the environment. Such risks include air, soil and water pollution, extreme weather events, biodiversity losses and failures of climate-change mitigation and adaptation. Environmental principles are strongly embedded in the Treaties and many of the Union's policies. Therefore, the mainstreaming of environmental objectives should be promoted in the InvestEU Fund related operations. Environmental protection and related risk prevention and management should be integrated in the preparation and implementation of investments. The EU should also track its biodiversity-related and air pollution control-related expenditure in order to fulfil the reporting obligations under the Convention on Biological Diversity and Directive (EU) 2016/2284 of the European Parliament and of the Council15 Investment allocated to environmentally sustainability objectives should therefore be tracked using common methodologies coherent with that developed under other Union programmes applying to climate, biodiversity and air pollution management in order to allow assessing the individual and combined impact of investments on the key components of the natural capital, including air, water, land and biodiversity.

(11)  According to the 2018 Global Risks Report issued by the World Economic Forum, half of the ten most critical risks threatening the global economy relate to the environment. Such risks include air, soil, inland water and ocean pollution, extreme weather events, biodiversity losses and failures of climate-change mitigation and adaptation. Environmental principles are strongly embedded in the Treaties and many of the Union's policies. Therefore, the mainstreaming of environmental objectives should be promoted in the InvestEU Fund related operations. Environmental protection and related risk prevention and management should be integrated in the preparation and implementation of investments. The EU should also track its biodiversity-related and air pollution control-related expenditure in order to fulfil the reporting obligations under the Convention on Biological Diversity and Directive (EU) 2016/2284 of the European Parliament and of the Council15 Investment allocated to environmentally sustainability objectives should therefore be tracked using common methodologies coherent with that developed under other Union programmes applying to climate, biodiversity and air pollution management in order to allow assessing the individual and combined impact of investments on the key components of the natural capital, including air, water, land and biodiversity.

__________________

__________________

15 Directive (EU) 2016/2284 of the European Parliament and of the Council of 14 December 2016 on the reduction of national emissions of certain atmospheric pollutants, amending Directive 2003/35/EC and repealing Directive 2001/81/EC (OJ L 344, 17.12.2016, p. 1).

15 Directive (EU) 2016/2284 of the European Parliament and of the Council of 14 December 2016 on the reduction of national emissions of certain atmospheric pollutants, amending Directive 2003/35/EC and repealing Directive 2001/81/EC (OJ L 344, 17.12.2016, p. 1).

Amendment    14

Proposal for a regulation

Recital 12 a (new)

Text proposed by the Commission

Amendment

 

(12a)  The InvestEU Programme should also integrate the gender perspective in all its working and decision making processes, make sure that committees and projects teams are gender balanced and ensure that the implementation of this fund contributes to the promotion of gender equality in compliance with EU gender mainstreaming obligations (article 8 TFEU).

Amendment    15

Proposal for a regulation

Recital 13

Text proposed by the Commission

Amendment

(13)  Low infrastructure investment rates in the Union during the financial crisis undermined the Union's ability to boost sustainable growth, competitiveness and convergence. Sizeable investments in the European infrastructure are fundamental to meet the Union's sustainability targets, including the 2030 energy and climate targets. Accordingly, support from the InvestEU Fund should target investments into transport, energy, including energy efficiency and renewable energy, environmental, climate action, maritime and digital infrastructure. To maximise the impact and the value added of Union financing support, it is appropriate to promote a streamlined investment process enabling visibility of the project pipeline and consistency across relevant Union programmes. Bearing in mind security threats, investment projects receiving Union support should take into account principles for the protection of citizens in public spaces. This should be complementary to the efforts made by other Union funds such as the European Regional Development Fund providing support for security components of investments in public spaces, transport, energy and other critical infrastructure.

(13)  Low infrastructure investment rates in the Union during the financial crisis undermined the Union's ability to boost sustainable growth, competitiveness and convergence. Sizeable investments in the European infrastructure, notably with regard to interconnection and energy efficiency and to creating a Single European Transport Area, are fundamental to meet the Union's sustainability targets, including the EU’s commitments towards the SDGs, and the 2030 energy and climate targets. Accordingly, support from the InvestEU Fund should target investments into transport, energy, including energy efficiency and renewable energy, environmental, climate action, maritime and digital infrastructure, supporting e.g. development and deployment of Intelligent Transport Systems (ITS). InvestEU should prioritise areas that are under-invested, and in which additional investment is required, including sustainable mobility energy efficiency, and actions that contribute to the achievement of the 2030 and long-term climate and energy targets. To maximise the impact and the value added of Union financing support, it is appropriate to promote a streamlined investment process enabling visibility of the project pipeline and maximising synergies across relevant Union programmes in the areas i.a. of transport, energy and digital. Bearing in mind security threats, investment projects receiving Union support should take into account principles for the protection of citizens in public spaces. This should be complementary to the efforts made by other Union funds such as the European Regional Development Fund providing support for security components of investments in public spaces, transport, energy and other critical infrastructure.

Amendment    16

Proposal for a regulation

Recital 13 a (new)

Text proposed by the Commission

Amendment

 

(13a)  The Invest EU Programme treats energy efficiency as a crucial element and a key consideration for investment decisions. Namely, it enshrine the 'energy efficiency first’ principle, which means to consider, before taking energy planning, policy and investment decisions, whether cost-efficient, technically, economically and environmentally sound alternative energy efficiency measures could replace in whole or in part the envisaged planning, policy and investment measures, whilst still achieving the objectives of the respective decisions. Such cost-efficient alternatives include measures to make energy demand and energy supply more efficient, in particular by means of cost-effective energy end-use savings, demand-side response initiatives and more efficient conversion, transmission and distribution of energy. Member States should also encourage the spread of this principle in regional and local government, as well as in the private sector.

Amendment    17

Proposal for a regulation

Recital 13 b (new)

Text proposed by the Commission

Amendment

 

(13b)  The Energy Performance of Buildings directive (Directive (EU) 2018/844) requires Member States to establish a long-term renovation strategy to support the renovation of the national stock of residential and non-residential buildings, both public and private, into a highly energy efficient and decarbonised building stock by 2050, facilitating the cost-effective transformation of existing buildings into nearly zero-energy buildings. Member States are also required to facilitate access to appropriate mechanisms for the aggregation of projects and the reduction of the perceived risk for investors and the private sector.

Amendment    18

Proposal for a regulation

Recital 14

Text proposed by the Commission

Amendment

(14)  Whereas the level of overall investment in the Union is increasing, investment in higher-risk activities such as research and innovation is still inadequate. The resulting underinvestment in research and innovation is damaging to the industrial and economic competitiveness of the Union and the quality of life of its citizens. The InvestEU Fund should provide the appropriate financial products to cover different stages in the innovation cycle and a wide range of stakeholders, in particular to allow the upscaling of and deployment of solutions at a commercial scale in the Union, in order to make such solutions competitive on world markets.

(14)  Whereas the level of overall investment in the Union is increasing, investment in higher-risk activities such as research and innovation is still inadequate. Given the public funding of research and innovation activities drives productivity growth and is crucial to boost private research and innovation activities, the resulting underinvestment in research and innovation is damaging to the industrial and economic competitiveness of the Union and the quality of life of its citizens. The InvestEU Fund should provide the appropriate financial products to cover different stages in the innovation cycle and a wide range of stakeholders, in particular to allow the upscaling of and deployment of solutions at a commercial scale in the Union, in order to make such solutions competitive on world markets, and to promote EU excellence in sustainable technologies at a global level. In order to address the need to support investment in higher-risk activities such as research and innovation, it is essential that Horizon Europe, in particular the EIC, works in synergy with the financial products to be deployed under InvestEU. Additionally, innovative SMEs and start-ups face difficulties in access to finance, especially those focusing on intangible assets, hence the need for the EIC to work in close complementarity with the dedicated financial products under InvestEU to ensure a continuity of support for such SMEs. In that regard, the experience gained from the financial instruments deployed under Horizon 2020 such as InnovFin and the loan guarantee for SMEs under COSME should serve as a strong basis to deliver this targeted support.

Amendment    19

Proposal for a regulation

Recital 14 a (new)

Text proposed by the Commission

Amendment

 

(14a)  To provide the best possible advice to InvestEU beneficiaries, as well as to support synergies with Horizon Europe, services provided by the EIB InnovFin Advisory should be strengthened.

Amendment    20

Proposal for a regulation

Recital 15

Text proposed by the Commission

Amendment

(15)  A significant effort is urgently needed to invest in digital transformation and to distribute the benefits of it to all Union citizens and businesses. The strong policy framework of the Digital Single Market Strategy should now be matched by investment of a similar ambition, including in artificial intelligence.

(15)  A significant effort is urgently needed to invest in and boost the digital transformation and to distribute the benefits of it to all Union citizens and businesses, in urban and rural areas. The strong policy framework of the Digital Single Market Strategy should now be matched by investment of a similar ambition, including in artificial intelligence in line with the Digital Europe Programme, particularly with regard to ethics, machine learning, internet of things, biotechnology and Fintech, which can increase efficiencies in mobilising capital for entrepreneurial ventures.

Amendment    21

Proposal for a regulation

Recital 15 a (new)

Text proposed by the Commission

Amendment

 

(15a)  As the single market is negatively impacted by the digital divide, created by lack of network access, uneven speeds between regions and lack of knowledge, the digital transformation of the society should empower citizens, especially the young digital natives, to feel secure to use new technologies, learning about privacy, security and basic safeguards that will protect them from malicious activity and increase their potential for the economy. Therefore a comprehensive approach to increase coverage, achieve similar levels of connectivity and equal knowledge for all is needed.

Amendment    22

Proposal for a regulation

Recital 16

Text proposed by the Commission

Amendment

(16)  Small and medium-sized enterprises (SMEs) play a crucial role in the Union. However, they face challenges when accessing finance because of their perceived high risk and lack of sufficient collateral. Additional challenges arise from SMEs' need to stay competitive by engaging in digitisation, internationalisation and innovation activities and skilling up their workforce. Moreover, compared to larger enterprises, they have access to a more limited set of financing sources: they typically do not issue bonds, have only limited access to stock exchanges or large institutional investors. The challenge in accessing finance is even greater for those SMEs whose activities focus on intangible assets. SMEs in the Union rely heavily on banks and debt financing in the form of bank overdrafts, bank loans or leasing. Supporting SMEs that face the above challenges and providing more diversified sources of funding is necessary for increasing the ability of SMEs to finance their creation, growth and development, withstand economic downturns, and for making the economy and the financial system more resilient during economic downturn or shocks. This is also complementary to the initiatives already undertaken in the context of the Capital Markets Union. The InvestEU Fund should provide an opportunity to focus on specific, more targeted financial products.

(16)  Small and medium-sized enterprises (SMEs) represent over 99% of businesses in the Union and their economic value is significant and crucial. However, they face challenges when accessing finance because of their perceived high risk and lack of sufficient collateral. Gender disparities also need to be addressed, as female creativity and entrepreneurial potential are an under-exploited source of growth and jobs that should be further developed. Additional challenges arise from SMEs' need to stay competitive by engaging in digitisation, internationalisation and innovation activities and skilling up their workforce. Moreover, compared to larger enterprises, they have access to a more limited set of financing sources: they typically do not issue bonds, have only limited access to stock exchanges or large institutional investors. The lack of access to capital for SMEs is exacerbated by the comparatively small European private equity industry, and the challenge in accessing finance is even greater for those SMEs whose activities focus on intangible assets. SMEs in the Union rely heavily on banks and debt financing in the form of bank overdrafts, bank loans or leasing. Supporting SMEs that face the above challenges by simplifying their access to finance and providing more diversified sources of funding is necessary for increasing the ability of SMEs to finance their creation, growth, innovation and sustainable development, ensure their competitiveness, withstand economic downturns, and for making the economy and the financial system more resilient during economic downturn or shocks. This is also complementary to the initiatives already undertaken in the context of the Capital Markets Union. Programmes such as COSME have been important for SMEs in the they have facilitated access to finance in all phases of their lifecycle, and this was added to by EFSI for which there was a quick SME uptake. The InvestEU Fund should therefore build on these successes and provide an opportunity to focus on specific, more targeted financial products.

Amendment    23

Proposal for a regulation

Recital 16 a (new)

Text proposed by the Commission

Amendment

 

(16a)  Undertakings providing services of general interest play an essential and strategic role in key sectors with large network industries (energy, water, waste, environment, postal services, transport and telecommunications), health, education and social services. The European Union, by supporting these undertakings, safeguards the wellbeing of its citizens and democratic choices, inter alia concerning the quality of services;

Amendment    24

Proposal for a regulation

Recital 17

Text proposed by the Commission

Amendment

(17)  As set out in the reflection paper on the social dimension of Europe16 and the European Pillar of Social Rights17 , building a more inclusive and fairer Union is a key priority for the Union to tackle inequality and foster social inclusion policies in Europe. Inequality of opportunities affects in particular access to education, training and health. Investment in the social, skills and human capital-related economy, as well as in the integration of vulnerable populations in the society, can enhance economic opportunities, especially if coordinated at Union level. The InvestEU Fund should be used to support investment in education and training, help increase employment, in particular among the unskilled and long-term unemployed, and improve the situation with regard to intergenerational solidarity, the health sector, homelessness, digital inclusiveness, community development, the role and place of young people in society as well as vulnerable people, including third country nationals. The InvestEU Programme should also contribute to the support of European culture and creativity. To counter the profound transformations of societies in the Union and of the labour market in the coming decade, it is necessary to invest in human capital, microfinance, social enterprise finance and new social economy business models, including social impact investment and social outcomes contracting. The InvestEU Programme should strengthen nascent social market eco-system, increasing the supply of and access to finance to micro- and social enterprises, to meet the demand of those who need it the most. The report of the High-Level Task-Force on Investing in Social Infrastructure in Europe18 has identified investment gaps in social infrastructure and services, including for education, training, health and housing, which call for support, including at the Union level. Therefore, the collective power of public, commercial and philanthropic capital, as well as support from foundations, should be harnessed to support the social market value chain development and a more resilient Union.

(17)  As set out in the reflection paper on the social dimension of Europe16, the European Pillar of Social Rights17 and the EU framework on the EU Convention on the Rights of Persons with Disabilities, building a more inclusive and fairer Union is a key priority for the Union to tackle inequality and foster social inclusion policies in Europe. Inequality of opportunities affects in particular access to education, training and health. Investment in the social, skills and human capital-related economy, as well as in the integration of vulnerable populations in the society, can enhance economic opportunities, especially if coordinated at Union level. Given the significant need for investment into social infrastructure, the InvestEU Fund should be used to support investment in education and training, help increase employment, in particular among the unskilled and long-term unemployed, and improve the situation with regard to gender equality, equal opportunities, intergenerational solidarity, the health sector, homelessness, digital inclusiveness, community development, the role and place of young people in society as well as vulnerable people, including third country nationals. The InvestEU Programme should also contribute to the support of European culture and creativity. To counter the profound transformations of societies in the Union and of the labour market in the coming decade, it is necessary to invest in human capital, microfinance, social enterprise finance and new social economy business models, including social impact investment and social outcomes contracting. The InvestEU Programme should strengthen nascent social market eco-system, increasing the supply of and access to finance to micro- and social enterprises, to meet the demand of those who need it the most. The report of the High-Level Task-Force on Investing in Social Infrastructure in Europe18 has identified investment gaps in social infrastructure and services, including for education, training, health and housing, which call for support, including at the Union level. Therefore, the collective power of public, commercial and philanthropic capital, as well as support from foundations, should be harnessed to support the social market value chain development and a more resilient Union.

__________________

__________________

16 COM(2017) 206.

16 COM(2017) 206.

17 COM(2017) 250.

17 COM(2017) 250.

18 Published as European Economy Discussion Paper 074 in January 2018.

18 Published as European Economy Discussion Paper 074 in January 2018.

Amendment    25

Proposal for a regulation

Recital 17 a (new)

Text proposed by the Commission

Amendment

 

(17a)  The projects funded under InvestEU should promote equality between women and men, in particular in research and innovation, by addressing the underlying causes of gender imbalance, by exploiting the full potential of both female and male researchers, and by integrating the gender dimension into the research and innovation content; as well as by paying particular attention to ensuring gender balance in evaluation panels and in other relevant advisory and expert bodies. Activities should also aim at implementation of principles relating to equality between women and men as laid down in Articles 2 and 3 of the Treaty on European Union and in Article 8 TFEU and Directive 2006/54/EC on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation.

Amendment    26

Proposal for a regulation

Recital 19 a (new)

Text proposed by the Commission

Amendment

 

(19a)  The InvestEU Fund should also support just transition actions and strategies supporting investments addressing the situation of workers in specific sectors like coal/lignite mining, automotive, that could be affected from the transition to a low-carbon economy. The Invest EU fund should be able to support the transformation of those economies towards sustainable activities and attract alternative innovative businesses, start-ups, and industries with the aim of building a sustainable regional economy. Further synergies with additional supporting schemes like the modernisation Fund to be set up for the period 2021-2030 as well as other national and Union ‘s programmes addressing fair transition should also be promoted.

Amendment    27

Proposal for a regulation

Recital 19 b (new)

Text proposed by the Commission

Amendment

 

(19b)  That fund should ensure equality in the funding of projects and projects throughout the EU, with a close focus on the poorest and least developed regions.

Amendment    28

Proposal for a regulation

Recital 21

Text proposed by the Commission

Amendment

(21)  The InvestEU Fund should be open to contributions from third countries that are members of the European Free Trade Association, acceding countries, candidates and potential candidates, countries covered by the Neighbourhood policy and other countries, in accordance with the conditions laid down between the Union and those countries. This should allow continuing cooperating with the relevant countries, where appropriate, in particular in the fields of research and innovation as well as SMEs.

(21)  The InvestEU Fund should be open to contributions from third countries that are members of the European Free Trade Association, acceding countries, candidates and potential candidates, countries covered by the Neighbourhood policy and other countries, in accordance with the conditions laid down between the Union and those countries, and provided those countries respect human rights. This should allow continuing cooperating with the relevant countries, where appropriate, in particular in the fields of research and innovation as well as SMEs.

Amendment    29

Proposal for a regulation

Recital 23 a (new)

Text proposed by the Commission

Amendment

 

(23a)  The budget of €3.105 million (in constant prices) for Research and Innovation under the Invest EU should not be taken from the Horizon Europe Programme's overall budget of 120 billion (in constant prices), but instead will be additional to that budget.

Amendment    30

Proposal for a regulation

Recital 24

Text proposed by the Commission

Amendment

(24)  The EU guarantee underpinning the InvestEU Fund should be implemented indirectly by the Commission relying on implementing partners with outreach to final recipients. A guarantee agreement allocating guarantee capacity from the InvestEU Fund should be concluded by the Commission with each implementing partner, to support its financing and investment operations meeting the InvestEU Fund objectives and eligibility criteria. The InvestEU Fund should be provided with a specific governance structure to ensure the appropriate use of the EU guarantee.

(24)  The EU guarantee underpinning the InvestEU Fund should be implemented indirectly by the Commission relying on implementing partners with outreach to final recipients. A guarantee agreement allocating guarantee capacity from the InvestEU Fund should be concluded by the Commission with each implementing partner, to support its financing and investment operations meeting the InvestEU Fund objectives and eligibility criteria. In order to improve transparency, efficiency, accountability and ensure the appropriate use of the EU guarantee, the InvestEU Fund should be provided with a specific governance structure, completely separate from that of the EIB Group.

Amendment    31

Proposal for a regulation

Recital 26

Text proposed by the Commission

Amendment

(26)  The Commission should assess the compatibility of investment and financing operations submitted by the implementing partners with Union law and policies whereas the decisions on financing and investment operations should ultimately be taken by an implementing partner.

(26)  As Steering Committee with an executive role to make decisions in accordance with Article 17, consisting of appointees by the European Commission, The European Investment Bank, the Implementing Partners, and a non-voting expert appointed by the European Parliament, should be established in order to ensure the governance of the InvestEU programme has the correct balance between policy and banking expertise. The Steering Committee should assess the compatibility of investment and financing operations submitted by the implementing partners with Union law and policies whereas the decisions on financing and investment operations should ultimately be taken by an implementing partner.

Amendment    32

Proposal for a regulation

Recital 27

Text proposed by the Commission

Amendment

(27)  A Project Team consisting of experts put at the disposal of the Commission by the implementing partners in order to provide professional expertise in financial and technical assessment of proposed financing and investment operations should score those submitted by the implementing partners to be assessed by the Investment Committee.

deleted

Amendment    33

Proposal for a regulation

Recital 28

Text proposed by the Commission

Amendment

(28)  An Investment Committee composed of independent experts should conclude on the granting of the support from the EU guarantee to financing and investment operations fulfilling the eligibility criteria, thereby providing external expertise in investment assessments in relation to projects. The Investment Committee should have different configurations to best cover different policy areas and sectors.

(28)  An Investment Committee composed of independent experts should conclude on the granting of the support from the EU guarantee to financing and investment operations fulfilling the eligibility criteria, thereby providing external expertise in investment assessments in relation to projects. The Investment Committee should have different configurations to best cover different policy areas and sectors, and should always include at least two experts with experience in climate action, environmental protection and management.

Amendment    34

Proposal for a regulation

Recital 29

Text proposed by the Commission

Amendment

(29)  In selecting implementing partners for the deployment of the InvestEU Fund, the Commission should consider the counterpart's capacity to fulfil the objectives of the InvestEU Fund and contribute its own resources, in order to ensure adequate geographical coverage and diversification, to crowd-in private investors and to provide sufficient risk diversification as well as new solutions to address market failures and sub-optimal investment situations. Given its role under the Treaties, its capacity to operate in all Member States and the existing experience under the current financial instruments and the EFSI, the European Investment Bank (‘EIB’) Group should remain a privileged implementing partner under the InvestEU Fund's EU compartment. In addition to the EIB Group, national promotional banks or institutions should be able to offer a complementary financial product range given that their experience and capabilities at regional level could be beneficial for the maximisation of the impact of public funds on the territory of the Union. Moreover, it should be possible to have other international financial institutions as implementing partners, in particular when they present a comparative advantage in terms of specific expertise and experience in certain Member States. It should also be possible for other entities fulfilling the criteria laid down in the Financial Regulation to act as implementing partners.

(29)  In selecting implementing partners for the deployment of the InvestEU Fund, the Commission should consider the counterpart's capacity and potential to fulfil the objectives of the InvestEU Fund and contribute its own resources, in order to ensure adequate geographical coverage and diversification, to crowd-in private investors and to provide sufficient risk diversification as well as new solutions to address market failures and sub-optimal investment situations. Given its role under the Treaties, its capacity to operate in all Member States and the existing experience under the current financial instruments and the EFSI, the European Investment Bank (‘EIB’) Group should remain a privileged implementing partner under the InvestEU Fund's EU compartment. In addition to the EIB Group, national or regional promotional banks or institutions should be able to offer a complementary financial product range given that their experience and capabilities at regional level could be beneficial for the maximisation of the impact of public funds on the territory of the Union, combining the characteristics of their financial products with the requirements of the fund. Moreover, it should be possible to have other international financial institutions as implementing partners, in particular when they present a comparative advantage in terms of specific expertise and experience in certain Member States. It should also be possible for other entities fulfilling the criteria laid down in the Financial Regulation to act as implementing partners.

Amendment    35

Proposal for a regulation

Recital 30

Text proposed by the Commission

Amendment

(30)  In order to ensure that interventions under the EU compartment of the InvestEU Fund focus on market failures and sub-optimal investment situations at Union level, but, at the same time, satisfy the objectives of best possible geographic outreach, the EU guarantee should be allocated to implementing partners, which alone or together with other implementing partners, can cover at least three Member States. However, it is expected that around 75 % of the EU guarantee under the EU compartment would be allocated to implementing partner or partners that can offer financial products under the InvestEU Fund in all Member States.

(30)  In order to ensure that interventions under the EU compartment of the InvestEU Fund focus on market failures and sub-optimal investment situations at Union level, but, at the same time, satisfy the objectives of best possible geographic outreach, the EU guarantee should be allocated to implementing partners, which alone or together with other implementing partners, can cover at least two Member States. However, it is expected that around 75 % of the EU guarantee under the EU compartment would be allocated to implementing partner or partners that can offer financial products under the InvestEU Fund in all Member States.

Amendment    36

Proposal for a regulation

Recital 31

Text proposed by the Commission

Amendment

(31)  The EU guarantee under the Member State compartment should be allocated to any implementing partner eligible according to [Article 62(1)(c)] of the [Financial Regulation], including national or regional promotional banks or institutions, the EIB, the European Investment Fund and other multilateral development banks. When selecting implementing partners under the Member State compartment, the Commission should take into account the proposals made by each Member State. In accordance with [Article 154] of the [Financial Regulation], the Commission must carry out an assessment of the rules and procedures of the implementing partner to ascertain that they provide a level of protection of the financial interest of the Union equivalent to the one provided by the Commission.

(31)  The EU guarantee under the Member State compartment should be allocated to any implementing partner eligible according to [Article 62(1)(c)] of the [Financial Regulation], including national or regional promotional banks or institutions, the EIB, the European Investment Fund and other multilateral development banks. Where the deployment of the Member State compartment is to target policy actions already addressed by the EU through similar financing and investment operations, the Member State compartment and the EU compartment should have the same implementing partners. When selecting implementing partners under the Member State compartment, the Commission should take into account the proposals made by each Member State. In accordance with [Article 154] of the [Financial Regulation], the Commission must carry out an assessment of the rules and procedures of the implementing partner to ascertain that they provide a level of protection of the financial interest of the Union equivalent to the one provided by the Commission. The evaluation should ensure limited bureaucratic barriers and costs that do not affect return on investment and influence rates.

Amendment    37

Proposal for a regulation

Recital 35

Text proposed by the Commission

Amendment

(35)  The InvestEU Advisory Hub should support the development of a robust pipeline of investment projects in each policy window. In addition, a cross-sectoral component under the InvestEU Programme should be foreseen to ensure a single-entry point and cross-policy project development assistance for centrally managed Union programmes.

(35)  The InvestEU Advisory Hub should support the development of a robust pipeline of investment projects in each policy window providing for effective implementation of geographic diversification with a view to contributing to the Union objective of economic, social, and territorial cohesion and reducing regional disparities. The Advisory Hub should pay particular attention to the necessity of aggregating small projects and bundle them into larger portfolios. In addition, a cross-sectoral component under the InvestEU Programme should be foreseen to ensure a single-entry point and cross-policy project development assistance for centrally managed Union programmes.

Amendment    38

Proposal for a regulation

Recital 36

Text proposed by the Commission

Amendment

(36)  In order to ensure a wide geographic outreach of the advisory services across the Union and to successfully leverage local knowledge about the InvestEU Fund, a local presence of the InvestEU Advisory Hub should be ensured, where needed, taking into account existing support schemes, with a view to provide tangible, proactive, tailor-made assistance on the ground.

(36)  In order to ensure a wide geographic outreach of the advisory services across the Union and to successfully leverage local knowledge about the InvestEU Fund, a presence of the InvestEU Advisory Hub should be ensured in every Member State, with a particular focus on ensuring a presence in regions that face difficulties in developing projects under the InvestEU Fund, taking into account existing support schemes, with a view to provide tangible, proactive, tailormade assistance on the ground. The expertise of national promotional banks in generating, bundling and financing projects should be pooled into advisory hubs and their role as implementing partners should continue to be valued.

Amendment    39

Proposal for a regulation

Recital 37 a (new)

Text proposed by the Commission

Amendment

 

(37a)  Given the positive track record of national promotional banks in generating, bundling and financing projects, for example on small scale energy efficiency and renewable energy projects on a local and regional level, their expertise should be pooled into advisory hubs and their role as implementing partners should continue to be valued.

Amendment    40

Proposal for a regulation

Recital 47 a (new)

Text proposed by the Commission

Amendment

 

(47a)  The programme should be accessible to beneficiaries thanks to greater publicity and transparency, including on the part of financial and banking intermediaries. There is therefore a need for more information and constant monitoring of the implementation of the actions.

Amendment    41

Proposal for a regulation

Article 1 – paragraph 1

Text proposed by the Commission

Amendment

This Regulation establishes the InvestEU Fund providing for an EU guarantee for financing and investment operations carried out by the implementing partners in support of the Union’s internal policies.

This Regulation establishes the InvestEU Fund providing for an EU guarantee for financing and investment operations carried out by the implementing partners in support of the Union’s internal policies, and in particular of the climate change and SDGs goals, in line with the target of a transition to a net-zero GHG emission economy at the latest by 2050.

Amendment    42

Proposal for a regulation

Article 2 – paragraph 1 – point 1

Text proposed by the Commission

Amendment

(1)  'blending operations' means operations supported by the Union budget combining non-repayable forms of support or repayable support or both from the Union budget with repayable forms of support from development or other public finance institutions, as well as from commercial finance institutions and investors; for the purposes of this definition, Union programmes financed from sources other than the Union budget, such as the EU Emissions Trading System (ETS) Innovation Fund, can be assimilated to Union programmes financed by the Union budget;

(1)  ‘additionality’ means additionality as defined in Article 8a (new).

Amendment    43

Proposal for a regulation

Article 2 – paragraph 1 – point 1 a (new)

Text proposed by the Commission

Amendment

 

(1 a)  "Efficiency first principle” means the prioritisation, in all energy planning, policy and investment decisions, of measures to make energy demand and energy supply more efficient, by means of cost-optimal energy end-use savings, demand-side response initiatives and more efficient conversion, transmission and distribution of energy.

Amendment    44

Proposal for a regulation

Article 2 – paragraph 1 – point 17 a (new)

Text proposed by the Commission

Amendment

 

(17a)  'EIB' means the European Investment Bank, the European Investment Fund or any subsidiary of the European Investment Bank;

Amendment    45

Proposal for a regulation

Article 2 – paragraph 1 – point 17 b (new)

Text proposed by the Commission

Amendment

 

(17b)  ‘additionality’ means additionality as defined in Article 8a(new).

Amendment    46

Proposal for a regulation

Article 3 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a)  the competitiveness of the Union, including innovation and digitisation;

(a)  the competitiveness of the Union, including research, innovation and digitisation;

Amendment    47

Proposal for a regulation

Article 3 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b)  the sustainability of the Union economy and its growth;

(b)  the sustainable growth of the Union economy, aiming towards the achievement of the UN Sustainable Development Goals and the objectives of the Paris Climate Agreement;

Amendment    48

Proposal for a regulation

Article 3 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b)  to support financing and investment operations in research, innovation and digitisation;

(b)  to support financing and investment operations in research, innovation and digitisation in all policy windows, including support for the upscaling of innovative companies and bringing technologies to market;

Amendment    49

Proposal for a regulation

Article 3 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c)  to increase the access to and the availability of finance for SMEs and, in duly justified cases, for small mid-cap companies;

(c)  to increase and simplify the access to and the availability of finance for, and to enhance the global competitiveness of, innovative start-ups, SMEs including micro-enterprises and, in duly justified cases, for small mid-cap companies;

Amendment    50

Proposal for a regulation

Article 3 – paragraph 2 – point d a (new)

Text proposed by the Commission

Amendment

 

(d a)  to contribute to an overall target of at least 30% of the EU budget expenditures that must support climate objectives, and to increase investment in climate mitigation and adaption, particularly the EU’s 2030 climate and Energy targets monitored by Regulation EU (XX) [Governance of the Energy Union] by ensuring at least 40% of the InvestEU fund contributes to climate objectives.

Amendment    51

Proposal for a regulation

Article 4 – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

The EU guarantee for the purposes of the EU compartment referred to in point (a) of Article 8(1) shall be EUR 38 000 000 000 (current prices). It shall be provisioned at the rate of 40 %.

The EU guarantee for the purposes of the EU compartment referred to in point (a) of Article 8(1) shall be EUR 38 000 000 000 (constant prices), of which at least EUR 28 500 000 000 shall be allocated to the EIB Group. It shall be provisioned at the rate of 35 %. The EIB shall:

 

- As an implementing partner grant access to its allocation of the EU Guarantee for national and regional promotional banks;

 

- establish a structural dialogue with national and regional promotional banks for the development and implementation of financial instruments and projects;

 

- report annually to the European Parliament on the functioning of the guarantee, the contribution to the objectives set out in article 3, and its cooperation with national and regional actors.

 

The Commission shall assess the share given to the EIB group at a midterm review no later than December 2024 and propose a change of up to 10 %, if necessary.

Amendment    52

Proposal for a regulation

Article 4 – paragraph 1 – subparagraph 2 a (new)

Text proposed by the Commission

Amendment

 

The projects to be financed with the additional amount shall be dedicated exclusively for actions eligible under the eligibility criteria in the Rules of the Union programme under which the amount has been transferred and the InvestEU programme shall aim to also cover the highest risk tranche.

Amendment    53

Proposal for a regulation

Article 4 – paragraph 3

Text proposed by the Commission

Amendment

3.  The financial envelope for the implementation of the measures provided in Chapters V and VI shall be EUR 525 000 000 (current prices).

3.  The financial envelope for the implementation of the measures provided in Chapters V and VI shall be EUR 725 000 000 (current prices).

Amendment    54

Proposal for a regulation

Article 4 – paragraph 4

Text proposed by the Commission

Amendment

4.  The amount referred to in paragraph 3 may also be used for technical and administrative assistance for the implementation of the InvestEU Programme, such as preparatory, monitoring, control, audit and evaluation activities including corporate information technology systems.

4.  The amount referred to in paragraph 3 may also be used for technical and administrative assistance for the implementation of the InvestEU Programme, such as preparatory, monitoring, control, audit and evaluation activities including corporate information technology systems. Such use shall have the aim of reducing administrative burden for beneficiaries and shall not exceed 5% of the value of the financial envelope defined in paragraph 1.

Amendment    55

Proposal for a regulation

Article 6 – paragraph 2 – point a

Text proposed by the Commission

Amendment

(a)  be consistent with the policy objectives and comply with the eligibility criteria set out in the rule on the Union programme under which the support is decided;

(a)  be consistent with the policy objectives and comply with the eligibility criteria set out in the rule on the Union programme under which the support is decided; not a single financing or investment operation covered by the EU guarantee may undermine or go against the implementation of the SDGs, the EU’s commitments in the Paris Agreement, the EU's 2030 climate and energy objectives and the achievement of a net-zero greenhouse gas emissions economy by 2050;

Amendment    56

Proposal for a regulation

Article 7 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1.  The InvestEU Fund shall operate through the following four policy windows that shall address market failures or sub-optimal investment situations within their specific scope:

1.  The InvestEU Fund shall operate through the following four policy windows that shall address market failures or sub-optimal investment situations within their specific scope, and where relevant shall draw from experience gained under financial instruments that have been operational under the previous multiannual financial framework:

Amendment    57

Proposal for a regulation

Article 7 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a)  sustainable infrastructure policy window: comprises sustainable investment in the areas of transport, energy, digital connectivity, supply and processing of raw materials, space, oceans and water, waste, nature and other environment infrastructure, equipment, mobile assets and deployment of innovative technologies that contribute to the environmental or social sustainability objectives of the Union, or to both, or meet the environmental or social sustainability standards of the Union;

(a)  sustainable infrastructure policy window: comprises sustainable investment in the areas of transport, including multimodal transport, road safety, tourism, energy, in particular the increased deployment of renewable energy, energy efficiency in line with the 2030 and 2050 energy frameworks, improving interconnection levels, digital connectivity and access including in rural areas, supply and processing of raw materials, space, oceans, inland water, waste avoidance and the circular economy, nature and other environment infrastructure, equipment, mobile assets and deployment of innovative technologies that contribute to the environmental or social sustainability objectives of the Union, or to both, and meet the environmental or social sustainability standards of the Union;

Amendment    58

Proposal for a regulation

Article 7 – paragraph 1 – point a a (new)

Text proposed by the Commission

Amendment

 

(aa)  Renovation and maintenance infrastructure sub window: comprises of sustainable investments in:

 

- Renovation of rail and road bridges and tunnels for the sake of their safety;

 

- Buildings renovation projects focused on energy savings, deployment of decentralised renewable energy and the integration of buildings into a connected energy, storage, digital and transport system;

Amendment    59

Proposal for a regulation

Article 7 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b)  research, innovation and digitisation policy window: comprises research and innovation activities, transfer of research results to the market, demonstration and deployment of innovative solutions and support to scaling up of innovative companies other than SMEs as well as digitisation of Union industry;

(b)  research, innovation and digitisation policy window: comprises research, product development and innovation activities, transfer of technologies and research results to the market, supporting market enablers and cooperation between enterprises, demonstration and deployment of innovative solutions and support to scaling up of innovative companies including start-ups and SMEs as well as digitisation of Union industry, based on the experiences gained, in particular with the InnovFin;

Amendment    60

Proposal for a regulation

Article 7 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c)  SMEs policy window: access to and availability of finance for SMEs and, in duly justified cases, for small mid-cap companies;

(c)  SMEs policy window: simplified access to and availability of finance for start-us, SMEs, including innovative ones, and, in duly justified cases, for small mid-cap companies, in particular to improve global competitiveness, innovation, digitisation and sustainability;

Amendment    61

Proposal for a regulation

Article 7 – paragraph 1 – point d

Text proposed by the Commission

Amendment

(d)  social investment and skills policy window: comprises microfinance, social enterprise finance and social economy; skills, education, training and related services; social infrastructure (including social and student housing); social innovation; health and long-term care; inclusion and accessibility; cultural activities with a social goal; integration of vulnerable people, including third country nationals.

(d)  social investment and skills policy window: comprises microfinance, social enterprise finance, female entrepreneurship and social economy; skills, education, training and related services, including student loans; social infrastructure (including social and student housing); social innovation; health and long-term care; inclusion and accessibility; cultural activities in particular with a social goal; integration of vulnerable people, including third country nationals.

Amendment    62

Proposal for a regulation

Article 7 – paragraph 3 – subparagraph 1

Text proposed by the Commission

Amendment

Financing and investment operations under the sustainable infrastructure policy window referred to in point (a) of paragraph (1) shall be subject to climate, environmental and social sustainability proofing with a view to minimise detrimental impacts and maximise benefits on climate, environment and social dimension. For that purpose, promoters requesting financing shall provide adequate information based on guidance to be developed by the Commission. Projects below a certain size defined in the guidance shall be excluded from the proofing.

Financing and investment operations under the sustainable infrastructure policy window referred to in point (a) of paragraph (1) shall be subject to climate, environmental and social sustainability proofing with a view to minimise detrimental impacts and maximise benefits on climate, environment and social dimension. For that purpose, promoters requesting financing shall provide adequate information based on guidance to be developed by the Commission, in form of a delegated act and taking into account the criteria established by the [Regulation on the establishment of a framework to facilitate sustainable investment COM(2018)353] to determine whether an economic activity is environmentally sustainable. Where appropriate projects below a certain size defined in the guidance may be exempted from the proofing.

Amendment    63

Proposal for a regulation

Article 7 – paragraph 3 – subparagraph 2 – point a

Text proposed by the Commission

Amendment

a)  as regards adaptation, ensure the resilience to the potential adverse impacts of climate change through a climate vulnerability and risk assessment, including relevant adaptation measures, and, as regards mitigation, integrate the cost of greenhouse gas emissions and the positive effects of climate mitigation measures in the cost-benefit analysis;

a)  as regards adaptation, ensure the resilience to the potential adverse impacts of climate change through a climate vulnerability and risk assessment, including relevant adaptation measures, and, as regards mitigation, integrate the cost of greenhouse gas emissions and the positive effects of climate mitigation measures in the cost-benefit analysis and ensure compliance with the EU environmental objectives and standards;

Amendment    64

Proposal for a regulation

Article 7 – paragraph 3 – subparagraph 2 – point b a (new)

Text proposed by the Commission

Amendment

 

b a)  estimate the impact on employment and good quality job creation;

Amendment    65

Proposal for a regulation

Article 7 – paragraph 4

Text proposed by the Commission

Amendment

4.  Implementing partners shall provide the information necessary to allow the tracking of investment that contributes to meeting the Union objectives on climate and environment, based on guidance to be provided by the Commission.

4.  Implementing partners shall provide the information necessary to allow the tracking of investment that contributes to meeting the Union objectives on climate and environment, based on guidance to be provided by the Commission and assess where appropriate compliance of operations with the Regulation on the establishment of a framework to facilitate sustainable investment (COM(2018)353);

Amendment    66

Proposal for a regulation

Article 7 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

 

4 a.  The SMEs policy window shall offer support also to beneficiaries that were supported by the different EU guarantee facilities merged under InvestEU, in particular the Cultural and Creative Sectors Guarantee Facility from the Creative Europe Programme.

Amendment    67

Proposal for a regulation

Article 7 – paragraph 5

Text proposed by the Commission

Amendment

5.  Implementing partners shall target that at least 50 % of the investment under the sustainable infrastructure policy window contribute to meeting the Union objectives on climate and environment.

5.  Implementing partners shall target that:

 

- at least 65% of the investment under the sustainable infrastructure policy window significantly contribute to meeting the Union objectives on climate and environment, in line with the Paris Agreement;

 

- at least 35% of the investment under the research, innovation and digitisation policy window contribute to Horizon Europe Objectives;

 

- a significant share of the guarantee offered to SMEs and small mid-caps under the SME policy window should support innovative SMEs;

 

- at least 30% of the investment under the social investment and skills policy window contribute to the objectives of Horizon Europe and Erasmus+;

 

The Commission together with implementing partners shall seek that the part of the budgetary guarantee used for the SIW is distributed aiming at a balance between the actions in the different areas.

Amendment    68

Proposal for a regulation

Article 8 a (new)

Text proposed by the Commission

Amendment

 

Article 8 a

 

Additionality

 

1. For the purposes of this Regulation, ‘additionality’ means the support by the InvestEU Fund of operations which address market failures or sub-optimal investment situations, including long-term return on investments or higher risk financing needs for projects delivering long term environmental and societal benefits, and which could not have been carried out during the period in which the EU guarantee can be used, or not to the same extent, by implementing partners without InvestEU Fund support. Projects supported by the InvestEU Fund shall support the objectives laid down in Article 3.

 

2. Without prejudice to the requirement to meet the definition of additionality as set out in the first subparagraph, the following elements are strong indications of additionality:

 

- projects proposed that carry a risk corresponding to EIB special activities, as defined in Article 16 of the EIB Statute, or an equivalent level of risk, especially if such projects present country-, sector- or region-specific risks, in particular those experienced in less developed regions and transition regions and/or if such projects present risks associated with innovation, in particular in growth-,sustainability- and productivity-enhancing unproven technologies;

 

- projects proposed by implementing partners considered by the Investment Committee to carry a level of risk equivalent to that described in the first indent of this subparagraph.

Amendment    69

Proposal for a regulation

Article 9 – paragraph 1

Text proposed by the Commission

Amendment

1.  Amounts allocated by a Member State under Article [10(1)] of Regulation [[CPR] number] or Article [75(1)] of Regulation [[CAP plan] number] shall be used for the provisioning of the part of the EU guarantee under the Member State compartment covering financing and investment operations in the Member State concerned.

1.  In line with Article 21 of Regulation (EU) XX [... Common Provisions Regulation], Member States or regions, as applicable and on a voluntary basis, may request the transfer of parts of their financial allocations to InvestEU. Transferred resources shall be implemented in accordance with the rules of InvestEU. Amounts allocated by a Member State under Article [10(1)] of Regulation [[CPR] number] or Article [75(1)] of Regulation [[CAP plan] number] shall be used for the provisioning of the part of the EU guarantee under the Member State compartment covering financing and investment operations in the Member State concerned.

Amendment    70

Proposal for a regulation

Article 9 – paragraph 2 – subparagraph 1

Text proposed by the Commission

Amendment

The establishment of that part of the EU guarantee under the Member State compartment shall be subject to the conclusion of a contribution agreement between the Member State and the Commission.

The establishment of that part of the EU guarantee under the Member State compartment shall be subject to the conclusion of a contribution agreement between the Member State, or the region, through the Member State, and the Commission.

Amendment    71

Proposal for a regulation

Article 9 – paragraph 3 – point a

Text proposed by the Commission

Amendment

a)  the overall amount of the part of the EU guarantee under the Member State compartment pertaining to the Member State, its provisioning rate, the amount of the contribution from Funds under shared management, the constitution phase of the provisioning in accordance with an annual financial plan and the amount of the resulting contingent liability to be covered by a back-to-back guarantee provided by the Member State concerned;

a)  the overall amount of the part of the EU guarantee under the Member State compartment pertaining to the Member State or region, its provisioning rate, the amount of the contribution from Funds under shared management, the constitution phase of the provisioning in accordance with an annual financial plan and the amount of the resulting contingent liability to be covered by a back-to-back guarantee provided by the Member State concerned;

Amendment    72

Proposal for a regulation

Article 9 – paragraph 3 – point c

Text proposed by the Commission

Amendment

c)  the implementing partner or partners which have expressed their interest and the obligation of the Commission to inform the Member State about the implementing partner or partners selected;

c)  the implementing partner or partners which have expressed their interest and the obligation of the Commission to inform the Member State and, if applicable, the regional authority, about the implementing partner or partners selected;

Amendment    73

Proposal for a regulation

Article 9 – paragraph 3 – point e

Text proposed by the Commission

Amendment

e)  the annual reporting obligations towards the Member State, including reporting in accordance with the indicators referred to in the contribution agreement;

e)  the annual reporting obligations towards the Member State or region if applicable, including reporting in accordance with the indicators referred to in the contribution agreement;

Amendment    74

Proposal for a regulation

Article 9 – paragraph 5 – point c

Text proposed by the Commission

Amendment

(c)  the Commission shall immediately inform the Member State where, as a result of calls on that part of the EU guarantee under the Member State compartment, the level of provisions for that part of the EU guarantee falls below 20 % of the initial provisioning;

(c)  the Commission shall immediately inform the Member State or region if applicable, where, as a result of calls on that part of the EU guarantee under the Member State compartment, the level of provisions for that part of the EU guarantee falls below 20 % of the initial provisioning;

Amendment    75

Proposal for a regulation

Article 9 – paragraph 5 – point d

Text proposed by the Commission

Amendment

(d)  if the level of provisions for that part of the EU guarantee under the Member State compartment reaches 10 % of the initial provisioning, the Member State concerned shall provide to the common provisioning fund up to 5 % of the initial provisioning upon request by the Commission.

(d)  if the level of provisions for that part of the EU guarantee under the Member State compartment reaches 10 % of the initial provisioning, the Member State or region concerned shall provide to the common provisioning fund up to 5 % of the initial provisioning upon request by the Commission.

Amendment    76

Proposal for a regulation

Article 10 – paragraph 2

Text proposed by the Commission

Amendment

2.  Support of the EU guarantee may be granted for financing and investment operations covered by this Regulation for an investment period ending on 31 December 2027. Contracts between the implementing partner and the final recipient or the financial intermediary or other entity referred to in Article 13(1)(a) shall be signed by 31 December 2028.

2.  Support of the EU guarantee may be granted for financing and investment operations covered by this Regulation for an investment period ending on 31 December 2027. This support must entail higher provisioning rates for SMEs which show that they are facing objective difficulties in gaining access to credit. Contracts between the implementing partner and the final recipient or the financial intermediary or other entity referred to in Article 13(1)(a) shall be signed by 31 December 2028.

Amendment    77

Proposal for a regulation

Article 11 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a)  comply with the conditions set out in [points (a) to (e) of Article 209(2)] of [the Financial Regulation], in particular with the additionality requirement set out in [point (b) of Article 209(2)] of [the Financial Regulation] and, where appropriate, maximising private investment in accordance with [point (d) of Article 209(2)] of the [Financial Regulation];

(a)  comply with the conditions set out in [points (a) to (e) of Article 209(2)] of [the Financial Regulation], in particular by realising additionality as set out in Article [8a], achieving a leverage and multiplier effect by mobilising a global investment exceeding the size of the Union guarantee, and where appropriate, maximising private investment in accordance with [point (d) of Article 209(2)] of the [Financial Regulation];

Amendment    78

Proposal for a regulation

Article 11 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b)  contribute to the Union policy objectives and fall under the scope of the areas eligible for financing and investment operations under the appropriate window in accordance with Annex II to this Regulation; and

(b)  contribute to, complement and are consistent with Union policy objectives, particularly those related to Union climate and environmental objectives, and fall under the scope of the areas eligible for financing and investment operations under the appropriate window in accordance with Annex II to this Regulation; and

Amendment    79

Proposal for a regulation

Article 11 – paragraph 1 – point c a (new)

Text proposed by the Commission

Amendment

 

(c a)  are technically viable from an environmental and social point of view , in accordance with the eligibility criteria set out in Annex II of this regulation.

Amendment    80

Proposal for a regulation

Article 11 – paragraph 1 – point c b (new)

Text proposed by the Commission

Amendment

 

(c b)  The InvestEU fund shall not support activities related to fossil fuels, unless such activities are duly justified on the grounds that they contribute to or facilitate the achievement of the objectives of the Energy Union, namely Energy Security, the Integration of the internal Energy Market, enhancing the efficiency of energy use, decarbonisation of the economy in line with the Paris Agreement, and technological breakthroughs in low-carbon and clean technologies driving the energy transition and improving competitiveness.

Amendment    81

Proposal for a regulation

Article 11 – paragraph 3 – point c

Text proposed by the Commission

Amendment

(c)  a third country referred to in point (a) of paragraph 2, where applicable;

(c)  a third country referred to in point (a) of paragraph 2, where applicable, and which respects human rights;

Amendment    82

Proposal for a regulation

Article 12 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

For the EU compartment, the eligible counterparts shall have expressed their interest and shall be able to cover financing and investment operations in at least three Member States. The implementing partners may also cover together financing and investment operations in at least three Member States by forming a group.

For the EU compartment, the eligible counterparts shall have expressed their interest and shall be able to cover financing and investment operations in at least three Member States. The implementing partners may also cover together financing and investment operations in at least two Member States by forming a group. This criteria is also fulfilled when the implementing partners identify a common market failure in their respective markets and address this market failure or suboptimal investment situation with locally adapted, but similar instruments.

Amendment    83

Proposal for a regulation

Article 12 – paragraph 1 – subparagraph 4 a (new)

Text proposed by the Commission

Amendment

 

Where the deployment of the Member State compartment is to target policy actions already addressed by the EU compartment through similar financing and investment operations, the Member State compartment and the EU compartment shall have the same implementing partners.

Amendment    84

Proposal for a regulation

Article 12 – paragraph 2 – point d

Text proposed by the Commission

Amendment

(d)  achieves geographical diversification;

(d)  achieves geographical diversification by Member State and by region;

Amendment    85

Proposal for a regulation

Article 12 – paragraph 2 – point e

Text proposed by the Commission

Amendment

(e)  provides sufficient risk diversification;

(e)  provides sufficient risk diversification while avoiding excessive financial risk operations;

Amendment    86

Proposal for a regulation

Article 12 – paragraph 2 – point f a (new)

Text proposed by the Commission

Amendment

 

(f a)  achieves additionality as laid out in Article 8a.

Amendment    87

Proposal for a regulation

Article 14 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

1a.  National Promotional Banks and Institutions are also financial institutions with the corresponding rules and procedures. It must be ensured that the requirements of [Article 154] of the [Financial Regulation] are proportionate to their size and/or geographical scope. Existing data, supervisory processes and State aid should be taken into account.

Justification

The European Commission proposed the inclusion of such 'NPBIs' as 'implementing partners', and they can hardly pass the 'pillar assessment' provided for by [Article 154] of [the Financial Regulation] and satisfy the criterion of at least three Member States.

Amendment    88

Proposal for a regulation

Chapter 4 a (new)

Text proposed by the Commission

Amendment

 

All bodies participating in the decision-making and selection of projects shall act according to the principles of transparency, accountability and guaranteed stakeholder participation, including from civil society organisations. They should be composed of independent experts from various technical backgrounds, including climate experts, and aim for gender balance. Information on projects, selection procedure and decision-making shall be published, while respecting commercially sensitive information.

 

(This amendment shall serve as introduction to the chapter and apply thus to Articles 17-19. It shall appear before Article 17 in the text.)

Amendment    89

Proposal for a regulation

Article 16 a (new)

Text proposed by the Commission

Amendment

 

Article 16a

 

Governance

 

All bodies participating in the Governance of the InvestEU Programme, as set out in Articles 17, 18 and 19 of this Regulation, shall act according to the principles of transparency, accountability and will ensure stakeholder participation, in particular, where relevant, from co-investors, public authorities, experts, education, training and research institutions, the relevant social partners and representatives of civil society. They should be composed of relevant independent experts and aim for gender balance. Information on projects and decision-making shall be published, while respecting commercially sensitive information.

Amendment    90

Proposal for a regulation

Article 17 – paragraph 1

Text proposed by the Commission

Amendment

1.  The Commission shall be advised by an advisory board which shall have two configurations, namely representatives of implementing partners and representatives of Member States.

1.  The Steering Committee shall be advised by an advisory board which shall have two configurations, namely representatives of implementing partners and representatives of Member States.

Amendment    91

Proposal for a regulation

Article 17 – paragraph 5 – point a – point ii

Text proposed by the Commission

Amendment

(ii)  provide advice to the Commission about market failures and sub-optimal investment situations and market conditions;

(ii)  provide advice to the Steering Committee about market failures and sub-optimal investment situations and market conditions;

Amendment    92

Proposal for a regulation

Article 17 a (new)

Text proposed by the Commission

Amendment

 

Article 17 a

 

Steering Committee

 

1. The InvestEU fund shall be governed by a Steering Committee which, for the purpose of the use of the EU guarantee, is to determine, in conformity with the general objectives set out in Article 3.

 

2. The Steering Committee shall:

 

(a) comprise of seven members: three appointed by the Commission, one by the advisory board in its configuration of the representatives of the implementing partners, one by the European Investment Bank, and two experts appointed as non-voting members by the European Parliament. The appointed experts shall not seek or take instructions from Union institutions, bodies, offices or agencies, from any Member State government or from any other public or private body and shall act in full independence. The experts shall perform their duties impartially and in the interest of the InvestEU Fund;

 

(b) elect a Chairperson from among its voting members for a fixed term of three years, renewable once;

 

(c) discuss and take the utmost possible account of the positions of all members. If the members cannot converge in their positions, the steering committee shall take its decisions by unanimous vote among its voting members. The minutes of the steering committee meetings shall provide a substantive account of the positions of all members.

 

3. The steering committee shall ensure that the strategic orientation of InvestEU is in line with the objectives set out in Article 3, and that the proposed financing and investment operations by the implementing partners comply with Union law and policies. When carrying out its tasks under this Regulation, the steering committee shall pursue only the objectives set out in this Regulation.

 

4. The Steering Committee shall determine the operating policies and procedures necessary for the functioning of InvestEU and the rules applicable to the operations with investment platforms and national promotional banks or institutions.

 

5. The Steering Committee shall prepare the scoreboard on the proposed financing and investment operations for the Investment Committee.

 

The scoreboard shall, in particular, contain an assessment of: (a) the risk profile of the proposed financing and investment operations;

 

(b) the benefit for final recipients;

 

(c) the respect of the eligibility criteria.

 

Each implementing partner shall provide adequate and harmonised information to the Steering Committee in order for it to be able to prepare the scoreboard.

 

6. The Steering Committee shall regularly organise a consultation of relevant stakeholders - in particular co-investors, public authorities, experts, education, training and research institutions, the relevant social partners and representatives of civil society - on the orientation and implementation of the investment policy carried out under this regulation.

Amendment    93

Proposal for a regulation

Article 18

Text proposed by the Commission

Amendment

Article 18

deleted

Project team

 

1.  A project team consisting of experts, put at the disposal of the Commission by the implementing partners free of charge for the Union budget, shall be established.

 

2.  Each implementing partner shall assign experts to the project team. The number of the experts shall be established in the guarantee agreement.

 

3.  The Commission shall confirm whether the proposed financing and investment operations by the implementing partners comply with Union law and policies.

 

4.  Subject to the confirmation by the Commission referred to in paragraph 3, the project team shall perform a quality control of the due diligence of the proposed financing and investment operations carried out by the implementing partners. Financing and investment operations shall be then submitted to the Investment Committee for approval of the coverage by the EU guarantee.

 

The project team shall prepare the scoreboard on the proposed financing and investment operations for the Investment Committee.

 

The scoreboard shall, in particular, contain an assessment of:

 

(a)  the risk profile of the proposed financing and investment operations;

 

(b)  the benefit for final recipients;

 

(c)  the respect of the eligibility criteria.

 

Each implementing partner shall provide adequate and harmonised information to the project team in order for it to be able to carry out its risk analysis and prepare the scoreboard.

 

5.  A project team expert shall not assess the due diligence or appraisal relating to a potential financing or investment operation submitted by the implementing partner that has put the expert at the disposal of the Commission. That expert shall also not prepare the scoreboard in relation to those proposals.

 

6.  Each project team expert shall declare to the Commission any conflict of interest and shall communicate without delay to the Commission all information needed to check on an ongoing basis the absence of any conflict of interest.

 

7.  The Commission shall lay down detailed rules for the functioning of the project team and for the verification of conflict of interest situations.

 

8.  The Commission shall lay down detailed rules for the scoreboard to enable the Investment Committee to approve the use of the EU guarantee for a proposed financing or investment operation.

 

Amendment    94

Proposal for a regulation

Article 19 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b)  verify their compliance with this Regulation and the relevant investment guidelines, giving particular attention to the additionality requirement referred to in [Article 209(2)(b)] of the [Financial Regulation] and to the requirement to crowd in private investment referred to in [Article 209(2)(d)] of the [Financial Regulation]; and

(b)  verify their compliance with this Regulation and the relevant investment guidelines, giving particular attention to the additionality requirement referred to in [Article 209(2)(b)] of the [Financial Regulation], the sustainability proofing referred to in Article 7(3), and to the requirement to crowd in private investment referred to in [Article 209(2)(d)] of the [Financial Regulation]; and

Amendment    95

Proposal for a regulation

Article 19 – paragraph 2 – subparagraph 2

Text proposed by the Commission

Amendment

Each configuration of the Investment Committee shall be composed of six remunerated external experts. The experts shall be selected in accordance with [Article 237] of the [Financial Regulation] and be appointed by the Commission for a fixed term of up to four years. Their term shall be renewable but shall not exceed seven years in total. The Commission may decide to renew the term of office of an incumbent member of the Investment Committee without availing itself of the procedure laid down in this paragraph.

Each configuration of the Investment Committee shall be composed of seven remunerated external experts. The experts shall be selected in accordance with [Article 237] of the [Financial Regulation] and be appointed by the Commission for a fixed term of up to four years. Their term shall be renewable but shall not exceed seven years in total. The Commission may decide to renew the term of office of an incumbent member of the Investment Committee without availing itself of the procedure laid down in this paragraph.

Amendment    96

Proposal for a regulation

Article 19 – paragraph 2 – subparagraph 5

Text proposed by the Commission

Amendment

Four members shall be permanent members of all four configurations of the Investment Committee. In addition, the four configurations shall each have two experts with experience in investment in sectors covered by that policy window. At least one of the permanent members shall have expertise in sustainable investment. The Commission shall assign the Investment Committee members to its appropriate configuration or configurations. The Investment Committee shall elect a chairperson from among its permanent members.

Five members shall be permanent members of all four configurations of the Investment Committee. In addition, the four configurations shall each have two experts with experience in investment in sectors covered by that policy window. At least two of the permanent members shall have expertise in investment in the fields of climate action, environmental protection and management. The Commission shall assign the Investment Committee members to its appropriate configuration or configurations. The Investment Committee shall elect a chairperson from among its permanent members.

Amendment    97

Proposal for a regulation

Article 19 – paragraph 3 – subparagraph 2

Text proposed by the Commission

Amendment

CVs and declarations of interest of each member of the Investment Committee shall be made public and constantly updated. Each member of the Investment Committee shall communicate without delay to the Commission all information needed to check on an ongoing basis the absence of any conflict of interest.

CVs and declarations of interest of each member of the Investment Committee shall be made public and constantly updated. Each member of the Investment Committee shall communicate without delay to the Commission and the Steering Committee all information needed to check on an ongoing basis the absence of any conflict of interest.

Amendment    98

Proposal for a regulation

Article 19 – paragraph 5 – subparagraph 2

Text proposed by the Commission

Amendment

Conclusions of the Investment Committee approving the support of the EU guarantee to a financing or investment operation shall be publicly accessible and shall include the rationale for the approval. The publication shall not contain commercially sensitive information.

Conclusions of the Investment Committee approving the support of the EU guarantee to a financing or investment operation shall be publicly accessible and shall include the rationale for the approval, the criteria applied and the scoreboard of indicators. Particular focus should be given to compliance with the additionality criterion. The publication shall not contain commercially sensitive information.

Amendment    99

Proposal for a regulation

Article 19 – paragraph 5 – subparagraph 3

Text proposed by the Commission

Amendment

The scoreboard shall be publicly available after the signature of a financing or investment operation or sub-project, if applicable. The publication shall not contain commercially sensitive information or personal data not to be disclosed under the Union data protection rules.

The scoreboard shall be publicly available after the signature of a financing or investment operation or sub-project, if applicable. The publication shall not contain commercially sensitive information or personal data not to be disclosed under the Union data protection rules. A rate of the projects rejected over the projects accepted per Member State should be included annually. A justification of acceptance or rejection should be provided for every project.

Amendment    100

Proposal for a regulation

Article 19 – paragraph 5 – subparagraph 4

Text proposed by the Commission

Amendment

Twice a year, the conclusions of the Investment Committee rejecting the use of the EU guarantee shall be transmitted to the European Parliament and to the Council, subject to strict confidentiality requirements.

Twice a year, the conclusions, the criteria applied and the scoreboard indicators related to of the Investment Committee rejecting the use of the EU guarantee shall be transmitted to the European Parliament and to the Council, subject to strict confidentiality requirements.

Amendment    101

Proposal for a regulation

Article 20 – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

The InvestEU Advisory Hub shall provide advisory support for the identification, preparation, development, structuring, procuring and implementation of investment projects, or enhance the capacity of promoters and financial intermediaries to implement financing and investment operations. Its support may cover any stage of the life-cycle of a project or financing of a supported entity, as appropriate.

The InvestEU Advisory Hub shall provide advisory support for the identification, preparation, development, structuring, procuring and implementation of investment projects, or enhance the capacity of promoters and financial intermediaries to implement financing and investment operations. Its support may cover any stage of the life-cycle of a project or financing of a supported entity, as appropriate. Experts in the Advisory Hub will work in close cooperation with the EIB InnovFin Advisory.

Amendment    102

Proposal for a regulation

Article 20 – paragraph 1 – subparagraph 1 a (new)

Text proposed by the Commission

Amendment

 

The InvestEU advisory Hub shall provide information and advisory support at regional and local level, with a particular emphasis on SMEs and start-ups. It will build on the experience already gathered from the European Investments Advisory Hub run under EFSI, and shall include a communication and project development assistance component to build capacity for the development of sustainable projects, and to aggregate smaller projects into larger ones.

Amendment    103

Proposal for a regulation

Article 20 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

The InvestEU Advisory Hub shall be available as a component under each policy window referred to in Article 7(1) covering all the sectors under that window. In addition, cross-sectoral advisory services shall be available.

The InvestEU Advisory Hub shall be available as a component under each policy window referred to in Article 7(1) covering all the sectors under that window, in particular for those contributing to EU climate objectives. In addition, cross-sectoral advisory services shall be available.

Amendment    104

Proposal for a regulation

Article 20 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b)  assisting project promoters, where appropriate, in developing their projects to fulfil the objectives and eligibility criteria set out in Articles 3, 7 and 11 and facilitating development of aggregators for small-scale projects; however, such assistance does not prejudge the conclusions of the Investment Committee on the coverage of the support of the EU guarantee to such projects;

(b)  assisting project promoters, where appropriate, in developing their projects to fulfil the objectives and eligibility criteria set out in Articles 3, 7 and 11 and facilitating development of aggregators for small-scale projects, as well as assist in the formation of thematic and regional investment platforms by providing legal assistance and an appropriate template of an investment platform agreement; however, such assistance does not prejudge the conclusions of the Investment Committee on the coverage of the support of the EU guarantee to such projects;

Amendment    105

Proposal for a regulation

Article 20 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c)  supporting actions and leveraging local knowledge to facilitate the use of the InvestEU Fund support across the Union and contributing actively where possible to the objective of sectorial and geographical diversification of the InvestEU Fund by supporting the implementing partners in originating and developing potential financing and investment operations;

(c)  supporting actions and leveraging local knowledge, particularly in terms of assisting small, medium and micro enterprises, local authorities, entities and communities, and advising on the opportunities available to them in all policy windows, to facilitate the use of the InvestEU Fund support across the Union and contributing actively where possible to the objective of sectorial and geographical diversification of the InvestEU Fund by supporting the implementing partners in originating and developing potential financing and investment operations;

Amendment    106

Proposal for a regulation

Article 20 – paragraph 2 – point f a (new)

Text proposed by the Commission

Amendment

 

(f a)  where applicable proactively advising in line with the energy efficiency first principle as outlined in the Governance of the Energy Union Regulation;

Amendment    107

Proposal for a regulation

Article 20 – paragraph 2 – point f b (new)

Text proposed by the Commission

Amendment

 

(f b)  undertaking communication actions to raise awareness of the available support to project promoters and to financial and other intermediaries provided by the Advisory Hub, and more generally the opportunities available under InvestEU.

Amendment    108

Proposal for a regulation

Article 20 – paragraph 4

Text proposed by the Commission

Amendment

4.  Fees may be charged for the services referred to in paragraph 2 to cover part of the costs for providing those services.

4.  Commensurate fees may be charged for the services referred to in paragraph 2 to cover part of the costs for providing those services.

Amendment    109

Proposal for a regulation

Article 20 – paragraph 6

Text proposed by the Commission

Amendment

6.  The InvestEU Advisory Hub shall have local presence, where necessary. It shall be established in particular in Member States or regions that face difficulties in developing projects under the InvestEU Fund. The InvestEU Advisory Hub shall assist in the transfer of knowledge to the regional and local level with a view to building up regional and local capacity and expertise for support referred to in paragraph 1.

6.  The InvestEU Advisory Hub shall have a presence, in each Member State, with a particular focus on ensuring a presence in regions that face difficulties in developing projects under the InvestEU Fund in order to support the exchange of good practices and information and to increase knowledge of investment opportunities in the regions as well. The Hub shall establish a direct dialogue between businesses, intermediaries and Community institutions. The InvestEU Advisory Hub shall assist in the transfer of knowledge to the regional and local level with a view to building up regional and local capacity and expertise for support referred to in paragraph 1.

Amendment    110

Proposal for a regulation

Article 21 – paragraph 1

Text proposed by the Commission

Amendment

1.  The InvestEU Portal shall be established by the Commission. It shall be an easily accessible and user-friendly project database, providing relevant information for each project.

1.  The InvestEU Portal shall be established by the Commission. It shall provide an easily accessible and user-friendly project database, giving more visibility to projects and allowing investors to identify investment opportunities in their sector or area of interest.

Amendment    111

Proposal for a regulation

Article 22 – paragraph 3

Text proposed by the Commission

Amendment

3.  The performance reporting system shall ensure that data for monitoring implementation and results are collected efficiently, effectively and in a timely manner. To that end, proportionate reporting requirements shall be imposed on implementing partners and other recipients of Union funds, as appropriate.

3.  The performance reporting system shall ensure that data for monitoring implementation and results are collected efficiently, effectively and in a timely manner. To that end, proportionate reporting requirements shall be imposed on implementing partners and other recipients of Union funds, as appropriate. The reporting system shall provide a clear mapping of the policy windows detailed in the eligible areas for financing and investment operations as laid down in Annex II

Justification

A clear mapping of the projects on the basis of the 4 windows and the more detailed areas for financing and investment is important in order to assess properly its performance.

Amendment    112

Proposal for a regulation

Article 22 – paragraph 5

Text proposed by the Commission

Amendment

5.  In addition, each implementing partner shall submit every six months a report to the Commission on the financing and investment operations covered by this Regulation, broken down by the EU compartment and the Member State compartment by Member State, as appropriate. The report shall include an assessment of compliance with the requirements on the use of the EU guarantee and with the key performance indicators laid down in Annex III to this Regulation. The report shall also include operational, statistical, financial and accounting data on each financing and investment operation and at the compartment, policy window and the InvestEU Fund level. One of those reports shall contain the information the implementing partners shall provide in accordance with [Article 155(1)(a)] of the [Financial Regulation].

5.  In addition, each implementing partner shall submit every six months a report to the Commission on the financing and investment operations covered by this Regulation, broken down by the EU compartment and the Member State compartment by Member State, as appropriate. The report shall include an assessment of compliance with the requirements on the use of the EU guarantee and with the key performance indicators laid down in Annex III to this Regulation. The report shall also, where appropriate and proportional, include operational, statistical, financial and accounting data on each financing and investment operation and at the compartment, policy window and the InvestEU Fund level. One of those reports shall contain the information the implementing partners shall provide in accordance with [Article 155(1)(a)] of the [Financial Regulation]. Wherever possible, those reports should be identical to reports already required at national or regional level. The Commission shall compile and assess implementing partners’ reports and submit a summary in the form of public annual reports, providing information on the level of implementation of the programme against its objectives and performance indicators, indicating risks and opportunities for the financing and investment operations supported by the InvestEU programme.

Amendment    113

Proposal for a regulation

Article 22 – paragraph 5 a (new)

Text proposed by the Commission

Amendment

 

5a.  The Commission, shall publish on their web-portal information on financing and investment operations, including information on expected impacts and benefits of the projects, taking into account the protection of confidential and commercially sensitive information. The web-portal shall also provide public access to a registry of eligible counterparts.

 

In accordance with relevant transparency policies and Union rules on data protection and on access to documents and information, the implementing partners and other recipients of Union funds shall proactively and systematically make publicly available on their websites information relating to all financing and investment operations covered by this programme, relating in particular to the manner in which those projects contribute to the achievement of the objectives and requirements of this Regulation. Such information shall always take into account the protection of confidential and commercially sensitive information. Implementing partners shall make public Union support in all information, which they publish on financing and investment operations covered by this programme in accordance with this Regulation.

Amendment    114

Proposal for a regulation

Article 23 – paragraph 2

Text proposed by the Commission

Amendment

2.  By 30 September 2025, the Commission shall carry out an interim evaluation on the InvestEU Programme, in particular on the use of the EU guarantee.

2.  By 31 December 2024, the Commission shall carry out an interim evaluation on the InvestEU Programme, in particular on the use of the EU guarantee.

Amendment    115

Proposal for a regulation

Article 24 – paragraph 1

Text proposed by the Commission

Amendment

Audits on the use of the Union funding carried out by persons or entities, including by others 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].

Audits on the use of the Union funding carried out by the European Court of Auditors together with those performed by persons or entities, including by others 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].

Amendment    116

Proposal for a regulation

Article 27 – paragraph 2

Text proposed by the Commission

Amendment

2.  The Commission shall implement information and communication actions relating to the InvestEU Programme and its actions and results. Financial resources allocated to the InvestEU Programme 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 launch an effective, informative and EU-wide communication strategy to accompany the InvestEU Programme in order increase the visibility of this programme, especially for SMEs, and therefore to attract the best potential projects. Financial resources allocated to the InvestEU Programme 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.

Amendment    117

Proposal for a regulation

Annex I – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

In accordance with Article 4 of this Regulation, this distribution may be modified during the financial year in line with developments in the various objectives referred to in Article 3(2) of this Regulation.

Amendment    118

Proposal for a regulation

Annex II – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

The financing and investment operations may fall under one or more of the following areas:

The financing and investment operations shall fall under one or more of the following areas:

Amendment    119

Proposal for a regulation

Annex II – paragraph 1 – point 1 – point a

Text proposed by the Commission

Amendment

(a)  expansion of the generation, supply or use of clean and sustainable renewable energy;

(a)  expansion of the generation, accelerating the deployment, supply or implementation of clean and sustainable renewable energy solutions; ;

Amendment    120

Proposal for a regulation

Annex II – paragraph 1 – point 1 – point b

Text proposed by the Commission

Amendment

(b)  energy efficiency and energy savings (with a focus on reducing demand through demand-side management and the refurbishment of buildings);

(b)  energy efficiency, energy transition and energy savings (with a focus on reducing demand through demand-side management and the refurbishment of buildings);

Amendment    121

Proposal for a regulation

Annex II – paragraph 1 – point 1 – point c

Text proposed by the Commission

Amendment

(c)  development, smartening and modernisation of sustainable energy infrastructure (transmission and distribution level, storage technologies);

(c)  development, smartening and modernisation of sustainable energy infrastructure (transmission and distribution level, storage technologies, smart grids) and increasing the level of electricity interconnection between Member States;

Amendment    122

Proposal for a regulation

Annex II – paragraph 1 – point 1 – point d

Text proposed by the Commission

Amendment

(d)  production and supply of synthetic fuels from renewable/carbon-neutral sources; alternative fuels;

(d)  production and supply of sustainable synthetic fuels from renewable/carbon-neutral sources, and alternative fuels, in line with the provisions set out in [Renewable Energy Directive 2009/28/EC];

Amendment    123

Proposal for a regulation

Annex II – paragraph 1 – point 1 – point e

Text proposed by the Commission

Amendment

(e)  carbon-capture and -storage infrastructure.

(e)  infrastructure for carbon-capture, and for carbon storage in industrial processes, bio-energy plants and manufacturing facilities towards the energy transition.

Amendment    124

Proposal for a regulation

Annex II – paragraph 1 – point 2 – introductory part

Text proposed by the Commission

Amendment

2.  Development of sustainable transport infrastructures, and equipment and innovative technologies in accordance with Union transport priorities and the commitments taken under the Paris Agreement, in particular through:

2.  Development of sustainable transport infrastructures, innovative mobility solutions and equipment and innovative technologies in accordance with Union transport priorities and the commitments taken under the Paris Agreement, in particular through:

Amendment    125

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point a

Text proposed by the Commission

Amendment

(a)  projects supporting development of the TEN-T infrastructure, including its urban nodes, maritime and inland ports, multimodal terminals and their connection to the main networks;

(a)  projects supporting the sustainable development of the TEN-T infrastructure, including its urban nodes, maritime and inland ports, airports, multimodal terminals and their connection to the main networks;

Amendment    126

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point b

Text proposed by the Commission

Amendment

(b)  smart and sustainable urban mobility projects (targeting low-emission urban transport modes, accessibility, air pollution and noise, energy consumption and accidents);

(b)  smart and sustainable urban mobility projects (targeting zero and low-emission urban transport modes, accessibility, air pollution and noise, energy consumption and road safety);

Amendment    127

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point c

Text proposed by the Commission

Amendment

(c)  supporting the renewal and retrofitting of transport mobile assets with the view of deploying low-emission mobility solutions;

(c)  supporting the renewal and retrofitting of transport mobile assets with the view of deploying zero and low-emission mobility solutions;

Amendment    128

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point d

Text proposed by the Commission

Amendment

(d)  railway infrastructure, other rail projects, and maritime ports;

(d)  railway infrastructure, other rail projects, inland waterways infrastructure and maritime ports;

Amendment    129

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point e

Text proposed by the Commission

Amendment

(e)  alternative fuels infrastructure, including electric charging infrastructure.

(e)  alternative fuels infrastructure in line with the provisions set out in Article 25 of [Renewable Energy Directive 2009/28/EC], including deployment of electric charging infrastructure.

Amendment    130

Proposal for a regulation

Annex II – paragraph 1 – point 3 – point c

Text proposed by the Commission

Amendment

(c)  projects and enterprises in the fields of environmental resource management and clean technologies;

(c)  projects and enterprises in the fields of environmental resource management and sustainable technologies;

Amendment    131

Proposal for a regulation

Annex II – paragraph 1 – point 3 – point f

Text proposed by the Commission

Amendment

(f)  climate change actions, including natural hazard disaster risk reduction;

(f)  climate change actions, including natural hazard disaster risk reduction, climate adaptation and mitigation;

Amendment    132

Proposal for a regulation

Annex II – paragraph 1 – point 3 – point g

Text proposed by the Commission

Amendment

(g)  projects and enterprises that implement circular economy by integrating resource efficiency aspects in the production and product life-cycle, including the sustainable supply of primary and secondary raw materials;

(g)  projects and enterprises that implement circular economy by integrating energy and resource efficiency aspects in the production and product life-cycle, including the sustainable supply and recycling of primary and secondary raw materials;

Amendment    133

Proposal for a regulation

Annex II – paragraph 1 – point 4

Text proposed by the Commission

Amendment

4.  Development of digital connectivity infrastructure, in particular through projects supporting deployment of very high capacity digital networks.

4.  Development of digital connectivity infrastructure, in particular through projects supporting deployment of very high capacity digital networks, 5G connectivity and improving digital connectivity and access, particularly to rural areas and peripheral regions.

Amendment    134

Proposal for a regulation

Annex II – paragraph 1 – point 5 – point a

Text proposed by the Commission

Amendment

(a)  research, including research infrastructure and support to academia, and innovation projects contributing to the objectives of [Horizon Europe];

(a)  support to research infrastructure and research and innovation projects in all thematic areas and defined in, and contributing to the objectives of, Horizon Europe;

Amendment    135

Proposal for a regulation

Annex II – paragraph 1 – point 5 – point b

Text proposed by the Commission

Amendment

(b)  corporate projects;

(b)  corporate projects, including training and the promotion of the creation of clusters and business networks;

Amendment    136

Proposal for a regulation

Annex II – paragraph 1 – point 5 – point d

Text proposed by the Commission

Amendment

(d)  collaboration projects between academia and industry;

(d)  collaborative research and innovation collaboration projects between academia, research and innovation organisations and industry; public-private partnerships and civil society organisations;

Amendment    137

Proposal for a regulation

Annex II – paragraph 1 – point 5 – point f

Text proposed by the Commission

Amendment

(f)  new effective healthcare products, including pharmaceuticals, medical devices and advanced therapy medicinal products.

(f)  new effective and accessible healthcare products, including pharmaceuticals, medical devices, diagnostics and advanced therapy medicinal products, new antimicrobials and innovative development processes that avoid using animal testing.

Amendment    138

Proposal for a regulation

Annex II – paragraph 1 – point 6 – introductory part

Text proposed by the Commission

Amendment

6.  Development and deployment of digital technologies and services, in particular through:

6.  Developmen, deployment and scaling-up of digital technologies and services, in particular through:

Amendment    139

Proposal for a regulation

Annex II – paragraph 1 – point 6 – point a

Text proposed by the Commission

Amendment

(a)  artificial intelligence;

(a)  artificial intelligence in line with the Digital Europe Programme, particularly with regards to ethics;

Amendment    140

Proposal for a regulation

Annex II – paragraph 1 – point 6 – point a a (new)

Text proposed by the Commission

Amendment

 

(a a)  Quantum technology;

Amendment    141

Proposal for a regulation

Annex II – paragraph 1 – point 6 – point f a (new)

Text proposed by the Commission

Amendment

 

(f a)  robotics and automatisation.

Amendment    142

Proposal for a regulation

Annex II – paragraph 1 – point 7 – introductory part

Text proposed by the Commission

Amendment

7.  Financial support to entities employing up to 3 000 employees, with a particular focus on SMEs and small mid-cap companies, in particular through:

7.  Financial support to entities employing up to 3 000 employees. The SME window shall only focus on SMEs and small mid-cap companies, in particular through:

Amendment    143

Proposal for a regulation

Annex II – paragraph 1 – point 7 – point a

Text proposed by the Commission

Amendment

(a)  provision of working capital and investment;

(a)  provision of working capital and investment, particularly relating to actions that drive an entrepreneurial culture and environment and promote the creation and growth of micro, small and medium enterprises ;

Amendment    144

Proposal for a regulation

Annex II – paragraph 1 – point 7 – point b

Text proposed by the Commission

Amendment

(b)  provision of risk financing from seed to expansion stages to ensure technological leadership in innovative and sustainable sectors.

(b)  provision of risk financing from seed to expansion stages to ensure technological leadership in innovative and sustainable sectors, including enhancing their digitisation and innovation capacity, and to ensure their global competitiveness.

Amendment    145

Proposal for a regulation

Annex II – paragraph 1 – point 9

Text proposed by the Commission

Amendment

9.  Tourism.

9.  Sustainable tourism.

Amendment    146

Proposal for a regulation

Annex II – paragraph 1 – point 11 – point a

Text proposed by the Commission

Amendment

(a)  microfinance, social enterprise finance and social economy;

(a)  microfinance, social enterprise finance, female entrepreneurship, promotion of gender equality and social economy;

Amendment    147

Proposal for a regulation

Annex II – paragraph 1 – point 11 – point d – point i

Text proposed by the Commission

Amendment

(i)  education and training, including early childhood education and care, educational facilities, student housing and digital equipment;

(i)  education and training, including early childhood education and care, educational facilities, student housing and digital equipment and student loans;

Amendment    148

Proposal for a regulation

Annex II – paragraph 1 – point 11 – point h

Text proposed by the Commission

Amendment

(h)  innovative health solutions, including health services and new care models;

(h)  innovative health solutions, including health services, healthcare system management, e-health, preventive medicine, precision medicine and new care models;

Amendment    149

Proposal for a regulation

Annex II – paragraph 1 – point 12

Text proposed by the Commission

Amendment

12.  Development of the defence industry, thereby enhancing the Union's strategic autonomy, in particular through support for:

deleted

(a)  the Union’s defence industry supply chain, in particular through financial support to SMEs and mid-caps;

 

(b)  companies participating in disruptive innovation projects in the defence sector and closely related dual-use technologies;

 

(c)  the defence sector supply chain when participating in collaborative defence research and development projects, including those supported by the European Defence Fund;

 

(d)  defence research and training infrastructure.

 

Amendment    150

Proposal for a regulation

Annex II – paragraph 1 – point 13 – point b

Text proposed by the Commission

Amendment

(b)  to foster the competitiveness of space systems and technologies, addressing in particular vulnerability of supply chains;

(b)  to foster the competitiveness of space systems and technologies, addressing in particular independence of supply chains;

Amendment    151

Proposal for a regulation

Annex II – paragraph 1 – point 13 – point c

Text proposed by the Commission

Amendment

(c)  to underpin space entrepreneurship;

(c)  to underpin space entrepreneurship including downstream development;

Amendment    152

Proposal for a regulation

Annex II – paragraph 1 – point 13 a (new)

Text proposed by the Commission

Amendment

 

13 a.  Seas and Oceans, through the development of a sustainable Blue Economy in line with the objectives of the Integrated Maritime Policy in particular through

 

a. Maritime entrepreneurship

 

b. an innovative and competitive maritime industry

 

c. ocean literacy and blue careers

 

d. the implementation of the Sustainable Development Goals, in particular SDG 14 (Life Below Water)

 

e. renewable marine energy and circular economy

Amendment    153

Proposal for a regulation

Annex III – point 1 – introductory part

Text proposed by the Commission

Amendment

1.  Volume of InvestEU financing (broken down by policy window)

1.  Volume of InvestEU financing (broken down by the points and sub-points of the eligible areas for financing and investment operations as laid down in Annex II)

Amendment    154

Proposal for a regulation

Annex III – point 1 – point 1.4 a (new)

Text proposed by the Commission

Amendment

 

1.4 a  Synergies with other EU programmes

Amendment    155

Proposal for a regulation

Annex III – point 2 – introductory part

Text proposed by the Commission

Amendment

2.  Geographical coverage of InvestEU financing (broken down by policy window)

2.  Geographical coverage of InvestEU financing (broken down by by the points and sub-points of the eligible areas for financing and investment operations as laid down in Annex II)

Amendment    156

Proposal for a regulation

Annex III – point 2 – point 2.1 a (new)

Text proposed by the Commission

Amendment

 

2.1 a  Number of regions covered by projects

Amendment    157

Proposal for a regulation

Annex III – point 3 – point 3.2

Text proposed by the Commission

Amendment

3.2  Investment supporting climate objectives

3.2  Investment supporting energy and climate objectives, and, where applicable, detailed per policy window and category, as well as share of climate relevance

Amendment    158

Proposal for a regulation

Annex III – point 4 – point 4.1

Text proposed by the Commission

Amendment

4.1  Energy: Additional renewable energy generation capacity installed (MW)

4.1  Energy: Additional renewable energy generation capacity installed (MW) by source

Amendment    159

Proposal for a regulation

Annex III – point 4 – point 4.2

Text proposed by the Commission

Amendment

4.2  Energy: Number of households with improved energy consumption classification

4.2  Energy: Number of households, number of public and commercial premises with improved energy consumption classification, including the degree of improvement in the classification or equivalent figure, or number of households renovated to NZEB and passive house standard

Amendment    160

Proposal for a regulation

Annex III – point 4 – point 4.3

Text proposed by the Commission

Amendment

4.3  Digital: Additional households with broadband access of at least 100 Mbps upgradable to Gigabit speed

4.3  Digital: Additional households, commercial and/ or public buildings with broadband access of at least 100 Mbps upgradable to Gigabit speed, or number of WIFI- hotspots created

Amendment    161

Proposal for a regulation

Annex III – point 4 – point 4.5 a (new)

Text proposed by the Commission

Amendment

 

4.5 a  Number of alternative fuel infrastructure points deployed

Amendment    162

Proposal for a regulation

Annex III – point 4 – point 4.5 b (new)

Text proposed by the Commission

Amendment

 

4.5 b  Emissions reduction: amount of CO2 emissions reduced

Amendment    163

Proposal for a regulation

Annex III – point 5 – point 5.1

Text proposed by the Commission

Amendment

5.1  Contribution to the objective of 3% of the Union's GDP invested in research, development and innovation

5.1  Contribution to the objective of 3% of the Union's GDP invested in research, development and innovation throughout the programme

Amendment    164

Proposal for a regulation

Annex III – point 5 – point 5.2

Text proposed by the Commission

Amendment

5.2  Number of enterprises supported carrying out research and innovation projects

5.2  Number of enterprises supported carrying out research and innovation projects throughout the programme

Amendment    165

Proposal for a regulation

Annex III – point 5 – point 5.2 a (new)

Text proposed by the Commission

Amendment

 

5.2 a  Number of projects that before got support through Horizon Europe and/or the Digital Europe programme

Amendment    166

Proposal for a regulation

Annex III – point 6 – point 6.2

Text proposed by the Commission

Amendment

6.2  Number of enterprises supported by stage (early, growth/expansion)

6.2  Number of enterprises supported by stage (early, growth/expansion) in particular innovative SMEs

Amendment    167

Proposal for a regulation

Annex III – point 7 – introductory part

Text proposed by the Commission

Amendment

7.  Social Investment and Skills

7.  Gender disaggregated data on Social Investment and Skills

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

Establishing the InvestEU Programme

References

COM(2018)0439 – C8-0257/2018 – 2018/0229(COD)

Committees responsible

       Date announced in plenary

BUDG

14.6.2018

ECON

14.6.2018

 

 

Opinion by

       Date announced in plenary

ITRE

14.6.2018

Associated committees - date announced in plenary

5.7.2018

Rapporteur

       Date appointed

Seán Kelly

13.6.2018

Rule 55 – Joint committee procedure

       Date announced in plenary

       

5.7.2018

Discussed in committee

10.9.2018

 

 

 

Date adopted

5.11.2018

 

 

 

Result of final vote

+:

–:

0:

38

5

8

Members present for the final vote

Zigmantas Balčytis, Bendt Bendtsen, José Blanco López, Jonathan Bullock, Cristian-Silviu Buşoi, Jerzy Buzek, Jakop Dalunde, Pilar del Castillo Vera, Ashley Fox, Theresa Griffin, Rebecca Harms, Seán Kelly, Jeppe Kofod, Jaromír Kohlíček, Peter Kouroumbashev, Miapetra Kumpula-Natri, Paloma López Bermejo, Edouard Martin, Tilly Metz, Dan Nica, Morten Helveg Petersen, Miroslav Poche, Carolina Punset, Massimiliano Salini, Neoklis Sylikiotis, Dario Tamburrano, Patrizia Toia, Evžen Tošenovský, Vladimir Urutchev, Kathleen Van Brempt, Lieve Wierinck, Anna Záborská, Flavio Zanonato, Carlos Zorrinho

Substitutes present for the final vote

Amjad Bashir, Mario Borghezio, Rosa D’Amato, Jens Geier, Benedek Jávor, Werner Langen, Marian-Jean Marinescu, Rupert Matthews, Gesine Meissner, Clare Moody, Markus Pieper, Sofia Sakorafa, Giancarlo Scottà, Davor Škrlec, Pavel Telička

Substitutes under Rule 200(2) present for the final vote

Michael Gahler, Ulrike Rodust

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

38

+

ALDE

Gesine Meissner, Morten Helveg Petersen, Carolina Punset, Pavel Telička, Lieve Wierinck

PPE

Bendt Bendtsen, Cristian-Silviu Buşoi, Jerzy Buzek, Pilar del Castillo Vera, Michael Gahler, Seán Kelly, Werner Langen, Marian-Jean Marinescu, Markus Pieper, Massimiliano Salini, Vladimir Urutchev, Anna Záborská

S&D

Zigmantas Balčytis, José Blanco López, Jens Geier, Theresa Griffin, Jeppe Kofod, Peter Kouroumbashev, Miapetra Kumpula-Natri, Edouard Martin, Clare Moody, Dan Nica, Miroslav Poche, Ulrike Rodust, Patrizia Toia, Kathleen Van Brempt, Flavio Zanonato, Carlos Zorrinho

VERTS/ALE

Jakop Dalunde, Rebecca Harms, Benedek Jávor, Tilly Metz, Davor Škrlec

5

-

EFDD

Jonathan Bullock

GUE/NGL

Jaromír Kohlíček, Paloma López Bermejo, Sofia Sakorafa, Neoklis Sylikiotis

8

0

ECR

Amjad Bashir, Ashley Fox, Rupert Matthews, Evžen Tošenovský

EFDD

Rosa D'Amato, Dario Tamburrano

ENF

Mario Borghezio, Giancarlo Scottà


OPINION of the Committee on Transport and Tourism (21.11.2018)

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the proposal for a regulation of the European Parliament and of the Council establishing the InvestEU Programme

(COM(2018)0439 – C8‑0257/2018 – 2018/0229(COD))

Rapporteur for opinion (*): Wim van de Camp

(*)  Associated committee – Rule 54 of the Rules of Procedure

SHORT JUSTIFICATION

Background

With the InvestEU programme the Commission aims to mobilise public and private investments to address existing investment gaps in areas including sustainable transport and new mobility models, renewable energy and energy efficiency, digital connectivity and technologies, research and innovation, climate, environment and resources, education and skills and development of SMEs. By supporting projects in these areas, the programme is to contribute to EU policy goals regarding sustainability, notably climate, competitiveness and inclusive growth. The InvestEU Fund will provide an EU guarantee of EUR 38 billion to support projects through financing and investment operations under the programme. The guarantee corresponds to an EU budget allocation of EUR 15.2 billion or an approvisioning rate of 40%. The InvestEU Fund operates through four policy windows: sustainable infrastructure; research, innovation and digitisation; SMEs; and social investment and skills.

Transport is included mainly in the “sustainable infrastructure window” which covers infrastucture, mobile assets and deployment of innovative technologies. This window also includes other areas such as energy, digital connectivity, space, or environment. Supported investments are subject to the condition that they contribute to the environmental or social sustainability objectives of the EU. A share of EU 11.5 billion or 30% of the overall EU guarantee will support this window, corresponding to an EU budget allocation of EUR 4.6 billion. As the InvestEU specifically aims to support the development of TEN-T infrastructure, it should be noted that the InvestEU programme also replaces the financial instruments that were previously part of the CEF.

The InvestEU programme follows and replaces the current EFSI, which in its Infrastructure and Innovation Window has supported transport projects with EFSI financing of about EUR 8 billion and resulted in total investments of about EUR 24 billion, about a share of 13% of the investments supported under that window, up to spring 2018. Further EFSI transport projects will still add to the above balance. On the other hand, the share of transport investments generated by EFSI falls quite short of expectations when one considers the major budgetary transfer made from the CEF to the initial EFSI.

Position of the Rapporteur

Your Rapporteur overall welcomes the proposal for the InvestEU as a tool to help boost public and private investments in the transport sector and thus make urgently needed progress in the modernization of the EU’s transport system. Investments should address both infrastructure on the TEN-T, including alternative fuels and electrical charging but also intelligent transport systems, as well as mobility more generally, including new forms of mobility, low-emission vehicles and key digital technologies such as for connected and automated transport. While it is important that projects contribute to meeting climate policy objectives, InvestEU must allow also for sufficient scope to address important societal objectives concerning transport safety, job opportunities and education in transport or tourism. Your Rapporteur therefore proposes amendments to strengthen the proposal in order to

-  clarify transport-specific areas eligible for support in Annex I which should include the telematic priorities of the TEN-T, smart and sustainable mobility, maintenance and upgrading of infrastructure, particular road infrastructure, digital technologies in transport, adaptation of the workforce;

-  stress the need to support the deployment of automated mobility solutions;

-  give special attention to investment challenges in cross-border projects;

-  ensure the geographical balance of supported projects across Member States;

-  clarify that tourism projects should help to shift the sector to sustainable, innovative and digital tourism;

­  emphasize that InvestEU should build on the synergies between the transport, energy, digital and other sectors across the different policy windows;

­  keep the target on the climate policy contribution of investments at the level of 40% recently set for EFSI 2.0.

In addition, your Rapporteur considers that the resources of InvestEU should to be used in such a way that the programme can result in investments in tangible transport projects at least at the level of the EFSI. Therefore, at least 50% of the share for the sustainable infrastructure window should be used for transport.

Finally, your Rapporteur notes that the Commission proposal changes the established governance structure away from the EFSI model, where the EIB played a central role, creating additional layers and somewhat shifting investment decisions back to Commission services. InvestEU should also focus on providing real added value, creating additional investments rather than duplicating or simply replacing projects that could have been realized without support from the fund. Both the governance and additionality aspects merit further examination in the upcoming deliberations.

AMENDMENTS

The Committee on Transport and Tourism calls on the Committee on Budgets and the Committee on Economic and Monetary Affairs, as the committees responsible, to take into account the following amendments:

Amendment    1

Proposal for a regulation

Recital 1

Text proposed by the Commission

Amendment

(1)  With 1.8% of EU GDP, down from 2.2% in 2009, infrastructure investment activities in the Union in 2016 were about 20% below investment rates before the global financial crisis. Thus, while a recovery in investment-to-GDP ratios in the Union can be observed, it remains below what might be expected in a strong recovery period and is insufficient to compensate years of underinvestment. More importantly, the current investment levels and forecasts do not cover the Union’s structural investment needs in the face of technological change and global competitiveness, including for innovation, skills, infrastructure, small and medium-sized enterprises ('SMEs') and the need to address key societal challenges such as sustainability or population ageing. Consequently, continued support is necessary to address market failures and sub-optimal investment situations to reduce the investment gap in targeted sectors to achieve the Union's policy objectives.

(1)  With 1.8% of EU GDP, down from 2.2% in 2009, infrastructure investment activities in the Union in 2016 were about 20% below investment rates before the global financial crisis, sometimes with serious consequences. Thus, while a recovery in investment-to-GDP ratios in the Union can be observed, it remains below what might be expected in a strong recovery period and is insufficient to compensate years of underinvestment. More importantly, the current investment levels and forecasts do not cover the Union’s structural investment needs in the face of technological change and global competitiveness, including for innovation, skills, infrastructure, small and medium-sized enterprises ('SMEs') and the need to address key societal challenges such as sustainability, growing inequality  or population ageing. Consequently, continued support is necessary to address market failures and sub-optimal investment situations to reduce the investment gap in targeted sectors to achieve the Union's policy objectives.

Amendment    2

Proposal for a regulation

Recital 2

Text proposed by the Commission

Amendment

(2)  Evaluations have underlined that the variety of financial instruments delivered under the 2014-2020 Multiannual Financial Framework period has led to some overlaps. That variety has also produced complexity for intermediaries and final recipients who were confronted with different eligibility and reporting rules. Absence of compatible rules also hampered the combination of several Union funds although such combination would have been beneficial to support projects in need of different types of funding. Therefore, a single fund, the InvestEU Fund, should be set up in order to achieve a more efficiently functioning support to final recipients by integrating and simplifying the financial offer under a single budgetary guarantee scheme, thereby improving the impact of Union intervention while reducing the cost to the Union budget.

(2)  Evaluations have underlined that the variety of financial instruments delivered under the 2014-2020 Multiannual Financial Framework period has led to some overlaps. That variety has also produced complexity for intermediaries and final recipients who were confronted with different eligibility and reporting rules, thus acting as a further disincentive for investments. Absence of compatible rules also hampered the combination of several Union funds although such combination would have been beneficial to support projects in need of different types of funding. Therefore, a single fund, the InvestEU Fund, should be set up in order to achieve a more efficiently functioning support to final recipients by integrating and simplifying the financial offer under a single budgetary guarantee scheme, thereby improving the impact of Union intervention while reducing the cost to the Union budget.

Amendment    3

Proposal for a regulation

Recital 3

Text proposed by the Commission

Amendment

(3)  In the last years, the Union has adopted ambitious strategies to complete the Single Market and to stimulate sustainable growth and jobs, such as the Capital Markets Union, the Digital Single Market Strategy, the Clean Energy for all Europeans package, the Union Action Plan for the Circular Economy, the Low-Emission Mobility Strategy, the Defence and the Space Strategy for Europe. The InvestEU Fund should exploit and reinforce synergies between those mutually reinforcing strategies through providing support to investment and access to financing.

(3)  In the last years, the Union has followed ambitious strategies to complete the Single Market and to stimulate sustainable growth and jobs, such as the Capital Markets Union, the Digital Single Market Strategy, the Clean Energy for all Europeans package, the establishment of the Connecting Europe Facility, the Union Action Plan for the Circular Economy, the Low-Emission Mobility Strategy, the Defence and the Space Strategy for Europe. The InvestEU Fund should exploit and reinforce synergies between those mutually reinforcing strategies through providing support to investment and access to financing.

Amendment    4

Proposal for a regulation

Recital 5

Text proposed by the Commission

Amendment

(5)  The InvestEU Fund should contribute to improving the competitiveness of the Union, including in the field of innovation and digitisation, the sustainability of the Union's economic growth, the social resilience and inclusiveness and the integration of the Union capital markets, including solutions addressing their fragmentation and diversifying sources of financing for the Union enterprises. To that end, it should support projects that are technically and economically viable by providing a framework for the use of debt, risk sharing and equity instruments underpinned by a guarantee from the Union's budget and by contributions from implementing partners. It should be demand-driven while support under the InvestEU Fund should at the same time focus on contributing to meeting policy objectives of the Union.

(5)  The InvestEU Fund should contribute to improving the competitiveness of the Union, including in the field of sustainable infrastructure, innovation and digitisation, the sustainability of the Union's economic growth, the social resilience and inclusiveness and the integration of the Union capital markets, including solutions addressing their fragmentation and diversifying sources of financing for the Union enterprises. To that end, it should support projects that are technically and economically viable by providing a framework for the use of debt, risk sharing and equity instruments underpinned by a guarantee from the Union's budget and by contributions from implementing partners. It should be demand-driven while support under the InvestEU Fund should at the same time focus on contributing to meeting policy objectives of the Union.

Amendment    5

Proposal for a regulation

Recital 6

Text proposed by the Commission

Amendment

(6)  The InvestEU Fund should support investments in tangible and intangible assets to foster growth, investment and employment, and thereby contributing to improved well-being and fairer income distribution in the Union. Intervention through the InvestEU Fund should complement Union support delivered through grants.

(6)  The InvestEU Fund should support investments in tangible and intangible assets to foster growth, investment and employment, and thereby contributing to improved well-being, the combating of poverty and fairer income distribution in the Union. Intervention through the InvestEU Fund should complement, whenever necessary, Union support delivered through grants.

Amendment    6

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9)  Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, the InvestEU Programme will contribute to mainstream climate actions and to the achievement of an overall target of 25 % of the Union budget expenditures supporting climate objectives. Actions under the InvestEU Programme are expected to contribute 30 % of the overall financial envelope of the InvestEU Programme to climate objectives. Relevant actions will be identified during the InvestEU Programme's preparation and implementation and reassessed in the context of the relevant evaluations and review processes.

(9)  Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, the InvestEU Programme will contribute to mainstream climate actions and to the achievement of an overall target of 25 % of the Union budget expenditures supporting climate objectives. Actions under the InvestEU Programme are expected to contribute accordingly to climate objectives. Relevant actions will be identified during the InvestEU Programme's preparation and implementation and reassessed in the context of the relevant evaluations and review processes.

Justification

The Commission proposal subjects 100% of the proposed budget allocation for the sustainable infrastructure window to support climate objectives. This is unreasonable and might eliminate urgently needed scope for projects relating to the development of digital infrastructure and modernizing transport infrastructure, i.e. investments which have positive climate impacts e.g. through efficiency gains.

Amendment    7

Proposal for a regulation

Recital 10

Text proposed by the Commission

Amendment

(10)  The contribution of the InvestEU Fund to the achievement of the climate target will be tracked through an EU climate tracking system developed by the Commission in cooperation with implementing partners and using in an appropriate way the criteria established by [Regulation on the establishment of a framework to facilitate sustainable investment14 ] for determining whether an economic activity is environmentally sustainable.

(10)  The contribution of the InvestEU Fund to the achievement of the climate target will be tracked through an EU climate tracking system developed by the Commission in cooperation with implementing partners and using in an appropriate way the criteria established by [Regulation on the establishment of a framework to facilitate sustainable investment14 ] for determining whether an economic activity is environmentally sustainable. The InvestEU Fund will also contribute to implementing the Sustainable Development Goals (SDGs) into EU policies and initiatives, with sustainable development as an essential guiding principle

_________________

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14 COM(2018)353.

14 COM(2018)353.

Amendment    8

Proposal for a regulation

Recital 12

Text proposed by the Commission

Amendment

(12)  Investment projects receiving substantial Union support, notably in the area of infrastructure, should be subject to sustainability proofing in accordance with guidance that should be developed by the Commission in cooperation with implementing partners under the InvestEU Programme and, using in an appropriate way the criteria established by [Regulation on establishment of a framework to facilitate sustainable investment] for determining whether an economic activity is environmentally sustainable and coherently with the guidance developed for other programmes of the Union. Such guidance should include adequate provisions to avoid undue administrative burden.

(12)  Investment projects receiving substantial Union support, notably in the area of infrastructure, should be subject to an assessment of their European added value, particuarly including their sustainability, in accordance with guidance that should be developed by the Commission in cooperation with implementing partners under the InvestEU Programme and, using in an appropriate way the criteria established by [Regulation on establishment of a framework to facilitate sustainable investment] for determining whether an economic activity is environmentally sustainable and coherently with the guidance developed for other programmes of the Union. Such guidance should include adequate provisions to avoid undue administrative burden.

Amendment    9

Proposal for a regulation

Recital 13

Text proposed by the Commission

Amendment

(13)  Low infrastructure investment rates in the Union during the financial crisis undermined the Union's ability to boost sustainable growth, competitiveness and convergence. Sizeable investments in the European infrastructure are fundamental to meet the Union's sustainability targets, including the 2030 energy and climate targets. Accordingly, support from the InvestEU Fund should target investments into transport, energy, including energy efficiency and renewable energy, environmental, climate action, maritime and digital infrastructure. To maximise the impact and the value added of Union financing support, it is appropriate to promote a streamlined investment process enabling visibility of the project pipeline and consistency across relevant Union programmes. Bearing in mind security threats, investment projects receiving Union support should take into account principles for the protection of citizens in public spaces. This should be complementary to the efforts made by other Union funds such as the European Regional Development Fund providing support for security components of investments in public spaces, transport, energy and other critical infrastructure.

(13)  Low infrastructure investment rates in the Union during the financial crisis undermined the Union's ability to boost sustainable growth, competitiveness and convergence. Sizeable investments in the European infrastructure are fundamental to meet the Union's goals to create a Single European Transport Area as well as sustainability targets, including the 2030 energy and climate targets. Accordingly, support from the InvestEU Fund should target investments into tangible transport infrastructure and energy infrastructure, including energy efficiency and renewable energy, environmental, climate action, maritime and digital infrastructure, supporting e.g. development and deployment of Intelligent Transport Systems (ITS). To maximise the impact and the value added of Union financing support, it is appropriate to promote a streamlined investment process enabling visibility of the project pipeline and maximising synergies across relevant Union programmes in the areas of transport, energy and digital. Bearing in mind security threats, investment projects receiving Union support should take into account principles for the protection of citizens in public spaces. This should be complementary to the efforts made by other Union funds such as the European Regional Development Fund providing support for security components of investments in public spaces, transport, energy and other critical infrastructure.

Amendment    10

Proposal for a regulation

Recital 13 a (new)

Text proposed by the Commission

Amendment

 

(13 a)  Transport infrastructure and mobility projects often face difficulties in financing because of lower return rates, the long-term horizon of investments and higher levels of risk and uncertainty. With a view to achieving a sectorial balance of projects being financed by InvestEU and to tackle the problem of sub-optimal investments in transport infrastructure in the Union, the InvestEU Advisory Hub, together with the Commission, should adopt specific measures that would facilitate the blending of support from InvestEU with grants or other public financing available from the Union or national budgets in a simplified and least bureaucratic manner.

Amendment    11

Proposal for a regulation

Recital 13 b (new)

Text proposed by the Commission

Amendment

 

(13 b)  whereas the safety of road users is a huge challenge in the development of the transport sector, and the action being taken and investments being made are only helping to reduce the number of people dying or sustaining serious injuries on the roads to a limited extent; whereas the InvestEU programme should help to boost efforts to design and apply technologies that help to improve the safety of vehicles and road infrastructure;

Amendment    12

Proposal for a regulation

Recital 13 c (new)

Text proposed by the Commission

Amendment

 

(13 c)  whereas real multimodality is an opportunity to create an efficient and environmentally friendly transport network that uses the maximum potential of all means of transport and generates synergy between them; whereas the InvestEU programme could become an important tool for supporting investment in multimodal transport hubs, which - in spite of their significant economic potential and business case - carry a significant risk for private investors;

Amendment    13

Proposal for a regulation

Recital 13 d (new)

Text proposed by the Commission

Amendment

 

(13 d)  Whereas connected and automated mobility is expected to transform transport systems worldwide and the EU should be a world leader in the deployment of safe systems for automated mobility, increasing road safety and sustainability, InvestEU should contribute to strengthen the competitiveness of the Union in this area by supporting investments to develop and deploy automated mobility solutions for vehicles and infrastructures and the related digital technologies.

Justification

Connected and automated mobility is being intensely developed worldwide. The EU must be a global leader in this field in order to ensure competitiveness of its industry, as outlined in the Commission Communication on the road to automated mobility: An EU strategy for mobility of the future. InvestEU should therefore support innovation and deployment of automated mobility solutions and underlying digital technologies, in the areas of infrastructure, vehicles, ICT, robotics and artificial intelligence.

Amendment    14

Proposal for a regulation

Recital 14 a (new)

Text proposed by the Commission

Amendment

 

(14 a)  Whereas tourism is an important sector within the economy of the Union, InvestEU should contribute to strengthen the long-term competitiveness of the sector by supporting actions aimed at a shift towards sustainable, innovative and digital tourism.

Amendment    15

Proposal for a regulation

Recital 15 a (new)

Text proposed by the Commission

Amendment

 

(15 a)  Since digitalisation concerns tourism, this sector too should receive targeted support under the InvestEU Fund.

Amendment    16

Proposal for a regulation

Recital 16

Text proposed by the Commission

Amendment

(16)  Small and medium-sized enterprises (SMEs) play a crucial role in the Union. However, they face challenges when accessing finance because of their perceived high risk and lack of sufficient collateral. Additional challenges arise from SMEs' need to stay competitive by engaging in digitisation, internationalisation and innovation activities and skilling up their workforce. Moreover, compared to larger enterprises, they have access to a more limited set of financing sources: they typically do not issue bonds, have only limited access to stock exchanges or large institutional investors. The challenge in accessing finance is even greater for those SMEs whose activities focus on intangible assets. SMEs in the Union rely heavily on banks and debt financing in the form of bank overdrafts, bank loans or leasing. Supporting SMEs that face the above challenges and providing more diversified sources of funding is necessary for increasing the ability of SMEs to finance their creation, growth and development, withstand economic downturns, and for making the economy and the financial system more resilient during economic downturn or shocks. This is also complementary to the initiatives already undertaken in the context of the Capital Markets Union. The InvestEU Fund should provide an opportunity to focus on specific, more targeted financial products.

(16)  Small and medium-sized enterprises (SMEs) play a crucial role in the Union. However, they face challenges when accessing finance because of their perceived high risk, lack of sufficient collateral and lack of capital. Additional challenges arise from SMEs' need to stay competitive by engaging in digitisation, internationalisation and innovation activities and skilling up their workforce. Moreover, compared to larger enterprises, they have access to a more limited set of financing sources: they typically do not issue bonds, have only limited access to stock exchanges or large institutional investors. The challenge in accessing finance is even greater for those SMEs whose activities focus on intangible assets. SMEs in the Union rely heavily on banks and debt financing in the form of bank overdrafts, bank loans or leasing. Supporting SMEs that face the above challenges and providing more diversified sources of funding is necessary for increasing the ability of SMEs to finance their creation, growth and development, withstand economic downturns, and for making the economy and the financial system more resilient during economic downturn or shocks. This is also complementary to the initiatives already undertaken in the context of the Capital Markets Union. The InvestEU Fund should provide an opportunity to focus on specific, more targeted financial products.

Amendment    17

Proposal for a regulation

Recital 17

Text proposed by the Commission

Amendment

(17)  As set out in the reflection paper on the social dimension of Europe16 and the European Pillar of Social Rights17 , building a more inclusive and fairer Union is a key priority for the Union to tackle inequality and foster social inclusion policies in Europe. Inequality of opportunities affects in particular access to education, training and health. Investment in the social, skills and human capital-related economy, as well as in the integration of vulnerable populations in the society, can enhance economic opportunities, especially if coordinated at Union level. The InvestEU Fund should be used to support investment in education and training, help increase employment, in particular among the unskilled and long-term unemployed, and improve the situation with regard to intergenerational solidarity, the health sector, homelessness, digital inclusiveness, community development, the role and place of young people in society as well as vulnerable people, including third country nationals. The InvestEU Programme should also contribute to the support of European culture and creativity. To counter the profound transformations of societies in the Union and of the labour market in the coming decade, it is necessary to invest in human capital, microfinance, social enterprise finance and new social economy business models, including social impact investment and social outcomes contracting. The InvestEU Programme should strengthen nascent social market eco-system, increasing the supply of and access to finance to micro- and social enterprises, to meet the demand of those who need it the most. The report of the High-Level Task-Force on Investing in Social Infrastructure in Europe18 has identified investment gaps in social infrastructure and services, including for education, training, health and housing, which call for support, including at the Union level. Therefore, the collective power of public, commercial and philanthropic capital, as well as support from foundations, should be harnessed to support the social market value chain development and a more resilient Union.

(17)  As set out in the reflection paper on the social dimension of Europe16 and the European Pillar of Social Rights17, building a more inclusive and fairer Union is a key priority for the Union to tackle inequality and foster social inclusion policies in Europe. Inequality of opportunities affects in particular access to education, training and health. Investment in the social, skills and human capital-related economy, as well as in the integration of vulnerable populations in the society, can enhance economic opportunities, especially if coordinated at Union level and targeted at sectors facing challenges related to workforce shortages, adaptation to new technologies and employment opportunities for women, such as in transport. The InvestEU Fund should be used to support investment in education and training, help increase employment, in particular among the unskilled and long-term unemployed, and improve the situation with regard to intergenerational solidarity, the health sector, homelessness, digital inclusiveness, community development, the role and place of young people in society as well as vulnerable people, including third country nationals. The InvestEU Programme should also contribute to the support of European culture, tourism and creativity. To counter the profound transformations of societies in the Union and of the labour market in the coming decade, it is necessary to invest in human resources, microfinance, social enterprise finance and new social economy business models, including social impact investment and social outcomes contracting. The InvestEU Programme should strengthen nascent social market eco-system, increasing the supply of and access to finance to micro- and social enterprises, to meet the demand of those who need it the most. The report of the High-Level Task-Force on Investing in Social Infrastructure in Europe18 has identified investment gaps in social infrastructure and services, including for education, training, health and housing, which call for support, including at the Union level. Therefore, the collective power of public, commercial and philanthropic capital, as well as support from foundations, should be harnessed to support the social market value chain development and a more resilient Union.

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16 COM(2017) 206.

16 COM(2017) 206.

17 COM(2017) 250.

17 COM(2017) 250.

18 Published as European Economy Discussion Paper 074 in January 2018.

18 Published as European Economy Discussion Paper 074 in January 2018.

Amendment    18

Proposal for a regulation

Recital 19

Text proposed by the Commission

Amendment

(19)  Each policy window should be composed of two compartments, that is to say an EU compartment and a Member State compartment. The EU compartment should address Union-wide market failures or sub-optimal investment situations in a proportionate manner; supported actions should have a clear European added value. The Member State compartment should give Member States the possibility to contribute a share of their resources of Funds under shared management to the provisioning of the EU guarantee to use the EU guarantee for financing or investment operations to address specific market failures or sub-optimal investment situations in their own territory, including in vulnerable and remote areas such as the outermost regions of the Union, to deliver objectives of the Fund under shared management. Actions supported from the InvestEU Fund through either EU or Member State compartments should not duplicate or crowd out private financing or distort competition in the internal market.

(19)  Each policy window should be composed of two compartments, that is to say an EU compartment and a Member State compartment. The EU compartment should address Union-wide market failures, particularly in the case of cross-border projects, or sub-optimal investment situations in a proportionate manner; supported actions should have a clear European added value. The Member State compartment should give Member States the possibility to contribute a share of their resources of Funds under shared management to the provisioning of the EU guarantee to use the EU guarantee for financing or investment operations to address specific market failures or sub-optimal investment situations in their own territory, including in vulnerable and remote areas such as the outermost regions of the Union, to deliver objectives of the Fund under shared management. Actions supported from the InvestEU Fund through either EU or Member State compartments should not duplicate or crowd out private financing or distort competition in the internal market.

Amendment    19

Proposal for a regulation

Recital 24

Text proposed by the Commission

Amendment

(24)  The EU guarantee underpinning the InvestEU Fund should be implemented indirectly by the Commission relying on implementing partners with outreach to final recipients. A guarantee agreement allocating guarantee capacity from the InvestEU Fund should be concluded by the Commission with each implementing partner, to support its financing and investment operations meeting the InvestEU Fund objectives and eligibility criteria. The InvestEU Fund should be provided with a specific governance structure to ensure the appropriate use of the EU guarantee.

(24)  The EU guarantee underpinning the InvestEU Fund should be implemented indirectly by the Commission relying on implementing partners with outreach to final recipients. A guarantee agreement allocating guarantee capacity from the InvestEU Fund should be concluded by the Commission with each implementing partner, to support its financing and investment operations meeting the InvestEU Fund objectives and eligibility criteria. The InvestEU Fund should be provided with a specific governance structure to ensure the appropriate use of the EU guarantee but without generating an excessive administrative burden.

Amendment    20

Proposal for a regulation

Recital 30

Text proposed by the Commission

Amendment

(30)  In order to ensure that interventions under the EU compartment of the InvestEU Fund focus on market failures and sub-optimal investment situations at Union level, but, at the same time, satisfy the objectives of best possible geographic outreach, the EU guarantee should be allocated to implementing partners, which alone or together with other implementing partners, can cover at least three Member States. However, it is expected that around 75 % of the EU guarantee under the EU compartment would be allocated to implementing partner or partners that can offer financial products under the InvestEU Fund in all Member States.

(30)  In order to ensure that interventions under the EU compartment of the InvestEU Fund focus on market failures and sub-optimal investment situations at Union level, but, at the same time, satisfy the objectives of best possible geographic outreach, the EU guarantee should be allocated to implementing partners, which alone or together with other implementing partners, can cover at least two Member States. However, it is expected that around 75 % of the EU guarantee under the EU compartment would be allocated to implementing partner or partners that can offer financial products under the InvestEU Fund in all Member States.

Amendment    21

Proposal for a regulation

Recital 33

Text proposed by the Commission

Amendment

(33)  The InvestEU Fund should, where appropriate, allow for a smooth and efficient blending of grants or financial instruments, or both, funded by the Union budget or by the EU Emissions Trading System (ETS) Innovation Fund with that guarantee in situations where this is necessary to best underpin investments to address particular market failures or sub-optimal investment situations.

(33)  The InvestEU Fund should, where appropriate, allow for a smooth and efficient blending of grants or financial instruments, or both, funded by the Union budget or any other ad hoc fund, such as the EU Emissions Trading System (ETS) Innovation Fund with that guarantee in situations where this is necessary to best underpin investments to address particular market failures or sub-optimal investment situations.

Amendment    22

Proposal for a regulation

Recital 35

Text proposed by the Commission

Amendment

(35)  The InvestEU Advisory Hub should support the development of a robust pipeline of investment projects in each policy window. In addition, a cross-sectoral component under the InvestEU Programme should be foreseen to ensure a single-entry point and cross-policy project development assistance for centrally managed Union programmes.

(35)  The InvestEU Advisory Hub should support the development of a robust pipeline of investment projects in each policy window providing for effective implementation of geographic diversification contributing to the Union objective of economic, social, and territorial cohesion and reducing regional disparities. The Advisory Hub should pay particular attention to smaller, cross-border and EU value-added projects. In addition, a cross-sectoral component under the InvestEU Programme should be foreseen to ensure a single-entry point and cross-policy project development assistance for centrally managed Union programmes.

Amendment    23

Proposal for a regulation

Recital 36

Text proposed by the Commission

Amendment

(36)  In order to ensure a wide geographic outreach of the advisory services across the Union and to successfully leverage local knowledge about the InvestEU Fund, a local presence of the InvestEU Advisory Hub should be ensured, where needed, taking into account existing support schemes, with a view to provide tangible, proactive, tailor-made assistance on the ground.

(36)  In order to ensure a wide and fair geographic outreach of the advisory services across the Union and to successfully leverage local knowledge about the InvestEU Fund, a local presence of the InvestEU Advisory Hub should be ensured in every Member State, especially in areas performing poorest in the awarding of contracts, taking into account existing support schemes, with a view to provide tangible, proactive, tailor-made assistance on the ground.

Amendment    24

Proposal for a regulation

Recital 37

Text proposed by the Commission

Amendment

(37)  In the context of the InvestEU Fund, there is a need for capacity building support to develop the organisational capacities and market making activities needed to originate quality projects. Moreover, the aim is to create the conditions for the expansion of the potential number of eligible recipients in nascent market segments, in particular where the small size of individual projects raises considerably the transaction cost at the project level, such as for the social finance ecosystem. The capacity building support should therefore be complementary and additional to actions undertaken under other Union programmes that cover a specific policy area.

(37)  In the context of the InvestEU Fund, there is a need for capacity building support to develop the organisational capacities and market making activities needed to originate quality projects, particularly in less developed countries. Moreover, the aim is to create the conditions for the expansion of the potential number of eligible recipients in nascent market segments, in particular where the small size of individual projects raises considerably the transaction cost at the project level, such as for the social finance ecosystem. The capacity building support should therefore be complementary and additional to actions undertaken under other Union programmes that cover a specific policy area.

Amendment    25

Proposal for a regulation

Recital 47

Text proposed by the Commission

Amendment

(47)  The InvestEU Programme should address EU-wide market failures and sub-optimal investment situations and provide for Union-wide market testing of innovative financial products, and systems to spread them, for new or complex market failures. Therefore, action at Union level is warranted,

(47)  The InvestEU Programme should address EU-wide market shortcomings and failures and sub-optimal investment situations and provide for Union-wide market testing of innovative financial products, and systems to spread them, for new or complex market failures. Therefore, action at Union level is warranted,

Amendment    26

Proposal for a regulation

Article 1 – paragraph 1

Text proposed by the Commission

Amendment

This Regulation establishes the InvestEU Fund providing for an EU guarantee for financing and investment operations carried out by the implementing partners in support of the Union’s internal policies.

This Regulation establishes the InvestEU Fund providing for an EU guarantee for financing and investment operations carried out by the implementing partners in support of the Union’s internal policies and sets the terms governing relations with the various partners, under the scope of this Regulation.

Amendment    27

Proposal for a regulation

Article 3 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b)  the sustainability of the Union economy and its growth;

(b)  the sustainability of the Union economy and its growth, including climate objectives;

Amendment    28

Proposal for a regulation

Article 3 – paragraph 1 – point d

Text proposed by the Commission

Amendment

(d)  the integration of the Union capital markets and the strengthening of the Single Market, including solutions addressing the fragmentation of the Union capital markets, diversifying sources of financing for Union enterprises and promoting sustainable finance.

(d)  the integration of the Union capital markets and the strengthening of the Single Market, including solutions addressing the fragmentation of the Union capital markets, diversifying sources of financing for Union enterprises, in particular SMEs and start-ups, and promoting sustainable finance.

Amendment    29

Proposal for a regulation

Article 3 – paragraph 1 – point d a (new)

Text proposed by the Commission

Amendment

 

(d a)  contribute to achieving the Union's climate objectives, as well as delivering long-term environmental and societal benefits

Amendment    30

Proposal for a regulation

Article 3 – paragraph 2 – point d

Text proposed by the Commission

Amendment

(d)  to increase the access to and the availability of microfinance and finance to social enterprises, support financing and investment operations related to social investment and skills and develop and consolidate social investment markets, in the areas referred to in point (d) of Article 7(1).

(d)  to facilitate access to microfinancing and financing for social enterprises, support financing and investment operations relating to social investment and skills and develop and consolidate social investment markets in the sectors referred to in point (d) of Article 7(1).

Amendment    31

Proposal for a regulation

Article 3 – paragraph 2 – point d a (new)

Text proposed by the Commission

Amendment

 

(da)  enhance well-being in the EU by reducing poverty and facilitating fairer income distribution;

Amendment    32

Proposal for a regulation

Article 3 – paragraph 2 – point d b (new)

Text proposed by the Commission

Amendment

 

(db)  support investments in tangible and intangible assets to foster growth and cohesion, investment and employment;

Amendment    33

Proposal for a regulation

Article 4 – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

The EU guarantee for the purposes of the EU compartment referred to in point (a) of Article 8(1) shall be EUR 38 000 000 000 (current prices). It shall be provisioned at the rate of 40 %.

The EU guarantee for the purposes of the EU compartment referred to in point (a) of Article 8(1) shall be EUR 38 000 000 000 (current prices). It shall be provisioned at the rate of 40 %, that is to say EUR 15 200 000 000 (EUR 13 065 000 000 in constant prices).

Amendment    34

Proposal for a regulation

Article 4 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

An additional amount of the EU guarantee may be provided for the purposes of the Member State compartment referred to in point (b) of Article 8(1), subject to the allocation by Member States, pursuant to [Article 10(1)] of Regulation [[CPR] number]28 and Article [75(1)] of Regulation [[CAP plan] number]29 , of the corresponding amounts.

An additional amount of the EU guarantee may be provided for the purposes of the Member State compartment referred to in point (b) of Article 8(1), subject to the allocation by the national or regional authorities of the Member States, pursuant to [Article 10(1)] of Regulation [[CPR] number]1a and Article [75(1)] of Regulation [[CAP plan] number]1b, of the corresponding amounts.

__________________

__________________

 

1a To be completed

 

1b To be completed

28

 

29

 

Amendment    35

Proposal for a regulation

Article 4 – paragraph 2

Text proposed by the Commission

Amendment

2.  The indicative distribution of the amount referred to in the first subparagraph of paragraph 1 is set out in Annex I to this Regulation. The Commission may modify the amounts referred to in that Annex I, where appropriate, by up to 15 % for each objective. It shall inform the European Parliament and the Council of any modification.

2.  The indicative distribution of the amount referred to in the first subparagraph of paragraph 1 is set out in Annex I to this Regulation. The Commission may modify the amounts referred to in that Annex I, where appropriate, by up to 15 % for each objective. It shall inform the European Parliament and the Council of any modification.

Amendment    36

Proposal for a regulation

Article 4 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

 

2 a.  In the event that new provisions should prove necessary, these shall be deducted from the margins of the EU's annual budget or from the Flexibility Instrument, but under no circumstances from budget lines or funds that have already been allocated.

Amendment    37

Proposal for a regulation

Article 4 – paragraph 4

Text proposed by the Commission

Amendment

4.  The amount referred to in paragraph 3 may also be used for technical and administrative assistance for the implementation of the InvestEU Programme, such as preparatory, monitoring, control, audit and evaluation activities including corporate information technology systems.

4.  The amount referred to in paragraph 3 may also be used for technical and administrative assistance for the implementation of the InvestEU Programme, such as information, training, preparatory, monitoring, control, audit and evaluation activities including corporate information technology systems.

Amendment    38

Proposal for a regulation

Article 5 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b)  acceding countries, candidate countries and potential candidates, in accordance with the general principles and general terms and conditions for their participation in Union programmes established in the respective framework agreements and Association Council decisions, or similar agreements, and in accordance with the specific conditions laid down in agreements between the Union and them;

(b)  acceding countries and candidate countries, in accordance with the general principles and general terms and conditions for their participation in Union programmes established in the respective framework agreements and Association Council decisions, or similar agreements, and in accordance with the specific conditions laid down in agreements between the Union and them;

Amendment    39

Proposal for a regulation

Article 7 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1.  The InvestEU Fund shall operate through the following four policy windows that shall address market failures or sub-optimal investment situations within their specific scope:

1.  The InvestEU Fund shall operate through the following four policy windows that shall address market shortcomings or failures or sub-optimal investment situations within their specific scope, including in outermost regions.

Amendment    40

Proposal for a regulation

Article 7 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a)  sustainable infrastructure policy window: comprises sustainable investment in the areas of transport, energy, digital connectivity, supply and processing of raw materials, space, oceans and water, waste, nature and other environment infrastructure, equipment, mobile assets and deployment of innovative technologies that contribute to the environmental or social sustainability objectives of the Union, or to both, or meet the environmental or social sustainability standards of the Union;

(a)  sustainable infrastructure policy window: comprises sustainable investment in the areas of transport, including multimodal transport, tourism, energy with a focus on renewable energy-sources and energy-efficiency, digital connectivity, supply and processing of raw materials, space, oceans and inland water, waste, nature and other environment infrastructure, equipment, mobile assets and deployment of innovative technologies that contribute to the environmental or social sustainability objectives of the Union, or to both, or meet the environmental or social sustainability standards of the Union;

Amendment    41

Proposal for a regulation

Article 7 – paragraph 1 – point d

Text proposed by the Commission

Amendment

(d)  social investment and skills policy window: comprises microfinance, social enterprise finance and social economy; skills, education, training and related services; social infrastructure (including social and student housing); social innovation; health and long-term care; inclusion and accessibility; cultural activities with a social goal; integration of vulnerable people, including third country nationals.

(d)  social investment window: comprises microfinance, social enterprise finance and social economy; a Just Transition for workers, skills, education, training and related services; social infrastructure; health and long-term care with a particular focus on the poorer members of society; and the integration of the most vulnerable people, including third country nationals legally residing in one of the Member States of the EU.

Amendment    42

Proposal for a regulation

Article 7 – paragraph 3 – subparagraph 1

Text proposed by the Commission

Amendment

Financing and investment operations under the sustainable infrastructure policy window referred to in point (a) of paragraph (1) shall be subject to climate, environmental and social sustainability proofing with a view to minimise detrimental impacts and maximise benefits on climate, environment and social dimension. For that purpose, promoters requesting financing shall provide adequate information based on guidance to be developed by the Commission. Projects below a certain size defined in the guidance shall be excluded from the proofing.

Financing and investment operations under the sustainable infrastructure policy window referred to in point (a) of paragraph (1) shall be subject to climate, environmental and social sustainability proofing with a view to minimise detrimental impacts and maximise benefits on climate, environment and the social dimension. For that purpose, promoters requesting financing shall provide adequate information based on guidance to be developed by the Commission in form of a delegated act and taking into account the criteria established by the [Regulation on the establishment of a framework to facilitate sustainable investment COM(2018)353]. Where appropriate, projects below a certain size defined in the guidance may be exempted from the proofing.

Amendment    43

Proposal for a regulation

Article 7 – paragraph 3 – subparagraph 2 – point a

Text proposed by the Commission

Amendment

a)  as regards adaptation, ensure the resilience to the potential adverse impacts of climate change through a climate vulnerability and risk assessment, including relevant adaptation measures, and, as regards mitigation, integrate the cost of greenhouse gas emissions and the positive effects of climate mitigation measures in the cost-benefit analysis;

a)  as regards adaptation, ensure the resilience to the potential adverse impacts of climate change through a climate vulnerability and risk assessment, including relevant adaptation measures, and, as regards mitigation, integrate the cost of greenhouse gas emissions and the positive effects of climate mitigation measures in the cost-benefit analysis and ensure compliance with the EU environmental objectives and standards;

Amendment    44

Proposal for a regulation

Article 7 – paragraph 3 – subparagraph 2 – point c a (new)

Text proposed by the Commission

Amendment

 

c a)  estimate the positive effects as to achieve the EUs climate and energy targets as set out in the EU climate and energy efficiency strategies;

Amendment    45

Proposal for a regulation

Article 7 – paragraph 4

Text proposed by the Commission

Amendment

4.  Implementing partners shall provide the information necessary to allow the tracking of investment that contributes to meeting the Union objectives on climate and environment, based on guidance to be provided by the Commission.

4.  Implementing partners shall provide the information necessary to allow the tracking of investment that contributes to meeting the Union objectives on climate and environment, based on guidance to be provided by the Commission and assess compliance of operations with the Regulation on the establishment of a framework to facilitate sustainable investment (COM(2018)353);

Amendment    46

Proposal for a regulation

Article 7 – paragraph 5

Text proposed by the Commission

Amendment

5.  Implementing partners shall target that at least 50 % of the investment under the sustainable infrastructure policy window contribute to meeting the Union objectives on climate and environment.

5.  Implementing partners shall target that at least 40% of the investment supporting operations under the sustainable infrastructure policy window contribute to meeting the Union objectives on climate and environment, as to meet the commitments under the United Nations Framework Convention on Climate Change COP21.

Amendment    47

Proposal for a regulation

Article 7 – paragraph 5 a (new)

Text proposed by the Commission

Amendment

 

5 a.  The Commission together with implementing partners shall seek that the part of the budgetary guarantee used for the sustainable infrastructure policy window is distributed aiming at a balance between the actions in the different areas.

Amendment    48

Proposal for a regulation

Article 7 – paragraph 5 b (new)

Text proposed by the Commission

Amendment

 

5 b.  In the area of transport, at least 10% of investment under the sustainable infrastructure policy window shall contribute to meeting the EU objective of eliminating fatal road accidents and serious injuries by 2050 and to renovating rail and road bridges and tunnels for the sake of their safety.

Amendment    49

Proposal for a regulation

Article 8 – paragraph 1 – point a – point iii

Text proposed by the Commission

Amendment

(iii)  new or complex market failures or sub-optimal investment situations with a view to developing new financial solutions and market structures;

(iii)  new or complex market failures, multi-national cross-border projects,or sub-optimal investment situations with a view to developing new financial solutions and market structures;

Amendment    50

Proposal for a regulation

Article 8 – paragraph 1 – point a – point iii a (new)

Text proposed by the Commission

Amendment

 

(iii a)  intensified cooperation for the formulation, preparation and implementation of cross-border transport projects.

Amendment    51

Proposal for a regulation

Article 8 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b)  the Member State compartment shall address specific market failures or sub-optimal investment situations in one or several Member States to deliver objectives of the contributing Funds under shared management.

(b)  the Member State compartment shall address specific market failures or sub-optimal investment situations in one or several Member States to deliver objectives of the contributing Funds under shared management. A contribution agreement can also be concluded between a regional authority of a Member State and the Commission. Such agreement shall provide for investment activities on the territory of the contributing region and shall be subject to equal conditions as set out in the Article 9 of the Regulation.

Amendment    52

Proposal for a regulation

Article 9 – paragraph 2 – subparagraph 2

Text proposed by the Commission

Amendment

The Member State and the Commission shall conclude the contribution agreement or an amendment to it within four months following the Commission Decision adopting the Partnership Agreement or the CAP plan or simultaneously to the Commission Decision amending a programme or a CAP plan.

The Member State and the Commission shall conclude the contribution agreement or an amendment to it within three months following the Commission Decision adopting the Partnership Agreement or the CAP plan or simultaneously to the Commission Decision amending a programme or a CAP plan.

Amendment    53

Proposal for a regulation

Article 11 – paragraph 2 – point a

Text proposed by the Commission

Amendment

(a)  cross-border projects between entities located or established in one or more Member States and extending to one or more third countries, including acceding countries, candidate countries and potential candidates, countries covered by the European Neighbourhood Policy, the European Economic Area or the European Free Trade Association, or to an overseas country or territory as set out in Annex II to the TFEU, or to an associated third country, whether or not there is a partner in those third countries or overseas countries or territories;

(a)  cross-border projects between entities located or established in one or more Member States and extending to one or more third countries, including acceding countries and candidate countries, countries covered by the European Neighbourhood Policy, the European Economic Area or the European Free Trade Association, or to an overseas country or territory as set out in Annex II to the TFEU, or to an associated third country, whether or not there is a partner in those third countries or overseas countries or territories;

Amendment    54

Proposal for a regulation

Article 12 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

For the EU compartment, the eligible counterparts shall have expressed their interest and shall be able to cover financing and investment operations in at least three Member States. The implementing partners may also cover together financing and investment operations in at least three Member States by forming a group.

For the EU compartment, the eligible counterparts shall have expressed their interest and shall be able to cover financing and investment operations in at least two Member States. The implementing partners may also cover together financing and investment operations in at least two Member States by forming a group. This condition can be fulfilled by covering financing and investment operations in one region of a Member State.

Amendment    55

Proposal for a regulation

Article 12 – paragraph 1 – subparagraph 3

Text proposed by the Commission

Amendment

For the Member State compartment, the Member State concerned may propose one or more eligible counterparts as implementing partners from among those that have expressed their interest pursuant to Article 9(3)(c).

For the Member State compartment, the competent authority of the Member State or region concerned may propose one or more eligible counterparts as implementing partners from among those that have expressed their interest pursuant to Article 9(3)(c).

Amendment    56

Proposal for a regulation

Article 12 – paragraph 1 – subparagraph 4

Text proposed by the Commission

Amendment

Where the Member State concerned does not propose an implementing partner, the Commission shall proceed in accordance with the second subparagraph of this paragraph among those implementing partners that can cover financing and investment operations in the geographical areas concerned.

Where the Member State or region concerned does not propose an implementing partner, the Commission shall proceed in accordance with the second subparagraph of this paragraph among those implementing partners that can cover financing and investment operations in the geographical areas concerned.

Amendment    57

Proposal for a regulation

Article 12 – paragraph 2 – point d

Text proposed by the Commission

Amendment

(d)  achieves geographical diversification;

(d)  achieves a balanced geographical diversification between Member States;

Amendment    58

Proposal for a regulation

Article 16 – paragraph 1

Text proposed by the Commission

Amendment

1.  The remuneration for risk-taking shall be allocated between the Union and an implementing partner in proportion to their respective share in the risk-taking of a portfolio of financing and investment operations or, where relevant, of individual operations. The implementing partner shall have an appropriate exposure at its own risk to financing and investment operations supported by the EU guarantee, unless exceptionally the policy objectives targeted by the financial product to be implemented are of such nature that the implementing partner could not reasonably contribute its own risk-bearing capacity to it.

1.  The remuneration for risk-taking shall be allocated between the Union and an implementing partner in proportion to their respective share in the risk-taking of a portfolio of financing and investment operations or, where relevant, of individual operations. The implementing partner shall have a balanced exposure at its own risk to financing and investment operations supported by the EU guarantee, and, therefore, to the first-loss guarantee, unless the policy objectives targeted by the financial product to be implemented are of such nature that the implementing partner could not reasonably contribute its own risk-bearing capacity to it.

Amendment    59

Proposal for a regulation

Article 17 – paragraph 5 a (new)

Text proposed by the Commission

Amendment

 

5 a.  The minutes of meetings of the advisory board shall be publicly available on a dedicated webpage.

Amendment    60

Proposal for a regulation

Article 20 – paragraph 1 – subparagraph 2 a (new)

Text proposed by the Commission

Amendment

 

The Invest EU Advisory Hub shall provide advisory support at national, regional and local level, including in outermost regions, to promote projects with a view of ensuring that social and environmental aspects are taken into regard throughout the project cycle. Such support shall include assistance to project development and capacity building.

Amendment    61

Proposal for a regulation

Article 20 – paragraph 2 – point f a (new)

Text proposed by the Commission

Amendment

 

(f a)  undertaking communication actions to raise awareness of the available support to project promoters and to financial and other intermediaries provided by the Advisory Hub, and more generally the opportunities available under InvestEU.

Amendment    62

Proposal for a regulation

Article 21 – paragraph 1

Text proposed by the Commission

Amendment

1.  The InvestEU Portal shall be established by the Commission. It shall be an easily accessible and user-friendly project database, providing relevant information for each project.

1.  The InvestEU Portal shall be established by the Commission. It shall be a user-friendly project database, available in all the EU's official languages, providing relevant information for each project.

Amendment    63

Proposal for a regulation

Article 22 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

1 a.  The Commission shall define a methodology to provide for qualitative indicators for an accurate assessment of the progress towards achieving the objectives set out in Article 3. On the basis of this methodology the Commission shall complement the Annex III, at the latest by January 1st 2021.

Amendment    64

Proposal for a regulation

Article 22 – paragraph 3

Text proposed by the Commission

Amendment

3.  The performance reporting system shall ensure that data for monitoring implementation and results are collected efficiently, effectively and in a timely manner. To that end, proportionate reporting requirements shall be imposed on implementing partners and other recipients of Union funds, as appropriate.

3.  The performance reporting system shall ensure that data for monitoring implementation and results are suitable for an in-depth analysis of the progress achieved and the difficulties encountered and are collected efficiently, effectively and in a timely manner. To that end, proportionate reporting requirements shall be imposed on implementing partners and other recipients of Union funds, as appropriate. The reporting system shall provide a clear mapping of the policy windows detailed in the eligible areas for financing and investment operations as laid down in Annex II.

Amendment    65

Proposal for a regulation

Article 23 – paragraph 1

Text proposed by the Commission

Amendment

1.  Evaluations shall be done in a timely manner to feed into the decision-making process.

1.  Evaluations shall be done in a timely manner to feed into the decision-making process. The evaluations shall also provide for a qualitative assessment of the progress towards achieving the objectives set out in Article 3.

Amendment    66

Proposal for a regulation

Article 24 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

The EU guarantee, payments and recoveries under it, and operations under the InvestEU programme shall be audited by the Court of Auditors. A special report by the Court of Auditors should be issued 18 months after the entry into force of this regulation.

Amendment    67

Proposal for a regulation

Annex I – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

In accordance with Article 4 of this Regulation, this distribution may be modified during the financial year in line with developments in the various objectives referred to in Article 3(2) of this Regulation.

Amendment    68

Proposal for a regulation

Annex II – paragraph 1 – point 1 – point a

Text proposed by the Commission

Amendment

(a)  expansion of the generation, supply or use of clean and sustainable renewable energy;

(a)  expansion of the generation, and promoting rapid deployment, supply or use of clean and sustainable renewable energy;

Amendment    69

Proposal for a regulation

Annex II – paragraph 1 – point 1 – point d

Text proposed by the Commission

Amendment

(d)  production and supply of synthetic fuels from renewable/carbon-neutral sources; alternative fuels;

(d)  production and supply of synthetic fuels from renewable/carbon-neutral sources; alternative fuels for all modes of transport;

Amendment    70

Proposal for a regulation

Annex II – paragraph 1 – point 2 – introductory part

Text proposed by the Commission

Amendment

2.  Development of sustainable transport infrastructures, and equipment and innovative technologies in accordance with Union transport priorities and the commitments taken under the Paris Agreement, in particular through:

2.  Development of sustainable and safe transport infrastructures and mobility solutions, and equipment and innovative technologies in accordance with Union transport priorities and the commitments taken under the Paris Agreement, in particular through:

Amendment    71

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point a

Text proposed by the Commission

Amendment

(a)  projects supporting development of the TEN-T infrastructure, including its urban nodes, maritime and inland ports, multimodal terminals and their connection to the main networks;

(a)  projects supporting development of the TEN-T infrastructure, including its urban nodes, maritime and inland ports, airports, multimodal terminals and their connection to the main networks, and the telematic applications laid down in Regulation EU (No) 1315/2013;

Amendment    72

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point a a (new)

Text proposed by the Commission

Amendment

 

(a a)  TEN-T infrastructure projects that make provision for the use of at least two different modes of transport, in particular multimodal freight terminals and passenger transport hubs;

Amendment    73

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point b

Text proposed by the Commission

Amendment

(b)  smart and sustainable urban mobility projects (targeting low-emission urban transport modes, accessibility, air pollution and noise, energy consumption and accidents);

(b)  smart and sustainable urban mobility projects, including inland waterway and air transport (targeting low-emission urban transport modes, non-discriminatory accessibility, air pollution and noise, energy consumption and improved safety, including for cyclists and pedestrians);

Amendment    74

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point c

Text proposed by the Commission

Amendment

(c)  supporting the renewal and retrofitting of transport mobile assets with the view of deploying low-emission mobility solutions;

(c)  supporting the renewal and retrofitting of transport mobile assets with the view of deploying low-emission mobility solutions, including the use of alternative fuels and synthetic fuels from renewable/carbon-neutral sources in vehicles of all transport modes;

Amendment    75

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point d

Text proposed by the Commission

Amendment

(d)  railway infrastructure, other rail projects, and maritime ports;

(d)  railway infrastructure, other rail projects, inland waterway infrastructure and maritime ports and motorways of the sea;

Amendment    76

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point e

Text proposed by the Commission

Amendment

(e)  alternative fuels infrastructure, including electric charging infrastructure.

(e)  alternative fuels infrastructure for all modes of transport, including electric charging infrastructure.

Amendment    77

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point e a (new)

Text proposed by the Commission

Amendment

 

(e a)  smart and sustainable mobility projects, targeting

 

– road safety (including improving driver and passenger safety and reducing the number of fatal accidents and people sustaining serious injuries),

 

– accessibility (including in rural areas),

 

– emission reduction,

 

– the development and deployment of new transport technologies and services, in particular by SMEs and in relation to connected and autonomous modes of transport as well as integrated ticketing

Amendment    78

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point e b (new)

Text proposed by the Commission

Amendment

 

(e b)  projects to maintain or upgrade existing transport infrastructure, including motorways on the TEN-T where necessary to upgrade, maintain or improve road safety, develop ITS services or guarantee infrastructure integrity and standards, in particular safe parking areas and facilities, alternative fuel stations and electric charging systems;

Amendment    79

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point e c (new)

Text proposed by the Commission

Amendment

 

(e c)  road infrastructure for transport in cohesion countries, less developed regions or in cross-border transport projects;

Amendment    80

Proposal for a regulation

Annex II – paragraph 1 – point 6 – point a a (new)

Text proposed by the Commission

Amendment

 

(a a)  Protection of Privacy and Personal Data

Amendment    81

Proposal for a regulation

Annex II – paragraph 1 – point 6 – point f

Text proposed by the Commission

Amendment

(f)  other advanced digital technologies and services contributing to the digitisation of the Union industry.

(f)  other advanced digital technologies and services contributing to the digitisation of the Union industry and the integration of digital technologies, services and skills in the transport sector of the Union;

Justification

Digitalisation is rapidly changing our transport system, from vehicles to mobility services to multi-modal logistics, navigation and more. InvestEU should specifically support the uptake of innovative technologies in transport as a key economic sector of the EU.

Amendment    82

Proposal for a regulation

Annex II – paragraph 1 – point 9

Text proposed by the Commission

Amendment

9.  Tourism.

9.  Tourism sector.

Amendment    83

Proposal for a regulation

Annex II – paragraph 1 – point 11 – point c

Text proposed by the Commission

Amendment

(c)  education, training and related services;

(c)  education, training and related services, addressing in particular opportunities in transport and other sectors challenged by workforce shortage and adaptation to new technologies;

Amendment    84

Proposal for a regulation

Annex III – point 3 – point 3.3 a (new)

Text proposed by the Commission

Amendment

 

3.3 a  Investment supporting improved driver and passenger safety in all modes of transport, in particular road transport

Amendment    85

Proposal for a regulation

Annex III – point 4 – point 4.4

Text proposed by the Commission

Amendment

4.4  Transport: Investment mobilised in TEN-T of which: TEN-T core

4.4  Transport: Investment mobilised in TEN-T of which:

 

– core network and comprehensive network in the component parts identified in the Annex to [Regulation No XXX, insert reference to new CEF] establishing the Connecting Europe Facility; ­

 

– multimodal infrastructure;

 

– innovative solutions contributing to a balanced mix of transport modes, including for inland waterway and air transport;

 

– Number of alternative fuel infrastructure points deployed

Amendment    86

Proposal for a regulation

Annex III – point 7 – point 7.2 a (new)

Text proposed by the Commission

Amendment

 

7.2 a  Support to highly qualified workforce: number of employees supported to maintain highly skilled workforce in the manufacturing and services and adapt it to digitalisation

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

Establishing the InvestEU Programme

References

COM(2018)0439 – C8-0257/2018 – 2018/0229(COD)

Committees responsible

       Date announced in plenary

BUDG

14.6.2018

ECON

14.6.2018

 

 

Opinion by

       Date announced in plenary

TRAN

14.6.2018

Associated committees - date announced in plenary

5.7.2018

Rapporteur

       Date appointed

Wim van de Camp

3.7.2018

Rule 55 – Joint committee procedure

       Date announced in plenary

       

5.7.2018

Date adopted

15.11.2018

 

 

 

Result of final vote

+:

–:

0:

29

13

5

Members present for the final vote

Daniela Aiuto, Lucy Anderson, Marie-Christine Arnautu, Inés Ayala Sender, Georges Bach, Izaskun Bilbao Barandica, Michael Cramer, Luis de Grandes Pascual, Andor Deli, Karima Delli, Isabella De Monte, Ismail Ertug, Tania González Peñas, Dieter-Lebrecht Koch, Miltiadis Kyrkos, Innocenzo Leontini, Bogusław Liberadzki, Peter Lundgren, Marian-Jean Marinescu, Georg Mayer, Gesine Meissner, Renaud Muselier, Markus Pieper, Gabriele Preuß, Christine Revault d’Allonnes Bonnefoy, Dominique Riquet, Massimiliano Salini, Jill Seymour, Claudia Țapardel, Keith Taylor, Pavel Telička, István Ujhelyi, Wim van de Camp, Kosma Złotowski

Substitutes present for the final vote

Francisco Assis, Daniel Dalton, Stefan Gehrold, Maria Grapini, Bolesław G. Piecha, Inmaculada Rodríguez-Piñero Fernández, Anders Sellström, Henna Virkkunen

Substitutes under Rule 200(2) present for the final vote

Heinz K. Becker, Edward Czesak, Jiří Maštálka, Theodor Dumitru Stolojan, Richard Sulík

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

29

+

ALDE

Izaskun Bilbao Barandica, Gesine Meissner, Dominique Riquet, Pavel Telička

ECR

Edward Czesak, Daniel Dalton, Bolesław G. Piecha, Richard Sulík, Kosma Złotowski

ENF

Georg Mayer

GUE/NGL

Tania González Peñas, Jiří Maštálka

PPE

Georges Bach, Heinz K. Becker, Andor Deli, Stefan Gehrold, Dieter‑Lebrecht Koch, Innocenzo Leontini, Marian‑Jean Marinescu, Renaud Muselier, Markus Pieper, Massimiliano Salini, Anders Sellström, Theodor Dumitru Stolojan, Henna Virkkunen, Luis de Grandes Pascual, Wim van de Camp

S&D

Isabella De Monte, Maria Grapini

13

-

ECR

Peter Lundgren

EFDD

Daniela Aiuto, Jill Seymour

ENF

Marie‑Christine Arnautu

S&D

Lucy Anderson, Ismail Ertug, Bogusław Liberadzki, Gabriele Preuß, Christine Revault d'Allonnes Bonnefoy, István Ujhelyi

VERTS/ALE

Michael Cramer, Karima Delli, Keith Taylor

5

0

S&D

Francisco Assis, Inés Ayala Sender, Miltiadis Kyrkos, Inmaculada Rodríguez‑Piñero Fernández, Claudia Țapardel

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention


OPINION of the Committee on the Environment, Public Health and Food Safety (15.11.2018)

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the proposal for a regulation of the European Parliament and of the Council establishing the InvestEU Programme

(COM(2018)0439 – C8‑0257/2018 – 2018/0229(COD))

Rapporteur for opinion: Ivo Belet

SHORT JUSTIFICATION

On 6 June 2018 the Commission presented its proposal for the InvestEU Programme. Building on existing financial instruments, in particular on EFSI, the Commission proposes a single fund, based on an EU guarantee of 38 billion with a view to mobilising public and private financing in the form of loans, guarantees, equity or other market-based instruments, for strategic investments in support of EU internal policies. To facilitate access to the InvestEU Fund, it is accompanied by the InvestEU Advisory Hub and the InvestEU Portal

The InvestEU Fund is aimed at four policy areas (“windows”) with indicative amounts to be invested (15% increase possible upon EC decision):

1) sustainable infrastructure, (up to 11,5 billion)

2) research, innovation and digitisation, (up to 11,25 billion)

3) small and medium-sized businesses (up to 11,25 billion), and

4) social investment and skills (4 billion)

The amendments tabled by your rapporteur exclusively concern matters directly falling within the remits of the ENVI Committee, such as contribution to climate mainstreaming and to meeting Union objectives and standards. Hence, your rapporteur preferred not to table amendments concerning the management of the InvestEU guarantee and the governance of the programme, which are matters that are going to be dealt with by ECON-BUDG joint committees

Your rapporteur welcomes the Commission proposal, in particular in light of the increased focus on sustainability. The InvestEU should ensure systematic sustainability proofing of projects. Thereto, the Commission should adopt detailed minimum sustainability requirements for all the policy windows of the programme, as is currently the case for EIB support under the EFSI. This would mean that all projects receiving substantial Union support should be subject to sustainability proofing.

In order to be in line with the position of the European Parliament on climate mainstreaming and to contribute to the 30% target for climate related spending within the entire EU budget, a 35% objective should be set for the InvestEU programme in general. Clear eligibility criteria and a reliable and transparent tracking method should be put in place, building upon the eligibility criteria used by the EIB for this purpose and agreed in international financial institutions.

While EFSI has mobilised 335 billion in additional investment across the EU since 2015 and has as such contributed to closing the investment gaps, a stronger focus on EU policy objectives has to be envisaged. In particular projects with a higher risk profile than usually taken on by the market and that can contribute to the objectives of the Union's 2030 climate and energy policy framework and to the long-term objectives as expressed in the Paris Agreement should be able to attract support under the InvestEU programme.

In particular, increased investments in low-carbon industrial projects are necessary in order to speed up decarbonisation of the EU industry. Therefore, the European Commission should define in dialogue with the industry community industrial projects of common interest and facilitate their access to financial support under different EU instruments.

In order to have a good understanding of the potential of the InvestEU Programme to contribute to the low-carbon economy, information on CO2 avoidance should be available. However, a cautious approach to thresholds in eligibility criteria should be taken, in order not to prevent gradual progress. As breakthrough solutions do not appear overnight, incremental progress should be able to be supported under the InvestEU programme in order to foster further innovation.

Concerning the governance of the programme, the involvement of the EP as currently foreseen in the EFSI should be maintained. Hence, your rapporteur proposes that the Parliament appoints an independent expert to the advisory board in the configuration with representatives of implementing partners.

AMENDMENTS

The Committee on the Environment, Public Health and Food Safety calls on the Committee on Budgets and the Committee on Economic and Monetary Affairs, as the committees responsible, to take into account the following amendments:

Amendment    1

Proposal for a regulation

Recital 1

Text proposed by the Commission

Amendment

(1)  With 1.8% of EU GDP, down from 2.2% in 2009, infrastructure investment activities in the Union in 2016 were about 20% below investment rates before the global financial crisis. Thus, while a recovery in investment-to-GDP ratios in the Union can be observed, it remains below what might be expected in a strong recovery period and is insufficient to compensate years of underinvestment. More importantly, the current investment levels and forecasts do not cover the Union’s structural investment needs in the face of technological change and global competitiveness, including for innovation, skills, infrastructure, small and medium-sized enterprises ('SMEs') and the need to address key societal challenges such as sustainability or population ageing. Consequently, continued support is necessary to address market failures and sub-optimal investment situations to reduce the investment gap in targeted sectors to achieve the Union's policy objectives.

(1)  With 1.8% of EU GDP, down from 2.2% in 2009, infrastructure investment activities in the Union in 2016 were about 20% below investment rates before the global financial crisis. Thus, while a recovery in investment-to-GDP ratios in the Union can be observed, it remains below what might be expected in a strong recovery period and is insufficient to compensate for years of underinvestment. More importantly, the current investment levels and forecasts do not cover the Union’s structural investment needs in the face of technological change and global competitiveness, including for innovation, research, skills, infrastructure, small and medium-sized enterprises ('SMEs'), start-ups, and the need to address key societal challenges such as sustainability or population ageing. Consequently, continued support is necessary to address market failures and sub-optimal investment situations to reduce the investment gap in targeted sectors to achieve the Union's policy objectives.

Amendment    2

Proposal for a regulation

Recital 1 a (new)

Text proposed by the Commission

Amendment

 

(1a)  Europe is more dependent on imported resources than any other region in the world and many resources will be exhausted in a relatively short term. Europe's competitiveness can be increased significantly by getting more added value out of resources in the economy and promoting a sustainable supply of materials from European sources.

Amendment    3

Proposal for a regulation

Recital 3

Text proposed by the Commission

Amendment

(3)  In the last years, the Union has adopted ambitious strategies to complete the Single Market and to stimulate sustainable growth and jobs, such as the Capital Markets Union, the Digital Single Market Strategy, the Clean Energy for all Europeans package, the Union Action Plan for the Circular Economy, the Low-Emission Mobility Strategy, the Defence and the Space Strategy for Europe. The InvestEU Fund should exploit and reinforce synergies between those mutually reinforcing strategies through providing support to investment and access to financing.

(3)  In the last years, the Union has adopted ambitious strategies to complete the Single Market and to stimulate sustainable growth and jobs, such as the Capital Markets Union, the Digital Single Market Strategy, the Clean Energy for all Europeans package, the Union Action Plan for the Circular Economy, Horizon 2020, the Low-Emission Mobility Strategy, the Defence and the Space Strategy for Europe. The InvestEU Fund should exploit and reinforce synergies between those mutually reinforcing strategies through providing support to investment and access to financing.

Amendment    4

Proposal for a regulation

Recital 5

Text proposed by the Commission

Amendment

(5)  The InvestEU Fund should contribute to improving the competitiveness of the Union, including in the field of innovation and digitisation, the sustainability of the Union's economic growth, the social resilience and inclusiveness and the integration of the Union capital markets, including solutions addressing their fragmentation and diversifying sources of financing for the Union enterprises. To that end, it should support projects that are technically and economically viable by providing a framework for the use of debt, risk sharing and equity instruments underpinned by a guarantee from the Union's budget and by contributions from implementing partners. It should be demand-driven while support under the InvestEU Fund should at the same time focus on contributing to meeting policy objectives of the Union.

(5)  The InvestEU Fund should contribute to improving the competitiveness of the Union, including in the field of innovation, move to circular economy and digitisation, scientific excellence, the sustainability of the Union's economic growth, the social resilience and inclusiveness and the integration of the Union capital markets, including solutions addressing their fragmentation and diversifying sources of financing for the Union enterprises. To that end, it should support projects that are technically and economically viable by providing a framework for the use of debt, risk sharing and equity instruments underpinned by a guarantee from the Union's budget and by contributions from implementing partners. It should be well publicised and demand-driven while support under the InvestEU Fund should at the same time focus on contributing to meeting policy objectives of the Union.

Amendment    5

Proposal for a regulation

Recital 6

Text proposed by the Commission

Amendment

(6)  The InvestEU Fund should support investments in tangible and intangible assets to foster growth, investment and employment, and thereby contributing to improved well-being and fairer income distribution in the Union. Intervention through the InvestEU Fund should complement Union support delivered through grants.

(6)  The InvestEU Fund should support investments in tangible and intangible assets to foster resource efficiency, green and sustainable growth, investment and employment and sustainability and thereby contributing to improved well-being and fairer income distribution in the Union. Intervention through the InvestEU Fund should complement Union support delivered through grants.

Amendment    6

Proposal for a regulation

Recital 7

Text proposed by the Commission

Amendment

(7)  The Union endorsed the objectives set out in the United Nations Agenda 2030 and its Sustainable Development Goals and the Paris Agreement in 2015 as well as the Sendai Framework for Disaster Risk Reduction 2015-2030. To achieve the agreed objectives, including those embedded in the environmental policies of the Union, action pursuing sustainable development is to be stepped up significantly. Therefore, the principles of sustainable development should feature prominently in the design of the InvestEU Fund.

(7)  The Union endorsed the objectives set out in the United Nations Agenda 2030 and its Sustainable Development Goals and the Paris Agreement in 2015 as well as the Sendai Framework for Disaster Risk Reduction 2015-2030. To achieve the agreed objectives, including those embedded in the environmental policies of the Union, action pursuing sustainable development is to be stepped up significantly and environmentally harmful subsidies to be phased-out. Therefore, the principles of sustainable development should be the basis of the design of the InvestEU Fund.

Compromise Amendment7

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9)  Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, the InvestEU Programme will contribute to mainstream climate actions and to the achievement of an overall target of 25 % of the Union budget expenditures supporting climate objectives. Actions under the InvestEU Programme are expected to contribute 30 % of the overall financial envelope of the InvestEU Programme to climate objectives. Relevant actions will be identified during the InvestEU Programme's preparation and implementation and reassessed in the context of the relevant evaluations and review processes.

(9)  Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, the InvestEU Programme will contribute to mainstream climate actions and to the achievement of an overall target of 30 % of the Union budget expenditures supporting climate objectives. Actions under the InvestEU Programme should contribute 40 % of the overall financial envelope of the InvestEU Programme to climate objectives. Relevant actions will be identified during the InvestEU Programme's preparation and implementation and reassessed in the context of the relevant evaluations and review processes.

Compromise Amendment8

Proposal for a regulation

Recital 10

Text proposed by the Commission

Amendment

(10)  The contribution of the InvestEU Fund to the achievement of the climate target will be tracked through an EU climate tracking system developed by the Commission in cooperation with implementing partners and using in an appropriate way the criteria established by [Regulation on the establishment of a framework to facilitate sustainable investment14 ] for determining whether an economic activity is environmentally sustainable.

(10)  The contribution of the InvestEU Fund to the achievement of the climate target will be tracked through a tracking system developed by the Commission by means of delegated acts in cooperation with implementing partners and using in an appropriate way the criteria established by [regulation on the establishment of a framework to facilitate sustainable investment14] for determining whether an economic activity is exhibiting special mitigation impacts or contributing to building climate resilience.

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14 COM(2018)353.

14 COM(2018)353.

Amendment    9

Proposal for a regulation

Recital 11

Text proposed by the Commission

Amendment

(11)  According to the 2018 Global Risks Report issued by the World Economic Forum, half of the ten most critical risks threatening the global economy relate to the environment. Such risks include air, soil and water pollution, extreme weather events, biodiversity losses and failures of climate-change mitigation and adaptation. Environmental principles are strongly embedded in the Treaties and many of the Union's policies. Therefore, the mainstreaming of environmental objectives should be promoted in the InvestEU Fund related operations. Environmental protection and related risk prevention and management should be integrated in the preparation and implementation of investments. The EU should also track its biodiversity-related and air pollution control-related expenditure in order to fulfil the reporting obligations under the Convention on Biological Diversity and Directive (EU) 2016/2284 of the European Parliament and of the Council15 Investment allocated to environmentally sustainability objectives should therefore be tracked using common methodologies coherent with that developed under other Union programmes applying to climate, biodiversity and air pollution management in order to allow assessing the individual and combined impact of investments on the key components of the natural capital, including air, water, land and biodiversity.

(11)  According to the 2018 Global Risks Report issued by the World Economic Forum, half of the ten most critical risks threatening the global economy relate to the environment. Such risks include air, soil and water pollution, extreme weather events, biodiversity losses and failures of climate-change mitigation and adaptation. An unsustainable use of resources is the root cause of many of these environmental risks. Environmental principles are strongly embedded in the Treaties and many of the Union's policies. Therefore, the mainstreaming of environmental objectives should be promoted in the InvestEU Fund related operations. Environmental protection and related risk prevention and management should be integrated in the preparation and implementation of investments. The EU should also track its biodiversity-related and air pollution control-related expenditure in order to fulfil the reporting obligations under the Convention on Biological Diversity and Directive (EU) 2016/2284 of the European Parliament and of the Council15 Investment allocated to environmentally sustainability objectives should therefore be tracked using common methodologies coherent with that developed under other Union programmes applying to climate, biodiversity and air pollution management in order to allow assessing the individual and combined impact of investments on the key components of the natural capital, including air, water, land and biodiversity.

_________________

_________________

15 Directive (EU) 2016/2284 of the European Parliament and of the Council of 14 December 2016 on the reduction of national emissions of certain atmospheric pollutants, amending Directive 2003/35/EC and repealing Directive 2001/81/EC (OJ L 344, 17.12.2016, p. 1).

15 Directive (EU) 2016/2284 of the European Parliament and of the Council of 14 December 2016 on the reduction of national emissions of certain atmospheric pollutants, amending Directive 2003/35/EC and repealing Directive 2001/81/EC (OJ L 344, 17.12.2016, p. 1).

Amendment    10

Proposal for a regulation

Recital 12

Text proposed by the Commission

Amendment

(12)  Investment projects receiving substantial Union support, notably in the area of infrastructure, should be subject to sustainability proofing in accordance with guidance that should be developed by the Commission in cooperation with implementing partners under the InvestEU Programme and, using in an appropriate way the criteria established by [Regulation on establishment of a framework to facilitate sustainable investment] for determining whether an economic activity is environmentally sustainable and coherently with the guidance developed for other programmes of the Union. Such guidance should include adequate provisions to avoid undue administrative burden

(12)  All investment projects receiving Union support should be subject to sustainability proofing in accordance with guidance appropriate for the size and type of investment that should be developed by the Commission in cooperation with implementing partners under the InvestEU Programme and, using in an appropriate way the criteria established by [Regulation on establishment of a framework to facilitate sustainable investment] for determining whether an economic activity is environmentally sustainable and coherently with the guidance developed for other programmes of the Union. Such guidance should include adequate provisions to avoid undue administrative burden.

Amendment    11

Proposal for a regulation

Recital 12 a (new)

Text proposed by the Commission

Amendment

 

(12a)  The EIB Environmental and Social Handbook, providing an operational translation of the policies and principles contained in the EIB Statement of Environmental and Social Principles and Standards, might serve as a reference as how to define and implement environmental and social sustainability proofing with a view to ensure that all financing activities are consistent with environmental and social standards.

Amendment    12

Proposal for a regulation

Recital 13

Text proposed by the Commission

Amendment

(13)  Low infrastructure investment rates in the Union during the financial crisis undermined the Union's ability to boost sustainable growth, competitiveness and convergence. Sizeable investments in the European infrastructure are fundamental to meet the Union's sustainability targets, including the 2030 energy and climate targets. Accordingly, support from the InvestEU Fund should target investments into transport, energy, including energy efficiency and renewable energy, environmental, climate action, maritime and digital infrastructure. To maximise the impact and the value added of Union financing support, it is appropriate to promote a streamlined investment process enabling visibility of the project pipeline and consistency across relevant Union programmes. Bearing in mind security threats, investment projects receiving Union support should take into account principles for the protection of citizens in public spaces. This should be complementary to the efforts made by other Union funds such as the European Regional Development Fund providing support for security components of investments in public spaces, transport, energy and other critical infrastructure.

(13)  Low infrastructure investment rates in the Union during the financial crisis undermined the Union's ability to boost sustainable growth, competitiveness and convergence. Sizeable investments in the European infrastructure are fundamental to meet the sustainability targets of the Union and its Member States, including the 2030 energy and climate targets as well as the objectives adopted in the Paris Agreement. Accordingly, support from the InvestEU Fund should target investments into clean transport, energy, especially energy efficiency and renewable energy, environmental, climate action, maritime and digital infrastructure, with particular attention for vital infrastructural and social investments related to the transformation of regions in transition. In this context, synergy should also be sought, in so far as possible, with regional and national policy objectives, such as the removal of asbestos from roofs, homes and soil. To maximise the impact and the value added of Union financing support, it is appropriate to promote a streamlined investment process enabling visibility of the project pipeline and consistency across relevant Union programmes. Bearing in mind security threats, investment projects receiving Union support should take into account principles for the protection of citizens in public spaces. This should be complementary to the efforts made by other Union funds such as the European Regional Development Fund providing support for security components of investments in public spaces, transport, energy and other critical infrastructure.

Amendment    13

Proposal for a regulation

Recital 14

Text proposed by the Commission

Amendment

(14)  Whereas the level of overall investment in the Union is increasing, investment in higher-risk activities such as research and innovation is still inadequate. The resulting underinvestment in research and innovation is damaging to the industrial and economic competitiveness of the Union and the quality of life of its citizens. The InvestEU Fund should provide the appropriate financial products to cover different stages in the innovation cycle and a wide range of stakeholders, in particular to allow the upscaling of and deployment of solutions at a commercial scale in the Union, in order to make such solutions competitive on world markets.

(14)  Whereas the level of overall investment in the Union is increasing, investment in higher-risk activities such as research and innovation is still inadequate. The resulting underinvestment in research and innovation is damaging to the industrial and economic competitiveness of the Union, the quality of life of its citizens and to the achievement of the energy and climate goals. The InvestEU Fund should provide the appropriate financial products to cover different stages in the innovation cycle and a wide range of stakeholders, in particular to allow the upscaling of and deployment of solutions at a commercial scale in the Union, in order to make such solutions competitive on world markets.

Amendment    14

Proposal for a regulation

Recital 15

Text proposed by the Commission

Amendment

(15)  A significant effort is urgently needed to invest in digital transformation and to distribute the benefits of it to all Union citizens and businesses. The strong policy framework of the Digital Single Market Strategy should now be matched by investment of a similar ambition, including in artificial intelligence.

(15)  A significant effort is urgently needed to invest in digital transformation and to distribute the benefits of it to all Union citizens and businesses in urban and rural areas. The strong policy framework of the Digital Single Market Strategy should now be matched by investment of a similar ambition, including in artificial intelligence.

Amendment    15

Proposal for a regulation

Recital 16

Text proposed by the Commission

Amendment

(16)  Small and medium-sized enterprises (SMEs) play a crucial role in the Union. However, they face challenges when accessing finance because of their perceived high risk and lack of sufficient collateral. Additional challenges arise from SMEs' need to stay competitive by engaging in digitisation, internationalisation and innovation activities and skilling up their workforce. Moreover, compared to larger enterprises, they have access to a more limited set of financing sources: they typically do not issue bonds, have only limited access to stock exchanges or large institutional investors. The challenge in accessing finance is even greater for those SMEs whose activities focus on intangible assets. SMEs in the Union rely heavily on banks and debt financing in the form of bank overdrafts, bank loans or leasing. Supporting SMEs that face the above challenges and providing more diversified sources of funding is necessary for increasing the ability of SMEs to finance their creation, growth and development, withstand economic downturns, and for making the economy and the financial system more resilient during economic downturn or shocks. This is also complementary to the initiatives already undertaken in the context of the Capital Markets Union. The InvestEU Fund should provide an opportunity to focus on specific, more targeted financial products.

(16)  Small and medium-sized enterprises (SMEs) play a crucial role in the Union. However, they face challenges when accessing finance because of their perceived high risk and lack of sufficient collateral. Additional challenges arise from SMEs' need to stay competitive by engaging in digitisation, internationalisation and innovation activities and skilling up their workforce. Moreover, compared to larger enterprises, they have access to a more limited set of financing sources: they typically do not issue bonds, have only limited access to stock exchanges or large institutional investors. The challenge in accessing finance is even greater for those SMEs whose activities focus on intangible assets. SMEs in the Union rely heavily on banks and debt financing in the form of bank overdrafts, bank loans or leasing. Supporting SMEs that face the above challenges by simplifying their access to finance and providing more diversified sources of funding is necessary for increasing the ability of SMEs to finance their creation, growth and development, withstand economic downturns, and for making the economy and the financial system more resilient during economic downturn or shocks. This is also complementary to the initiatives already undertaken in the context of the Capital Markets Union. Programmes such as COSME and H2020 have been important for SMEs in that they facilitated access to finance in all phases of their lifecycle, and that this was added to by EFSI for which there was a quick SME uptake. The InvestEU Fund should provide an opportunity to focus on specific, more targeted financial products.

Amendment    16

Proposal for a regulation

Recital 21

Text proposed by the Commission

Amendment

(21)  The InvestEU Fund should be open to contributions from third countries that are members of the European Free Trade Association, acceding countries, candidates and potential candidates, countries covered by the Neighbourhood policy and other countries, in accordance with the conditions laid down between the Union and those countries. This should allow continuing cooperating with the relevant countries, where appropriate, in particular in the fields of research and innovation as well as SMEs.

(21)  Subject to the same rules and regulations, the InvestEU Fund should be open to contributions from third countries that are members of the European Free Trade Association, acceding countries, candidates and potential candidates, countries covered by the Neighbourhood policy and other countries, in accordance with the conditions laid down between the Union and those countries. This should allow continuing cooperating with the relevant countries, where appropriate, in particular in the fields of research and innovation as well as SMEs.

Amendment    17

Proposal for a regulation

Recital 28

Text proposed by the Commission

Amendment

(28)  An Investment Committee composed of independent experts should conclude on the granting of the support from the EU guarantee to financing and investment operations fulfilling the eligibility criteria, thereby providing external expertise in investment assessments in relation to projects. The Investment Committee should have different configurations to best cover different policy areas and sectors.

(28)  An Investment Committee composed of independent experts should conclude on the granting of the support from the EU guarantee to financing and investment operations fulfilling the eligibility criteria, thereby providing external expertise in investment assessments in relation to projects. The Investment Committee should have different configurations to best cover different policy areas and sectors, while always including experts on the transition to a zero carbon economy. The Investment Committee should also include civil society representatives.

Amendment    18

Proposal for a regulation

Recital 29

Text proposed by the Commission

Amendment

(29)  In selecting implementing partners for the deployment of the InvestEU Fund, the Commission should consider the counterpart's capacity to fulfil the objectives of the InvestEU Fund and contribute its own resources, in order to ensure adequate geographical coverage and diversification, to crowd-in private investors and to provide sufficient risk diversification as well as new solutions to address market failures and sub-optimal investment situations. Given its role under the Treaties, its capacity to operate in all Member States and the existing experience under the current financial instruments and the EFSI, the European Investment Bank (‘EIB’) Group should remain a privileged implementing partner under the InvestEU Fund's EU compartment. In addition to the EIB Group, national promotional banks or institutions should be able to offer a complementary financial product range given that their experience and capabilities at regional level could be beneficial for the maximisation of the impact of public funds on the territory of the Union. Moreover, it should be possible to have other international financial institutions as implementing partners, in particular when they present a comparative advantage in terms of specific expertise and experience in certain Member States. It should also be possible for other entities fulfilling the criteria laid down in the Financial Regulation to act as implementing partners.

(29)  In selecting implementing partners for the deployment of the InvestEU Fund, the Commission should consider the counterpart's capacity to fulfil the objectives of the InvestEU Fund and contribute its own resources, in order to ensure adequate geographical coverage and diversification, to crowd-in private investors and to provide sufficient risk diversification as well as new solutions to address market failures and sub-optimal investment situations. Given its role under the Treaties, its capacity to operate in all Member States and the existing experience under the current financial instruments and the EFSI, the European Investment Bank (‘EIB’) Group should remain a privileged implementing partner under the InvestEU Fund's EU compartment. In addition to the EIB Group, national or regional promotional banks or institutions should be able to offer a complementary financial product range given that their experience and capabilities at regional level could be beneficial for the maximisation of the impact of public funds on the territory of the Union. Moreover, it should be possible to have other international financial institutions as implementing partners, in particular when they present a comparative advantage in terms of specific expertise and experience in certain Member States. It should also be possible for other entities fulfilling the criteria laid down in the Financial Regulation to act as implementing partners.

Amendment    19

Proposal for a regulation

Recital 44

Text proposed by the Commission

Amendment

(44)  Third countries which are members of the European Economic Area (EEA) may participate in Union programmes in the framework of the cooperation established under the EEA agreement, which provides for the implementation of the programmes by a decision under that agreement. Third countries may also participate on the basis of other legal instruments. A specific provision should be introduced in this Regulation to grant the necessary rights for and access to the authorising officer responsible, the European Anti-Fraud Office (OLAF) as well as the European Court of Auditors to comprehensively exert their respective competences.

(44)  Subject to all rules and regulations of individual programmes, third countries which are members of the European Economic Area (EEA) may participate in Union programmes in the framework of the cooperation established under the EEA agreement, which provides for the implementation of the programmes by a decision under that agreement. Third countries may also participate on the basis of other legal instruments. A specific provision should be introduced in this Regulation to grant the necessary rights for and access to the authorising officer responsible, the European Anti-Fraud Office (OLAF) as well as the European Court of Auditors to comprehensively exert their respective competences.

Amendment    20

Proposal for a regulation

Recital 46

Text proposed by the Commission

Amendment

(46)  In order to supplement the non-essential elements of this Regulation with investment guidelines with which financing and investment operations should comply, to facilitate a prompt and flexible adaptation of the performance indicators and to adjust of the provisioning rate, the power to adopt acts in accordance with Article 290 of the TFEU should be delegated to the Commission in respect of drawing-up the investment guidelines for the financing and investment operations under different policy windows, the amendment of Annex III to this Regulation to review or complement the indicators and the adjustment of the provisioning rate. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(46)  In order to supplement the non-essential elements of this Regulation with guidance on how promoters requesting financing should provide adequate information concerning climate, environmental and social sustainability proofing of financing and investment operations and with investment guidelines with which financing and investment operations should comply, to facilitate a prompt and flexible adaptation of the performance indicators and to adjust of the provisioning rate, the power to adopt acts in accordance with Article 290 of the TFEU should be delegated to the Commission in respect of drawing-up the investment guidelines for the financing and investment operations under different policy windows, the amendment of Annex III to this Regulation to review or complement the indicators and the adjustment of the provisioning rate. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

Amendment    21

Proposal for a regulation

Recital 47 a (new)

Text proposed by the Commission

Amendment

 

(47a)  The need for rigorous coordination between different types of financial instruments, for the prevention of duplication and for regional balance should be stressed.

Amendment    22

Proposal for a regulation

Article 2 – paragraph 1 – point 15 a (new)

Text proposed by the Commission

Amendment

 

(15a)  'start- up' means an enterprise that is often tech-enabled, and in general combines fast growth, high reliance on innovation of product, processes and financing, utmost attention to new technological developments and extensive use of innovative business models, and, often, collaborative platforms;

Amendment    23

Proposal for a regulation

Article 3 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b)  the sustainability of the Union economy and its growth;

(b)  the sustainability of the Union economy and its growth, including climate change mitigation and adaptation and the move to a circular economy;

Amendment    24

Proposal for a regulation

Article 3 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b)  to support financing and investment operations in research, innovation and digitisation;

(b)  to support financing and investment operations in research, innovation and digitisation; inter alia to allow for a timely shift to a low carbon and circular economy;

Amendment    25

Proposal for a regulation

Article 3 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c)  to increase the access to and the availability of finance for SMEs and, in duly justified cases, for small mid-cap companies;

(c)  to increase and facilitate the access to and the availability of finance for SMEs and, in duly justified cases, for small mid-cap companies;

Amendment    26

Proposal for a regulation

Article 5 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

The EU compartment of the InvestEU Fund referred to in point (a) of Article 8(1) and each of the policy windows referred to in Article 7(1) may receive contributions from the following third countries in order to participate in certain financial products pursuant to [Article 218(2)] of the [Financial Regulation]:

Subject to all rules and regulations of individual programmes, the EU compartment of the InvestEU Fund referred to in point (a) of Article 8(1) and each of the policy windows referred to in Article 7(1) may receive contributions from the following third countries in order to participate in certain financial products pursuant to [Article 218(2)] of the [Financial Regulation]:

Amendment    27

Proposal for a regulation

Article 7 – paragraph 1

Text proposed by the Commission

Amendment

1.  The InvestEU Fund shall operate through the following four policy windows that shall address market failures or sub-optimal investment situations within their specific scope:

1.  The InvestEU Fund shall operate through the following four policy windows that shall address market failures or sub-optimal investment situations within their specific scope:

(a)  sustainable infrastructure policy window: comprises sustainable investment in the areas of transport, energy, digital connectivity, supply and processing of raw materials, space, oceans and water, waste, nature and other environment infrastructure, equipment, mobile assets and deployment of innovative technologies that contribute to the environmental or social sustainability objectives of the Union, or to both, or meet the environmental or social sustainability standards of the Union;

(a)  sustainable infrastructure policy window: comprises environmentally, economically and socially sustainable investment in the areas of transport, clean energy in particular the increased deployment of renewable energy, energy efficiency investments, and improving interconnection levels, digital connectivity and access especially in rural areas, supply and processing of raw materials, space, oceans and water, waste, nature and other environment infrastructure, equipment, industrial decarbonisation, regeneration of post-industrial sites, mobile assets and deployment of innovative technologies; such investment shall at least meet the environmental or social sustainability standards of the Union, and where applicable contribute to the environmental or social sustainability objectives of the Union, such as resource efficiency or to both;

(b)  research, innovation and digitisation policy window: comprises research and innovation activities, transfer of research results to the market, demonstration and deployment of innovative solutions and support to scaling up of innovative companies other than SMEs as well as digitisation of Union industry;

(b)  research, innovation and digitisation policy window: comprises research and innovation activities, transfer of research results to the market, demonstration and deployment of innovative solutions and support to scaling up of innovative companies including SMEs, and sustainable business opportunities as well as digitisation of Union industry;

(c)  SMEs policy window: access to and availability of finance for SMEs and, in duly justified cases, for small mid-cap companies;

(c)  SMEs policy window: simplified access to and availability of finance for SMEs and, in duly justified cases, for small mid-cap companies;

(d)  social investment and skills policy window: comprises microfinance, social enterprise finance and social economy; skills, education, training and related services; social infrastructure (including social and student housing); social innovation; health and long-term care; inclusion and accessibility; cultural activities with a social goal; integration of vulnerable people, including third country nationals.

(d)  social investment and skills policy window: comprises microfinance, social enterprise finance, female entrepreneurship and social economy; skills, education, training and related services, including re-skilling, up-skilling and redeployment of workers in regions affected by industrial restructuring linked to transition to a low-carbon economy; social infrastructure (including social and student housing); social innovation; health and long-term care; inclusion and accessibility; cultural activities with a social goal; integration of vulnerable people, including third country nationals.

Amendment    28

Proposal for a regulation

Article 7 – paragraph 3

Text proposed by the Commission

Amendment

3.  Financing and investment operations under the sustainable infrastructure policy window referred to in point (a) of paragraph (1) shall be subject to climate, environmental and social sustainability proofing with a view to minimise detrimental impacts and maximise benefits on climate, environment and social dimension. For that purpose, promoters requesting financing shall provide adequate information based on guidance to be developed by the Commission. Projects below a certain size defined in the guidance shall be excluded from the proofing.

3.  When they have an impact on the environment and on climate, financing and investment operations under the policy windows referred to in points (a) (b), (c) and (d) of paragraph (1) shall be subject to climate, environmental, and social sustainability proofing through minimum sustainability thresholds, with a view to maximise resource efficiency, ensure alignment with circular economy principles, and minimise detrimental impacts and maximise benefits on climate, environment and social dimensions. For that purpose, promoters requesting financing shall provide adequate information based on guidance to be developed by the Commission in accordance with paragraph 6.

The Commission guidance shall allow to:

The Commission guidance shall allow to:

 

- a)  ensure compliance with Union environmental policies and standards;

a)  as regards adaptation, ensure the resilience to the potential adverse impacts of climate change through a climate vulnerability and risk assessment, including relevant adaptation measures, and, as regards mitigation, integrate the cost of greenhouse gas emissions and the positive effects of climate mitigation measures in the cost-benefit analysis;

a)  as regards adaptation, ensure the resilience to the potential adverse impacts of climate change through a climate vulnerability and risk assessment, including relevant adaptation measures, and, as regards mitigation, integrate the cost of greenhouse gas emissions and the positive effects of climate mitigation measures in the cost-benefit analysis;

b)  account for consolidated project impact in terms of the principal components of the natural capital relating to air, water, land and biodiversity;

b)  account for consolidated project impact in terms of the principal components of the natural capital relating to air, water, land and biodiversity;

c)  estimate the impact on the social inclusion of certain areas or populations;

c)  estimate the impact on the social inclusion of certain areas or populations;

 

ca)  rule out support for projects that run contrary to achieving the mid- and long-term climate and energy targets of the Union, the objectives of the Paris Agreement, and lead to significant greenhouse gas emissions;

 

cb)  rule out support for any fossil fuel infrastructure related to production, processing, transmission, distribution, storage or combustion of fossil fuels;

Amendment    29

Proposal for a regulation

Article 7 – paragraph 5

Text proposed by the Commission

Amendment

5.  Implementing partners shall target that at least 50 % of the investment under the sustainable infrastructure policy window contribute to meeting the Union objectives on climate and environment.

5.  At least 40 % of the investment under InvestEU shall contribute to meeting Union climate objectives.

 

Implementing partners shall target that at least 55 % and 10 % of the investment under the sustainable infrastructure policy window contribute to meeting the Union objectives on, respectively, climate and environment.

 

Clear eligibility criteria, and a reliable transparent tracking method, shall be further detailed in the investment guidelines adopted in accordance with paragraph 6. Those guidelines shall also set out a methodology for assessing to what extent social investments aimed to assist carbon intensive regions undergoing transition contribute to the thresholds referred to in the first two subparagraphs.

Amendment    30

Proposal for a regulation

Article 7 – paragraph 6

Text proposed by the Commission

Amendment

6.  The Commission is empowered to adopt delegated acts in accordance with Article 26 to define the investment guidelines for each of the policy windows.

6.  The Commission is empowered to adopt delegated acts in accordance with Article 26 supplementing this Regulation by defining the investment guidelines for each of the policy windows referred to in paragraph 1. In defining those investment guidelines, the Commission shall cooperate with the implementing partners under the Invest EU Programme.

 

The Commission is also empowered to adopt delegated acts in accordance with Article 26 supplementing this Regulation by setting out the guidance referred to in paragraph 3.

Amendment    31

Proposal for a regulation

Article 8 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

 

2a.  The Commission is empowered to adopt delegated acts in accordance with Article 26 to define market failures and sub-optimal investment situations referred to in paragraph 1 after receiving advice from the advisory board.

Amendment    32

Proposal for a regulation

Article 9 – paragraph 3 – point a a (new)

Text proposed by the Commission

Amendment

 

aa)  identified market failures and sub-optimal investment situations which should be addressed by the financed operations;

Amendment    33

Proposal for a regulation

Article 17 – paragraph 3

Text proposed by the Commission

Amendment

3.  The Commission shall be represented within both configurations of the advisory board.

3.  The Commission shall be represented within both configurations of the advisory board. The European Parliament shall appoint an independent expert who shall be a member of the advisory board of representatives of the implementing partners.

Amendment    34

Proposal for a regulation

Article 17 – paragraph 5 – point a – point ii a (new)

Text proposed by the Commission

Amendment

 

(iia)  provide advice about eligibility of investments and projects.

Amendment    35

Proposal for a regulation

Article 17 – paragraph 5 a (new)

Text proposed by the Commission

Amendment

 

5a.  The minutes of meetings of the advisory board shall be made publicly available on a dedicated webpage.

Amendment    36

Proposal for a regulation

Article 18 – paragraph 3

Text proposed by the Commission

Amendment

3.  The Commission shall confirm whether the proposed financing and investment operations by the implementing partners comply with Union law and policies.

3.  The Commission shall confirm whether the proposed financing and investment operations by the implementing partners comply with Union law and policies and whether they are considered to count towards the targets specified in Article 7(5).

Amendment    37

Proposal for a regulation

Article 18 – paragraph 4 – subparagraph 3 – point c a (new)

Text proposed by the Commission

Amendment

 

(ca)  the compliance with Union environmental standards;

Amendment    38

Proposal for a regulation

Article 18 – paragraph 4 – subparagraph 3 – point c b (new)

Text proposed by the Commission

Amendment

 

(cb)  the compliance with the Energy Union’s “energy efficiency first” principle;

Amendment    39

Proposal for a regulation

Article 18 – paragraph 4 – subparagraph 3 – point c c (new)

Text proposed by the Commission

Amendment

 

(cc)  whether the proposed operation addresses the identified market failures or sub-optimal investment situations.

Amendment    40

Proposal for a regulation

Article 19 – paragraph 5 – subparagraph 3

Text proposed by the Commission

Amendment

The scoreboard shall be publicly available after the signature of a financing or investment operation or sub-project, if applicable. The publication shall not contain commercially sensitive information or personal data not to be disclosed under the Union data protection rules.

The scoreboard shall be publicly available before approval of the investment operation. The publication shall not contain commercially sensitive information or personal data not to be disclosed under the Union data protection rules.

Amendment    41

Proposal for a regulation

Article 21 – paragraph 1

Text proposed by the Commission

Amendment

1.  The InvestEU Portal shall be established by the Commission. It shall be an easily accessible and user-friendly project database, providing relevant information for each project.

1.  The InvestEU Portal shall be established by the Commission. It shall be a well-publicised, easily accessible and user-friendly project database, providing relevant information for each project.

Amendment    42

Proposal for a regulation

Article 22 – paragraph 4

Text proposed by the Commission

Amendment

4.  The Commission shall report on the implementation of InvestEU Programme in accordance with [Articles 241 and 250] of the [Financial Regulation]. For that purpose, the implementing partners shall provide annually the information necessary to allow the Commission to comply with its reporting obligations.

4.  The Commission shall report on the implementation of InvestEU Programme in accordance with [Articles 241 and 250] of the [Financial Regulation]. For that purpose, the implementing partners shall provide annually the information necessary to allow the Commission to comply with its reporting obligations. As part of its annual reporting, the Commission shall annually analyse a multi-annual consolidation exercise to identify whether climate expenditure is on track to achieve the climate and environment mainstreaming targets referred to in Article 7(5). The Commission shall provide information on the support to climate change objectives differentiating between mitigation and adaptation as well as information on the climate contribution of relevant financial instruments, and make this publicly available.

Amendment    43

Proposal for a regulation

Article 24 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

The EU guarantee, payments and recoveries under it, and operations under the InvestEU programme shall be audited by the Court of Auditors. A special report by the Court of Auditors shall be issued [18 months after the entry into force of this regulation].

Amendment    44

Proposal for a regulation

Annex II – paragraph 1 – point 1 – introductory part

Text proposed by the Commission

Amendment

1.  Development of the energy sector in accordance with the Energy Union priorities, including security of energy supply, and the commitments taken under the Agenda 2030 and the Paris Agreement, in particular through:

1.  Development of the energy sector, excluding activities related to production, processing, transmission, distribution, storage or combustion of fossil fuels, in accordance with the Energy Union priorities, including security of energy supply, and the commitments taken under the Agenda 2030 and the Paris Agreement, in particular through:

Amendment    45

Proposal for a regulation

Annex II – paragraph 1 – point 1 – point a

Text proposed by the Commission

Amendment

(a)  expansion of the generation, supply or use of clean and sustainable renewable energy;

(a)  expansion of the generation, supply, storage or use of clean and sustainable renewable energy;

Amendment    46

Proposal for a regulation

Annex II – paragraph 1 – point 1 – point c

Text proposed by the Commission

Amendment

(c)  development, smartening and modernisation of sustainable energy infrastructure (transmission and distribution level, storage technologies);

(c)  development, smartening and modernisation of sustainable energy infrastructure (transmission and distribution level, storage technologies), and development of innovative heat supply systems (HSSs) and combined heat and power generation;

Amendment    47

Proposal for a regulation

Annex II – paragraph 1 – point 1 – point d

Text proposed by the Commission

Amendment

(d)  production and supply of synthetic fuels from renewable/carbon-neutral sources; alternative fuels;

(d)  production and supply of synthetic fuels from renewable/carbon-neutral non-fossil sources; alternative fuels;

Amendment    48

Proposal for a regulation

Annex II – paragraph 1 – point 1 – point e a (new)

Text proposed by the Commission

Amendment

 

(ea)  support for regions undergoing transformation in view of the Union’s climate policy objectives, in particular mining regions;

Amendment    49

Proposal for a regulation

Annex II – paragraph 1 – point 1 – point e b (new)

Text proposed by the Commission

Amendment

 

(eb)  local and regional renewable energy production especially through energy communities.

Justification

Local renewable energy production through energy communities was an important addition from European parliament to the REDII regulation.

Amendment    50

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point d

Text proposed by the Commission

Amendment

(d)  railway infrastructure, other rail projects, and maritime ports;

(d)  railway infrastructure, other rail projects, inland waterway infrastructure and maritime ports;

Amendment    51

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point e

Text proposed by the Commission

Amendment

(e)  alternative fuels infrastructure, including electric charging infrastructure.

(e)  alternative propulsion infrastructure, including electric charging infrastructure;

Amendment    52

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point e a (new)

Text proposed by the Commission

Amendment

 

(ea)  development of new-generation batteries for industrial and electrical mobility applications, including in shipping and aviation;

Amendment    53

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point e b (new)

Text proposed by the Commission

Amendment

 

(eb)  infrastructure for the production and use of advanced biofuels;

Amendment    54

Proposal for a regulation

Annex II – paragraph 1 – point 2 – point e c (new)

Text proposed by the Commission

Amendment

 

(ec)  fuelling infrastructure for hydrogen mobility.

Amendment    55

Proposal for a regulation

Annex II – paragraph 1 – point 3 – point a

Text proposed by the Commission

Amendment

(a)  water, including supply and sanitation, and coastal infrastructure and other water-related green infrastructure;

(a)  water, including supply and sanitation, and coastal and insular infrastructure and other water-related green infrastructure;

Amendment    56

Proposal for a regulation

Annex II – paragraph 1 – point 3 – point c a (new)

Text proposed by the Commission

Amendment

 

(ca)  programmes, projects and initiatives in the field of removal of asbestos from roofs, homes, buildings and soil, particularly in combination with the renewable energy and CO2 reduction targets of Member States and regions;

Justification

In accordance with what the European Parliament called for in its report of 30 January 2013 on Asbestos related occupational health threats and prospects for abolishing all existing asbestos. Cf. written replies by Ms Thyssen on behalf of the Commission of 10 April 2018, E-000862/2018.

Amendment    57

Proposal for a regulation

Annex II – paragraph 1 – point 3 – point e

Text proposed by the Commission

Amendment

(e)  sustainable urban, rural and coastal development;

(e)  sustainable urban, rural, coastal and insular development;

Amendment    58

Proposal for a regulation

Annex II – paragraph 1 – point 3 – point g

Text proposed by the Commission

Amendment

(g)  projects and enterprises that implement circular economy by integrating resource efficiency aspects in the production and product life-cycle, including the sustainable supply of primary and secondary raw materials;

(g)  projects and enterprises that implement circular economy by integrating resource efficiency aspects in the production and product life-cycle, including the sustainable supply of primary and secondary raw materials as well as the eventual re-use and recycling;

Amendment    59

Proposal for a regulation

Annex II – paragraph 1 – point 3 – point h a (new)

Text proposed by the Commission

Amendment

 

(ha)  projects that implement innovative carbon capture and utilisation technologies;

Amendment    60

Proposal for a regulation

Annex II – paragraph 1 – point 3 – point h b (new)

Text proposed by the Commission

Amendment

 

(hb)  antimicrobial resistance, and notably reducing the use of antibiotics in humans and animals with the ’One health approach’ by preventative measures;

Amendment    61

Proposal for a regulation

Annex II – paragraph 1 – point 3 – point h c (new)

Text proposed by the Commission

Amendment

 

(hc)  decarbonising the energy production and distribution chain.

Amendment    62

Proposal for a regulation

Annex II – paragraph 1 – point 3 a (new)

Text proposed by the Commission

Amendment

 

3a.  Promotion of substitution of products that are chemically hazardous with more sustainable alternatives.

Amendment    63

Proposal for a regulation

Annex II – paragraph 1 – point 4

Text proposed by the Commission

Amendment

4.  Development of digital connectivity infrastructure, in particular through projects supporting deployment of very high capacity digital networks.

4.  Development of digital connectivity infrastructure, in particular through projects supporting deployment of very high capacity digital networks in urban and rural areas.

Amendment    64

Proposal for a regulation

Annex II – paragraph 1 – point 5 – point b

Text proposed by the Commission

Amendment

(b)  corporate projects;

(b)  research and innovation processes, technology transfer and cooperation between enterprises focusing on the new low carbon economy, resilience and adaptation to climate change and the circular economy;

Amendment    65

Proposal for a regulation

Annex II – paragraph 1 – point 5 – point f

Text proposed by the Commission

Amendment

(f)  new effective healthcare products, including pharmaceuticals, medical devices and advanced therapy medicinal products.

(f)  new effective healthcare products, including pharmaceuticals, medical devices, eHealth and advanced therapy medicinal products.

Amendment    66

Proposal for a regulation

Annex II – paragraph 1 – point 11 – point a

Text proposed by the Commission

Amendment

(a)  microfinance, social enterprise finance and social economy;

(a)  microfinance, social enterprise finance, female entrepreneurship and social economy;

Amendment    67

Proposal for a regulation

Annex II – paragraph 1 – point 11 – point i a (new)

Text proposed by the Commission

Amendment

 

(ia)  redeployment, re-skilling and upskilling of workers, education and job-seeking initiatives in regions depending on a carbon intensive economy and affected by the structural transition to a low-carbon economy.

Amendment    68

Proposal for a regulation

Annex II – paragraph 13 a (new)

Text proposed by the Commission

Amendment

 

13a. Seas and Oceans, through the development of a sustainable blue economy in line with the objectives of the Integrated Maritime Policy in particular through:

 

(a) maritime entrepreneurship;

 

(b) an innovative and competitive maritime industry;

 

(c) ocean literacy and blue careers;

 

(d) the International Ocean Governance agenda;

 

(e) maritime surveillance and security;

 

(f) cross-border cooperation;

 

(g) the implementation of the Sustainable Development Goals, in particular SDG 14 (Life Below Water).

Amendment    69</