Parliamentary question - E-000650/2023(ASW)Parliamentary question

Answer given by Ms McGuinness on behalf of the European Commission

The Commission acknowledges the Parliament’s careful consideration of the need to allocate sufficient Union budget to co-finance the tasks expected from EFRAG[1] under the provisions of the Corporate Sustainability Reporting Directive (CSRD)[2].

This work is proving more costly than EFRAG estimated when the Commission proposed the CSRD. The Commission has, therefore, already increased the EU’s grant awarded to EFRAG by EUR 1.6 million, from just under EUR 2.9 million in 2020 to nearly EUR 4.5 million in 2022, by internal redeployment within the same budget line.

The Commission noted that the Parliament’s position in the conciliation on the draft budget 2023 supported an EUR 1 million increase in budget line 03 02 03 02, but that this was not included in the Budgetary Authority’s agreed position on 14 November 2022, nor in the definitively adopted budget.

Accordingly, the allocation for the line 03 02 03 01 has been fully devoted to standardisation actions under the Work Programme 2023.

As such, it would not be appropriate for the Commission to make an autonomous transfer of appropriations in accordance with Article 30 of the Financial Regulation from line 03 02 03 01 to increase budget line 03 02 03 02 by EUR 1 million.

However, to increase the funding for its work on European Sustainability Reporting Standards in 2023, the Commission has offered EFRAG two action grants (one for sustainability reporting and one for financial reporting) for a total of up to EUR 6.25 million (i.e. EUR 3.35 million more than in 2020).

The grant for sustainability reporting would co-finance up to 90% of eligible costs, in comparison to up to 60% of eligible cost for EFRAG’s work on financial reporting.

Further options to increase funding to EFRAG in the future are being assessed.

Last updated: 18 April 2023
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