Article 1Amendments to Regulation (EU) 2021/241Regulation (EU) 2021/241 is amended as follows:(1)in Article 4, paragraph 1 is replaced by the following:"1.In line with the six pillars referred in Article 3 of this Regulation, the coherence and synergies they generate, and in the context of the COVID-19 crisis, the general objective of the Facility shall be to promote the Union’s economic, social and territorial cohesion by improving the resilience, crisis preparedness, adjustment capacity and growth potential of the Member States, by mitigating the social and economic impact of that crisis, in particular on women, by contributing to the implementation of the European Pillar of Social Rights, by supporting the green transition, by contributing to the achievement of the Union’s 2030 climate targets set out in point (11) of Article 2 of Regulation (EU) 2018/1999, by complying with the objective of EU climate neutrality by 2050 and of the digital transition, and by increasing the resilience, security and sustainability of the Union’s energy system through the necessary reduction in dependence on fossil fuels and diversification of energy supplies at Union level, including by means of an increase in the uptake of renewables, in energy efficiency and in energy storage capacity, thereby contributing to the upward economic and social convergence, restoring and promoting sustainable growth and the integration of the economies of the Union, fostering high quality employment creation, and contributing to the strategic autonomy of the Union alongside an open economy and generating European added value.";(2)in Article 5, paragraph 2 is replaced by the following:"2.The Facility shall only support measures respecting the principle of "do no significant harm", which shall also apply to the measures in the REPowerEU chapters, unless otherwise specified in this Regulation.";(3)Article 14 is amended as follows:(a)in paragraph 3, the following point is added:"(d)where applicable, the reforms and investments in line with Article 21c.";(b)paragraph 4 is replaced by the following:"4.The loan support to the recovery and resilience plan of the Member State concerned shall not be higher than the difference between the total costs of the recovery and resilience plan, as revised where relevant, and the maximum financial contribution referred to in Article 11, including, where relevant, the revenue referred to in Article 21a as well as resources transferred from shared management programmes.";(c)paragraph 6 is replaced by the following:"6.By derogation from paragraph 5, subject to the availability of resources, in exceptional circumstances the amount of the loan support may be increased, considering the needs of the requesting Member State, as well as requests for loan support already submitted or planned to be submitted by other Member States, while applying the principles of equal treatment, solidarity, proportionality and transparency. To facilitate the application of those principles, Member States shall communicate to the Commission by 31 March 2023, whether they intend to request loan support. The Commission shall present to the European Parliament and to the Council, simultaneously, on equal terms and without undue delay, an overview of the intentions expressed by the Member States and the proposed way forward for the distribution of the available resources. That communication of the intention to request loan support shall not prejudice the ability of Member States to request loan support until 31 August 2023, including in the case of requests exceeding 6,8 % GNI, where the relevant conditions apply. It shall also not prejudice the entering into of the corresponding loan agreement after the adoption of the relevant Council implementing decision.";(4)in Article 17, paragraph 2 is replaced by the following:"2.Measures started from 1 February 2020 onwards shall be eligible provided that they comply with the requirements set out in this Regulation.However, the new reforms and investments referred to in Article 21c(1) shall only be eligible where they start from 1 February 2022 onwards.";(5)Article 18(4) is amended as follows:(a)the following point is inserted:"(ca)an explanation of how the REPowerEU chapter contributes to addressing energy poverty, including, where relevant, giving adequate priority to the needs of those affected by energy poverty, as well as to the reduction of vulnerabilities during the coming winter seasons;";(b)point (e) is replaced by the following:"(e)a qualitative explanation of how the measures in the recovery and resilience plan are expected to contribute to the green transition, including biodiversity, or to addressing the challenges resulting therefrom, whether they account for an amount that represents at least 37 % of the recovery and resilience plan’s total allocation and whether measures of that type in the REPowerEU chapter account for an amount that represents at least 37 % of the total estimated costs of measures included in that chapter, based on the methodology for climate tracking set out in Annex VI; that methodology shall be used accordingly for measures that cannot be directly assigned to an intervention field listed in Annex VI; the coefficients for support for the climate objectives may be increased up to a total amount of 3 % of the allocation of the recovery and resilience plan for individual investments to take account of accompanying reform measures that credibly increase their impact on the climate objectives as explained in the recovery and resilience plan;";(c)point (h) is replaced by the following:"(h)an indication of whether the measures included in the recovery and resilience plan comprise cross-border or multi-country projects, an explanation as to how the relevant measures in the REPowerEU chapter, including the measures addressing challenges identified in the Commission’s most recent needs assessment, have a cross-border or multi-country dimension or effect, and an indication of whether the total costs of those measures account for an amount that represents at least 30 % of the estimated costs of the REPowerEU chapter;";(d)point (q) is replaced by the following:"(q)for the preparation and, where available, for the implementation of the recovery and resilience plan, a summary of the consultation process, conducted in accordance with the national legal framework, of local and regional authorities, social partners, civil society organisations, youth organisations and other relevant stakeholders, and how the input of the stakeholders is reflected in the recovery and resilience plan, with that summary to be complemented, where a REPowerEU chapter has been included, by setting out the stakeholders consulted, by a description of the outcome of the consultation process as regards that chapter, and by an outline as to how the input received was reflected therein;";(6)Article 19(3) is amended as follows:(a)the following points are inserted:"(da)whether the REPowerEU chapter contains reforms and investments referred to in Article 21c that contribute effectively to energy security, the diversification of the Union’s energy supply, an increase in the uptake of renewables and energy efficiency, an increase of energy storage capacities or the necessary reduction of dependence on fossil fuels before 2030;(db)whether the REPowerEU chapter contains reforms and investments referred to in Article 21c which are expected to have a cross-border or multi-country dimension or effect;";(b)point (e) is replaced by the following:"(e)whether the recovery and resilience plan contains measures that effectively contribute to the green transition, including biodiversity, or to addressing the challenges resulting therefrom, whether they account for an amount which represents at least 37 % of the recovery and resilience plan’s total allocation and whether such measures in the REPowerEU chapter account for an amount which represents at least 37 % of the total estimated costs of the measures included in that chapter, based on the methodology for climate tracking set out in Annex VI; that methodology shall be used accordingly for measures that cannot be directly assigned to an intervention field listed in Annex VI; the coefficients for support for the climate objectives may be increased up to a total amount of 3 % of the allocation of the recovery and resilience plan for individual investments to take account of accompanying reform measures that credibly increase their impact on the climate objectives, subject to the agreement of the Commission;";(7)in Article 20(5), the following point is inserted:"(ca)a summary of the measures proposed in the REPowerEU chapter which have a cross-border or multi-country dimension or effect, including those measures addressing challenges identified in the Commission’s most recent needs assessment; where the estimated costs of those measures account for an amount that represents less than 30 % of the estimated costs of all measures included in the REPowerEU chapter, an explanation of the reasons therefor, in particular a demonstration that other measures included in the REPowerEU chapter better address the objectives set out in Article 21c(3) or that there are not enough realistic projects available which have cross-border or multi-country dimension or effect, in particular considering the lifetime of the Facility;";(8)the following Chapter is inserted after Chapter III:"CHAPTER IIIaREPower EU

Article 21aRevenue from the emission trading system under Directive 2003/87/EC1.EUR 20000000000 in current prices, obtained in accordance with Article 10e of Directive 2003/87/EC of the European Parliament and of the CouncilDirective 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32)., shall be made available as additional non-repayable financial support under the Facility for implementation under this Regulation to increase the resilience of the Union’s energy system through a decrease of dependence on fossil fuels and diversifying energy supplies at Union level. As provided for in Article 10e of Directive 2003/87/EC, those amounts shall constitute external assigned revenue in accordance with Article 21(5) of the Financial Regulation.2.The allocation share of the amount referred to in paragraph 1 available for each Member State shall be calculated on the basis of the indicators set out in the methodology in Annex IVa.3.The amount referred to in paragraph 1 shall be allocated exclusively to measures referred to in Article 21c, with the exception of measures referred to in Article 21c(3), point (a). It may also cover expenses referred to in Article 6(2).4.Commitment appropriations covering the amount referred to in paragraph 1 shall be made available automatically for that amount as of 1 March 2023.5.Each Member State may submit to the Commission a request for the allocation of an amount not exceeding its share by including in its plan the reforms and investments referred to in Article 21c and indicating their estimated costs.6.The Council implementing decision adopted pursuant to Article 20(1) shall lay down the amount of the revenue referred to in paragraph 1 of this Articleallocated to the Member State following the submission of a request pursuant to paragraph 5 of this Article. The corresponding amount shall be paid in instalments, subject to available funding, in accordance with Article 24, once the Member State concerned has satisfactorily fulfilled the milestones and targets identified in relation to the implementation of the measures referred to in Article 21c.

Article 21bResources from shared management programmes to support the REPowerEU objectives1.Within the resources allocated to them, Member States may request under the Common Provisions Regulation for 2021-2027 support for the objectives set out in Article 21c(3) of this Regulation from programmes supported by the European Regional Development Fund, the European Social Fund Plus and the Cohesion Fund, subject to the conditions set out in Article 26a of the Common Provisions Regulation for 2021-2027 and the Fund-specific Regulations. Such support shall be implemented in accordance with the Common Provisions Regulation for 2021-2027 and the Fund-specific Regulations.2.Resources may be transferred under Article 4a of Regulation (EU) 2021/1755 of the European Parliament and of the CouncilRegulation (EU) 2021/1755 of the European Parliament and of the Council of 6 October 2021 establishing the Brexit Adjustment Reserve (OJ L 357, 8.10.2021, p. 1)."; to support measures referred to in Article 21c of this Regulation.

Article 21cREPowerEU chapters in recovery and resilience plans1.Recovery and resilience plans submitted to the Commission after 1 March 2023 that require the use of additional funding under Articles 14, 21a or 21b, shall include a REPowerEU chapter containing measures and their corresponding milestones and targets. The measures in the REPowerEU chapter shall be either new reforms and investments, started from 1 February 2022 onwards, or the scaled-up part of reforms and investments included in the already adopted Council implementing decision for the Member State concerned.2.By derogation from paragraph 1, Member States that are subject to a decrease in the maximum financial contribution in accordance with Article 11(2) may also include in the REPowerEU chapters measures included in the already adopted Council implementing decisions without having them scaled-up, up to an amount of estimated costs equal to that decrease.3.Reforms and investments in the REPowerEU chapter shall aim to contribute to at least one of the following objectives:(a)improving energy infrastructure and facilities to meet immediate security of supply needs for gas, including liquified natural gas, notably to enable diversification of supply in the interest of the Union as a whole; measures concerning the oil infrastructure and facilities necessary to meet immediate security of supply needs may be included in the REPowerEU chapter of a Member State only where that Member State has been subject to the exceptional temporary derogation in Article 3m(4) of Regulation (EU) No 833/2014 by 1 March 2023, due to its specific dependence on crude oil and its geographical situation;(b)boosting energy efficiency in buildings and critical energy infrastructure, decarbonising industry, increasing the production and uptake of sustainable biomethane and of renewable or fossil-free hydrogen, and increasing the share and accelerating the deployment of renewable energy;(c)addressing energy poverty;(d)incentivising reduction of energy demand;(e)addressing internal and cross-border energy transmission and distribution bottlenecks, supporting electricity storage and accelerating the integration of renewable energy sources, and supporting zero-emission transport and its infrastructure, including railways;(f)supporting the objectives set out in points (a) to (e) through an accelerated requalification of the workforce towards green and related digital skills, as well as through support of the value chains in critical raw materials and technologies linked to the green transition.4.The REPowerEU chapter shall also contain an explanation as to how the measures in that chapter are coherent with the efforts of the Member State concerned to achieve the objectives set out in paragraph 3, taking into account the measures included in the already adopted Council implementing decision, as well as an explanation of the overall contribution of those measures and other nationally funded and Union-funded complementary or accompanying measures to those objectives.5.The estimated costs of the reforms and investments in the REPowerEU chapter shall not be taken into account for the calculation of the recovery and resilience plan’s total allocation under Article 18(4), point (f), and Article 19(3), point (f).6.By derogation from Article 5(2), Article 17(4), Article 18(4), point (d), and Article 19(3), point (d), the principle of "do no significant harm" shall not apply to the reforms and investments under paragraph 3, point (a), of this Article, subject to a positive assessment by the Commission that the following requirements are met:(a)the measure is necessary and proportionate to meet immediate security of supply needs in accordance with paragraph 3, point (a), of this Article taking into account cleaner feasible alternatives and the risk of lock-in effects;(b)the Member State concerned has undertaken satisfactory efforts to limit the potential harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, where feasible, and to mitigate harm through other measures, including the measures in the REPowerEU chapter;(c)the measure does not jeopardise the achievement of the Union’s 2030 climate targets and the objective of EU climate neutrality by 2050, based on qualitative considerations;(d)the measure is planned to be in operation by 31 December 2026.7.When carrying out the assessment referred to in paragraph 6, the Commission shall act in close cooperation with the Member State concerned. The Commission may make observations or request additional information. The Member State concerned shall provide the requested additional information.8.The revenue made available in accordance with Article 21a shall not contribute to reforms and investments under paragraph 3, point (a), of this Article.9.The total estimated costs of the measures subject to a positive assessment by the Commission under paragraph 6 shall not exceed 30 % of the total estimated costs of the measures included in the REPowerEU chapter.

Article 21dREPowerEU pre-financing1.The recovery and resilience plan containing a REPowerEU chapter may be accompanied by a request for pre-financing. Subject to the adoption by the Council of the implementing decision referred to in Article 20(1) and Article 21(2) by 31 December 2023, the Commission shall make up to two pre-financing payments for a total amount of up to 20 % of the additional funding requested by the Member State concerned to finance its REPowerEU chapter, under Articles 7, 12, 14, 21a and 21b, while complying with the principles of equal treatment among Member States and proportionality.2.With regard to resources transferred under the conditions set out in Article 26 of Regulation (EU) 2021/1060, each of the two sets of pre-financing payments shall not exceed EUR 1000000000.3.By derogation from Article 116(1) of the Financial Regulation, the Commission shall make the pre-financing payments, to the extent possible and subject to available resources, as follows:(a)as regards the first pre-financing payment, within two months of the conclusion, by the Commission and the Member State concerned, of the agreement constituting a legal commitment as referred to in Article 23;(b)as regards the second pre-financing payment, within 12 months of the entry into force of the Council implementing decision approving the assessment of the recovery and resilience plan including a REPowerEU chapter.4.A pre-financing payment in respect of resources referred to in paragraph 2 shall be made following the receipt of information from all Member States on whether they intend to request pre-financing of such resources, and, where necessary, on a pro-rata basis to respect the total ceiling of EUR 1000000000.5.In cases of pre-financing under paragraph 1, the financial contribution referred to in Article 20(5), point (a), and, where applicable, the amount of the loan to be paid as referred to in Article 20(5), point (h), shall be adjusted proportionally.

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Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).Regulation (EU) 2021/1755 of the European Parliament and of the Council of 6 October 2021 establishing the Brexit Adjustment Reserve (OJ L 357, 8.10.2021, p. 1).";(9)in Article 23, paragraph 1 is replaced by the following:"1.Once the Council has adopted an implementing decision as referred to in Article 20(1), the Commission shall conclude an agreement with the Member State concerned constituting an individual legal commitment within the meaning of the Financial Regulation. For each Member State the legal commitment shall not exceed the total of the financial contribution referred to in point (a) of Article 11(1) for 2021 and 2022, the updated financial contribution referred to in Article 11(2) for 2023 and the amount calculated under Article 21a(2).";(10)the following Article is inserted:

"Article 25aTransparency with regard to final recipients1.Each Member State shall create an easy-to-use public portal containing data on the 100 final recipients receiving the highest amount of funding for the implementation of measures under the Facility. Member States shall update those data twice a year.2.For the final recipients referred to in paragraph 1, the following information shall be published:(a)in the case of a legal person, the recipient’s full legal name and VAT identification number or tax identification number, where available, or another unique identifier established at the national level,(b)in the case of a natural person, the first and last name of the recipient;(c)the amount received by each recipient, as well as the associated measures for which a Member State has received funding under the Facility.3.The information referred to in Article 38(3) of the Financial Regulation shall not be published.4.Where personal data are published, the information referred to in paragraph 2 shall be removed by the Member State concerned two years after the end of the financial year in which the funding has been paid to the final recipient.5.The Commission shall centralise the Member States’ public portals and publish the data referred to in paragraph 1 in the recovery and resilience scoreboard referred to in Article 30.";

(11)in Article 26(1), the following point is added:"(h)the progress of the implementation of the reforms and investments in the REPowerEU chapters.";(12)in Article 29, paragraph 1 is replaced by the following:"1.The Commission shall monitor the implementation of the Facility and measure the achievement of the objectives set out in Article 4, including the implementation of the reforms and investments in the REPowerEU chapters and their contribution to the objectives set out in Article 21c(3). The monitoring of implementation shall be targeted and proportionate to the activities carried out under the Facility.";(13)in Article 30, paragraph 3 is replaced by the following:"3.The Scoreboard shall also display the progress of the implementation of the recovery and resilience plans in relation to the common indicators referred to in Article 29(4). It shall also include the progress of the implementation of the measures in the REPowerEU chapters and their contribution to the objectives set out in Article 21c(3), and display information on the reduction of the Union imports of fossil fuels and the diversification of energy supplies.";(14)Article 31 is amended as follows:(a)paragraph 3 is amended as follows:(i)the introductory sentence is replaced by the following:"3.The annual report shall also include the following information:";(ii)the following points are added:"(d)an overview of measures having a cross-border or multi-country dimension or effect included in all REPowerEU chapters, their total estimated costs and an indication of whether the total costs of those measures account for an amount that represents at least 30 % of the total estimated costs of measures included in all REPowerEU chapters;(e)the number of measures falling under Article 21c(3), point (a), included in all REPowerEU chapters, and their total estimated costs;(f)the progress of the implementation of the reforms and investments in the REPowerEU chapter, through a dedicated section which includes lessons learned after analysing the data available on final recipients and examples of best practices.";(b)the following paragraph is inserted:"3a.The information referred to in points (d) and (e) of paragraph 3 shall only be included in the annual report following the approval of the assessment of all the recovery and resilience plans containing a REPowerEU chapter.";(15)in Article 32, paragraph 2 is replaced by the following:"2.The evaluation report shall, in particular, assess to which extent the objectives have been achieved, the efficiency of the use of the resources and the European added value. It shall also consider the continued relevance of all objectives and actions as well as assess the implementation of the REPowerEU chapters and their contributions to the objectives set out in Article 21c(3).";(16)the text set out in Annex I to this Regulation is inserted as Annex IVa;(17)Annex V is amended in accordance with Annex II to this Regulation.

Article 2Amendments to Regulation (EU) No 1303/2013The following Article is inserted in Regulation (EU) No 1303/2013:

"Article 25bExceptional measures for the use of the Funds to support SMEs particularly affected by energy price increases, vulnerable households, and short-time work and equivalent schemes1.As an exceptional measure strictly necessary to address the energy crisis resulting from the impact of Russia's war of aggression against Ukraine, the ERDF may support the financing of working capital in the form of grants to SMEs particularly affected by energy price increases, under the investment priority referred to in Article 5(3), point (d), of Regulation (EU) No 1301/2013. SMEs particularly affected by energy price increases are those eligible to receive aid for additional costs due to exceptionally severe increases in natural gas and electricity prices under the temporary crisis framework for State-aid measures.As a further exceptional measure strictly necessary to address the energy crisis resulting from the impact of Russia's war of aggression against Ukraine, the ESF may support vulnerable households to help them meet their energy consumption costs, even without any corresponding active measures, under the investment priority referred to in Article 3(1), point (b)(iv), of Regulation (EU) No 1304/2013.2.Operations providing the support referred to in paragraph 1 may be financed either by the ERDF or the ESF on the basis of the rules applicable to the other Fund. In addition, where such operations contribute to one of the investment priorities referred to in paragraph 1, they may be financed by the Cohesion Fund on the basis of the rules applicable either to the ERDF or the ESF. Furthermore, the ERDF and the Cohesion Fund may also finance access to the labour market by maintaining the jobs of employees and the self-employed through short-time work and equivalent schemes, on the basis of the rules applicable to the ESF under the investment priority referred to in Article 3(1), point (a)(v), of Regulation (EU) No 1304/2013.3.Operations providing the support referred to in paragraphs 1 and 2 shall be programmed exclusively under a new dedicated priority axis. The dedicated priority axis may comprise funding from the ERDF and the ESF from different categories of regions and from the Cohesion Fund. Support provided by REACT-EU resources, within the meaning of Article 92a, shall be programmed under a separate dedicated priority axis contributing to the investment priority referred to in Article 92b(9), third subparagraph.The amounts allocated to the dedicated priority axes referred to in the first subparagraph of this paragraph shall not exceed 10 % of the total ERDF, ESF and Cohesion Fund resources, including REACT-EU resources under the Investment for growth and jobs goal, allocated to the Member State concerned for the 2014-2020 programming period, as laid down in the relevant Commission implementing acts. By way of derogation from the first and second subparagraphs of Article 120(3), a co-financing rate of 100 % shall be applied to the dedicated priority axis or axes.4.Requests for the amendment of an existing operational programme submitted by a Member State aiming at introducing a dedicated priority axis or axes referred to in paragraph 3 shall be duly justified and accompanied by the revised programme. The elements listed in Article 96(2), point (b)(v) and (vii), shall not be required in the description of the priority axis or axes in the revised operational programme.5.By way of derogation from Article 65(9), expenditure for operations supporting the financing of working capital in the form of grants in SMEs particularly affected by energy price increases, for operations providing support to vulnerable households to help them meet their energy consumption costs, and for short-time work and equivalent schemes shall be eligible from 1 February 2022. Article 65(6) shall not apply in respect of such operations and schemes.6.By way of derogation from Article 125(3), point (b), operations supporting the financing of working capital in the form of grants to SMEs particularly affected by energy price increases, operations providing support to vulnerable households to help them meet their energy consumption costs, and short-time work and equivalent schemes may be selected for support by the ERDF, the ESF or the Cohesion Fund prior to the approval of the revised programme.7.For operations supporting the financing of working capital in the form of grants to SMEs particularly affected by energy price increases implemented outside the programme area but within the Member State, only point (d) of Article 70(2), first subparagraph, shall apply. By way of derogation from Article 70(4), to operations supported by the ESF providing support to vulnerable households to help them meet their energy consumption costs and to short-time work and equivalent schemes implemented outside the programme area but within the Member State, Article 70(2), first subparagraph, point (d), shall also apply.8.The total payments by the Commission to Member States from the ERDF, the ESF, and the Cohesion Fund, excluding REACT-EU resources, for the dedicated priorities referred to in paragraph 3 shall not exceed EUR 5000000000 in 2023. Amounts shall be paid subject to available funding under the ceilings of the multiannual financial framework 2014-2020.9.This Article shall not apply to programmes under the European territorial cooperation goal.".

Article 3Amendments to Regulation (EU) 2021/1060Regulation (EU) 2021/1060 is amended as follows:(1)in Article 22(3), point (g), point (i) is replaced by the following:"(i)a table specifying the total financial allocations for each of the Funds and, where applicable, for each category of region for the whole programming period and by year, including any amounts transferred pursuant to Article 26 or 27, and the Member State’s request for supporting measures contributing to the objectives set out in Article 21c(3) of Regulation (EU) 2021/241 of the European Parliament and of the CouncilRegulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17).";;

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Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17).";(2)in Article 24, the following paragraph is added:"8.For programmes supported by the ERDF, the ESF+ or the Cohesion Fund the Member State may submit an amendment of a programme, in accordance with this Article, requesting that measures contributing to the objectives set out in Article 21c(3) of Regulation (EU) 2021/241 are included in a programme, where such support contributes to the specific objectives of the Fund concerned as set out in Fund-specific Regulations. The amounts requested for such measures shall be programmed under a specific objective in accordance with the Fund-specific Regulations and included in a priority. Those amounts overall shall not exceed the limit of 7,5 % of the initial national allocation for each Fund.";(3)the following Article is inserted:

"Article 26aSupport for the objectives in Article 21c(3) of Regulation (EU) 2021/2411.Member States submitting to the Commission, in accordance with Regulation (EU) 2021/241, recovery and resilience plans which contain a REPowerEU chapter may request through an amendment of a programme under Article 24 of this Regulation that up to 7,5 % of their initial national allocation under the ERDF, the ESF+ and the Cohesion Fund be included in priorities contributing to the objectives set out in Article 21c(3) of Regulation (EU) 2021/241, provided that such support contributes to the specific objectives of the Fund concerned as set out in the Fund-specific Regulations. The possibility of such a request shall be without prejudice to the possibility of transfer of resources envisaged under Article 26 of this Regulation.2.Resources requested by Member States under this Article shall be implemented in accordance with this Regulation and the Fund-specific Regulations.3.Requests for an amendment of a programme shall set out the total amount of the resources contributing to the objectives set out in Article 21c(3) of Regulation (EU) 2021/241 for each year by Fund and by category of region, where applicable."

;(4)Annex V is amended in accordance with Annex III to this Regulation.

Article 4Amendments to Regulation (EU) 2021/1755In Regulation (EU) 2021/1755, the following Article is inserted:

"Article 4aTransfer to the Recovery and Resilience Facility1.By 1 March 2023, Member States may submit to the Commission a reasoned request to transfer to the Recovery and Resilience Facility established by Regulation (EU) 2021/241 of the European and of the CouncilRegulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing a Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17).". all or part of the amounts of their provisional allocation set out in the implementing act of the Commission referred to in Article 4(5). If the transfer request is approved, the Commission shall amend the implementing act in order to reflect the adjusted amounts following the transfer.2.Where the transfer affects the instalments already paid or to be paid as pre-financing, the Commission shall amend the implementing act referred to in Article 9(1) accordingly for the Member State concerned. Where appropriate, the Commission shall recover, in accordance with the Financial Regulation, all or part of the 2021 and 2022 instalments paid to that Member State as pre-financing. In that case the recovered amounts shall be transferred to the Recovery and Resilience Facility for the exclusive benefit of the Member State concerned.3.Where a Member State chooses to transfer all or part of its provisional allocation to the Recovery and Resilience Facility in accordance with this Article, the amounts to be spent for the purposes of Article 4(4), first subparagraph, shall be proportionately reduced.4.Where a Member State chooses to transfer all of its provisional allocation to the Recovery and Resilience Facility, Article 10(1) shall not apply.5.Article 10(2) shall not apply to the amounts transferred to the Recovery and Resilience Facility.

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Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing a Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17).".

Article 5Amendments to Directive 2003/87/ECIn Directive 2003/87/EC, the following Article is inserted:

"Article 10eRecovery and Resilience Facility1.As an extraordinary and one-time measure, until 31 August 2026, the allowances auctioned pursuant to paragraphs 2 and 3 of this Article shall be auctioned until the total amount of revenue obtained from such auctioning has reached EUR 20 billion. That revenue shall be made available to the Recovery and Resilience Facility established by Regulation (EU) 2021/241 of the Parliament and of the CouncilRegulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing a Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17). and shall be implemented in accordance with the provisions of that Regulation.2.By way of derogation from Article 10a(8), until 31 August 2026, a part of the allowances referred to in that paragraph shall be auctioned to support the objectives set out in Article 21c(3), points (b) to (f), of Regulation (EU) 2021/241, until the amount of revenue obtained from such auctioning has reached EUR 12 billion.3.Until 31 August 2026, a number of allowances from the quantity which would otherwise be auctioned from 1 January 2027 to 31 December 2030 by the Member States under Article 10(2), point (a), shall be auctioned to support the objectives set out in Article 21c(3), points (b) to (f), of Regulation (EU) 2021/241 until the amount of revenue obtained from such auctioning has reached EUR 8 billion. Those allowances shall, in principle, be auctioned in equal annual volumes over the relevant period.4.By way of derogation from Article 1(5a) of Decision (EU) 2015/1814, until 31 December 2030, 27 million unallocated allowances in the market stability reserve from the total quantity which would otherwise be invalidated over that period shall be used to support innovation, as referred to in Article 10a(8), first subparagraph, of this Directive.5.The Commission shall ensure that the allowances to be auctioned under paragraphs 2 and 3, including, where appropriate, for pre-financing payments in accordance with Article 21d of Regulation (EU) 2021/241, are auctioned in accordance with the principles and modalities laid down in Article 10(4) of this Directive and in accordance with Article 24 of Commission Regulation (EU) No 1031/2010Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a system for greenhouse gas emission allowances trading within the Union (OJ L 302, 18.11.2010, p. 1). to ensure an adequate amount of innovation fund resources in the period from 2023 to 2026. The period for auctioning referred to in this Article shall be reviewed one year after its start in the light of the impact of the auctioning provided for in this Article on the carbon market and price.6.The EIB shall be the auctioneer for the allowances to be auctioned pursuant to this Article on the auction platform appointed pursuant to Article 26(1) of Regulation (EU) No 1031/2010 and shall provide the revenues generated from the auctioning to the Commission.7.The revenues generated from the auctioning of allowances shall constitute external assigned revenue in accordance with Article 21(5) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the CouncilRegulation (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)."..

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Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing a Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17).Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a system for greenhouse gas emission allowances trading within the Union (OJ L 302, 18.11.2010, p. 1).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).".

Article 6Entry into forceThis Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 27 February 2023.For the European ParliamentThe PresidentR. MetsolaFor the CouncilThe PresidentJ. RoswallANNEX IIn Regulation (EU) 2021/241, the following Annex is inserted:

"".

ANNEX IVaThis Annex sets out the methodology for calculating the allocation share of the resources in the form of additional non-repayable financial support under the Facility referred to in Article 21a(1) available for each Member State. The method takes into account, with regard to each Member State:the population;the inverse of the GDP per capita;the gross fixed capital formation price deflator;the share of fossil fuels in gross inland energy consumption.To avoid excessive concentration of resources:the inverse of the GDP per capita is capped at a maximum of 160 % of the Union weighted average;the inverse of the GDP per capita is capped at a maximum of 55 % of the Union weighted average if the GDP per capita of the Member State concerned is above 130 % of EU-27 average;a minimum allocation share is set at 0,15 %;a maximum allocation share is set at 13,80 %.The allocation key applied to the amount referred to in Article 21a(1), ρi is defined as follows: 32023R0435_en_img_1

where Member States i to z are the Member States benefitting from a minimum allocation share and Member States i to q are the Member States benefitting from a maximum allocation share.where 32023R0435_en_img_2

where

and

and

,where

for Member States i with 32023R0435_en_img_7

and

for Member States i with 32023R0435_en_img_9

DefiningAll data in this Regulation is from Eurostat. Cut-off date 20 September 2022 for historical data used for the application of the allocation key in this annex. Fossil fuels include solid fossil fuels, manufactured gases, peat and peat products, oil shale and oil sands, oil and petroleum products (excluding biofuel portion), natural gas and non-renewable waste.:popi,2021 as the 2021 total population in Member State i;popEU,2021 as the 2021 total population in the EU-27 Member States; 32023R0435_en_img_10

as the 2021 weighted average of the nominal GDP per capita of the EU-27 Member States; 32023R0435_en_img_11

as the 2021 nominal GDP per capita of Member State i;FFGICi,2020 as the 2020 share of fossil fuels in gross inland energy consumption of Member State i;FFGICEU,2020 as the 2020 weighted average share of fossil fuels in gross inland energy consumption of the EU-27 Member States; 32023R0435_en_img_12

as the ratio of 2022 Q2 gross fixed capital formation price index (implicit deflator, 2015=100, national currency, seasonally and calendar adjusted data) of Member State i and 2021 Q2 Gross fixed capital formation price index (implicit deflator, 2015=100, national currency, seasonally and calendar adjusted data) of Member State i; 32023R0435_en_img_13

as the ratio of 2022 Q2 gross fixed capital formation price index (implicit deflator, 2015=100, national currency, seasonally and calendar adjusted data) of the EU-27 aggregate and 2021 Q2 gross fixed capital formation price index (implicit deflator, 2015=100, national currency, seasonally and calendar adjusted data) of the EU-27 aggregate.The application of the methodology to the amount referred to in Article 21a(1) will result in the following share and amount per Member State:

Member State	Share as % of total	Amount (in EUR 1000, current prices)
Belgium	1,41 %	282139
Bulgaria	2,40 %	480047
Czechia	3,41 %	681565
Denmark	0,65 %	130911
Germany	10,45 %	2089555
Estonia	0,42 %	83423
Ireland	0,45 %	89598
Greece	3,85 %	769222
Spain	12,93 %	2586147
France	11,60 %	2320955
Croatia	1,35 %	269441
Italy	13,80 %	2760000
Cyprus	0,26 %	52487
Latvia	0,62 %	123983
Lithuania	0,97 %	194020
Luxembourg	0,15 %	30000
Hungary	3,51 %	701565
Malta	0,15 %	30000
Netherlands	2,28 %	455042
Austria	1,05 %	210620
Poland	13,80 %	2760000
Portugal	3,52 %	704420
Romania	7,00 %	1399326
Slovenia	0,58 %	116910
Slovakia	1,83 %	366959
Finland	0,56 %	112936
Sweden	0,99 %	198727
EU27	100,00 %	20000000

ANNEX IIAnnex V of Regulation (EU) 2021/241 is amended as follows:(1)In section 2, point 2.5, the first subparagraph is replaced by the following:"2.5.The recovery and resilience plan contains measures that effectively contribute to the green transition, including biodiversity, or to addressing the challenges resulting therefrom, that account for an amount which represents at least 37 % of the recovery and resilience plan’s total allocation and such measures in the REPowerEU chapter account for an amount which represents at least 37 % of the total estimated costs of the measures in the REPowerEU chapter, based on the methodology for climate tracking set out in Annex VI; that methodology shall be used accordingly for measures that cannot be directly assigned to an intervention field listed in Annex VI; the coefficients for support for the climate objectives may be increased up to a total amount of 3 % of the allocation of the recovery and resilience plan for individual investments to take account of accompanying reform measures that credibly increase their impact on the climate objectives, subject to the agreement of the Commission.";(2)in section 2, the following points are added:"2.12.The measures referred to in Article 21c are expected to effectively contribute to energy security, the diversification of the Union’s energy supply, an increase in the uptake of renewables and in energy efficiency, an increase of energy storage capacities or the necessary reduction of dependence on fossil fuels before 2030.When assessing the measures referred to in Article 21c under this criterion, the Commission shall take into account the specific challenges and the additional funding under the Facility available to the Member State concerned. The Commission shall also take into account the following elements:Scopethe implementation of the envisaged measures is expected to effectively contribute to the improvement of energy infrastructure and facilities to meet immediate security of supply needs for gas, including liquified natural gas, or oil where the derogation under Article 21c(3), point (a), applies, notably to enable diversification of supply in the interest of the Union as a whole;orthe implementation of the envisaged measures is expected to effectively contribute to boosting energy efficiency in buildings and critical energy infrastructure, decarbonising industry, increasing production and uptake of sustainable biomethane and of renewable or fossil-free hydrogen, and increasing the share and accelerating the deployment of renewable energy;orthe implementation of the envisaged measures is expected to effectively contribute to addressing energy poverty and, where relevant, give adequate priority to the needs of those affected by energy poverty as well as to the reduction of vulnerabilities during the coming winter seasons;orthe implementation of the envisaged measures is expected to effectively contribute to incentivising reduction of energy demand;orthe implementation of the envisaged measures is expected to address internal and cross-border energy transmission and distribution bottlenecks, supporting electricity storage and accelerating the integration of renewable energy sources, and supporting zero emission transport and its infrastructure, including railways;orthe implementation of the envisaged measures is expected to effectively contribute to supporting the objectives set out in Article 21c(3), points (a) to (e), through an accelerated requalification of the workforce towards green and related digital skills, as well as support of the value chains in critical raw materials and technologies linked to the green transition;andthe envisaged measures are coherent with the efforts of the Member State concerned to achieve the objectives set out in Article 21c(3), taking into account the measures included in the already adopted Council implementing decision, as well as other nationally funded and Union-funded complementary or accompanying measures to the objectives set out in Article 21c(3).RatingA – to a large extentB – to a moderate extentC – to a small extent2.13.The measures referred to in Article 21c are expected to have a cross-border or multi-country dimension or effect.The Commission shall take into account the following elements for the assessment under this criterion:Scopethe implementation at the national level of the envisaged measures is expected to contribute to securing energy supply in the Union as a whole, including by addressing challenges identified in the Commission’s most recent needs assessment, in line with the objectives set out in Article 21c(3), taking into account the financial contribution available to the Member State concerned and its geographical position;orthe implementation of the envisaged measures is expected to contribute to reducing dependency on fossil fuels and to reducing energy demand.RatingA – to a large extentB – to a moderate extentC – to a small extent";(3)Section 3 is amended as follows:(a)the indent that reads "— an A for criteria 2.2, 2.3, 2.5 and 2.6" is replaced by "— an A for criteria 2.2, 2.3, 2.5, 2.6 and 2.12";(b)the indent that reads "— not an A in criteria 2.2, 2.3, 2.5 and 2.6" is replaced by "— not an A in criteria 2.2, 2.3, 2.5, 2.6 and 2.12".ANNEX IIIAnnex V of Regulation (EU) 2021/1060 is amended as follows:(1)the text under point 3 is replaced by the following:"Reference: points (g)(i), (ii) and (iii) of Article 22(3), Article 112(1), (2) and (3), and Articles 14, 26 and 26a CPR";(2)point 3.1 is amended as follows:(a)The first paragraph and unnumbered table are replaced by the following:"3.1Transfers and contributionsApplicable only to programme amendments in accordance with Articles 14, 26 and 26a, except for complementary transfers to the JTF in accordance with Article 27 CPR. Transfers shall not affect the annual breakdown of financial appropriations at the MFF level for a Member State.Reference: Articles 14, 26, 26a and 27 CPR

Indicate if the programme amendment contributes, in accordance with Article 26a of this Regulation, to the objectives set out in Article 21c(3) of Regulation (EU) 2021/241. If yes, indicate the additional amount by Fund, year and category of region at programme level in Table 21.";

Programme amendment related to	☐contribution to InvestEU
	☐transfer to instruments under direct or indirect management
	☐transfer between ERDF, ESF+, Cohesion Fund or to another Fund or Funds
	☐Funds contributing to the objectives set out in Article 21c(3) of Regulation (EU) 2021/241

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Applicable only to programme amendments in accordance with Articles 14, 26 and 26a, except for complementary transfers to the JTF in accordance with Article 27 CPR. Transfers shall not affect the annual breakdown of financial appropriations at the MFF level for a Member State.Indicate if the programme amendment contributes, in accordance with Article 26a of this Regulation, to the objectives set out in Article 21c(3) of Regulation (EU) 2021/241. If yes, indicate the additional amount by Fund, year and category of region at programme level in Table 21.";(b)the following table is inserted after table 17B:

"Table 21: Resources contributing to the objectives set out in Article 21c(3) of Regulation (EU) 2021/241

Fund	Category of region	2022	2023	2024	2025	2026	2027	Total
ERDF	More developed
	Transition
	Less developed
Total
ESF+	More developed
	Transition
	Less developed
Total
Cohesion Fund	N/A"
Total

Regulation (EU) 2023/435 of the European Parliament and of the Council of 27 February 2023 amending Regulation (EU) 2021/241 as regards REPowerEU chapters in recovery and resilience plans and amending Regulations (EU) No 1303/2013, (EU) 2021/1060 and (EU) 2021/1755, and Directive 2003/87/EC