Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 years climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

5.  In order for an activity to be considered as an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, the economic operator demonstrates, through an assessment of current and future climate risks, including uncertainty and based on robust data, that the activity provides a technology, product, service, information, or practice, or promotes their uses with one of the following primary objectives:

(a)  increasing the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  contributing to adaptation efforts of other people, of nature, of cultural heritage, of assets and of other economic activities.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

1.  Afforestation plan and subsequent forest management plan or equivalent instrument

1.1.  The area on which the activity takes place is covered by an afforestation plan of a duration of at least five years, or the minimum period prescribed in national law, developed prior to the start of the activity, and continuously updated until this area matches the definition of forest as set out in national law or where not available, is in line with the FAO definition of forest.

The afforestation plan contains all elements required by the national law relating to environmental impact assessment of afforestation.

1.2.  Preferably through the afforestation plan, or if information is missing, through any other document, detailed information is provided on the following points:

(a)  description of the area according to its gazetting in the land registry;

(b)  site preparation and its impacts on pre-existing carbon stocks, including soils and above-ground biomass, in order to protect land with high carbon stock (6);

(c)  management goals, including major constraints;

(d)  general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle;

(e)  definition of the forest habitat context, including main existing and intended forest tree species, and their extent and distribution;

(f)  compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions;

(g)  measures deployed to establish and maintain the good condition of forest ecosystems;

(h)  consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law);

(i)  assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection and adaptation against residual risks;

(j)  assessment of impact on food security;

(k)  all DNSH criteria relevant to afforestation.

1.3.  When the area becomes a forest, the afforestation plan is followed by a subsequent forest management plan or an equivalent instrument, as set out in national law or, where national law does not define a forest management plan or equivalent instrument, as referred to in the FAO definition of ‘forest area with long-term forest management plan’ (7). The forest management plan or the equivalent instrument covers a period of 10 years or more and is continuously updated.

1.4.  Information is provided on the following points that are not already documented in the forest management plan or equivalent system:

(a)  management goals, including major constraints (8);

(b)  general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle;

(c)  definition of the forest habitat context, including main existing and intended forest tree species, and their extent and distribution;

(d)  definition of the area according to its gazetting in the land registry;

(e)  compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions;

(f)  measures deployed to maintain the good condition of forest ecosystems;

(g)  consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law);

(h)  assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection and adaptation against residual risks

(i)  all DNSH criteria relevant to forest management.

1.5.  The activity follows the best afforestation practices laid down in national law, or, where no such best afforestation practices have been laid down in national law, the activity complies with one of the following criteria:

(a)  the activity complies with Delegated Regulation (EU) No 807/2014;

(b)  the activity follows the ‘Pan-European Guidelines for Afforestation and Reforestation with a special focus on the provisions of the UNFCCC’ (9).

1.6.  The activity does not involve the degradation of land with high carbon stock (10).

1.7.  The management system associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010.

1.8.  The afforestation plan and the subsequent forest management plan or equivalent instrument provides for monitoring that ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area.

2.  Audit

Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and the DNSH criteria are verified by either of the following:

(a)  the relevant national competent authorities;

(b)  an independent third-party certifier, at the request of national authorities or the operator of the activity.

In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit.

The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity.

3.  Group assessment

The compliance with the DNSH criteria may be checked:

(a)  at the level of the forest sourcing area (11) level as defined by Directive (EU) 2018/2001;

(b)  at the level of a group of forest holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

Detailed information referred to in point 1.2. (i) includes provisions to comply with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

The use of pesticides is reduced and alternative approaches or techniques, which may include non-chemical alternatives to pesticides, are favoured, in accordance with Directive 2009/128/EC, with exception of occasions where the use of pesticides is needed to control outbreaks of pests and of diseases.

The activity minimises the use of fertilisers and does not use manure. The activity complies with Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in Annex I, part A, of Regulation (EU) 2019/1021 (12), the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO Recommended Classification of Pesticides by Hazard (13). The activity complies with the relevant national law on active ingredients.

Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs.

(6)  Protection and restoration of biodiversity and ecosystems

In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas.

There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law.

Detailed information referred to in points 1.2(k) (Afforestation plan) and 1.4(i) (Forest management plan or equivalent system) includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

(a)  ensuring the good conservation status of habitat and species, maintenance of typical habitat species;

(b)  excluding the use or release of invasive species;

(c)  excluding the use of non-native species unless it can be demonstrated that:

(i)  the use of the forest reproductive material leads to favourable and appropriate ecosystem conditions (such as climate, soil criteria, and vegetation zone, forest fire resilience);

(ii)  the native species currently present on the site are not anymore adapted to projected climatic and pedo-hydrological conditions;

(d)  ensuring the maintenance and improvement of physical, chemical and biological quality of the soil;

(e)  promoting biodiversity-friendly practices that enhance forests’ natural processes;

(f)  excluding the conversion of high-biodiverse ecosystems into less biodiverse ones;

(g)  ensuring the diversity of associated habitats and species linked to the forest;

(h)  ensuring the diversity of stand structures and maintenance or enhancing of mature stage stands and dead wood.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

5.  In order for an activity to be considered as an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, the economic operator demonstrates, through an assessment of current and future climate risks, including uncertainty and based on robust data, that the activity provides a technology, product, service, information, or practice, or promotes their uses with one of the following primary objectives:

(a)  increasing the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  contributing to adaptation efforts of other people, of nature, of cultural heritage, of assets and of other economic activities.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

1.  Forest management plan or equivalent instrument

1.1.  The activity takes place on area that is subject to a forest management plan or an equivalent instrument, as set out in national law or, where national law does not define a forest management plan or equivalent instrument, as referred to in the FAO definition of ‘forest area with long-term forest management plan’ (6).

The forest management plan or the equivalent instrument covers a period of 10 years or more, and is continuously updated.

1.2.  Information is provided on the following points that are not already documented in the forest management plan or equivalent system:

(a)  management goals, including major constraints (7);

(b)  general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle;

(c)  definition of the forest habitat context, including main existing and intended forest tree species, and their extent and distribution;

(d)  definition of the area according to its gazetting in the land registry;

(e)  compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions;

(f)  measures deployed to maintain the good condition of forest ecosystems;

(g)  consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law);

(h)  assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection and adaptation against residual risks;

(i)  all DNSH criteria relevant to forest management.

1.3.  The sustainability of the forest management systems, as documented in the plan referred to in point 1.1, is ensured by choosing the most ambitious of the following approaches:

(a)  the forest management matches the applicable national definition of sustainable forest management;

(b)  the forest management matches the Forest Europe definition (8) of sustainable forest management and complies with the Pan-European Operational Level Guidelines for Sustainable Forest Management (9);

(c)  the management system in place complies with the forest sustainability criteria laid down in Article 29(6) of Directive (EU) 2018/2001, and as of the date of its application with the implementing act on operational guidance for energy from forest biomass adopted under Article 29(8) of that Directive.

1.4.  The activity does not involve the degradation of land with high carbon stock (10).

1.5.  The management system associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010.

1.6.  The forest management plan or equivalent instrument provides for monitoring which ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area.

2.  Audit

Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and the DNSH criteria are verified by either of the following:

(a)  the relevant national competent authorities;

(b)  an independent third-party certifier, at the request of national authorities or the operator of the activity.

In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit.

The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity.

3.  Group assessment

The compliance with the DNSH criteria may be checked:

(a)  at the level of the forest sourcing area (11) as defined by Directive (EU) 2018/2001;

(b)  at the level of a group of holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

Detailed information referred to in point 1.2. (i) includes provisions to comply with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

The silvicultural change induced by the activity on the area covered by the activity is not likely to result in a significant reduction of sustainable supply of primary forest biomass suitable for the manufacturing of wood products with long-term circularity potential. This criterion may be demonstrated through the climate benefits analysis referred to in point (2).

(5)  Pollution prevention and control

The use of pesticides is reduced and alternative approaches or techniques, which may include non-chemical alternatives to pesticides, are favoured, in accordance with Directive 2009/128/EC, with exception of occasions where the use of pesticides is needed to control outbreaks of pests and of diseases.

The activity minimises the use of fertilisers and does not use manure. The activity complies with Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in Annex I, part A, of Regulation (EU) 2019/1021 (12), the Rotterdam Convention on the Prior prior informed consent procedure for certain hazardous chemicals and pesticides in international trade, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO Recommended Classification of Pesticides by Hazard. The activity complies with the relevant national law on active ingredients.

Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs.

(6)  Protection and restoration of biodiversity and ecosystems

In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas.

There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law.

Detailed information referred to in point 1.2.(i) includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

(a)  ensuring the good conservation status of habitat and species, maintenance of typical habitat species;

(b)  excluding the use or release of invasive alien species;

(c)  excluding the use of non-native species unless it can be demonstrated that:

(i)  the use of the forest reproductive material leads to favourable and appropriate ecosystem conditions (such as climate, soil criteria, and vegetation zone, forest fire resilience);

(ii)  the native species currently present on the site are not anymore adapted to projected climatic and pedo-hydrological conditions;

(d)  ensuring the maintenance and improvement of physical, chemical and biological quality of the soil;

(e)  promoting biodiversity-friendly practices that enhance forests’ natural processes;

(f)  excluding the conversion of high-biodiverse ecosystems into less biodiverse ones;

(g)  ensuring the diversity of associated habitats and species linked to the forest;

(h)  ensuring the diversity of stand structures and maintenance or enhancing of mature stage stands and dead wood.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

5.  In order for an activity to be considered as an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, the economic operator demonstrates, through an assessment of current and future climate risks, including uncertainty and based on robust data, that the activity provides a technology, product, service, information, or practice, or promotes their uses with one of the following primary objectives:

(a)  increasing the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  contributing to adaptation efforts of other people, of nature, of cultural heritage, of assets and of other economic activities.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

1.  Forest management plan or equivalent instrument

1.1.  The activity takes place on area that is subject to a forest management plan or an equivalent instrument, as set out in national law or, where national law does not define a forest management plan, as referred to in the FAO definition of ‘forest area with long-term forest management plan’ (6).

The forest management plan or equivalent instrument covers a period of 10 years or more and is continuously updated.

1.2.  Information is provided on the following points that are not already documented in the forest management plan or equivalent system:

(a)  management goals, including major constraints (7);

(b)  general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle;

(c)  definition of the forest habitat context, including main existing and intended forest tree species, and their extent and distribution;

(d)  definition of the area according to its gazetting in the land registry;

(e)  compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions;

(f)  measures deployed to establish and maintain the good condition of forest ecosystems;

(g)  consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law);

(h)  assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection and adaptation against residual risks;

(i)  all DNSH criteria relevant for forest management.

1.3.  The sustainability of the forest management system, as documented in the plan referred to in point 1.1, is ensured by choosing the most ambitious of the following approaches:

(a)  the forest management matches the applicable national definition of sustainable forest management;

(b)  the forest management matches the Forest Europe definition (8) of sustainable forest management and complies with the Pan-European Operational Level Guidelines for Sustainable Forest Management (9);

(c)  the management system in place show compliance with the forest sustainability criteria set out in Article 29(6) of Directive (EU) 2018/2001, and as of the date of its application with the implementing act on operational guidance for energy from forest biomass adopted under Article 29(8) of that Directive.

1.4.  The activity does not involve the degradation of land with high carbon stock (10).

1.5.  The management system associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010.

1.6.  The forest management plan or equivalent document provides for monitoring which ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area.

2.  Audit

Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and the DNSH criteria are verified by either of the following:

(a)  the relevant national competent authorities;

(b)  an independent third-party certifier, at the request of national authorities or the operator of the activity.

In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit.

The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity.

3.  Group assessment

The compliance with the DNSH criteria may be checked:

(a)  at the level of the forest sourcing area (11) as defined by Directive (EU) 2018/2001;

(b)  at the level of a group of holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

Detailed information referred to in point 1.2. (i) includes provisions to comply with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

The silvicultural change induced by the activity on the area covered by the activity is not likely to result in a significant reduction of sustainable supply of primary forest biomass suitable for the manufacturing of wood products with long-term circularity potential. This criterion may be demonstrated through the climate benefits analysis referred to in point (2).

(5)  Pollution prevention and control

The use of pesticides is reduced and alternative approaches or techniques, which may include non-chemical alternatives to pesticides, are favoured, in accordance with Directive 2009/128/EC, with exception of occasions where the use of pesticides is needed to control outbreaks of pests and of diseases.

The activity minimised the use of fertilisers and does not use manure. The activity complies with Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in Annex I, part A, of Regulation (EU) 2019/1021 (12), the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO Recommended Classification of Pesticides by Hazard (13). The activity complies with the relevant national law on active ingredients.

Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs.

(6)  Protection and restoration of biodiversity and ecosystems

In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas.

There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law.

Detailed information referred to in in points 1.2.(i) includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

(a)  ensuring the good conservation status of habitat and species, maintenance of typical habitat species;

(b)  excluding the use or release of invasive alien species;

(c)  excluding the use of non-native species unless it can be demonstrated that:

(i)  the use of the forest reproductive material leads to favourable and appropriate ecosystem condition (such as climate, soil criteria, and vegetation zone, forest fire resilience);

(ii)  the native species currently present on the site are not anymore adapted to projected climatic and pedo-hydrological conditions;

(d)  ensuring the maintenance and improvement of physical, chemical and biological quality of the soil;

(e)  promoting biodiversity-friendly practices that enhance forests’ natural processes;

(f)  excluding the conversion of high-biodiverse ecosystems into less biodiverse ones;

(g)  ensuring the diversity of associated habitats and species linked to the forest;

(h)  ensuring the diversity of stand structures and maintenance or enhancing of mature stage stands and dead wood.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

5.  In order for an activity to be considered as an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, the economic operator demonstrates, through an assessment of current and future climate risks, including uncertainty and based on robust data, that the activity provides a technology, product, service, information, or practice, or promotes their uses with one of the following primary objectives:

(a)  increasing the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; or

(b)  contributing to adaptation efforts of other people, of nature, of cultural heritage, of assets and of other economic activities.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

1.  Forest management plan or equivalent instrument

1.1.  The activity takes place on area that is subject to a forest management plan or an equivalent instrument, as set out in national law or, where national regulation dos not define a forest management plan, as referred to in the FAO definition of ‘forest area with long-term forest management plan’ (6).

The forest management plan or the equivalent instrument covers a period of 10 years or more and is continuously updated.

1.2.  Information is provided on the following points that are not already documented in the forest management plan or equivalent system:

(a)  management goals, including major constraints;

(b)  general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle;

(c)  definition of the forest habitat context, main forest tree species and those intended and their extent and distribution, in accordance to the local forest ecosystem context;

(d)  definition of the area according to its gazetting in the land registry;

(e)  compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions;

(f)  measures deployed to maintain the good condition of forest ecosystems;

(g)  consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law);

(h)  assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection and adaptation against residual risks;

(i)  all DNSH relevant to forest management.

1.3.  The forest management plan or the equivalent instrument:

(a)  shows a primary designated management objective (7) that consists in protection of soil and water (8), conservation of biodiversity (9) or social services (10) based on the FAO definitions;

(b)  promotes biodiversity-friendly practices that enhance forests’ natural processes;

(c)  includes an analysis of:

(i)  impacts and pressures on habitat conservation and diversity of associated habitats;

(ii)  condition of harvesting minimizing soil impacts;

(iii)  other activities that have an impact on conservation objectives, such as hunting and fishing, agricultural, pastoral and forestry activities, industrial, mining, and commercial activities.

1.4.  The sustainability of the forest management system as documented in the plan referred to in point 1.1 is ensured by choosing the most ambitious of the following approaches:

(a)  the forest management matches the national definition of sustainable forest management, if any;

(b)  the forest management matches the Forest Europe definition (11) of sustainable forest management and complies with the Pan-European Operational Level Guidelines for Sustainable Forest Management (12)

(c)  the management system in place shows compliance with the forest sustainability criteria as defined in Article 29(6) of Directive (EU) 2018/2001, and as of the date of its application with the implementing act on operational guidance for energy from forest biomass adopted under Article 29(8) of that Directive.

1.5.  The activity does not involve the degradation of land with high carbon stock (13).

1.6.  The management system associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010.

1.7.  The forest management plan or equivalent instrument provides for monitoring which ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area.

2.  Audit

Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and the DNSH criteria are verified by either of the following:

(a)  the relevant national competent authorities;

(b)  an independent third-party certifier, at the request of national authorities or the operator of the activity.

In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit.

The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity.

3.  Group assessment

The compliance with the DNSH criteria may be checked:

(a)  at the level of the forest sourcing area (14) as defined by Directive (EU) 2018/2001;

(b)  at the level of a group of holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

Detailed information referred to in point 1.2. (i) includes provisions to comply with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

The silvicultural change induced by the activity on the area covered by the activity is not likely to result in a significant reduction of sustainable supply of primary forest biomass suitable for the manufacturing of wood products with long-term circularity potential. This criterion may be demonstrated through the climate benefits analysis referred to in point (2).

(5)  Pollution prevention and control

The activity does not use pesticides or fertilisers.

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in Annex I, part A, of Regulation (EU) 2019/1021 (15), the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO Recommended Classification of Pesticides by Hazard (16). The activity complies with the relevant national law on active ingredients.

Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs.

(6)  Protection and restoration of biodiversity and ecosystems

In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas.

There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law.

Detailed information referred to in in point 1.2.(i) includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

(a)  ensuring the good conservation status of habitat and species, maintenance of typical habitat species;

(b)  excluding the use or release of invasive alien species;

(c)  excluding the use of non-native species unless it can be demonstrated that:

(i)  the use of the forest reproductive material leads to favourable and appropriate ecosystem conditions (such as climate, soil criteria, and vegetation zone, forest fire resilience);

(ii)  the native species currently present on the site are not anymore adapted to projected climatic and pedo-hydrological conditions;

(d)  ensuring the maintenance and improvement of physical, chemical and biological quality of the soil;

(e)  promoting biodiversity-friendly practices that enhance forests’ natural processes;

(f)  excluding the conversion of high-biodiverse ecosystems into less biodiverse ones;

(g)  ensuring the diversity of associated habitats and species linked to the forest;

(h)  ensuring the diversity of stand structures and maintenance or enhancing of mature stage stands and dead wood.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

5.  In order for an activity to be considered as an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, the economic operator demonstrates, through an assessment of current and future climate risks, including uncertainty and based on robust data, that the activity provides a technology, product, service, information, or practice, or promotes their uses with one of the following primary objectives:

(a)  increasing the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  contributing to adaptation efforts of other people, of nature, of cultural heritage, of assets and of other economic activities.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

1.  Restoration plan

1.1.  The area is covered by a restoration plan, which is consistent with the Ramsar Convention’s principles and guidelines on wetland restoration, until the area is classified as a wetland and is covered by a wetland management plan, consistent with the Ramsar Convention’s guidelines for management planning for Ramsar sites and other wetlands. For peatlands, the restoration plan follows the recommendations contained in relevant resolutions of the Ramsar Convention, including the resolution XIII/13.

1.2.  The restoration plan contains careful consideration of local hydrological and pedological conditions, including the dynamics of soil saturation and the change of aerobic and anaerobic conditions.

1.3.  All wetland management relevant DNSH criteria are addressed in the restoration plan.

1.4.  The restoration plan provides for monitoring which ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area.

2.  Audit

Within two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and with the DNSH criteria are verified by either of the following:

(a)  the relevant national competent authorities;

(b)  an independent third-party certifier, at the request of national authorities or the operator of the activity.

In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit.

The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity.

Group assessment

The compliance with the DNSH criteria may be checked at the level of a group of holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

Peat extraction is minimised.

(5)  Pollution prevention and control

The use of pesticides is minimised and alternative approaches or techniques, which may include non-chemical alternatives to pesticides are favoured, in accordance with Directive 2009/128/EC, with exception of occasions where the use of pesticides is needed to control outbreaks of pest and diseases.

The activity minimises the use of fertilisers and does not use manure. The activity complies with Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

Well documented and verifiable measures are taken to avoid the use of active ingredients that are listed in Annex I, part A, of Regulation (EU) 2019/1021 (6), the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade, the Minamata Convention on Mercury, the Montreal Protocol on Substances that Deplete the Ozone Layer, and of active ingredients that are listed as classification Ia (‘extremely hazardous’) or Ib (‘highly hazardous’) in the WHO recommended Classification of Pesticides by Hazard (7). The activity complies with the relevant national law on active ingredients.

Pollution of water and soil is prevented and cleaning up measures are undertaken when pollution occurs.

(6)  Protection and restoration of biodiversity and ecosystems

In areas designated by the national competent authority for conservation or in habitats that are protected, the activity is in accordance with the conservation objectives for those areas.

There is no conversion of habitats specifically sensitive to biodiversity loss or with high conservation value, or of areas set aside for the restoration of such habitats in accordance with national law.

The plan referred to in point 1 (Restoration Plan) of this Section includes provisions for maintaining and possibly enhancing biodiversity in accordance with national and local provisions, including the following:

(a)  ensuring the good conservation status of habitat and species, maintenance of typical habitat species;

(b)  excluding the use or release of invasive species.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

The activity assesses the availability of and, where feasible, adopts techniques that support:

(a)  reuse and use of secondary raw materials and reused components in products manufactured;

(b)  design for high durability, recyclability, easy disassembly and adaptability of products manufactured;

(c)  waste management that prioritises recycling over disposal, in the manufacturing process;

(d)  information on and traceability of substances of concern throughout the life cycle of the manufactured products

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

The activity assesses the availability of and, where feasible, adopts techniques that support:

(a)  reuse and use of secondary raw materials and reused components in products manufactured;

(b)  design for high durability, recyclability, easy disassembly and adaptability of products manufactured;

(c)  waste management that prioritises recycling over disposal, in the manufacturing process;

(d)  information on and traceability of substances of concern throughout the life cycle of the manufactured products.

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

The activity assesses the availability of and, where feasible, adopts techniques that support:

(a)  reuse and use of secondary raw materials and reused components in products manufactured;

(b)  design for high durability, recyclability, easy disassembly and adaptability of products manufactured;

(c)  waste management that prioritises recycling over disposal, in the manufacturing process;

(d)  information on and traceability of substances of concern throughout the life cycle of the manufactured products.

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Where applicable, vehicles do not contain lead, mercury, hexavalent chromium and cadmium, in accordance with Directive 2000/53/EC.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

For manufacturing of new batteries, components and materials, the activity assesses the availability of and, where feasible, adopts techniques that support:

(a)  reuse and use of secondary raw materials and reused components in products manufactured;

(b)  design for high durability, recyclability, easy disassembly and adaptability of products manufactured;

(c)  information on and traceability of substances of concern throughout the life cycle of the manufactured products.

Recycling processes meet the conditions set out in Article 12 and in Annex III, Part B, of Directive 2006/66/EC, including the use of the latest relevant Best Available Techniques, the achievement of the efficiencies specified for lead-acid batteries, nickel-cadmium batteries and for other chemistries. These processes ensure the recycling of the metal content to the highest degree that is technically feasible while avoiding excessive costs.

Where applicable, facilities carrying out recycling processes meet the requirements laid down in Directive 2010/75/EU.

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Batteries comply with the applicable sustainability rules on the placing on the market of batteries in the Union, including restrictions on the use of hazardous substances in batteries, including Regulation (EC) No 1907/2006 and Directive 2006/66/EC.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

The activity assesses the availability of and, where feasible, adopts techniques that support:

(a)  reuse and use of secondary raw materials and reused components in products manufactured;

(b)  design for high durability, recyclability, easy disassembly and adaptability of products manufactured;

(c)  waste management that prioritises recycling over disposal, in the manufacturing process;

(d)  information on and traceability of substances of concern throughout the life cycle of the manufactured products.

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

The activity assesses the availability of and, where feasible, adopts techniques that support:

(a)  reuse and use of secondary raw materials and reused components in products manufactured;

(b)  design for high durability, recyclability, easy disassembly and adaptability of products manufactured;

(c)  waste management that prioritises recycling over disposal, in the manufacturing process;

(d)  information on and traceability of substances of concern throughout the life cycle of the manufactured products.

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

Greenhouse gas emissions (6) from the cement production processes are:

(a)  for grey cement clinker, lower than 0,816 (7) tCO2e per tonne of grey cement clinker;

(b)  for cement from grey clinker or alternative hydraulic binder, lower than 0,530 (8) tCO2e per tonne of cement or alternative binder manufactured.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for the production of cement, lime and magnesium oxide (9). No significant cross-media effects occur (10).

For manufacture of cement employing hazardous wastes as alternative fuels, measures are in place to ensure the safe handling of waste.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The activity manufactures one of the following:

(a)  primary aluminium where the economic activity complies with two of the following criteria until 2025 and with all of the following criteria (6) after 2025:

(i)  the GHG emissions do not exceed 1,604 (7) tCO2e per ton of aluminium manufactured (8);

(ii)  the indirect GHG emissions do not exceed 270 g CO2e/kWh;

(iii)  the electricity consumption for the manufacturing process does not exceed 15,5 MWh/t Al;

(b)  secondary aluminium.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for the non-ferrous metals industries (9). No significant cross-media effects occur.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The activity manufactures one of the following:

(a)  iron and steel where GHG emissions (6), reduced by the amount of emissions assigned to the production of waste gases in accordance with point 10.1.5(a) of Annex VII to Regulation (EU) 2019/331 do not exceed the following values applied to the different manufacturing process steps:

(i)  hot metal =1,443 (7) tCO2e/t product;

(ii)  sintered ore = 0,242 (8) tCO2e/t product;

(iii)  coke (excluding lignite coke) = 0,237 (9) tCO2e/t product;

(iv)  iron casting = 0,390 (10) tCO2e/t product;

(v)  electric arc furnace (EAF) high alloy steel = 0,360 (11) tCO2e/t product;

(vi)  electric arc furnace (EAF) carbon steel = 0,276 (12)] tCO2e/t product.

(b)  steel in electric arc furnaces (EAFs) producing EAF carbon steel or EAF high alloy steel as defined in Commission Delegated Regulation (EU) 2019/331 and where the steel scrap input relative to product output is:

(i)  at least 70 % for the production of high alloy steel

(ii)  at least 90 % for production of carbon steel.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for iron and steel production (13).

No significant cross-media effects occur.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The activity complies with the life cycle GHG emissions savings requirement of 70 % relative to a fossil fuel comparator of 94 g CO2e/MJ as set out in Article 25(2) of Directive (EU) 2018/2001 of the European Parliament and of the Council (6) and Annex V to that Directive.

Life cycle GHG emissions savings are calculated using the methodology referred to in Article 28(5) of Directive (EU) 2018/2001 or, alternatively, using ISO 14067:2018 (7) or ISO 14064-1:2018 (8).

Quantified life-cycle GHG emission savings are verified in line with Article 30 of Directive (EU) 2018/2001 where applicable, or by an independent third party.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in relevant best available techniques (BAT) conclusions, including:

(a)  the best available techniques (BAT) conclusions for the production of chlor-alkali (9) and the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector (10);

(b)  the best available techniques (BAT) conclusions for the refining of mineral oil and gas (11).

No significant cross-media effects occur.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DHSH’)

(1)  Climate change mitigation

Greenhouse gas emissions (6) from the carbon black production processes are lower than 1,615 (7) tCO2e per tonne of product.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the the latest relevant best available techniques (BAT) conclusions, including:

(a)  the Best Available Techniques Reference Document (BREF) for the Large Volume Inorganic Chemicals- Solids and Others industry (8);

(b)  the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector (9).

No significant cross-media effects occur.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

Greenhouse gas emissions (6) from the soda ash production processes are lower than 0,866 (7) tCO2e per tonne of product.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including:

(a)  the Best Available Techniques Reference Document (BREF) for the Large Volume Inorganic Chemicals- Solids and Others industry (8);

(b)  the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector (9).

No significant cross-media effects occur.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

Electricity consumption for electrolysis and chlorine treatment is equal or lower than 2,45 MWh per tonne of chlorine.

Average direct greenhouse gas emissions of the electricity used for chlorine production is at or lower than 270 g CO2e/kWh.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including:

(a)  the best available techniques (BAT) conclusions for the production of chlor-alkali (6);

(b)  the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector (7).

No significant cross-media effects occur.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

GHG emissions (6) from the organic chemicals production processes are lower than:

(a)  for HVC: [0,851 (7)] tCO2e/t of HVC;

(b)  for aromatics: 0,0300 (8) tCO2e/t of complex weighted throughput;

(c)  for vinyl chloride: [0,268 (9) tCO2e/t of vinyl chloride;

(d)  for styrene: 0,564 (10) tCO2e/t of styrene;

(e)  for ethylene oxide/ethylene glycols: 0,489 (11) tCO2e/t of ethylene oxide/glycol;

(f)  for adipic acid: 0,76 (12) tCO2e/t of adipic acid.

Where the organic chemicals in scope are produced wholly or partially from renewable feedstock, the life-cycle GHG emissions of the manufactured chemical, manufactured wholly or partially from renewable feedstock, are lower than the life-cycle GHG emissions of the equivalent chemical manufactured from fossil fuel feedstock

Agricultural biomass used for the manufacture of organic basic chemicals in its primary form complies with the criteria laid down in Article 29, paragraphs 2 to 5, of Directive (EU) 2018/2001. Forest biomass used for the manufacture of organic basic chemicals complies with the criteria laid down in Article 29, paragraphs 6 and 7, of that Directive.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in relevant best available techniques (BAT) conclusions, including:

(a)  the best available techniques (BAT) conclusions for the production of large volumes organic chemicals (13);

(b)  the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector (14).

No significant cross-media effects occur.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The activity complies with one of the following criteria:

(a)  the manufacturing of anhydrous ammonia has greenhouse gas emissions (6) lower than 1,948 (7) tCO2e per tonne of anhydrous ammonia;

(b)  ammonia is recovered from waste water.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including:

(a)  the Best Available Techniques Reference Document (BREF) for the manufacture of Large Volume Inorganic Chemicals - Ammonia, Acids and Fertilisers (8);

(b)  the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector (9).

No significant cross-media effects occur.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

GHG emissions (6) from the manufacture of nitric acid are lower than 0,184 (7) tCO2e per tonne of nitric acid.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including:

(a)  the Best Available Techniques Reference Document (BREF) for the manufacture of Large Volume Inorganic Chemicals - Ammonia, Acids and Fertilisers (8);

(b)  the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector (9).

No significant cross-media effects occur.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The plastic in primary form is one of the following:

(a)  fully manufactured by mechanical recycling of plastic waste;

(b)  where mechanical recycling is not possible, fully manufactured by chemical recycling of plastic waste where the life-cycle greenhouse gas emissions of the manufactured plastic, excluding any calculated credits from the production of fuels, are lower than the life-cycle greenhouse gas emissions of the equivalent primary plastic manufactured from fossil fuel feedstock. Life-cycle greenhouse gas emissions are calculated using Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 (6) or ISO 14064-1:2018 (7). Quantified life-cycle GHG emissions are verified by an independent third party.

(c)  derived wholly or partially from renewable feedstock (8) where the life-cycle greenhouse gas emissions of the manufactured plastic in primary form, manufactured wholly or partially from renewable feedstock, is lower than the life-cycle greenhouse gas emissions of the equivalent plastics in primary form manufactured from fossil fuel feedstock. Life-cycle greenhouse gas emissions are calculated using Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018. Quantified life-cycle GHG emissions are verified by an independent third party.

Agricultural biomass used for the manufacture of plastics in its primary form complies with the criteria laid down in Article 29, paragraphs 2 to 5, of Directive (EU) 2018/2001. Forest biomass used for the manufacture of plastics in its primary form complies with the criteria laid down in Article 29, paragraphs 6 and 7, of that Directive.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex.

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the relevant best available techniques (BAT) conclusions, including:

(a)  the Best Available Techniques Reference Document (BREF) for the Production of Polymers (9);

(b)  the best available techniques (BAT) conclusions for common waste water and waste gas treatment/management systems in the chemical sector (10).

No significant cross-media effects occur.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

N/A

(4)  Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

(5)  Pollution prevention and control

N/A

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

(5)  Pollution prevention and control

N/A

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

In case of construction of offshore wind, the activity does not hamper the achievement of good environmental status, as set out in Directive 2008/56/EC, requiring that the appropriate measures are taken to prevent or mitigate impacts in relation to that Directive’s Descriptor 11 (Noise/Energy), laid down in Annex I to that Directive and as set out in Decision (EU)2017/848 in relation to the relevant criteria and methodological standards for that descriptor.

(4)  Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

(5)  Pollution prevention and control

N/A

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex (6).

In case of offshore wind, the activity does not hamper the achievement of good environmental status, as set out in Directive 2008/56/EC, requiring that the appropriate measures are taken to prevent or mitigate impacts in relation to that Directive’s Descriptors 1 (biodiversity) and 6 (seabed integrity), laid down in Annex I to that Directive, and as set out in Decision (EU) 2017/848 in relation to the relevant criteria and methodological standards for those descriptors.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

The activity does not hamper the achievement of good environmental status, as set out in Directive 2008/56/EC, requiring that the appropriate measures are taken to prevent or mitigate impacts in relation to that Directive’s Descriptor 11 (Noise/Energy), laid down in Annex I to that Directive, and as set out in Decision (EU) 2017/848 in relation to the relevant criteria and methodological standards for that descriptor.

(4)  Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

(5)  Pollution prevention and control

Measures are in place to minimise toxicity of anti-fouling paint and biocides as laid down in Regulation (EU) No 528/2012, which implements in Union law the International Convention on the Control of Harmful Anti-fouling Systems on Ships adopted on 5 October 2001.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

The activity does not hamper the achievement of good environmental status, as set out in Directive 2008/56/EC, requiring that the appropriate measures are taken to prevent or mitigate impacts in relation to that Directive’s Descriptor 1 (biodiversity), laid down in Annex I to that Directive, and as set out in Decision (EU) 2017/848 in relation to the relevant criteria and methodological standards for that descriptor.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The direct GHG emissions of the activity are lower than 270 g CO2e/kWh.

(3)  Sustainable use and protection of water and marine resources

1.  The activity complies with the provisions of Directive 2000/60/EC, in particular with all the requirements laid down in Article 4 of the Directive.

2.  For operation of existing hydropower plants, including refurbishment activities to enhance renewable energy or energy storage potential, the activity complies with the following criteria:

2.1.  In accordance with Directive 2000/60/EC and in particular Articles 4 and 11 of that Directive, all technically feasible and ecologically relevant mitigation measures have been implemented to reduce adverse impacts on water as well as on protected habitats and species directly dependent on water.

2.2.  Measures include, where relevant and depending on the ecosystems naturally present in the affected water bodies:

(a)  measures to ensure downstream and upstream fish migration (such as fish friendly turbines, fish guidance structures, state-of-the-art fully functional fish passes, measures to stop or minimise operation and discharges during migration or spawning);

(b)  measures to ensure minimum ecological flow (including mitigation of rapid, short-term variations in flow or hydro-peaking operations) and sediment flow;

(c)  measures to protect or enhance habitats.

2.3.  The effectiveness of those measures is monitored in the context of the authorisation or permit setting out the conditions aimed at achieving good status or potential of the affected water body.

3.  For construction of new hydropower plants, the activity complies with the following criteria:

3.1.  In accordance with Article 4 of Directive 2000/60/EC and in particular paragraph 7 of that Article, prior to construction, an impact assessment of the project is carried out to assess all its potential impacts on the status of water bodies within the same river basin and on protected habitats and species directly dependent on water, considering in particular migration corridors, free-flowing rivers or ecosystems close to undisturbed conditions.

The assessment is based on recent, comprehensive and accurate data, including monitoring data on biological quality elements that are specifically sensitive to hydromorphological alterations, and on the expected status of the water body as a result of the new activities, as compared to its current one.

It assesses in particular the cumulated impacts of this new project with other existing or planned infrastructure in the river basin.

3.2.  On the basis of that impact assessment, it has been established that the plant is conceived, by design and location and by mitigation measures, so that it complies with one of the following requirements:

(a)  the plant does not entail any deterioration nor compromises the achievement of good status or potential of the specific water body it relates to;

(b)  where the plant risks to deteriorate or compromise the achievement of good status/potential of the specific water body it relates to, such deterioration is not significant, and is justified by a detailed cost-benefit assessment demonstrating both of the following:

(i)  the reasons of overriding public interest or the fact that benefits expected from the planned hydropower plant outweigh the costs from deteriorating the status of water that are accruing to the environment and to society;

(ii)  the fact that the overriding public interest or the benefits expected from the plant cannot, for reasons of technical feasibility or disproportionate cost, be achieved by alternative means that would lead to a better environmental outcome (such as refurbishing of existing hydropower plants or use of technologies not disrupting river continuity).

3.3.  All technically feasible and ecologically relevant mitigation measures are implemented to reduce adverse impacts on water as well as on protected habitats and species directly dependent on water.

Mitigation measures include, where relevant and depending on the ecosystems naturally present in the affected water bodies:

(a)  measures to ensure downstream and upstream fish migration (such as fish friendly turbines, fish guidance structures, state-of the-art fully functional fish passes, measures to stop or minimise operation and discharges during migration or spawning);

(b)  measures to ensure minimum ecological flow (including mitigation of rapid, short-term variations in flow or hydro-peaking operations) and sediment flow;

(c)  measures to protect or enhance habitats.

The effectiveness of those measures is monitored in the context of the authorisation or permit setting out the conditions aimed at achieving good status or potential of the affected water body.

3.4.  The plant does not permanently compromise the achievement of good status/potential in any of the water bodies in the same river basin district.

3.5.  In addition to the mitigation measures referred to above, and where relevant, compensatory measures are implemented to ensure that the project does not increase the fragmentation of water bodies in the same river basin district. This is achieved by restoring continuity within the same river basin district to an extent that compensates the disruption of continuity, which the planned hydropower plant may cause. Compensation starts prior to the execution of the project.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

N/A

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex (6).

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The direct GHG emissions of the activity are lower than 270 g CO2e/kWh.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

For the operation of high-enthalpy geothermal energy systems, adequate abatement systems are in place to reduce emission levels in order not to hamper the achievement of air quality limit values set out in Directive 2004/107/EC and Directive 2008/50/EC.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The direct GHG emissions of the activity are lower than 270 g CO2e/kWh.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

Emissions are within or lower than the emissions levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for large combustion plants (6). No significant cross-media effects occur.

For combustion plants with thermal input greater than 1 MW but below the thresholds for the BAT conclusions for large combustion plants to apply, emissions are below the emission limit values set out in Annex II, part 2, to Directive (EU) 2015/2193.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(2)  Climate change mitigation

The activity meets the requirements relating to sustainability, greenhouse gas emission savings and efficiency laid down in Article 29 of Directive 2018/2001.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

For installations falling within the scope of Directive 2010/75/EU of the European Parliament and of the Council (6), emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for large combustion plants (7). No significant cross-media effects occur.

For combustion plants with thermal input greater than 1 MW but below the thresholds for the BAT conclusions for large combustion plants to apply, emissions are below the emission limit values set out in Annex II, part 2, to Directive (EU) 2015/2193.

For plants in zones or parts of zones not complying with the air quality limit values laid down in Directive 2008/50/EC, measures are implemented to reduce emission levels taking into account the results of the information exchange (8) which are published by the Commission in accordance with Article 6, paragraphs 9 and 10, of Directive (EU) 2015/2193.

For anaerobic digestion of organic material, where the produced digestate is used as fertiliser or soil improver, either directly or after composting or any other treatment, it meets the requirements for fertilising materials set out in Component Material Categories (CMC) 4 and 5 in Annex II to Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

For anaerobic digestion plants treating over 100 tonnes per day, emissions to air and water are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set for anaerobic treatment of waste in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for waste treatment (9). No significant cross-media effects occur.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The infrastructure is not dedicated to creating a direct connection, or expanding an existing direct connection to a power production plant where the direct greenhouse gas emissions exceed 270 g CO2e/kWh.

(3)  Sustainable use and protection of water and marine resources

N/A

(4)  Transition to a circular economy

A waste management plan is in place and ensures maximal reuse or recycling at end of life in accordance with the waste hierarchy, including through contractual agreements with waste management partners, reflection in financial projections or official project documentation.

(5)  Pollution prevention and control

Overground high voltage lines:

(a)  for construction site activities, activities follow the principles of the International Finance Corporation (IFC) General Environmental, Health, and Safety Guidelines (6).

(b)  activities respect applicable norms and regulations to limit impact of electromagnetic radiation on human health, including for activities carried out in the Union, the Council recommendation on the limitation of exposure of the general public to electromagnetic fields (0 Hz to 300 GHz) (7) and for activities carried out in third countries the 1998 Guidelines of International Commission on Non-Ionizing Radiation Protection (ICNIRP) (8).

Activities do not use PCBs polyclorinated biphenyls.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex (9).

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

For pumped hydropower storage not connected to a river body, the activity complies with the criteria set out in Appendix B to this Annex.

For hydropower storage connected to a river body, the activity complies with the criteria for DNSH to sustainable use and protection of water and marine resources specified in Section 4.5 (Electricity production from hydropower).

(4)  Transition to a circular economy

A waste management plan is in place and ensures maximal reuse or recycling at end of life in accordance with the waste hierarchy, including through contractual agreements with waste management partners, reflection in financial projections or official project documentation.

(5)  Pollution prevention and control

N/A

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

For Aquifer Thermal Energy Storage, the activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

A waste management plan is in place and ensures maximal reuse, remanufacturing or recycling at end of life, including through contractual agreements with waste management partners, reflection in financial projections or official project documentation.

(5)  Pollution prevention and control

N/A

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

N/A

(4)  Transition to a circular economy

A waste management plan is in place and ensures maximal reuse, remanufacturing or recycling at end of life, including through contractual agreements with waste management partners, reflection in financial projections or official project documentation.

(5)  Pollution prevention and control

In the case of storage above five tonnes, the activity complies with Directive 2012/18/EU.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The activity meets the requirements relating to sustainability, greenhouse gas emission savings and efficiency laid down in Article 29 of Directive 2018/2001.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

For biogas production, a gas-tight cover on the digestate storage is applied.

For anaerobic digestion plants treating over 100 tonnes per day, emissions to air and water are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set for anaerobic treatment of waste in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for waste treatment (6). No significant cross-media effects occur.

In case of anaerobic digestion of organic material, where the produced digestate is used as fertiliser or soil improver, either directly or after composting or any other treatment, it meets the requirements for fertilising materials set out in Component Material Categories (CMC) 4 and 5 for digestate or CMC 3 for compost, as applicable, in Annex II to Regulation EU 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The conversion, repurposing or retrofit does not increase gas transmission and distribution capacity.

The conversion, repurposing or retrofit does not extend the lifespan of the networks beyond their projected lifespan before the conversion, repurposing or retrofit, unless the network is dedicated to hydrogen or other low-carbon gases.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

Fans, compressors, pumps and other equipment used which is covered by Directive 2009/125/EC comply, where relevant, with the top class requirements of the energy label, and with implementing regulations under that Directive and represent the best available technology.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

Fans, compressors, pumps and other equipment used which is covered by Directive 2009/125/EC comply, where relevant, with the top class requirements of the energy label, and otherwise comply with implementing regulations under that Directive and represent the best available technology.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

A waste management plan is in place and ensures maximal reuse, remanufacturing or recycling at end of life, including through contractual agreements with waste management partners, reflection in financial projections or official project documentation.

(5)  Pollution prevention and control

For air to air heat pumps with rated capacity of 12kW or below, indoor and outdoor sound power levels are below the threshold set out in Regulation (EU) No 206/2012.

(6)  Protection and restoration of biodiversity and ecosystems

N/A

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

N/A

(4)  Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

(5)  Pollution prevention and control

N/A

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The direct GHG emissions of the activity are lower than 270 g CO2e/kWh.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

For the operation of high-enthalpy geothermal energy systems, adequate abatement systems are in place to reduce emission levels in order not to hamper the achievement of air quality limit values set out in Directives 2004/107/EC and 2008/50/EC.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The direct GHG emissions of the activity are lower than 270 g CO2e/kWh.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for large combustion plants (6). No significant cross-media effects occur.

For combustion plants with thermal input greater than 1 MW but below the thresholds for the BAT conclusions for large combustion plants to apply, emissions are below the emission limit values set out in Annex II, part 2, to Directive (EU) 2015/2193.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The activity meets the requirements relating to sustainability, greenhouse gas emission savings and efficiency laid down in Article 29 of Directive 2018/2001.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

For installations falling within the scope of Directive 2010/75/EU, emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for large combustion plants (6), ensuring at the same time that no significant cross-media effects occur.

For combustion plants with thermal input greater than 1 MW but below the thresholds for the BAT conclusions for large combustion plants to apply, emissions are below the emission limit values set out in Annex II, part 2, to Directive (EU) 2015/2193.

For plants in zones or parts of zones not complying with the air quality limit values laid down in Directive 2008/50/EC, results of the information exchange (7), which are published by the Commission in accordance with Article 6, paragraphs 9 and 10, of Directive (EU) 2015/2193 are taken into account.

In case of anaerobic digestion of organic material, where the produced digestate is used as fertiliser or soil improver, either directly or after composting or any other treatment, it meets the requirements for fertilising materials set out in Component Material Categories (CMC) 4 and 5 in Annex II to Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

For anaerobic digestion plants treating over 100 tonnes per day, emissions to air and water are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set for anaerobic treatment of waste in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for waste treatment (8). No significant cross-media effects occur.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

N/A

(4)  Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

(5)  Pollution prevention and control

N/A

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The direct GHG emissions of the activity are lower than 270 g CO2e/kWh.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

For the operation of high-enthalpy geothermal energy systems, adequate abatement systems are in place to reduce emission levels in order not to hamper the achievement of air quality limit values set out in Directives 2004/107/EC and 2008/50/EC.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The direct GHG emissions of the activity are lower than 270 g CO2e/kWh.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

Emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for large combustion plants (6). No significant cross-media effects occur.

For combustion plants with thermal input greater than 1 MW but below the thresholds for the BAT conclusions for large combustion plants to apply, emissions are below the Emission Limit Values set out in Annex II, part 2, to Directive (EU) 2015/2193.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The activity meets the requirements relating to sustainability, greenhouse gas emission savings and efficiency laid down in Article 29 of Directive 2018/2001.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy

N/A

(5)  Pollution prevention and control

For installations falling within the scope of Directive 2010/75/EU, emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for large combustion plants (6), ensuring at the same time that no significant cross-media effects occur.

For combustion plants with thermal input greater than 1 MW but below the thresholds for the BAT conclusions for large combustion plants to apply, emissions are below the emission limit values set out in Annex II, part 2, to Directive (EU) 2015/2193.

For plants in zones or parts of zones not complying with the air quality limit values laid down in Directive 2008/50/EC, results of the information exchange (7), which are published by the Commission in accordance with Article 6, paragraphs 9 and 10 of Directive (EU) 2015/2193 are taken into account.

For anaerobic digestion of organic material, where the produced digestate is used as fertiliser or soil improver, either directly or after composting or any other treatment, it meets the requirements for fertilising materials set out in Component Material Categories (CMC) 4 and 5 in Annex II to Regulation (EU) 2019/1009 or national rules on fertilisers or soil improvers for agricultural use.

For anaerobic digestion plants treating over 100 tonnes per day, emissions to air and water are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set for anaerobic treatment of waste in the latest relevant best available techniques (BAT) conclusions, including the best available techniques (BAT) conclusions for waste treatment (8). No significant cross-media effects occur.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

N/A

(3)  Sustainable use and protection of water and marine resources

N/A

(4)  Transition to a circular economy

The activity assesses availability of and, where feasible, uses equipment and components of high durability and recyclability and that are easy to dismantle and refurbish.

(5)  Pollution prevention and control

Pumps and the kind of equipment used, which is covered by Ecodesign and Energy labelling comply, where relevant, with the top class requirements of the energy label laid down in Regulation (EU) 2017/1369, and with implementing regulations under Directive 2009/125/EC and represent the best available technology.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

5.  The activity complies with the provisions laid down in the Euratom Treaty and the legislation adopted on its basis, in particular, Directive 2013/59/Euratom, Directive 2009/71/Euratom, and Directive 2011/70/Euratom as well as applicable Union environmental law adopted under Article 192 TFEU, in particular Directive 2011/92/EU and Directive 2000/60/EC.

6.  The activity complies with national legislation that transposes Directive 2009/71/Euratom, including as regards the evaluation, through stress-tests, of the resilience of the Union nuclear power plants against extreme natural hazards, including earthquakes. Accordingly, the activity takes place on the territory of a Member State where the operator of a nuclear installation:

(a)  has submitted a demonstration of nuclear safety, whose scope and level of detail is commensurate with the potential magnitude and nature of the hazard relevant for the nuclear installation and its site (Article 6, point (b), of Directive 2009/71/Euratom);

(b)  has taken defence-in-depth measures to ensure, inter alia, that the impact of extreme external natural and unintended man-made hazards is minimised (Article 8b(1), point (a), of Directive 2009/71/Euratom);

(c)  has performed an appropriate site and installation-specific assessment when the operator concerned applies for a licence to construct or operate a nuclear power plant (Article 8c(a) of Directive 2009/71/Euratom).

The activity fulfils the requirements of Directive 2009/71/Euratom, supported by the latest international guidance through the IAEA and WENRA, contributing to increasing the resilience and the ability of new and existing nuclear power plants to cope with extreme natural hazards, including floods and extreme weather conditions.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The direct GHG emissions of the activity are lower than 270 g CO2e/kWh.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with stakeholders concerned.

In order to limit thermal anomalies associated with the discharge of waste heat, operators of inland nuclear power plants utilising once-through wet cooling by taking water from a river or a lake shall control:

(a)  the maximum temperature of the recipient freshwater body after mixing, and

(b)  the maximum temperature difference between the discharged cooling water and the recipient freshwater body.

The temperature control is implemented in accordance with the individual licence conditions for the specific operations, where applicable, or threshold values in line with the EU regulatory framework.

The activity complies with the Industry Foundation Classes (IFC) standards.

Nuclear activities are operated in compliance with requirements on water intended for human consumption of Directive 2000/60/EC and of Directive 2013/51/Euratom laying down requirements for the protection of the health of the general public with regard to radioactive substances in water intended for human consumption.

(4)  Transition to a circular economy

A plan for the management of both non-radioactive and radioactive waste is in place and ensures maximal reuse or recycling of such waste at end of life in accordance with the waste hierarchy, including through contractual agreements with waste management partners, the reflection in financial projections or the official project documentation.

During operation and decommissioning, the amount of radioactive waste is minimised and the amount of free-release materials is maximised in accordance with Directive 2011/70/Euratom, and in compliance with the radiation protection requirements laid down in Directive 2013/59/Euratom.

A financing scheme is in place to ensure adequate funding for all decommissioning activities and for the management of spent fuel and radioactive waste, in compliance with Directive 2011/70/Euratom and Recommendation 2006/851/Euratom.

An Environmental Impact Assessment is completed prior to the construction of a nuclear power plant, in accordance with Directive 2011/92/EU. The required mitigation and compensatory measures are implemented.

The relevant elements in this Section are covered by Member States’ reports to the Commission in accordance with Article 14(1) of Directive 2011/70/Euratom.

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex. Non-radioactive emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the best available techniques (BAT) conclusions for large combustion plants. No significant cross-media effects occur.

For nuclear power plants greater than 1 MW thermal input but below the thresholds for the BAT conclusions for large combustion plants to apply, emissions are below the emission limit values set out in Annex II, part 2, to Directive (EU) 2015/2193.

Radioactive discharges to air, water bodies and ground (soil) comply with individual licence conditions for the specific operations, where applicable, and/or national threshold values in line with Directive 2013/51/Euratom and Directive 2013/59/Euratom.

Spent fuel and radioactive waste is safely and responsibly managed in accordance with Directive 2011/70/Euratom and Directive 2013/59/Euratom.

An adequate capacity of interim storage is available for the project, while national plans for disposal are in place to minimise the duration of interim storage, in compliance with the provision of Directive 2011/70/Euratom that considers radioactive waste storage, including long-term storage, as an interim solution, but not an alternative to disposal.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

An Environmental Impact Assessment is completed prior to the construction of a nuclear power plant, in accordance with Directive 2011/92/EU. The required mitigation and compensatory measures are implemented.

For sites/operations located in or near biodiversity sensitive areas likely to have a significant effect on biodiversity sensitive areas (including the Natura 2000 network of protected areas, Unesco World Heritage sites and Key Biodiversity Areas, as well as other protected areas), an appropriate assessment, where applicable, has been conducted and based on its conclusions the necessary mitigation measures are implemented.

The sites/operations shall not be detrimental to the conservation status of any of the habitats or species present in protected areas.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

5.  The activity complies with the provisions laid down in the Euratom Treaty and the legislation adopted on its basis, in particular, Directive 2013/59/Euratom, Directive 2009/71/Euratom, and Directive 2011/70/Euratom as well as applicable Union environmental law adopted under Article 192 TFEU, in particular Directive 2011/92/EU and Directive 2000/60/EC.

6.  The activity complies with national legislation that transposes Directive 2009/71/Euratom, including as regards the evaluation, through stress-tests, of the resilience of the Union nuclear power plants against extreme natural hazards, including earthquakes. Accordingly, the activity takes place on the territory of a Member State where the operator of a nuclear installation:

(a)  has submitted a demonstration of nuclear safety, whose scope and level of detail is commensurate with the potential magnitude and nature of the hazard relevant for the nuclear installation and its site (Article 6, point (b), of Directive 2009/71/Euratom);

(b)  has taken defence-in-depth measures to ensure, inter alia, that the impact of extreme external natural and unintended man-made hazards is minimised (Article 8b(1), point (a), of Directive 2009/71/Euratom);

(c)  has performed an appropriate site and installation-specific assessment when the operator concerned applies for a licence to construct or operate a nuclear power plant (Article 8c(a) of Directive 2009/71/Euratom).

The activity fulfils the requirements of Directive 2009/71/Euratom, supported by the latest international guidance through the IAEA and WENRA, contributing to increasing the resilience and the ability of new and existing nuclear power plants to cope with extreme natural hazards, including floods and extreme weather conditions.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The direct GHG emissions of the activity are lower than 270 g CO2e/kWh.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with stakeholders concerned.

In order to limit thermal anomalies associated with the discharge of waste heat, operators of inland nuclear power plants utilising once-through wet cooling by taking water from a river or a lake shall control:

(a)  the maximum temperature of the recipient freshwater body after mixing, and

(b)  the maximum temperature difference between the discharged cooling water and the recipient freshwater body.

The temperature control is implemented in accordance with the individual licence conditions for the specific operations, where applicable, and/or threshold values in line with the EU regulatory framework.

The activity complies with the Industry Foundation Classes (IFC) standards.

Nuclear activities are operated in compliance with requirements on water intended for human consumption of Directive 2000/60/EC and of Directive 2013/51/Euratom laying down requirements for the protection of the health of the general public with regard to radioactive substances in water intended for human consumption.

(4)  Transition to a circular economy

A plan for the management of both non-radioactive and radioactive waste is in place and ensures maximal reuse or recycling of such waste at end of life in accordance with the waste hierarchy, including through contractual agreements with waste management partners, the reflection in financial projections or the official project documentation.

During operation and decommissioning, the amount of radioactive waste is minimised and the amount of free-release materials is maximised in accordance with Directive 2011/70/Euratom, and in compliance with the radiation protection requirements laid down in Directive 2013/59/Euratom.

A financing scheme is in place to ensure adequate funding for all decommissioning activities and for the management of spent fuel and radioactive waste, in compliance with Directive 2011/70/Euratom and Recommendation 2006/851/Euratom.

An Environmental Impact Assessment is completed prior to the construction of a nuclear power plant, in accordance with Directive 2011/92/EU. The required mitigation and compensatory measures are implemented.

The relevant elements in this Section are covered by Member States’ reports to the Commission in accordance with Article 14(1) of Directive 2011/70/Euratom.

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex. Non-radioactive emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the best available techniques (BAT) conclusions for large combustion plants. No significant cross-media effects occur.

For nuclear power plants greater than 1 MW thermal input but below the thresholds for the BAT conclusions for large combustion plants to apply, emissions are below the emission limit values set out in Annex II, part 2, to Directive (EU) 2015/2193.

Radioactive discharges to air, water bodies and ground (soil) comply with individual licence conditions for the specific operations, where applicable, and/or national threshold values in line with Directive 2013/51/Euratom and Directive 2013/59/Euratom.

Spent fuel and radioactive waste is safely and responsibly managed in accordance with Directive 2011/70/Euratom and Directive 2013/59/Euratom.

An adequate capacity of interim storage is available for the project, while national plans for disposal are in place to minimise the duration of interim storage, in compliance with the provision of Directive 2011/70/Euratom that considers radioactive waste storage, including long-term storage, as an interim solution, but not an alternative to disposal.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

An Environmental Impact Assessment is completed prior to the construction of a nuclear power plant, in accordance with Directive 2011/92/EU. The required mitigation and compensatory measures are implemented.

For sites/operations located in or near biodiversity sensitive areas likely to have a significant effect on biodiversity sensitive areas (including the Natura 2000 network of protected areas, Unesco World Heritage sites and Key Biodiversity Areas, as well as other protected areas), an appropriate assessment, where applicable, has been conducted and based on its conclusions the necessary mitigation measures are implemented.

The sites/operations shall not be detrimental to the conservation status of any of the habitats or species present in protected areas.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

5.  The activity complies with the provisions laid down in the Euratom Treaty and the legislation adopted on its basis, in particular, Directive 2013/59/Euratom, Directive 2009/71/Euratom, and Directive 2011/70/Euratom as well as applicable Union environmental law adopted under Article 192 TFEU, in particular Directive 2011/92/EU and Directive 2000/60/EC.

6.  The activity complies with national legislation that transposes Directive 2009/71/Euratom, including as regards the evaluation, through stress-tests, of the resilience of the Union nuclear power plants against extreme natural hazards, including earthquakes. Accordingly, the activity takes place on the territory of a Member State where the operator of a nuclear installation:

(a)  has submitted a demonstration of nuclear safety, whose scope and level of detail is commensurate with the potential magnitude and nature of the hazard relevant for the nuclear installation and its site (Article 6, point (b), of Directive 2009/71/Euratom);

(b)  has taken defence-in-depth measures to ensure, inter alia, that the impact of extreme external natural and unintended man-made hazards is minimised (Article 8b(1), point (a), of Directive 2009/71/Euratom);

(c)  has performed an appropriate site and installation-specific assessment when the operator concerned applies for a licence to construct or operate a nuclear power plant (Article 8c(a) of Directive 2009/71/Euratom).

The activity fulfils the requirements of Directive 2009/71/Euratom, supported by the latest international guidance through the IAEA and WENRA, contributing to increasing the resilience and the ability of new and existing nuclear power plants to cope with extreme natural hazards, including floods and extreme weather conditions.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The direct GHG emissions of the activity are lower than 270 g CO2e/kWh.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed, in accordance with a water use and protection management plan, developed in consultation with stakeholders concerned.

In order to limit thermal anomalies associated with the discharge of waste heat, operators of inland nuclear power plants utilising once-through wet cooling by taking water from a river or a lake shall control:

(a)  the maximum temperature of the recipient freshwater body after mixing, and

(b)  the maximum temperature difference between the discharged cooling water and the recipient freshwater body.

The temperature control is implemented in accordance with the individual licence conditions for the specific operations, where applicable, or threshold values in line with the Union law.

The activity complies with the Industry Foundation Classes (IFC) standards.

Nuclear activities are operated in compliance with requirements on water intended for human consumption of Directive 2000/60/EC and of Directive 2013/51/Euratom laying down requirements for the protection of the health of the general public with regard to radioactive substances in water intended for human consumption.

(4)  Transition to a circular economy

A plan for the management of both non-radioactive and radioactive waste is in place and ensures maximal reuse or recycling of such waste at end of life in accordance with the waste hierarchy, including through contractual agreements with waste management partners, the reflection in financial projections or the official project documentation.

During operation and decommissioning, the amount of radioactive waste is minimised and the amount of free-release materials is maximised in accordance with Directive 2011/70/Euratom, and in compliance with the radiation protection requirements laid down in Directive 2013/59/Euratom.

A financing scheme is in place to ensure adequate funding for all decommissioning activities and for the management of spent fuel and radioactive waste, in compliance with Directive 2011/70/Euratom and Recommendation 2006/851/Euratom.

An Environmental Impact Assessment is completed prior to the construction of a nuclear power plant, in accordance with Directive 2011/92/EU. The required mitigation and compensatory measures are implemented.

The relevant elements in this Section are covered by Member States’ reports to the Commission in accordance with Article 14(1) of Directive 2011/70/Euratom.

(5)  Pollution prevention and control

The activity complies with the criteria set out in Appendix C to this Annex. Non-radioactive emissions are within or lower than the emission levels associated with the best available techniques (BAT-AEL) ranges set out in the best available techniques (BAT) conclusions for large combustion plants. No significant cross-media effects occur.

For nuclear power plants greater than 1 MW thermal input but below the thresholds for the BAT conclusions for large combustion plants to apply, emissions are below the emission limit values set out in Annex II, part 2, to Directive (EU) 2015/2193.

Radioactive discharges to air, water bodies and ground (soil) comply with individual licence conditions for the specific operations, where applicable, and/or national threshold values in line with Directive 2013/51/Euratom and Directive 2013/59/Euratom).

Spent fuel and radioactive waste is safely and responsibly managed in accordance with Directive 2011/70/Euratom and Directive 2013/59/Euratom.

An adequate capacity of interim storage is available for the project, while national plans for disposal are in place to minimize the duration of interim storage, in compliance with the provision of Directive 2011/70/Euratom that considers radioactive waste storage, including long-term storage, as an interim solution, but not an alternative to disposal.

(6)  Protection and restoration of biodiversity and ecosystems

The activity complies with the criteria set out in Appendix D to this Annex.

An Environmental Impact Assessment is completed prior to the construction of a nuclear power plant, in accordance with Directive 2011/92/EU. The required mitigation and compensatory measures are implemented.

For sites/operations located in or near biodiversity sensitive areas likely to have a significant effect on biodiversity sensitive areas (including the Natura 2000 network of protected areas, Unesco World Heritage sites and Key Biodiversity Areas, as well as other protected areas), an appropriate assessment, where applicable, has been conducted and based on its conclusions the necessary mitigation measures are implemented.

The sites/operations shall not be detrimental to the conservation status of any of the habitats or species present in protected areas.

Substantial contribution to climate change adaptation

1.  The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.

2.  The physical climate risks that are material to the activity have been identified from those listed in Appendix A to this Annex by performing a robust climate risk and vulnerability assessment with the following steps:

(a)  screening of the activity to identify which physical climate risks from the list in Appendix A to this Annex may affect the performance of the economic activity during its expected lifetime;

(b)  where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A to this Annex, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;

(c)  an assessment of adaptation solutions that can reduce the identified physical climate risk.

The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that:

(a)  for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;

(b)  for all other activities, the assessment is performed using the highest available resolution, state-of-the-art climate projections across the existing range of future scenarios (1) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.

3.  The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports (2), scientific peer-reviewed publications and open source (3) or paying models.

4.  The adaptation solutions implemented:

(a)  do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;

(b)  favour nature-based solutions (4) or rely on blue or green infrastructure (5) to the extent possible;

(c)  are consistent with local, sectoral, regional or national adaptation plans and strategies;

(d)  are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;

(e)  where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.

Do no significant harm (‘DNSH’)

(1)  Climate change mitigation

The direct GHG emissions of the activity are lower than 270 g CO2e/kWh.

(3)  Sustainable use and protection of water and marine resources

The activity complies with the criteria set out in Appendix B to this Annex.

(4)  Transition to a circular economy