ANNEX I
Technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to the sustainable use and protection of water and marine resources and for determining whether that economic activity causes no significant harm to any of the other environmental objectives
Table of Contents
1. |
Manufacturing | 11 |
1.1. |
Manufacture, installation and associated services for leakage control technologies enabling leakage reduction and prevention in water supply systems | 11 |
2. |
Water supply, sewerage, waste management and remediation activities | 12 |
2.1. |
Water supply | 12 |
2.2. |
Urban waste water treatment | 15 |
2.3. |
Sustainable urban drainage systems (SUDS) | 16 |
3. |
Disaster risk management | 18 |
3.1. |
Nature-based solutions for flood and drought risk prevention and protection | 18 |
4. |
Information and communication | 21 |
4.1. |
Provision of IT/OT data-driven solutions for leakage reduction | 21 |
1. Manufacturing
1.1. Manufacture, installation and associated services for leakage control technologies enabling leakage reduction and prevention in water supply systems
Description of the activity
The economic activity manufactures, installs, or provides associated services for leakage control technologies that enable leakage reduction and prevention in water supply systems (WSSs).
The economic activities in this category could be associated with several NACE codes, in particular E36 and F42.99, in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.
An economic activity in this category is an enabling activity in accordance with Article 12(1), point (e), of Regulation (EU) 2020/852 where it complies with the technical screening criteria set out in this Section.
Technical screening criteria
Substantial contribution to the sustainable use and protection of water and marine resources |
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Do no significant harm (‘DNSH’) |
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N/A |
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The activity complies with the criteria set out in Appendix A to this Annex. |
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The activity assesses the availability of and, where feasible, adopts techniques that support:
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The activity complies with the criteria set out in Appendix C to this Annex. |
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The activity complies with the criteria set out in Appendix D to this Annex. |
2. Water supply, sewerage, waste management and remediation activities
2.1. Water supply
Description of the activity
Construction, extension, operation, and renewal of water collection, treatment and supply systems intended for human consumption based on the abstraction of natural resources of water from surface or ground water sources.
The economic activity includes abstraction of the water resource, necessary treatment to make the quality of water compliant with the applicable legislation and distribution to the population and food business operators in piped systems.
The economic activity does not cover irrigation and abstraction of water resources for desalination of marine or brackish water.
The economic activities in this category could be associated with several NACE codes, in particular E36.00 and F42.9, in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.
Technical screening criteria
Substantial contribution to the sustainable use and protection of water and marine resources |
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Do no significant harm (‘DNSH’) |
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N/A |
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The activity complies with the criteria set out in Appendix A to this Annex. |
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N/A |
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N/A |
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The activity complies with the criteria set out in Appendix D to this Annex. |
2.2. Urban waste water treatment
Description of the activity
Construction, extension, upgrade, operation and renewal of urban waste water infrastructure including treatment plants, sewer networks, storm water management structures, connections to the waste water infrastructure, decentralised wastewater treatment facilities, including individual and other appropriate systems, and discharge structures for treated effluent. The activity may include innovative and advanced treatments, including the removal of micropollutants.
The economic activities in this category could be associated with several NACE codes, in particular E37.00 and F42.9, in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.
Technical screening criteria
Substantial contribution to the sustainable use and protection of water and marine resources |
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Do no significant harm (‘DNSH’) |
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An assessment of the direct GHG emissions from the centralised waste water system, including collection (sewer network) and treatment, has been performed. The results are disclosed to investors and clients on demand (8). For anaerobic digestion of sewage sludge, a monitoring plan is in place for methane leakage at the facility. |
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The activity complies with the criteria set out in Appendix A to this Annex. |
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N/A |
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Discharges to receiving waters meet the requirements laid down in Directive 91/271/EEC or as required by national provisions stating maximum permissible pollutant levels from discharges to receiving waters. Measures have been implemented to avoid and mitigate harmful storm water overflows from the waste water collection system, which may include nature-based solutions, separate storm water collection systems, retention tanks and treatment of the first flush. Sewage sludge is used in accordance with Council Directive 86/278/EEC (9) or as required by national law relating to the spreading of sludge on the soil or any other application of sludge on and in the soil. |
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The activity complies with the criteria set out in Appendix D to this Annex. |
2.3. Sustainable urban drainage systems (SUDS)
Description of the activity
Construction, extension, operation and renewal of urban drainage systems facilities that mitigate pollution and flood hazards due to discharges of urban runoff and improve the urban water quality and quantity, by harnessing natural processes, such as infiltration and retention.
The activity includes SUDS promoting infiltration, evaporation and other stormwater treatments (including water butts, site layout and management, pervious pavements, filter drains, swales, filter strips, ponds, wetlands, soakaways, infiltration trenches and basins, green roofs, bioretention areas and stormwater pre-treatment devices, including sand filters or silt removal devices (10)) and other innovative systems.
The activity does not include nature-based solutions for flood and drought risk prevention and protection outside the urban environment (see Section 3.1 of this Annex).
The economic activities in this category could be associated with several NACE codes, in particular E36.00, E37.00 and F42.9 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.
Technical screening criteria
Substantial contribution to the sustainable use and protection of water and marine resources |
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The activity leads to a retention of rainwater in a specific area or to an improvement in water quality by complying with the following criteria:
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Do no significant harm (‘DNSH’) |
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N/A |
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The activity complies with the criteria set out in Appendix A to this Annex. |
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N/A |
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Depending on the origin of the received water and the different pollutant load, such as rainwater, rainfall run-offs from roofs, rainfall run-offs from roads, or stormwater, SUDS treat these waters before discharging or infiltrating the water into other environmental media. |
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The activity complies with the criteria set out in Appendix D to this Annex. The introduction of invasive alien species is prevented or their spread is managed in accordance with Regulation (EU) No 1143/2014 of the European Parliament and of the Council (12). |
3. Disaster risk management
3.1. Nature-based solutions for flood and drought risk prevention and protection
Description of the activity
Planning, construction, extension, and operation of large-scale nature-based flood or drought management and coastal, transitional or inland aquatic ecosystem restoration measures contributing to preventing and protecting against flooding or droughts, and enhancing natural water retention, biodiversity and water quality.
These large-scale nature-based flood or drought management measures are applied in peri-urban, rural and coastal areas and are coordinated at river basin, regional or local, such as municipal, scale.
The economic activity includes:
(a) |
river or lake related measures, including:
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(b) |
wetland measures, including:
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(c) |
coastal measures, including:
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(d) |
river basin-wide management measures, including:
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The activity does not include small-scale nature-based solutions to reduce flood and drought, including green and blue solutions applied in an urban setting, such as green roofs, swales, permeable surfaces and infiltration basins for urban storm water management purposes or Sustainable Urban Drainage Systems (see Section 2.3 of this Annex).
The economic activities in this category could be associated with NACE code F42.91 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.
Technical screening criteria
Substantial contribution to the sustainable use and protection of water and marine resources |
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Do no significant harm (‘DNSH’) |
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The activity does not involve the degradation of land and marine environment with high carbon stock (16). |
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The activity complies with the criteria set out in Appendix A to this Annex. |
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Operators limit waste generation in processes related to construction and demolition and take into account best available techniques. At least 70 % (by weight) of the non-hazardous construction and demolition waste (excluding naturally occurring material referred to in category 17 05 04 in the European List of Waste established by Decision 2000/532/EC) generated on the construction site is prepared for reuse, recycling and other material recovery, including backfilling operations using waste to substitute other materials, in accordance with the waste hierarchy and the EU Construction and Demolition Waste Management Protocol (17). Operators use selective demolition to enable removal and safe handling of hazardous substances and facilitate reuse and high-quality recycling. |
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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 of the European Parliament and of the Council (18), with exception of occasions where the use of pesticides is needed to control outbreaks of pests and diseases. The activity minimises the use of fertilisers and does not use manure. |
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The activity complies with the criteria set out in Appendix D to this Annex. In addition, the following is to be ensured:
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4. Information and communication
4.1. Provision of IT/OT data-driven solutions for leakage reduction
Description of the activity
The activity manufactures, develops, installs, deploys, maintains, repairs or provides professional services, including technical consulting for design or monitoring, for information technology (IT) or operational technology (OT) data driven solutions (21) to control, manage, reduce and mitigate leakage in water supply systems (WSSs).
The economic activities in this category could be associated with several NACE codes, in particular E36, F42.99 and J62 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.
An economic activity in this category is an enabling activity in accordance with Article 12(1), point (e), of Regulation (EU) 2020/852 where it complies with the technical screening criteria set out in this Section.
Technical screening criteria
Substantial contribution to the sustainable use and protection of water and marine resources |
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Do no significant harm (‘DNSH’) |
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N/A |
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The activity complies with the criteria set out in Appendix A to this Annex. |
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Measures are in place to manage and recycle waste at the end-of life, including through decommissioning contractual agreements with recycling service providers, reflection in financial projections or official project documentation. These measures ensure that components and materials are segregated and treated to maximise recycling and reuse in accordance with the waste hierarchy, EU waste regulation principles and applicable regulations, in particular through the reuse and recycling of batteries and electronics and the critical raw materials therein. These measures also include the control and management of hazardous materials. Preparation for re-use, recovery or recycling operations, or proper treatment, including the removal of all fluids and a selective treatment are performed in accordance with Annex VII to Directive 2012/19/EU of the European Parliament and of the Council (23). |
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The equipment used meets the requirements laid down in Directive 2009/125/EC of the European Parliament and of the Council (24) for servers and data storage products. The equipment used does not contain the restricted substances listed in Annex II to Directive 2011/65/EU of the European Parliament and of the Council (25), except where the concentration values by weight in homogeneous materials do not exceed the maximum values listed in that Annex. |
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N/A |
(1) For activities in third countries, in accordance with applicable national law or international standards which pursue equivalent objectives of good water status and good ecological potential, through equivalent procedural and substantive rules, i.e. a water use and protection management plan developed in consultation with relevant stakeholders which ensures that (1) the impact of the activities on the identified status or ecological potential of potentially affected water body or bodies is assessed; and (2) deterioration or prevention of good status/ecological potential is avoided.
(2) Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment (OJ L 26, 28.1.2012, p. 1).
(3) Commission Implementing Decision (EU) 2022/679 of 19 January 2022 establishing a watch list of substances and compounds of concern for water intended for human consumption as provided for in Directive (EU) 2020/2184 of the European Parliament and of the Council (OJ L 124, 27.4.2022, p. 41).
(4) The Infrastructure Leakage Index (ILI) is calculated as current annual real losses (CARL)/unavoidable annual real losses (UARL). The current annual real losses (CARL) represent the amount of water that is actually lost from the distribution network (i.e. not delivered to final users). The unavoidable annual real losses (UARL) take into consideration that there will always be some leakage in a water distribution network. The UARL is calculated based on factors such as the length of the network, the number of service connections and the pressure at which the network is operating.
(5) For activities in third countries, in accordance with applicable national law or international standards which pursue equivalent objectives of good water status and good ecological potential, through equivalent procedural and substantive rules, i.e. a water use and protection management plan developed in consultation with relevant stakeholders which ensures that (1) the impact of the activities on the identified status or ecological potential of potentially affected water body or bodies is assessed; and (2) deterioration or prevention of good status/ecological potential is avoided.
(6) For activities in third countries, in accordance with applicable national law or international standards which pursue equivalent objectives of good water status and good ecological potential, through equivalent procedural and substantive rules, i.e. a water use and protection management plan developed in consultation with relevant stakeholders which ensures that (1) the impact of the activities on the identified status or ecological potential of potentially affected water body or bodies is assessed; and (2) deterioration or prevention of good status/ecological potential is avoided.
(7) Population equivalent (p.e.) means the organic biodegradable load having a five-day biochemical oxygen demand (BOD5) of 60 g of oxygen per day.
(8) For example, in line with IPCC guidelines for national GHG inventories for waste water treatment, version of 27.6.2023 available at: https://www.ipcc-nggip.iges.or.jp/public/2019rf/pdf/5_Volume5/19R_V5_6_Ch06_Wastewater.pdf.
(9) Council Directive 86/278/EEC of 12 June 1986 on the protection of the environment, and in particular of the soil, when sewage sludge is used in agriculture (OJ L 181, 4.7.1986, p. 6).
(10) As defined in the document JRC Publications Repository – Best Environmental Management Practice for the Public Administration Sector (europa.eu).
(11) For activities in third countries, in accordance with applicable national law or international standards which pursue equivalent objectives of good water status and good ecological potential, through equivalent procedural and substantive rules, i.e. a water use and protection management plan, developed in consultation with relevant stakeholders which ensures that (1) the impact of the activities on the identified status or ecological potential of potentially affected water body or bodies is assessed; and (2) deterioration or prevention of good status/ecological potential is avoided.
(12) Regulation (EU) No 1143/2014 of the European Parliament and of the Council of 22 October 2014 on the prevention and management of the introduction and spread of invasive alien species (OJ L 317, 4.11.2014, p. 35).
(13) Managed aquifer recharge is ‘the process of intentionally recharging an aquifer with water from a different place for subsequent recovery or for environmental benefits’.
(14) Directive 2007/60/EC of the European Parliament and of the Council of 23 October 2007 on the assessment and management of flood risks (OJ L 288, 6.11.2007, p. 27).
(15) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, EU Biodiversity Strategy for 2030 – Bringing nature back into our lives, COM(2020) 380 final.
(16) Land with high-carbon stock means wetlands, including peatland, and continuously forested areas within the meaning of Article 29(4)(a), (b) and (c) of Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).
(17) EU Construction & Demolition Waste Management Protocol, September 2016: https://ec.europa.eu/docsroom/documents/20509/.
(18) Directive 2009/128/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for Community action to achieve the sustainable use of pesticides (OJ L 309, 24.11.2009, p. 71).
(19) Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora (OJ L 206, 22.7.1992, p. 7).
(20) Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds (OJ L 20, 26.1.2010, p. 7).
(21) ‘IT or OT data-driven solutions’ include connectable products, sensors, analytics and other software, and information and communication technologies (ICT) for the transmission, storage and display of data and system management.
(22) For activities in third countries, in accordance with applicable national law or international standards which pursue equivalent objectives of good water status and good ecological potential, through equivalent procedural and substantive rules, i.e. a water use and protection management plan developed in consultation with relevant stakeholders which ensures that (1) the impact of the activities on the identified status or ecological potential of potentially affected water body or bodies is assessed; and (2) deterioration or prevention of good status/ecological potential is avoided.
(23) Directive 2012/19/EU of the European Parliament and of the Council of 4 July 2012 on waste electrical and electronic equipment (WEEE) (OJ L 197, 24.7.2012, p. 38).
(24) Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for the setting of ecodesign requirements for energy-related products (OJ L 285, 31.10.2009, p. 10).
(25) Directive 2011/65/EU of the European Parliament and of the Council of 8 June 2011 on the restriction of the use of certain hazardous substances in electrical and electronic equipment (OJ L 174, 1.7.2011, p. 88).