Article 10
Auctioning of allowances
自2019年起，成員國應拍賣所有未按照本指令第10a和10c條免費分配且未列入歐洲議會第(EU) 2015/1814號決定建立的市場穩定儲備的配額 和理事會 (2)（“市場穩定儲備金”）或根據本指令第 12(4) 條取消。
From 2021 onwards, and without prejudice to a possible reduction pursuant to Article 10a(5a), the share of allowances to be auctioned shall be 57 %.
從 2021 年起，在不影響根據第 10a(5a) 條可能減少的情況下，拍賣的配額份額應為 57%。
2 % of the total quantity of allowances between 2021 and 2030 shall be auctioned to establish a fund to improve energy efficiency and modernise the energy systems of certain Member States as set out in Article 10d (‘the Modernisation Fund’).
應拍賣 2021 年至 2030 年間配額總量的 2%，以設立基金，以提高能源效率並實現第 10d 條規定的某些成員國的能源系統現代化（“現代化基金”）。
The total remaining quantity of allowances to be auctioned by Member States shall be distributed in accordance with paragraph 2.
成員國拍賣的剩餘配額總量應按照第 2 款進行分配。
如果成員國在本指令 M9 第 13 條提到的每個時期的最後一年拍賣的配額數量超過適用該指令之前下一時期前兩年的預期平均拍賣數量的 30% 以上 (EU) 2015/1814號決定第1條第(5)款，應從該期間最後一年的拍賣數量中扣除數量差額的三分之二，並等額添加到成員國拍賣的數量中 在接下來的前兩年。
The total quantity of allowances to be auctioned by each Member State shall be composed as follows:
M9 90 % of the total quantity of allowances to be auctioned being distributed amongst Member States in shares that are identical to the share of verified emissions under the M9 EU ETS for 2005 or the average of the period from 2005 to 2007, whichever one is the highest, of the Member State concerned;
待拍賣配額總量的 90% 在成員國之間分配，其份額與 2005 年 M9 EU ETS 下核實的排放量份額或 2005 年至 2007 年期間的平均值相同，以較高者為準 ，有關成員國的；
10 % of the total quantity of allowances to be auctioned being distributed amongst certain Member States for the purposes of solidarity, growth and interconnections within the Union, thereby increasing the amount of allowances that those Member States auction under point (a) by the percentages specified in Annex IIa.
出於歐盟內部團結、增長和互聯的目的，將拍賣配額總量的 10% 分配給某些成員國，從而按照指定的百分比增加這些成員國根據 (a) 點拍賣的配額數量 見Annex IIa。
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For the purposes of point (a), in respect of Member States which did not participate in the M9 EU ETS in 2005, their share shall be calculated using their verified emissions under the M9 EU ETS in 2007.
就(a)點而言，對於2005年未參加M9 EU ETS的成員國，其份額應使用其2007年在M9 EU ETS下核實的排放量來計算。
If necessary, the percentages referred to in point (b) shall be adapted in a proportional manner to ensure that the distribution is 10 %.
如有必要，應按比例調整 (b) 點中提到的百分比，以確保分配為 10%。
Member States shall determine the use of revenues generated from the auctioning of allowances. At least 50 % of the revenues generated from the auctioning of allowances referred to in paragraph 2, including all revenues from the auctioning referred to in paragraph 2, points (b) and (c), or the equivalent in financial value of these revenues, should be used for one or more of the following:
成員國應決定配額拍賣所產生收入的用途。 第 2 段中提到的配額拍賣產生的收入的至少 50%，包括第 2 段 (b) 和 (c) 點中提到的所有拍賣收入，或這些收入的同等財務價值， 應用於以下一項或多項：
to reduce greenhouse gas emissions, including by contributing to the Global Energy Efficiency and Renewable Energy Fund and to the Adaptation Fund as made operational by the Poznan Conference on Climate Change (COP 14 and COP/MOP 4), to adapt to the impacts of climate change and to fund research and development as well as demonstration projects for reducing emissions and for adaptation to climate change, including participation in initiatives within the framework of the European Strategic Energy Technology Plan and the European Technology Platforms;
減少溫室氣體排放，包括向全球能源效率和可再生能源基金以及波茲南氣候變化會議（第十四屆締約方會議和第四屆締約方會議/締約方會議）設立的適應基金捐款，以適應氣候變化的影響 變化並資助研究和開發以及減少排放和適應氣候變化的示範項目，包括參與歐洲戰略能源技術計劃和歐洲技術平台框架內的舉措；
to develop renewable energies to meet the commitment of the Union to renewable energies, as well as to develop other technologies that contribute to the transition to a safe and sustainable low-carbon economy, and to help to meet the commitment of the Union to increase energy efficiency, at the levels agreed in relevant legislative acts;
開發可再生能源以履行歐盟對可再生能源的承諾，並開發有助於向安全和可持續的低碳經濟過渡的其他技術，並幫助履行歐盟增加能源的承諾 效率，達到相關立法法案商定的水平；
measures to avoid deforestation and increase afforestation and reforestation in developing countries that have ratified the international agreement on climate change, to transfer technologies and to facilitate adaptation to the adverse effects of climate change in these countries;
採取措施，在已批准《氣候變化國際協定》的發展中國家避免毀林並增加造林和再造林，轉讓技術並促進這些國家適應氣候變化的不利影響；
forestry sequestration in the M9 Union ;
M9聯盟的林業封存；
the environmentally safe capture and geological storage of CO2, in particular from solid fossil fuel power stations and a range of industrial sectors and subsectors, including in third countries;
對二氧化碳進行環境安全的捕獲和地質封存，特別是來自固體化石燃料發電站和一系列工業部門和分部門（包括第三國）的二氧化碳；
to encourage a shift to low-emission and public forms of transport;
鼓勵轉向低排放和公共交通方式；
to finance research and development in energy efficiency and clean technologies in the sectors covered by this Directive;
資助本指令所涵蓋部門的能源效率和清潔技術的研究和開發；
measures intended to improve energy efficiency, district heating systems and insulation, or to provide financial support in order to address social aspects in lower- and middle-income households;
旨在提高能源效率、區域供暖系統和保溫材料或提供財政支持以解決中低收入家庭社會問題的措施；
to cover administrative expenses of the management of the M9 EU ETS ;
支付 M9 歐盟排放交易體繫管理的行政費用；
to finance climate actions in vulnerable third countries, including the adaptation to the impacts of climate change;
為脆弱的第三國的氣候行動提供資金，包括適應氣候變化的影響；
to promote skill formation and reallocation of labour in order to contribute to a just transition to a low carbon economy, in particular in regions most affected by the transition of jobs, in close coordination with the social partners.
與社會夥伴密切協調，促進技能形成和勞動力重新分配，以促進向低碳經濟的公正轉型，特別是在受就業轉型影響最嚴重的地區。
Member States shall be deemed to have fulfilled the provisions of this paragraph if they have in place and implement fiscal or financial support policies, including in particular in developing countries, or domestic regulatory policies, which leverage financial support, established for the purposes set out in the first subparagraph and which have a value equivalent to at least 50 % of the revenues generated from the auctioning of allowances referred to in paragraph 2, including all revenues from the auctioning referred to in paragraph 2, points (b) and (c).
如果成員國已經制定並實施財政或金融支持政策（特別是在發展中國家），或利用金融支持的國內監管政策，則應被視為已履行本款的規定。 第一項，其價值至少相當於第 2 段所述配額拍賣所產生收入的 50%，包括第 2 段 (b) 和 (c) 點所述拍賣產生的所有收入。
Member States shall inform the Commission as to the use of revenues and the actions taken pursuant to this paragraph in their reports submitted under Decision No 280/2004/EC.
成員國應在根據第 280/2004/EC 號決定提交的報告中向委員會通報收入的使用情況以及根據本段採取的行動。
The Commission is empowered to adopt delegated acts in accordance with Article 23 to supplement this Directive concerning the timing, administration and other aspects of auctioning, in order to ensure that it is conducted in an open, transparent, harmonised and non-discriminatory manner. To that end, the process shall be predictable, in particular as regards the timing and sequencing of auctions and the estimated volumes of allowances to be made available.
委員會有權根據第 23 條採取授權行為來補充本指令有關拍賣的時間、管理和其他方面的內容，以確保拍賣以公開、透明、協調和非歧視的方式進行。 為此，該過程應是可預測的，特別是在拍賣的時間和順序以及預計提供的配額量方面。
Those delegated acts shall ensure that auctions are designed to ensure that:
這些授權行為應確保拍賣的設計能夠確保：
operators, and in particular any small and medium-sized enterprises covered by the EU ETS, have full, fair and equitable access;
運營商，特別是歐盟排放交易體系覆蓋的任何中小企業，擁有充分、公平和公正的准入；
all participants have access to the same information at the same time and that participants do not undermine the operation of the auctions;
所有參與者都可以同時訪問相同的信息，並且參與者不會破壞拍賣的運作；
the organisation of, and participation in, the auctions is cost-efficient and undue administrative costs are avoided; and
拍賣的組織和參與具有成本效益，並且避免了不當的行政費用； 和
access to allowances is granted to small emitters.
小排放者可以獲得配額。
Member States shall report on the proper implementation of the auctioning rules for each auction, in particular with respect to fair and open access, transparency, price formation and technical and operational aspects. These reports shall be submitted within one month of the auction concerned and shall be published on the Commission's website.
成員國應報告每次拍賣的拍賣規則的正確執行情況，特別是在公平和公開的准入、透明度、價格形成以及技術和操作方面。 這些報告應在相關拍賣後一個月內提交，並應在委員會網站上公佈。
委員會應監督歐洲碳市場的運作。 M9 每年應向歐洲議會和理事會提交一份關於碳市場運作情況以及其他相關氣候和能源政策的報告，包括拍賣的運作、流動性和交易量，並總結信息 成員國就第 10a(6) 條提及的財務措施提供的規定。 如有必要，成員國應確保在委員會通過報告之前至少兩個月向委員會提交任何相關信息。
Transitional M9 Union -wide rules for harmonised free allocation
The Commission is empowered to adopt delegated acts in accordance with Article 23 to supplement this Directive concerning the Union-wide and fully harmonised rules for the allocation of allowances referred to in paragraphs 4, 5, 7 and 19 of this Article.
委員會有權根據第 23 條採取授權行為，以補充本指令，涉及本條第 4、5、7 和 19 段中提及的全聯盟範圍內完全統一的配額分配規則。
The measures referred to in the first subparagraph shall, to the extent feasible, determine M9 Union -wide ex-ante benchmarks so as to ensure that allocation takes place in a manner that provides incentives for reductions in greenhouse gas emissions and energy efficient techniques, by taking account of the most efficient techniques, substitutes, alternative production processes, high efficiency cogeneration, efficient energy recovery of waste gases, use of biomass and capture and storage of CO2, where such facilities are available, and shall not provide incentives to increase emissions. No free allocation shall be made in respect of any electricity production, except for cases falling within Article 10c and electricity produced from waste gases.
第一段提到的措施應在可行的情況下確定 M9 聯盟範圍內的事前基準，以確保分配的方式能夠為減少溫室氣體排放和節能技術提供激勵： 考慮到最有效的技術、替代品、替代生產工藝、高效熱電聯產、廢氣的高效能量回收、生物質的利用以及二氧化碳的捕獲和儲存（如果有此類設施），並且不得提供增加排放的激勵措施。 任何電力生產均不得無償分配，但屬於第 10c 條規定的情況和廢氣發電除外。
For each sector and subsector, in principle, the benchmark shall be calculated for products rather than for inputs, in order to maximise greenhouse gas emissions reductions and energy efficiency savings throughout each production process of the sector or the subsector concerned.
對於每個部門和分部門，原則上應根據產品而不是投入來計算基準，以便在相關部門或分部門的每個生產過程中最大限度地減少溫室氣體排放和節能。
In defining the principles for setting ex-ante benchmarks in individual sectors and subsectors, the Commission shall consult the relevant stakeholders, including the sectors and subsectors concerned.
在確定為各個部門和分部門設定事前基準的原則時，委員會應諮詢相關利益相關者，包括相關部門和分部門。
The Commission shall, upon the approval by the M9 Union of an international agreement on climate change leading to mandatory reductions of greenhouse gas emissions comparable to those of the M9 Union , review those measures to provide that free allocation is only to take place where this is fully justified in the light of that agreement.
在 M9 聯盟批准一項關於氣候變化的國際協議後，委員會應審查這些措施，以規定只有在符合條件的情況下才能進行免費分配，該協議將強制減少與 M9 聯盟相當的溫室氣體排放量。 根據該協議，這是完全合理的。
In defining the principles for setting ex-ante benchmarks in individual sectors or subsectors, the starting point shall be the average performance of the 10 % most efficient installations in a sector or subsector in the M9 Union in the years 2007-2008. The Commission shall consult the relevant stakeholders, including the sectors and subsectors concerned.
The M9 acts pursuant to Articles 14 and 15 shall provide for harmonised rules on monitoring, reporting and verification of production-related greenhouse gas emissions with a view to determining the ex-ante benchmarks.
The Commission shall adopt implementing acts for the purpose of determining the revised benchmark values for free allocation. Those acts shall be in accordance with the delegated acts adopted pursuant to paragraph 1 of this Article and shall comply with the following:
For the period from 2021 to 2025, the benchmark values shall be determined on the basis of information submitted pursuant to Article 11 for the years 2016 and 2017. On the basis of a comparison of those benchmark values with the benchmark values contained in Commission Decision 2011/278/EU ( 3 ), as adopted on 27 April 2011, the Commission shall determine the annual reduction rate for each benchmark, and shall apply it to the benchmark values applicable in the period from 2013 to 2020 in respect of each year between 2008 and 2023 to determine the benchmark values for the period from 2021 to 2025.
Where the annual reduction rate exceeds 1,6 % or is below 0,2 %, the benchmark values for the period from 2021 to 2025 shall be the benchmark values applicable in the period from 2013 to 2020 reduced by whichever of those two percentage rates is relevant, in respect of each year between 2008 and 2023.
For the period from 2026 to 2030, the benchmark values shall be determined in the same manner as set out in points (a) and (b) on the basis of information submitted pursuant to Article 11 for the years 2021 and 2022 and on the basis of applying the annual reduction rate in respect of each year between 2008 and 2028.
By way of derogation regarding the benchmark values for aromatics, hydrogen and syngas, these benchmark values shall be adjusted by the same percentage as the refineries benchmarks in order to preserve a level playing field for producers of those products.
The implementing acts referred to in the third subparagraph shall be adopted in accordance with the examination procedure referred to in Article 22a(2).
In order to promote efficient energy recovery from waste gases, for the period referred to in point (b) of the third subparagraph, the benchmark value for hot metal, which predominantly relates to waste gases, shall be updated with an annual reduction rate of 0,2 %.
Where less than 3 % of the total quantity of allowances is needed to increase the maximum amount available under paragraph 5:
Member States shall also seek to use no more than 25 % of the revenues generated from the auctioning of allowances for the financial measures referred to in the first subparagraph. Within three months of the end of each year, Member States that have such financial measures in place shall make available to the public, in an easily accessible form, the total amount of compensation provided per benefitting sector and subsector. As from 2018, in any year in which a Member State uses more than 25 % of the revenues generated from the auctioning of allowances for such purposes, it shall publish a report setting out the reasons for exceeding that amount. The report shall include relevant information on electricity prices for large industrial consumers benefiting from such financial measures, without prejudice to requirements regarding the protection of confidential information. The report shall also include information on whether due consideration has been given to other measures to sustainably lower indirect carbon costs in the medium to long term.
The Commission shall include in the report provided for in Article 10(5), inter alia, an assessment of the effects of such financial measures on the internal market and, where appropriate, recommend any measures that may be necessary pursuant to that assessment.
Those measures shall be such as to ensure that there is adequate protection against the risk of carbon leakage, based on ex-ante benchmarks for the indirect emissions of CO2 per unit of production. Those ex-ante benchmarks shall be calculated for a given sector or subsector as the product of the electricity consumption per unit of production corresponding to the most efficient available technologies and of the CO2 emissions of the relevant European electricity production mix.
M9 Allowances from the maximum amount referred to in paragraph 5 of this Article which were not allocated for free by 2020 shall be set aside for new entrants, together with 200 million allowances placed in the market stability reserve pursuant to Article 1(3) of Decision (EU) 2015/1814. Of the allowances set aside, up to 200 million shall be returned to the market stability reserve at the end of the period from 2021 to 2030 if not allocated for that period.
From 2021, allowances that pursuant to paragraphs 19 and 20 are not allocated to installations shall be added to the amount of allowances set aside in accordance with the first sentence of the first subparagraph of this paragraph.
Allocations shall be adjusted by the linear factor referred to in Article 9.
No free allocation shall be made in respect of any electricity production by new entrants.
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M9 325 million allowances from the quantity which could otherwise be allocated for free pursuant to this Article, and 75 million allowances from the quantity which could otherwise be auctioned pursuant to Article 10, shall be made available to support innovation in low-carbon technologies and processes in sectors listed in Annex I, including environmentally safe carbon capture and utilisation (‘CCU’) that contributes substantially to mitigating climate change, as well as products substituting carbon intensive ones produced in sectors listed in Annex I, and to help stimulate the construction and operation of projects that aim at the environmentally safe capture and geological storage (‘CCS’) of CO2, as well as of innovative renewable energy and energy storage technologies; in geographically balanced locations within the territory of the Union (the ‘innovation fund’). Projects in all Member States, including small-scale projects, shall be eligible.
In addition, 50 million unallocated allowances from the market stability reserve shall supplement any remaining revenues from the 300 million allowances available in the period from 2013 to 2020 under Commission Decision 2010/670/EU ( 5 ), and shall be used in a timely manner for innovation support as referred to in the first subparagraph.
Projects shall be selected on the basis of objective and transparent criteria, taking into account, where relevant, the extent to which projects contribute to achieving emission reductions well below the benchmarks referred to in paragraph 2. Projects shall have the potential for widespread application or to significantly lower the costs of transitioning towards a low-carbon economy in the sectors concerned. Projects involving CCU shall deliver a net reduction in emissions and ensure avoidance or permanent storage of CO2. Technologies receiving support shall not yet be commercially available but shall represent breakthrough solutions or be sufficiently mature to be ready for demonstration at pre-commercial scale. Up to 60 % of the relevant costs of projects may be supported, out of which up to 40 % need not be dependent on verified avoidance of greenhouse gas emissions, provided that pre-determined milestones, taking into account the technology deployed, are attained.
The Commission is empowered to adopt delegated acts in accordance with Article 23 to supplement this Directive concerning rules on the operation of the innovation fund, including the selection procedure and criteria.
Allowances shall be set aside for the projects that meet the criteria referred to in the third subparagraph. Support for these projects shall be given via Member States and shall be complementary to substantial co-financing by the operator of the installation. They could also be co-financed by the Member State concerned, as well as by other instruments. No project shall receive support via the mechanism under this paragraph that exceeds 15 % of the total number of allowances available for this purpose. These allowances shall be taken into account under paragraph 7.
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Transitional measures to support certain energy intensive industries in the event of carbon leakage
Sectors and subsectors in relation to which the product resulting from multiplying their intensity of trade with third countries by their emission intensity exceeds 0,15 may be included in the group referred to in paragraph 1, using data for the years from 2014 to 2016, on the basis of a qualitative assessment and of the following criteria:
the extent to which it is possible for individual installations in the sector or subsector concerned to reduce emission levels or electricity consumption;
current and projected market characteristics, including, where relevant, any common reference price;
profit margins as a potential indicator of long-run investment or relocation decisions, taking into account changes in costs of production relating to emission reductions.
Within three months of the publication referred to in the first subparagraph, the sectors and subsectors referred to in that subparagraph may apply to the Commission for either a qualitative assessment of their carbon leakage exposure at a 4-digit level (NACE-4 code) or an assessment on the basis of the classification of goods used for statistics on industrial production in the Union at an 8-digit level (Prodcom). To that end, sectors and subsectors shall submit duly substantiated, complete and independently verified data to enable the Commission to carry out the assessment together with the application.
Where a sector or subsector chooses to be assessed at a 4-digit level (NACE-4 code), it may be included in the group referred to in paragraph 1 on the basis of the criteria referred to in points (a), (b) and (c) of paragraph 2. Where a sector or subsector chooses to be assessed at an 8-digit level (Prodcom), it shall be included in the group referred to in paragraph 1 provided that, at that level, the threshold of 0,2 referred to in paragraph 1 is exceeded.
Sectors and subsectors for which free allocation is calculated on the basis of the benchmark values referred to in the fourth subparagraph of Article 10a(2) may also request to be assessed in accordance with the third subparagraph of this paragraph.
By way of derogation from paragraphs 1 and 2, a Member State may request, by 30 June 2018, that a sector or subsector listed in the Annex to Commission Decision 2014/746/EU ( 6 ) in respect of classifications at a 6-digit or an 8-digit level (Prodcom) be considered to be included in the group referred to in paragraph 1. Any such request shall only be considered where the requesting Member State establishes that the application of that derogation is justified on the basis of duly substantiated, complete, verified and audited data for the five most recent years provided by the sector or subsector concerned, and includes all relevant information with its request. On the basis of those data, the sector or subsector concerned shall be included in respect of those classifications where, within a heterogeneous 4-digit level (NACE-4 code), it is shown that it has a substantially higher trade and emission intensity at a 6-digit or an 8-digit level (Prodcom), exceeding the threshold set out in paragraph 1.
Option for transitional free allocation for the modernisation of the energy sector
The Member State concerned shall organise a competitive bidding process, to take place in one or more rounds between 2021 and 2030, for projects involving a total amount of investment exceeding EUR 12,5 million, in order to select the investments to be financed with free allocation. That competitive bidding process shall:
comply with the principles of transparency, non-discrimination, equal treatment and sound financial management;
ensure that only projects which contribute to the diversification of their energy mix and sources of supply, the necessary restructuring, environmental upgrading and retrofitting of the infrastructure, clean technologies, such as renewable energy technologies, or modernisation of the energy production sector, such as efficient and sustainable district heating, and of the transmission and distribution sector, are eligible to bid;
define clear, objective, transparent and non-discriminatory selection criteria for the ranking of projects, so as to ensure that only projects are selected which:
on the basis of a cost-benefit analysis, ensure a net positive gain in terms of emission reduction and realise a pre-determined significant level of CO2 reductions taking into account the size of the project;
are additional, clearly respond to replacement and modernisation needs and do not supply a market-driven increase in energy demand;
offer the best value for money; and
do not contribute to or improve the financial viability of highly emission-intensive electricity generation or increase dependency on emission-intensive fossil fuels.
By way of derogation from Article 10(1) and without prejudice to the last sentence of paragraph 1 of this Article, in the event that an investment selected through the competitive bidding process is cancelled or the intended performance is not reached, the earmarked allowances may be used through a single additional round of the competitive bidding process at the earliest one year thereafter to finance other investments.
By 30 June 2019, any Member State intending to make use of optional transitional free allocation for the modernisation of the energy sector shall publish a detailed national framework setting out the competitive bidding process, including the planned number of rounds referred to in the first subparagraph, and the selection criteria, for public comment.
Where investments with a value of less than EUR 12,5 million are to be supported with free allocation and are not selected through the competitive bidding process referred to in this paragraph, the Member State shall select projects based on objective and transparent criteria. The results of this selection process shall be published for public comment. On this basis, the Member State concerned shall, by 30 June 2019, establish, publish and submit to the Commission a list of investments. Where more than one investment is carried out within the same installation, they shall be assessed as a whole to establish whether or not the value threshold of EUR 12,5 million is exceeded, unless those investments are, independently, technically or financially viable.
Any allowances not allocated under this Article by 2020 may be allocated over the period from 2021 to 2030 to investments selected through the competitive bidding process referred to in paragraph 2, unless the Member State concerned informs the Commission by 30 September 2019 of its intention not to allocate some or all of those allowances over the period from 2021 to 2030, and of the amount of allowances to be auctioned instead in 2020. Where such allowances are allocated over the period from 2021 to 2030, a corresponding amount of allowances shall be taken into account for the application of the 60 % limit set out in the first subparagraph of this paragraph.
Modernisation Fund
The investments supported shall be consistent with the aims of this Directive, as well as the objectives of the Union's 2030 climate and energy policy framework and the long-term objectives as expressed in the Paris Agreement. No support from the Modernisation Fund shall be provided to energy generation facilities that use solid fossil fuels, other than efficient and sustainable district heating in Member States with a GDP per capita at market prices below 30 % of the Union average in 2013, provided that an amount of allowances of at least an equivalent value is used for investments under Article 10c that do not involve solid fossil fuels.
The investment committee shall operate in a transparent manner. The composition of the investment committee and the curricula vitae and declarations of interests of its members shall be made available to the public and, where necessary, updated.
Where an investment in the modernisation of energy systems, which is proposed to be financed from the Modernisation Fund, does not fall into the areas listed in paragraph 2, the investment committee shall assess the technical and financial viability of that investment, including the emission reductions it achieves, and issue a recommendation on financing the investment from the Modernisation Fund. The investment committee shall ensure that any investment relating to district heating achieves a substantial improvement in energy efficiency and emission reductions. That recommendation may include suggestions regarding appropriate financing instruments. Up to 70 % of the relevant costs of an investment which does not fall into the areas listed in paragraph 2 may be supported with resources from the Modernisation Fund provided that the remaining costs are financed by private legal entities.
If the representative of the EIB does not endorse financing an investment, a recommendation shall only be adopted if a majority of two-thirds of all members vote in favour. The representative of the Member State in which the investment is to take place and the representative of the EIB shall not be entitled to cast a vote in this case. This subparagraph shall not apply to small-scale projects funded through loans provided by a national promotional bank or through grants contributing to the implementation of a national programme serving specific objectives in line with the objectives of the Modernisation Fund, provided that not more than 10 % of the Member States' share set out in Annex IIb is used under the programme.
The beneficiary Member States shall report annually to the Commission on investments financed by the Modernisation Fund. The report shall be made public and include:
information on the investments financed per beneficiary Member State;
an assessment of the added value, in terms of energy efficiency or modernisation of the energy system, achieved through the investment.
Recovery and Resilience Facility