Annexes to COM(2021)568 - Social Climate Fund

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dossier COM(2021)568 - Social Climate Fund.
document COM(2021)568 EN
date May 10, 2023
Agreements with the Member States on the use of the Fund – these will be the financial commitments for the use of the money by the Member States under the Fund.

From mid-2025, the Member States might start requesting payments from the Fund. Twice per year the Member States may request payments from the Fund. The payments will be made upon assessment of the completed milestones and targets.

2.2.2.Information concerning the risks identified and the internal control system(s) set up to mitigate them

The risk relates to the performance measurement (non-achievement of pre-defined targets/milestones) or serious irregularities.

The measures that will be put into place to mitigate these risks are the following:

– thorough evaluation process before the disbursement of funds for achievement of the milestones/targets by the beneficiary Member States;

– activation of suspension, recovery of funds, termination of agreements in case of non achievement of the milestones/targets by beneficiary Member States or in case of serious irregularities or breaches of obligations in the agreements with Member States.

The Fund will be implemented in direct management by the Commission in accordance with the Financial Regulation.

2.2.3.Estimation and justification of the cost-effectiveness of the controls (ratio of "control costs ÷ value of the related funds managed"), and assessment of the expected levels of risk of error (at payment & at closure) 

Financial allocation will be provided to Member States in the form of financing not linked to costs.

2.3.Measures to prevent fraud and irregularities 

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy.

The Regulation contains the necessary provisions to ensure that the implementation of the Fund complies with the protection of the financial interests of the Union.

Appropriate internal control processes will apply at levels of management and be designed to provide reasonable assurance of achieving the following objectives: effectiveness, efficiency and economy of operations; reliability of reporting; safeguarding of assets and information; adequate management of the risks relating to the legality and regularity of the underlying transactions, and prevention, detection, and correction of fraud, corruption, conflicts of interest, irregularities and double funding from the Fund and other Union programmes.

3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected 

New budget lines requested

In order of multiannual financial framework headings and budget lines.

Heading of multiannual financial frameworkBudget lineType of
expenditure
Contribution
NumberDiff./Non-diff.from EFTA countriesfrom candidate countriesfrom third countrieswithin the meaning of Article 21(2)(b) of the Financial Regulation
309 01 04 01 – Support expenditure for the Social Climate FundNon-diff.NONONONO
309 05 01- Social Climate Fund – Operational expenditureDiffNONONONO

3.2.Estimated financial impact of the proposal on appropriations 

3.2.1.Summary of estimated impact on operational appropriations 

◻    The proposal/initiative does not require the use of operational appropriations

⌧    The proposal/initiative requires the use of operational appropriations, as explained below:

Heading of multiannual financial
framework
3NATURAL RESOURCES AND ENVIRONMENT


EUR million (to three decimal places)

20252026202720282029203020312032TOTAL
Operational appropriations  
09 05 01Commitments-12.495,00010.695,00010.495,00010.145,0009.945,0009.745,0009.495,0009.145,00072.160,000
Payments-22.495,00010.695,00010.495,00010.145,0009.945,0009.745,0009.495,0009.145,00072.160,000
Appropriations of an administrative nature financed from the envelope of specific programmes
09 01 04 01-35,0005,0005,0005,0005,0005,0005,0005,00040,000
TOTAL appropriations for the envelope of the programmeCommitments= 1 + 3
2.500,00010.700,00010.500,00010.150,0009.950,0009.750,0009.500,0009.150,00072.200,000
Payments= 2 + 3
2.500,00010.700,00010.500,00010.150,0009.950,0009.750,0009.500,0009.150,00072.200,000


Heading of multiannual financial
framework
7‘Administrative expenditure’

This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative Financial Statement (Annex V to the internal rules), which is uploaded to DECIDE for interservice consultation purposes. 


EUR million (to three decimal places)

20222023202420252026202720282029203020312032TOTAL
Human resources1,8248,6648,6648,6648,6648,6648,6648,6648,6648,6648,66488,464
Other administrative expenditure--0,0590,016-------0,075
TOTAL appropriations under HEADING 7 of the multiannual financial framework(Total commitments = Total payments)1,8248,6648,7238,6808,6648,6648,6648,6648,6648,6648,66488,539


   EUR million (to three decimal places)

20222023202420252026202720282029203020312032TOTAL
TOTAL appropriations
across HEADINGS
of the multiannual financial framework 
Commitments1,8248,6648,7232.508,68010.708,66410.508,66410.158,6649.958,6649.758,6649.508,6649.158,66472.288,539
Payments1,8248,6648,7232.508,68010.708,66410.508,66410.158,6649.958,6649.758,6649.508,6649.158,66472.288,539


3.2.2.Summary of estimated impact on administrative appropriations 

◻    The proposal/initiative does not require the use of appropriations of an administrative nature

⌧    The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:

EUR million (to three decimal places)

20222023202420252026202720282029203020312032TOTAL

HEADING 7
of the multiannual financial framework
Human resources1,8248,6648,6648,6648,6648,6648,6648,6648,6648,6648,66488,464
Other administrative expenditure--0,0590,016-------0,075
Subtotal HEADING 7
of the multiannual financial framework
1,8248,6648,7238,6808,6648,6648,6648,6648,6648,6648,66488,539

Outside HEADING 7 67
of the multiannual financial framework

Human resources
Other expenditure
of an administrative nature
---5,0005,0005,0005,0005,0005,0005,0005,00040,000
Subtotal
outside HEADING 7
of the multiannual financial framework
---5,0005,0005,0005,0005,0005,0005,0005,00040,000

TOTAL1,8248,6648,72313,68013,66413,66413,66413,66413,66413,66413,664128,539

The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

3.2.2.1.Estimated requirements of human resources

◻    The proposal/initiative does not require the use of human resources.

⌧    The proposal/initiative requires the use of human resources, as explained below:

Estimate to be expressed in full time equivalent units

20222023202420252026202720282029203020312032
Establishment plan posts (officials and temporary staff)
20 01 02 01 (Headquarters and Commission’s Representation Offices)1257575757575757575757
20 01 02 03 (Delegations)
01 01 01 01  (Indirect research)
01 01 01 11 (Direct research)
Other budget lines (specify)
External staff (in Full Time Equivalent unit: FTE)[1]
20 02 01 (AC, END, INT from the ‘global envelope’)
20 02 03 (AC, AL, END, INT and JPD in the delegations)
XX 01 xx yy zz- at Headquarters
- in Delegations
01 01 01 02 (AC, END, INT - Indirect research)
01 01 01 12 (AC, END, INT - Direct research)
Other budget lines (specify)
TOTAL1257575757575757575757


The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

Description of tasks to be carried out:

Officials and temporary staff• Design, legal drafting, consultations, coordination with Commission services

• Assessment of draft and final National Climate Social Action Plans, in synergy with other processes (2023-2024);

• The preparation and management of grant agreements and of the related financial operations;

• Oversight and monitoring of the implementation of the Fund (2025 onwards)

• Budgetary and monitoring procedures with DG BUDG (2025 onwards)
External staff

3.2.3.Compatibility with the current multiannual financial framework 

The proposal/initiative:

◻    can be fully financed through redeployment within the relevant heading of the multiannual financial framework (MFF).

◻    requires use of the unallocated margin under the relevant heading of the MFF and/or use of the special instruments as defined in the MFF Regulation.

⌧    requires a revision of the MFF.

The Fund will be financed under Heading 3 ‘Natural Resources and Environment’ of the multiannual financial framework, and in the annual budget nomenclature as part of the ‘Environmental and Climate Action policy’ cluster 9 .

The size of the Social Climate Fund should in principle correspond to 25% of the expected revenues from the inclusion of road transport and buildings into the scope of application of Directive 2003/87/EC.

An equivalent amount to the above mentioned share will be available under the multiannual financial framework to support the Fund. To this end, the Commission will shortly propose a targeted revision of the multiannual financial framework to increase the ceiling in commitment appropriations of Heading 3 ‘Natural Resources and Environment’ by an amount of EUR 2 176 million in 2025, EUR 9 132 million in 2026 and EUR 8 786 million in 2027, in 2018 prices.In light of the fact that the proposed increases in the ceiling in commitments will result in an equivalent increase of payment needs, the Commission thus proposes to revise the payment ceiling for the years 2025, 2026 and 2027 by the same amounts.

3.2.4.Third-party contributions 

The proposal/initiative:

◻    does not provide for co-financing by third parties

⌧    provides for the co-financing by third parties estimated below:

Appropriations in EUR million (to three decimal places)

20222023202420252026202720282029203020312032
Specify the co-financing body p.m.p.m.p.m.p.m.p.m.p.m.p.m.p.m.p.m.p.m.p.m.
TOTAL appropriations co-financedp.m.p.m.p.m.p.m.p.m.p.m.p.m.p.m.p.m.p.m.p.m.


3.3.Estimated impact on revenue 

⌧    The proposal/initiative has no financial impact on revenue.

◻    The proposal/initiative has the following financial impact:

◻    on own resources

◻    on other revenue

please indicate, if the revenue is assigned to expenditure lines ◻    

EUR million (to three decimal places)

Budget revenue line:Appropriations available for the current financial yearImpact of the proposal/initiative 68
20222023202420252026202720282029203020312032
Article ………….

For assigned revenue, specify the budget expenditure line(s) affected.

[…]

Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information).[…]

[…]


(1) COM(2019)640 final.
(2) COM (2020) 562 final.
(3) Paris Agreement (OJ L 282, 19.10.2016, p. 4).
(4) European Council Conclusions 10-11 December 2020 EUCO 22/20 CO EUR 17 CONCL 8.
(5) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
(6) Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union (OJ L 275, 25.10.2003, p.32).
(7) Regulation (EU) 2021/1057 of the European Parliament and of the Council of 24 June 2021 establishing the European Social Fund Plus (ESF+) and repealing Regulation (EU) No 1296/2013 (OJ L 231, 30.6.2021, p. 21).
(8) Regulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 2021 establishing the Just Transition Fund (OJ L 231, 30.6.2021, p. 1).
(9) Amended proposal for a Council Regulation (EU) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027, COM/2021/XXX final.
(10) Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1).
(11) Council Regulation (EU) 2020/2094 of 14 December 2020 establishing a European Union Recovery Instrument to support the recovery in the aftermath of the COVID-19 crisis (OJ L 433I , 22.12.2020, p. 23).
(12) Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17).
(13) Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1).
(14) Endorsed by the European Council on 24 and 25 June 2021.
(15) Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings (OJ L 153, 18.6.2010, p. 13).
(16) Commission Recommendation (EU) 2020/1563 of 14 October 2020 on energy poverty C/2020/9600 (OJ L 357, 27.10.2020, p. 35).
(17) COM(2021) 400.
(18) This was open for 12 weeks from 13 November 2020 to 5 February 2021. The outcome can be found on the following website: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12660-Updating-the-EU-Emissions-Trading-System/public-consultation .
(19) The inception impact assessment was open for feedback from 29 October 2020 to 26 November 2020 and received about 250 contributions. The outcome can be found on the following website: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12660-Updating-the-EU-Emissions-Trading-System .
(20) SWD(2020)176, in particular section 6.5.2.
(21) [Impact Assessment accompanying ….]
(22) Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank ‘A Clean Planet for all A European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy’, COM/2018/773 final.
(23) Article 21 of Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 (OJ L 433I, 22.12.2020, p. 11).
(24) Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).
(25) Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).
(26) OJ C , , p. 
(27) OJ C , , p. .
(28) Paris Agreement (OJ L 282, 19.10.2016, p. 4).
(29) COM(2019)640 final.
(30) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
(31) Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union (OJ L 275, 25.10.2003, p. 32).
(32) Data from 2018. Eurostat, SILC [ilc_mdes01]).
(33) Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy (OJ L 231, 30.6.2021, p. 159).
(34) Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).
(35) Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1).
(36) [Add ref]
(37) Endorsed by the European Council on 24 and 25 June 2021.
(38) Regulation (EU) 2021/1057 of the European Parliament and of the Council of 24 June 2021 establishing the European Social Fund Plus (ESF+) and repealing Regulation (EU) No 1296/2013 (OJ L 231, 30.6.2021, p. 21).
(39) Regulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 2021 establishing the Just Transition Fund (OJ L 231, 30.6.2021, p. 1).
(40) Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings (OJ L 153, 18.6.2010, p. 13).
(41) Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom (OJ L 424, 15.12.2020, p. 1).
(42) Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).
(43) Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).
(44) Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39).
(45) Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).
(46) Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1).
(47) Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities’ financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).
(48) Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1).
(49) Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union’s financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).
(50) [Directive (EU) [yyyy/nnn] of the of the European Parliament and of the Council (OJ C […], […], p. […]).] [Proposal for recast of Directive 2012/27/EU on energy efficiency]
(51) Regulation (EU) 2019/1700 of the European Parliament and of the Council of 10 October 2019 establishing a common framework for European statistics relating to persons and households, based on data at individual level collected from samples, amending Regulations (EC) No 808/2004, (EC) No 452/2008 and (EC) No 1338/2008 of the European Parliament and of the Council, and repealing Regulation (EC) No 1177/2003 of the European Parliament and of the Council and Council Regulation (EC) No 577/980 (OJ L 261I , 14.10.2019, p. 1).
(52) 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).
(53) Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty Text with EEA relevance (OJ L 187, 26.6.2014, p. 1).
(54) OJ L 357, 27.10.2020, p. 35.
(55) Regulation (EU) 2021/1058 of the European Parliament and of the Council of 24 June 2021 on the European Regional Development Fund and on the Cohesion Fund (OJ L 231, 30.6.2021, p. 60).
(56) Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17).
(57) Regulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 2021 establishing the Just Transition Fund (OJ L 231, 30.6.2021, p. 1).
(58) Regulation (EU) 2021/240 of the European Parliament and of the Council of 10 February 2021 establishing a Technical Support Instrument (OJ L 57, 18.2.2021, p. 1).
(59) Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget (OJ L 433I, 22.12.2020, p. 1).
(60) Directive 2014/94/EU of the European Parliament and of the Council of 22 October 2014 on the deployment of alternative fuels infrastructure (OJ L 307, 28.10.2014, p. 1).
(61) Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (OJ L 141, 5.6.2015, p. 73).
(62) Directive (EU) 2019/1024 of the European Parliament and of the Council of 20 June 2019 on open data and the re-use of public sector information (OJ L 172, 26.6.2019, p. 56).
(63) Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26-42).
(64) [Directive (EU) yyyy/nnn of the European Parliament and of the Council…. (OJ …..).] [Directive amending Directive 2003/87/EC]
(65) As referred to in Article 58(2)(a) or (b) of the Financial Regulation.
(66) Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx  
(67) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.
(68) As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 20 % for collection costs.