Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe, amending and repealing Decision No 466/2014/EU of the European Parliament and of the Council and repealing Regulation (EU) 2017/1601 of the European Parliament and of the Council and Council Regulation (EC, Euratom) No 480/2009 (Text with EEA relevance)

TITLE I

GENERAL PROVISIONS

Article 1

Subject matter

This Regulation establishes the Neighbourhood, Development and International Cooperation Instrument – Global Europe (the ‘Instrument’), including the European Fund for Sustainable Development Plus (the ‘EFSD+’) and the External Action Guarantee, for the period of the 2021-2027 MFF.

It lays down the objectives of the Instrument, the budget for the period from 2021 to 2027, the forms of Union funding and the rules for providing such funding.

Article 2

Definitions

For the purposes of this Regulation, the following definitions apply:

(1) ‘country indicative programme’ means an indicative programme covering one country;

(2) ‘multi-country indicative programme’ means an indicative programme covering more than one country;

(3) ‘regional indicative programme’ means a multi-country indicative programme covering more than one third country within the same geographic area as established in Article 4(2);

(4) ‘trans-regional indicative programme’ means a multi-country indicative programme covering more than one third country from different geographic areas as established in Article 4(2);

(5) ‘cross-border cooperation’ means cooperation between one or more Member States, and one or more third countries and territories along the external adjacent land and maritime borders of the Union and shall be understood to cover also transnational cooperation over larger transnational territories or around sea basins and interregional cooperation as laid down in a Regulation of the European Parliament and of the Council on specific provisions for the European territorial cooperation goal (Interreg) supported by the European Regional Development Fund and external financing instruments (the ‘Interreg Regulation’);

(6) ‘legal entity’ means a natural person, or a legal person created and recognised as such under Union, national or international law, which has legal personality and the capacity to act in its own name, exercise rights and be subject to obligations, or an entity which does not have legal personality as referred to in point (c) of Article 197(2) of the Financial Regulation;

(7) ‘civil society organisation’ means a wide range of actors with multiple roles and mandates, which may vary over time and across institutions and countries, and includes all non-State, not-for-profit independent and non-violent structures, through which people organise the pursuit of shared objectives and ideals, including political, cultural, religious, environmental, social or economic, and which operate at local, national, regional or international levels, and which comprise urban and rural, formal and informal organisations;

(8) ‘local authority’ encompasses public institutions with legal personality, which are components of the State structure, below the level of central government, such as villages, municipalities, districts, counties, provinces or regions, which are accountable to citizens and usually composed of a deliberative or policy-making body, such as a council or assembly, and an executive body, such as a mayor or other executive officer, which are directly or indirectly elected or selected at local level;

(9) ‘investment window’ means a targeted area for support by the External Action Guarantee under the EFSD+ to portfolios of investments in specific regions, countries or sectors;

(10) ‘additionality’ means the principle based on Article 209(2) of the Financial Regulation, according to which, in the context of this Regulation and the IPA III Regulation, the External Action Guarantee support under the EFSD+ contributes to sustainable development by operations which could not have been carried out without that Guarantee, or which achieve positive results above and beyond what could have been achieved without it. The principle of additionality also means that the operations supported by the External Action Guarantee crowd in private sector funding and address market failures or sub-optimal investment situations as well as improve the quality, sustainability, impact or scale of an investment. The principle also ensures that External Action Guarantee operations do not replace the support of a Member State, private funding or another Union or international financial intervention, and avoid crowding out other public or private investments unless duly justified in accordance with the objectives and principles of the Instrument. Projects supported by the External Action Guarantee typically have a higher risk profile than the portfolio of investments supported by the eligible counterparts under their normal investment policies without the External Action Guarantee;

(11) ‘operation with sovereign counterparts and non-commercial sub-sovereign counterparts’ means any operation where the counterpart is either directly a State or a public entity fully backed by an explicit guarantee of the State because it does not have the legal capacity or the financial autonomy or ability to benefit from necessary direct financing;

(12) ‘operation with commercial sub-sovereign counterparts’ means any operation where the counterpart is a public entity which is not backed by an explicit guarantee of a State and that is financially able to borrow at its own risk and has the legal capacity to do so;

(13) ‘contributor’ means an international finance institution, a Member State or a public institution of a Member State, a public agency or other public or private entity contributing to the common provisioning fund;

(14) ‘partner country’ means a country or territory that may benefit from Union support under the Instrument pursuant to Article 4.

For the purposes of this Regulation, where reference is made to human rights, it shall be understood to include fundamental freedoms.

Article 3

Objectives of the Instrument

The general objectives of the Instrument are to:

(a) uphold and promote the Union’s values, principles and fundamental interests worldwide, in order to pursue the objectives and principles of the Union’s external action, as laid down in Article 3(5) and Articles 8 and 21 TEU, thus contributing to the reduction and, in the long term, the eradication of poverty, to consolidating, supporting and promoting democracy, the rule of law and respect for human rights, sustainable development and the fight against climate change and addressing irregular migration and forced displacement, including their root causes;

(b) contribute to the promotion of multilateralism, the achievement of the international commitments and objectives that the Union has agreed to, in particular the SDGs, the 2030 Agenda and the Paris Agreement;

(c) promote stronger partnerships with third countries, including with the European Neighbourhood Policy countries based on mutual interests and ownership with a view to fostering stabilisation, good governance and building resilience.

The specific objectives of the Instrument are:

(a) to support and foster dialogue and cooperation with third countries and regions in the Neighbourhood, in Sub-Saharan Africa, in Asia and the Pacific, and in the Americas and the Caribbean;

(b) to develop special strengthened partnerships and enhanced political cooperation with the European Neighbourhood Policy countries, founded on cooperation, peace and stability and a shared commitment to the universal values of democracy, the rule of law and respect for human rights, and aiming towards deep and sustainable democracy and progressive socio-economic integration as well as people-to-people contacts;

(c) at global level: (i) to protect, promote and advance democracy, the rule of law, including accountability mechanisms, and human rights, including gender equality and the protection of human rights defenders, including in the most difficult circumstances and urgent situations; (ii) to support civil society organisations; (iii) to further stability and peace and prevent conflict, thereby contributing to the protection of civilians; and (iv) to address other global challenges such as climate change, the protection of biodiversity and the environment, as well as migration and mobility;

(d) to respond rapidly to: (i) situations of crisis, instability and conflict, including those which may result from migratory flows and forced displacement, and hybrid threats; (ii) resilience challenges, including natural and man-made disasters, and linking of humanitarian aid and development action; and (iii) Union foreign policy needs and priorities.

Article 4

Scope and structure

Union funding under the Instrument shall be implemented through:

(a) geographic programmes;

(b) thematic programmes;

(c) rapid response actions.

The geographic programmes shall encompass country and multi-country cooperation in the following areas:

(a) Neighbourhood;

(b) Sub-Saharan Africa;

(c) Asia and the Pacific;

(d) Americas and the Caribbean.

Geographic programmes may cover all third countries, except for candidates and potential candidates as defined in the IPA III Regulation and overseas countries and territories.

Geographic programmes of a continental or trans-regional scope may also be established, in particular a pan-African programme covering African countries under points (a) and (b) of the first subparagraph and a programme covering African, Caribbean and Pacific countries under points (b), (c) and (d) of the first subparagraph.

Geographic programmes in the Neighbourhood area may cover any country or territory listed in Annex I.

In order to attain the objectives of the Instrument, geographic programmes shall be based on the areas of cooperation set out in Annex II.

The thematic programmes shall encompass actions linked to the pursuit of the SDGs at global level, in the following areas:

(a) Human Rights and Democracy;

(b) Civil Society Organisations;

(c) Peace, Stability and Conflict Prevention;

(d) Global Challenges.

Thematic programmes may cover all third countries as well as overseas countries and territories.

In order to attain the objectives of the Instrument, thematic programmes shall be based on the areas of intervention set out in Annex III.

The rapid response actions shall enable early action to:

(a) contribute to peace, stability and conflict prevention in situations of urgency, emerging crisis, crisis and post-crisis, including those which may result from migratory flows and forced displacement;

(b) contribute to strengthening the resilience of states, societies, communities and individuals and to linking humanitarian aid and development action and, where relevant, peacebuilding;

(c) address Union foreign policy needs and priorities.

Rapid response actions may cover all third countries as well as overseas countries and territories.

In order to attain the objectives of the Instrument, rapid response actions shall be based on the areas of intervention set out in Annex IV.

Actions under the Instrument shall be implemented primarily through geographic programmes.

Actions implemented through thematic programmes shall be complementary to actions funded under geographic programmes and shall support global and trans-regional initiatives aimed towards achieving internationally agreed goals, in particular the SDGs and the Paris Agreement, as well as protecting global public goods or addressing global challenges. Actions implemented through thematic programmes may also be undertaken where:

(a) there is no geographic programme;

(b) the geographic programme has been suspended;

(c) there is no agreement on the action with the partner country concerned; or

(d) the action cannot be adequately addressed by geographic programmes.

Rapid response actions shall be complementary to geographic and thematic programmes. Rapid response actions shall be designed and implemented to enable, where relevant, their continuity under geographic or thematic programmes.

The Commission is empowered to adopt a delegated act in accordance with Article 44 by 31 December 2021, to supplement this Regulation with provisions setting out:

(a) specific objectives and priority areas of cooperation drawn from the areas of cooperation for the geographic programmes in Annex II, including a prioritisation, for the following sub-regions: Neighbourhood South, Neighbourhood East, West Africa, East and Central Africa, Southern Africa and Indian Ocean, Middle East, Central Asia, South Asia, North and South East Asia, the Pacific, the Americas and the Caribbean;

(b) indicative thematic targets for the geographic pillar; and

(c) indicative financial allocations for West Africa, East and Central Africa, Southern Africa and Indian Ocean sub-regions.

The delegated act referred to in the first subparagraph of this paragraph shall be reviewed at the mid-term evaluation referred to in Article 42(2).

Article 5

Consistency, coherence, synergies and complementarity

For that purpose, the Union shall take into account the impact of all internal and external policies on sustainable development and shall seek to promote increased synergies and complementarities in particular with trade policy, economic cooperation and other sectorial cooperation.

Article 6

Budget

The financial envelope referred to in paragraph 1 shall be composed of:

(a) EUR 60 388 000 000 for geographic programmes: — Neighbourhood: at least EUR 19 323 000 000 , — Sub-Saharan Africa: at least EUR 29 181 000 000 , — Asia and the Pacific: EUR 8 489 000 000 , — Americas and the Caribbean: EUR 3 395 000 000 ;

(b) EUR 6 358 000 000 for thematic programmes: — Human Rights and Democracy: EUR 1 362 000 000 , — Civil Society Organisations: EUR 1 362 000 000 , — Peace, Stability and Conflict Prevention: EUR 908 000 000 , — Global Challenges: EUR 2 726 000 000 ;

(c) EUR 3 182 000 000 for rapid response actions.

Article 7

Policy framework

The association agreements, partnership and cooperation agreements, multilateral agreements to which the Union is a party, and other agreements that establish a legally binding relationship between the Union and partner countries as well as European Council conclusions, Council conclusions, summit declarations or conclusions of meetings with partner countries at the level of heads of state or government or ministers, European Parliament resolutions, communications of the Commission and the High Representative of the Union for Foreign Affairs and Security Policy (the ‘High Representative’) shall constitute the overall policy framework for the implementation of the Instrument.

Article 8

General principles

The Union shall promote a multilateral and rules-based and values-based approach to global goods and challenges and shall cooperate with Member States, partner countries, international organisations and other donors in that respect.

The Union shall promote effective multilateralism in fostering cooperation with international organisations and other donors.

The Union shall take into account and take up in the regular political dialogue with partner countries their track record in implementing obligations and commitments, including the 2030 Agenda, international human rights conventions, and other conventions, including those on nuclear safety standards, international agreements, in particular the Paris Agreement, and contractual relations with the Union, in particular association agreements, partnership and cooperation agreements and trade agreements.

In line with the principle of inclusive partnership and transparency, where appropriate, the Commission shall ensure that relevant stakeholders of partner countries, including civil society organisations and local authorities, are duly consulted and have timely access to relevant information allowing them to be adequately involved and play a meaningful role in the design, implementation and associated monitoring processes of programmes. Where appropriate, the Commission shall also ensure that an enhanced dialogue is pursued with the private sector.

In line with the principle of ownership, the Commission, where appropriate, shall favour the use of partner countries’ institutions and systems for the implementation of programmes.

The Union and the Member States shall coordinate their respective support programmes with the aim of increasing effectiveness and efficiency.

The Union shall foster inclusiveness in the implementation of the Instrument and collaboration with Member States, seeking to maximise added value and taking into account experience and capacities, thus reinforcing shared interests, values and common goals. The Union shall encourage the exchange of best practices and knowledge sharing among Member States’ bodies and experts.

Such actions shall be based on regular and robust conflict analysis to ensure conflict sensitivity and to implement a security sector reform approach that contributes to democratic governance, accountability and human security, including benefits for the local population. Those measures shall be embedded, where relevant, in the context of longer term assistance aimed at reforming the security sector.

Article 9

Capacity building of military actors in support of development and security for development

Assistance pursuant to this Article shall be provided only:

(a) where requirements cannot be met by recourse to non-military actors to adequately reach Union objectives under the Instrument and there is a threat to the existence of functioning State institutions or to the protection of human rights and fundamental freedoms and State institutions cannot cope with that threat; and

(b) where a consensus exists between the partner country concerned and the Union that military actors are key for preserving, establishing or re-establishing the conditions essential for sustainable development, including in crises and fragile or destabilised contexts and situations.

Union assistance pursuant to this Article shall not be used to finance capacity building of military actors for purposes other than the delivery of development activities and security for development activities. In particular, it shall not be used to finance any of the following:

(a) recurrent military expenditure;

(b) the procurement of arms and ammunition, or any other equipment designed to deliver lethal force;

(c) training which is designed to contribute specifically to the fighting capacity of the armed forces.

TITLE II

IMPLEMENTATION OF THE INSTRUMENT

CHAPTER I

Programming

Article 10

Scope of the geographic programmes

In order to attain the objectives of the Instrument geographic programmes shall be drawn up from the following areas of cooperation:

(a) good governance, democracy, the rule of law and human rights, including gender equality;

(b) eradicating poverty, fighting against inequalities and discrimination, and promoting human development;

(c) migration, forced displacement and mobility;

(d) environment and climate change;