Commission Delegated Regulation (EU) 2023/2485 of 27 June 2023 amending Delegated Regulation (EU) 2021/2139 establishing additional technical screening criteria for determining the conditions under which certain economic activities qualify as contributing substantially to climate change mitigation or climate change adaptation and for determining whether those activities cause no significant harm to any of the other environmental objectives

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to 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 ¹, and in particular Articles 10(3) and 11(3) thereof,

Whereas:

• (1) Regulation (EU) 2020/852 establishes the general framework for determining whether an economic activity qualifies as environmentally sustainable for the purposes of establishing the degree to which an investment is environmentally sustainable. That Regulation applies to measures adopted by the Union or by Member States that set out requirements for financial market participants or issuers in respect of financial products or corporate bonds that are made available as environmentally sustainable, to financial market participants that make available financial products, and to undertakings that are subject to the obligation to publish a non-financial statement pursuant to Article 19a of Directive 2013/34/EU of the European Parliament and of the Council ² or a consolidated non-financial statement pursuant to Article 29a of that Directive. Economic operators or public authorities that are not covered by Regulation (EU) 2020/852 may also apply that Regulation on a voluntary basis.

• (2) Commission Delegated Regulation (EU) 2021/2139 ³ establishes the technical screening criteria for determining the conditions under which a specific economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation. The technical screening criteria cover economic activities from nine economic sectors because of their significant share in overall greenhouse gas emissions, and their proven potential for avoiding the production of greenhouse gas emissions, reducing such emissions, or removing such emissions. In addition, those economic activities have a proven potential to enable such avoidance, reduction and removal for other economic sectors and activities, or to ensure long-term storage of such emissions for other sectors and activities.

• (3) Delegated Regulation (EU) 2021/2139 does not cover all economic activities that may contribute substantially to climate change mitigation or climate change adaptation. To further facilitate environmentally sustainable investments, it is necessary to lay down additional technical screening criteria for those economic activities that may contribute substantially to climate change mitigation or climate change adaptation without significantly harming the other environmental objectives, but which are currently not covered by Delegated Regulation (EU) 2021/2139. The additional economic activities that contribute substantially to climate change mitigation cover largely the transport sector and its value chain. The additional economic activities that contribute substantially to climate change adaptation cover largely activities enabling adaptation to the unavoidable effects of climate change, including desalination and services for preventing and responding to climate-related disasters and emergencies.

• (4) The technical screening criteria for those additional economic activities should, where possible, follow the classification of economic activities laid down in the NACE Revision 2 classification system of economic activities established by Regulation (EC) No 1893/2006 of the European Parliament and of the Council ⁴. To facilitate the identification by undertakings and financial market participants of economic activities for which technical screening criteria should be established, the specific description of an economic activity should also contain the references to NACE codes that can be associated with that activity. Those references should be understood as indicative and should not prevail over the specific definition of the economic activity provided in its description.

• (5) The technical screening criteria for economic activities that contribute substantially to climate change mitigation or climate change adaptation should ensure that the economic activity concerned has a positive impact on climate change mitigation or climate change adaptation or reduces negative impacts on such mitigation or adaptation. Those technical screening criteria should therefore refer to thresholds or performance levels that the economic activity should achieve to qualify as contributing substantially to climate change mitigation or climate change adaptation. The technical screening criteria for ‘do no significant harm’ (DNSH) should ensure that the economic activity has no significant negative environmental impacts, including climate-related impacts. Consequently, those technical screening criteria should specify the minimum requirements that the economic activity should meet to qualify as environmentally sustainable.

• (6) The technical screening criteria for determining whether an economic activity contributes substantially to climate change mitigation or climate change adaptation laid down in Article 9 of Regulation (EU) 2020/852 and does no significant harm to any of the other environmental objectives should, where relevant, build on existing Union law, best practices, standards and methodologies, and well-established standards, practices and methodologies developed by internationally reputed public entities. Where those standards, practices and methodologies are not available for a specific policy area, the technical screening criteria should build on well-established standards developed by internationally reputed private bodies.

• (7) Pursuant to Article 19(1), point (h), of Regulation (EU) 2020/852, the technical screening criteria are to take into account the nature and the scale of the economic activity and sector that they refer to, and whether the economic activity is an enabling activity as referred to in Article 16 of that Regulation or a transitional activity as referred to in Article 10(2) of that Regulation. For the technical screening criteria to meet the requirement of Article 19 of Regulation (EU) 2020/852 in an effective and balanced way, they should be set as a quantitative threshold or minimum requirement, a relative improvement, a set of qualitative performance requirements, process or practice-based requirements, or a precise description of the nature of the economic activity itself where that activity by its nature can contribute substantially to climate change mitigation or climate change adaptation. Technical screening criteria for enabling activities should further ensure that the activities directly enabling other activities to improve their environmental performance, have a substantial positive environmental impact and do not lead to a lock-in of environmentally harmful assets. To ensure that transitional activities remain on a credible pathway consistent with a climate-neutral economy, the technical screening criteria for transitional activities should be reviewed every three years as set out Article 19(5) of Regulation (EU) 2020/852, taking due account of changes in Union law.

• (8) The manufacturing of electrical equipment has an important role in contributing substantially to climate change mitigation by, in particular, furthering the uptake of renewable sources of energy in the Union electric grids and developing recharging installations for zero emissions vehicles and smart energy usage tools for households. To further unlock the potential of electrification in the Union and to further accelerate investments into the manufacturing of electrical equipment, it is necessary to lay down technical screening criteria for the manufacturing of electrical equipment.

• (9) The manufacturing of low carbon vehicles, personal mobility devices and rail rolling stock and infrastructure depends on components that play a key role in reducing greenhouse gas (GHG) emissions, or, in the case of rail, that are essential to the environmental performance, operation and functioning over the lifetime of Taxonomy-aligned trains and rail infrastructure, but are often manufactured by undertakings that do not assemble those vehicles or other means of transportation. To ensure that the role of those undertakings and of the components they manufacture in climate change mitigation is duly recognised, the manufacturing of the components that are essential for delivering and improving the environmental performance of the low carbon vehicle or other means of transportation should be included as a distinct economic activity in Delegated Regulation (EU) 2021/2139. Technical screening criteria for components which are decisive for environmental performance should be included. For vehicles, that includes, in particular, controllers, transformers, electric motors, charge ports and chargers, DC/DC converters, power inverters, alternators, controller units, regenerative braking systems, brakes with drag reduction technologies, thermal management systems, transmission system, hydrogen storing and fuelling systems, electronics when necessary for the operations of the powertrains, drivetrains, ‘best-in-class’ suspension systems leading to energy efficiency improvements, any auxiliaries when these are necessary for low-carbon vehicles and when these are substantially more energy efficient than alternatives, active aero features on low-carbon vehicles reducing air drag, and trailers that incorporate energy savings technologies such as a combination of regenerative braking or aerodynamic improvements. For rail, that includes, in particular, rail constituents as set out in Annex I to Directive (EU) 2016/797 of the European Parliament and of the Council ⁵.

• (10) Tyres represent 20 % of a vehicle energy consumption and as such, tyre manufacturing has the possibility to reduce greenhouse gas emissions targeted by the entire transport sector, relying on innovation. Tyres can also contribute to a more circular economy. Accordingly, while tyre manufacturing is not included in the scope of the activity for manufacturing of components that are essential for delivering and improving the environmental performance of low carbon vehicles, it will be necessary to further assess the manufacturing of tyres in order to establish specific technical screening criteria for that activity, taking due account of legal requirements under the most recent proposals of Union legislation and best practices, particularly regarding microplastic release, air pollution, noise, direct greenhouse gas emissions, end of life. In the meantime, tyre manufacturing continues to be an eligible activity under Section 3.6 of Annex I to Delegated Regulation (EU) 2021/2139 on other low carbon technologies. In particular for road vehicles of categories M and N, tyres should comply with external rolling noise requirements in the highest populated class and with Rolling Resistance Coefficient (influencing the vehicle energy efficiency) in the highest two populated classes as set out in Regulation (EU) 2020/740 of the European Parliament and of the Council ⁶ and as can be verified from the European Product Registry for Energy Labelling (EPREL). Furthermore, tyres should fulfil the Euro 7 proposal for tyre abrasion requirements.

• (11) In its Communication of 9 December 2020, ‘Sustainable and Smart Mobility Strategy – putting European transport on track for the future’ ⁷, the Commission pointed out that all modes of transport are indispensable for the transport system, and that aviation plays a crucial role in fostering cohesion, connectivity, and access to the internal market for all regions. Aviation has an important potential to reduce its greenhouse gas emissions, to contribute to the decarbonisation of transport, and thus has the potential to contribute substantially to climate change mitigation. It is therefore necessary to lay down technical screening criteria for the manufacturing of aircraft, leasing, passenger and freight air transport and air transport ground handling operations. Zero-emission commercial air transport operated with zero direct CO2 emissions or entirely on sustainable aviation fuels is not yet technologically available. Until such zero-emission commercial air transport is technologically available, air transport should be considered as a transitional activity, with the technical screening criteria based on best available technologies for airframe and engine fuel efficiency, and based on the potential to reduce substantially greenhouse gas emissions over the life cycle of aircraft through the progressive uptake of sustainable aviation fuels. To facilitate financing of more efficient and environmentally friendly best-in-class aircrafts, while avoiding lock-in effects of more carbon intensive assets and not hampering the development of zero-emission commercial air transport, the replacement ratio, that captures the proportion of aircraft permanently withdrawn from use to aircraft delivered at the global level, should only apply to the revenues generated by activities that comply with the technical screening criteria. The Commission, with support of the European Union Aviation Safety Agency established by Regulation (EU) 2018/1139 of the European Parliament and of the Council ⁸, may publish the replacement ratio to support the economic operators in their disclosures. In line with the transitional nature of the activities and to take account of the market evolution of aircraft technologies, the technical screening criteria for aircraft manufacturing should be applicable until 2032, and by that date those technical screening criteria should be reviewed to ensure compliance with Article 10(2) of Regulation (EU) 2020/852 in line with technological developments. Furthermore, the level of the use or blending of sustainable aviation fuels represented in the technical screening criteria should be reviewed every three years to take account of the emerging sustainable aviation fuels technologies and the current and expected future availability of sustainable aviation fuels in the market. However, in the area of climate change adaptation, certain disaster risk management related activities can only be supported by specifically designed and equipped aircrafts. It might therefore be necessary to establish separate technical screening criteria in a subsequent step for the manufacture of those aircraft.

• (12) Delegated Regulation (EU) 2021/2139 lays down technical screening criteria for key waterborne activities. The technical screening criteria applicable after 2025 for inland waterway vessels reflect a gradual reduction of emissions towards 2050, based on the assessment of the greenhouse gas intensity of the energy used by inland waterway transport vessels, on a well-to-wake emissions basis. To ensure usability of the applicable technical screening criteria for maritime freight and passenger transport, and to align those technical screening criteria with recently adopted international and Union reference values, the technical screening criteria should be updated. Those reference values include the Phase 3 of the International Maritime Organisation Energy Efficiency Design Index ⁹ applicable from 1 January 2025, the Energy Efficiency Index of Existing Ships ¹⁰ that entered into force on 1 January 2023, and greenhouse gas intensity limits for the energy used onboard as established by a Regulation (EU) 2023/1805 ¹¹ of the European Parliament and of the Council on the use of renewable and low-carbon fuels in maritime transport and amending Directive 2009/16/EC, applicable from 1 January 2025. To ensure a level playing field with rail transport, the technical screening criteria for inland waterway transport infrastructure should be revised and should include the inland waterway transport infrastructure modernisation as that infrastructure is essential to ensure the navigation of zero emissions vessels on waterways. To ensure a level playing field with rail, road, and water transport infrastructures, the technical screening criteria for low carbon airport infrastructure should be revised to include transhipment between modes of transport.

• (13) The Commission Communication of 24 February 2021 setting out the EU Adaptation Strategy ¹² points out that the frequency and severity of climate and weather extremes is increasing which in turn has caused a surge in the number of, and damages from, climate change related disasters over the last two decades.

• (14) Emergency services save lives, protect property and the environment, assist communities impacted by disasters, and aid recovery during emergencies. The increased frequency of natural disasters caused by climate change thus render emergency services even more important. Emergency services are however not necessarily equipped to deal with the scale, nature, and frequency of emergencies in the changed climatic conditions. Emergency service activities therefore need to include adaptation solutions to adapt themselves to the impacts of climate change and, once adapted, provide adaptation solutions to improve the overall resilience of an area and society. To further accelerate investments into those emergency services that boost overall resilience, it is necessary to lay down technical screening criteria for such economic activities.

• (15) Global warming is projected to lead to a higher intensity of precipitation and longer dry periods in Europe ¹³. Heavy rainfalls are periodically leading to floods across the Union. To incentivise further investments in adaptation solutions against floods, it is necessary to lay down technical screening criteria for preventing the risk of floods and protecting communities from their consequences.

• (16) The effects of climate change, including increased evapotranspiration and more frequent droughts, can amplify the scarcity of water, which can jeopardise the water supply, which in its turn can lead to overexploitation of groundwater and surface water resources and increased competition for those resources. In line with the mitigation measures in accordance with the water hierarchy, consideration of feasible water efficiency measures and subsequently feasible water reuse measures are to precede measures on water desalination. At the same time, it is necessary to incentivise investments in desalination of sea or brackish water that can reduce the overexploitation of existing water resources and can also provide a stabilising buffer for the shortage of freshwater supply. It is therefore necessary to lay down technical screening criteria for desalination of sea or brackish water.

• (17) Consultancy and software enabling climate risk management have the potential to provide adaptation solutions that support businesses in their forecasting, projection, managing and monitoring of current or expected future climate risks. It is therefore necessary to set out, for those activities, the technical screening criteria to determine whether an economic activity qualifies as contributing substantially to climate change adaptation by providing adaptation solutions in accordance with Article 11(1), point (b), of Regulation (EU) 2020/852.

• (18) Appendix C to Annexes I and II to Delegated Regulation (EU) 2021/2139 (‘Appendix C’) lays down generic technical screening criteria for ‘do no significant harm’ to pollution prevention and control applicable to different activities. That Appendix specifies criteria for the use and presence of chemicals. So far, it has provided for exemptions in certain cases, where the use of those chemicals has been proven to be essential to the society. That exemption poses certain concerns in terms of legal certainty and verification for undertakings and financial market participants, linked to the absence of clear definition of the concept of ‘essential use’. Therefore, pending further guidance clarifying how operators should assess and document that they comply with the upcoming Commission’s horizontal principles on essential use of chemicals, targeted changes should be made to that Appendix and the concept of ‘use essential for the society’ should be replaced by criteria that offer more legal certainty and for which compliance can be verified more easily. Pending that further guidance, the concept of ‘use essential for the society’ should thus be replaced by the requirement that no other suitable alternative substances or technologies are available on the market, and that the substances are used under controlled conditions.

• (19) To further improve the usability of Appendix C, additional targeted amendments should be made to point (f) of that Appendix to specify a minimum concentration limit for substances of very high concern in a product and a reference date for the assessment of compliance with the requirement specified in that point. In addition, point (g) of Appendix C should be deleted and replaced by a new paragraph which specifies a minimum concentration limit and the scope of application of the requirement specified in that paragraph.

• (20) As climate change is likely to affect all sectors of the economy, all sectors of the economy will need to be adapted to the adverse impact of the current climate and the expected future climate. Technical screening criteria for substantial contribution to climate change adaptation are therefore to be established in the future for all sectors and economic activities that are covered by the technical screening criteria for substantial contribution to climate change mitigation set out in this Regulation.

• (21) To address certain technical and legal inconsistencies identified since the application of Delegated Regulation (EU) 2021/2139, targeted amendments should be introduced to that Regulation.

• (22) Delegated Regulation (EU) 2021/2139 should therefore be amended accordingly.

• (23) This Regulation is consistent with the climate-neutrality objective set out in Article 2(1) of Regulation (EU) 2021/1119 of the European Parliament and the Council ¹⁴ and ensures progress on adaptation as referred to in Article 5 of that Regulation.

• (24) To synchronise the application of this Regulation with the reporting under Commission Delegated Regulation (EU) 2021/2178 ¹⁵, this Regulation should apply from 1 January 2024, with the exception of the amendment to point (g) of Appendix C. In order to provide for sufficient time for undertakings to comply with that amendment it should apply from 1 January 2025,

HAS ADOPTED THIS REGULATION:

Article 1

Amendments to Delegated Regulation (EU) 2021/2139

Delegated Regulation (EU) 2021/2139 is amended as follows:

• (1) Annex I is amended in accordance with Annex I to this Regulation;

• (2) Annex II is amended in accordance with Annex II to this Regulation.

Article 2

Entry into force and application

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

It shall apply from 1 January 2024.

However, point (28) of Annex I and point (26) of Annex II shall apply from 1 January 2025.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 27 June 2023.

For the Commission

The President

Ursula VON DER LEYEN

ANNEX I

AMENDMENTS TO ANNEX I TO DELEGATED REGULATION (EU) 2021/2139

Annex I to Delegated Regulation (EU) 2021/2139 is amended as follows:

• (1) Section 3.3., subsection ‘Technical screening criteria’ is amended as follows:

• (a) subsection ‘Substantial contribution to climate change mitigation’, is amended as follows:

• (i) in point (l), the following point (v) is added:

• ‘(v) from 1 January 2026, vessels that are able to run on zero direct (tailpipe) CO2 emission fuels or on fuels from renewable sources¹ have an attained Energy Efficiency Design Index (EEDI) value equivalent to reducing the EEDI reference line by at least 20 percentage points below the EEDI requirements applicable on 1 April 20222, and:

• (a) are able to plug-in at berth;

• (b) for gas-fuelled ships, demonstrate the use of state-of-the-art measures and technologies to mitigate methane slippage emissions.’;

• (ii) in point (m), the following point (iv) is added:

• ‘(iv) from 1 January 2026, vessels that are able to run on zero direct (tailpipe) CO2 emission fuels or on fuels from renewable sources³ have an attained Energy Efficiency Design Index (EEDI) value equivalent to reducing the EEDI reference line by at least 20 percentage points below the EEDI requirements applicable on 1 April 20224, and:

• (a) are able to plug-in at berth;

• (b) for gas-fuelled ships, demonstrate the use of state-of-the-art measures and technologies to mitigate methane slippage emissions.’;

• (b) in subsection ‘Technical screening criteria’, subsection ‘Do no significant harm (“DNSH”)’, point (5) is replaced by the following:

• ^*1 Fuels that meet the technical screening criteria specified in Sections 3.10. and 4.13. of this Annex.

• ^*2 EEDI requirements specified as a percentage reduction factor, to be applied to the EEDI reference value, as agreed by the Marine Environment Protection Committee of the International Maritime Organization on its seventy-fifth session. The defined percentage points in the technical screening criteria for EEDI shall be added to EEDI percentage reduction factor.

• ^*3 Fuels that meet the technical screening criteria specified in Sections 3.10. and 4.13. of this Annex.

• ^*4 EEDI requirements defined as a percentage reduction factor, to be applied to the EEDI reference value, as agreed by the Marine Environment Protection Committee of the International Maritime Organization on its seventy-fifth session. The defined percentage points in the technical screening criteria for EEDI shall be added to EEDI percentage reduction factor.’;

• (2) the following Sections 3.18., 3.19., 3.20. and 3.21. are added:

‘3.18.   Manufacture of automotive and mobility components

Description of the activity

Manufacture, repair, maintenance, retrofitting, repurposing and upgrade of mobility components for zero-emission personal mobility devices and of automotive and mobility systems, components, separate technical units, parts and spare parts as defined in Article 3, points (18) to (21) and (23) of Regulation (EU) 2018/858 of the European Parliament and of the Council¹, type approved, designed, and constructed for use only in vehicles and buses of category M1, M2, M3, N1, N2 and N3, and in Article 3, points (15) to (18) and (21) in Regulation (EU) No 168/2013 of the European Parliament and of the Council2, type approved, designed, and constructed for use only in vehicles of category L meeting the criteria set out in this Section and which are essential for delivering and improving the environmental performance of the vehicle.

The economic activities in this category are excluded from Sections 3.3. and 3.6. of this Annex.

Where Sections 3.2. and 3.4. of this Annex are applicable, the economic activities in this category are excluded from this Section.

The economic activities in this category could be associated with several NACE codes, in particular C22.2, C26.1, C26.2, 26.3, 26.4, C28.14, C28.15, C29.2, C29.3, and C33.17 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 10(1), point (i), of Regulation (EU) 2020/852 where it complies with the technical screening criteria set out in this Section.

Technical screening criteria

Substantial contribution to climate change mitigation	Substantial contribution to climate change mitigation
1. The economic activity manufactures, repairs, maintains, retrofits, repurposes and upgrades components that are essential for delivering and improving the environmental performance for the following vehicles: (a) urban, suburban and road passenger transport devices, where the direct (tailpipe) CO2 emissions of the vehicles are zero; (b) vehicles designated as categories M2 and M33 where the direct (tailpipe) CO2 emissions of the vehicles are zero; (c) vehicles of category M1 and N1 classified as light-duty vehicles4 where specific emissions of CO2, as defined in Article 3(1), point (h), of Regulation (EU) 2019/631 of the European Parliament and of the Council5, are zero; (d) vehicles of category L6 with tailpipe CO2 emissions equal to 0 g CO2e/km calculated in accordance with the emission test laid down in Regulation (EU) No 168/2013; (e) vehicles of categories N2 and N3, and N1 classified as heavy-duty vehicles, not dedicated to transporting fossil fuels with a technically permissible maximum laden mass not exceeding 7,5 tonnes that are “zero-emission heavy-duty vehicles” as defined in Article 3, point (11), of Regulation (EU) 2019/1242 of the European Parliament and of the Council*7. 2. The economic activity manufactures, repairs, maintains, retrofits, repurposes and upgrades mobility components for personal mobility devices with a propulsion that comes from the physical activity of the user, from a zero-emissions motor, or a mix of zero-emissions motor and physical activity.	1. The economic activity manufactures, repairs, maintains, retrofits, repurposes and upgrades components that are essential for delivering and improving the environmental performance for the following vehicles: (a) urban, suburban and road passenger transport devices, where the direct (tailpipe) CO2 emissions of the vehicles are zero; (b) vehicles designated as categories M2 and M33 where the direct (tailpipe) CO2 emissions of the vehicles are zero; (c) vehicles of category M1 and N1 classified as light-duty vehicles4 where specific emissions of CO2, as defined in Article 3(1), point (h), of Regulation (EU) 2019/631 of the European Parliament and of the Council5, are zero; (d) vehicles of category L6 with tailpipe CO2 emissions equal to 0 g CO2e/km calculated in accordance with the emission test laid down in Regulation (EU) No 168/2013; (e) vehicles of categories N2 and N3, and N1 classified as heavy-duty vehicles, not dedicated to transporting fossil fuels with a technically permissible maximum laden mass not exceeding 7,5 tonnes that are “zero-emission heavy-duty vehicles” as defined in Article 3, point (11), of Regulation (EU) 2019/1242 of the European Parliament and of the Council*7. 2. The economic activity manufactures, repairs, maintains, retrofits, repurposes and upgrades mobility components for personal mobility devices with a propulsion that comes from the physical activity of the user, from a zero-emissions motor, or a mix of zero-emissions motor and physical activity.
Do no significant harm (“DNSH”)	Do no significant harm (“DNSH”)
(2) Climate change adaptation	The activity complies with the criteria set out in Appendix A to this Annex.
(3) Sustainable use and protection of water and marine resources	The activity complies with the criteria set out in Appendix B to this Annex
(4) Transition to a circular economy	The activity assesses the availability of and, where feasible, adopts techniques that support: (a) reuse and use of secondary raw materials and re-used components in products manufactured; (b) design for high durability, recyclability, easy disassembly and adaptability of products manufactured; (c) waste management that prioritises recycling over disposal, in the manufacturing process; (d) information on and traceability of substances of concern throughout the life cycle of the manufactured products.
(5) Pollution prevention and control	The activity complies with the criteria set out in Appendix C to this Annex Where applicable, the components and parts do not contain lead, mercury, hexavalent chromium and cadmium.
(6) Protection and restoration of biodiversity and ecosystems	The activity complies with the criteria set out in Appendix D to this Annex.

3.19.   Manufacture of rail rolling stock constituents

Description of the activity

Manufacture, installation, technical consulting, retrofitting, upgrade, repair, maintenance, and repurposing of products, equipment, systems, and software related to the rail constituents detailed in Point 2.7 of Annex II to Directive (EU) 2016/797.

These constituents and services are essential to the environmental performance, operation and functioning over the lifetime of rail rolling stock that comply with Section 3.3. of this Annex.

The economic activities in this category could be associated with several NACE codes, in particular, C30.2 C27.1, C27.9 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

The economic activities in this category are excluded from Sections 3.3. and 3.6. of this Annex.

An economic activity in this category is an enabling activity in accordance with Article 10(1), point (i), of Regulation (EU) 2020/852 where it complies with the technical screening criteria set out in this Section.

Technical screening criteria

Substantial contribution to climate change mitigation	Substantial contribution to climate change mitigation
The economic activity manufactures, installs, retrofits, repairs, maintains, upgrades or repurposes products, equipment, systems or software related to the following rail constituents detailed in Point 2.7 of Annex II to Directive (EU) 2016/797 or provides related technical consulting services: These constituents and services are essential to the environmental performance, operation and functioning over the lifetime of one or more of the technologies listed below: (a) trains, passenger coaches and wagons that have zero direct (tailpipe) CO2 emissions that comply with Section 3.3. of Annex I to this Regulation; (b) trains, passenger coaches and wagons that have zero direct tailpipe CO2 emission when operated on a track with necessary infrastructure, and use a conventional engine where such infrastructure is not available (bimode) that comply with Section 3.3. of Annex I to this Regulation.	The economic activity manufactures, installs, retrofits, repairs, maintains, upgrades or repurposes products, equipment, systems or software related to the following rail constituents detailed in Point 2.7 of Annex II to Directive (EU) 2016/797 or provides related technical consulting services: These constituents and services are essential to the environmental performance, operation and functioning over the lifetime of one or more of the technologies listed below: (a) trains, passenger coaches and wagons that have zero direct (tailpipe) CO2 emissions that comply with Section 3.3. of Annex I to this Regulation; (b) trains, passenger coaches and wagons that have zero direct tailpipe CO2 emission when operated on a track with necessary infrastructure, and use a conventional engine where such infrastructure is not available (bimode) that comply with Section 3.3. of Annex I to this Regulation.
Do no significant harm (“DNSH”)	Do no significant harm (“DNSH”)
(2) Climate change adaptation	The activity complies with the criteria set out in Appendix A to this Annex.
(3) Sustainable use and protection of water and marine resources	The activity complies with the criteria set out in Appendix B to this Annex.
(4) Transition to a circular economy	The activity assesses the availability of and, where feasible, adopts techniques that support: (a) reuse and use of secondary raw materials and re-used components in products manufactured; (b) design for high durability, recyclability, easy disassembly and adaptability of products manufactured; (c) waste management that prioritises recycling over disposal, in the manufacturing process; (d) information on and traceability of substances of concern throughout the life cycle of the manufactured products.
(5) Pollution prevention and control	The activity complies with the criteria set out in Appendix C to this Annex. Where applicable, vehicles do not contain lead, mercury, hexavalent chromium and cadmium.
(6) Protection and restoration of biodiversity and ecosystems	The activity complies with the criteria set out in Appendix D to this Annex.

3.20.   Manufacture, installation, and servicing of high, medium and low voltage electrical equipment for electrical transmission and distribution that result in or enable a substantial contribution to climate change mitigation

Description of the activity

The economic activity develops, manufactures, installs, maintains or services electrical products, equipment or systems, or software aimed at substantial GHG emission reductions in high, medium and low voltage electrical transmission and distribution systems through electrification, energy efficiency, integration of renewable energy or efficient power conversion.

The economic activity includes systems to integrate renewable sources of energy in the electric grid, interconnect or increase grid automation, flexibility and stability, manage demand-side response, develop low carbon transport or heat, or deploy smart metering technologies for substantial improvement of energy efficiency.

The economic activity in this category does not include heat and power generating equipment and electrical appliances.

Where an economic activity falls under this Section and Section 4.9. of this Annex, Section 4.9. of this Annex applies.

The economic activities in this category could be associated with several NACE codes, in particular C26.51, C27.1, C27.3, C27.9, C33.13, C33.14 and C33.2 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 as referred to in Article 10(1), point (i), of Regulation (EU) 2020/852 where it complies with the technical screening criteria set out in this Section.

Technical screening criteria

Substantial contribution to climate change mitigation	Substantial contribution to climate change mitigation
1. The activity manufactures, installs, or maintains one or more of the following, or provides maintenance, repair and technical consulting services essential to the functioning over the lifetime of one or more of the following: (a) electric vehicle charging stations and supporting electric infrastructure for the electrification of transport that is installed primarily to enable electric vehicle charging. Any activity included in Section 7.4. is excluded from this point; (b) transmission and distribution current-carrying wiring devices and non-current-carrying wiring devices for wiring electrical circuits, and transformers that comply with the Tier 2 (1 July 2021) requirements for large power transformers set out in Annex I to Commission Regulation (EU) No 548/20148, and medium power transformers with highest voltage for equipment not exceeding 36 kV, with AA0 level requirements on no-load losses set out in standard EN 50708 series, provided those devices and transformers contribute to increasing the proportion of renewable energy in the system or improve energy efficiency; (c) low voltage electrical products, equipment and systems, that increase the controllability of the electricity system, and contribute to increasing the proportion of renewable energy or improve energy efficiency, that are: (i) low voltage circuit breakers, switchgears, switchboards, panel boards or control centres that are connectable, automated or equipped with power or energy metering devices and that comply with IEC TR 63196 Low-Voltage Switchgear and Control gear and their assemblies – Energy efficiency; (ii) Home and Building Electronic Systems (HBES), as referred to in EN IEC 63044 series, where the products and systems are needed to measure, control and reduce energy consumption; (iii) technologies that enable to increase the energy efficiency of low voltage installations, recognised under HD 60364-8-1: Low-voltage electrical installations – Part 8-1: Energy efficiency and HD 60364-8-82: Low-voltage electrical installations – Part 8-82: Functional aspects – Prosumer’s low-voltage electrical installations, including energy and power meters, external customer display, power compensation, phase compensation and filtering and efficient electric motor-driven systems; (d) high and medium voltage switchgears and control gears that increase the controllability of the electricity system, are integrated to increase the proportion of renewable energy or improve energy efficiency. The equipment referred to in this point (d) complies with EN 62271-1 High-voltage switchgear and control gear – Part 1: Common specifications for alternating current switchgear and control gear and EN 62271-200 High-voltage switchgear and control gear – Part 200: AC metal-enclosed switchgear and control gear for rated voltages above 1 kV and up to and including 52 kV or with EN 62271-203 High-voltage switchgear and control gear – Part 203: Gas-insulated metal-enclosed switchgear for rated voltages above 52kV; (e) demand response and load shifting equipment, systems and services that increase the flexibility of the electricity system and support grid stability, that include: (i) solutions to carry information to users for remotely acting on supply or consumption, including customer data hubs; (ii) automated control centres for load management and their core components (switchboards, contactors, relays, circuit breakers, automatic transfer switches). Core components are installed as part of control centres; (iii) where not included in Section 8.2., advanced software and analytics to maximise efficiency and automation of electricity networks or integration of decentralised energy resources, at the level of the electricity grid or an industry, that include: (a) advanced control rooms, automation of electrical substations, voltage control capabilities; (b) operation software enabling operators to simulate the operation of grids for the purpose of ensuring grid stability, managing Distributed Energy Resources or improving grid performance. The software supports dynamic grid characteristics required for the transition towards renewable energy. It is capable of processing data from near-real time grid measurements to observe how the power transmission, distribution and consumption really occur, and use this information to improve simulation studies and operation activities, including the avoidance of outages, black-outs, and wastes; (iv) where not included in Section 8.2., software supporting the design and planning of new grids or grid upgrades. The software supports dynamic grid characteristics required for the transition towards renewable energy, including volatile power generation at distribution level (“prosumers”), changing of power flow directions, and the use of grid storage units; (v) meteorological sensors for forecasting renewable electricity production; (vi) stand-alone or embedded connectable controllers and relays that enable an efficient use of electrical sources and loads; (vii) load-shedding and load-shifting equipment for load management and source-switching equipment, where the equipment is compliant with EN IEC 62962:2019 Particular requirements for load-shedding equipment; (f) where not included in Section 8.2., communication systems, software and control equipment, products, systems and services for energy efficiency or integration of renewable energy: (i) equipment to allow for exchange specifically of renewable electricity between users; (ii) battery swapping technology or service, supporting the electrification of transport; (iii) microgrid management systems; (iv) energy or power management systems, energy or power controls systems and SCADA systems for power management; (v) contactors, motor starters and motor controls that are connectable or automated and enable remote or automated control of electricity consumption and optimisation of load variation; (vi) variable speed drives and other variable speed drive solutions, excluding soft starters, that enable energy efficiency in electrical motor applications, where the equipment is compliant with EN 61800-9-1: Adjustable speed electrical power drive systems – Part 9-1: Ecodesign for power drive systems, motor starters, power electronics and their driven applications – General requirements for setting energy efficiency standards for power driven equipment using the extended product approach (EPA) and semi analytic model (SAM) and EN 61800-9-2: Adjustable speed electrical power drive systems – Part 9-2: Ecodesign for power drive systems, motor starters, power electronics and their driven applications – Energy efficiency indicators for power drive systems and motor starters; (vii) low-voltage electrical motors with an energy efficiency class (according to EN 60034-30-1: Rotating electrical machines – Part 30-1: Efficiency classes of line operated AC motors (IE code)) exceeding the requirements set by Commission Regulation (EU) 2019/17819, specifically: (a) single-phase motors with a rated output of 0,12 kW or higher and an efficiency class of IE3 or higher; (b) Ex eb increased safety motors with a rated output between 0,12 kW and 1 000 kW, with 2, 4, 6 or 8 poles and an efficiency class IE3 or higher; (c) 3-phase motors with a rated output between 0,75 kW and 1 000 kW, with 2, 4, 6 or 8 poles, which are not Ex eb increased safety motors and have (i) an efficiency class of IE5 for motors with 2,4 or 6 poles and a rated power between 75 kW and 200 kW, (ii) an efficiency class of IE 4 or higher for all other motors; (d) 3-phase motors with a rated output between 0,12 kW and 0,75 kW, with 2, 4, 6 or 8 poles, which are not Ex eb increased safety motors and have an efficiency class of IE3 or higher; (e) 3-phase VSD only motors with a rated output between 0,75 kW and 1 000 kW with 2, 4, 6 or 8 poles, classified according to the EN IEC TS 60034-30-2 and an efficiency class IE5; (viii) medium- and high-voltage motors with a rated power above 1 000 kW and an energy efficiency class IE 4 or higher according to draft standard IEC 60034-30-3. 2. The following elements are not compliant: (a) infrastructure dedicated to creating a direct connection or expanding an existing direct connection between a substation or network and a power production plant that is more greenhouse gas intensive than 100 g CO2e/kWh measured on a life cycle basis. That exclusion only applies to equipment that is directly used to connect, or reinforce the connection to, a power production plant that is more greenhouse gas intensive than 100 g CO2e/kWh measured on a life cycle basis; (b) products, equipment, systems and software that are installed in an infrastructure dedicated to the extraction, transport, distribution, storage, manufacturing or transformation of fossil fuels. 3. Switchgears with insulating or breaking medium using, or whose functioning relies on gases with a Global Warming Potential above 10 are not compliant. For all power ranges, switchgears containing SF6 are not compliant. 4. All products, equipment and systems comply with mandatory energy and material efficiency performance requirements laid down in Directive 2009/125/EC of the European Parliament and of the Council*10. Manufacturers refer to the latest applicable performance requirements in the Union.	1. The activity manufactures, installs, or maintains one or more of the following, or provides maintenance, repair and technical consulting services essential to the functioning over the lifetime of one or more of the following: (a) electric vehicle charging stations and supporting electric infrastructure for the electrification of transport that is installed primarily to enable electric vehicle charging. Any activity included in Section 7.4. is excluded from this point; (b) transmission and distribution current-carrying wiring devices and non-current-carrying wiring devices for wiring electrical circuits, and transformers that comply with the Tier 2 (1 July 2021) requirements for large power transformers set out in Annex I to Commission Regulation (EU) No 548/20148, and medium power transformers with highest voltage for equipment not exceeding 36 kV, with AA0 level requirements on no-load losses set out in standard EN 50708 series, provided those devices and transformers contribute to increasing the proportion of renewable energy in the system or improve energy efficiency; (c) low voltage electrical products, equipment and systems, that increase the controllability of the electricity system, and contribute to increasing the proportion of renewable energy or improve energy efficiency, that are: (i) low voltage circuit breakers, switchgears, switchboards, panel boards or control centres that are connectable, automated or equipped with power or energy metering devices and that comply with IEC TR 63196 Low-Voltage Switchgear and Control gear and their assemblies – Energy efficiency; (ii) Home and Building Electronic Systems (HBES), as referred to in EN IEC 63044 series, where the products and systems are needed to measure, control and reduce energy consumption; (iii) technologies that enable to increase the energy efficiency of low voltage installations, recognised under HD 60364-8-1: Low-voltage electrical installations – Part 8-1: Energy efficiency and HD 60364-8-82: Low-voltage electrical installations – Part 8-82: Functional aspects – Prosumer’s low-voltage electrical installations, including energy and power meters, external customer display, power compensation, phase compensation and filtering and efficient electric motor-driven systems; (d) high and medium voltage switchgears and control gears that increase the controllability of the electricity system, are integrated to increase the proportion of renewable energy or improve energy efficiency. The equipment referred to in this point (d) complies with EN 62271-1 High-voltage switchgear and control gear – Part 1: Common specifications for alternating current switchgear and control gear and EN 62271-200 High-voltage switchgear and control gear – Part 200: AC metal-enclosed switchgear and control gear for rated voltages above 1 kV and up to and including 52 kV or with EN 62271-203 High-voltage switchgear and control gear – Part 203: Gas-insulated metal-enclosed switchgear for rated voltages above 52kV; (e) demand response and load shifting equipment, systems and services that increase the flexibility of the electricity system and support grid stability, that include: (i) solutions to carry information to users for remotely acting on supply or consumption, including customer data hubs; (ii) automated control centres for load management and their core components (switchboards, contactors, relays, circuit breakers, automatic transfer switches). Core components are installed as part of control centres; (iii) where not included in Section 8.2., advanced software and analytics to maximise efficiency and automation of electricity networks or integration of decentralised energy resources, at the level of the electricity grid or an industry, that include: (a) advanced control rooms, automation of electrical substations, voltage control capabilities; (b) operation software enabling operators to simulate the operation of grids for the purpose of ensuring grid stability, managing Distributed Energy Resources or improving grid performance. The software supports dynamic grid characteristics required for the transition towards renewable energy. It is capable of processing data from near-real time grid measurements to observe how the power transmission, distribution and consumption really occur, and use this information to improve simulation studies and operation activities, including the avoidance of outages, black-outs, and wastes; (iv) where not included in Section 8.2., software supporting the design and planning of new grids or grid upgrades. The software supports dynamic grid characteristics required for the transition towards renewable energy, including volatile power generation at distribution level (“prosumers”), changing of power flow directions, and the use of grid storage units; (v) meteorological sensors for forecasting renewable electricity production; (vi) stand-alone or embedded connectable controllers and relays that enable an efficient use of electrical sources and loads; (vii) load-shedding and load-shifting equipment for load management and source-switching equipment, where the equipment is compliant with EN IEC 62962:2019 Particular requirements for load-shedding equipment; (f) where not included in Section 8.2., communication systems, software and control equipment, products, systems and services for energy efficiency or integration of renewable energy: (i) equipment to allow for exchange specifically of renewable electricity between users; (ii) battery swapping technology or service, supporting the electrification of transport; (iii) microgrid management systems; (iv) energy or power management systems, energy or power controls systems and SCADA systems for power management; (v) contactors, motor starters and motor controls that are connectable or automated and enable remote or automated control of electricity consumption and optimisation of load variation; (vi) variable speed drives and other variable speed drive solutions, excluding soft starters, that enable energy efficiency in electrical motor applications, where the equipment is compliant with EN 61800-9-1: Adjustable speed electrical power drive systems – Part 9-1: Ecodesign for power drive systems, motor starters, power electronics and their driven applications – General requirements for setting energy efficiency standards for power driven equipment using the extended product approach (EPA) and semi analytic model (SAM) and EN 61800-9-2: Adjustable speed electrical power drive systems – Part 9-2: Ecodesign for power drive systems, motor starters, power electronics and their driven applications – Energy efficiency indicators for power drive systems and motor starters; (vii) low-voltage electrical motors with an energy efficiency class (according to EN 60034-30-1: Rotating electrical machines – Part 30-1: Efficiency classes of line operated AC motors (IE code)) exceeding the requirements set by Commission Regulation (EU) 2019/17819, specifically: (a) single-phase motors with a rated output of 0,12 kW or higher and an efficiency class of IE3 or higher; (b) Ex eb increased safety motors with a rated output between 0,12 kW and 1 000 kW, with 2, 4, 6 or 8 poles and an efficiency class IE3 or higher; (c) 3-phase motors with a rated output between 0,75 kW and 1 000 kW, with 2, 4, 6 or 8 poles, which are not Ex eb increased safety motors and have (i) an efficiency class of IE5 for motors with 2,4 or 6 poles and a rated power between 75 kW and 200 kW, (ii) an efficiency class of IE 4 or higher for all other motors; (d) 3-phase motors with a rated output between 0,12 kW and 0,75 kW, with 2, 4, 6 or 8 poles, which are not Ex eb increased safety motors and have an efficiency class of IE3 or higher; (e) 3-phase VSD only motors with a rated output between 0,75 kW and 1 000 kW with 2, 4, 6 or 8 poles, classified according to the EN IEC TS 60034-30-2 and an efficiency class IE5; (viii) medium- and high-voltage motors with a rated power above 1 000 kW and an energy efficiency class IE 4 or higher according to draft standard IEC 60034-30-3. 2. The following elements are not compliant: (a) infrastructure dedicated to creating a direct connection or expanding an existing direct connection between a substation or network and a power production plant that is more greenhouse gas intensive than 100 g CO2e/kWh measured on a life cycle basis. That exclusion only applies to equipment that is directly used to connect, or reinforce the connection to, a power production plant that is more greenhouse gas intensive than 100 g CO2e/kWh measured on a life cycle basis; (b) products, equipment, systems and software that are installed in an infrastructure dedicated to the extraction, transport, distribution, storage, manufacturing or transformation of fossil fuels. 3. Switchgears with insulating or breaking medium using, or whose functioning relies on gases with a Global Warming Potential above 10 are not compliant. For all power ranges, switchgears containing SF6 are not compliant. 4. All products, equipment and systems comply with mandatory energy and material efficiency performance requirements laid down in Directive 2009/125/EC of the European Parliament and of the Council*10. Manufacturers refer to the latest applicable performance requirements in the Union.
Do no significant harm (“DNSH”)	Do no significant harm (“DNSH”)
(2) Climate change adaptation	The activity complies with the criteria set out in Appendix A to this Annex.
(3) Sustainable use and protection of water and marine resources	The activity complies with the criteria set out in Appendix B to this Annex.
(4) Transition to a circular economy	The activity assesses the availability of and, where feasible, adopts techniques that support: (a) reuse and use of secondary raw materials and reused components in products manufactured; (b) design for high durability, recyclability, easy disassembly and adaptability of products manufactured; (c) waste management that prioritises recycling over disposal in the manufacturing process; (d) information on and traceability of substances of concern throughout the life cycle of the manufactured products.
(5) Pollution prevention and control	The activity complies with the criteria set out in Appendix C to this Annex.
(6) Protection and restoration of biodiversity and ecosystems	The activity complies with the criteria set out in Appendix D to this Annex.

3.21.   Manufacturing of aircraft

Description of the activity

Manufacture, repair, maintenance, overhaul, retrofitting, design, repurposing and upgrade of aircraft and aircraft parts and equipment^*11.

The economic activities in this category could be associated with a NACE code, in particular C30.3 and C33.16, in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

Where an economic activity in this category does not fulfil the substantial contribution criterion specified in point (a) of this Section, the activity is a transitional activity as referred to in Article 10(2) of Regulation (EU) 2020/852, provided it complies with the remaining technical screening criteria set out in this Section.

Technical screening criteria