LegalizeCommission Delegated Regulation (EU) 2023/2486 of 27 June 2023 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to the sustainable use and protection of water and marine resources, to the transition to a circular economy, to pollution prevention and control, or to the protection and restoration of biodiversity and ecosystems and for determining whether that economic activity causes no significant harm to any of the other environmental objectives and amending Commission Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for those economic activities
Article 1
Technical screening criteria related to the sustainable use and protection of water and marine resources
The technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to the sustainable use and protection of water and marine resources and for determining whether that economic activity causes no significant harm to any of the other environmental objectives laid down in Article 9 of Regulation (EU) 2020/852 are set out in Annex I to this Regulation.
Article 2
Technical screening criteria related to the transition to a circular economy
The technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to the transition to a circular economy and for determining whether that economic activity causes no significant harm to any of the other environmental objectives laid down in Article 9 of Regulation (EU) 2020/852 are set out in Annex II to this Regulation.
Article 3
Technical screening criteria related to pollution prevention and control
The technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to pollution prevention and control and for determining whether that economic activity causes no significant harm to any of the other environmental objectives laid down in Article 9 of Regulation (EU) 2020/852 are set out in Annex III to this Regulation.
Article 4
Technical screening criteria related to the protection and restoration of biodiversity and ecosystems
The technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to the protection and restoration of biodiversity and ecosystems and for determining whether that economic activity causes no significant harm to any of the other environmental objectives laid down in Article 9 of Regulation (EU) 2020/852 are set out in Annex IV to this Regulation.
Article 5
Amendments to Delegated Regulation (EU) 2021/2178
Delegated Regulation (EU) 2021/2178 is amended as follows:
(1) in Article 8, paragraph 5 is deleted;
(2) in Article 10, the following paragraphs 6 and 7 are added: ‘6. From 1 January 2024 until 31 December 2024, non-financial undertakings shall only disclose the proportion of Taxonomy-eligible and Taxonomy non-eligible economic activities pursuant to Delegated Regulation (EU) 2023/2486 and Sections 3.18 to 3.21, Sections 6.18 to 6.20 of Annex I to Delegated Regulation (EU) 2021/2139 and Sections 5.13, 7.8, 8.4, 9.3, 14.1 and 14.2 of Annex II to Delegated Regulation (EU) 2021/2139 in their total turnover, capital and operational expenditure and the qualitative information referred to in Section 1.2 of Annex I relevant for that disclosure. The key performance indicators of non-financial undertakings shall cover the economic activities set out in Delegated Regulation (EU) 2023/2486 and Sections 3.18 to 3.21, Sections 6.18 to 6.20 of Annex I to Delegated Regulation (EU) 2021/2139 and Sections 5.13, 7.8, 8.4, 9.3, 14.1 and 14.2 of Annex II to Delegated Regulation (EU) 2021/2139 from 1 January 2025.
From 1 January 2024 until 31 December 2025, financial undertakings shall only disclose:
(a) the proportion in their covered assets of exposures to Taxonomy non-eligible and Taxonomy-eligible economic activities pursuant to Delegated Regulation (EU) 2023/2486 and Sections 3.18 to 3.21, Sections 6.18 to 6.20 of Annex I to Delegated Regulation (EU) 2021/2139 and Sections 5.13, 7.8, 8.4, 9.3, 14.1 and 14.2 of Annex II to Delegated Regulation (EU) 2021/2139; (b) the qualitative information referred to in Annex XI relating to economic activities referred to in point (a). The key performance indicators of financial undertakings shall cover the economic activities set out in Delegated Regulation (EU) 2023/2486 and Sections 3.18 to 3.21, Sections 6.18 to 6.20 of Annex I to Delegated Regulation (EU) 2021/2139 and Sections 5.13, 7.8, 8.4, 9.3, 14.1 and 14.2 of Annex II to Delegated Regulation (EU) 2021/2139 from 1 January 2026.’ ;
(3) Annexes I, II, III, IV, V, VII, IX and X are amended in accordance with Annex V to this Regulation;
(4) Annex VI is replaced by the text set out in Annex VI to this Regulation;
(5) Annex VIII is replaced by the text set out in Annex VII to this Regulation.
Article 6
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.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
ANNEX I
1. Manufacturing
1.1. Manufacture, installation and associated services for leakage control technologies enabling leakage reduction and prevention in water supply systems
The economic activity manufactures, installs, or provides associated services for leakage control technologies that enable leakage reduction and prevention in water supply systems (WSSs).
The economic activities in this category could be associated with several NACE codes, in particular E36 and F42.99, in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.
An economic activity in this category is an enabling activity in accordance with Article 12(1), point (e), of Regulation (EU) 2020/852 where it complies with the technical screening criteria set out in this Section.
| Substantial contribution to the sustainable use and protection of water and marine resources | |
|---|---|
| 1. The activity manufactures, installs or provides maintenance, repairs or professional services for leakage control technologies in new or existing water supply systems, aimed at controlling the pressure in district metered areas (DMAs) of the water supply system to a minimum pressure. The leakage control technologies include in particular pressure control valves, pressure transmitters, flow meters and communication devices and special civil works, including manholes to maintain the pressure control valves. 2. Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed with the aim of achieving good water status and good ecological potential as defined in Article 2, points (22) and (23), of Regulation (EU) 2020/852, in accordance with Directive 2000/60/EC (1) and in line with a water use and protection management plan, developed in accordance with that Directive for the potentially affected water body or bodies, in consultation with relevant stakeholders. Where an Environmental Impact Assessment is carried out in accordance with Directive 2011/92/EU of the European Parliament and of the Council (2) and where that assessment contains an assessment of the impact on water in accordance with Directive 2000/60/EC, no additional assessment of impact on water is required, provided the risks identified have been addressed. | |
| Do no significant harm (‘DNSH’) | |
| (1) Climate change mitigation | N/A |
| (2) Climate change adaptation | The activity complies with the criteria set out in Appendix A 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. |
| (1) For activities in third countries, in accordance with applicable national law or international standards which pursue equivalent objectives of good water status and good ecological potential, through equivalent procedural and substantive rules, i.e. a water use and protection management plan developed in consultation with relevant stakeholders which ensures that (1) the impact of the activities on the identified status or ecological potential of potentially affected water body or bodies is assessed; and (2) deterioration or prevention of good status/ecological potential is avoided. (2) Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment (OJ L 26, 28.1.2012, p. 1). |
2. Water supply, sewerage, waste management and remediation activities
2.1. Water supply
Construction, extension, operation, and renewal of water collection, treatment and supply systems intended for human consumption based on the abstraction of natural resources of water from surface or ground water sources.
The economic activity includes abstraction of the water resource, necessary treatment to make the quality of water compliant with the applicable legislation and distribution to the population and food business operators in piped systems.
The economic activity does not cover irrigation and abstraction of water resources for desalination of marine or brackish water.
The economic activities in this category could be associated with several NACE codes, in particular E36.00 and F42.9, in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.
| Substantial contribution to the sustainable use and protection of water and marine resources | |
|---|---|
| 1. For the operation of an existing water supply system providing water supply in a sufficient and healthy quality to consumers, and contributing to water resource efficiency, the activity complies with the following criteria: (a) the water supply system complies with Directive (EU) 2020/2184, Commission Implementing Decision (EU) 2022/679 (1), and delegated and implementing acts adopted under that Directive; (b) the leakage level of the system is either calculated using the Infrastructure Leakage Index (ILI) (2) rating method and the threshold value equals to or is lower than 2,0, or is calculated using another appropriate method and the threshold value is established in accordance with Article 4 of Directive (EU) 2020/2184. That calculation is to be applied across the extent of a specified part of a water supply (distribution) network, i.e. at water supply zone level, district metered area(s) (DMAs) or pressure managed area(s) (PMAs); (c) the water supply systems include metering at consumer level, where water is delivered to a contractual delivery point of the consumers’ own drinking water distribution system. 2. For the construction and operation of a new water supply system, or an extension of an existing water supply system that provides water to new areas or improves that water supply to existing areas, the activity complies with the following criteria: (a) the water supply system complies with Directive (EU) 2020/2184, including the requirements set out in Article 13(8) of that Directive, in Implementing Decision (EU) 2022/679, and in delegated and implementing acts adopted under that Directive; (b) the leakage level of the new or extension system is either calculated using the Infrastructure Leakage Index (ILI) rating method and the threshold value equals to or is lower than 1,5 or is calculated using another appropriate method and the threshold value is established in accordance with Article 4 of Directive (EU) 2020/2184. That calculation is to be applied across the extent of the affected and specified part of a water supply (distribution) network where the works are carried out, i.e. at water supply zone level, district metered area(s) (DMAs) or pressure managed area(s) (PMAs); (c) the water supply system includes metering at consumer level, where water is delivered to a contractual delivery point of the consumers’ own drinking water distribution system. 3. For renewal of existing water supply systems, the activity complies with the following criteria: (a) the activity closes the gap by at least 20 % either between the current leakage level averaged over three years, calculated using the Infrastructure Leakage Index (ILI) rating method and an ILI of 1,5 or between the current leakage level averaged over three years, calculated using another appropriate method, and the threshold value established in accordance with Article 4 of Directive (EU) 2020/2184. The current leakage level averaged over three years is calculated across the extent of the affected and specified part of a water supply (distribution) network where the works are carried out, i.e. for the renewed water supply (distribution) network at district metered area(s) (DMAs) or pressure managed area(s) (PMAs); (b) a plan with goals and timelines for implementing metering at consumer level is issued by the water supplier and approved by the competent authorities. 4. The water supply system has received the necessary permits for water abstraction. Those abstractions are included in the register for water abstractions, in accordance with Directive 2000/60/EC. An assessment of the actual potential for abstraction has been performed, to ensure that the available groundwater resource is not exceeded by the long-term annual average rate of abstraction or that the surface water body from which water is abstracted is not prevented from achieving good ecological status and ecological potential and the abstractions do not deteriorate status or potential of those water bodies. The operation of the water supply system does not result in a deterioration of the status of the affected water bodies, nor does it prevent the water body from achieving good status and good ecological potential in accordance with Directive 2000/60/EC (3). The information in relation to the abstractions, register of abstractions, status of water bodies and pressures and impacts on these is included in a river basin management plan, or, for activities in third countries, in an equivalent water use and protection management plan. The activity does not involve construction of new supply systems or extensions of existing supply systems where they potentially affect one or more water bodies which are not in good status or potential for reasons related to quantity. | |
| Do no significant harm (‘DNSH’) | |
| (1) Climate change mitigation | N/A |
| (2) Climate change adaptation | The activity complies with the criteria set out in Appendix A to this Annex. |
| (4) Transition to a circular economy | N/A |
| (5) Pollution prevention and control | N/A |
| (6) Protection and restoration of biodiversity and ecosystems | The activity complies with the criteria set out in Appendix D to this Annex. |
| (1) Commission Implementing Decision (EU) 2022/679 of 19 January 2022 establishing a watch list of substances and compounds of concern for water intended for human consumption as provided for in Directive (EU) 2020/2184 of the European Parliament and of the Council (OJ L 124, 27.4.2022, p. 41). (2) The Infrastructure Leakage Index (ILI) is calculated as current annual real losses (CARL)/unavoidable annual real losses (UARL). The current annual real losses (CARL) represent the amount of water that is actually lost from the distribution network (i.e. not delivered to final users). The unavoidable annual real losses (UARL) take into consideration that there will always be some leakage in a water distribution network. The UARL is calculated based on factors such as the length of the network, the number of service connections and the pressure at which the network is operating. (3) For activities in third countries, in accordance with applicable national law or international standards which pursue equivalent objectives of good water status and good ecological potential, through equivalent procedural and substantive rules, i.e. a water use and protection management plan developed in consultation with relevant stakeholders which ensures that (1) the impact of the activities on the identified status or ecological potential of potentially affected water body or bodies is assessed; and (2) deterioration or prevention of good status/ecological potential is avoided. |
2.2. Urban waste water treatment
Construction, extension, upgrade, operation and renewal of urban waste water infrastructure including treatment plants, sewer networks, storm water management structures, connections to the waste water infrastructure, decentralised wastewater treatment facilities, including individual and other appropriate systems, and discharge structures for treated effluent. The activity may include innovative and advanced treatments, including the removal of micropollutants.
The economic activities in this category could be associated with several NACE codes, in particular E37.00 and F42.9, in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.
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