Text · Opinion parliamentary committee draft
On the proposal for a regulation of the European Parliament and of the Council establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities
Full title
On the proposal for a regulation of the European Parliament and of the Council establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities
Document ENVI-PA-784252 · COM(2025)0555 – C100165/2025 – 2025/0555(COD)
- Kind
- Opinion parliamentary committee draft ENVI-PA-784252
- Date
- 3 February 2026
- Committee
- Committee on the Environment, Climate and Food Safety
- Rapporteur
- Stine Bosse
- Dossier
- 2025-0555
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- Formats
- Official page PDF Word
- Subject matter
- RDT, INDU
- Reference
- COM(2025)0555 – C100165/2025 – 2025/0555(COD)
In short
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The Committee on the Environment, Climate and Food Safety proposes amendments to the proposed regulation establishing the European Competitiveness Fund (ECF), including the defence research and innovation programme. It adds environmental, climate and circularity conditions across the ECF's objectives, windows and award rules. The amendments raise the Fund's financial envelope to EUR 261 434 260 000 and increase allocations for general objectives, clean transition and decarbonisation, and biotechnology. They add new definitions of competitiveness and new objectives on phasing out fossil fuel imports and subsidies, circularity, water and resource efficiency, and protection of the environment and biodiversity. They require award conditions to protect Union interests, allow temporary and selective supply and content restrictions, and require large recipients to publish transformation plans for the clean transition. They keep the 'do no significant harm' principle applicable, including under accelerated procedures, and add sustainability and energy-efficiency requirements to defence and security support.
Position. The committee proposes amendments to the Commission's proposal, adding environmental, climate and circularity conditions, raising the budget, and strengthening sustainability requirements across the ECF's objectives and windows.
Key points
- Grants should be reserved for actions that lack viable revenue, such as essential public services, non-commercial research, social investments, environmental protection and health protection.
- The ECF should support decarbonisation with a technology-neutral approach and advance a sustainable, circular, energy-, water- and resource-efficient, renewables-based, climate-neutral economy, including the clean transition of SMEs.
- A new recital states the ECF should help reduce external dependencies on critical raw materials and fossil fuels and achieve a phase-out of fossil fuel imports and harmful subsidies.
- The Clean Transition and Decarbonisation window should finance projects, including LIFE activities, that protect and restore the environment, reduce pollution and halt biodiversity loss.
- Digital investment priorities should include sustainable, resource- and energy-efficient technologies, and the ECF should improve cyber security and digital resilience of critical energy infrastructure.
- The ECF should support biotechnology and the bioeconomy, including biobased materials, biomanufacturing, innovative food products and biochemicals, and the clean transition of agriculture, fisheries, aquaculture and forestry.
- A new definition of 'competitiveness' covers productivity, strategic autonomy and resilience against security, geopolitical, climate and environmental risks, consistent with the clean transition.
- The general objective is to strengthen, increase and safeguard the Union's competitiveness, adding sustainable and positive environmental impact, nature-based solutions and circularity.
- New objectives cover the shift to a sustainable, circular, climate-neutral economy, water infrastructure, environmental protection and mainstreaming of Union environmental and climate legislation.
- The financial envelope for 2028-2034 is set at EUR 261 434 260 000, with EUR 16 000 000 000 for general objectives, EUR 38 658 700 000 for clean transition and decarbonisation, and EUR 30 078 560 000 for biotechnology.
- Award procedures shall apply eligibility conditions to protect Union interests, may impose temporary and selective supply and content restrictions, and shall require large recipients to have publicly available transformation plans.
- The 'do no significant harm' principle may be verified later under accelerated procedures but shall not be waived, and defence and security support should promote energy efficiency and sustainability.
Who is affected
- Companies and SMEs in strategic sectors, which face new eligibility conditions and sustainability requirements for ECF support.
- Energy-intensive industries, which must publish transformation plans for the clean transition to receive support.
- The defence and security industry, which is encouraged to adopt low-carbon steel, circularity and energy efficiency.
- Farmers, fishers, aquaculture and forestry operators, whose sectors are targeted for clean transition support.
- The Commission, which must adopt work programmes with harmonised award criteria and consult stakeholders.
Figures and deadlines
- EUR 261 434 260 000: the ECF financial envelope for 1 January 2028 to 31 December 2034.
- EUR 16 000 000 000: allocation for activities contributing to the general objectives.
- EUR 38 658 700 000: allocation for clean transition and industrial decarbonisation objectives.
- EUR 30 078 560 000: allocation for biotechnology objectives.
- EUR 70 000 000 000: maximum budgetary guarantee under the ECF InvestEU Instrument, expected to mobilise around EUR 1 000 000 000 000.
- EUR 27 000 000 000: minimum Union support delivered through the ECF InvestEU Instrument.
- 5 calendar years: period after an action during which transfer restrictions apply to recipients.
- 25 % recycling target of strategic raw materials by 2030 under the Critical Raw Materials Act.
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The Committee on the Environment, Climate and Food Safety submits the following to the Committee on Industry, Research and Energy, as the committee responsible:
| Text proposed by the Commission | Amendment |
|---|---|
| (14) The ECF should use the whole toolbox of Union budget to unlock additional public and private investments, in particular from institutional investors throughout the whole investment journey. It should contribute to creating an “investment culture” by better leveraging public funds and the de-risking potential of the Union budget. It will maximise the added value of Union action and crowd-in private capital to secure a competitive innovation and industrial base, also by using innovative funding instruments including public-private co-investment with asymmetric risk returns. In this regard, the use of financial instruments that crowd in private investors should be the privileged option wherever possible. | (14) The ECF should use the whole toolbox of Union budget to unlock additional public and private investments, in particular from institutional investors throughout the whole investment journey. It should contribute to creating an “investment culture” by better leveraging public funds and the de-risking potential of the Union budget. It will maximise the added value of Union action and crowd-in private capital to secure a competitive innovation and industrial base, also by using innovative funding instruments including public-private co-investment with asymmetric risk returns. In this regard, the use of financial instruments that crowd in private investors should be the privileged option wherever possible. In particular, grants should be reserved only where this is strictly necessary and should be used to finance primarily actions that lack viable revenue. This concerns for example the provision of essential public services, protection of Union values, non-commercial research, social investments, environmental protection, health protection or other public interest objectives for which a commercial return is not envisaged. |
EU-funded schemes should support on a much larger scale the mobilisation of private investment into the strategic sectors of the economy to better leverage the resources of the EU budget.
| Text proposed by the Commission | Amendment |
|---|---|
| (22) The ECF should contribute to the objectives of decarbonising the European industry by promoting the development and deployment of clean technologies. The ECF will support the implementation of the Clean Industrial Deal, turning the clean transition and decarbonisation into a driver of growth and competitiveness for European industries. To this end, the ECF will support decarbonisation with a technology neutral approach, while recognising a contribution of different technologies to grid balancing and sector coupling, to align in particular with the investment needs of energy intensive sectors. Furthermore, it should advance the implementation of the Affordable Energy Action plan, ensuring secure, affordable, efficient and clean energy for all Europeans. The ECF will contribute to the shift towards a decarbonised, circular, resource-efficient, climate-neutral, water resilient and bio-based economy. It will also support sustainable, nature-positive and resilient industrial production in energy-intensive industries in the Union, in line with the objectives of the forthcoming proposal for the Industrial Decarbonisation Accelerator Act. It should also support the objectives of the Regulation (EU) 2024/172413 of the European Parliament and of the Council (Net-Zero Industry Act), boosting the manufacturing capacity of net-zero technologies and the ramp up of production capacities and investing in related infrastructure. To decarbonise the transport sector, amongst others the ECF will also invest in sustainable fuels, the related infrastructure and mobile assets as well as in the modernisation and digitisation of transport. | (22) The ECF should contribute to the objectives of decarbonising the European industry by promoting the development and deployment of clean technologies. The ECF will support the implementation of the Clean Industrial Deal, turning the clean transition and decarbonisation into the key driver of growth and competitiveness for European industries. To this end, the ECF will support decarbonisation with a technology neutral approach, while recognising a contribution of different technologies to grid balancing and sector coupling, to align in particular with the investment needs of energy intensive sectors. Furthermore, it should advance the implementation of the Affordable Energy Action plan, ensuring secure, affordable, efficient and clean energy for all Europeans. The ECF will contribute to the shift towards a sustainable, decarbonised, circular, energy-, water- and resource-efficient, renewables-based, climate-neutral, and bio-based economy, including the clean transition of SMEs. It will also support sustainable, nature-positive and resilient industrial production in energy-intensive industries in the Union as a key enabler of economic resilience and competitiveness, in line with the objectives of the forthcoming proposal for the Industrial Decarbonisation Accelerator Act. It should also support the objectives of the Regulation (EU) 2024/172413 of the European Parliament and of the Council (Net-Zero Industry Act), boosting the manufacturing capacity of net-zero technologies and the ramp up of production capacities and investing in related infrastructure. To decarbonise the transport sector, amongst others the ECF will also invest in sustainable fuels, in particular renewable fuels of non-biological origin, the related infrastructure and mobile assets as well as in the modernisation and digitisation of transport. Funding should therefore enable significant investments to reduce environmental impacts, restore nature and biodiversity, industrial and transport electrification and the resilience of our energy infrastructure, mobility and industry, including by lowering systemic risks, and reinforcing the sustainability of European value chains. |
| 13 Regulation (EU) 2024/1735 of the European Parliament and of the Council of 13 June 2024 on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem and amending Regulation (EU) 2018/1724 (OJ L, 2024/1735, 28.6.2024, ELI: http://data.europa.eu/eli/reg/2024/1735/oj). | 13 Regulation (EU) 2024/1735 of the European Parliament and of the Council of 13 June 2024 on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem and amending Regulation (EU) 2018/1724 (OJ L, 2024/1735, 28.6.2024, ELI: http://data.europa.eu/eli/reg/2024/1735/oj). |
Investments in electrification, sustainable value chains, and risk reduction should be linked, so that the ECF has the potential to deliver on the EU’s industrial ambitions, such as the Clean Industrial Deal and the Net-Zero Industry Act. Climate ambition and economic security don’t have to compete.
| Text proposed by the Commission | Amendment |
|---|---|
| (22a) The ECF should contribute to reducing the Union’s external strategic dependencies of critical raw materials and fossil fuels and achieve a phase-out of fossil fuel imports and harmful subsidies. This can be achieved by shifting towards a sustainable and circular economy, based on climate neutrality with efficient use of resources and materials, including raw materials and renewable energy, across its value chains. |
The EU must reduce its dependencies on unsustainable fuels and energy imports. The ECF should be considered the tool to achieve both a green transition and economic security, while at the same time harbouring the EU’s climate goals and emission reduction targets.
| Text proposed by the Commission | Amendment |
|---|---|
| (23) The ECF will also contribute to protect, restore and improve the quality of the environment, including water, coast, sea and soil, to reduce pollution, to halt and reverse biodiversity loss and tackle the degradation of terrestrial and marine ecosystems, while enhancing climate and water resilience. The ECF Clean Transition and Decarbonisation window should finance projects that contribute to these objectives. | (23) The ECF will also contribute to protect, restore and improve the quality of the environment, including water, coast, sea and soil, to reduce pollution, to halt and reverse biodiversity loss and tackle the degradation of terrestrial and marine ecosystems, while enhancing climate and water resilience. The ECF Clean Transition and Decarbonisation window should finance projects, including LIFE activities, that contribute to these objectives. |
| Text proposed by the Commission | Amendment |
|---|---|
| (24) Projects and activities under the Clean Transition and Industrial Decarbonisation window shall promote energy efficiency, integrated renewable energy, new energies, energy renovations, and innovative heating and cooling solutions. | (24) Projects and activities under the Clean Transition and Industrial Decarbonisation window shall promote energy efficiency, renewable energy, including in an integrated manner, new energies, energy renovations, and innovative heating and cooling solutions. |
There is no clear legal definition of integrated renewable energy. The integrated qualifier appears to limit the scope of eligible projects.
| Text proposed by the Commission | Amendment |
|---|---|
| (26) The Union can become a global leader in digital technologies, such as artificial intelligence, digital identity, semiconductors, robotics, quantum technologies, space technologies and others by harnessing the untapped potential of our researchers and industries. The ECF should promote the development and deployment of digital solutions and infrastructures and capacities across the Union for the benefit of the European society and economy. | (26) The Union can become a global leader in digital technologies, such as artificial intelligence, digital identity, semiconductors, robotics, quantum technologies, space technologies and others by harnessing the untapped potential of our researchers and industries. The ECF should promote the development and deployment of digital solutions and infrastructures and capacities across the Union for the benefit of the European society and economy, including, where possible, sustainable technologies with environmental, resource- or energy-efficiency benefits, which hold significant potential for strengthening the Union’s long-term competitiveness, autonomy and resilience. |
Operationalizes the Draghi Report’s call for a "twin transition" (green and digital) and resilient, future-proofed value chains. The Union’s technological advancements can directly contribute to climate neutrality and reduces dependencies at the same time.
| Text proposed by the Commission | Amendment |
|---|---|
| (26a) Achieving sustainable and long-term technological resilience and leadership requires that the future digital and AI sector is developed and deployed in a sustainable, resource- and energy-efficient manner. |
Operationalizes the Draghi Report’s call for a "twin transition" (green and digital) and resilient, future-proofed value chains. The Union’s technological advancements can directly contribute to climate neutrality and reduces dependencies at the same time.
| Text proposed by the Commission | Amendment |
|---|---|
| (28) While Europe’s digital transformation is accelerating, the many critical dependencies on non-Union suppliers (from raw materials, advanced semiconductors, and AI chips to systems, infrastructures and services) require European alternatives that anchor the digital transformation in Europe’s economy, with our shared values as the essential differentiator, including by leveraging the power of open-source technologies. Support for digital leadership is driven by regulatory and non-regulatory Union policy initiatives in the digital area such as the AI Act, AI Continent and AI Action Plan, the Apply AI Strategy, the Cloud and AI Development Act, the Data Union Strategy, the Digital Networks Act, the EU Quantum Strategy and the Quantum Act, the Cyber-Solidarity Act, the Cyber-Resilience Act and the Cybersecurity Act, the White Paper for European Defence-Readiness 2030, and the revision of the EU Chips Act, and by future policy initiatives. The digital areas to invest in include a number of critical frontier technologies such as Artificial Intelligence (AI) and AI-powered digital twins, robotics, semiconductors, autonomous or quantum technologies. They also include key infrastructures such as digital identity, cloud, high performance and quantum computing, communication, advanced underwater observation infrastructure, and sensing infrastructures, digital connectivity networks, including submarine cables, as well as cybersecurity, defence or space capacities. Fostering their uptake across private and public sectors makes our entire economy more competitive, secure, sovereign, and sustainable, fortifying societal resilience and preparedness. Moreover, interoperable digital technologies are driving the modernisation of the public sector, serving for the integration of the single market, which is our most valuable stepping stone for European digital start-ups to become globally competitive. Technological progress and innovation in every economic sector, and thus their productivity and competitiveness, are essentially driven by the integration of sector-specific digital developments and use of digital solutions that should be supported across the ECF. | (28) While Europe’s digital transformation is accelerating, the many critical dependencies on non-Union suppliers (from raw materials, advanced semiconductors, and AI chips to systems, infrastructures and services) require European alternatives that anchor the digital transformation in Europe’s economy, with our shared values as the essential differentiator, including by leveraging the power of open-source technologies. Support for digital leadership is driven by regulatory and non-regulatory Union policy initiatives in the digital area such as the AI Act, AI Continent and AI Action Plan, the Apply AI Strategy, the Cloud and AI Development Act, the Data Union Strategy, the Digital Networks Act, the EU Quantum Strategy and the Quantum Act, the Cyber-Solidarity Act, the Cyber-Resilience Act and the Cybersecurity Act, the White Paper for European Defence-Readiness 2030, and the revision of the EU Chips Act, and by future policy initiatives. The digital areas to invest in include a number of critical frontier technologies such as Artificial Intelligence (AI) and AI-powered digital twins, robotics, semiconductors, autonomous or quantum technologies. They also include key infrastructures such as digital identity, cloud, high performance and quantum computing, communication, advanced underwater observation infrastructure, and sensing infrastructures, digital connectivity networks, including submarine cables, critical energy infrastructures, as well as cybersecurity, defence or space capacities. Fostering their uptake across private and public sectors makes our entire economy more competitive, secure, sovereign, and sustainable, fortifying societal resilience and preparedness. Moreover, interoperable digital technologies are driving the modernisation of the public sector, serving for the integration of the single market, which is our most valuable stepping stone for European digital start-ups to become globally competitive. Technological progress and innovation in every economic sector, and thus their productivity and competitiveness, are essentially driven by the integration of sector-specific digital developments and use of digital solutions that should be supported across the ECF. |
By integrating these assets into the digital investment priorities of the ECF, the Union ensures that its technological leadership directly supports the stability and resilience of its clean energy transition, including working towards climate neutrality by 2050, and legally binding interim targets to reduce net greenhouse gas emissions by at least 55% by 2030.
| Text proposed by the Commission | Amendment |
|---|---|
| (30a) In light of the volatile geostrategic environment, where state-sponsored and other malicious actors increasingly target and probe Europe’s energy assets, ensuring EU infrastructure maintains a high level of security and preparedness is crucial. The ECF should contribute to further improving cyber security and digital resilience of critical energy infrastructure, which is essential to safeguarding the Unions autonomy, competitiveness and climate ambition. |
The geostrategic reality of increasing threats to essential services necessitates that the ECF contributes to improving cyber security and digital resilience of critical clean energy infrastructure. Protecting these assets is a prerequisite for the success of EU climate and industrial policy as it works to increase its share of clean energy, the resilience of the Union’s climate-critical infrastructure, and delivering on the Union's 2030, 2040 and 2050 climate targets.
| Text proposed by the Commission | Amendment |
|---|---|
| (33) The bioeconomy is a growth engine that allows Europe to make a success of the green transition, strengthen its competitiveness and strategic autonomy. Although Europe’s bioeconomy is already reshaping industrial ecosystems, reinforcing strategic autonomy, and unlocking value across strategic sectors, it is crucial to strengthen investments, initiatives and strategies at Union and Member State level to bring it from niche to norm across Union sectors and regions to realise its potential, and in particular for key industries. There is a need to foster the competitiveness, sustainability, resilience and fairness of the agricultural, fisheries, aquaculture and forestry sectors, of rural and coastal areas and to contribute to long-term food security in the Union. | (33) The bioeconomy is a growth engine that allows Europe to make a success of the green transition, strengthen its competitiveness and strategic autonomy. Although Europe’s bioeconomy is already reshaping industrial ecosystems, reinforcing strategic autonomy, and unlocking value across strategic sectors, it is crucial to strengthen investments, initiatives and strategies at Union and Member State level to bring it from niche to norm across Union sectors and regions to realise its potential, and in particular for key industries. There is a need to foster the competitiveness, sustainability, clean transition, resilience and fairness of the agricultural, fisheries, aquaculture and forestry sectors, of rural and coastal areas in order to contribute to long-term food security in the Union. |
The explicit inclusion of the "clean transition" alongside the agricultural, fisheries, aquaculture, and forestry sectors ensures that the bioeconomy acts as a driver for both competitiveness and sustainability, with CO2 emissions-reducing technologies helping the EU deliver on its 2030 and 2050 climate targets. This is in line with the need to protect natural resources and biodiversity while contributing to long-term food security in the Union.
| Text proposed by the Commission | Amendment |
|---|---|
| (33a) Biotechnology innovation is among the most promising technologies of this century with the potential to revolutionise several areas of the economy, notably by enabling resource-efficient and environmentally sustainable solutions across health, agri-food, industrial, environmental and marine biotechnology. Strengthening emerging value chains and providing access to finance and tailored support for SMEs, startups, scaleups and innovators is essential to empower biotechnology to deliver solutions that contribute to the Unions resilience, sustainability and competitiveness. |
Biotechnology innovation is one of the most promising industrial frontiers of the century, offering the potential to revolutionise the EU economy by enabling resource-efficient, locally produced, and environmentally sustainable solutions across a diverse range of sectors. Ensuring a wide biotech definition within the ECF will be key to maintaining global competitiveness while driving sustainable innovation and sustainable growth, supporting the Union’s environmental and industrial ambitions.
| Text proposed by the Commission | Amendment |
|---|---|
| (35) Fostering the resilience of the European industry is essential for the Union to remain competitive even in times of crisis and is essential for Union’s security. To ensure its resilience, the ECF should support actions aimed to reduce dependencies and diversify supply in strategic sectors such as the raw materials sector, thus reinforcing the Union capacities for a secure supply of sustainable critical raw materials along the whole value chain in line with the objectives of the Regulation (EU) 2024/1252 of the European Parliament and of the Council (Critical Raw Materials Act)15 and the chemicals industry, underpinning almost all industry sectors. Pursuing an ambitious and mutually beneficial trade agenda is essential for the Union’s ability to diversify its supply chains and effectively reduce dependencies. | (35) Fostering the resilience of the European industry is essential for the Union to remain competitive even in times of crisis and is essential for Union’s security. To ensure its resilience, the ECF should support actions aimed to reduce dependencies and diversify supply in strategic sectors such as the raw materials sector, thus reinforcing the Union capacities for a secure supply of sustainable critical raw materials along the whole value chain in line with the objectives of the Regulation (EU) 2024/1252 of the European Parliament and of the Council (Critical Raw Materials Act)15 and the chemicals industry, underpinning almost all industry sectors, including innovation, scaling and deployment of advanced waste-processing, recycling and recovery techniques. Pursuing an ambitious and mutually beneficial trade agenda is essential for the Union’s ability to diversify its supply chains and effectively reduce dependencies. |
| 15 Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020 (Text with EEA relevance), OJ L, 2024/1252, 3.5.2024, ELI: http://data.europa.eu/eli/reg/2024/1252/oj | 15 Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020 (Text with EEA relevance), OJ L, 2024/1252, 3.5.2024, ELI: http://data.europa.eu/eli/reg/2024/1252/oj |
Waste-processing techniques hold significant potential in reducing supply-chain dependencies, strengthening Europe's resource resilience, in delivering on the 25 % recycling target of strategic raw materials by 2030 under the Critical Raw Materials Act, while also contributing to the Union's 2030, 2040 and 2050 climate targets.
| Text proposed by the Commission | Amendment |
|---|---|
| (36a) The strategic autonomy and resilience of the Union’s security and defence depend on a strong and future-proofed sector capable of reducing its exposure to external energy, material and supply-chain dependencies. Support to the defence industry should therefore, where appropriate, promote the gradual reduction of emissions and resource intensity across defence value chains. This can be achieved by encouraging the uptake of low-carbon steel and circular end-of-life material reuse for more sustainable and independent production processes, which will foster innovation, industrial readiness and economic resilience at the same time. |
| Text proposed by the Commission | Amendment |
|---|---|
| (39) The ECF should also support the policy goals of a safer, more secure Europe that is better prepared against security threats, in particular by enhancing European industry competitiveness and strategic autonomy, including maritime and customs security, critical energy and transport infrastructure and civil preparedness. To address increasing security and hybrid threats like terrorism, organised crime, cybercrime, climate disasters and attacks on critical infrastructure, the ECF should support Europe’s efforts to increase its threat awareness, build resilience and boost security investments, and promote preparedness by design across relevant sectors. | (39) The ECF should also support the policy goals of a safer, more secure Europe that is better prepared against security threats, in particular by enhancing European industry competitiveness and strategic autonomy, including maritime and customs security, critical energy and transport infrastructure and civil preparedness. To address increasing security and hybrid threats like terrorism, organised crime, cybercrime, biological warfare, climate change, resource and biodiversity depletion, environmental and climate change related disasters and attacks on critical infrastructure, the ECF should support Europe’s efforts to increase its threat awareness, build resilience and boost security investments, and promote preparedness, mitigation and adaptation by design across relevant sectors. |
Extreme weather events and climate change related disasters are already costing Europe around EUR 40–50 bn a year, with more than €162 bn in losses over the past three years. These costs and events are rising and place increasing pressure on public budgets and citizens. Embedding adaptation and mitigation measures within the scope will support future-proofing the economy, while underinvestment would lead to significantly higher public and private costs in the future, as highlighted by the EEA.
| Text proposed by the Commission | Amendment |
|---|---|
| (3a) ‘Competitiveness’ means the Union’s capacity to raise its productivity, to bolster its strategic autonomy and independence, and to ensure the resilience of its economy against security, geopolitical, climate and environmental risks or any other systemic shocks, in a manner that is consistent with the clean transition; |
The ECF lacks a clear definition of the term ‘competitiveness’. To ensure coherent and consistent application of the term throughout the text, in line the objectives as laid out in Art. 3, this definition highlights the shift towards a resilient, sustainable and decarbonised economy as a competitive opportunity for Europe. It follows the Commissions understanding that the Green Deal is a central enabler of EU’s competitiveness, and Draghi's call for a coherent plan to implement the Unions climate targets, in which case decarbonisation will give the Union a major competitive edge.
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The general objective of the ECF is to increase European competitiveness, notably in strategic sectors and technologies along the investment journey by: | 1. The general objective of the ECF is to strengthen, increase and safeguard the Union's competitiveness, notably in strategic sectors and technologies along the investment journey by: |
Highlighting existing Union competitiveness, which should be strengthened and safeguarded, alongside the ambition of increasing EU competitiveness further.
| Text proposed by the Commission | Amendment |
|---|---|
| (a) delivering technological, economic and environmental impact from the Union's investments, including by developing disruptive and incremental innovation, and emerging, cutting-edge, dual-use, and strategic technologies with significant economic potential, including by developing and accelerating their manufacturing and industrial deployment; | (a) delivering technological, economic, sustainable and positive environmental impact from the Union's investments, including by developing disruptive and incremental innovation, and emerging, cutting-edge, dual-use, and strategic sustainable technologies with significant economic potential, including through nature-based solutions, and inter alia by developing and accelerating the manufacturing of these technologies and industrial take-up and deployment; |
Nature-based solutions explicitly added to the scope of eligible investments given the significant potential to increase the European competitiveness in a sustainable and resilient manner.
| Text proposed by the Commission | Amendment |
|---|---|
| (b) reducing or preventing the Union’s strategic dependencies, and reinforcing the Union’s resilience, and economic security, including through diversifying sources and markets, support to ramp up of European production of strategic technologies and creating, strengthening and protecting critical Union value chains and infrastructure; | (b) reducing or preventing the Union’s strategic dependencies, contributing to the phasing-out of fossil fuel imports and subsidies and reinforcing the Union’s resilience, and economic security, including through diversifying sources and markets, improving and facilitating circularity and resource efficiency, support to ramping up the Union's production of strategic technologies and creating, strengthening and protecting critical Union value chains and infrastructure; |
The reduction of fossil fuel dependency, and circularity, are key enablers of strategic autonomy and security and should be added to the general ECF objectives.
| Text proposed by the Commission | Amendment |
|---|---|
| (ba) contributing to the shift towards a sustainable, circular, energy-, water- and resource-efficient, renewable-based, climate-neutral and resilient economy. |
| Text proposed by the Commission | Amendment |
|---|---|
| (c) addressing market failures and suboptimal investment situations, including by crowding in private capital and institutional investors as well as public funding in a proportionate manner, while avoiding duplication and without crowding out private investors; serving as an integrated platform for delivering targeted financial support to companies across all development phases start-ups, scale-ups, and strategic companies, including those actively pursuing manufacturing, industrial and market deployment; | (c) addressing market failures and suboptimal investment situations, including by crowding in private capital and institutional investors as well as public funding in a proportionate and responsible manner, while avoiding duplication and without crowding out private investors; serving as an integrated platform for delivering targeted financial support to companies across all development phases start-ups, scale-ups, and strategic companies, including those actively pursuing manufacturing, industrial and market deployment, by increasing Union-based demand and market uptake for sustainable clean technologies and solutions; |
| Text proposed by the Commission | Amendment |
|---|---|
| (e) aligning research, innovation and industrial policy support to translate Union’s research excellence into Union industrial strength on global markets and securing the future of manufacturing in Europe; | (e) aligning research, innovation and industrial policy support to translate Union’s research excellence into Union industrial strength on global markets and securing the future of manufacturing in Europe, while fostering sustainability and innovation; |
The ECF has the potential to deliver on the EU’s industrial ambitions, such as the Clean Industrial Deal and the Net-Zero Industry Act.
| Text proposed by the Commission | Amendment |
|---|---|
| (f) developing Union cross-border and critical infrastructure key to the Union’s competitiveness, and strategic independence in particular energy and transport, digital and security, defence and space infrastructure as well as social infrastructure and related data and services; | (f) developing and significantly strengthening Union cross-border and critical infrastructure key to growing and bolstering the Union’s competitiveness, and strategic independence in particular the infrastructures for clean energy and transport, digital and security, defence and space infrastructure as well as water- and social infrastructures and related accessibility, data and services, supporting and accelerating electrification and grid investments; |
A reference to water infrastructure as a critical infrastructure essential to competitiveness and to address the significant investment gap in water infrastructure of approximately EUR 23 bn annually, as recently highlighted in the Water Resilience Strategy.
| Text proposed by the Commission | Amendment |
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| (g) strengthening the competitiveness of SMEs and small mid-cap companies established in the Union and their ability to grow and scale up, in particular by improving their access to finance, including private investment, micro-finance and support to social enterprises as facilitating access to Union funding, through faster, simplified and harmonised procedures; reducing and ensuring a proportionate reporting burden; | (g) strengthening the competitiveness of SMEs and small mid-cap companies established in the Union and their ability to grow and scale up, in particular by improving their access to finance, including private investment, micro-finance and support to social enterprises as facilitating access to Union funding, through faster, simplified and harmonised procedures; reducing and ensuring a proportionate reporting burden, while at the same time incentivising sustainable practices and resource efficiency as a key enabler of economic resilience and competitiveness of SMEs; |
SMEs are central to the EU’s sustainable competitiveness and need targeted support to ensure their participation in the green transition.
| Text proposed by the Commission | Amendment |
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| (h) addressing shortages of skills critical to all kinds of quality jobs in strategic sectors for EU competitiveness, through both horizontal and specific skills investment, contributing to the availability of skills in future emerging technologies, and by pursuing to accompany investments with skills investment and indicate when it is included; | (h) addressing shortages of skills critical to all kinds of quality jobs in strategic sectors for EU competitiveness, through both horizontal and specific skills investment, contributing to the availability of skills in future emerging and sustainable technologies, and by pursuing to accompany investments with skills investment and indicate when it is included; |
| Text proposed by the Commission | Amendment |
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| (ia) Contributing to the development of technology and measures that protect, restore and improve the quality of the environment, including water sources and infrastructures, coastal regions, sea and soil, to reduce pollution, to halt and reverse biodiversity loss and tackle the degradation of terrestrial and marine ecosystems, while enhancing climate and water resilience; |
The EU’s leadership in biodiversity standards can enhance the competitiveness of European exports by aligning with global sustainability expectations. At the same time, it can serve to achieve the EU’s international obligations and commitments under conventions such as the UNCBD and the Kungming-Montréal Biodiversity Framework.
| Text proposed by the Commission | Amendment |
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| (j) supporting actions for the development, implementation, and monitoring of relevant Union legislation and policy; | (j) supporting actions for the development, implementation, and monitoring of relevant Union legislation and policy, including the mainstreaming of the Union’s environmental, climate or relevant energy legislation and policies in view of achieving climate neutrality by 2050; |
The ECF has the potential to deliver on the EU’s industrial ambitions, such as the Clean Industrial Deal and the Net-Zero Industry Act. Climate ambition and economic security does not have to compete.
| Text proposed by the Commission | Amendment |
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| (a) For support to Clean Transition and Industrial Decarbonisation, the specific objectives of support to decarbonisation of European industry, including SMEs and energy intensive industries, clean tech manufacturing and its supply chains, and contributing to the shift towards a sustainable, circular, energy-, water- and resource-efficient, climate-neutral and resilient economy. This includes the uptake by industries of decarbonisation technologies and other solutions for their industrial processes and activities, as well as the decarbonisation of energy supply, promotion of energy efficiency, the uptake of renewable and clean energy solutions, the development of energy system flexibility, the uptake of lead markets for clean products , the development, resilience, integration and digitalisation of the energy and transport infrastructures and systems, boosting smart mobility and sustainable alternative fuels, as well as boosting the sustainable blue economy, the development of innovative nature-based business models and demand side solutions for clean and decarbonised buildings, transport and industry, and production ramp up contributing to Europe’s strategic autonomy. | (a) For support to Clean Transition and Industrial decarbonisation: |
| (1) the specific objectives of support the transition and decarbonisation of European industry, including SMEs and energy communities, most notably in energy intensive industries and hard to abate sectors, and to scale up clean-tech manufacturing and its supply chains, including in and by cross-sector deployment, and contributing to the shift towards a sustainable, circular, energy-, water- and resource-efficient, renewable-based, climate-neutral and resilient economy; | |
| (2) the uptake of decarbonisation technologies, nature-based solutions and other cost-effective solutions for industrial processes and activities, while contributing to Europe’s strategic autonomy; | |
| (3) accelerating the decarbonisation and resilience of energy and transport systems by supporting the electrification and decarbonisation of energy supply, the promotion of energy efficiency, the uptake of renewable and clean energy solutions, the development of energy system flexibility, and the development, integration, resilience and digitalisation of energy and transport infrastructures and systems, including smart and clean mobility and sustainable alternative fuels; | |
| (4) the creation and uptake of lead markets for clean products and demand for clean solutions to boost demand for clean technologies, supporting sustainable and decarbonised buildings, transport and industry, including production ramp-up, the development of innovative nature-based business models, a sustainable blue economy, and demand-side solutions; | |
| (5) contributing to the protection, restoration and improvement of the quality of the environment, including air, water, coast and soil, to reduce pollution, to halt and reverse biodiversity loss and tackle the degradation of terrestrial and marine ecosystems. |
The LIFE Programme’s dissolution and streamlining of its activities in the ECF with objectives to deliver on the EU’s industrial ambition in the Clean Industrial Deal and the Net-Zero Industry Act. Subparagraph 5 added to align wording with recital 23 calling for support to the mentioned activities within the clean transition and industrial decarbonisation window.
| Text proposed by the Commission | Amendment |
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| (2) For support to biotechnology, the specific objectives of contributing to the development and scalable production and uptake, availability and accessibility of medicinal products, medical devices, diagnostics and other medical countermeasures. | (2) For support to biotechnology, the specific objectives of contributing to the development and scalable production and uptake, availability and accessibility of medicinal products, medical devices, diagnostics and other medical countermeasures and biobased materials and products, biomanufacturing, innovative food products and biochemicals supporting the Union’s environmental and climate objectives and the transition to a resource-efficient, highly innovative, resilient and competitive economy |
Aligning wording with the wider definition in article 37, and ensuring the biotech definition encompasses health, agri-food, industrial, environmental and marine biotech in recognition of the cross-sectoral potential of the sector, as well as ensuring equal opportunities for funding for all relevant solutions, including biopesticides, biostimulants, new genomic techniques (NGTs), biobased plastics and materials, biobased colours and flavours, proteins, and fermented products.
| Text proposed by the Commission | Amendment |
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| (3) For support to bioeconomy policy, the specific objectives of fostering an innovative and competitive bioeconomy in the Union, including in the areas of biobased materials and products, biomanufacturing, innovative food products and biochemicals; including support to SMEs, start ups and scaleups, contribute to the development and scalable production and uptake, availability and accessibility of bioeconomy innovations, including those based on cross-sectoral cutting-edge biotechnology; strengthen supply chains and increase their resilience. | (3) For support to bioeconomy policy, the specific objectives of fostering an innovative and competitive bioeconomy in the Union, including in the areas of biobased materials and products, biomanufacturing, innovative food products and biochemicals; including support to SMEs, start ups and scaleups, contribute to the development and scalable production and uptake, availability and accessibility of sustainable bioeconomy innovations, including those based on cross-sectoral cutting-edge biotechnology and nature- and bio-based solutions; strengthen supply chains and increase their resilience and circularity. |
| Text proposed by the Commission | Amendment |
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| (4) For support to the agriculture and food security, the specific objective of fostering the competitiveness, sustainability, and resilience of the agriculture, fisheries and aquaculture, forestry and rural and coastal areas and their role in the transition to a climate-neutral climate-resilient, water-smart, nature-positive economy and the protection of natural resources biodiversity while contributing to long term food security in the Union. | (4) For support to the agriculture and food security, the specific objective of fostering the competitiveness, sustainability, resilience and clean transition of agriculture, fisheries and aquaculture, forestry and rural and coastal areas and enhancing their role in the transition to a climate-neutral climate-resilient, water-smart, nature-positive economy and the protection and restoration of nature, natural resources and biodiversity in order to contribute to long term food security in the Union. |
By funding the clean transition of these primary sectors, the EU will accelerate the shift toward nature-positive, circular and climate-resilient production models, which are essential for long-term food security and for achieving the Union’s long-term environmental ambitions and climate targets.
| Text proposed by the Commission | Amendment |
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| (c) For support to Digital Leadership policy, the specific objectives of fostering innovation and competitiveness of digital sector for a competitive and secure Union and bringing its benefits to citizens and society, public administrations and businesses across the Union. This shall include, but not be limited to, supporting the entire digital value- and supply-chains and activities including support to start-ups, scale-ups and SMEs, in particular along the following dimensions: Achieving leadership in digital and AI technologies, including through technology transfer and innovation, and through cutting-edge infrastructures such as AI-powered digital twins; Achieving technological sovereignty by building resilient digital ecosystems and ensuring a high-level of cybersecurity in the Union; Enabling the power of digital for businesses and citizens by deploying advanced digital applications and services, infrastructures, capacities and capabilities and by reinforcing interoperability across the Union, Including support to digitalisation of companies, including SMEs, small mid-cap companies, start-ups and scale-ups; Supporting the digital transformation and interoperability of public and private sectors through the rapid uptake of AI, the wallet technologies, such as EU Digital Identity Wallets and trust services established pursuant to Regulation (EU) No 910/2014 and the forthcoming European Business Wallets and other digital innovative solutions. Support to cultural and creative industries, complementing the AgoraEU programme. | (c) For support to Digital Leadership policy, the specific objectives of fostering innovation and competitiveness of digital sector for a competitive and secure Union and bringing its benefits to citizens and society, public administrations and businesses across the Union. This shall include, but not be limited to, supporting the entire digital value- and supply-chains and activities including support to start-ups, scale-ups and SMEs, in particular along the following dimensions: Achieving leadership in digital and AI technologies, including through the development and deployment of resource-efficient and energy-autonomous digital and AI infrastructures, where feasibly powered by low-carbon energy sources, designed to minimise lifecycle emissions and to avoid disproportionate impacts on water resources and the environment, through technology transfer, innovation and uptake, and through cutting-edge infrastructures such as AI-powered digital twins; Achieving technological sovereignty by building resilient, sustainable and energy-efficient digital ecosystems and ensuring a high-level of cybersecurity in the Union, including by further improving the cyber security and digital resilience of critical energy infrastructure; Enabling the power of digital for businesses and citizens by deploying advanced digital applications and services, infrastructures, capacities and capabilities and by reinforcing interoperability across the Union, Including support to digitalisation of companies, including SMEs, small mid-cap companies, start-ups and scale-ups; Supporting the digital transformation and interoperability of public and private sectors through the rapid uptake of AI, the wallet technologies, such as EU Digital Identity Wallets and trust services established pursuant to Regulation (EU) No 910/2014 and the forthcoming European Business Wallets and other digital innovative solutions. Support to cultural and creative industries, complementing the AgoraEU programme. |
By integrating these assets into the digital investment priorities of the ECF, the Union ensures that its technological leadership directly supports the stability and resilience of its clean energy transition, including working towards climate neutrality by 2050, and legally binding interim targets to reduce net greenhouse gas emissions by at least 55% by 2030 and 90% by 2040.
| Text proposed by the Commission | Amendment |
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| (1) For support to resilience of supply chains, the specific objectives of reinforcing Europe’s resilience by strengthening the Union capacity in exploration, extraction, processing and recycling of raw materials and diversifying supply sources and markets, and improving the timely availability of such products, including through the reduction of their delivery lead time, reservation of manufacturing slots or stockpiling of products, intermediate products or raw materials. | (1) For support to resilience of supply chains, the specific objectives of reinforcing Europe’s resilience by strengthening the Union capacity in exploration, extraction, processing and recycling of raw materials and diversifying supply sources and markets, including innovation, scale-up and deployment of advanced waste-processing, recycling and recovery techniques, and improving the timely availability of such products, including through the reduction of their delivery lead time, reservation of manufacturing slots or stockpiling of products, intermediate products or raw materials. |
Technologies targeting critical raw materials and semiconductor reuse offer huge potential in strengthening resource resilience, strategic autonomy, reducing strategic supply-chain dependencies and in delivering on the 25 % recycling target of strategic raw materials by 2030 under the Critical Raw Materials Act, as well as contributing to Union's 2030, 2040 and 2050 climate targets.
| Text proposed by the Commission | Amendment |
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| (2) For support to EU defence industry. the specific objectives of promoting defence industrial readiness of the Union and its Member States through the strengthening of the competitiveness, responsiveness and ability of the European Defence Technological and Industrial Base (EDTIB), including support to start-ups, scale-ups and SMEs, fostering an innovative EU defence ecosystem; Collaborative research and development of defence products and technologies, including disruptive technologies for defence; Cooperation throughout the life-cycle of defence equipment, in particular in defence procurement and for the development of European defence projects of common interest; Adjustment of industry to structural changes. | (2) For support to EU defence industry. the specific objectives of promoting defence industrial readiness of the Union and its Member States through the strengthening of the competitiveness, resilience, responsiveness and ability of the European Defence Technological and Industrial Base (EDTIB), including support to start-ups, scale-ups and SMEs, fostering an innovative and energy-efficient EU defence ecosystem, including through the greening of defence investments through initiatives such as the use and deployment of low carbon-steel and other low-emitting materials and production processes; Collaborative research and development of defence products and technologies, including disruptive technologies for defence; Cooperation throughout the life-cycle of defence equipment, in particular in defence procurement and for the development of European defence projects of common interest; Adjustment of industry to structural changes and towards the adoption and scaling-up of circular and low carbon technologies. |
By embedding low-carbon materials, circularity, and energy efficiency, the ECF should contribute to future-proofing the EU’s defence sector. Also reducing strategic dependencies and leveraging innovation for competitiveness, in line with the Draghi Report
| Text proposed by the Commission | Amendment |
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| (4) For support to civil industrial security, the specific objectives of strengthening the competitiveness and responsiveness of the European civil security industry, in the application areas of security, resilience of critical and dual-use infrastructures, technologies including critical energy infrastructure, and solutions for the control of goods and persons at borders, the protection of borders, maritime security, customs security and civil preparedness against security threats, as well as reinforcing the capabilities of the relevant end-users in the civil security sector. | (4) For support to civil industrial security, the specific objectives of strengthening the competitiveness and responsiveness of the European civil security industry, in the application areas of security, resilience of critical and dual-use infrastructures, technologies including critical energy infrastructure and solutions for the control of goods and persons at borders, the protection of borders, maritime security, customs security and civil preparedness, adaptation and mitigation against security threats, whether natural or human made, including where caused by climate change, as well as reinforcing the capabilities of the relevant end-users in the civil security sector. |
Aligning with art. 80, and to add adaptation and mitigation within the scope of civil protection. Embedding adaptation and mitigation measures explicitly within the scope would help future-proofing the economy while under investment would lead to significantly higher public and private cost in the future, as recently highlighted by the EEA.
| Text proposed by the Commission | Amendment |
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| 1. The indicative financial envelope for the implementation of the ECF for the period from 1 January 2028 to 31 December 2034 shall be EUR 234 300 000 000 in current prices. | 1. The minimum financial envelope for the implementation of the ECF for the period from 1 January 2028 to 31 December 2034 shall be EUR 261 434 260 000 in current prices. |
| Text proposed by the Commission | Amendment |
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| (a) EUR 11 000 000 000 for activities contributing to the general objectives referred to Article 3, as implemented in particular through cross-cutting activities such as non-thematic support of the ECF InvestEU Instrument, referred to in Chapter II, Section 2; Project Advisory, SME Collaboration, skills development and Access to Funding, referred to in Chapter III; | (a) EUR 16 000 000 000 for activities contributing to the general objectives referred to Article 3, as implemented in particular through cross-cutting activities such as non-thematic support of the ECF InvestEU Instrument, referred to in Chapter II, Section 2; Project Advisory, SME Collaboration, skills development and Access to Funding, referred to in Chapter III; |
The InvestEU guarantee is, as underlined by a 14.2x multiplier effect, an inherently efficient way of leveraging a limited Union budget. The Omnibus II top-up and the Draghi report highlight the success of the programme. The proposed guarantee is simply inadequate to meet the significant demand and investment needs in strategic sectors. Ensuring sufficient public and private investment will be critical in decarbonising industry, advancing sustainable and circular business models, clean tech manufacturing and turning the clean transition into Europe's competitive advantage.
| Text proposed by the Commission | Amendment |
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| (b) EUR 26 210 000 000 for the specific objectives referred to in Article 3(2), point (a); | (b) EUR 38 658 700 000 for the specific objectives referred to in Article 3(2), point (a); |
If the EU climate targets is matched by an ambitious delivery plan, decarbonisation will be a major opportunity for Europe, as highlighted in the Draghi Report. We welcome the 43% climate and environment mainstreaming target in the ECF, excluding defence, but an indicative €26 bn for Clean Transition and Industrial Decarbonisation is clearly insufficient. Draghi identifies an €800 bn annual investment gap, including €450 bn for energy. Clean tech manufacturing alone faces a public funding gap of €18–37.8 bn, rising sharply when other net-zero technologies are included.
| Text proposed by the Commission | Amendment |
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| (c) EUR 20 393 000 000 for the specific objectives referred to in Article 3(2), point (b); | (c) EUR 30 078 560 000 for the specific objectives referred to in Article 3(2), point (b); |
We recognise that biotechnology acts as a central enabler for the Union’s climate and environmental targets through decarbonisation, resource efficiency, and nature-positive solutions to reduce chemical dependencies in agriculture, and to protect biodiversity and soil health. According to the OECD, the "global bioeconomy" could be worth trillions by 2030. The EU is in a strong position to capture a leading share of this market and to reach its 2050 climate-neutrality goal. For that, sufficient public funding must be ensured via the ECF to de-risk and crowd-in private capital for capital-intensive biomanufacturing facilities.
| Text proposed by the Commission | Amendment |
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| 3a. Commitment appropriations corresponding to the amount of recoveries and of decommitments resulting from partial or non-implementation of defence collaborative research or innovation activities shall be made available again to the ECF in the context of the budgetary procedure. |
The leaked version of the ECF contained a provision requiring defence research decommitments to be re-used. Re-introduction would help mitigate significant investment gaps across ECF priorities.
| Text proposed by the Commission | Amendment |
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| 5. [From 1 January 2028 / programme start date], by way of derogation from point (a) of Article 216(4) of Regulation (EU, Euratom) 2024/2509, any surplus of provisions for the budgetary guarantees established by Regulations (EU) 2015/1017[2] and (EU) 2021/523[3] may be used to provide Union support under the ECF. These resources shall constitute external assigned revenue within the meaning of Article 21(5) of Regulation 2024/2509 to the ECF. | 5. [From 1 January 2028 / programme start date], by way of derogation from point (a) of Article 216(4) of Regulation (EU, Euratom) 2024/2509, any surplus of provisions for the budgetary guarantees established by Regulations (EU) 2015/1017[2] and (EU) 2021/523[3] shall be used to provide Union support under the ECF. These resources shall constitute external assigned revenue within the meaning of Article 21(5) of Regulation 2024/2509 to the ECF. |
| Text proposed by the Commission | Amendment |
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| 3. The ECF will be implemented in synergy with other Union funds, including the Global Europe Fund, in particular to support global competitiveness, ensure diversified supply sources, and strengthen export potential and opportunities of European companies. | 3. The ECF shall be implemented in synergy with other Union funds, including the Global Europe Fund and the Connecting Europe-Facility, in particular to support the global clean transition and the Union's competitiveness, ensure diversified supply sources, electrification and the development of cross-border transmission and distribution grids as a key enabler of the roll-out of renewable energy, the reduction of fossil fuel dependency and subsidies, and strengthening the Union's export potential and opportunities of European companies in particular with regard to sustainable innovation. |
| Text proposed by the Commission | Amendment |
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| 4a. Where applicable, Competitiveness Seals shall include descriptive information highlighting relevant environmental or climate-related benefits, inter alia sustainability, circularity or resource efficiency of high-quality actions, in order to support their visibility and uptake by public and private actors. |
This creates visibility that will accelerate public and private adoption, attract green financing, and foster a competitive edge for EU industries. It aligns with the ECF’s goals and the EU’s push for a circular, climate-neutral economy. It turns sustainability into a market advantage, driving both demand and supply of innovative solutions.
| Text proposed by the Commission | Amendment |
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| (ba) activities in violation of the ‘do no significant harm’ principle with limited exemptions for military defence investments, and the conditions laid out in Article 20, paragraph 2 (c), as laid out in Regulation (EU) [XXX] (Performance Regulation) including where allocations of support are provided in multiple steps, and continued compliance with that principle can no longer be guaranteed or has been violated. |
To align with the Commission’s overall ambition to identify and prevent activities in violation of DNSH, any activities found to be in violation thereof, even throughout a multiple step timeline of investment, should not be eligible to receive support under the ECF.
| Text proposed by the Commission | Amendment |
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| Article9a | |
| Award criteria | |
| 1. Where relevant and appropriate depending on the nature of the award procedure, award criteria set out in the work programmes referred to in Article 15 shall take into account the following principles: | |
| (a) an assessment of the quality of the proposals submitted in the light of the objectives set out in Article 3; | |
| (b) an assessment of the expected results of the proposals and their impact on achieving the objectives set out in Article 3; | |
| (c) the ability of the proposals to support specific activities in Chapters III, IV, V, VI and VII, Sections 1, 3 and 4, considering the nature of the activities. | |
| 2. Representatives of third countries or international organisations shall not be present in deliberations on award criteria. | |
| 3. This article shall not apply to work programmes adopted to implement the activities under Chapter VII, Section 2. |
To highlight that award criteria should be based on quality of proposals in order to ensure the largest possible impact with a limited budget
| Text proposed by the Commission | Amendment |
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| EU Preference | EU Preference and conditions for support |
| Text proposed by the Commission | Amendment |
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| 1. The ECF support shall target development manufacturing and exploitation in the Union of strategic technologies and sectors, in line with Union law and international commitments. The award procedures may apply any of the conditions set out in paragraph 2 to protect Union’s strategic and economic security interests, as well as security and critical assets and the services they provide. | 1. The ECF support shall target development manufacturing and exploitation in the Union of strategic technologies and sectors, in line with Union law and international commitments. The award procedures may apply any of the conditions set out in paragraph 2 and shall be in line with strategic assessments from the Competitiveness Coordination Tool to protect Union’s strategic and economic security interests, as well as security and critical assets and the services they provide. They shall ensure a high level of environmental protection, in line with the Union’s climate and environmental objectives. |
The Competitiveness Coordination Tool should provide strategic assessments “as a default” of when EU Preference criteria is needed in selected value chains and sectors that will be central to the Union competitiveness, security, and decarbonisation in the decades ahead. These assessments must follow an evidence-based approach.
| Text proposed by the Commission | Amendment |
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| 2. The work programme, the investment guidelines or the documents related to the award procedure may set out eligibility conditions to ensure the competitiveness of the Union, including protection of economic interests and autonomy of the Union where necessary and appropriate, including through preferential conditions such as restrictions or incentives for Union entities, while limiting distortion of the single market. Those eligibility conditions may take the form of: | 2. The work programme, the investment guidelines or the documents related to the award procedure shall set out eligibility conditions to ensure the competitiveness of the Union, including protection of economic interests, the resilience of Europe’s economy, supporting a just and clean transition and autonomy of the Union where necessary and appropriate, including through preferential conditions such as restrictions or incentives for Union entities, while limiting distortion of the single market. Those eligibility conditions may take the form of: |
| Text proposed by the Commission | Amendment |
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| (a) participation and performance restrictions requiring participating entities to be established, use facilities, or perform activities in the Member States, and where appropriate other eligible countries. The work programme or the documents related to the award procedure may set out further details on the application of these participation and performance restrictions; | (a) participation and performance restrictions requiring participating entities to be established, use facilities, or perform activities in the Member States, and where appropriate other eligible countries. The work programme or the documents related to the award procedure may set out further details on the application of these participation and performance restrictions; where feasible, this application shall build on existing provisions in Union legislation; |
| Text proposed by the Commission | Amendment |
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| (b) transfer restrictions requiring recipients of ECF funding, during or within 5 calendar years after the end of an action, to not directly or indirectly transfer all or certain operations, results or related access and use rights, including granting of licences, from an eligible Member State or associated country to an ineligible third country. Otherwise, Union funding may be reduced and may be fully or partially recovered. The work programme or the documents related to the award procedure may set out further details on the application of these transfer restrictions; | (b) transfer restrictions requiring recipients of ECF funding, during or within 5 calendar years after the end of an action, to not relocate or offshore, or to not directly or indirectly transfer all or certain operations, results or related access and use rights, including granting of licences, from an eligible Member State or associated country to an ineligible third country. Otherwise, Union funding may be reduced and may be fully or partially recovered. The work programme or the documents related to the award procedure may set out further details on the application of these transfer restrictions; |
EU investments should be safeguarded, including those on climate and environment. The ECF should ensure that EU investments does not become subject to offshoring.
| Text proposed by the Commission | Amendment |
|---|---|
| (c) supply and content restrictions requiring recipients of ECF funding to ensure a certain minimum use or sourcing of equipment, supplies and materials, or their components, used for the action from eligible entities referred to in paragraph 2, points (a) and (b), unless those supplies and materials cannot be reasonably sourced from those eligible entities. The work programme or the documents related to the award procedure may set out further details on the application of these supply and content restrictions; | (c) supply and content restrictions requiring recipients of ECF funding to ensure a certain minimum use or sourcing of equipment, supplies and materials, or their components, used for the action from eligible entities referred to in paragraph 2, points (a) and (b), unless those supplies and materials cannot be reasonably sourced from those eligible entities. Restrictions shall be temporary and be set gradually and selectively in strategic value chains after granular assessments of resilience and competitiveness in coherence with the Industrial Accelerator Act. Restrictions shall ensure added value in the Union and sustainability performance in line with the EU targets and policies. The work programme or the documents related to the award procedure may set out further details on the application of these supply and content restrictions; |
Strong demand signals are needed to attract private capital into clean tech manufactured in Europe. Public funding alone is insufficient, while private investors face uncertainty without clear European content requirements. Local content rules should be applied selectively to strategic value chains to support resilience and competitiveness. EU-level harmonisation is essential to prevent circumvention through state aid. Environmental conditionality must be reinforced to avoid supporting low-performance products or blanket local content mandates (Bellona).
| Text proposed by the Commission | Amendment |
|---|---|
| (da) requiring that the recipient of ECF funding under Chapter IV, excluding SME’s, has a site-specific, publicly available transformation plan for the installation or facility concerned. The plan should detail measures to support the clean transition or industrial decarbonisation, such as increasing energy or resource efficiency or the shift of industrial processes towards phasing out fossil fuels. The work programme or the documents related to the award procedure may set out further details on environmental criteria or the content and assessment of these transformation plans. |
By mandating a transparent decarbonisation roadmap for each installation under window 1, we would ensure accountability in how funded projects impact and contribute to the Union’s environmental and climate objectives.
| Text proposed by the Commission | Amendment |
|---|---|
| (ea) ensure sufficient monitoring and compliance with relevant Union and environmental and climate objectives. |
| Text proposed by the Commission | Amendment |
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| 2. The members of the ECF Strategic Stakeholders Board shall be appointed by the Commission, following an open call for nominations or for expressions of interest, or both, whichever the Commission finds more appropriate, and taking into account the need for balance in sector, organisation type, including private investors, and size, expertise, gender, age and geographical distribution. The term of members the Board shall be limited to four years, renewable once. Members of the Board should act with integrity and probity. | 2. The members of the ECF Strategic Stakeholders Board shall be appointed by the Commission, following an open call for nominations or for expressions of interest, or both, whichever the Commission finds more appropriate. Members of the Board shall be appointed primarily based on their scientific or practical expertise of the sectors and investment environment. Moreover, the Commission shall take into account need for balance in sector, organisation type, and size, expertise, gender, age and geographical distribution including academics and scientists, civil society, industry and innovators, including SME representatives, social economy and regional actors, implementing partners and private investors. The term of members the Board shall be limited to four years, renewable once. Members of the Board should act with integrity and probity. |
A balanced representation of industry, SME's, independent experts, implementing partners, civil society and stakeholders in the ECF Stakeholders Board is fundamental to drive data-driven, evidence-based investment priorities in the ECF and its Work Programmes, by integrating expert input based on scientific and academic research and on-the-ground experiences and perspectives on the most pressing investment needs from businesses and civil society.
| Text proposed by the Commission | Amendment |
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| 4. The ECF Strategic Stakeholder Board, informed by an observatory on emerging technologies, shall advise on the overall direction for the ECF, advise on long-term competitiveness trends, advise on areas of market failures and suboptimal investment situations that could be addressed in the implementation of the ECF, and advise on the identification of strategic portfolios of projects within and across activities of the ECF, for which it may be composed in different policy-oriented configurations. | 4. The ECF Strategic Stakeholder Board, informed by an observatory on emerging technologies, shall advise on the overall direction for the ECF, advise on long-term competitiveness, circularity and sustainability trends, advise on areas of market failures and suboptimal investment situations that could be addressed in the implementation of the ECF, and advise on the identification of strategic portfolios of projects within and across activities of the ECF, for which it may be composed in different policy-oriented configurations. |
| Text proposed by the Commission | Amendment |
|---|---|
| 8. The Advisory Board on ECF InvestEU Instrument shall be composed of one representative of each implementing partner and one representative of each Member State. the Advisory Board on ECF InvestEU Instrument shall, provide advice on the design of financial products and on the strategic and operational direction in its area of competence. It shall also provide advice on the coordination with the EIC to ensure complementarity with other Union funding or private investments. The Advisory Board shall be chaired by a representative of the Commission. | 8. The Advisory Board on ECF InvestEU Instrument shall be composed of one representative of each implementing partner and one representative of each Member State. The Advisory Board on ECF InvestEU Instrument shall provide advice on the design of financial products and on the strategic and operational direction in its area of competence, including, where relevant, taking into account existing Union climate, environment, sustainability and circularity objectives as reflected in applicable Union frameworks. It shall also provide advice on the coordination with the EIC to ensure complementarity with other Union funding or private investments. The Advisory Board shall be chaired by a representative of the Commission. |
| Text proposed by the Commission | Amendment |
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| (ha) where applicable, the possibility to award a Competitiveness Seal as referred to in Article 8, and additional conditions if any; |
| Text proposed by the Commission | Amendment |
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| (hb) actions that support the implementation of Union legislation and the achievement of Union targets, including those related to climate, environment, and public health. |
Aligns work programmes with the Union’s obligations under Articles 17 TEU, 291 TFEU, 168 TFEU and 191 TFEU to ensure coherent implementation of Union law and targets. Ensures that ECF spending supports delivery of existing environmental and public health legislation, including air-quality, climate mitigation and adaptation objectives.
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| 3. The Commission shall, by means of implementing acts, adopt the work programmes implementing the specific objectives referred to in Article 3(2), points (a), (b), (c) and (d) and for the horizontal activities in Chapter III. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 83(2). | 3. The Commission shall, by means of implementing acts, adopt the work programmes implementing the specific objectives referred to in Article 3(2), points (a), (b), (c) and (d) and for the horizontal activities in Chapter III. Those implementing acts shall where appropriate ensure a harmonisation of award criteria across the ECF and be adopted in accordance with the advisory procedure referred to in Article 83(2). |
| Text proposed by the Commission | Amendment |
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| 3a. Work programmes implementing the activities referred to in Article 33(1), point (a) shall be multiannual and shall contain calls for proposals exclusively dedicated to those activities. The Commission shall ensure that stakeholders are consulted in the development of the multiannual work programmes. |
Referring to parts of LIFE programme as laid out in art. 33, paragraph (1). The current LIFE programme is based on multiannual work programmes, which ensures predictability for end-beneficiaries and allows for time to develop high-quality proposals that meet programme objectives. Predictability also improve accessibility for stakeholders co-developing projects. This predictability, accessibility, and transparency should be safeguarded through multiannual planning under the ECF.
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| 2. The work programme or the documents related to the award procedure shall set out additional conditions to ensure that the support is necessary and proportionate, excluding overcompensation and double funding, is temporary and decreases over time. | 2. The work programme or the documents related to the award procedure shall set out additional conditions to ensure that the support is necessary and proportionate, excluding overcompensation and double funding, is temporary and decreases over time and shall, where relevant, provide for incentives encouraging resource-efficient, circular and clean production approaches in the ramp-up of manufacturing capacity. |
The conditions in the work-programmes are the ideal place to define incentives that encourage decarbonisation and the clean transition, and we in turn should encourage this. “Where relevant” should allow for necessary flexibilities, as is the original intention of the Commission.
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| (c) By way of derogation from Article 9 of this Regulation, the work programme may specify that an award procedure takes the form of an inducement intervention to allow for a temporary and conditional waiver of compliance with a specified part of the eligibility criteria during the award procedure and parts of the implementation of the action, in particular regarding the place of establishment; compliance with the temporarily waived eligibility criteria shall instead be achieved and evaluated during the implementation of the action within a timeframe specified in the legal commitment. If the temporarily waived eligibility criteria are not complied with at the specified date, the action shall be considered ineligible in its entirety and any Union funding shall be fully recovered; for inducement interventions no pre-financing shall be paid. | (c) By way of derogation from Article 9 of this Regulation, the work programme may specify that an award procedure takes the form of an inducement intervention to allow for a temporary and conditional waiver of compliance with a specified part of the eligibility criteria during the award procedure and parts of the implementation of the action, in particular regarding the place of establishment; compliance with the temporarily waived eligibility criteria shall instead be achieved and evaluated during the implementation of the action within a timeframe specified in the legal commitment. If the temporarily waived eligibility criteria are not complied with at the specified date, the action shall be considered ineligible in its entirety and any Union funding shall be fully recovered; for inducement interventions no pre-financing shall be paid. Where accelerated award procedures allow certain assessments to be deferred in time, the application of the ‘do no significant harm’ principle may be subject to deferred verification but shall not be waived in substance. This shall be without prejudice to sector-specific exemptions or adaptations, in particular for defence-related activities, where such exemptions are explicitly provided for under Union law. |
Where speed is required, some environmental assessments may be carried out after funding is awarded. This strengthens the text and clarifies that the DNSH compliance can be verified at a later stage but cannot be dropped or weakened. This compliance criteria therefore remains fully applicable in substance
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| 3a. The accelerated and targeted actions for competitiveness shall respect the ‘do no significant harm’ principle. |
| Text proposed by the Commission | Amendment |
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| 3. The maximum amount of the budgetary guarantee under the EU Compartment of the ECF InvestEU Instrument shall be EUR 70 000 000 000 in current prices. It shall be provisioned at the rate of 50 %. | 3. The maximum amount of the budgetary guarantee under the EU Compartment of the ECF InvestEU Instrument shall be EUR 70 000 000 000 in current prices, expected to mobilise additional investments of around EUR 1 000 000 000 000. It shall be provisioned at the rate of 50 %. |
The reference to the expected investments mobilised clarifies the multiplier effect of the budgetary guarantee, in line with the practice under previous EU instruments such as EFSI. Indicating the estimated amount of investments demonstrates the expected impact and efficiency of the ECF InvestEU Instrument, including in regards to decarbonisation, climate and environment related projects, and provides transparency for stakeholders.
| Text proposed by the Commission | Amendment |
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| 4. The minimum amount of the Union support from ECF delivered through ECF InvestEU Instrument shall be EUR 17 000 000 000, to be used in support of the general and specific objectives set out in Article 3. This minimum amount shall be increased by the contributions from the work programmes set out in Article 15. The contributions shall be a favoured means of implementation under the ECF and used for provisioning of the budgetary guarantee or financing of the financial instruments. | 4. The minimum amount of the Union support from ECF delivered through ECF InvestEU Instrument shall be EUR 27 000 000 000, to be used in support of the general and specific objectives set out in Article 3. This minimum amount shall be increased by the contributions from the work programmes set out in Article 15. The contributions shall be a favoured means of implementation under the ECF and used for provisioning of the budgetary guarantee or financing of the financial instruments. |
The proposed minimum allocated budget to the ECF InvestEU Instrument is set at €11 bn (art 4 (2) (a)) and distributed as follows: (i) €1 bn for Project Advisory; and (ii) €10 bn for the ECF InvestEU Instrument. Of these €10 bn, €3 bn represent an indicative allocation for fully funded financial instruments, while the remaining €7 bn are allocated to the provisioning of the budgetary guarantee. With a 50% provisioning rate, the €7 bn translate into a maximum budgetary guarantee of €14 bn. This brings the minimum Union support from the ECF delivered through the ECF InvestEU Instrument to €17 bn, which is €12 bn below the current InvestEU guarantee of €29 bn. To increase budgetary impact, including on climate and environment, with a limited budget, we propose to increase the InvestEU by 5 bn, which would mean a minimum budget of €16 bn to the ECF InvestEU Instrument, distributed as follows: (i) €1 bn for Project Advisory; and (ii) €15 bn for the ECF InvestEU Instrument. Of these €15 bn, €3 bn would remain the indicative allocation for fully funded financial instruments, while the remaining €12 bn would be allocated to the provisioning of the budgetary guarantee. With a 50% provisioning rate, these €12 bn translate into a budgetary guarantee of €24 bn. This brings the minimum Union support from the ECF delivered through the ECF InvestEU Instrument to €27 bn.
| Text proposed by the Commission | Amendment |
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| 1. The ECF InvestEU Instrument shall serve as the Union’s integrated platform for delivering targeted financial support to companies across all development phases start-ups, scale-ups, including those actively pursuing manufacturing, industrial and market deployment. It shall ensure that high-potential European companies developing or deploying innovative solutions can access the capital and resources to grow in the Union, thus strengthening the integration of the Single market and the Savings and Investment Union. | 1. The ECF InvestEU Instrument shall serve as the Union’s integrated platform for delivering targeted financial support to companies across all development phases start-ups, scale-ups, including those actively pursuing manufacturing, industrial and market deployment. It shall ensure that high-potential European companies developing or deploying innovative and sustainable solutions can access the capital and resources to grow in the Union, as well as, where relevant, access to guidance, recommendations or frameworks supporting the progressive achievement and take up of sustainability and circularity, thus strengthening the integration of the Single market and the Savings and Investment Union. |
Underlining the importance of providing the necessary tools and knowledge, in parallel to capital and funds, to achieve sustainability and circularity.
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| 3. The facility shall intervene where market investors cannot provide sufficient financing for European high-growth, innovative and strategic companies, including if needed to protect the Union's strategic assets, interests, autonomy or economic security. | 3. The facility shall intervene where market investors cannot provide sufficient financing for European high-growth, innovative, sustainable and strategic companies, including if needed to protect the Union's strategic assets, interests, autonomy, energy independence, and climate or economic security. |
| Text proposed by the Commission | Amendment |
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| 1. “EU for Business” Network shall be established to help Union businesses become more competitive and innovate, grow and scale in the Single Market and beyond, with a particular emphasis on SMEs, startups, scaleups and small mid-cap companies. The network shall have a Union-wide and geographically balanced coverage, taking into account the specificities of all types of regions in the Union, including the less developed regions and the Union outermost regions. | 1. “EU for Business” Network shall be established to help Union businesses become more competitive and sustainable, innovate, grow and scale in the Single Market and beyond, with a particular emphasis on SMEs, startups, scaleups and small mid-cap companies. The network shall have a Union-wide and geographically balanced coverage, taking into account the specificities of all types of regions in the Union, including the less developed regions and the Union outermost regions. |
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| (ha) support in driving the clean transition and in scaling up sustainable technologies, including through access to targeted financial instruments that facilitate the development, demonstration and market uptake of environmentally friendly products and processes. |
Extending the list of support to businesses to promote and achieve climate and environmental objectives.
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| 1. Each window shall support dedicated, sector-specific actions targeting start-ups, SMEs and small mid-cap companies or calls for SMEs in strategic sectors with a view to fostering innovation, business acceleration, commercialisation and scaling-up. | 1. Each window shall support dedicated, sector-specific actions targeting start-ups, SMEs and small mid-cap companies or calls for SMEs in strategic sectors with a view to fostering sustainability, innovation, business acceleration, commercialisation and scaling-up. |
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| 1. The ECF shall finance activities in support of skills development, in particular in the strategic sectors, building strong links between higher education, vocational education and training providers, applied research and businesses for an agile, innovative and competitive economy. This shall include support for a European Skills Guarantee to support value chain transitions in favour of strategic growth sectors or occupations across the labour market through upskilling and reskilling of the workforce and Vocational Education and Training (VET) partnerships to strengthen cooperation between VET providers and businesses, especially SMEs and connecting them with regional industrial ecosystems. | 1. The ECF shall finance activities in support of skills development, in particular in the strategic sectors, building strong links between higher education, vocational education and training providers, applied research and businesses for an agile, resilient, innovative, clean and competitive economy. This shall include support for a European Skills Guarantee to support value chain transitions in favour of strategic growth sectors or occupations across the labour market through upskilling and reskilling of the workforce and Vocational Education and Training (VET) partnerships to strengthen cooperation between VET providers and businesses, especially SMEs and connecting them with regional industrial ecosystems. |
| Text proposed by the Commission | Amendment |
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| 2. The ECF may support any additional activities to facilitate and accelerate access to Union funding, and other funding, financing and investments, as well as to ensure valorisation and uptake of results through tools and instruments such as proof of concept, deployment grants, advisory and business support services, and any dedicated platform. | 2. The ECF may support any additional activities to facilitate and accelerate access to Union funding, and other funding, financing and investments, as well as to ensure valorisation and uptake of results through tools and instruments such as proof of concept, deployment grants, advisory and business support services, and any dedicated platform. This may include proportional reporting, monitoring and audit obligations tailored to the size and risk profile of the portfolio and the beneficiary of the entity receiving support or carrying out work programmes under the ECF. |
| Text proposed by the Commission | Amendment |
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| (a) ”LIFE activities”: providing support to bottom-up projects for the demonstration, testing and market uptake of innovative solutions and best practices in clean transition and industrial decarbonisation and awareness raising on climate and environment to relevant governance levels. | (a) ”LIFE activities”: providing support to bottom-up projects for the demonstration, testing and market uptake of innovative solutions and best practices for reaching the objectives of Union legislation and policy on the environment and on climate action, including circular economy, nature and biodiversity, the clean transition and industrial decarbonisation and awareness raising on climate and environment to relevant governance levels. |
Extending the objective of implementing ‘LIFE activities’ in line with the definition of competitiveness as proposed.
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| (b) Energy efficiency, energy storage, demand-response, domestic transmission and distribution grids, digitalisation of energy systems, integrated renewable energy, energy renovations, and heating and cooling solutions, systems and services. | (b) Energy efficiency, energy storage, demand-response, domestic and cross-border transmission and distribution grids, digitalisation of energy systems, renewable energy, including in an integrated manner, energy renovations, and heating and cooling solutions, systems and services. |
Aligning wording on cross-border grids with recitals and art 3. There is no clear legal definition of integrated renewable energy. The “integrated” qualifier on its own would appear to restrict the scope of possible work in renewables.
| Text proposed by the Commission | Amendment |
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| (c) Clean energy and decarbonisation solutions in industry, including electrification of energy intensive industries and carbon capture, storage and utilisation (CCS/CCU), and in cities, in particular for energy, transport and buildings. | (c) Clean energy and decarbonisation solutions in industry, including electrification of energy intensive industries and carbon capture, removal, storage and utilisation (CCS/CCU), and in cities, in particular for energy, transport and buildings, while supporting the progressive phase-out of fossil fuels and harmful subsidies, in line with the Union’s climate objectives. |
Addition of “removal” to provide legal clarity and fair access to funding for all credible pathways. Alongside deep emissions reductions, carbon dioxide removal (CDR) is essential for achieving EU’s 2040 climate target, as well as climate-neutrality by 2050. The IPCC estimates the EU will need 400–800 MtCO₂ removals annually by 2050. The Commission’s IA for the 2040 target also stated that 400 MtCO2 will need to be removed annually, of which 75 MtC02 must come from permanent CDR. DG CLIMA reports identify a €2.4–6.7 bn investment gap for CDR deployment and early-stage projects.
| Text proposed by the Commission | Amendment |
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| (d) Sourcing, production, storage, distribution and uptake of sustainable fuels, facilitating decarbonisation of mobility. | (d) Sourcing, production, storage, distribution and uptake of sustainable fuels, in particular for renewable fuels of non-biological origin, facilitating decarbonisation of transport and mobility. |
ECF should provide support for alternative fuels that can be produced domestically at scale and sustainably in light of achieving the climate objectives but also as a way to stimulate the alternative fuels market.
| Text proposed by the Commission | Amendment |
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| (e) Clean, multimodal and digitalised, safe transport and mobility solutions, including mobile assets (e.g. vehicles, vessels including fishing vessels, aircrafts, rolling stocks) and infrastructures (among others charging infrastructure, ports or high speed rail), systems and operations. | (e) Clean, multimodal and digitalised, safe transport and mobility solutions, including mobile assets (e.g. vehicles, vessels including fishing vessels, aircrafts, rolling stocks) and sustainable infrastructures (such as charging infrastructure, ports or high speed rail, including support for innovative solutions to achieve low carbon emitting of energy-intensive infrastructures), systems and operations. |
| Text proposed by the Commission | Amendment |
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| (f) Supporting the development and deployment of smart mobility, including vehicles, infrastructure, connected and automated mobility, smart traffic management systems and related services. | (f) Supporting the development and deployment of smart mobility, including vehicles, sustainable infrastructure, connected and automated mobility, smart traffic management systems and related services. |
| Text proposed by the Commission | Amendment |
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| (h) Strengthening Union capacity in innovation and industrial deployment of advanced manufacturing and advanced materials. | (h) Strengthening Union capacity in sustainable innovation and industrial deployment of advanced manufacturing and advanced materials, including innovation, scale-up and deployment of waste-processing, recycling and recovery techniques. |
| Text proposed by the Commission | Amendment |
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| (i) Circular economy, water efficiency, ocean health and environmental policy, including solutions to protect, restore and improve the quality of the environment, including the air, water, marine and soil, and to halt and reverse biodiversity loss and to tackle the degradation of ecosystem, sustainable solutions for climate action in agri-food and forestry supply chains. | (i) Circular economy, water efficiency, ocean health and environmental policy, including solutions to protect, restore and improve biodiversity and the quality of the environment, including the air, water, marine and soil, and to halt and reverse biodiversity loss and to tackle the degradation of ecosystem, sustainable solutions for climate action including in agri-food and forestry supply chains. |
| Text proposed by the Commission | Amendment |
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| (k) Pollution prevention, control and remediation. | (k) Pollution prevention, control and remediation, such as through measures that reduce harmful emissions and exposures that negatively affect public health and the environment, and actions in key health-determining sectors including clean mobility, clean, sustainable and climate resilient buildings, in line with the 8th Environment Action Programme. |
Reflects the Union’s duty to ensure a high level of health and environmental protection under Articles 168, 191 and 114(3) TFEU and Article 3 TEU, as well as the commitments set out in the 8th Environment Action (8EAP). Provides clarity that pollution-prevention objectives should be pursued through measures reducing harmful emissions, wider air pollutants (e.g., AAQD), and exposures in key sectors.
| Text proposed by the Commission | Amendment |
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| (l) Investment, innovation, and modernisation in sustainable blue economy sectors such as shipbuilding and shipping, offshore energy, ocean observation technologies, blue tech and preserving ecosystems. | (l) Investment, innovation, and modernisation in sustainable blue economy sectors such as shipbuilding and shipping, renewable and clean offshore energy, ocean observation technologies, blue tech and preserving maritime biodiversity and ecosystems. |
| Text proposed by the Commission | Amendment |
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| (m) Sustainability and clean transition of SMEs, including in tourism, construction and other economic sectors. | (m) Sustainability and the clean transition of SMEs, with particular support in developing energy efficient, circular and sustainable production processes, enable access to clean technologies, simplify access to finance and ensure proportionate sustainability and administrative compliance criteria. |
| Text proposed by the Commission | Amendment |
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| (o) Support actions for the development, implementation, monitoring and enforcement of relevant Union legislation and policy. This includes supporting the relevant institutions, the cooperation between national authorities and with stakeholders, studies, the development and deployment of tools and infrastructures, including IT infrastructure and tools. | (o) Support actions for the development, implementation, monitoring and enforcement of relevant Union legislation and policy, in particular Regulation (EU) 2021/1119 and Council Directive 92/43/EEC. This includes supporting the relevant institutions, the cooperation between national authorities, independent experts and with stakeholders, studies, the development and deployment of tools and infrastructures, including in IT. |
Both of these laws are crucial to the EU’s climate and environmental ambitions. Regulation (EU) 2021/1119 establishes the binding EU climate governance framework with climate neutrality by 2050 as a legally binding objective. Council Directive 92/43/EEC is the cornerstone of EU nature conservation law, aimed at protecting biodiversity through habitat and species preservation.
| Text proposed by the Commission | Amendment |
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| 3. Work programmes shall ensure coherence with the types of actions planned to be implemented under the Fund referred to in Article 10a(8) of Directive 2003/87/EC and coherence and complementarity with the Regulation (EU)[XXX] [Connecting Europe Facility] | 3. Work programmes shall ensure coherence with the types of actions planned to be implemented under the Fund referred to in Article 10a(8) of Directive 2003/87/EC and coherence and complementarity with the Regulation (EU)[XXX] [Connecting Europe Facility] and shall ensure the continuity of the core objectives and delivery principles of LIFE activities under direct management. |
| Text proposed by the Commission | Amendment |
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| 1. Award procedures under this chapter may take the form of competitive bidding. That includes contracts for difference, carbon contracts for difference, or fixed premium contracts to support decarbonisation investment, provided that the financial interests of the Union are protected and the exposure of the budget remains limited to a maximum contribution. Competitive bidding procedures may be implemented through, and in accordance with, any of the budget implementation instruments set out in Article 12. | 1. Award procedures under this chapter may take the form of competitive bidding. That includes contracts for difference, carbon contracts for difference, or fixed premium contracts to support decarbonisation investment, provided that the financial interests of the Union are protected and the exposure of the budget remains limited to a maximum contribution. Competitive bidding procedures may be implemented through, and in accordance with, any of the budget implementation instruments set out in Article 12 and incentives in contribution criteria for sustainability and environmental and climate objectives. |
| Text proposed by the Commission | Amendment |
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| (f) Fostering an innovative and competitive bioeconomy sector in the Union, including in the areas of health biotech, biobased materials and products, valorising farm and forest residues, carbon negative products, biomanufacturing and biochemicals, in particular by supporting the discovery, development, derisking, demonstration, piloting, and scaling-up of bioeconomy innovations; by accelerating the market introduction and market uptake of bio-based materials from agriculture and forestry and bioeconomy solutions; by strengthening emerging value chains; by building a skilled workforce, by providing access to finance and other support for SMEs, startups, scale ups and innovators. | (f) Fostering an innovative and competitive bioeconomy sector in the Union, including in the areas of health biotech, biobased materials and products, innovative food products, valorising farm and forest residues, carbon negative products, biomanufacturing and biochemicals, in particular by supporting the discovery, development, derisking, demonstration, piloting, and scaling-up of bioeconomy innovations; by accelerating the market introduction and market uptake of bio-based materials and bioeconomy solutions; by strengthening emerging value chains; by building a skilled workforce, by providing access to finance and other support for SMEs, startups, scale ups and sustainable innovators. |
| Text proposed by the Commission | Amendment |
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| (g) Fostering the competitiveness, the sustainability, the resilience and fairness of agriculture, fisheries, aquaculture, forestry sectors and rural and coastal areas, and contribute to long term food security in the Union. | (g) Fostering the competitiveness, the sustainability, the resilience and fairness of agriculture, fisheries, aquaculture, forestry sectors and rural and coastal areas, in order to enhance their role in the transition to a climate-neutral, climate-resilient, water-smart, nature-positive economy and in the protection and restoration of natural resources and biodiversity and contributing to long term food security in the Union. |
By supporting the clean transition of these primary sectors, the EU will accelerate the shift toward nature-positive and climate-resilient production models, which are essential for the Union’s long-term food security as well as meeting the Union's environmental ambitions and climate targets.
| Text proposed by the Commission | Amendment |
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| 2. Work programmes adopted in accordance with the rules of this Regulation under this chapter shall integrate in a specific dedicated part and ensure coherence with [Competitiveness and Society activities supported under the Regulation (EU) [XXX] [Horizon Europe Framework programme for Research and Innovation | 2. Work programmes adopted in accordance with the rules of this Regulation under this chapter shall integrate in a specific dedicated part and ensure coherence with [Competitiveness and Society activities supported under the Regulation (EU) [XXX] [Horizon Europe Framework programme for Research and Innovation while ensuring that the Programme’s R&I funding is safeguarded against use for deployment funding. |
An inclusion to ensure that Pillar II continues to support basic R&I to solve fundamental challenges and place safeguards to avoid its use for technology deployment, in line with the safeguards proposed in the proposal for a Horizon Europe regulation, Art 15 (2): “Activities shall be carried out in a balanced manner between lower and higher Technology Readiness Levels, thereby covering the whole value chain."
| Text proposed by the Commission | Amendment |
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| (a) Achieving leadership in digital and AI technologies through research and innovation, applied research, technology transfer, industrial deployment, and market uptake. The implementation shall include, but not be limited to, developing and shaping sustainable core digital technologies that reflect Union values, safeguard the Union’s security and foster its competitiveness globally. | (a) Achieving leadership in digital and AI technologies through research and innovation, applied research, technology transfer, industrial deployment, and market uptake. The implementation shall include, but not be limited to, developing and shaping sustainable core digital technologies that reflect Union values, including innovations that strengthen the environmental sustainability, resource- and energy-efficiency of digital and AI technologies, and safeguard the Union’s security and foster its competitiveness globally. |
In light of increasing resource depletion as well as the view to limit strategic dependencies developing resource-efficient and environmentally friendly digital technologies could be a significant competitive edge in the future. By integrating these assets into the digital investment priorities of the ECF, the Union ensures that its technological leadership directly supports the stability and resilience of its clean energy transition, including working towards climate neutrality by 2050, and legally binding interim targets to reduce net greenhouse gas emissions by at least 55% by 2030.
| Text proposed by the Commission | Amendment |
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| (b) Achieving technological sovereignty by building resilient digital ecosystems, including advanced digital skills, and ensuring a high-level of cybersecurity in the Union. The implementation shall include, but not be limited to, creating an attractive ecosystem for disruptive innovative companies, SMEs, start-ups and scale-ups, as well as emerging industry leaders in the digital sector to remain, grow and thrive within the Union, supporting them in scaling up, expanding their markets, including through procurement, and contributing to the Union’s digital sovereignty, with a focus on addressing the complexity of the technological value chains, standardisation, the security of supply of advanced digital technologies, infrastructures, and services, needed capacities, including manufacturing, production capacity, and advanced digital skills both in the private and public sectors. | (b) Achieving technological sovereignty by building resilient energy-efficient and sustainable digital ecosystems, including advanced digital skills, and ensuring a high-level of cybersecurity in the Union. The implementation shall include, but not be limited to, creating an attractive ecosystem for disruptive innovative companies, SMEs, start-ups and scale-ups, as well as emerging industry leaders in the digital sector to remain, grow and thrive within the Union, supporting them in scaling up, expanding their markets, including through procurement, and contributing to the Union’s digital sovereignty, with a focus on addressing the complexity of the technological value chains, standardisation, the security of supply of advanced digital technologies, infrastructures, and services, needed capacities, including manufacturing, production capacity, and advanced digital skills both in the private and public sectors, as well as measures to enhance the cyber security and digital resilience of critical energy infrastructure. |
Ensuring robust cyber security and strengthening digital resilience of critical energy infrastructure is essential to safeguarding the Unions autonomy, climate ambition and competitiveness. By incentivising energy-efficient and sustainable digital ecosystems, the amendment serves to reduce the environmental footprint of the digital sector. Embedding these resilience and sustainability measures within the ECF ensures that EU digital resilience contributes to a secure, reliable, and climate-neutral energy system in line with the EU 2030 and 2050 climate targets.
| Text proposed by the Commission | Amendment |
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| (c) Enabling the power of digital for businesses and citizens by deploying state-of-the-art and sustainable digital applications, infrastructures and services across the Union. The implementation shall include, but not be limited to, actions to research and innovate, develop, produce, manufacture, or deploy advanced digital infrastructures at scale across the Union (e.g. high-performance computing, telco-cloud-edge, AI Factories and Gigafactories, data and data spaces, testing and experimentation facilities, semiconductor, photonics and quantum chips pilot lines, quantum computing, communication and sensing infrastructures, cybersecurity hubs, the EU for Business Network, European Digital Innovation Hubs, advanced connectivity infrastructures including submarine cables and non-terrestrial networks), the EU Digital Identity Wallets and trust services as well as the European Business Wallets and services, secure and interoperable digital public infrastructure, to act as a key enabler of the digital transformation and in support of societal resilience and preparedness, bringing clear added-value to businesses, public services and citizens. Where relevant, these actions shall be coordinated with national investments and shall otherwise exploit untapped potential to create a domestic market for advanced digital technologies ‘made in Europe’. Such actions may be provided under the framework of Multi-Country Projects established in accordance with Decision (EU) 2022/2481, including notably those implemented through the European Digital Infrastructure Consortia or Joint Undertakings. | (c) Enabling the power of digital for businesses and citizens by deploying state-of-the-art and sustainable digital applications, infrastructures and services across the Union. The implementation shall include, but not be limited to, actions to research and innovate, develop, produce, manufacture, to improve energy efficiency and sustainability in line with Directive (EU) 2023/1791 of the European Parliament and of the Council and deploy advanced and sustainable digital infrastructures at scale across the Union most notably for high-performance computing, telco-cloud-edge, AI Factories and Gigafactories, and for: |
| - data and data spaces, testing and experimentation facilities, | |
| - semiconductor, photonics and quantum chips pilot lines, quantum computing, communication and sensing infrastructures, | |
| - cybersecurity hubs, the EU for Business Network, European Digital Innovation Hubs, | |
| - advanced connectivity infrastructures including submarine cables and non-terrestrial networks, | |
| - the EU Digital Identity Wallets and trust services as well as the European Business Wallets and services, | |
| - secure and interoperable digital public infrastructure, | |
| to act as a key enabler of the digital transformation and in support of societal resilience and preparedness, bringing clear added-value to businesses, public services and citizens. | |
| Where relevant, these actions shall be coordinated with national investments and shall otherwise exploit untapped potential to create a domestic market for advanced digital technologies ‘made in Europe’. Such actions may be provided under the framework of Multi-Country Projects established in accordance with Decision (EU) 2022/2481, including notably those implemented through the European Digital Infrastructure Consortia or Joint Undertakings. |
| Text proposed by the Commission | Amendment |
|---|---|
| (d) Supporting the Union’s digital transformation of public and private sectors, including to support the development and the circulation of digital skills. The implementation shall include, but not be limited to, providing the necessary support to accelerating and deepening the uptake and deployment of digital solutions across economic sectors, through research, innovation and deployment, to boost their productivity and competitiveness, with a focus on more complex technologies, as well as to achieve societal benefits. Support to public sector applications as well as the broader digitalisation of the public sector shall aim at ensuring a cohesive Union-wide interoperable digital public services landscape, support technological sovereignty, maximising their efficiency for businesses and citizens. The digital transformation of economic and public sectors shall also be supported by the other sectoral windows of the ECF. | (d) Supporting the Union’s digital transformation of public and private sectors, including to support the development and the circulation of digital skills. The implementation shall include, but not be limited to, providing the necessary support to accelerating and deepening the uptake and deployment of digital solutions across economic sectors, through research, innovation and deployment, to boost their productivity, energy-efficiency, sustainability and competitiveness, with a focus on more complex technologies, as well as to achieve societal and environmental benefits. Support to public sector applications as well as the broader digitalisation of the public sector shall aim at ensuring a cohesive Union-wide interoperable digital public services landscape, support technological sovereignty, maximising their efficiency for businesses and citizens. The digital transformation of economic and public sectors shall also be supported by the other sectoral windows of the ECF. |
| Text proposed by the Commission | Amendment |
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| 1. Support to Resilience policy shall reinforce the strategic autonomy, economic security and the resilience of the Union industry by strengthening the different stages of the raw materials value chain, including through diversification of the supply of critical raw materials from third countries. | 1. Support to Resilience policy shall reinforce the strategic autonomy, green transition, economic security and the resilience of the Union industry by strengthening the different stages of the raw materials value chain, including through diversification of the supply of critical raw materials from third countries. |
| Text proposed by the Commission | Amendment |
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| (ca) innovation, scale-up and deployment of advanced waste-processing, recycling and recovery techniques targeting critical materials and semiconductor reuse. |
Technologies targeting critical raw materials and semiconductor reuse offer huge potential in strengthening resource resilience, strategic autonomy, reducing strategic supply-chain dependencies and in delivering on the 25 % recycling target of strategic raw materials by 2030 under the Critical Raw Materials Act, as well as contributing to Union's 2030, 2040 and 2050 climate targets.
| Text proposed by the Commission | Amendment |
|---|---|
| (ea) Support to the long-term competitiveness and resilience of the Union Defence Industry through initiatives and actions that support energy-efficiency and reduction of emissions such as low-carbon steel technologies and the development and deployment of circular steel value chains, such as increased end-of-life reuse, recycling and recovery of steel and strategic materials within the Union, in order to strengthen the Union’s autonomy. |
Aligning defence-related support under the ECF with the Union’s objectives on strategic autonomy, industrial resilience and decarbonisation. By embedding low-carbon and circular steel value chains within the ECF scope the EU can reduce its external dependencies, strengthens its supply security, and ensure defence competitiveness while contributing to climate and energy-efficiency goals.
| Text proposed by the Commission | Amendment |
|---|---|
| (ea) actions that support the energy-efficiency and, where relevant, the sustainability of the defence and security sectors |
Extension of the idea to align defence-related support under the ECF with the Union’s objectives on strategic autonomy, industrial resilience and decarbonisation.
| Text proposed by the Commission | Amendment |
|---|---|
| (b) the establishment of cross-border industrial partnerships, including through public private partnerships or other forms of industrial cooperation, in a joint industrial effort, such as cross-border joint ventures including activities that aim to coordinate the sourcing or reservation and stockpiling of defence products, components and corresponding raw materials insofar as those components and raw materials are intended or used wholly for the production of defence products, as well as to coordinate production capacities and production plans; | (b) the establishment of cross-border industrial partnerships, including through public private partnerships or other forms of industrial cooperation, in a joint industrial effort, such as cross-border joint ventures including activities that aim to coordinate the sourcing or reservation and stockpiling of defence products, including, where relevant, the development of circularity and lifecycle planning approaches for materials and components and corresponding raw materials insofar as those components and raw materials are intended or used wholly for the production of defence products, as well as to coordinate production capacities and production plans; |
Extension of the idea to align defence-related support under the ECF with the Union’s objectives on strategic autonomy, industrial resilience and decarbonisation.
| Text proposed by the Commission | Amendment |
|---|---|
| (fa) actions that support the energy-efficiency, and, where relevant, the sustainability, of the European Defence Technological and Industrial Base (EDTIB). |
Extension of the idea to align defence-related support under the ECF with the Union’s objectives on strategic autonomy, industrial resilience and decarbonisation.
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The Programme shall support activities that aim at increasing cooperation among Member States and associated countries in joint certification capability development, procurement, maintenance and availability of defence capabilities, thereby reducing fragmentation and enhancing interoperability, achieving economies of scale, ensuring faster access to needed equipment, and strengthening collective defence readiness. | 1. The Programme shall support activities that aim at increasing cooperation among Member States and associated countries in joint certification capability development, procurement, maintenance and availability of defence capabilities, thereby reducing fragmentation and enhancing interoperability, achieving economies of scale, where relevant enhancing sustainability and energy-efficiency, ensuring faster access to needed equipment, and strengthening collective defence readiness. |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) The incentivisation of the procurement of products which enable or enhance the movement, transportation, or deployment of military personnel, equipment, or supplies, and improve the access to military mobility capabilities. | (a) The incentivisation of the procurement of products which enable or enhance the movement, transportation, or deployment of military personnel, equipment, or supplies, and improve the access to military mobility capabilities, and where relevant or technologically feasible, sustainability, circularity and resilience of military equipment and infrastructure, and related supply chains. |
Extension of the idea to align defence-related support under the ECF with the Union’s objectives on strategic autonomy, industrial resilience and decarbonisation.
| Text proposed by the Commission | Amendment |
|---|---|
| (b) The assistance to Member States in identifying and accessing transport and logistical resources and equipment that may be available from the commercial market or other sources for the purpose of supporting military mobility. | (b) The assistance to Member States in identifying and accessing transport and logistical resources and equipment that may be available from the commercial market or other sources for the purpose of supporting military mobility, in accordance with the conditions set out in point (a). |
| Text proposed by the Commission | Amendment |
|---|---|
| (d) Civil preparedness against security threats, whether natural or human-made, accidental or intentional. | (d) Civil preparedness, adaptation and mitigation against security threats, whether natural, climate change related or human-made, accidental or intentional. |
Extreme weather events and climate change related disasters are already costing Europe around EUR 40-50 billion a year, with more than €162 billion in losses in the last three years alone. These costs and events are rising and place increasing pressure on both public budgets and citizens. Embedding adaptation and mitigation measures explicitly within the scope will support the future-proofing of the economy, while underinvestment would lead to significantly higher public and private cost in the future, as recently highlighted by the EEA.
Back matter, 1
Parts that accompany the text rather than belong to it: explanatory statement, annexes, opinions appended by other committees. Collapsed.
Annex: declaration of input 4 blocks
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion declares that she included in his draft opinion input on matters pertaining to the subject of the file that she received, in the preparation of the draft opinion, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:
| 1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register |
| Cleantech for Europe |
| Green Power Denmark |
| Confederation of Danish Industry |
| T&E |
| DANVA |
| BUSINESSEUROPE |
| Climate Strategy & Partners |
| WWF, Birdlife |
| The European Investment Bank (EIB) |
| European Association of long term investors (ELTI) |
| 2. Representatives of public authorities of third countries, including their diplomatic missions and embassies |
Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for opinion declares that she has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.
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- Data source
- Licensed CC BY 4.0.
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- 25 September 2026
Cite as
European Parliament (2026). “DRAFT OPINION on the proposal for a regulation of the European Parliament and of the Council establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities”. Text, 3 February 2026. docId ENVI-PA-784252. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/ENVI-PA-784252 (retrieved 25 September 2026). Data: EP Open Data API: document record, https://data.europarl.europa.eu/api/v2/documents/ENVI-PA-784252 (CC BY 4.0). BibTeX
@misc{epw-text-envi-pa-784252,
author = {{European Parliament}},
title = {{DRAFT OPINION on the proposal for a regulation of the European Parliament and of the Council establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities}},
year = {2026},
date = {2026-02-03},
howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/ENVI-PA-784252}},
url = {https://news.eu-parl.st-solutions.dev/texts/ENVI-PA-784252},
urldate = {2026-09-25},
publisher = {EU Parl Watch Research},
note = {Text. docId ENVI-PA-784252. Data: EP Open Data API: document record (CC BY 4.0)}
}