Explanatory Memorandum to COM(2020)320 - Amendment of Decision 2008/376/EC on adoption of the Research Programme of the Research Fund for Coal & Steel and on the multiannual technical guidelines for this programme - Main contents
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| dossier | COM(2020)320 - Amendment of Decision 2008/376/EC on adoption of the Research Programme of the Research Fund for Coal & Steel and on the ... |
|---|---|
| source | COM(2020)320  |
| date | 16-07-2020 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The purpose of this proposal is to amend the Council Decision 2008/376/EC 1 in order to align it ‘with the scientific, technological and political objectives of the Community’ according to Article 2 of Council Decision 2008/376/EC itself. More in detail, the present proposal has the objective to revise the coal and steel research objectives of the Research Programme of the Research Fund for Coal and Steel (‘RFCS Research Programme’). The proposal took into account recommendations contained in the RFCS monitoring and assessment report (2011-2017) 2 as well as the advice of the Coal and Steel Advisory Groups 3 and of the Member States represented in the Coal and Steel Committee 4 .
This Commission’s proposal aims at bringing the RFCS Research Programme in line with the Paris Agreement 5 , the Commission’s European Green Deal 6 , the Sustainable Europe Investment Plan Communications 7 , the New Circular Economy Action Plan 8 and the Commission’s New Industrial Strategy for Europe 9 .
·Updating the coal research objectives in line with the Commission’s climate, energy and environmental targets. It also aims at achieving carbon neutrality by 2050 and the ‘do no harm principle’ enshrined in the European Green Deal Communication.
·Supporting a fair and just transition for coal regions in line with the principles of the Just Transition Mechanism.
·Revising the steel research objectives in order to prioritize near zero carbon steelmaking technologies, applications and use.
·Providing for the possibility of implementing a part of the RFCS Research Programme through co-programmed European Partnerships.
·Replacing a special regime for experts under the research framework programme by the general rules on remunerated external experts laid down in the Financial Regulation 10 .
• Consistency with existing policy provisions in the policy area
The proposal is part of a legal package revising the RFCS Research Programme. In particular, it is linked to the Commission’s proposals to amend Council Decision 2003/76/EC 11 establishing the measures necessary for the implementation of Protocol (No 37) 12 and Council Decision 2003/77/EC 13 laying down the multiannual financial guidelines for managing the assets of the European Coal and Steel Community (ECSC) in liquidation and, on completion of the liquidation, the assets of the RFCS. The revision of Council Decision 2003/77/EC, under Directorate-General Budget’s responsibility, is also consistent with the European Court of Auditors 2019 Review on the winding-up of the ECSC 14 .
• Consistency with other Union policies
On 11 December 2019, the European Commission adopted ‘The European Green Deal’ 15 Communication setting the framework to transform the EU into the first climate-neutral continent by 2050. The European Green Deal tackles the climate and environmental challenges while developing a modern, resource-efficient and competitive economy, in the framework of the United Nation’s 2030 Agenda and the sustainable development goals 16 .
The European Green Deal Communication stresses the Commission’s interest to ‘support clean steel breakthrough technologies leading to a zero-carbon steel making process by 2030 and (…) to explore whether part of the funding being liquidated under the European Coal and Steel Community can be used. More broadly, the EU Emissions Trading System Innovation Fund will help to deploy such large-scale innovative projects’ 17 .
Moreover, the Communication ‘European Green Deal Investment Plan. Sustainable Europe Investment Plan’, presented on 14 January 2020, committed the Commission to ‘propose a revision of the Regulations on the Research Fund for Coal and Steel in order to enable the use of a portion of the European Steel and Coal Community assets in liquidation. This will allow to maintain the annual RFCS Research Programme 18 of at least EUR 40 million as well as to enable the funding of large clean steelmaking R&I breakthrough projects. Research activities in the coal sector will focus on regions in transition in line with the principles of the Just Transition Mechanism’ 19 .
The present proposal is also in line with the 2018 Communication ‘A Clean Planet for All’ 20 , which sets out the European Commission’s strategic long-term vision for a climate-neutral economy, in accordance with the Paris Agreement. This Communication envisaged that the Commission would explore how the assets of the European Coal and Steel Community in liquidation could support breakthrough technologies for low-carbon steelmaking. The Commission has adopted on 4 March 2020 a Proposal for a European Climate law, including a legally binding target of net zero greenhouse gas emissions by 2050 in the EU 21 .
This revision also takes into account the need to fuel private and public investment in research, innovation and new technologies developing solutions for a more competitive and sustainable industry, as stressed in the 2016 Commission’s Communication ‘Steel: Preserving sustainable jobs and growth in Europe’ 22 .
In view of the above policy development, it is necessary to harmonize the RFCS Research Programme’s objectives and its multiannual technical guidelines with the above policy developments, and in particular with the objectives of the European Green Deal.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The legal basis is the second paragraph of Article 2 of Protocol (No 37) on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel, annexed to the Treaties.
• Subsidiarity (for non-exclusive competence)
The proposed amendments to the RFCS Research Programme can only be made at EU level, through the revision of the legal basis.
• Proportionality
The proposal is necessary for establishing the measures necessary for the implementation of the Protocol, annexed to the EU Treaties, on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel.
• Choice of the instrument
Having regard to the second paragraph of Article 2 of Protocol (No 37), Council Decision 2008/376/EC can be amended by the Council acting by qualified majority on a proposal from the Commission and after consulting the European Parliament.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Ex-post evaluations/fitness checks of existing legislation
The proposal is based on results of the seven-year report, which carries out a monitoring exercise of the RFCS Research Programme, including an assessment of the expected benefits, with the assistance of a panel of qualified experts 23 . The most recent seven yearly report was published on 5 February 2020 24 . The experts analysed the functioning of the RFCS Research Programme, assessed the technological developments and expected benefits of the programme to the sector and society, and drew recommendations for the improvement of the programme, including a revision of the legal basis.
• Stakeholder consultations
The RFCS stakeholders have been involved in several ad-hoc meetings, specific Advisory Group meetings (Coal Advisory Group - CAG, Steel Advisory Group - SAG) and COSCO meetings (equivalent to the Programme Committee in Horizon 2020).
• Collection and use of expertise
The preliminary results of the present RFCS monitoring and assessment report were illustrated in the seminar “Steel and Coal: A New Perspective. European Research and Innovation in Action” hosted by the European Commission on 28 March 2019 where more than 100 stakeholders were present 25 .
• Impact assessment
An impact assessment is not necessary for the proposed revision.
• Regulatory fitness and simplification
The proposal is based on the results of the RFCS monitoring and assessment seven year report, which foresees a regular review of the RFCS Research Programme, including an assessment of the expected benefits.
• Fundamental rights
The proposal is in line with the protection of fundamental rights.
4. BUDGETARY IMPLICATIONS
The proposal does not create any new liabilities to be charged to the General Budget under the current MFF.
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
A monitoring and assessment of the implementation of the RFCS programme will be carried out in 2027.
• Explanatory documents (for directives)
Not applicable.
• Detailed explanation of the specific provisions of the proposal
The revision regards the provisions contained in Chapter II, Sections 1, 3 and 4 of Council Decision 2008/376/EC (Article 2 and Articles 4 – 10). The revision also proposes to update Articles 28, 39 and 41. Finally, it is proposed to add a new Article 17a among the eligible activities set out in Chapter III, Section 2.
·update of the coal research objectives (Articles 4, 5, 6, 7) in line with the European Green Deal and the Just Transition Mechanism;
·update of the steel research objectives (Articles 8, 9, 10 and 10a) in line with the European Green Deal and Sustainable Europe Investment Plan;
·insert a new Article 17a among the RFCS Research Programme’s eligible activities in order to include research activities under co-programmed European partnerships among the fundable activities. Such partnerships could especially support research in the steel sector by developing near zero-carbon steel production processes by 2030, and through upscaling demonstrators of these technologies at industrial level;
·repeal a reference to the consultation of the Committee (Articles 28 and 41) where the estimated amount of the European Union contribution under the RFCS Research Programme is equal to or more than EUR 0,6 million;
·make applicable the general rules on remunerated external experts laid down in the Financial Regulation, instead of a special regime for experts under the research framework programme;
·repeal a reference to the possibility of amending Sections 3 and 4 of Chapter II by means of implementing measures (Article 41), in order to apply mutatis mutandis the principles applicable to empowerments given in legislative acts which are set out in the Interinstitutional Agreement of 18 June 2019 on non-binding criteria for the application of Articles 290 and 291 of the Treaty on the Functioning of the European Union 26 .