Guide to EU Funding 2023 Edition PDF

EPRS EUROPEAN PARLIAMENTARY RESEARCH SERVICE GUIDE TO EU FUNDING 2023 EDITION The many useful hyperlinks contained in this guide can be accessed in its pdf version, available at the address below or by scanning the QR code. http://www.europarl.europa.eu/EPRS/Funding_Guide.pdf EPRS EUROPEAN PARLIAMENTARY RESEARCH SERVICE GUIDE TO EU FUNDING 2023 EDITION EDITOR This guide has been drawn up by the Members' Research Service of the European Parliamentary Research Service (EPRS). Contact: [email protected] AUTHORS Vasilis Margaras, Balázs Széchy, EPRS. LANGUAGE VERSIONS Original: EN Translations: in preparation. DISCLAIMER AND COPYRIGHT This document is prepared for, and addressed to, the Members and staff of the European Parliament as background material to assist them in their parliamentary work. The content of the document is the sole responsibility of its author(s) and any opinions expressed herein should not be taken to represent an official position of the Parliament. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy. Brussels © European Union, 2023. Cover: View of the Charilaos Trikoupis bridge Rio-Antirio in Greece © bigguns/Adobe Stock PE: 747.110 PDF Printed ISBN: 978-92-848-0552-5 978-92-848-0553-2 DOI: 10.2861/392040 10.2861/145791 CAT: QA-04-23-459-EN-N QA-04-23-459-EN-C CONTENTS ACRONYMS AND PROGRAMMES......................................................................................7 INTRODUCTION................................................................................................................... 10 EU REGIONAL POLICY: EU-FUNDED PROJECTS IN ALL EU REGIONS.............. 11 European Regional Development Fund (ERDF)..................................................... 13 Cohesion Fund................................................................................................................... 16 European Social Fund Plus (ESF+)............................................................................... 19 Just Transition Fund......................................................................................................... 20 REACT-EU............................................................................................................................. 22 Other facilitating funds and tools and instruments for regional development............................................................................................. 23 EUROPEAN TERRITORIAL COOPERATION (INTERREG).......................................... 34 European Grouping of Territorial Cooperation...................................................... 36 Macro-regional strategies.............................................................................................. 37 AGRICULTURE, RURAL DEVELOPMENT........................................................................ 40 Direct income support for farmers and market measures................................. 42 Rural development........................................................................................................... 43 Research and innovation opportunities in agriculture....................................... 45 Other opportunities related to farming.................................................................... 45 TRANSPORT............................................................................................................................ 46 Connecting Europe Facility for Transport................................................................. 46 TOURISM.................................................................................................................................. 50 Recovery and Resilience Facility.................................................................................. 51 European Regional Development Fund and Cohesion Fund (ERDF/CF)...... 51 European Social Fund Plus (ESF+)............................................................................... 52 European Agricultural Fund for Rural Development............................................ 52 European Maritime, Fisheries and Aquaculture Fund (EMFF)........................... 52 LIFE programme................................................................................................................ 52 Horizon Europe.................................................................................................................. 52 Creative Europe programme......................................................................................... 52 Erasmus+.............................................................................................................................. 53 Just Transition Fund......................................................................................................... 53 GUIDE TO EU FUNDING – 2023 EDITION 5 Digital Europe programme............................................................................................ 53 Single Market programme............................................................................................. 53 InvestEU................................................................................................................................ 53 FISHERIES................................................................................................................................. 54 European Maritime, Fisheries and Aquaculture Fund (EMFAF)........................ 54 NEXT GENERATION EU (NGEU) FOR POST-COVID RECOVERY, HEALTH, SUSTAINABLE AND DIGITAL TRANSITION.................................................................. 59 Recovery and Resilience Facility.................................................................................. 61 InvestEU................................................................................................................................ 63 Technical Support Instrument...................................................................................... 69 EMPLOYMENT, SOCIAL AFFAIRS AND INCLUSION.................................................. 71 European Social Fund Plus (ESF+)............................................................................... 71 Other instruments............................................................................................................ 76 MIGRATION AND BORDER MANAGEMENT................................................................ 79 Asylum, Migration and Integration Fund (AMIF)................................................... 79 Integrated Border Management Fund (IBMF)......................................................... 82 SECURITY AND DEFENCE.................................................................................................. 85 Internal Security Fund (ISF)............................................................................................ 85 European Defence Fund (EDF)..................................................................................... 87 CIVIL PROTECTION, PROTECTION FROM NATURAL DISASTERS....................... 89 EU Civil Protection Mechanism and rescEU............................................................. 89 Solidarity and Emergency Aid Reserve (SEAR)....................................................... 91 CULTURE, EDUCATION, YOUTH, SPORT....................................................................... 92 Creative Europe.................................................................................................................. 92 Erasmus+............................................................................................................................100 European Solidarity Corps...........................................................................................106 Youth Pass..........................................................................................................................107 European Youth Portal..................................................................................................107 Electronic Platform for Adult Learning in Europe (EPALE)................................108 COSME Programme: Erasmus for Young Entrepreneurs...................................108 6 EPRS | European Parliamentary Research Service Sport....................................................................................................................................109 Youth employment.........................................................................................................113 CIVIL RIGHTS, LIBERTIES AND JUSTICE......................................................................114 Citizens, Equality, Rights and Values (CERV) programme................................114 Justice programme.........................................................................................................118 Gender equality and equal opportunities in other EU funds..........................119 PROTECTION OF THE FINANCIAL INTERESTS OF THE EU, FIGHT AGAINST FRAUD...................................................................................................122 Fiscalis programme........................................................................................................122 CUSTOMS programme..................................................................................................123 EU anti-fraud programme............................................................................................124 Protection of the euro against counterfeiting – Pericles IV.............................125 ENVIRONMENT LIFE...........................................................................................................127 Other sources of funding related to environmental projects.........................131 Research Fund for Coal and Steel..............................................................................134 RESEARCH, INNOVATION AND ICT..............................................................................136 Horizon Europe................................................................................................................136 Euratom research and training programme..........................................................139 The European space programme..............................................................................140 ICT and broadband in cohesion policy...................................................................143 CEF Telecom......................................................................................................................143 ENERGY...................................................................................................................................145 Cohesion Fund.................................................................................................................146 Connecting Europe Facility (CEF) support for the energy sector..................146 European Regional Development Fund.................................................................147 Horizon Europe................................................................................................................147 InvestEU..............................................................................................................................148 LIFE.......................................................................................................................................149 Just Transition Mechanism..........................................................................................149 Modernisation Fund.......................................................................................................150 European Investment Bank.........................................................................................151 GUIDE TO EU FUNDING – 2023 EDITION 7 Innovation Fund..............................................................................................................152 European Energy Efficiency Fund.............................................................................152 Recovery and Resilience Facility................................................................................153 REPowerEU: affordable, secure and sustainable energy for Europe.............154 HEALTH...................................................................................................................................155 EU4Health..........................................................................................................................155 The EU's response to the coronavirus pandemic................................................157 FOREIGN POLICY AND ENLARGEMENT.....................................................................161 Common foreign and security policy......................................................................161 Overseas countries and territories............................................................................162 Pre-accession assistance – IPA III...............................................................................163 European Instrument for International Nuclear Safety Cooperation...........165 DEVELOPMENT AND HUMANITARIAN AID..............................................................167 Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI – Global Europe)........................................167 Humanitarian aid.............................................................................................................169 EU SUPPORT FOR UKRAINE...........................................................................................170 EU-Ukraine relations 2014-2021................................................................................170 EU support for Ukraine since the 2022 Russian invasion..................................171 EU BUDGET IN NUMBERS................................................................................................175 GETTING UPDATED INFORMATION ON EU FUNDING.........................................178 Further advice on how to apply for EU funding...................................................178 PHOTO CREDITS..................................................................................................................179 8 EPRS | European Parliamentary Research Service ACRONYMS AND PROGRAMMES AMIF Asylum, Migration and Integration Fund CAP Common agricultural policy CEF Connecting Europe Facility (for transport infrastructure) CF Cohesion Fund CFP Common fisheries policy COSME Europe's programme for small and medium-sized enterprises DEVCO European Commission's Directorate-General for International Cooperation and Development EAFRD European Agricultural Fund for Rural Development EaSI EU programme for employment and social innovation EBRD European Bank for Reconstruction and Development ECHO EU Humanitarian Aid and Civil Protection EEEF European Energy Efficiency Fund EEPR European Commission's European energy programme for recovery EFSI European Fund for Strategic Investments EGF European Globalisation Adjustment Fund EGTC European Grouping of Territorial Cooperation EIAH European Investment Advisory Hub EIB European Investment Bank EIF European Investment Fund EIP-AGRI European Innovation Partnership for agricultural productivity and sustainability EIT European Institute of Innovation and Technology ELENA European local energy assistance EMFF European Maritime and Fisheries Fund EMN European Migration Network ENRD European Network for Rural Development GUIDE TO EU FUNDING – 2023 EDITION EPALE Electronic Platform for Adult Learning in Europe Erasmus+ EU programme for education, training, youth and sport ERDF European Regional Development Fund ESF+ European Social Fund Plus ESIF European structural and investment funds ESPON European Observation Network for Territorial Development and Cohesion ETC European territorial cooperation EURES European Jobs Network EUSAIR EU strategy for the Adriatic-Ionian region EUSALP EU strategy for the Alpine Region EUSBSR EU strategy for the Baltic Sea Region EUSDR EU strategy for the Danube region EUSF EU Solidarity Fund EVS European Voluntary Service FEAD Fund for Aid to the Most Deprived FPI Foreign Policy Instruments GMES Global Monitoring for Environment and Security GNI Gross National Income H2020 European Commission's Horizon 2020 programme for research and innovation ICT Information and Communications Technology INEA Innovation and Networks Executive Agency IPA Instrument for Pre-accession Assistance IPARD Pre-Accession Assistance in Rural Development ISF Internal Security Fund ITER International Thermonuclear Experimental Reactor JASPERS Joint assistance to support projects in European regions JESSICA Joint European support for sustainable investment in city areas JRC European Commission's Joint Research Centre EPRS | European Parliamentary Research Service LEADER 'Liaison Entre Actions de Développement de l'Économie Rurale' LIFE+ EU's Financial Instrument for the Environment MFFR Multiannual Financial Framework Regulation NEET Young person not in education, employment or training NGO Non-Governmental Organisation PROGRESS EU programme for employment and social policies REACT EU Recovery Assistance for Cohesion and the Territories of Europe R&I Research and innovation RDP Rural Development Programmes REA Research Executive Agency RFCS Research Fund for Coal and Steel RTP Research and Training Programme SME Small and medium-sized enterprise TEN-T Trans-European Transport Network TEN-E Trans-European Energy Network TFEU Treaty on the Functioning of the European Union URBACT EU programme for integrated urban development VCS Voluntary Coupled Support (in farming) VET Vocational Education and Training YEI Youth Employment Initiative GUIDE TO EU FUNDING – 2023 EDITION INTRODUCTION This guide has been put together fundraisers map out their course of to serve as a source of information action as precisely as possible, based for regional and local authorities, on this information. Fundraisers need NGOs, businesses, professionals and to be aware that applying for EU citizens on how to access funding for funding requires careful planning and their projects from a number of EU good timing. Advice from specialised funds. It covers financing under the staff may also be helpful for some EU's 2021-2027 budget (multiannual applicants. Each section of the guide financial framework) as well as the Next features a non-exhaustive list of the key Generation EU temporary instrument potential beneficiaries. set up to stimulate the EU's recovery We hope that this guide will give from the coronavirus pandemic. you an introduction to EU funding The funds are listed in a simple way and opportunities, from which you could are accompanied by short descriptions then in turn apply to secure support highlighting the opportunities they for projects in your work or community. offer. To facilitate research, the authors have split up the main funding themes into subsections and provided hyperlinks to ensure easier access to the sources of funding information. Depending on the nature, scope and priorities of the project for which funding is sought, EU funds can be explored for the funding opportunities they may offer. As multiple calls for funding are published on a regular basis, it is important to check for such opportunities often and to keep an eye on the national and EU sites that provide relevant information. The guide presents essential information on EU funding sources, with the ambition to help potential 12 EPRS | European Parliamentary Research Service EU REGIONAL POLICY: EU-FUNDED PROJECTS IN ALL EU REGIONS European Union (EU) cohesion policy targets all EU regions and cities to support job creation, business competitiveness, economic growth and sustainable development, and to improve citizens' quality of life. It is delivered through the following funds: the European Regional Development Fund (ERDF), which invests in the social and economic development of all EU regions and cities; the Cohesion Fund (CF), which invests in environment and transport in the less prosperous EU countries; the European Social Fund Plus (ESF+), which supports jobs and creates a fair and socially inclusive society in EU countries; the Just Transition Fund (JTF), which supports the regions most affected by the transition towards climate neutrality; the Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU), which addresses the effects of the coronavirus pandemic on the economic situation of EU regions. GUIDE TO EU FUNDING – 2023 EDITION 13 Cohesion policy covers every region in the EU. However, most of the funds are targeted where they are most needed: at regions with per capita gross domestic product (GDP) under 75 % of the EU average. ERDF and ESF+ funding is allocated to three categories of regions (less developed, more developed, in transition). Some countries benefit from the Cohesion Fund, some regions with specific needs receive dedicated funding (for instance, outermost regions and regions – such as cross-border areas, mountains, islands and sparsely populated areas – that face severe and permanent geographical or demographic challenges). All EU countries can benefit from the Just Transition Fund, but its funding is primarily destined for the regions that are most strongly affected by the transition from fossil fuels to cleaner forms of energy. For the 2021-2027 period, EU cohesion policy set a list of five policy objectives supporting growth: 1. A more competitive and smarter Europe; 2. A greener, low-carbon transitioning towards a net zero carbon economy; 3. A more connected Europe by enhancing mobility; 4. A more social and inclusive Europe; 5. Europe closer to citizens by fostering the sustainable and integrated development of all types of territories. Funds' priorities The European Regional Development Fund supports investments under all five policy objectives (POs), but Policy Objectives 1 and 2 are the main priorities. Policy Objective 4 is the main priority of the European Social Fund+. The Cohesion Fund supports policy objectives 2 and 3. The Just Transition Fund provides support under dedicated specific objectives. Potential beneficiaries: local, regional and national authorities and administrative bodies; social, cultural and educational institutions; workers' and employers' organisations, as well as organisations providing training, support for workers, labour market support; NGOs and charities; 14 EPRS | European Parliamentary Research Service public administrations and municipal institutions; companies, small and medium-sized enterprises (SMEs), including micro-enterprises and social economy enterprises and associations. To obtain further information, potential beneficiaries should contact the national and regional managing authority responsible for coordinating EU funds in their country/region. Beneficiaries may vary according to the priority strands of each project and the major priorities set by the individual Member States. European Regional Development Fund (ERDF) The ERDF contributes to reducing disparities between the levels of development of the various regions within the EU. Particular attention is paid to the structural adjustment of regions whose development is lagging behind and to the conversion of declining industrial regions, including by promoting sustainable development and addressing environmental challenges. Over the 2021-2027 period, the fund will contribute to the following: Making a more competitive and smarter Europe, through innovation and support to small and medium-sized businesses, as well as digitalisation and digital connectivity: developing and enhancing research and innovation capacities and the uptake of advanced technologies; reaping the benefits of digitalisation for citizens, companies, research organisations and public authorities; enhancing sustainable growth and competitiveness of SMEs and job creation in SMEs, including by productive investments; developing skills for smart specialisation, industrial transition and entrepreneurship; enhancing digital connectivity. GUIDE TO EU FUNDING – 2023 EDITION 15 Creating a greener, low-carbon transitioning towards a resilient Europe with a net zero carbon economy, by promoting a clean and fair energy transition, green and blue investment, the circular economy, climate change mitigation and adaptation, risk prevention and management, and sustainable urban mobility: promoting energy efficiency and reducing greenhouse gas emissions; promoting renewable energy in accordance with Directive (EU) 2018/2001, including the sustainability criteria set out therein; developing smart energy systems, grids and storage outside the Trans-European Energy Network (TEN-E); promoting climate change adaptation and disaster risk prevention and resilience, taking into account eco-system based approaches; promoting access to water and sustainable water management; promoting the transition to a circular and resource efficient economy; enhancing protection and preservation of nature, biodiversity and green infrastructure, including in urban areas, and reducing all forms of pollution; promoting the production and distribution of energy derived from renewable sources; promoting sustainable multimodal urban mobility, as part of transition to a net zero carbon economy. A more connected EU through the enhancement of mobility: developing a climate-resilient, intelligent, secure, sustainable and intermodal Trans-European Transport Network (TEN-T); developing and enhancing sustainable, climate-resilient, intelligent and intermodal national, regional and local mobility, including improved access to TEN-T and cross-border mobility. A more social and inclusive Europe and a more successfully implemented European Pillar of Social Rights: enhancing the effectiveness and inclusiveness of labour markets and access to quality employment through developing social infrastructure and promoting social economy; improving equal access to inclusive and quality services in education, training and lifelong learning developing accessible infrastructure, including by fostering resilience for distance and online education and training; 16 EPRS | European Parliamentary Research Service promoting the socioeconomic inclusion of marginalised communities, low income households and disadvantaged groups, including people with special needs, through integrated action, including housing and social services; promoting the socioeconomic integration of third-country nationals, including migrants, through integrated actions, including housing and social services; ensuring equal access to health care and fostering the resilience of health systems, including primary care, and promoting the transition from institutional to family-based and community-based care; enhancing the role of culture and sustainable tourism in economic development, social inclusion and social innovation. A Europe that stands closer to the citizens by fostering the sustainable and integrated development of all types of territories and local initiatives: fostering integrated and inclusive social, economic and environmental development, culture, natural heritage, sustainable tourism and security in urban and non-urban areas. ERDF investments are focused on several key priority areas. This is known as 'thematic concentration'. Depending on the level of their wealth, regions and Member States use varying amounts of funding to address the five policy objectives. All regions and Member States will also concentrate at least 8 % of their allocation to urban development delivered through local development partnerships using different tools. Operations under the ERDF are also expected to contribute 30 % of the overall financial envelope to climate objectives. The ERDF will also support investments in infrastructure; activities for applied research and innovation, including industrial research, experimental development and feasibility studies; investments in access to services; productive investments in SMEs and investments aiming at safeguarding existing jobs and creating new jobs; equipment, software and intangible assets; networking, cooperation, exchange of experience and activities involving innovation clusters, including between businesses, research organisations and public authorities; information, communication and studies; and technical assistance. The ERDF will also support training, lifelong learning, reskilling and education activities. The ERDF may GUIDE TO EU FUNDING – 2023 EDITION 17 support the financing of working capital in SMEs in the form of grants, where strictly necessary as a temporary measure to respond to exceptional or unusual circumstances. Potential beneficiaries: local, regional and national authorities and administrative bodies; non-government organisations (NGOs), associations and foundations; enterprises and SMEs. Cohesion Fund The Cohesion Fund (CF) aims to reduce economic and social disparities and to promote sustainable development. The Cohesion Fund and the European Regional Development Fund share certain limitations that will be mentioned below. The Cohesion Fund strengthens the economic, social and territorial cohesion of the EU and its sustainable development by providing support to Member States with a gross national income per inhabitant below 90 % of the EU average. The Cohesion Fund mainly focuses on capital-intensive environmental and transport investments: environmental: the Cohesion Fund supports sustainable development- and energy-related investments that offer environmental benefits, with a particular focus on renewable energy. In that context, the Cohesion Fund also supports combined energy and seismic retrofitting; transport: attention is given to Trans-European Transport Networks (TEN-T), notably priority projects of EU interest as identified by the EU. The Cohesion Fund also supports infrastructure projects under the Connecting Europe Facility. The Cohesion Fund is expected to contribute towards the EU's climate objectives by dedicating 37 % of its overall financial allocation to activities and efforts aimed at attaining them. 18 EPRS | European Parliamentary Research Service Cohesion Fund specific objectives A greener, low-carbon economy transitioning towards a resilient Europe with a net zero carbon economy, by promoting a clean and fair energy transition, green and blue investment, the circular economy, climate change mitigation and adaptation, risk prevention and management, and sustainable urban mobility. This would happen by means of: promoting energy efficiency and reducing greenhouse gas emissions; promoting renewable energy in accordance with Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources, including the sustainability criteria set out therein; developing smart energy systems, grids and storage outside the Trans-European Energy Network (TEN-E); promoting climate change adaptation and disaster risk prevention and resilience, taking into account eco-system based approaches; promoting access to water and sustainable water management; promoting the transition to a circular and resource efficient economy; enhancing protection and preservation of nature, biodiversity and green infrastructure, including in urban areas, and reducing all forms of pollution; promoting the production and distribution of energy derived from renewable sources; promoting sustainable multimodal urban mobility, as part of transition to a net-zero carbon economy. A more connected EU through the enhancement of mobility. This would happen by means of: developing a climate resilient, intelligent, secure, sustainable and intermodal TEN-T; developing and enhancing sustainable, climate resilient, intelligent and intermodal national, regional and local mobility, including improved access to TEN-T and cross-border mobility. GUIDE TO EU FUNDING – 2023 EDITION 19 As part of its specific objectives, the Cohesion Fund may also support activities under the Investment for jobs and growth goal, whenever they: improve the capacity of programme authorities; improve the capacity of sectoral or territorial players responsible for carrying out activities relevant to the implementation of the Cohesion Fund; enhance cooperation with partners both within and outside a given Member State. Cooperation will include cooperation with partners from cross-border regions, from non-contiguous regions or from regions located in the territory covered by a European Grouping of Territorial Cooperation, a macro-regional or sea-basin strategy or a combination thereof. Activities excluded from the scope of both ERDF and CF support are: decommissioning and construction of nuclear power stations; reduction of greenhouse gas emissions from certain activities; tobacco and tobacco products; certain undertakings in difficulty; airport infrastructure except in outermost regions; disposal of waste in landfill, facilities for the treatment of residual waste; fossil fuels (with the exception of investment in clean vehicles); broadband infrastructure in areas with already good coverage; purchase of rolling stock for use in rail transport, with some exceptions. In addition, the Cohesion Fund does not support investments in housing unless they are related to energy efficiency and renewable energy use. Mode of implementation The fund is delivered under shared management and is governed by the Common Provisions Regulation. The co-legislators establish the level of funding and determine the allocations by Member State and category of region. The Commission adopts the operational programmes and cooperates with Member States' administrations on the implementation. Funding is disbursed in the form of grants, procurements and financial instruments. 20 EPRS | European Parliamentary Research Service Potential beneficiaries: Public and regional authorities in Member States with GNI of less than 90 % of the EU average are eligible for support from the Cohesion Fund. In the funding period 2021-2027, these countries are Bulgaria, Czechia, Croatia, Cyprus, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovenia and Slovakia. European Social Fund Plus (ESF+) The ESF+ is the EU's main instrument for investing in people, with the aim of building a more social and inclusive EU. The ESF+ provides an important contribution to the EU's employment, social, education and skills policies, including the structural reforms in these areas. Being part of the cohesion policy, the ESF+ reinforces its mission to support economic, territorial and social cohesion in the EU by way of reducing disparities between Member States and regions. For the 2021-2027 period, to make things simpler, the ESF has been merged with the Youth Employment Initiative (YEI), the Fund for European Aid to the most Deprived (FEAD) and the directly managed Employment and Social Innovation (EaSI) Programme, to become the ESF+. The aim of the ESF+ is to achieve high employment levels, fair social protection and a skilled and resilient workforce for the future world of work, in line with the principles set out in the European Pillar of Social Rights. The European Social Fund Plus supports the EU's green, digital and resilient recovery from crisis by driving investment in jobs, skills and services. Main objectives of the ESF+ The ESF+ supports: social innovation; investment in young people to help them obtain qualification and a good-quality job, and to improve their education; training and lifelong learning; investment in capacity-building and transnational/cross-border cooperation to strengthen fair working conditions; initiatives fostering equal labour-market opportunities and enhancing labour mobility; GUIDE TO EU FUNDING – 2023 EDITION 21 combating child poverty and helping the most vulnerable in society who are losing their jobs and seeing their incomes reduced; providing food and basic material assistance to the most deprived. For more information on the ESF+ and other opportunities in the area of social affairs, see the section on employment, social affairs and inclusion in this funding guide. Potential beneficiaries: organisations of workers and employers and organisations providing training and support for workers; NGOs and charities, foundations and organisations of a social character; government, municipal and regional authorities; companies and associations; EU citizens, young people and children, people from vulnerable groups. Just Transition Fund The Just Transition Fund (JTF) is the first pillar of the Just Transition Mechanism (JTM). Over the 2021-2027 period, it will be a key tool for providing tailored support to the territories most affected by the transition towards climate neutrality. It is implemented under shared management, within the overall framework of cohesion policy – the main EU policy for reducing regional disparities and addressing structural changes in the EU. The JTF exclusively supports: productive investments in SMEs, including microenterprises and start-ups, leading to economic diversification, modernisation and reconversion; investments in the creation of new firms, including through business incubators and consulting services, leading to job creation; investments in research and innovation activities, including by universities and public research organisations, and fostering the transfer of advanced technologies; investments in the deployment of technology as well as in systems and infrastructure for affordable clean energy, including energy storage technologies, and in greenhouse gas emissions reduction; 22 EPRS | European Parliamentary Research Service investments in renewable energy in accordance with Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources, including the sustainability criteria set out therein, and in energy efficiency, including for the purposes of reducing energy poverty; investments in smart and sustainable local mobility, including decarbonisation of the local transport sector and its infrastructure; rehabilitation and upgrade of district heating networks with a view to improving energy efficiency of district heating systems and investment in heat production, provided that the heat production installations are supplied exclusively by renewable energy sources; investments in digitalisation, digital innovation and digital connectivity; investments in regeneration and decontamination of brownfield sites, land restoration and including, where necessary, green infrastructure and repurposing projects, taking into account the 'polluter pays' principle; investments in enhancing the circular economy, including through waste prevention, reduction, resource efficiency, reuse, repair and recycling; upskilling and reskilling of workers and jobseekers; job-search assistance to jobseekers; active inclusion of jobseekers; technical assistance; other activities in the areas of education and social inclusion including, where duly justified, investments in infrastructure for the purposes of training centres, child- and elderly-care facilities as indicated in territorial just transition plans. The fund seeks to alleviate the socioeconomic costs triggered by climate transition, supporting the economic diversification and reconversion of the territories concerned. This means backing productive investment in SMEs, but also in activities such as the creation of new firms, research and innovation, environmental rehabilitation, clean energy, up- and reskilling of workers, job-search assistance and programmes for the active inclusion of jobseekers, as well as activities involving the transformation of existing carbon-intensive installations when the investment made leads to substantial emission cuts and job protection. It is expected to mobilise close to €30 billion in investment. Member States have prepared, together with the relevant local and regional authorities of the territories concerned, one or more territorial just transition plans covering one or more affected territories corresponding to NUTS level 3 GUIDE TO EU FUNDING – 2023 EDITION 23 regions or parts thereof, in accordance with the template set out in Annex II. Those territories are those most negatively affected, based on the economic and social impacts resulting from the transition, in particular with regard to the expected adaptation of workers or job losses in fossil fuel production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity. The Just Transition Fund is part of the Just Transition Mechanism. Please note that the InvestEU Fund will also provide for a dedicated scheme to generate additional investment to the benefit of just transition territories – those that are the most strongly affected by the socioeconomic consequences of the green transition – in complementarity with the Just Transition Fund and the Public Sector Loan Facility. REACT-EU REACT-EU (Recovery Assistance for Cohesion and the Territories of Europe) is one of the programmes under the new instrument, Next Generation EU. Its funding is a top-up to 2014-2020 programmes and an addition to the cohesion allocations for 2021-2027, bringing the total resources of the structural and investment funds higher than current levels and becoming the highest single-policy grant instrument in the EU budget. In light of the coronavirus pandemic, the REACT- EU package was proposed for the regions most severely hit by the crisis. It also complements two previous coronavirus response investment initiatives delivered through cohesion policy. The allocation method takes into account the impact of the crisis on gross domestic product (GDP) and unemployment in Member States, with an amount earmarked for the outermost regions. REACT-EU supports those Member States and regions that are experiencing the strongest need of crisis repair in the context of the coronavirus pandemic and its social consequences, and are preparing a green, digital and resilient recovery of their economy, with a view to deploying resources quickly to the real economy through the existing operational programmes. These additional resources were to be distributed to Member States in 2021 and 2022 from the European Regional Development Fund (ERDF, the European Social Fund Plus (ESF+), the European Fund for Aid to the Most Deprived (FEAD), as well as the Youth Employment Initiative (YEI). Technical assistance measures can also be financed. In order to provide swift support to regions, expenditure incurred as from 1 February 2020 is eligible. The final date of eligibility for this expenditure is 31 December 2023. 24 EPRS | European Parliamentary Research Service Member States have the flexibility to transfer money between structural funds, programmes and categories of regions. REACT-EU is expected to contribute 25 % of its overall financial resources to climate objectives. In line with its nature as a crisis-repair instrument, REACT-EU provides the Member States a fair amount of flexibility: it does not impose any thematic concentration requirements on them, and allows them to channel the REACT-EU resources they receive to support their ERDF- or ESF+ -funded operations, according to their needs. Member States should continue to pay special attention to people living in rural, border, less developed, insular, mountainous, sparsely populated and outermost regions, as well as in areas affected by industrial transition and depopulation and, where appropriate, use the REACT-EU resources for supporting those people. Member States can also allocate their REACT-EU resources to existing cross-border programmes under the European territorial cooperation goal and technical assistance. Support is available for job maintenance and job creation, skills development, provision of working capital and investment for SMEs, as well as enhancement of the green and digital transition. Funds should be targeted towards sectors most affected by the crisis, such as healthcare, tourism and culture. Other facilitating funds and tools and instruments for regional development Instruments for urban development Next Generation EU Next Generation EU is a more than €800 billion temporary recovery instrument to help repair the immediate economic and social damage brought about by the coronavirus pandemic. Post-COVID-19 Europe will be greener, more digital, more resilient and better fit for the current and forthcoming challenges. Next Generation EU is also bringing additional money to other programmes or funds such as the European Regional Development Fund (ERDF), the European Social Fund (ESF), the European Fund for Aid to the Most Deprived (FEAD), as well as the Youth Employment Initiative (YEI), Horizon 2020, InvestEU, rural development or the Just Transition Fund (JTF). The centrepiece of Next Generation EU, with €723.8 billion in loans and grants available to support reforms and investments undertaken by EU countries, GUIDE TO EU FUNDING – 2023 EDITION 25 is the Recovery and Resilience Facility. The aim is to mitigate the economic and social impact of the coronavirus pandemic and make EU economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions. Member States are working on their recovery and resilience plans to access the funds under the Recovery and Resilience Facility. To find out more about this important fund, see the section on Next Generation EU. The Urban Agenda of the EU The Urban Agenda for the EU is an integrated and coordinated approach to deal with the urban dimension of EU and national policies and legislation. By focusing on concrete priority themes within dedicated partnerships, the Urban Agenda seeks to improve the quality of life in urban areas. The Pact of Amsterdam, agreed upon by the EU ministers responsible for urban matters on 30 May 2016, established the Urban Agenda for the EU. Based on the principles of subsidiarity and proportionality, the Urban Agenda focuses on the three pillars of EU policy-making and implementation: better regulation, better funding and better knowledge. Fourteen partnerships have been defined so far on the following themes: air quality; circular economy; climate adaptation; culture and cultural heritage; digital transition; energy transition; housing; inclusion of migrants and refugees; innovative and responsible public procurement; jobs and skills in the local economy; sustainable use of land and nature-based solutions; urban mobility; urban poverty; security in public spaces. 26 EPRS | European Parliamentary Research Service Each partnership involves, on a voluntary and equal basis, cities, Member States, the European Commission and stakeholders such as NGOs. Together they work on developing and implementing actions to successfully tackle challenges of cities and to contribute to green and digital transitions and other EU objectives. The Urban Agenda of the EU is financed by the European Regional Development Fund and the Cohesion Fund. The European Urban Initiative The legal basis of the European Urban Initiative (EUI) is the European Regional Development Fund/Cohesion Fund regulation for 2021-2027, which also maps out the content and strategic framework of the initiative. The overall objectives of the EUI are i) to strengthen integrated and participatory approaches to sustainable urban development; and ii) to provide a stronger link to EU policies, and in particular to cohesion policy. The initiative is aimed at offering coherent support to cities in the face of the current fragmented landscape of manifold initiatives, programmes and instruments available to them under cohesion policy. The European Urban Initiative is an essential tool to support cities of all sizes, to build capacity and knowledge, to support innovation and develop transferable and scalable innovative solutions to urban challenges of EU relevance. The European Urban Initiative (EUI), funded by the European Union, supports urban areas of all sizes with innovative actions, capacity and knowledge building, as well as policy development and communication on sustainable urban development. This initiative is an essential tool to support cities of all sizes, to build capacity and knowledge, to support innovation and develop transferable and scalable innovative solutions to urban challenges of EU relevance. The EUI provides different levels of assistance: supporting urban authorities with up to 80% direct co-financing, allowing EU cities to experiment as testbeds for their innovative idea and transferring it to other cities; strengthening capacities of cities in the design of sustainable urban development strategies, policies and practices in an integrated and participative way; providing a knowledge environment for cities to ensure easier access to horizontal and thematic knowledge and share the know-how on sustainable urban development. GUIDE TO EU FUNDING – 2023 EDITION 27 TAIEX-REGIO Peer2Peer The TAIEX-REGIO Peer2Peer tool is designed to share expertise between bodies that manage funding under the European Regional Development Fund (ERDF) and the Cohesion Fund. It facilitates exchanges between the national and regional bodies that manage and administer funds from the ERDF and the Cohesion Fund. It helps civil servants share knowledge, good practice and practical approaches with their peers in other EU countries. This way they upgrade their administrative capacity, thereby improving EU investment outcomes. Joint European Support for Sustainable Investment in City Areas (JESSICA) JESSICA is a joint initiative of the European Commission and the European Investment Bank (EIB), in collaboration with the Council of Europe Development Bank (CEB). Member States are given the option of using some of their EU grant funding to make repayable investments in projects forming part of an integrated plan for sustainable urban development. These investments, which may take the form of equity, loans and/or guarantees, are delivered to projects via urban development funds and, if required, holding funds. European Local Energy Assistance (ELENA) ELENA provides technical assistance for energy efficiency and renewable energy investment targeting buildings and innovative urban transport through three different envelopes: energy efficiency; sustainable residential; and urban transport and mobility. Typically, ELENA supports investment programmes above €30 million with a three-year implementation period for energy efficiency (residential projects included) and a four-year period for urban transport and mobility. ELENA encourages and supports the aggregation of different projects to increase their attractiveness for contractors and financers. Activities eligible for ELENA grants include: technical studies, energy audits, business plans and financial advice, legal advice, tendering procedure preparation, project bundling and project management. 28 EPRS | European Parliamentary Research Service URBACT III URBACT is the EU programme for integrated urban development. It enables cities across the EU to develop integrated solutions to common urban challenges by networking, learning from one another's experiences, drawing lessons and identifying good practices to improve urban policies. It is a cohesion policy instrument, co-financed by the European Regional Development Fund, the 27 Member States, Norway and Switzerland. The URBACT III programme is organised around four main objectives: capacity for policy delivery: to improve the capacity of cities to manage sustainable urban policies and practices in an integrated and participative way; policy design: to improve the design of sustainable urban policies and practices in cities; policy implementation: to improve the implementation of integrated and sustainable urban strategies and actions in cities; building and sharing knowledge: to ensure that practitioners and decision-makers at all levels have access to knowledge and share know- how on all aspects of sustainable urban development in order to improve urban development policies. To reach these objectives, URBACT III implements three types of interventions: 1. transnational exchanges; 2. capacity-building; 3. capitalisation and dissemination. Joint Assistance to Support Projects in European Regions (JASPERS) JASPERS is a technical assistance partnership between the European Commission, the EIB and the EBRD. It provides independent advice to beneficiary countries to help prepare high-quality major projects to be co-financed by two EU structural and investment funds (the ERDF and the Cohesion Fund). GUIDE TO EU FUNDING – 2023 EDITION 29 JASPERS' assistance may cover: project preparation; support, from identification to submission of the request for EU grant finance; independent quality review of projects; post-submission appraisal function for all major projects submitted directly to the EU Commission; horizontal assignments and strategic support; capacity-building, including a competence centre; implementation support; Connecting Europe Facility projects, mainly in the rail and road sectors; the activities of the European Investment Advisory Hub (EIAH) through the screening and handling of requests. This brochure provides further information about JASPERS as well as how to apply for funding under this partnership. Potential beneficiaries: Cities, municipalities, political and administrative institutions with policy- related authority. Rural and coastal development instruments LEADER is a local development method that has been used for 30 years to engage local players in the design and delivery of strategies, decision-making and resource allocation for the development of their rural areas. It is implemented by around 2 800 Local Action Groups (LAGs), covering 61 % of the rural population in the EU and bringing together public, private and civil-society stakeholders in a particular area. In the rural development context, LEADER is implemented under the national and regional rural development programmes (RDPs) of each EU Member State. You can follow the work of the permanent LEADER/CLLD Sub-group operating within the framework of the European Rural Networks' Assembly. A database lists all of the Local Action Groups (LAGs) across the EU by Member State. The European Network for Rural Development (ENRD) serves as a hub for exchange of information on how rural development policy, programmes, projects and other initiatives are working in practice and how they can be improved to achieve more. The ENRD supports the effective implementation 30 EPRS | European Parliamentary Research Service of EU Member States' rural development programmes (RDPs) by generating and sharing knowledge, as well as by facilitating information exchange and cooperation across rural Europe. These activities are facilitated by two support units: the ENRD Contact Point and the European Evaluation Helpdesk for Rural Development. A dedicated webpage offers news about the network and its activities. In areas where fishing and aquaculture play an important role in the local economy, financing can be made available to fund Fisheries Local Action Groups (FLAGs), which also include the relevant fisheries-related stakeholders. Designing their own local development strategies, each LAG or FLAG engages community members in thinking through the most pressing economic, social and environmental priorities for their area, and how best to tackle them. Staff are on hand to help people develop project ideas and a budget is available to fund local initiatives considered important for the area's development (e.g. investing in new businesses, services, activities, training, awareness-raising, etc.). For further information on subsidies and EU aid in the area of agriculture, see the section on Agriculture – Rural Development and the one on Fisheries, as well as the next section of the funding guide. The New European Bauhaus initiative The New European Bauhaus initiative connects the European Green Deal to our daily lives and living spaces. It calls on all Europeans to imagine and build together a sustainable and inclusive future that is beautiful for our eyes, minds and souls. By creating bridges between different backgrounds, cutting across disciplines and building on participation at all levels, the New European Bauhaus inspires a movement to facilitate and steer the transformation of our societies along three inseparable values: sustainability: from climate goals to circularity, zero pollution and biodiversity; aesthetics: quality of experience and style beyond functionality; inclusion: from valuing diversity to securing accessibility and affordability. The New European Bauhaus brings citizens, experts, businesses, and institutions together to reimagine sustainable living in Europe and beyond. In addition to creating a platform for experimentation and connection, the initiative supports positive change also by providing access to EU funding for beautiful, sustainable and inclusive projects. GUIDE TO EU FUNDING – 2023 EDITION 31 The links below provide information on the different EU funding opportunities under the initiative. Several calls for proposals are presented according to the main type of impact they seek. Mobilising EU programmes for the transformation of places on the ground: these programmes are fully dedicated or partially contribute to the New European Bauhaus calls for proposals aimed at supporting the transformation of the built environment and associated lifestyles at local level. Mobilising EU programmes for the transformation of the enabling environment for innovation: these programmes are fully dedicated or partially contributing to the New European Bauhaus calls for proposals aimed at supporting innovation seeking to integrate sustainability, inclusion and aesthetics in new solutions and products. Mobilising EU programmes for the diffusion of new meanings: fully dedicated or contributing to the New European Bauhaus calls for proposals aimed at facilitating a process of questioning our perspectives and mind-set around the values of aesthetics, sustainability and inclusion. Support to the Turkish Cypriot community The main objective of the programme is to facilitate the reunification of Cyprus by encouraging the economic development of the Turkish Cypriot community, with particular emphasis on the economic integration of the island, improvement of contacts between the two communities and with the EU, and preparation for the adoption of the body of EU law (the EU acquis) following a comprehensive settlement of the Cyprus issue. The aid programme fosters reunification efforts through a number of specific actions, including: the promotion of social and economic development in the Turkish Cypriot community; infrastructure investments; reconciliation, confidence-building and support for civil society; bringing the Turkish Cypriot community closer to the EU, including by helping with preparations for the implementation of EU law once a comprehensive settlement of the Cyprus issue is agreed. 32 EPRS | European Parliamentary Research Service The aid programme finances studies, services, supplies and work supporting the economic development of the Turkish Cypriot community. The budget is implemented both through direct management by the Commission and through indirect management (through international organisations and Member State agencies). Funding is disbursed in the form of grants, procurements and contribution agreements with international organisations and Member State agencies. Potential beneficiaries: The Turkish Cypriot community is the ultimate beneficiary, represented, among others, by: non-governmental organisations; small and medium-sized enterprises; farmers; students; teachers. Brexit Adjustment Reserve The withdrawal of the United Kingdom (UK) from the EU has affected EU Member States and their regions in different ways. Some Member States, regions, sectors or local communities have been more affected than others. This is why the Brexit Adjustment Reserve was designed to support all Member States while ensuring a strong concentration on those most affected. Support is provided to counter the adverse economic, social, territorial and, where appropriate, environmental consequences of the UK's withdrawal from the EU. There is no advance programming or planning of measures; furthermore, the reserve provides for flexibility in the implementation and operates in line with the subsidiarity principle. The Brexit Adjustment Reserve Regulation entered into force in October 2021. The regulation stipulates that three factors should be used to calculate how much money each EU country would receive from the reserve: the factor linked to fish caught in the UK exclusive economic zone is used to allocate €656 million; the factor linked to trade is used to allocate €4.5 billion; the factor linked to maritime border regions that also covered the UK is used to allocate €274 million. GUIDE TO EU FUNDING – 2023 EDITION 33 Member States that depend significantly on fisheries have to direct a specific percentage of their national allocation to small-scale coastal fisheries and local and regional communities dependent on fishing activities. The reserve supports measures specifically introduced in relation to the withdrawal of the UK from the EU. These can include measures: to support private and public businesses, in particular SMEs, the self- employed, local communities and organisations adversely affected by the UK's withdrawal from the EU; to support the economic sectors most adversely affected by the UK's withdrawal from the EU; to support businesses, regional and local communities and organisations, including small-scale coastal fisheries dependent on fishing activities in United Kingdom waters, in waters of territories with a special status or in waters covered by fisheries agreements with coastal states where fishing opportunities for EU fleets have been reduced as a result of the UK's withdrawal from the EU; to support job creation and protection, including green jobs, short-time work schemes, reskilling and training in sectors most adversely affected by the UK's withdrawal from the EU; to ensure the functioning of border, customs, sanitary and phytosanitary, security and fisheries controls, as well as the collection of indirect taxation, including additional personnel and their training, and infrastructure; to facilitate regimes for certification and authorisation of products, to assist in meeting establishment requirements, to facilitate labelling and marking, for example for safety, health and environmental standards, as well as to assist in mutual recognition; for communication, information and awareness-raising of citizens and businesses about changes to their rights and obligations stemming from the UK's withdrawal from the EU; aimed at the reintegration of EU citizens as well as persons having the right to reside in the EU who left the UK as a result of the UK's withdrawal from the EU. 34 EPRS | European Parliamentary Research Service The reference period for the expenditure started retroactively on 1 January 2020 and is scheduled to end on 31 December 2023. The expenditure is eligible for a financial contribution from the reserve also for measures carried out before the reference period but incurred and paid by authorities in the Member States at national, regional or local level during the reference period. When designing support measures, Member States take into account the varied impact of the UK's withdrawal from the EU on different regions and local communities and focus the financial contribution from the reserve on those most adversely affected by the withdrawal. They also take into account the partnership principle, encouraging a multi-level dialogue with social partners and civil society, local and regional authorities, as well as with communities of regions and sectors that have been the most adversely affected. A European Commission webpage provides information on the provisional allocation to each EU Member State from the resources of the Brexit Adjustment Reserve. GUIDE TO EU FUNDING – 2023 EDITION 35 EUROPEAN TERRITORIAL COOPERATION (INTERREG) European Territorial Cooperation (ETC), better known as Interreg, promotes cooperation between regions and countries in and out of the EU to help their economic and social development. For the 2021-2027 period, Interreg VI funds cross-border programmes in and outside the EU, which contribute to implementing the main priorities of EU cohesion policy: a more competitive and smarter Europe; a greener, low-carbon economy transitioning towards a resilient Europe with a net zero carbon economy; a more connected Europe; a more social and inclusive Europe; and a Europe closer to citizens. Interreg has multiple strands: 1. Cross-border (Interreg A) cross-border programmes, which are implemented within the EU and at the EU's external borders; 49 programmes in the EU, making sure to turn some border obstacles into opportunities between EU Member States; 36 EPRS | European Parliamentary Research Service 10 Interreg Instrument for Pre-accession (IPA) programmes, which are operating at the EU's borders with IPA countries. They are mainly contributing to the enlargement policy of the EU; 14 Interreg NEXT programmes, implemented at the borders with EU neighbouring countries. 2. Trans-national (Interreg B) 14 transnational cooperation programmes will continue to support cooperation activities on a larger scale in Europe and beyond. Four transnational programmes – Interreg Baltic Sea Region, Interreg Danube Region, Interreg IPA Adrion and Interreg Alpine Space programme – will directly support the macro-regional strategies covering their geographical area. Some 80 % of their thematic concentration should be aligned with a macro-regional strategy. Transnational programmes linked to sea basin strategies, such as the Interreg Atlantic Area or the Interreg NEXT Black Sea Basin also apply the thematic concentration. Transnational programmes can benefit from additional funding from ERDF, IPA or NDICI. 3. Interregional (Interreg C) The interregional cooperation strand is aimed at boosting the effectiveness of cohesion policy by promoting exchange of experiences, innovative approaches and capacity-building between regions (Article 3(3) of the European Territorial Cooperation Goal (ETC) Regulation (EU) 2021/1059). Four interregional cooperation programmes will be operating over the 2021- 2027 period: the interregional co-operation programme (interreg Europe) and three networking programmes (Urbact III, Interact III and ESPON), which cover all EU Member States. They provide regional and local bodies across the EU countries with a framework for exchanging experience. The Interreg Europe cooperation programme is a policy learning programme for public authorities in 29 countries – the EU-27, Norway and Switzerland. It promotes the exchange of experience and the transfer of good practices between players at all levels of government. Encouraging the sharing of knowledge reinforces the effectiveness of cohesion policy and helps the authorities develop and deliver better policy in all other domains. GUIDE TO EU FUNDING – 2023 EDITION 37 Interact ensures the exchange of experience, information and innovation to promote best practices and make cooperation easier. It aims to achieve this through targeted events, publications and tools. URBACT helps cities to develop pragmatic solutions that are new and sustainable and that integrate economic, social and environmental urban topics. The ESPON programme aims to promote and foster a territorial dimension in development and cooperation by providing evidence, knowledge transfer and policy learning to public authorities and other policy players at all levels. 4. Outermost regions' cooperation (Interreg D) The specificities of the outermost regions are recognised through a specific strand (Strand D). Strand D helps those regions to cooperate with neighbouring countries and territories in the most efficient and simple way. Calls for proposals can be launched for combined funding under the ERDF and the Neighbourhood, Development and International Cooperation Instrument (NDICI). Strand D covers four geographical areas: Amazonia and the Caribbean; the Middle Atlantic / the Gulf of Guinea (MAC); the Indian Ocean; the Mozambique Channel. European Grouping of Territorial Cooperation The European Grouping of Territorial Cooperation (EGTC) is an EU legal instrument designed to facilitate and promote cross-border, transnational and interregional cooperation by enabling Member States, regional/local authorities, associations and any other public bodies to set up cooperation groupings with a legal personality. Recourse to an EGTC is optional. Eligible for becoming an EGTC member are: Member States; regional or local authorities; associations; any other public bodies. 38 EPRS | European Parliamentary Research Service The EGTC is unique in the sense that it enables public authorities of various Member States to team up and deliver joint services, without this requiring a prior international agreement to be signed and ratified by national parliaments. Member States must however agree to the participation of potential members in their respective countries. The law applicable to the interpretation and application of the convention is that of the Member State in which the official EGTC headquarters are located. A list of the existing EGTCs has been compiled by the European Committee of the Regions. Macro-regional strategies A 'macro-regional strategy' is an integrated framework that addresses common challenges faced by Member States and third countries located in the same geographical area, which would benefit from strengthened cooperation contributing to the achievement of economic, social and territorial cohesion. Macro-regional strategies are endorsed by the European Council and may be linked to the European structural and investment funds, among others. There is no standard definition of a macro-region. In general, it denotes an area that covers parts of different countries or regions associated with one or more common features or challenges. The idea behind the EU macro-regional strategies is to add value to interventions, whether by the EU, by national or regional authorities, by the third sector or by the private sector, in a way that significantly strengthens the functioning of the macro-region. EU macro- regional strategies do not rely on any additional funding. In this respect, one of the challenges is to find ways to better use existing resources, legislation and structures for the benefit of the whole region. There are several macro-regions in the EU covering large areas crossing several national borders. For each, a dedicated macro-regional strategy has been put in place. The EU strategy for the Baltic Sea Region (EUSBSR) was adopted in October 2009; the implementation of the EU strategy for the Danube Region (EUSDR) started in June 2011; the EU strategy for the Adriatic-Ionian Region (EUSAIR) was adopted by the European Commission in 2012. The EU strategy for the Alpine Region (EUSALP) was adopted in 2015. GUIDE TO EU FUNDING – 2023 EDITION 39 The EU strategy for the Baltic Sea Region (EUSBSR) brings together eight EU Member States situated around the Baltic Sea, representing 80 million inhabitants or nearly 16 % of the EU population. These Member States are Estonia, Denmark, Finland, Germany (Berlin; Brandenburg; Hamburg; Mecklenburg-Vorpommern; Schleswig-Holstein), Latvia, Lithuania, Poland and Sweden. The strategy is built around three objectives: 1) save the sea; 2) connect the region; and 3) increase prosperity. The EUSBSR has achieved a variety of results. As a key achievement, it has brought together stakeholders across countries, sectors and levels. New networks and projects of macro-regional relevance have been created and existing ones intensified. The strategy has also contributed to policy-shaping and development (e.g. in the fields of energy, navigation, environment and climate change), to a better implementation of existing legislation and to the further development of synergies and complementarities between existing cooperation frameworks in the region. By providing a strategic framework, it has brought legitimacy to macro-regional cooperation and increased recognition of the challenges and opportunities in the macro-region. The EU strategy for the Adriatic-Ionian Region (EUSAIR) covers 10 countries: four EU Member States (Croatia, Greece, Italy and Slovenia) and six non-EU countries (Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, San Marino and Serbia). The general objective of the EUSAIR is to promote economic and social prosperity and growth in the region by improving its attractiveness, competitiveness and connectivity. With four EU members and four non-EU countries the strategy will contribute to the further integration of the Western Balkans. The countries are aiming to create synergies and foster coordination among all territories in the Adriatic-Ionian Region in the four thematic areas/pillars: sustainable tourism, environmental quality, blue growth and connecting the region. The EU strategy for the Danube Region addresses a wide range of issues grouped in 12 priority areas. Each priority area is managed by two countries ('priority area coordinators'). These areas are: waterways mobility; rail-road-air mobility; sustainable energy; culture and tourism; water quality; environmental risks; biodiversity, landscapes, and air and soil quality; knowledge society; competitiveness of enterprises; people and skills; institutional capacity and cooperation; and security. The EU strategy for the Alpine Region covers seven countries, comprising five EU Member States (Austria, France, Germany, Italy and Slovenia) and two non-EU countries (Liechtenstein and Switzerland), and 48 regions. It has four thematic policy areas. The first is economic growth and innovation; its objectives include 40 EPRS | European Parliamentary Research Service fair access to job opportunities, building on the high competitiveness of the Alpine Region. The second thematic policy area is mobility and connectivity; its main objective is sustainable internal and external accessibility to all. The third thematic policy area is environment and energy; its objective is to promote a more inclusive environmental framework for all and renewable and reliable energy solutions for the future. Governance, including institutional capacity, is another policy area, which has as its main objective the creation of a sound macro-regional governance model for the region (in order to improve cooperation and the coordination of action). Potential beneficiaries: national and decentralised administrations; regional and local government structures and policy-making bodies; NGOs, civil society organisations, research institutes. GUIDE TO EU FUNDING – 2023 EDITION 41 AGRICULTURE, RURAL DEVELOPMENT The EU budget is and will continue to be a driver of sustainability, investment in sustainable agriculture along with climate action, environmental protection, food security and rural development. Funding for agricultural programmes comes from two funds that form part of the EU's general budget: the European Agricultural Guarantee Fund (EAGF), which primarily finances direct payments to farmers and measures to regulate agricultural markets; the European Agricultural Fund for Rural Development (EAFRD), which co-finances the rural development programmes of the Member States. EAGF and EAFRD are implemented in shared management between the Member States and the EU. This means, among other things, that the Commission does not make payments directly to the beneficiaries of aid; this task is delegated to the Member States. 42 EPRS | European Parliamentary Research Service During the first two years of the 2021-2027 multiannual financial framework (MFF – the seven-year framework regulating the EU's annual budget), the existing 2014-2020 common agricultural policy (CAP) regulations continue to apply, as set out in the transitional regulation adopted on 23 December 2020. The regulation is in place to ensure a smooth transition to the future framework of the CAP strategic plans. CAP strategic plans are due to be implemented from 1 January 2023. The strategic plans will allow for a greater degree of flexibility between the two funds and will include the ambitions of the European Green Deal, in particular the Farm to Fork strategy. Overall, 40 % of total CAP expenditure will be dedicated to climate action. The new CAP is based on a more flexible performance and a results-based approach that takes into account local conditions and needs, while increasing the EU's ambitions in terms of sustainability. It is built around 10 objectives, which are also the basis upon which EU countries design their CAP strategic plans. The objectives are: 1. to ensure a fair income for farmers; 2. to increase competitiveness; 3. to improve the position of farmers in the food chain; 4. to undertake climate change action; 5. to apply environmental care; 6. to preserve landscapes and biodiversity; 7. to support generational renewal; 8. to create and maintain vibrant rural areas; 9. to protect food and health quality; 10. to foster knowledge and innovation. EU countries will implement the new CAP with a CAP strategic plan at national level. Each plan will combine a wide range of targeted interventions addressing the specific needs of that EU country and deliver tangible results in relation to EU-level objectives, while contributing to the ambitions of the European Green Deal. GUIDE TO EU FUNDING – 2023 EDITION 43 The new CAP is fairer, greener, more animal friendly and flexible. For the first time, the new CAP will include social conditionality, meaning that CAP beneficiaries will have to respect elements of EU social and labour law to receive CAP funds. Redistribution of income support will be mandatory. Member States will redistribute at least 10 % to the benefit of smaller farms, and must describe in their strategic plan how they plan to do this. Support for young farmers will have a new mandatory minimum level of 3 % of Member States' budgets for CAP income support to young farmers (farmers up to 40 years of age). This could cover income support, investment or start-up aid for young farmers. Ecoschemes will be mandatory for Member States to offer. This new instrument will reward farmers for implementing climate and environmentally friendly practices (organic farming, agroecology, integrated pest management, etc.) as well as animal welfare improvements. Member States must allocate at least 25 % of their income support budget to ecoschemes. At least 35 % of rural development funds will be allocated to agri-environment commitments, which promote environmental, climate and animal welfare practices. As regards conditionality, the minimum requirements CAP beneficiaries have to comply with to receive support are now more ambitious. For example, at least 3 % of the arable land on any farm will be dedicated to biodiversity and non-productive elements, with a possibility for the farmer to receive support via ecoschemes in order to raise this percentage to 7 %. All wetlands and peatlands will be protected. Direct income support for farmers and market measures The main goal of the EAGF is to support viable farm income and resilience across the EU to enhance food security through the common agricultural policy. The fund aims to contribute to meeting EU environment and climate objectives via greening (until 2022) and via eco-schemes and conditionality from 2023. Achieving a higher level of environmental ambition, addressing climate change and the protection of natural resources and biodiversity are priorities in the future common agricultural policy, which will enter into force in 2023. 44 EPRS | European Parliamentary Research Service Farmers' incomes are supported by the European Union by means of direct payments (payments granted annually directly to farmers' bank accounts, as income support and to provide a safety net). Through the EAGF, EU countries must offer: a basic payment scheme for farmers; green direct payments (for sustainable farming methods); a payment for young farmers. EU countries can also use the EAGF to fund specific schemes to help small and medium sized farms, farmers who operate in areas of natural constraint, and sectors undergoing difficulties. All payments are subject to compliance with EU rules on food safety, environmental protection and animal welfare. They are crucial for keeping farmers in business, as farming incomes are significantly below the average income in the EU. The EAGF also funds measures to support and stabilise agricultural markets, including public intervention buying; private storage aid; sector-specific exceptional support measures; the EU school fruit, vegetables and milk scheme; information and promotion actions; etc. These measures operate as part of the Common Market Organisation, the framework for the market measures provided for under the CAP. A new agricultural reserve will be introduced to fund market measures in times of crises. Rural development Funding for rural development is drawn partly from the EAFRD and partly from national/regional and sometimes private sources. Since 2021, the EAFRD has been within the framework of the European structural and investment funds; after 2022, it will be fully within the framework of the CAP strategic plans. The main objective of the EAFRD is to support the transition towards a fully sustainable agricultural sector and the development of vibrant rural areas. It finances the common agricultural policy's contribution to the EU's rural development objectives: GUIDE TO EU FUNDING – 2023 EDITION 45 a. improving the competitiveness of agriculture; b. encouraging sustainable management of natural resources and climate action; c. achieving balanced socioeconomic development of rural areas and communities. The EAFRD provides assistance to farmers and inhabitants of rural areas to increase sustainability and competitiveness, including through: boosting the use of digital and technological tools; actions to improve the attractiveness of rural areas both for living and for job creation; support for innovation and diversification of on-farm activities; village revitalisation; protection of the environment and biodiversity; actions aimed at restoring, preserving and enhancing ecosystems related to agriculture and forestry, with a positive impact on biodiversity, soil, water and air. EU rural development policy is implemented on the basis of national or regional multiannual rural development programmes (RDPs) designed and managed by EU Member States or regions and approved by the European Commission. Each programme defines a specific strategy that has to meet the needs of the country/region concerned while respecting EU priorities for rural development. RDPs have been conditionally extended for 2021 and 2022. Due to this extension, many of the projects and schemes included in RDPs will continue to run until the end of 2025. From 2023 onwards, all new rural development actions will be incorporated into national CAP strategic plans. Each national plan will be built around key social, environmental and economic objectives for EU agriculture, forestry, and rural areas. Potential beneficiaries: farmers and rural stakeholders; administrative bodies; local or regional authorities and institutions; 46 EPRS | European Parliamentary Research Service institutes, educational institutions; NGOs; companies, SMEs and associations. Research and innovation opportunities in agriculture For setting up projects on innovation in agriculture, food and forestry, the brochure on funding opportunities prepared by the European Innovation Partnership for agricultural productivity and sustainability (EIP-Agri) may be of assistance. It sets out the 'how, what, where' for a wide range of options from the EAFRD to H2020 to LIFE+. Farmers may also benefit from support in the Horizon 2020 area of food security, sustainable agriculture and forestry, marine, maritime and inland water research and the bioeconomy. Funding opportunities relating to food and diet are listed on Horizon's Participant Portal. Farmers can benefit from some actions under the COSME programme, managed by the Executive Agency for Small and Medium-sized Enterprises (EASME). See the Entrepreneurship 2020 action plan for detailed information. The EAFRD also supports knowledge transfer and innovation via the EIP-Agri. Other opportunities related to farming The LEADER approach is an area-based, bottom-up method of delivering support to local communities that design and implement local development strategies themselves. It is a compulsory feature of all Member State RDPs, and at least 5 % of EAFRD national envelopes must be devoted to LEADER measures. The European Network for Rural Development (ENRD) builds upon current experience and knowledge with a view to providing help in the design and the implementation of future rural development programmes. Funding is also available under the European Social Fund for improving employment conditions in rural areas. EAGF funding may also be granted to public bodies involved in the School Milk Scheme, the School Fruit Scheme or in the promotion of farm products in the EU or in third countries. GUIDE TO EU FUNDING – 2023 EDITION 47 TRANSPORT Connecting Europe Facility for Transport The Connecting Europe Facility (CEF) Transport programme is the key EU funding instrument for the development of high performing, sustainable and interconnected trans-European transport networks (TEN-T), with a focus on the nine core network corridors. The programme co-finances projects that enhance multimodality, improve infrastructure and advance innovation and new technologies. CEF 2.0 promotes interconnected and multimodal networks to develop and modernise railway, road, inland waterway and maritime infrastructure, as well as safe and secure mobility. Priority is given to further development of the TEN-T focusing on missing links and cross-border projects with EU added value. This second edition of the programme is running from 2021 to 2027. 48 EPRS | European Parliamentary Research Service CEF 2.0 has similar objectives to CEF 1.0, but with a greater emphasis on: sustainability, decarbonisation and lower emissions; the complementarity of transport modes. The main objectives are: to contribute to the development of projects of common interest relating to efficient, interconnected and multimodal networks and infrastructure for smart, interoperable, sustainable, inclusive, accessible, safe and secure mobility; to adapt parts of the TEN-T for the dual use of the transport infrastructure with a view to improving both civilian and military mobility. Support is reserved for projects of common interest aimed at: removing bottlenecks, bridging missing links and, in particular, improving cross-border sections; ensuring sustainable and efficient transport systems in the long run, with a view to preparing for expected future transport flows, as well as enabling all modes of transport to be decarbonised; optimising the integration and interconnection of transport modes and enhancing the interoperability of transport services, while ensuring the accessibility of transport infrastructure. The proposed revision of the TEN-T Regulation contains a number of novelties, including: higher speeds for train services across the TEN-T network (160 kilometres per hour for passenger services and 100 kilometres per hour for freight); maximum waiting times at borders of 15 minutes for rail freight; guaranteed good navigation status per river basin on the inland waterways on the TEN-T; requirements for the deployment, across the TEN-T, of the charging and refuelling infrastructure needed for alternative transport fuels. This would mean sufficient charging capacity for cars, vans and trucks at 60 kilometres distance in each direction by 2025 on the core network and by 2030 for the extended core and comprehensive networks; providing safe and secure parking areas for commercial drivers, equipped with alternative fuels infrastructure. GUIDE TO EU FUNDING – 2023 EDITION 49 use of innovative technologies, such as 5G, to further advance the digitalisation of transport infrastructure, further increasing efficiency, and improving the safety, security and resilience of the network; increased resilience of the TEN-T to natural and human-made disasters via climate-proofing requirements and environmental impact assessments for new projects, and to the implications of an accident or breakdown (e.g. by enabling alternative route alignments to the main network); the requirement for 424 major cities with ports, airports and railway terminals on the TENT to have sustainable urban mobility plans by 2025, in order to align their mobility-related measures (such as the promotion of zero-emission mobility and the greening of the urban fleet) along the TEN-T with each other; more transhipment hubs and multimodal passenger terminals in cities to facilitate multimodality, in particular for the last mile of a passenger or freight journey; connect large airports to rail and, where possible, to high-speed rail; making it possible network-wide for lorries to be transported by trains. The TEN-T will be completed in three steps: 1. by 2030: completion of the core TEN-T at existing TEN-T standards such as for example the electrification of the entire rail network and the possibility to run trains that are 740 metres long; 2. by 2040: completion of the extended core network according to the new standards such as the 160 km/h minimum line speed for passenger rail. The new standard, in particular on green transport and enhanced digitalisation, will apply by this date for both the core and the extended core network. The 2040 milestone has been added to accelerate network completion in view of reaching the EU's climate ambitions by 2050; 3. by 2050: completion of the entire trans-European transport network, including the sections within the comprehensive network. For most transport projects, EU financial support does not exceed 30 % of the total eligible cost. This can be increased up to 50 % for studies, actions of greater priority and civilian-defence dual-use actions, and up to 85 % for projects where funds are transferred from the Cohesion Fund. As regards works undertaken in the outermost regions, a specific maximum co-funding rate of 70 % applies. 50 EPRS | European Parliamentary Research Service To support synergies between the transport, energy and digital sectors, actions to achieve objectives in at least two of these sectors can receive a higher co- funding rate in compliance with a work programme addressing at least two of these sectors. The programme is implemented through direct management by the European Climate, Infrastructure and Environment Executive Agency (CINEA), through a mix of grants, procurements and financial instruments. CINEA is the successor organisation of the Innovation and Networks Executive Agency (INEA) since 2021. Potential beneficiaries: representatives of the transport industry; small and medium-sized enterprises; research organisations; public and private entities established in a Member State or in a non-EU country associated with the programme, or created under EU law; international organisations. Information on calls for proposals for projects in the area of transport is provided on the CINEA website. GUIDE TO EU FUNDING – 2023 EDITION 51 TOURISM The EU has a complementary role in tourism policy, supporting and coordinating the actions taken by the Member States. There is no dedicated EU budget for tourism for the 2021-2027 period. Financial support to tourism could be provided through multiple EU programmes. Tourism across the EU has suffered an unprecedented shock as a result of the coronavirus pandemic, sharply reducing tourism flows and thus the revenues of tourism-related businesses. The European Commission has initiated measures and proposals to mitigate the impact of this crisis on the EU's tourism sector. Beyond this immediate shock, the tourism sector is facing other, more long-term challenges related to its green and digital transformation, competitiveness, sustainability and resilience. Several EU initiatives and programmes can provide funding for investment in tourism. For the 2021-2027 period, there are 13 programmes that could be used to finance actions in the tourism sector, under direct or shared management, 52 EPRS | European Parliamentary Research Service including those created to mitigate the impact of the pandemic. The 2021-2027 European Regional Development (ERDF) legislative framework includes a specific policy objective related to sustainable tourism. Besides this specific objective, sustainable tourism can be supported through any other policy objective as long as the investments contribute to achieving the objective and comply with applicable enabling conditions or requirements. The public authorities in the Member States select projects to be financed through the operational programmes (and follow up on their implementation). The Recovery and Resilience Facility (RRF) provides Member States with the possibility to finance investments and reforms, including in the tourism sector, as part of their national recovery and resilience plans (NRRPs). The available funding from the RRF must be committed up to the end of 2023. Below is an overview of the EU funding sources for tourism in the 2021-2027 period and the types of actions supported based on Annex I of the ECA Special Report 27/2021: EU support to tourism. The Commission has also published an online guide on EU funding for tourism. The page contains links to the relevant EU programmes' websites that publish the latest developments on annual work programmes or calls for proposals and technical details per programme. It also points to examples of good projects co-funded by EU funds in the past. Recovery and Resilience Facility Funding as defined in the national recovery and resilience plans. European Regional Development Fund and Cohesion Fund (ERDF/CF) ERDF: investments to strengthen the environmental, socioeconomic sustainability and resilience of tourism in the long term, transforming the sector by learning from innovative solutions; CF: tourism-related investments in the environment and in the trans-European transport networks, in particul

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