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Subject matter
This Regulation establishes a Programme for the Environment and Climate Action (LIFE) (the 'LIFE Programme') for the period of the multiannual financial framework 2021 to 2027. The duration of the LIFE Programme is aligned with the duration of the multiannual financial framework. This Regulation also lays down the objectives of the LIFE Programme, its budget for the period 2021-2027, the forms of Union funding and the rules for providing such funding.
Definitions
For the purposes of this Regulation, the following definitions apply: (1) 'strategic nature projects' means projects that support the achievement of Union nature and biodiversity objectives by implementing coherent programmes of action in Member States in order to mainstream those objectives and priorities into other policies and financing instruments, including through coordinated implementation of the prioritized action frameworks adopted pursuant to Directive 92/43/EEC; (2) 'strategic integrated projects' means projects that implement, on a regional, multi-regional, national or transnational scale, environmental or climate strategies or action plans developed by Member States' authorities and required by specific environmental, climate or relevant energy legislation or policy of the Union, while ensuring that stakeholders are involved and promoting coordination with and mobilisation of at least one other Union, national or private funding source; (3) 'technical assistance projects' means projects that support the development of capacity for participation in standard action projects, the preparation of strategic nature projects and strategic integrated projects, the preparation for accessing other Union financial instruments, or other measures necessary for preparing the upscaling or replication of results from other projects funded by the LIFE Programme, its predecessor programmes or other Union programmes, with a view to pursuing the LIFE Programme objectives set out in Article 3; such projects can also include capacity building related to the activities of Member States' authorities for effective participation in the LIFE Programme; (4) 'standard action projects' means projects, other than strategic integrated projects, strategic nature projects or technical assistance projects, that pursue the specific objectives of the LIFE Programme; (5) 'blending operations' means actions supported by the Union budget, including within blending facilities pursuant to point (6) of Article 2 of the Financial Regulation, that combine non-repayable forms of support, financial instruments, or both, from the Union budget with repayable forms of support from development or other public finance institutions, as well as from commercial finance institutions and investors; (6) 'legal entity' means any natural person or any legal person created and recognised as such under national law, Union law or international law, which has legal personality and the capacity to act in its own name, exercise rights and be subject to obligations, or any entity without a legal personality in accordance with point (c) of Article 197(2) of the Financial Regulation.
Objectives
1. The general objective of the LIFE Programme shall be to contribute to the shift towards a sustainable, circular, energy-efficient, renewable energy-based, climate-neutral and - resilient economy, in order to protect, restore and improve the quality of the environment, including the air, water and soil, and to halt and reverse biodiversity loss and to tackle the degradation of ecosystems, including by supporting the implementation and management of the Natura 2000 network, thereby contributing to sustainable development. The LIFE Programme shall also support the implementation of general action programmes adopted in accordance with Article 192(3) TFEU. 2. The LIFE Programme shall have the following specific objectives: (a) to develop, demonstrate and promote innovative techniques, methods and approaches for reaching the objectives of Union legislation and policy on the environment, including nature and biodiversity, and on climate action, including the transition to renewable energy and increased energy efficiency, and to contribute to the knowledge base and to the application of best practice, in particular in relation to nature and biodiversity, including through the support of the Natura 2000 network; (b) to support the development, implementation, monitoring and enforcement of relevant Union legislation and policy on the environment, including nature and biodiversity, and on climate action and the transition to renewable energy or increased energy efficiency, including by improving governance at all levels, in particular by enhancing the capacities of public and private actors and the involvement of civil society; (c) to act as a catalyst for the large-scale deployment of successful technical and policy-related solutions for implementing relevant Union legislation and policy on the environment, including nature and biodiversity, and on climate action and the transition to renewable energy or increased energy efficiency, by replicating results, by integrating related objectives into other policies and into public and private sector practices, by mobilising investment and by improving access to finance.
Structure
The LIFE Programme shall be structured as follows: (1) the field 'Environment', which includes: (a) the subprogramme 'Nature and Biodiversity'; (b) the subprogramme 'Circular Economy and Quality of Life'; (2) the field 'Climate Action', which includes: (a) the subprogramme 'Climate Change Mitigation and Adaptation'; (b) the subprogramme 'Clean Energy Transition'.
Budget
1. The financial envelope for the implementation of the LIFE Programme for the period from 1 January 2021 to 31 December 2027 shall be EUR 5 432 000 000 in current prices. 2. The indicative distribution of the amount referred to in paragraph 1 shall be: (a) EUR 3 488 000 000 for the field 'Environment', of which (i) EUR 2 143 000 000 for the subprogramme 'Nature and Biodiversity', and (ii) EUR 1 345 000 000 for the subprogramme 'Circular Economy and Quality of Life'; (b) EUR 1 944 000 000 for the field 'Climate Action', of which (i) EUR 947 000 000 for the subprogramme 'Climate Change Mitigation and Adaptation', and (ii) EUR 997 000 000 for the subprogramme 'Clean Energy Transition'. 3. The amounts referred to in paragraphs 1 and 2 shall be without prejudice to provisions on flexibility set out in Regulation (EU, Euratom) 2020/2093 and in the Financial Regulation. 4. Notwithstanding paragraph 2, at least 60 % of the budgetary resources allocated to projects supported by way of action grants under the field 'Environment' referred to in point (a) of paragraph 2 shall be dedicated to grants for projects supporting the subprogramme 'Nature and Biodiversity' referred to in point (a)(i) of paragraph 2. 5. The LIFE Programme may finance technical and administrative assistance activities by the Commission for its implementation, such as preparatory, monitoring, control, audit and evaluation activities, including on corporate information technology systems, and network activities supporting the LIFE Programme's National Contact Points, including training, mutual learning activities and events to share experience. 6. The LIFE Programme may finance activities implemented by the Commission in support of the preparation, implementation and mainstreaming of environmental, climate or relevant energy legislation and policies of the Union for the purpose of achieving the objectives set out in Article 3. Such activities may include: (a) information and communication, including awareness-raising campaigns, and corporate communication regarding the political priorities of the Union, as well as regarding the implementation and transposition status of environmental, climate or relevant energy legislation of the Union; (b) studies, surveys, modelling and scenario building; (c) preparation, implementation, monitoring, checking and evaluation of legislation, policies and programmes, as well as assessment and analysis of projects not funded by the LIFE Programme, if they serve the objectives set out in Article 3; (d) workshops, conferences and meetings; (e) networking, and best-practice platforms; (f) other activities, such as awarding prizes.
Third countries associated to the LIFE Programme
1. The LIFE Programme shall be open to the participation of the following third countries: (a) members of the European Free Trade Association which are members of the European Economic Area (EEA), in accordance with the conditions laid down in the Agreement on the European Economic Area; (b) acceding countries, candidate countries and potential candidates, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective framework agreements and Association Council decisions or in similar agreements and in accordance with the specific conditions laid down in agreements between the Union and those countries; (c) European Neighbourhood Policy countries, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective framework agreements and Association Council decisions or in similar agreements and in accordance with the specific conditions laid down in agreements between the Union and those countries; (d) other third countries, in accordance with the conditions laid down in a specific agreement covering the participation of the third country in any Union programme, provided that the agreement: (i) ensures a fair balance as regards the contributions and benefits of the third country participating in the Union programmes; (ii) lays down the conditions of participation in the programmes, including the calculation of financial contributions to individual programmes, and their administrative costs; (iii) does not confer on the third country a decision-making power in respect of the Union programme; (iv) guarantees the rights of the Union to ensure sound financial management and to protect its financial interests. The contributions referred to in point (d)(ii) of the first subparagraph shall constitute assigned revenues in accordance with Article 21(5) of the Financial Regulation. 2. Where a third country participates in the LIFE Programme by means of a decision adopted pursuant to an international agreement or on the basis of any other legal instrument, the third country shall grant the necessary rights and access required for the authorising officer responsible, OLAF and the Court of Auditors to comprehensively exercise their respective competences. In the case of OLAF, such rights shall include the right to carry out investigations, including on-the-spot checks and inspections, provided for in Regulation (EU, Euratom) No 883/2013.
International cooperation
In the course of implementing the LIFE Programme, cooperation with relevant international organisations, and with their institutions and bodies, shall be possible where needed for the purpose of achieving the objectives set out in Article 3.
Synergies with other Union programmes
The Commission shall facilitate the consistent implementation of the LIFE Programme. The Commission and Member States shall facilitate coordination and the attainment of coherence with the European Regional Development Fund, the European Social Fund+ established under a Regulation of the European Parliament and of the Council on the European Social Fund Plus (ESF+) ('European Social Fund+'), the Cohesion Fund, the European Agricultural Fund for Rural Development, and the European Maritime, Fisheries and Aquaculture Fund, Horizon Europe, the Connecting Europe Facility established under Regulation (EU) No 1316/2013 of the European Parliament and of the Council ( 37 ) and the InvestEU Programme established under Regulation (EU) 2021/523, in order to create synergies, particularly as regards strategic nature projects and strategic integrated projects, and to support the uptake and replication of solutions developed under the LIFE Programme. The Commission and Member States shall pursue complementarity at all levels.
Implementation and forms of Union funding
1. The Commission shall implement the LIFE Programme in direct management, or in indirect management with bodies referred to in point (c) of Article 62(1) of the Financial Regulation. 2. The LIFE Programme may provide funding in any of the forms laid down in the Financial Regulation, in particular grants, prizes and procurement. It may also provide financing in the form of financial instruments within blending operations. 3. At least 85 % of the budget for the LIFE Programme shall be allocated: (a) to grants as referred to in Article 11(2) and (6); (b) to projects financed through other forms of funding to the extent specified in the multiannual work programme referred to in Article 18; or (c) where appropriate and to the extent specified in the multiannual work programme referred to in Article 18, to financing in the form of financial instruments within blending operations as referred to in paragraph 2 of this Article. The Commission shall ensure that the projects financed by other forms of funding are fully in line with the objectives set out in Article 3. The maximum amount allocated to grants as referred to in Article 11(4) shall be EUR 15 million. 4. The maximum co-financing rates for the eligible actions referred to in points (a) to (d) of Article 11(2) of this Regulation shall be up to 60 % of eligible costs and up to 75 % in the case of projects funded under the subprogramme 'Nature and Biodiversity', in particular those that concern priority habitats or species, as part of the implementation of Directive 92/43/EEC, or that concern the species of birds considered as a priority for funding by the Committee for Adaptation to Technical and Scientific Progress set up pursuant to Article 16 of Directive 2009/147/EC when necessary to achieve the conservation objective. For the actions referred to in Article 11(6) of this Regulation, the maximum co-financing rate shall be 70 % of the eligible costs. Without prejudice to the relevant and pre-determined maximum co-financing rates, specific rates shall be further specified in the multiannual work programme referred to in Article 18 of this Regulation. The specific rates may be adapted in accordance with the requirements of each subprogramme, project type or type of grant. For the projects referred to in Article 11(4), the maximum co-financing rates shall not exceed 95 % of eligible costs during the period of the first multiannual work programme; for the second multiannual work programme and subject to confirmation in that work programme, the co-financing rate shall be 75 % of eligible costs. 5. Quality shall be the criterion governing the project evaluation and award process in the LIFE Programme. The Commission shall pursue effective, quality-based geographical coverage across the Union, including by supporting Member States to increase the quality of the projects through capacity building.
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