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Integrated territorial development
1. The ERDF may support integrated territorial development within programmes under both goals referred to in Article 5(2) of Regulation (EU) 2021/1060 in accordance with Chapter II of Title III of that Regulation. 2. Member States shall implement integrated territorial development, supported by the ERDF, exclusively through the forms referred to in Article 28 of Regulation (EU) 2021/1060.
Support for disadvantaged areas
In accordance with Article 174 TFEU, the ERDF shall pay special attention to addressing the challenges of disadvantaged regions and areas, in particular rural areas and areas which suffer from severe and permanent natural or demographic handicaps. Member States shall, where appropriate, set out an integrated approach to addressing demographic challenges or specific needs of such regions and areas in their partnership agreements in accordance with point (i) of the first subparagraph of Article 11 of Regulation (EU) 2021/1060. Such an integrated approach may include a commitment on dedicated funding for that purpose.
Sustainable urban development
1. To address economic, environmental, climate, demographic and social challenges, the ERDF shall support integrated territorial development based on territorial or community-led local development strategies in accordance with Article 29 or 32 of Regulation (EU) 2021/1060, respectively, that are focused on urban areas, including functional urban areas (‘sustainable urban development’) within programmes under both goals referred to in Article 5(2) of that Regulation. Special attention shall be given to tackling environmental and climate challenges, in particular the transition towards a climate-neutral economy by 2050, to harnessing the potential of digital technologies for innovation purposes, and to support the development of functional urban areas. In this context, sustainable urban development resources programmed under priorities corresponding to PO 1 and 2 shall count towards the thematic concentration requirements under Article 4. 2. At least 8 % of the ERDF resources at national level under the Investment for jobs and growth goal, other than for technical assistance, shall be allocated to sustainable urban development in one or more of the forms referred to in Article 28 of Regulation (EU) 2021/1060. The relevant territorial authorities or bodies shall select or shall be involved in the selection of operations in accordance with Article 29(3) and point (d) of Article 32(3) of Regulation (EU) 2021/1060. The programmes concerned shall set out the planned amounts for that purpose under point (d)(viii) of Article 22(3) of Regulation (EU) 2021/1060. 3. The percentage allocated to sustainable urban development under paragraph 2 of this Article shall be complied with throughout the entire programming period when ERDF allocations are transferred between priorities of a programme or between programmes, including at the mid-term review in accordance with Article 18 of Regulation (EU) 2021/1060. 4. Where the ERDF allocation is reduced following a decommitment under Article 105 of Regulation (EU) 2021/1060, or due to financial corrections by the Commission in accordance with Article 104 of that Regulation, compliance with paragraph 2 of this Article shall not be re-assessed.
European Urban Initiative
1. The ERDF shall support the European Urban Initiative, implemented by the Commission in direct and indirect management. This initiative shall cover all urban areas, including functional urban areas, and shall support the Urban Agenda for the EU, including support for the participation of local authorities in the thematic partnerships developed under the Urban Agenda for the EU. 2. The European Urban Initiative shall, with regard to sustainable urban development, consist of the following two strands: (a) support of innovative actions; (b) support of capacity and knowledge building, territorial impact assessments, policy development and communication. Upon the request of one or more Member States, the European Urban Initiative may also support inter-governmental cooperation on urban matters. Particular attention should be given to cooperation aimed at capacity building at local level to achieve UN Sustainable Development Goals. The Commission shall submit a report every two years to the European Parliament and to the Council on developments in connection with the European Urban Initiative. 3. The governance model of the European Urban Initiative shall include the involvement of Member States, regional and local authorities and cities and shall ensure appropriate coordination and complementarities with the dedicated programme under point (b) of Article 3(3) of Regulation (EU) 2021/1059 dealing with sustainable urban development.
Interregional Innovation Investments
1. The ERDF shall support the Interregional Innovation Investments Instrument. 2. The Interregional Innovation Investments Instrument shall support the commercialisation and scaling up of interregional innovation projects having the potential to encourage the development of European value chains. 3. The Interregional Innovation Investments Instrument shall consist of the following two strands, supporting equally: (a) financial and advisory support for investments in interregional innovation projects in shared smart specialisation areas; (b) financial and advisory support, and capacity building for the development of value chains in less developed regions. 4. Up to 2 % of the resources may be dedicated to learning and evaluation activities, in order to capitalise on and disseminate the outcome of projects supported under the two strands. 5. The Commission shall implement those investments under direct or indirect management. 6. The Commission shall be supported in its work by a group of experts. The expert group shall be composed of representatives from Member States, regional authorities and cities, and representatives of business, research and civil society organisations. The composition of the expert group shall aim to ensure gender balance. The expert group shall support the Commission in defining a long-term work programme and in preparing calls for proposals. 7. When implementing this instrument, the Commission shall ensure coordination and synergy with other Union funding programmes and instruments and in particular with strand ‘Interreg C’ as defined in point 3 of Article 3 of Regulation (EU) 2021/1059. 8. The Interregional Innovation Investments Instrument shall cover the entire territory of the Union. Third countries can participate in this instrument, in accordance with the arrangements laid down in Articles 16 and 23 of Regulation (EU) 2021/695 of the European Parliament and of the Council ( 25 ) (the ‘Horizon Europe Regulation’).
Outermost regions
1. Article 4 shall not apply to the specific additional allocation for the outermost regions. This specific additional allocation for the outermost regions shall be used to offset the additional costs incurred in these regions as a result of one or several of the permanent restraints to their development referred to in Article 349 TFEU. 2. The allocation referred to in paragraph 1 of this Article shall support: (a) the activities within the scope as set out in Article 5 of this Regulation; (b) by way of derogation from Article 5 of this Regulation, measures covering operating costs with a view to offsetting the additional costs incurred in the outermost regions as a result of one or several of the permanent restraints to their development referred to in Article 349 TFEU. The allocation referred to in paragraph 1 of this Article may also support expenditure covering compensation granted for the provision of public service obligations and contracts in the outermost regions. 3. The allocation, referred to in paragraph 1 of this Article, shall not support: (a) operations involving products listed in Annex I to the TFEU; (b) aid for the transport of persons authorised under point (a) of Article 107(2) TFEU; (c) tax exemptions and exemption of social charges; (d) public services obligations not discharged by undertakings and where the State acts by exercising public power. 4. By way of derogation from point (c) of Article 5(1), the ERDF may support productive investments in enterprises in the outermost regions, irrespective of the size of those enterprises.
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